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HomeMy WebLinkAbout11-20-2008 Housing & Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION LOBBY CONFERENCE ROOM, CITY HALL THURSDAY, NOVEMBER 20, 2008 6:30 P.M. 1. Call Meeting to Order 2. Approval of the October 7, 2008 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff/Commission Comment 5. New Business • Review and Discuss the Iowa City Housing Authority's Request to Amend the Downpayment Assistance Program • Update on the Iowa City Housing Authority's Grant Application to the State for Downpayment Assistance Funds • Update on the Iowa City Housing Authority 5-Year Annual Plan • Discuss and Review FY10 CDBG/HOME Funding Process Timeline • Review and Approve FY10 CDBG/HOME Application Materials • Discussion of a HCDC Sponsored Event Focused on Affordable Housing 6. Old Business • Annual Review of the 2006-2010 Consolidated Plan (a.k.a. CITY STEPS) — Discussion and Consideration of Proposed Amendments 7. Monitoring Reports • Hawkeye Area Community Action Program — Housing (Douglas) • Arc of Southeast Iowa — Operations & Facility Rehab. (Crane) • Isis Investments LLC — Rental Housing (Shaw) • FY08 Goodwill Industries — Facility Rehabilitation ( Shaw) 8. Adjournment MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 — 6:30 PM PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM 2°d FLOOR, CITY HALL Members Present: Steve Crane, Marcy DeFrance, Andy Douglas, Charlie Drum, Holly Jane Hart, Michael McKay, Rebecca McMurray, Brian Richman, Michael Shaw Members Excused: Andy Douglas Staff Present: Tracy Hightshoe, Steve Long Others Present: Maryann Dennis, Charlie Eastham RECOMMENDATIONS TO COUNCIL (become effective only after separate Council action): The Commission voted 7-0 (Douglas and Shaw not present) to recommend the request by The Housing Fellowship to amend the financial terms of their FY08 & FY09 City HOME fund allocation of $545,722. HCDC recommended the terms as requested: a 20-year deferred loan at 0% interest with a balloon payment at year 20. The Housing Fellowship will develop 22 units of affordable rental housing and will apply for Low Income Housing Tax Credits to secure a major portion of financing for this project. CALL TO ORDER: The meeting was called to order by Chairperson Brian Richman at 6:36 p.m. APPROVAL OF THE AUGUST 18, 2008 MINUTES: After some discussion, Hart motioned to approve the minutes with a correction to a misspelled name; Drum seconded. The motion carried 7-0 (McMurray and Douglas not present). PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: None. STAFF/COMMISSION COMMENT: Long stated that as of October 7`h, applications are available for Jumpstart, a state -funded flood relief program. A Flood Resource Center has been opened in the Lobby Conference Room of City Hall, and is operational from 8 a.m. to 6 p.m. Monday through Friday, and Saturday from 10 a.m. to 2 p.m. Long said that a steady stream of people came to the Flood Resource Center all day on its first day of operation. He said that unfortunately there is not enough money available right now to fill all the gaps and needs that exist for flood victims. Long said the current allocation of funds is the first wave of money, and that the City expects that there will be another two or three waves of funding. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 2 of 13 It was decided to move forward with The Housing Fellowship's Request and return to Commission/Staff Comment afterward so that Michael Shaw, who had to leave at 7 p.m., could be present for the discussions. NEW BUSINESS: • Review The Housing Fellowship's Request to Amend the Financial Terms for their FY08 &FY09 Affordable Rental Housing Project Richman said that The Housing Fellowship was allocated $545,772 in HOME funds in fiscal years 2008 and 2009. The Housing Fellowship is now requesting an amendment to the terms of the loan. Richman invited Maryann Dennis and/or Charlie Eastham to present the request in more detail. Dennis said that the original term for the loan(s) required that the loan be amortized and repaid during the first 30 years of the project at 0% interest. Dennis said that as the projects are put together, the numbers are constantly changing. The Housing Fellowship is continuously trying to fit the numbers together in different ways in order to make the project work properly in terms of cash flow and meeting all of the underwriting criteria required by the different financing sources. If the City is repaid during the first 15-20 years of the project as is required by the current loan terms, Dennis said, then there is not enough cash flow to meet the underwriting criteria. Dennis said The Housing Fellowship is requesting a deferred payment. At the end of 20 years, when the General Obligation Bond financing passed by the City Council on October 6th is repaid, The Housing Fellowship would be able to retire that debt and be able to refinance to pay the City back a balloon payment at the end. Dennis said that the loan had always been approved as a 0% interest loan. The other significant change that comes into play is that the Iowa Finance Authority (IFA), who administers the Low -Income Housing Tax -Credit program, has changed the per -unit cost cap and the formula used to determine it. Dennis said that it had previously been the case that the cost of the land could be excluded from the per unit cost calculation. This, Dennis said, is no longer the case. As a result the plan now is for The Housing Fellowship to retain possession of the land and to lease it to the limited partnership, as a way of remaining under the cost cap. Essentially, Dennis said, the City HOME funds for the project are now coming to The Housing Fellowship, a private non-profit. Because of this, the new terms may actually better fit with the City's investment policy than the previous terms. Eastham stated that this project has been developed under standards set by the City Council for permissible and preferable affordable rental housing in Iowa City. Eastham said that the preferences outlined by the City Council include scattered -site, single-family detached or townhome units such as those being created by this project. In looking to build, The Housing Fellowship reviewed all available sites and found mostly single-family detached sites to be available. Eastham said this obviously increases the cost to the project. Eastham said that the request is being made to keep the project under cost cap requirements set by IFA, to comply with the City Council's preferences for newly constructed affordable rental housing, and to ensure that rents are kept as low as possible. Eastham said The Housing Fellowship is finding itself having to borrow additional funds for the project overall, as well as having to ask for deferred payment on some of the loans from different funding sources in order to meet those goals. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 3 of 13 Dennis said that the rents are set quite low, and that The Housing Fellowship has always believed that it makes sense to put projects together that allow for rents that are affordable even to those who are not receiving rental assistance. Dennis said that it is their hope that just as the City is investing a considerable amount of federal funding into the project, the State will also choose to invest a large amount of federal funding. Dennis said that the rents could be raised, but then that would mean the families living in the units would require a considerable amount of rental assistance to afford them. Hightshoe asked what the utility allowance for the units would be based on the Iowa City Housing Authority's (ICHA) standards. Dennis said that it was $158 for a three -bedroom unit. Hightshoe told the Commission that when she was reviewing the project her initial preference was for a payback at 0% over thirty years. As she examined the request, however, she noted that the project had to substantially change: the developer fee went down almost $200,000 from its original projection. Melrose Ridge had been the example foremost in her mind, however, it was structured quite a bit differently than this project in that it was not scattered -site, there was no cost for land (the County leased it to The Housing Fellowship for $1), and Melrose Ridge did not have to install major infrastructure (this will be the first project by THE where they will install the road, water, sewer, etc. for a new subdivision). Hightshoe said that given these differences, she recommended to allow flexibility as unexpected costs will arise. Hightshoe said that in speaking with the Planning Department in Sioux City, she learned that their policy for tax -credit projects is a 0% loan that is deferred for 10 years. Hightshoe said she became a lot more comfortable with the project and the request for deferred payment once she took all of these factors into consideration. Richman asked how rents of $775 and $550 compare to what The Housing Fellowship would be allowed to charge by the Department of Housing and Urban Development (HUD). Dennis said that there are a number of different rents that come into play for this project. Because HOME funds are being used for the project, the maximum HOME rent for a three -bedroom unit would be $943, from which the $158 utility allowance must be subtracted. Dennis said that what happens is one division of HUD administers Section 8 rental assistance and a different one administers the HOME funds. As a result, often times the HOME rents take some time to catch up to the Fair Market Rents (FMR) set for rental assistance. Dennis said that The Housing Fellowship cannot rely on a presumption that the HOME rents will be increased to match the FMRs. Eastham said that IFA will require the maximum rent for a tax -credit three -bedroom unit in the state of Iowa to be set below $943 if the project is receiving HOME funds. Dennis noted that the allowable IFA tax -credit rent with no HOME funds associated with it is actually higher than that. Investing HOME funds requires following HOME rules. Richman said that his understanding is that this request states that the City will be repaid upon the sale/refinancing of the project. Dennis explained that with the low-income housing tax -credit, huge wealthy companies invest and it is these investors who receive the tax -credit. When the tax benefit to the investor expires after ten years, there is no longer any motivation for these large companies to own low-income housing. The Internal Revenue Service (IRS) has a law which grants the right of first refusal to a qualified non-profit at the end of a fifteen year term of affordability. At that time, the non-profit can purchase the project for $1 plus all of the debt that is due. Dennis said it has always been The Housing Fellowship's plan to utilize that right of first refusal and then become the owner of the property. Eastham said The Housing Fellowship would become responsible for the 20- year balloon payment, which would actually reflect a rather low amount of debt at that time. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 4 of 13 Richman asked what other possibilities there were for after year 20, beyond The Housing Fellowship purchasing the property. Long stated that the affordability requirement for the property would remain in place regardless, as the term of the affordability requirement is 30 years. Dennis stated that it was not impossible that the City of Iowa City could forgive the debt at that time, as that occurs from time to time. Dennis stated that the City of Iowa City takes no risk with these funds because they are HUD funds, and are not local tax dollars. Richman pointed out that the City has a limited amount of dollars to invest in affordable housing in the community, and so there was risk in that sense. Dennis conceded that point, and advised the Commission that The Housing Fellowship was making the same request for the State's HOME funding. Eastham noted that a 30-year deferred payment was not an uncommon term for the State. Shaw stated that as far as he could tell there is no difference between the request made by The Housing Fellowship and the recommendations made by staff. He asked if he was correct in this understanding. Hightshoe replied that staff concurred with the recommendation. Richman stated that he had thought The Housing Fellowship was requesting a 30-year deferred payment and that staff was recommending a 20-year period. Dennis apologized, saying that the confusion was the result of an error on her part as several different drafts of the same plan had been discussed, but that the term being requested was 20 years. Richman summarized his understanding of the proposal: in year 20, either The Housing Fellowship would buy the project and refinance any existing debt (presumably the City and State HOME funds) or the City Council could choose to forgive the loan. Eastham clarified that the sale of the project would begin in year 16 of the project. Dennis added that the term of affordability would still be set at 30 years regardless of who owns the property. Long stated that the continued affordability of the property is one of the most important part from the City's point of view. Richman asked a question regarding the sources and uses. He noted that $830,000 of State HOME funds are listed in the proposal, but $0 City HOME funds. Hightshoe explained that the City HOME funds went toward land acquisition, and that because The Housing Fellowship will be leasing the land to the investors, the land will be retained by The Housing Fellowship. Hightshoe noted that the price per credit has gone down from $.81 to $32, and asked if that would continue. Dennis said that The Housing Fellowship does not know because they do not price the credits, the syndicator does. Dennis said that one thing to keep in mind is that the equity from the tax -credits will not come to the project until the homes are built and leased to qualified households. The equity therefore should come into account in 2010, by which time it is hoped that the price will be $.80. Eastham stated that the final price for the credits will not be known until that time. Eastham added that IFA is well aware that national tax -credit prices have been decreasing, and noted that they have set aside some of last year's tax -credits to pay for this year's projects. Eastham said it is very difficult to predict what will happen with tax -credit prices. Dennis said that she and Eastham believe not only that they have a very good project, but that they have a very good chance to succeed at what is acknowledged to be a very risky endeavor, especially for a non-profit. Dennis said that they are working with a very good consultant who can answer any questions Dennis is unable to. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 5of13 Dennis noted that IFA has implemented a disaster relief set -aside for the tax -credits for seven counties, one of which is Johnson. Dennis said that as far as The Housing Fellowship knows, it is the only project in Johnson County applying to the program. This gives them a pretty good chance. Long pointed out that The Housing Fellowship did have 16 units in Coralville destroyed in the flooding. Shaw asked if any of the Commissioners had concerns about The Housing Fellowship handling the banking and construction components of the project, which were some new areas for the agency. Dennis asked if he had a concern. Shaw clarified that he did not have a concern, but wondered if any of the Commissioners did as he had not heard anything from them on the subject. Long said that he would like to point out that this is The Housing Fellowship's third tax -credit project and they have always been very well done. Long assured Shaw and the other Commissioners that if staff had concerns or if there had been past issues, staff would certainly let the Commissioners know. Dennis stated that the development team on all of the tax -credit projects had been very good, and very important to their success. She noted that The Housing Fellowship is working with MMS Consultants, John Shaw Architect, Selzer-Werderitsch Construction, a consultant from Omaha, great tax attorneys, Michael Hugh and Jeremy Hagen from Bradley & Riley, and the syndicator. Shaw reiterated that he was not hearing any concerns, but had wanted to check in with the Commission members. Richman said that he saw that the underwriting criteria required a debt coverage ratio of 1.15 to 1.40 and notes that The Housing Fellowship is very close to the upper limit at 1.40. He asked how it would affect the Fellowship's tax -credit application if there was some repayment requirement to the City that took the coverage ratio closer to 1.15. Eastham said that adding debt service would likely negatively impact the application. Dennis said that the other thing to keep in mind is that the format for the pro forma is required by IFA. Richman asked if the City's obligation were structured so that a portion of surplus cash flow would go toward debt repayment (and if there was no surplus cash flow there would be no repayment made) how would that be factored in. Eastham said it would depend on how it was structured; if it was structured as a liability then that would be debt coverage and would affect the ratios. Dennis and Eastham said that what they have learned is that the "cleaner" these projects are kept in terms of their liabilities, the better chance for syndicator approval; the more complicated they are made, the greater the chance for failure. Long said that if this was strictly a HOME or CDBG funded project, the Commission would have a lot more flexibility. Eastham said the Fellowship has done escalating debt service with CDBG funds before, and it is hard to figure out what the conditions are going to be five and ten years down the road. He said they have at times wound up with an obligation they could not meet. Richman pointed out that under what he was proposing, this would not happen because if there is no excess cash flow there would be no payment obligation. McKay said that one of the things he picked up at a recently attended conference was that the market for tax -credits is so bad at present that investors and syndicators are going over the proposals with a fine tooth comb. From what he learned at the conference, it will become increasingly difficult to place projects in the next five years. McKay said his understanding of what Dennis and Eastham have said is that if they do not keep the project clean they will not be able to place it. Eastham said he agreed with this assessment. Crane said that 1.15 debt service is pretty low and that this could change to a 1.25 in the near future, to be realistic. Dennis said it is not necessarily a bad thing that the days of the 1.05 are gone. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 6 of 13 Richman asked staff if they were comfortable with the precedent this sets and if the City would be comfortable with this structure for future projects. Long said that there have been similar cases, but that it is always best to look at things on a case by case basis. He said that there is an arrangement with a transitional housing facility in which there is a 99-year term and payments are sometimes made by lowering rents to the tenants and taking that off the debt; in that case the view is that providing low -rent transitional housing better serves the City than that particular cash flow would have. Long said that the City has worked with The Housing Fellowship very successfully on a number of occasions and that he, Hightshoe, Dennis, Eastham, the Finance Director, the City Manager and others have sat down and worked on this project many times over the last year to get it to a place where everyone is comfortable with the terms. Long said the City has $830,000 invested in this project when bonds are included, and they want to see it succeed. Dennis said that the waiting list for ICHA rental assistance is two years long, and that there are families living in Iowa City that are on that waiting list and are perfectly capable of appropriately taking care of a rental house if they could afford the rent. Dennis said the two-year wait is causing some of these families to live doubled -up or in very small apartments with their children. Keeping the rents low is one of The Housing Fellowship's biggest objectives, Dennis said. Richman said he applauded those efforts. His objective is to determine if it is possible both for the rents to remain low and for the City to be repaid some money in the interim. Richman said it sounded like the answer he was hearing is that there probably is not a way for both of those things to happen, or if there is, there is a risk to the project as a whole. Drum said he would rather see the City "repaid" in the broader sense by having low -rents for the units then to have the City repaid with payments on the loan prior to the 20-year deferment period. Eastham advised Richman that having a balloon payment in the future such as The Housing Fellowship is requesting will allow the rents to remain low until the refinancing period begins. Hightshoe said that with low-income housing tax -credits the reserves and replacement reserves have to be built into the project so that the units are properly maintained throughout. This lessens the concern that once the affordability period expires, you will have a project that requires substantial rehabilitation for which there is no funding. Long said this basically means that the project should not be coming back to the City in 20 or 30 years asking for more money for rehabilitation purposes. Dennis noted that even though The Housing Fellowship is the general managing partner on the project, they cannot take funds out of reserves unless the syndicator approves it. Dennis said that the oversight and compliance on the part of the syndicators is unbelievable. Hightshoe noted that better quality products would be used to build these units and quite a bit of green is incorporated into the plans. Dennis said that the Iowa Department of Economic Development now requires the submission of a green development plan. She said that initially they were hoping to make this project the first LEED (Leadership in Energy and Environmental Design) certified low-income housing tax -credit project in the state of Iowa, but that it was not possible to do so and remain under the cost caps. Eastham said it may be possible in the near future if there are more townhome units involved because that lowers the costs. Richman asked what the cost cap is right now. Eastham stated that it is $194,000, which is right where the project is presently. Hightshoe said that staff is comfortable with the costs as planned. Eastham said that if the Commission wants more money to flow back to the City, they should push the City Council to rezone to allow for more townhome and duplex opportunities. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 7 of 13 Richman asked if Commissioners had any more questions or comments. DeFrance said that she had some concerns about the location of the new units, as it was her understanding that there were not to be any more rental homes built south of Highway 6. Long and Dennis explained that The Housing Fellowship had gone to City Council to get the site for this project approved. Hightshoe said that staff went back and looked through all of Census Tract 18 and then looked further based on subdivisions in Census Tract 18. When looking at the Mount Prospect subdivision (over 300 homes), it was noted that only 1% of the homes in that subdivision had been publicly subsidized with CDBG, HOME or public housing dollars. Hightshoe said that when the 16 units being built in that neighborhood for this project are added into that calculation the number is still less than 7%. DeFrance asked if there would be a problem with that neighborhood accepting these rental homes. She said that she had just taken a tour of the Dolphin Lake Point Enclave (formerly Lakeside) and that she knows there are a lot of issues in that neighborhood concerning rental homes. Eastham noted that all of the homes in this project are single-family detached homes. DeFrance said the ones in the neighborhood she mentioned also were single-family detached, and that there are still a lot of problems surrounding that area. She said she was discussing the area around Dolphin Lake Point Enclave, near Hollywood Boulevard and California Avenue, and the areas surrounding Grant Wood School. She said that she understands that this is a good project, but that she is concerned that the area in which it is to be located is one with a number of issues already. Dennis said that The Housing Fellowship owns a number of single-family detached homes and duplexes as rental units and that typically the policy has always been that the renter maintains the yards and sidewalks. For this particular parcel, Dennis said, The Housing Fellowship will be taking care of the lawns and the sidewalks. This is being done in order to ensure an acceptable appearance for the properties at all times, as well as to maintain frequent contact with the properties from a management perspective. Dennis said that The Housing Fellowship has one rental home on California Avenue with which it has never had any problems. DeFrance clarified that she was not implying that The Housing Fellowship itself was responsible for any of the concerns, but that it was the addition of more rental properties to the general area which concerned her. Dennis asked if it was the condition of the homes that concerned her. DeFrance replied that it was not just the condition of the homes but also the frequency of police calls to the area. She said she was concerned for the people that live in that area that actually own their homes; she said she was not sure that those people would be as convinced about the wisdom of putting 16 more rental units in that area as the people in the room seemed to be. Eastham said that there are two approaches to addressing neighborhood concerns. One approach is to provide good management, something which The Housing Fellowship does very well. The other approach concerns location. Eastham said that the Fellowship has explored other locations for lots on which to build rental housing in Iowa City, however, they can only build where land is available. Eastham said the Fellowship is looking like crazy for additional locations throughout the Iowa City, Coralville, and North Liberty areas. Eastham said that the Fellowship has not seen a strong indication from renters coming to them that they by and large prefer to live somewhere else in Iowa City. DeFrance said that her concern was not so much for the people wishing to rent homes, but for the people who have already purchased them in the neighborhood. McMurray stated that she lives in that general area and that she agrees that there is a perception that there is a lot of crime in that neighborhood, but that if one looks at the actual data the problem is nowhere near the level that perception leads one to believe. She said that as a resident of the area, she can say that these HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 8 of 13 additional rental units do not concern her. DeFrance said that she lives in the general area as well and that she has a lot of people perceive her street as being in the "ghetto," something with which she does not agree at all. She said she is simply saying that she does not even live in the neighborhood, but that she often hears concerns about it. She said that she wants to see this plan succeed and that she is in no way trying to be against the project, but that she has some concerns for its effect on homeowners in the area. Dennis asked if DeFrance's concerns were specifically for property values or if her concerns also extended to other renters that live in the area. DeFrance said she was not concerned about the renters. She said she was concerned about people who own homes in the area and believe that if these rental homes are built in their neighborhood their own properties will be devalued. Dennis said that this was a misperception, and that the data does not support that perception. DeFrance said that she understands that, but that she has heard realtors and others saying that living next to subsidized housing devalues your property. DeFrance said she was concerned about that because there seems to be a large group of those kinds of homes in that area, including the Whispering Meadows and Coneflower Court area. Hightshoe pointed out that the Whispering Meadows subdivision has a subsidized rate of approximately 35% (includes both subsidized owner occupied and rental properties). In her opinion, this level of subsidy in one immediate area is high and something she would not recommend for future projects. The council has removed the restriction for site review on owner -occupied homes. The requirement for council review in areas not encouraged for affordable housing remains a requirement for rental projects. The project in question, Hightshoe said, is in a subdivision (over 300 homes) in which only 1 % of the homes are subsidized. Census Tract 18 has one of the highest homeownership rates in the City. Hightshoe said that there is a perception problem and that people think there is more of a concentration issue of subsidized housing (CDBG, HOME and public housing) south of Highway 6, but that that perception is not accurate. Long said that both he and Hightshoe live across the street from Housing Fellowship properties and that the management of the homes are impeccable. He said that in all honesty he would much rather live across the street from a Housing Fellowship home than some of the student homes downtown. DeFrance said she has no problem with The Housing Fellowship and that she has seen how well they have rehabilitated some of the homes on Taylor Drive; she said her concern is for the overall neighborhood. Long said that he believes the concern she is expressing are related to management more than to whether or not a property is subsidized. Long said that the City as a whole answers a lot of questions on subsidized housing and that the data that has been collected by Steve Rackis (Director of ICHA) and others demonstrates that perception does not match the reality of the situation. Long said perception is hard to change, but that he believes properties in the area, particularly Dolphin Lake Estates are working hard to change that public perception. DeFrance said she thinks the project is a great idea, but that she just hopes the neighborhood accepts it. Long said that in talking with the school district on development issues, the idea of building another school in that area is on the District's radar as a means of alleviating some of the pressure on Grant Wood school. DeFrance said that this was another question she had had, as she was aware that the school was at or over capacity already and that adding 16 homes to the area would intensify the problem. Hightshoe said that of the twelve elementary school attendance -boundaries in Iowa City only two are under capacity, and that is by minimal amounts. Shimek and Hoover are the only two schools under capacity at present. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 9 of 13 Dennis said that from The Housing Fellowships perspective, they have an all volunteer board that consists entirely of Iowa City residents. The Housing Fellowship does not want to cause problems in or for any neighborhood. Dennis said the Fellowship owns rental homes in 11 of the 13 Iowa City elementary districts, and tries very hard to site rental homes in a way that will not illicit concerns from the neighborhood. Having said that, Dennis noted, scattered -site housing is very important to The Housing Fellowship, but is also very expensive. She said that they had considered trying to rezone the land to allow multi -family units rather than single-family homes. However, as a Board they decided not to attempt to rezone and proceed with single family homes. Dennis said that even if the problem is one of perception, it is not one that can be easily changed. She said that it can only be changed slowly by presenting the true facts to people and putting a real face on the people who need these kinds of homes. By and large, Dennis said, the families that rent from The Housing Fellowship are hard-working families whose kids are well-behaved and excel in school. Dennis said that they are very cognizant of all of the concerns and perception problems DeFrance discussed. Hightshoe added that people will not be able to tell that the proposed homes are subsidized. Eastham noted that in terms of subsidized housing causing neighborhood schools to go over capacity, the real source of over -capacity problems is large scale development by big, for -profit developers. DeFrance said that when she and her husband purchased their home, they were drawn by the potential for a new school that had been planned in the area. She said that she was well -aware of the very nice -looking Longfellow project that The Housing Fellowship had done. She said she had merely been concerned for the perception that the neighborhood would have for such a project. Richman asked if there were other questions or comments. There were none. Hart motioned to recommend to City Council the request by The Housing Fellowship to amend the financial terms of their FY08 & FY09 City HOME fund allocation of $545,722. HCDC recommended the terms as requested: a 20-year deferred loan at 0% interest with a balloon payment at year 20. Crane seconded. A vote was taken and the motion carried 7-0 (Douglas and Shaw not present). Long noted that the matter would be on the City Council agenda for their October 21 st meeting. OLD BUSINESS: • Review Timeline for the Annual Review of the 2006-2010 Consolidated Plans (a.k.a City Steps): Hightshoe stated that staff was behind on the review of CITY STEPS due to the high volume of flood -recovery related work ranging from questions from the public and flood victims, to setting up and operating the Flood Recovery Center, to making plans and working with state and federal agencies to accept applications and allocate an additional $2,000,000 to be spent in the next few months. Hightshoe said that staff plans to discuss the Annual Review at the next HCDC meeting on November 20th. Hightshoe said there will be a public input meeting to review our current plan on October 12�h at the Local Homeless Coordinating Board meeting. Hightshoe said she had also HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 10 of 13 contacted the ICHA to see if a public input session could be coordinated with one of the training programs that they will be putting on in the near future. Before the November 20th HCDC meeting, there will be at least two meetings to gather public input. After those two meetings, Hightshoe will summarize and put out an e-mail with the findings. Hightshoe said the timeline will be condensed from the usual process due to time constraints. Long said that this year was unusual due to all of the unexpected flood -related work, and he apologized for that. He'noted that the City is in the process of hiring someone full-time to take over flood -recovery programs. Hightshoe noted that their office is not only administering the Jump Start assistance being offered by the state but also handles the supplemental CDBG funding, the flood mitigation program and all flood buyout questions. Crane asked if a lot of businesses had inquired into the Jumpstart Business program. Long said that they had, but that there were more homeowners. Crane asked what is the cap for business assistance. Hightshoe said it is 25% of the executed loan for damage repairs or flood related losses up to $50,000; she said that banks would be notified of the program. She noted that businesses get a month to apply for the funds whereas homeowners only have a week. Long stated that it is time to do the new Consolidated Plan, a.k.a. CITY STEPS. Long said that for the first time a consultant will be hired to handle that project due to the time constraints on staff. Hightshoe noted that other entitlement cities have been very helpful in assisting in any way they can; the city of Dubuque will be helping the City with its Consolidated Annual Performance Evaluation Report. Hightshoe said that HUD had given the City a waiver allowing it to have the report turned in by December. Long suggested that the best way to get a hold of either one of them at this point was via e-mail as his voicemail is full by 9:00 a.m. He said they expect the pace to continue for a few more months, and he apologized for any effects that might have on the Commission. Richman said that in hearing of this heavy workload, he is wondering how confident staff is that there will be enough staff resources to go through the allocation process as smoothly as usual when that time comes in three months. Richman asked what was to be done in the event that staff was not confident that the necessary staff time would be available. Long said that they are hopeful that hiring an additional person will alleviate that concern. Long said the hiring process goes relatively quickly and that there are excellent candidates for the position, although it will take some time to train them. Hightshoe said that the person who is hired will be administering the new flood -related programs and she and Long will go back to their old jobs. Richman said he just wanted to make sure that at least one of them will be able to invest the amount of time that is needed to make the allocation process work smoothly. • HousinE Conferences: McKay said that as a newcomer to the Commission when he first entered the conference he felt as though he had entered a full -immersion foreign language program due to all of the new terminology and acronyms with which he was unfamiliar. He said he tried to skip around to different topic areas to try to get a feel for the wider nature of the conference. He said what struck him the most was the presentation outlining how grim the whole tax -credit area looks like right now. He said that everything is tightening up in that market as the biggest investors in that arena had been Fannie Mae, Freddie Mac, and Washington Mutual. With their collapse, 40% of the money usually invested in tax -credits was instantly gone. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page l 1 of 13 McKay said there was a good discussion on the green effort in affordable housing. He noted that most of the builders said that the numbers simply did not work out at this point, although they do try to get as energy efficient as possible while staying within the caps. McKay said even without going fully green and implementing as many energy -savers as possible while maintaining affordability, the cost of the project goes up by 5-10%. McKay said he attended some sessions on homelessness that dealt a lot with the human and societal side of the issue, but did not offer a lot of solutions from a housing standpoint. McKay said he used the conference as an opportunity to learn and thanked the Commission for allowing him to attend. Long noted that on October 10`h and 11`hthere is a symposium on the foreclosure crisis being held by the University of Iowa as a part of the Forkenbrock Series. Jerry Anthony, longtime Commission member and Professor of Planning at the University, is involved in the series. Long said that if anyone on the Commission is interested there is a scholarship available for someone working at a City office or working on a board or commission. MONITORING REPORTS: • Isis Investments LLC — Rental Housing (Shaw) Shaw was unable to stay for the whole meeting and so was not available to report at this time. • Twain Elementary — Playground Equipment (Drum) Drum said that he had not had a chance to speak with Mary Bontrager about the playground, but that he had taken some pictures which he would bring at a future date. He said that the playground has been a wonderful addition to the neighborhood. The playground looks great and is in constant use by neighborhood children. He felt the change was a very positive one. • Dolphin International LLC — Down -Payment Assistance (DeFrance) DeFrance said she had spent an hour and a half touring the buildings and discussing the changes with the proprietor. She said 37 units had been contracted for purchase, although only 32 are presently ready for sale. DeFrance said that the changes in the property are remarkable: each unit now has its own mechanical room which has eliminated a persistent mold problem on the property; the units have maple cabinets, granite countertops, hardwood floors, walk-in closets and soundproofing qualities; the townhouses offer either one, two, or three bedrooms with first and second floors. DeFrance said the proprietor shared some of the difficulties he has encountered in trying to overhaul the property. She noted that he has proposed building at his own expense a police substation on the west side of the property, and that he would like for the City to commit to a part of the funding. The property manager believes that having a permanent police presence out there would make a huge difference, although he did express gratitude for the support and patrols that the police already provide. DeFrance said that the property manager has instituted a two -strike policy for tenants found to be engaged in certain illegal activities in which the second offense results in eviction. The property manager has also hired a private security company to come in and patrol the area. The HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 7, 2008 PLANNING & COMMUNITY DEVELOPMENT CONFERENCE ROOM Page 12 of 13 proprietor manager originally wished to gate the community to cut down on nuisance problems from those not authorized to be on the property, but ultimately the City's Transit Department could not support such a move. DeFrance said that the property owner is attempting to make the area more positive by encouraging Boy Scouts and Girl Scouts troops to meet in the clubhouse, arranging to have a polling place on site, and having a Veteran's Day ceremony on site. DeFrance lauded his efforts. Crane asked if the units are being sold on contract or with bank financing. DeFrance said she believed they were financed by banks, and that less than half required down payment assistance. DeFrance said that credit counseling is offered as a part of the sales process, and household budgeting workshops are offered on a continual basis. Hightshoe noted that this is great workforce housing as the property is located near many workplaces as well as Kirkwood. DeFrance said the one -bedrooms begin in the $60-thousands, and the three - bedrooms are around $107,000. McMurray asked if a playground had been built. DeFrance said that it had not, but that the entire property will be fenced in and two of the streets leading into the property will be closed to make the area safer for children. DeFrance again described the remarkable improvements that had been made to the property and the positive changes that had been made to the grounds. She noted that the property manager also has great relationships with the tenants. • FY08 Goodwill Industries — Facility Rehabilitation (Shaw) Shaw was not available to report at this time. ADJOURNMENT: Drum motioned to adjourn; DeFrance seconded. The motion to adjourn was approved unanimously (Douglas and Shaw not present). The meeting adjourned at 8:00 p.m. City of Iowa City MEMORANDUM TO: Housing and Community Development Commission FROM: Deb Briggs, Homeownership Coordinator DATE: November 13, 2008 RE: Status of DAP The spreadsheet included in your packet provides you with an update of the DAP. To date, DAP has assisted 9 families: • 6 closings having occurred • 2 approved applicants are searching • 1 applicant is pending approval. Two applicants withdrew from the process for the following reasons: • 1 wanted to utilize USDA financing which cannot be used within Iowa City 1 purchased a pre-1978 home and was not interested in having a lead -based paint test A total of 6 lenders have submitted application on behalf of their customers. The lenders are: • MidwestOne Bank • University of Iowa Community Credit Union • Hills Bank • Residential Mortgage Network • American Bank and Trust Almost half of the awarded DAP funds (48%) have been expended and/or obligated. Originally, City Council allocated 70% ($131,250) of the funds be reserved for buyers at or below 60% of the area median income and the remaining 30% ($56,250) to be reserved for buyers between 61 % - 80% of the area median income. As you can see from the spreadsheet, the number of buyers assisted in each income level is almost equal — 4 at or below 60% of the area median income and 5 between 61 % - 80% of the area median income. The ICHA is requesting that the Commission make a recommendation to City Council to amend the allocation to eliminate the allocation. That way the remaining funds available may be accessed by any eligible first-time homebuyer with income up to 80% of the area median income. Thank you for your consideration. t) cn i7 I P (riLO cz O N O O O O 0o Q E "a O N O o L U Ln (00 Ln r (O C) O O 64 6} to a) co ON O O O O � O O N .0 O O Itr T O O O o co Cc: Q O Q Ga Ef3 CG EF} O 0 O(D 0 _0 a) -0 -0O C a) a cn v U cz E Q C f� N > U = i� U O o O cts C Lm C 70 RS = C -FzLL w m Q U ti .o co o ti 0 ea Q O 0 Y T O _ Q E L a) >O E -0 O C Q Q '0 Q W () o 0) Z Z pop Z 0 cZ O W 06 a) T > N Q m C Q) O O O C C cz _O Q cn Co U C Cu U (D C O >' E () c a) E o W a O U) O N L > C O U CZ 0 W ' U) 0 ai O U)'U a- a) ai a) (D m m a) a)co a) a) a co cz cz C Ccz cz m c m c ct� = � � �� cA � cn 'cA N O = N N N a) U U C U C U C Q U O U O U U U Q U C U � a) _ O-o E O O O O O O O l o a) o o C-) It 0 rl- L O f- (O �l ,. a) C C .N It (O T T Cl) r T T (\j L O O O C QD O O O O O O O C) O O O O O 0 Q J U) 60 fC V O O 0 00 00 0 .� N Cj 0 k ✓ M It T T (N r Ln O co V' vG v> vq 6G 60 vq co 00 0 co co 00 co 0 O 00 0 O a) OCo O O LO 00 N N LN U r r co 00 0 T 0 T J O O Z co co N co (o coo m CY7 00 00 � F•- O N N U 1- ._. O a) C O C O O - C O '- = N _ N U C� N U C: N rr V/ C: a) C: a) Z 0 T a) a) a) C J OU) U i C E Y U O U O J Q O M a) canCO (n U tz U) O � N c C: .O Q j T J d m C U T MMJ L- r co m co Z^ Q `' a) a) Q C/ City of Iowa City MEMORANDUM TO: Housing and Community Development Commission FROM: Deb Briggs, Homeownership Coordinator DATE: November 13, 2008 RE: Grant Application to State for addition DAP funds Per City Council recommendation, the ICHA would like to inform the members of HCDC that a grant application will be submitted to the State for additional downpayment assistance funds. The amount requested is $200,000 and the program will mirror the existing DAP program, with one exception. The new funds may be used anywhere in Johnson County, including Iowa City. The State funded downpayment assistance program will be called DAPCO, to indicate it's availability for units throughout the County While the ICHA declined the allowable administrative fees for the DAP approved by the Commission, the application to the State includes a budget line item for administrative costs so that City Staff time will be compensated. The application is due November 21, 2008 and the ICHA expects the funding announcement in early March 2009. To ensure that Iowa City continues to have delegated downpayment funds for purchases within Iowa City, the ICHA anticipates submitting an application for FY10 HOME funds. CITY OF IOWA CITY FY10 ALLOCATIONS TIMELINE Dates Subject to Change Dec. 4, 2008 Public notice that CDBG and HOME applications are available Dec. 17, 2008 CDBG/HOME Applicant Workshop, Emma Harvat Hall, City Hall, 10:00 AM Jan. 08, 2009 CDBG/HOME Applicant Workshop Emma Harvat Hall, City Hall, 2:00 PM Jan. 21, 2009 Applications due to City of Iowa City by 12 noon Feb. 19, 2009 HCDC meeting: question/answer discussion with CDBG/HOME applicants. Iowa City Public Library, 123 S. Linn Street, Meeting Room A, 6:30 PM Feb. 27, 2009 HCDC ranking forms due to City staff Mar. 12, 2009 HCDC meeting: review of groupings and consensus funding scenario. Iowa City Public Library, 123 S. Linn St., Meeting Room A, 6:30 PM (CDBG/HOME applicants encouraged to attend, but not mandatory) Mar. 26, 2009 HCDC meeting: recommendation on CDBG/HOME funding awards. Iowa City Public Library, 123 S. Linn St., Meeting Room A, 6:30 PM (CDBG/HOME Applicants encouraged to attend, but not mandatory) April 2, 2009 HCDC justifications memo due for council packet April 3, 2009 Draft FY10 Annual Action Plan done - 30-day comment period begins May 4, 2009 Expiration 30-day comment period on the FY10 Annual Action Plan May 4, 2009 If Needed - joint HCDC/City Council meeting May 5, 2009 City Council: public hearing on the FY10 Annual Action Plan May 5, 2008 City Council Meeting: resolution -approving the FY10 Annual Action Plan July 1, 2009 Start FY10 projects (If awarded funding, no expenses may be incurred prior to both July 1 AND execution of a CDBG/HOME agreement) Items in bold are the scheduled HCDC meetings Items in italics are for those items due from HCDC members to Community Development staff. 1111312008 December 2008 FY10 APPLICANT GUIDE IOWA CITY CDBG AND HOME PROGRAMS This guide outlines requirements for individuals/organizations (applicants) applying for and receiving Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) program funds through the City of Iowa City. The applications for FY10 funding (housing and non -housing) include anumber of narratives, statistical and financial questions so please contact staff if you have questions or need technical assistance. HCDC strongly encourages all applicants to attend one of the CDBG/HOME Applicant Workshops. THE APPLICANT WORKSHOPS ARE SCHEDULED AS FOLLOWS: WEDNESDAY, DECEMBER 17, 2008, EMMA HARVAT HALL, CITY HALL AT 10:00 AM THURSDAY, JANUARY 8, 2009, EMMA HARVAT HALL, CITY HALL AT 2:00z PM Financial Information for CDBGIHOME Appli The U.S. Department of Housing and Urban be counties and states) and applicants (subrecipiei HUD has set a national goal of leveraging three project. Although this is not a program require'n private funding, volunteers and in -kind contribut on your application. Both volunteers and in -kind worth points in the ranking sheets and are inclui • Applicants • All applica bmit a .ants elQpment (HUD) is encouraging both grantees (cities, rs such as yourselves) to maximize private investment. xivate dollars for each public dollar invested in a ant we are asking you, as applicants, to leverage ms whenever possible and to include this information ionations are very important. These contributions are ad in .HCDC's evaluation of your application. r loans from CDBG\HOME per the policy. date will be evaluated and ranked by HCDC. Rental Irma' with their application. A copy of the ranking sheet is attacnea nerein. CDBGIHOME Funding Process The following is a proposed timeline for the FY10 CDBG\HOME funding process. 1. Applications Due 12 noon -- January 21, 2009 2. HCDC Meeting - Question\Answer with Applicants February 19, 2009 3. HCDC Meeting — Review Grouping and Consensus March 12, 2009 4. HCDC Meeting - Funding Recommendations March 26, 2009 FY10 Applicant Guide PART I. FEDERAL FUNDING EXPECTED TO BE AVAILABLE FOR FY10 In FY10 the City of Iowa City is expecting to have available approximately $1,475,000 in federal funds (including FY10 entitlements plus program income) from the U.S. Department of Housing and Urban Development (HUD). Of this figure, Community Development Block Grant (CDBG) funds account for about $761,000. The CDBG program may be used to fund a wide range of activities from housing projects to the provision of human services. The HOME Investment Partnership program accounts for about $714,000. The focus of the HOME program is for affordable housing activities; homeownership opportunities, rehabilitation or new construction for rental or owner -occupied units and tenant based rent assistance). ._......... The City of Iowa City has adopted the 2006-2010 Consolidated Plan_(a.k.a. CITY STEPS), as the overall guide for allocating CDBG and HOME funds. CITY STEPS has five-year priorities, strategies and goals designed to address the needs of low-income persons for housing, jobsand services in Iowa City. Priorities as outlined in CITY STEPS are attached. Because CITY STEPS is a multi -year plan it is important to structure each annual overall strategies and goals are being met. The City Council will Action Plan before it is submitted to HUD. These goals, and the be the method HUD will use to measure the City's performance' Plan. In order to direct CDBG and HOME funds to activities mel be allocated to five categories. The categories and the approxirr are as follows: Housing Activities plan so that the ew and approve the FY10 Annual ,'s efforts to meet these goals, will compliance with the CITY STEPS I these multi -year goals, funds will amount of funds available in each Public Services (capped at 15°fo Qf CDBG entitlement) Economic Development Activities* Public Facilities and Infrastructure Program Administration and Planning TOTAL: $ 731,000 $115, 000 $95,000 $320, 000 214 000 $ 1,475,000 *Economic Development Activities 15% of CDBG entitlement- however new allocation is determined at that time applications are available to the public for the new fiscal year. The maximum amount available in the CDBG Economic'Development fund shall not exceed $250, 000. Please note that the dollar amounts assigned to each category are somewhat flexible. Also, it is the City Council's policy to allocate $105,000 of the Public Services funds to annual operating expenses of Human Service Agencies, as Part of the City's Aid to Agencies budget. This leaves approximately $10,000 for distribution to other public service activities. A requirement of the HOME program states that not less than 15% of the HOME allocation be reserved for Community HousingDevelopment Organizations (CHDOs). In FY10 this set -aside is to be a minimum of $92,000. This amount is contained in the Housing Activities category as shown above. Per Resolution #00-402 there is a set -aside for the Iowa City Housing Rehabilitation program. This set - aside is equal to $164,000 plus the Revolving Loan Fund income generated by the Housing Rehabilitation Program of $66,000 for a total of $230,000. When the Housing Rehabilitation Program set -aside is subtracted from the Housing Activities category there is approximately $501,400 left for distribution to housing applications including CHDOs. FY10 Applicant Guide 2 PART II. APPLICATION REQUIREMENTS AND CONSIDERATIONS Applicants for these federal funds should evaluate the following HUD guidelines as well as City policies contained in CITY STEPS when considering the types of proposals, funding estimates, and time schedules for achieving their program\project goals. NATIONAL OBJECTIVE ALL Proposals must address a Low -Moderate Income Benefit a. CDBG Funds The National Objective of the CDBG Program is the "development of viable urban communities by providing decent housing and suitable living environments, and.,expanding economic opportunities, principally for persons of low and moderate income." At least 51 % of the program beneficiaries (persons or households) must have incomes at or below 80% of the local median income category. (Where assistance is provided directly to individual households (e.g. housing rehab), all of the households must have incomes below 80% of the median household income). b. HOME Funds The national objective of the HOME` housing. All activities undertaken witj 80% of median family income. An projects funded by HOME. For these targeted to persons'andihousehold: 7 is 8 persons $17,450 $19,600 $21,800 $23, 550 $25, 300 $27, 050 $28, 800 is the provision of safe and decent affordable unds must benefit persons or households below income restriction is added for rental housing >jects, 90% of the HOME assisted units must be 1% of the median family income. Iowa City released February 13, 2008 60% 80% $30,480 $34,800 $39,180 $43, 560 $47,040 $50, 520 $54, 000 $57,480 $40,650 $46, 500 $52,300 $58,100 $62, 750 $67,400 $72, 050 $76,700 The CDBG statute pertaining to the low -moderate income national objective specifies criteria for deter- mining low- and moderate -income benefit. 1. The activity must be carried out in an area or neighborhood consisting predominantly of low - moderate income persons, or the activity must involve facilities or services designed for use predominantly by low -moderate income persons. Demographic information is available at the Planning Department. In some instances, applicants may need to conduct a survey of the potential beneficiaries to determine income eligibility. FY10 Applicant Guide 3 2 3 a 7.1 Housing that is being improved, as part of a project must be occupied predominantly by low - moderate income persons. Job creation or retention as an activity must involve employment of predominantly low and moderate -income persons. ELIGIBLE ACTIVITIES Activities that can be carried out with CDBG funds include, but are not limited to, the following: • Acquiring real property, demolishing structures and clearing property, and relocation assistance for residents of property being demolished. • Rehabilitation or preservation of residential and weatherization, painting, accessibility improvers rehabilitation. • Construction of public facilities and irripr infrastructure repairs and installation of cu and installation of accessible playground eq sidential structures, including emergency repairs and comprehensive such as water and sewer facilities, construction of neighborhood centers The provision of public services within the limit of 15% of the community's CDBG alloca- tion, including education, training, employment, health, drug abuse, fair housing, crime prevention, child care, recreation, and energy conservation programs. The City of Iowa City currently allocates $105,000 to the Human Services agencies in conjunction with its "Aid to Agencies" budget,, Activities that can be carried out with HOME funds include the following: • Acquisition of real property (including Homeownership Assistance), payment of "soft" costs associated with a project; dmolition and clearing property, site and infrastructure improve- ments and relocation assistance for persons being displaced by a HOME activity. • Rehabilitation or preservation of residential structures (comprehensive rehabilitation only). • Tenant Based Rental Assistance (TBRA) for a period of up to 24 months. • New construction of affordable housing units (rental or owner -occupied). • Operational expensesand Capacity Building for Community Housing Development Organi- zations (CHDOs) within the limit of 5% of Iowa City's HOME allocation. INELIGIBLE ACTIVITIES The following types of activities that are ineligible include, but are not limited to, the following: • Buildings for general conduct of government and expenses required to conduct the regular responsibilities of local government, e.g. street maintenance, public buildings for government. • Political, religious and lobbying activities, income payments, such as rent assistance and mortgage payments. • CDBG ONLY: New housing construction, except for residential facilities providing shelter for persons with special needs (homeless shelters, convalescent homes, halfway houses, and FY10 Applicant Guide 4 group homes). Purchase of construction equipment, office equipment, fixtures, motor vehicles, furnishings or other personal property not an integral structural fixture such as computers and other office equipment. PERFORMANCE SCHEDULE AND PAYMENT Performance schedules will be outlined with the goal of completing the project within the City's fiscal year (July 1-June 30). Disbursements can be made AFTER the contract has been formalized. Expenses incurred before July 1, 2009 and(or before a contract has been entered may not be reimbursable. Disbursements can be made upon receipt of 1) invoices for labor, materials and services tendered, and 2) signed lien waivers (as appropriate) covering all amounts to be paid. In some instances, pre -agreement costs may be reimbursed to applicants; however, Community Development staff must be contacted prior to making any pre -agreement disbursements to verify if the cost may be reimbursed. In case of minor cost overruns or requests for additional funding the City Manager and staff may approve a contract amendment that is non -substantial. In the case of substantial changes (as defined in the 2006-2010 Consolidated Plan a.k.a. CITY STEPS) the Housing and Community Development Commission and City Council must approve the change and an amended agreement is required'. In the application form, applicants will be aske( herein for the proposed project. After this first one of the "Outcomes" that are defined herein the project benefits by placing a numeric value "households" or "housing units". Objectives Suitable Living Environment: in general, this of benefit communities; families, or individuals by to mark tine of the "Cipjaptives" that are defined tep, the application will then ask the applicant to mark )r the proposed project. The last step is to quantify n one of the "Outputs" categories of "persons", ective is related to activities that are designed to addressing issues in their living environment. Decent Affordable Housing: The activities that typically would be found under this objective are designed to cover the wide range of housing possible under HOME, CDBG, HOPWA, or ESG. This objective focuses on housing programs where the purpose of the program is to meet individual family or community needs and not programs where housing is an element of a larger effort (such as would be captured above under Suitable Living Environment). Creating Economic Opportunity: This objective applies to the types of activities related to economic development, commercial revitalization, or job creation. Outcomes Availability\Accessibility: This outcome category applies to activities that make services, infrastructure, housing, or shelter available or accessible to low -and moderate -income people, including persons with disabilities. In this category, accessibility does not refer only to physical barriers, but also to making the affordable basics of daily living available and accessible to low- and moderate- income people. Affordability: This outcome category applies to activities that provide affordability in a variety of ways in the lives of low- and moderate -income people. It can include the creation or maintenance of affordable housing, basic infrastructure hook-ups, or services such as transportation or day care. FY10 Applicant Guide Sustainability, Promoting Livable or Viable Communities: This outcome applies to projects where the activity or activities are aimed at improving communities or neighborhoods, helping to make them livable or viable by providing benefit to persons of low- and moderate -income people or by removing or eliminating slums or blighted areas, through multiple activities or services that sustain communities or neighborhoods. Outputs Households: One or more persons occupying a housing unit. Persons: An individual or individuals. Housing Units An occupied or vacant house, apartment; - or sin that is intended as separate living quarters. For additional information please see the Federal Register, June 10, 2005, p, BUDGET In estimating the amount of the proposal or the project' documentation for the costs and consider the following expen • Appraisals, legal fees, title opinions and surveying • Building permits, engineering or surveying costs, advertising and -bidding costs for rehabilitation and le room (SRO housing) , applicants should try to obtain rty acquisition projects. ion fees, professional fees, Other project costs such as compliance ' with HUD regulations (audits, labor standards, environmental studies, fair housing, etc.) which are listed in Part 111 of this guide should also be included. Applicants should become familiar with that section of the Guide prior to submitting an application. NOTE: Rental housing projects, regardless of funding sources, will be required to complete and submit the proforme attached to the FY09 application form. HOME PROJECTS ONLY: HOME i funds are required to be matched at the rate of one match dollar for each four HOME dollars or'25% of the HOME funds being requested. The City has made a commitment to match local HOME dollars, however, we also expect applicants for local HOME funds to contribute to meeting this matching contribution (see HOME regulations for eligible forms of match). ** Applicants may wish to meet with staff before filling out the application to discuss the project budget, potential costs and the estimates for project expenses. PART III. COMPLIANCE WITH FEDERAL REGULATORY REQUIREMENTS All CDBG\HOME contracts include requirements imposed by various Federal -sponsoring agencies. These include procurement standards for labor, materials, supplies and services not only related to the project but also to the applicant's operation. FY10 Applicant Guide 6 1. Procurement standards and subcontracting requirements are set forth in OMB Circular A-110 and 24 CFR Part 85. This circular is provided to the applicant at the time of signing the Agreement with the City. However, the following list briefly describes the main points in contracting for services and purchasing supplies and materials. 2. Affirmative efforts shall be made to utilize small and minority -owned businesses or sources of supplies and services. Conflict of Interest rules will also apply. 3. Construction contracts in excess of $2,000 shall comply with the Fair Labor Standards Acts. Specifically, 1) The Davis -Bacon Act which requires contractors to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor, 2) Copeland Anti -Kick Back Act, which prohibits employers from inducing employees to give up any part of the compensation to which they are otherwise entitled, and 3) The Contract Work Hours and Safety Standards Act which requires contractors to compute wages on the basis of a standard work week of 40 hours. Work in excess of the standard workweek shall be permissible if the worker is compensated ata rate of 1'/2 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. No worker shall be required to work in unsanitary, dangerous or hazardous surroundings. 4. Contracts over $10,000 shall contain requirements relating to Equal Employment Opportunity. 5. Provisions for termination shall also be included in al 6. Records should be kept for all procurements, Construction projects for more than $100,000 must utilize the competitive sealed bids (formAl advertisement) method of procurement. Procurement by small purchase procedures shall be utilized for projects $100,000 or less. Price or rate quotations shall be obtained from an adequate number of qualified sources under this method. 7. Contracts in excess of $25,000 shall contain provisions and conditions that allow for administrative, contractual or legal remedies in instances in which contractors violate or breach contract terms. 8. Contracts in excess of $100,000 shall meet bonding and Section 3 requirements. Minimum bond requirements include: bid guarantee equal to 5% of bid price, performance bond for 100% of contract price and payment bond for 100% of contract price. 9. Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative Marketing and Fair Housing. 10. Acquisition, Displacement and Relocation are also contained in the Agreement. 11. Lead Based Paint regulations regarding interim controls and abatement may also apply. PART IV. FINANCIAL MANAGEMENT Standards for financial management and record keeping are provided in OMB Circulars A-110 and A- 122 and 24 CFR Part 84. Local accountants and agency directors experienced with federal requirements may be helpful resources. • Each recipient shall have a financial management system that provides effective control over and accountability for all funds, property, and other assets, must identify the.source and application of FY10 Applicant Guide 7 funds for federally -sponsored activities, and permit the accurate, complete, and timely disclosure of financial results in accordance with the reporting requirements of the City and HUD. • A separate ledger for the CDBG and/or HOME account is strongly recommended. • Appropriate time distribution records must be kept for employees paid with CDBG funds in addition to other funds. • All project -related expenditures must be supported by third party documentation (invoices, contracts, and purchase orders). Lien waivers are required from all contractors and subcontractors. • Reductions in project costs or increases in the commitment of other. funding, if any, shall be brought to the immediate attention of staff. The impacts of these changes must be discussed with staff and appropriate reductions in CDBG and/or HOME funds may be made on a, pro -rated, case -by -case basis. PART V. REPORTING AND MONITORING Community Development staff will monitor all aspects of the project beginning with pre -agreement activities, goal setting to project closeout. Any project changes must be approved by the City. All notices and reports should be d Communi 410 East I Iowa City, Periodically, Community Developme project progress, financial managen well as client statistics. Staff will atte In most cases, a financial -au are sufficiently independent c conduct those audits. Audit final disbursement of funds. For organizations that expect to,r required to have an audit coveri disbursements will be required as For CDBG projects, all records submission of the Consolidated activity is reported as complete. compliance period. Iowa 52240. iff and HCDC members will conduct monitoring visits to review construction contracts, time records related to the project as o give reasonable notice prior to the site visit. the project expenditures will be required. Qualified individuals who agency and can produce unbiased opinions and conclusions should Is should be submitted within six months of project completion and ive more than $500,000 in federal assistance from all sources are the financial activities of the organization as well as the project forth in OMB Circular A-133. relating to the project should be kept at least four years after the Annual Performance and Evaluation Report (CAPER) in which the The CDBG Agreement should be retained until the end of the For HOME projects, all records shall be maintained as required in 92.508 Recordkeeping depending on the type of project (rental, homeownership, or tenant -based rental assistance). The City of Iowa City requires quarterly reports and has a standardized reporting form. For rental and homeownership projects, the applicant must complete project close-out forms and submit to the City upon project completion. The period of affordability does not begin until the City has been notified and the data entered into HUD's information and management system (IDIS). The compliance period will vary depending upon the regulatory requirements of the CDBG and/or HOME program and the FY10 Applicant Guide 8 information contained within the CDBG\HOME application. During the compliance period, Community Development staff will request records relating to the stated purpose of the project to see if goals have been carried out, to review the low and moderate income benefit requirements as established by HUD, and to monitor the financial status of the organization. PART VI. HOUSING RELATED ITEMS Site Location. One of the City's goals is to encourage the distribution of housing and residential facilities (e.g. permanent housing — rental and homeownership, transitional housing, homeless shelters, and special needs housing). On November 14, 2005 the City Council reached consensus on identifying areas of the community where the development of assisted; housing would be encouraged. A map of these areas is included within this application packet. Rental housing projects that are assisted with CDBG/HOME funds and are proposed in areas not identified for additional affordable housing opportunities must be approved by City Council ,Development of owner -occupied housing or homebuyer assistance may be located anywhere in Iowa City without further review as approved at the March 19, 2007 City Council work session. Additional Information Requirements. Before an applicant may enter an agreement with the City, the applicant must submit updated information such as, but not 'limited to, the project schedule, sources and uses statement, construction budget (if applicable), and proforma (if applicable). All other funding sources must be identified and verification submitted to the City to complete a subsidy layering analysis when multiple public funding sources are utilized. Appraised Value at Project Completion. each housing protect, except minor home repairs, funded with CDBG and/or HOME funds must have an appraised value at project completion that demonstrates adequate equity to secure any liens. if the project casts exceed the appraised value; the applicant/owner must repay the City the difference between the appraised value and the total project cost, up to 100°/o of the City's contribution. FY10 Applicant Guide 9 HUD Table IVA LISTING OF PRIORITY NEEDS (Rental Households) Priority Need Level 2000 2000 PRIORITY HOUSING NEEDS High, Medium, Low, ESTIMATED ESTIMATED (households) No Such Need UNITS DOLLARS NEEDED TO ADDRESS 0-30% 31-50% 51- 80% Cost Burden > H H L 971 $23,304,000 Renter Small 30% Related Cost Burden > H H M 489. $11,726,000 50% Physical L L L- N/A -- Defects'" Overcrowded* L L L N/A -- Large Cost Burden > H M L 145 $3,480,000 Related 30% Cost Burden > H ` H M 68 $1,632,000 50% Physical L L L N/A -- Defects** Overcrowded* H M L N/A -- Burden > M M L 205 $4,920,000 ElderlyCost 30 /o Related Cost` Burden > M M M 152 $3,648,000 50% Physical L L L N/A -- Defects** Overcrowded* M M L N/A -- *Estimated units were not available in the 2000 U.S. Census and 2000 CHAS data ** Physical defects include an estimate of units that are older than 1980 and rented by LMI households. FY10 Applicant Guide 10 LISTING OF PRIORITY NEEDS (Owner Households) Priority Need Level 2000 2000 PRIORITY HOUSING NEEDS High, Medium, Low, ESTIMATE ESTIMATED (households) No Such Need D DOLLARS UNITS NEEDED TO ADDRESS $12,716,000 $5, 352, 000 $1, 728, 000 $576, 000 $6, 696, 000 $2, 520, 000 *Estimated units were not available in the 2000 U.S. Census and 2000 CHAS data ** Physical defects include an estimate of units that are older than 1980 and rented by LMI households. FY10 Applicant Guide 11 Priority Need Level ESTIMATED PRIORITY HOMELESS NEEDS High, Medium, Low, No Such Need DOLLARS NEEDED TO ADDRESS Outreach Assessment Families Individual w/ Special Needs -- s M M M' Emergency Shelters Families Individual w/ Special Needs s 1,620,000 H H M Transitional Shelters Families Individual w/ Special Needs s -- H H H Permanent Supportive Housing Families Individual w/ Special Needs s -- L N H Permanent Housing Families Individual w/ Special Needs s -- H H N upon statistics from Community the 2000 U.S. Census IT PLAN Priorities PRIORITY COMMUNITY` DEVELOPMENT NEEDS Priority Need Level High, Medium, Low, No Such Need ESTIMATED 2000 DOLLARS NEEDED TO ADDRESS PUBLIC FACILITY NEEDS Senior Centers; L $1,200,000 Youth Centers H $1,785,000 Neighborhood Facilities H $1,785,000 Child Care Centers H $2,000,000 Trails, Art, Parks, Recreational Facilities L $6,525,000 Health Facilities L $100,000 Parking Facilities N $1,933,660 Other Public Facilities, Airport, Civic Center L $10,400,000 INFRASTRUCTURE IMPROVEMENTS FY10 Applicant Guide 12 PRIORITY COMMUNITY DEVELOPMENT NEEDS Priority Need Level High, Medium, Low, No Such Need ESTIMATED 2000 DOLLARS NEEDED TO ADDRESS Solid Waste Disposal Improvements L $2,270,000 Flood Drain Improvements L $1,750,000 Water Improvements L $3,330,000 Street Improvements L $2,500,000 Sidewalk Improvements L $2,150,000 Sewer Improvements L $3,100,000 Asbestos Removal L unknown Other Infrastructure Improvements Needs L $441,340 PUBLIC SERVICE NEEDS Senior Services H $1,778,000 Services for Persons with Disabilities M $8,031,660 Youth Services H $28,792,154 Transportation Services H Unknown Substance Abuse Services H $19,923,100 Employment Training H $20,054,000 Crime Awareness L $3,360,054 Fair Housing Activities H $100,000 Tenant/Landlon Counseling L $1,975,000 Child Care Services H $20,200,000 Health Services H $40,400,025 Other Public Service Needs < H $37,065,410 ACCESSIBILITY NEEDS Accessibility Needs: H $22,831,300 HISTORIC PRESERVATION NEEDS Residential Historic Preservation Needs L $6,500,000 Non -Residential Historic Preservation Need L $5,000,000 ECONOMIC DEVELOPMENT NEEDS Commercial -Industrial Rehabilitation L $1,250,000 Commercial -Industrial Infrastructure L $1,000,000 Other Commercial Industrial Improvements L $1,250,000 Micro -Businesses H $500,000 Other -Businesses M $225,000 Technical Assistance M $50,000 FY10 Applicant Guide 13 PRIORITY COMMUNITY DEVELOPMENT NEEDS Priority Need Level High, Medium, Low, No Such Need ESTIMATED 2000 DOLLARS NEEDED TO ADDRESS OTHER COMMUNITY DEVELOPMENT Energy Efficiency Improvements M $48,060,000 Lead -Based Paint Hazards 2160 units x 8,000/per H $17,280,000 Code Enforcement L $4,101,975 PLANNING Planning M $2,069,515 FY10 Applicant Guide 14 Housing and Community Development Commission Unsuccessful or Delayed Projects Policy Adopted by City Council March 2, 2004 (Resolution 04-68) From time to time there may be Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects that do not meet the anticipated schedule for implementation as presented to the Housing and Community Development Commission (HCDC). These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as possible to meet the needs of low -moderate income household for housing, jobs and services within Iowa City. To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby adopted to begin with Fiscal Year '04 projects beginning July' 1, 2003: 1. All CDBG and HOME projects will have entered into a formal agreement with the City of Iowa City for the utilization of federal funds by September 30 each year. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate if extenuating circumstances exist. If extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be established for the completion of the project. If circumstances do not warrant an extension of time, HCDC may recommend the recapture and re -use of the funds to the City Council. 2. All CDBG projects (except applicants for LIHTCs) will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This provides the recipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. All HOME;projects will expend their funds on a timely basis per the applicable HOME regulation. Should' a recipient fail to meet these thresholds, all unexpended CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made'by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. 3. If housing projects are applying for other funds through various state or federal agencies, the recipient must apply for those funds in the first available application period offered. Should a recipient fail to meet this application threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds. 4. Should a recipient be unsuccessful in obtaining the funds listed in the application in the application round immediately following the allocation of local CDBG\HOME funds, and the project will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If the project is unsuccessful in obtaining the required funds listed in the application after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the City of Iowa City will recapture all CDBG/HOME funds. FY10 Applicant Guide 15 Resolution 07-19, Approved 1/9/2007 CDBG AND HOME PROGRAM INVESTMENT POLICIES Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed by the Council Economic Development Committee. The Council Economic Development Committee will make a recommendation to the City Council for each project proposed for funding. Said recommendation shall include the amount of CDBG assistance to be allocated and the terms of investment. Typically, for -profit business projects will receive low -interest loans;whereas, non -profits may be recommended for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be made based on the nature of the project including, but not limited: to, the risk, potential for growth, the number of and quality of jobs created for low -moderate income persons, the ability to repay a loan and the amount of other funding leveraged. Housing Rental Housing. Except as noted below, the interest rate for rental housing activities will be zero percent (0%) for non-profit owned projects and prime rate (determined at the time the CDBG\HOME agreement is executed by the City) minus two points for for -profit owned projects with an amortization period up to thirty (30) years or the period of affordability, whichever is less. Homeownership. Except as noted below, assistance to options as shown herein. 1. A 20-year loan that mu homeowner sells, transfers title, moves or rents the pro first. No interest will accrue and no payments will be requ 2. The homeowner has the option to make monthly ps exceed a 30-year, zero percent (0%) amortized loan,'e assistance is provided. 3. If CDBG\HOME assistance is Community Land Trust project, the CDBG\HOM.E funds w neownership projects will have three repayment e paid in full when the low -moderate income r or the'20-year term expires, whichever occurs to be made by the property owner prior to payoff. nts to the City or its designee in a form not to year amortized loan must start at the time the vided to a certified non-profit organization, for a in the form of a grant. Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant. Exceptions. The City may grant a different interest rate and/or a different repayment option based on the nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of housing provided, the beneficiaries; the amount of other funding leveraged and the location of the site. Public Facilities The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes these funds for "public facilities"' projects as defined in 24 CFR 570.201 (c) that are completed by the City and\or subrecipents. The following policy applies to CDBG assistance provided to non -governmental subrecipients ("governmental' includes only jurisdictions with taxing authority as provided for in Iowa Code). FY10 Applicant Guide 16 Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein, which will be secured by a mortgage or other comparable security instrument. The compliance term of the earned grant will be determined by the formula also provided herein. At the end of the applicable compliance term the lien or other security instrument will be released by the City. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. Earned Grant: Alien against the real property being assisted, or other comparable security, which is repaid only upon transfer of title, rental of the property, or termination of services or occupancy as outlined in the applicable CDBG Agreement. If the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement the mortgage against the property, orother security instrument, will be released by the City following the completion of the compliance period that begins on the date of execution of the mortgage or security instrument. Earned Grant Formula: The total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year for a "public facility" project divided by $3,600 equals the number of CDBG compliance years for the Earned Grant. (For example: $17, 000 in CDBG assistance divided by $3, 000 would equal a compliance term of 5.67 years or 68 months). If the Earned Grant Formula results in a compliance term of less than one year (12 months) the minimum compliance term shall be one year (12 months) and if the Earned Grant Formula results in a compliance term of more than ninety-nine (99) years the maximum compliance term shall be ninety-nine (99) years. Public Service Public Service projects as defined in 24 C grant with a term of not less than one year. ).201 (e) shall receive CDBG assistance in the form of a FY10 Applicant Guide 17 EVALUATION CRITERIA HOUSING PROJECTS This ranking sheet will be used as a guide to assist the Housing and Community Development Commission (HCDC) in the FY10 allocation process. HCDC members will rank each project according to the questions\criteria shown below. I. Need\Priority (maximum 20 total points) Meets identified need in CITY STEPS? Yes No If yes: 1. What priority level in CITY STEPS? (High=10, Medium=6, Low=3 points) 2. Has the applicant documented the ability of the project to meet this need? (Yes= 10, No= 0) SUB -TOTAL II. Leveraging Resources/Budget (maximum 20 points) Project budget is justified? (Costs are documented\reasonable) Yes No If yes: 1. Project leverages human resources? [Volunteers, etc.] (Yes= 7, No= 0) 2. Project leverages private financial resources? [Including ;in -kind] (0-8 points) 0 to 25 % Private Funds (0-2 points) 26 to 50% Private Funds (3-4 points) 51 % to 75 % Private Funds (5-6 points) 76% to 99% Private Funds (7-8 points) 3. Has applicant documented efforts to secure other funding? (Yes= 5, No= 0) SUB -TOTAL 111. Feasibility (maximum 20 pal): 1. The level of public subsidy is warranted? [Private\other funds nofavailable?] (Yes= 10, No= 0) 2. The project will be completed within the required time period? (Yes= 5, No= 0) 3. Project utilizes community partnerships? (Yes= 5, No= 0) SUB -TOTAL IV. Impact\Benefit (maximum 30 paints) 1. Primarily targets law -income persons? (0-30%=10, 31-50%=6, 51-60%=4 points, 61-80%=1) 2. Project produces adequate benefits to the community related to cost? (Yes= 5, No= 0) 3. Demonstrates innovative solution to problem? (Yes= 5, No= 0) 4. Project pays full property taxes (5) or a payment in lieu of/reduced taxes (3)? (Yes= 5, 3 No= 0) 5. Project is located in an area encouraged by City Council as identified on the FY09 Location Map? (Yes= 5, No= 0) SUB -TOTAL Applicant can maintain regulatory compliance throughout the project, including the affordability period? Yes No If yes: 1. Applicant has strong financial skills? 2. Applicant has the administrative capacity to complete this project? 3. Applicant attended a FY10 CDBG/HOME Applicant Workshop? PROJECT NAME: PROPOSED ALLOCATION: $ (Maximum amount of points — 100, Projects under 60 points receive $0) (Yes= 4, No= 0) (Yes= 4, No= 0) (Yes= 2, No= 0) SUB -TOTAL GRAND TOTAL FY10 Applicant Guide 18 EVALUATION CRITERIA PUBLIC FACILITY, PLANNING & OTHER PROJECTS This evaluation sheet will be used as a guide to assist the Housing and Community Development Commission (HCDC) in the FY10 allocation process. HCDC members will evaluate each project according to the questions\criteria shown below. I. Need\Priority (15 Points) Meets identified need in CITY STEPS? Yes No — If yes: At what priority level in CITY STEPS? (High 10, Medium 6, Has applicant documented the ability of the project to addri II. Resources & Feasibility (16 Points) Project budget is justified? (Costs are docu If yes: Program leverages other financial resources? 0 to 25 % Other Funds (1) 26, % tc 51 % to 75 % Other Funds (3) . 76 fo tt Applicant has documented efforts to secure c Project will be completed by the end of the fit Project leverages human resources (volunte( III. Impact\Benefit (20 Does the project help pers If yes: Primarily targets low-income Project utilizes community p; Project'has a measurable' irr Produces adequate benefits Demonstrates innovative sol Applicant can ns Other year, (Yes 5, No 0) 19? (Yes `3,'No 0) etc.)-( (yes z, NOV) :iency? Yes No sons? (0-30% (6), !31-50% (4), 51-80% (2)) srships to further project's goals? (Yes 5, No 0) .t in the community? (Yes 3, No 0) he community related to its cost? (Yes 3, No 0) n to problem? (Yes 3, No 0) compliance? Yes No If yes: Applicant has strong financial skills and board commitment? (Yes 4, No 0) Applicant has the administrative capacity to complete the project? (Yes 4, No 0) Applicant attended a FY10 CDBG/HOME Applicant Workshop? (Yes 2, No 0) PROJECT NAME: PROPOSED ALLOCATION: GRAND TOTAL (Request: $ ) (Maximum Amount of Points - 60) FY10 Applicant Guide 19 EVALUATION CRITERIA PUBLIC SERVICE PROJECTS This evaluation sheet will be used as a guide to assist the Housing and Community Development Commission (HCDC) in the FY10 allocation process. HCDC members will evaluate each project according to the questions\criteria shown below. I. Need\Priority (15 points) Meets identified need in CITY STEPS? Yes No If yes: At what priority level in CITY STEPS? (High 10, Medium 6, Low 3) Has applicant documented the ability of the project to address this need? (Yes 5, No 0) II. Resources & Feasibility (15 points) Project budget is justified? (Costs are documenfedtreasonable)Yes No Project will proceed and all funds expended by 6/30/10? Yes; —No If yes to both questions: Program leverages other financial resources? 0 to 25% Other Funds (1) 26% to 50% Other Funds (2) 51 % to 75% Other Funds (3) 76% to 99% Other Funds (5) Applicant has docume Project will be sustain( Project leverages hurt Does the If yes: Primarily t Project uti Project or Produces ,oject help p d efforts to .secure other funding? (Yes $, ;No 0) after CDBG funding ends? (Yes 3, No 0) resources (volunteers, etc.)? (Yes 2, No 0) Writs ersons gain self-sufficiency? Yes No irgets low-income persons? (0-30% (6), 31-50% (4), 51-80% (2)) izes community partnerships to further project's goals? (Yes 5, No 0) service has a measurable impact in the community? (Yes 3, No 0) adequate benefits to the community related to its cost? (Yes 3, No 0) rtes innovative solution to problem? (Yes 3, No 0) 1 Applicant can maintain regulatory compliance? Yes No If yes: Applicant has strong financial skills and board commitment? (Yes 5, No 0) Applicant has the administrative capacity to complete the project? (Yes 3, No 0) Applicant attended the FY10 CDBG/HOME Applicant Workshop? (Yes 2, No 0) PROJECT NAME: PROPOSED ALLOCATION: (Request: $ ) GRAND TOTAL (Maximum Amount of Points — 60) FY10 Applicant Guide 20 Housing Application for FY2010 CDBG/HOME funds Prior to submitting your FY10 CDBG/HOME Application, please m following: ■ Complete Application. Should you have any questions while c� application contact Community Development staff at 319.356. steve-longOVowa-city, org. ■ Sign the application in blue ink. ■ Submit the original application to the City of Io% Department. The application may not be longer the 20-year proforma), must by typed (10point sided. ■ ■ � r CITY OF IOWA CITY ke sure to do the ,ting the or by email at , Community. Development .3 pages (17 pages including r larger), and must be single Rental housing projects MIDST complete and submit the proforma (excel format) provided by the City with this application Send your ap e.g., Federal sta moed_ by .a or registered mail; overnight delivery service i person and have the application date/time city Development representative. Please remember that only one project proposal may be submitted on each application form. Please use separate application forms for each project proposal. Housing Project Name: Type of Project (check one): 0 Homeownership 0 Rental 0 Tenant Based Rent Asst. 0 Rehabilitation 1. Lead Applicant Name: _ Signature (please use blue ink): Applicant Address: Contact Person: Title: Phone Nu Fax Numt E-mail Adi Federal T� 2. Secondary Signature' Applicant Contact PE Title: Phone Nur Fax Numb( E-mail Address: 3. Type of Applicant (check one): 0 Community Housing Development Organization 0 Private for -profit, individual or partnership applicant 0 Private non-profit organization 0 Public Organization Housing 1 FY10 CDBG/HOME Funding Request 4. Amount of Funds Requested: $ 5. Did you attend the Applicant Workshop? NO YES - Please indicate date attended: 012/17/08 or 01/08/09 6. Provide a brief description of the proposed project & complete the table below. Total Number of Units Pro osed: Type of Units: Number of Units: Single Room Occupancv 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms information from CITY STEPS, the Iowa City Metro Area Affordable by Mullin & Lonergan Associates, and/or other market studies that in Iowa City, and how it will fill a gap in the City's housing market. Housing 2 FY10 CDBG/HOME Funding Request 8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS 2006-2010, Section IV. Strategic Plan. Priority Need 9. Please provide the requested loan terms and affordability period: Priority Need Level (High, Medium or Low) Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $ Requested* Housing 3 FYI CDBG/HOME Funding Request 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type of Funding Funds: Amount Rate Amortization Term Committed? Iowa City CDBG or HOME $ OYes ONO Funding (public) State of Iowa HOME or CDBG $ OYes ONO (public) IFA — Low Income Housing $ OYes ONo Tax Credits (public) Bank Loan (private) $ OYes ONo Volunteer Labor and/or In- $ OYes ONo kind Donations (private) Applicant Contribution of $ 0Yes; ONO Equity (private) Other Public Resources (please list) $ OYes ONO Other Private Resources (please list) $ OYes ONO TOTAL $ 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ LandAcquisition $ Site Improvements $ Construction ,' $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $ Housing 4 FYI CDBG/HOME Funding Request 11 13 Amount of Private Funds Amount of Public Funds Total Project Funding Number of bedrooms Total public cost per bedroom Total Cost Per Unit If volunteers are used please describe how these volunteers estimate the amount of volunteer time and value dedicated;; Unskilled labor Skilled labor ( ) Skilled labor ( ) Skilled labor ( ) $ (a) $ (b) $ (c) a + b (d) $ (e) b _ d $ (f) c - # Units x $10 per hour = hours x $_ per hours x $ per hours x $ per Total finciude in 1i proposed activity and hour = $ hour = $ hour = $ Does the proposed project pay full property taxes? 0 Yes 0 No If YES, what is the estimated value of taxes generated from this Project? $ If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? DYes 0No If yes, what is the percent of full taxes paid? 1 and amount paid is $ 14. If partial funds are awarded, will the project/program continue? 0 Yes If yes, at what level? O No Housing 5 FY10 CDBG/HOME Funding Request 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Local HOME funds requested: $ x .25 = $ Local Match 16. Briefly outline the proposed timetable for the col (include other project factors such as rezoning, c applicant plans to apply for funds not committed application. Please Note: If funded, this sch, use of CDBG\HOME funding. Date: Description of ,Act July 1, 2009 atld expenditurd of the funding being requested n schedule,'or:application(s) for other funding). If >ject yet, include the anticipated date for I be used for any project agreement for the of City Fiscal Year and Project Start Date Housing 6 FY10 CDBG/HOME Funding Request 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). 18. To help promote the efficient use of federal, state and local fu long-term (in excess of CDBG\HOME program requirements) ( project will provide for affordable housing at rental rates or pe lower than those in the existing market. 19. An objective of the City of Iowa City all income levels. Please describe tl moderate income households in the within the neighborhood. descri price for the project will maintain and, show how the upied housing units nprehensive Plan is to promote a diversity of housing types and mix of irget population this project is to serve, the current level of low- isus Tract\Block Group and how the project will promote diversity Housing 7 FY10 CDBG/HOME Funding Request 20. On the map provided, please show the location of the proposed project. 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG\HOME Agreement). Number between 0 - 30% median income households (a) Number between 31— 50% median income households (b) Number between 51 — 60% median income households (c) Number between 61 - 80% median income households (d) Number between 80 - 100% median income households (e) Number over 100% median income households (f) Total households(g) Percent LMI (a+b+c+d) _ g 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be, rehabilitated, number of households assisted, number of units constructed, etc.) Objective: O Suitable living environment O Decent affordable housing O Creating economic opportunities Outcome: O Availability/accessibility O Affordability O Sustainability Output Indicator: O Persons Households O Housing units 23. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds'''Recv'd Budgeted Amount Amount Expended (as of 12/31108) Date All Units Completed FY06 (July 2005 — June 2006) $ $ FY07 (July 2006 - June 2007) $ $ FY08 (July 2007 - June 2008) $ $ FY09 (July 2008 - June 2009)* $ $ *Six months remaining in FY09 at time of this application, Housing 8 FY10 CDBG/HOME Funding Request 24. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. 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Please remember that only one project proposal may be submitted on each application form. Please use separate application forms for each project proposal. Public Facility, Planning & Other Projects 1. Name of Project: 2. Total Amount of CDBG Funds Requested: $ _ 3. Name and address of applicant/organization: Signature (please use blue ink): 4. Contact Person: Phone Number: Fax Number: Email Address: 5. Location of proposed project: 6. Did you attend the Applicant Workshop? O YES - Please indicate date attended: C312/17/08 or 01/08/09 7. Brief summary of the proposed project (please limit response to a paragraph). 8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS 2006-2010, Section IV. Strategic Plan. Priority Need Priority Need Level (High, Medium or Low) Public Facility, Planning & Other Projects 1 FY10 CDBG/HOME Funding Request 9. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities. Public Facility, Planning & Other Projects 2 FY10 CDBG/HOME Funding Request 10. Please provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also, budget for the other items under Budget Considerations in the FY09 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. PLEASE NOTE: The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds Type Status c Y s £ Please place an 'X"in the box that applies. $ $ $ $ $ $ Volunteer Contribution (Total from Quest #1 $ Total $ $ Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person $ (a) (b) (c) (a + b) (d) (see question 14) (e) (c - d) Public Facility, Planning & Other Projects 3 FY10 CDBG/HOME Funding Request Total CDBG Cost Per Person $ (f)(b-d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ 12. Does the proposed project pay full If yes, what is the estimated value of taxes If property taxes are not paid, does the pr OYes ONo If yes, what is the pera 13. Briefly outline the proposed timeta (include other project factors such Please Note: If funded; Wis so Oyes _[3No ►sed project pay'a Payment In Lieu of Taxes or a reduced tax rate? of full taxes paid? % and amount paid is $ commitment and expenditure of the funding being requested construction schedule, or application(s) for other funding). be used for any project agreement for the use of CDBG I Year and Project Start Date Public Facility, Planning & Other Projects 4 FY10 CDBG/HOME Funding Request 14. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note; If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement), Number between 0 - 30% median income persons (a) Number between 31 - 50% median income persons (b) Number between 51 - 80% median income persons (c) Number between 80 - 100% median income persons.;(d) Number over 100% median income persons (e) Total persons (f) Percent LMI (a + b + c) = f Percent Iowa City Residents 15. Please select one main objective, outcome,: and output indicator for the proposed project (see applicant guide). Second, provide specific project indoors In the narrative (I'e.�number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: O Suitable living environment Cli Decent affordable housing O Creating economic opportunities Outcome: O Availability/accessibility O Affordability O Sustainability Output Indicator: O Persons i 3 Households 0 Housing units 16. On the attached map, indicate the location of the proposed project. Public Facility, Planning & Other Projects 5 FY10 CDBG/HOME Funding Request 17. Please list amount of CDBG funds received within the last three City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 12/31/08) Date Project Completed FY07 (July 2006 - June 2007) FY08 (July 2007 - June 2008) FY09 (July 2008 - June 2009) 18. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? OYes ONo If "No" or the matter is currently in litigation please give the name of the case and explain the basis of the case. Public Facility, Planning & Other Projects 6 FY10 CDBG/HOME Funding Request 19. If the applicant has not received CDBG funds in the last three years, please provide evidence of your organization's capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. Public Facility, Planning & Other Projects 7 FY10 CDBG/HOME Funding Request � r Public Service Projects (Operations) ��' ..�,.� Application for FY2010 CDBG/HOME funds CITY OF IOWA CITY Prior to submitting your FY10 CDBG/HOME Application, please make sure to do the following: ■ Complete Application. Should you have any questions while completing the application contact Community Development staff at 319.356.5230 or by email at steve-long@iowa-city.org. ■ Sign the application in blue ink. ■ Submit the original application to Department. The application may point font or larger), and must be ■ Submit one copy of your not included in the 10-pz ■ Send your application by e.g., Federal Express or stamped by,a Planning 8 II age 1ximu ity of Iowa City, Community Development )e longer than 10 pages, must by typed (10 le sided. . y budget (summary). The budget summary is or registered mail; overnight delivery service person and have the application date/time city Development representative. Please remember that only one project proposal may be submitted on each application form. Please use separate application forms for each project proposal. Public Service Projects (Operations) 1. Name of program for which funds are being requested: 2. Total Amount of CDBG Funds Requested: $ 3. Name and address of applicant/organization: 4. Signature (please use blue ink): Contact Person: Phone Number: Fax Number: Email Address: 5. Indicate your organization's corporate status and number of Status: O Non-profit O For -profit in the Iowa City community. Public Service Projects (Operations) 1 FY10 CDBG/HOME Funding Request 14 The objective of the CITY STEPS Plan is to promote a continuum of care within the community that includes jobs, housing and services for low -moderate income persons. Tell us (a) why this project is needed, (b) how it fills a gap in the City's continuum of care or partners with other services and (c) how it addresses the goals cited in the CITY STEPS Plan. Include information from studies\research or other supporting documentation, where available. Public Service Projects (Operations) 2 FY10 CDBG/HOME Funding Request 9. Provide a budget breakdown for your specific program or expense. The budget breakdown should include ONLY those costs directly related to the program or expense. For example, if the project is the addition of one staff person, the budget should include only the estimated cost of and resources available for that position. Alternatively, if the project is the implementation of a specific service program, provide the total estimated costs of and resources available for the project, broken out by general categories such as salaries, materials, office expense, marketing, etc. (Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources.) If other non-CDBG resources are used to fund the project/expense, please list the sources, [state if the funds are in -kind or cash,] and check if the funds are anticipated or already In -hand (committed). If anticipated, indicate the date the funding will be available if awarded. Document- Costs Whenever Possible. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds Type Status V C U1 U Please place an Win the box that applies: Volunteer Contribution (Total from Question #10 $ Total 1 $ $ Public Service Projects (Operations) 3 FY10 CDBG/HOME Funding Request 10. If volunteers are used, please describe how these volunteers are utilized for the proposed activity. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ 11. All public service projects are required to expend their of the fiscal year (June 30, 2009). Will you be able to 12. Please indicate the population to be served by the propose in the Applicant Guide. If you are requesting money for a s salary), indicate the population served by your agency as a funded, the information In this�table will be used as Number between 0 - 30% median income Number between 31 -':50% median income Number between 51 - 80% median Income Number between 80 - 100% median income" Number over 100% median income Percent h Please describe the basis or met[ last year's reports, etc.) Total Percent LMI va City Residents Total Is rd and complete the proposed is requirement? MYes by the end i according to the income categories shown ministrative expense (e.g., a staff member's Please Note; If this application is targeting for the CDBGAgreement). persons (a) persons (b) persons (c) persons (d) persons (e) persons (f) (a+b+c)+f 9/0 used to estimate the number of clients to be served (i.e. survey, Public Service Projects (Operations) 4 FY10 CDBG/HOME Funding Request 13. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e., number of households assisted, number of persons assisted, etc.) Objective: O Suitable living environment O Decent affordable housing O Creating economic opportunities Outcome: O Availability/accessibility O Affordability O Sustainability Output Indicator: O Persons O Households CI Housing units 14. In the last five years, has your agency received a CDBG award of whirl due to non -expenditure of funds? If so, please explain. all or a portion has reverted to the City 15. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? OYes ONo If "No" or the matter is currently in litigation please give the name of the case and explain the basis of the case. 16. If the applicant has not receivedliCDBG funds in the last three years, please provide evidence of your organization's capacity, financialskills, commitment and/or experience to implement the proposed program or service within the established timetable and budget. Public Service Projects (Operations) 6 FY10 CDBG/HOME Funding Request Public Service Projects (Operations) 6 FY10 CDBG/HOME Funding Request CITY STEPS 2008 ANNUAL REVIEW PUBLIC MEETING Local Homeless Coordinating Board November 12, 2008 Approximately 25 persons in attendance City staff: Tracy Hightshoe, Linda Severson, Steve Rackis, Mary Abboud Housing & Community Development Commission (HCDC): Andy Douglas, Holly Hart, Michael McKay Comments Received: Housing Affordable housing that does not rely on a voucher is a critical need in Iowa City/Coralville. The price of housing is a huge barrier for low income households. If you don't have a voucher, not much is available. Pheasant Ridge is the only project based subsidized rental housing. There are approximately 1,000 households on the waiting list for Section 8 with a 12-14 mo. waiting period. Housing for independent persons under 18 is a large barrier, even if the household obtains a voucher. Legal Aid can assist landlords understand Iowa law that allows independent minors secure necessary living arrangements (rent, utilities, etc.) however it is difficult. Comment to concentrate on affordable rental as downpayment assistance for homeownership does not help those who can't afford basic housing. Homeownership is not practical for some folks who are not ready to own homes. Living in a secure, decent affordable rental unit makes more sense than living in a house where the owner can't afford to make any repairs or fund basic maintenance. Comment to concentrate on low cost housing people can afford. Concern that both affordable owner -occupied and rental housing is needed, but the City must strike a balance. As Section 8 tenants become eligible for homeownership, such as a Habitat home, the voucher is able to be used for another low income family in need. Need to preserve and sustain owner -occupied housing for low income residents (elderly, disabled, or low-income). Comment on the large federal push for homeownership in the last 5-7 years to place low income families in higher income areas. There is this argument that the person would be "transformed" by owning their own home. Questioned if this has been studied. Comment that a large investment is required to make a rental unit affordable over several years, however owner -occupied may be "cheaper" and have immediate results. Request to separate the category owner -occupied housing into housing rehabilitation and all other when reporting the dollar amounts. Public Facilities Need for additional detox beds at MECCA or area providers. There are only 6 beds available unless the client is wiling to go to the University's psychiatric unit. Many of the occupied beds at MECCA are court ordered individuals, which limits the resource for voluntary placements. Many refuse to go to the University as they believe they have a drinking problem, not mental health problems that require a psychiatric hospital and refuse treatment. Services Employment Training is a huge need especially for those who are not disabled or with some other qualifier such as dependents (children). Many persons need job coaching or training on basic employment skills (regular, on time attendance, receive instructions from supervisors, etc.) to not only obtain a job, but to keep it. Many clients inquire at Shelter House what the eligibility criteria for STAR are in order to figure out how they can be eligible for the employment training or day care benefits of the program. Child Care continues to be essential. Few providers accept Promise Job or Title XX payment. Once a client finds one, there is often a 2-3 month waiting list. Recently, Kindercampus closed creating even more difficulty to find daycare that accepts these forms of assistance. Teen parents also continue to have difficulty finding daycare that accepts state childcare payments. The Family Investment Agreement under the Federal Family Investment Program (FIP) depends on multiple agencies. They do not always coordinate well together and it is extremely difficult for a client to make it work (site locations, bus schedules, day care, etc.) Transportation issues remain a significant barrier for low income residents. The buses stop running between 9 and 10 pm in Iowa City/Coralville and don't run on Sundays. There are gaps in the services for many low income employees. IC Transit will be reviewing routes in the next 9-12 months and residents are encouraged to provide input. 2 A ho NATIONAL HOUSING TRUST FUND September 22, 2008 Dear Friends, Over the years of the National Housing Trust Fund campaign, the number of endorsements for the campaign grew to over 5,700, including you. Thanks to you, we achieved a remarkable success this summer when legislation to establish a National Housing Trust Fund was signed into law. I can tell you with absolute certainty that the enormous grass -roots backing of this campaign was the key to our success. Each time you were asked, you made certain that your Representative and Senators in Washington knew where you stood. Eventually enough of them listened to move the campaign over the finish line. Please accept the enclosed certificate as a modest, but heartfelt, expression of my deepest appreciation for your good work. I must warn you, however, that it too soon to rest on our laurels. Much more work remains. You will have a crucial role to play in the determination of which agency in your state government will administer your National Housing Trust Fund dollars. We must work with HUD to develop the regulations that will govern the program. We must protect against any threats to the National Housing Trust Fund as the debate on the future structure of Fannie Mae and Freddie Mac heats up. And we must make the case for more dedicated sources of revenue to grow the National Housing Trust Fund, so we can reach our goal of 1,500,000 homes in 10 years. We will keep you up-to-date on all new developments. The affordable housing crisis in the United States is a solvable problem. A safe, decent home for everyone in our country is within our reach if we stay focused and work hard. Thank you. Sincerely, Sheila Crowley, President and CEO National Low Income Housing Coalition Page 1 ;�IIGCCCf,CI��: ;i(IGCCC�, - ;i(IGCCC�:(rrl I I rooppow, lillmilm IqMgl OFF or � t i � ``� �;I�� • ���11�%1lli�� 'ii���� i� �i. i � ``� ��I���' ���\II�JIIIi�� yi�'�i% � L; � ��iii�ui�aii�i�`�a�� �i\��I ��,�►��i���i ^ii�it!` ����I �% �\ cCCL:LIIICI�% cClk 10f!