HomeMy WebLinkAboutCity of Iowa City - Owner Occupied RehabilitationHousing
Project Name: Targeted Neighborhood Improvement Program
(W Type of Project (check one): 0 Homeownership 0 Rental 0 Tenant Based Rent Asst. X Rehabilitation
(Rental and Rental Rehabilitation projects require the completion of a rental housing pro forma)
1. Lead Applicant Name: Iowa City Housing R4
l
Signature (please use blue ink):
f 7
Office
Applicant Address: 410 East Wai gton Street, Iowa City, Iowa 52240
Contact Person: Jeff Vanatter
Title: Housing Rehabilitation Specialist
Phone Number: 319-356-5128
Fax Number: 319-356-5217
E-mail Address: jeff-vanatter@iowa-city.org
DUNS Number: 145 409 996
(6V
2. Secondary Applicant (if applicable):
Signature (please use blue ink):
Applicant Address:
Contact Person:
Title:
Phone Number:
Fax Number:
E-mail Address:
3. Type of Applicant (check one):
0 Community Housing Development Organization
0 Private for -profit, individual or partnership applicant
J A N 2 0 2012
0 Private non-profit organization
X Public Organization
4. Amount of HOME/CDBG Funds Requested: $220,000.00 ($110,000 CDBG, $110,000 HOME)
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Housing FYI CDBG/HOME Funding Request
5. Did you attend the Applicant Workshop? 0 NO
X YES - Please indicate date attended: 0 12/29/11 or X 1/09/12
6. Provide a brief description of the proposed project & complete the table below.
The goal of this proposed project is to provide a combination of low and no interest loans and forgivable loans
to homeowners to make exterior, emergency and comprehensive repairs to their homes in targeted areas of
Iowa City. These areas include the Univer0ty program boundaries, the Towncrest area, and the Grant Wood
area. 50% of each loan would be forgiven if the address is maintained as the owner's primary residence for 5
years or 10 years after the project is complete. The rehabilitation projects will be exterior and emergency
repairs with a $10, 000 maximum per project, funded through CDBG funds. Comprehensive repairs will be
made with HOME funds, with $24,999 being the maximum project amount. HOME -funded rehabilitation
projects require all code items and other safety issues be addressed on the interior and exterior (including all
fences or outbuildings). Since a large portion of this proposal focuses on providing funding for emergency and
exterior repairs, we request that the funds be split evenly between HOME and CDBG ($110, 000 each). Any of
these projects may also be supplemented with existing Iowa City Housing Rehab funds when needed.
Total Number of Units Proposed:
At least 14 units
Type of Units:owner-occu pied
Number of Units: at least 14 units
Single Room Occupancy
Number based on applications
received
Efficiency
Number based on applications
received
1 - Bedroom
Number based on applications
received
2 - Bedroom
Number based on applications
received
3 - Bedroom
Number based on applications
received
4+ Bedrooms
Number based on applications
received
7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable
Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and/or other market studies that
identifies the need for this type of housing in Iowa City) and how it will fill this need in the City's housing
market.
This program will allow homeowners in the targeted areas to make needed repairs to their properties at a
time when the City and other entities are also working towards making improvements to these
neighborhoods. According to CITY STEPS, low -to -moderate -income owners who are cost burdened need
assistance with maintenance and upkeep of their units in order to prevent further deterioration. The biggest
housing problem faced by homeowners is the cost burden of making housing payments and paying for the
upkeep of the property. Weatherization, emergency repairs, and other rehab activities help decrease monthly
utility costs and preserve and maintain the City's affordable housing stock, likely enabling owners to be able
to afford to stay in their homes independently.
8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015
CITY STEPS Plan.
Rehab activities in owner -occupied housing units
Priority Need
Priority Need Level (High, Medium or Low)
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Housing FY13 CDBG/HOME Funding Request
A
A
9. Please provide the requested loan terms and affordability period:
Loan
Affordability
Principal
Interest
Amortization
Period
Yearly
Amount
Rate
(Years)
(Years)
Payment
Terms
$220,000.00
0%
None
5 years
None
Requested*
10 years
* This project is a revolving loan fund. 5096 of loan will be forgiven in 5-10 years (funding source
dependent) if the property is maintained as their primary residence. All remaining funds will be
recaptured at the time of sale or on a monthly basis depending on their ability to pay if they qualify for a
monthly payment. With the requirement to address all code and safety issues and to perform a
comprehensive rehabilitation when performing rehab work with HOME funds, we would request that the
assistance be split in half with $110, 000 in HOME funds and $110, 000 in CDBG funds to enable us to be
able to offer emergency and exterior repair options to the targeted areas.
*Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City
Council may be different than what is requested.
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FYI CDBG/HOME Funding Request
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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 #15, Project Timetable.
This project will be a revolving loan program where liens will be recorded on the properties for the full amount of
the assistance. If the owners maintain the homes as their primary residence for 5 to 10 years, 509,61 of the total
will be forgiven, with the rest being recaptured through monthly payments or at the time when the home is sold.
Funding Source & Type of
Funds:
Funding
Amount
Interest
Rate
Amortization
Term
Committed?
Iowa City CDBG or HOME
Funding (public)
$220,000.00
See
narrative
See narrative
See
narrative
DYes X No
State of Iowa HOME or
CDBG (public)
$
OYes C)No
IFA — Low Income Housing
Tax Credits (public)
$
OYes ONo
Bank Loan (private)
$
OYes ONo
Applicant Contribution of
Equity (private)
$
OYes ONo
Other Public Resources
(please list)
$
0 Yes 0 No
Other Private Resources
(please list)
$
OYes ONo
TOTAL
$220,000.00
10b. Please provide the uses of funds for the project.
Uses of Funds
Amount
Acquisition:
Building Acquisition
$
Land Acquisition
$
Site Improvements
$
Construction/Rehabilitation
$200,000.00
Professional Fees
$
Construction Finance
$
Permanent Finance
$
Developer Fee
$
Reserves
$
Other (please specify):
$
Project delivery
$20,000.00
TOTAL (Must equal TOTAL in 10a.)
$220,000.00
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Housing FY13 CDBG/HOME Funding Request
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14
Amount of Private Funds
Amount of Public Funds
Total Project Funding
Number of bedrooms
Total public cost per bedroom
Total Cost Per Unit
*We do not know which households will be assisted at
this time, so estimates of sizes of homes is unavailable.
$0.00
$220,000.00
$220,000.00
Not known at this time
Not known at this time
Not known at this time
10c. What percentage of the proposed budget will be made up of private funds?
(a)
(b)
(c) a + b
(d)
(e) b _ d
(f) c - #
Units
0 %
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 0 hours x $10 per hour = $ 0
Skilled labor ( 0 ) 0 hours x $ 0 per hour = $ 0
Skilled labor ( 0 ) 0 hours x $ 0 per hour = $ 0
Skilled labor ( 0 ) 0 hours x $ 0 per hour = $ 0
Total 0
12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General
Partner has a financial interest in the construction company, etc.
Not applicable; none exist.
13. Describe what efforts have been taken to secure private or other public funding.
We currently receive $200, 000.00 in general obligation funds annually from the City of Iowa City, as well as,
approximately $200, 000.00 in CDBG and HOME funds to run the existing housing rehabilitation program.
These funds will be used to supplement the funds for this proposed project where needed. We are also
anticipating applying for Federal Home Loan Bank funds in the future to further assist with this proposal and
our current rehabilitation program.
14. 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.
Not applicable. No match provided.
Local HOME funds requested: $ x .25 = $
Local Match
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FYI CDBG/HOME Funding Request
15. Brieflyoutline the proposed timetable for the
p p e commitment and expenditure of the funding being requested
(include other project factors such as rezoning, construction schedule, or application(s) for other funding). If
applicant plans to apply for funds not committed to the project yet, include the anticipated date for
application. Please Note: If funded, this schedule will be used for any project agreement for the
use of CDBG\HOME funding.
Date: Description of Activity:
July 1, 2012 Beginning of City Fiscal Year and Project Start Date
June 2012 Issue press releases and raise awareness of program
July 2012 June 2013 Intake of applications and completion of rehab Proiects
Spring 2013 Apply for Fed. Home Loan Bank funds & additional Iowa City entitlement funds_
June 2013 Completion of proiect
16. 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).
The goal of this project is to provide safe affordable housing for low -to -moderate income (below 80% LMI)
homeowners. This will be done by providing funding to make repairs to properties that homeowners could not
otherwise afford because of the cost burden. This will in turn make the home safer and more affordable for
the current owners and will preserve the affordable housing stock in Iowa City.
17. To help promote the efficient use of federal, state and local funding please describe how the project will maintain
long-term (in excess of CDBG\HOME program requirements) or permanent affordability; and, show how the
project will provide for affordable housing at rental rates or purchase price for owner -occupied housing units
lower than those in the existing market.
This proposed project wlll help to maintain long term affordability in Iowa City in by providing safe and more
efficient homes for low-income owners. Repairing minor problems now will keep the problems from becoming
more extensive and expensive in the future, making these homes more affordable to maintain now and into the
future. Because of this, the existing affordable housing stock is preserved and kept more affordable.
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FY13 CDBG/HOME Funding Request
18. Explain why this project needs and is worthy of the requested public subsidy.
According to CITY STEPS, over 37910 of homeowners face housing problems, with the number one problem being
cost burden. If the burden of the high costs of repairs is removed and the homes are made more efficient, the
monthly costs of maintaining and owning a home are lessened. With the costs of owning a home lowered, other
important needs can be addressed by the families (healthcare, clothing, transportation, etc.) without having to
worry about their home costs. With at least 50% of this money being recaptured (in some cases up to 100%
may be recaptured), it will be able to be used again to assist low -to -moderate homeowners.
19. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further
subsidy in the future?
The work will be done by certified, licensed and insured contractors. The materials used will be of good quality
and all work will be inspected and permits will be applied for when required. Construction management will be
performed by housing rehab staff that includes work specifications, cost analysis and inspections. All financial
management of the project is also provided by housing rehab staff to make sure that all work is completed up
to required standards. If work is done by acceptable standards using quality materials, all items should last to
their full life expectancies without needing further assistance.
20. If partial funds are awarded, will the project/program continue? X Yes 0 No
If yes, at what level?
If we receive CDBG funds, we can do as many exterior/emergency repairs as we can with a $10, 000 cap per
project. The same can be said if we receive HOME funds, in that we will do as many projects as we can with
a $24, 999 cap per project. We may be able to lower the project caps on the projects depending on the
funding amount and the type of projects that we undertake.
Reminder: Rental housing (including rental rehabilitation) projects
MUST complete and submit the pro forma (excel format)
provided by the City with this application.
Rental housing applications submitted without the City's pro forma will
not be considered.
21. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of
all income levels. Please describe the target population this project is to serve and how the project will
promote diversity within the neighborhood.
This project is targeted to assist owner -occupied single family households in targeted areas of Iowa City. All
households will be below 80 % of LMI. This program will help to maintain the existing diversity in the
neighborhoods by easing the cost burden on homeowners to stay in their homes and will give them incentives
to stay in their homes. We feel that targeted neighborhood revitalization strategies play critical roles in
equalizing neighborhood quality and ending segregation.
22. On the map provided, please show the location of the proposed project.
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FY13 CDBG/HOME Funding Request
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23. 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).
* Please note that numbers below are estimates based on the last 12 months of our existing housing
rehabilitation program. We will only be able to assist those that apply to the program, and at this time we do
not know the income levels of the applicants. Applicants over S0910 LMI will not be assisted. We plan on
assisting at least 14 households, with the possibility existing that we may be able to assist more depending on
the costs of the projects. Because of this we will provide numbers assuming 14 households will be assisted.
Number between 0 - 30% median income _2 households (a)
Number between 31 — 50% median income 6 households (b)
Number between 51 — 60% median income _2 households (c)
Number between 61 - 80% median income _4 households (d)
Number between 80 - 100% median income 0 households (e)
Number over 10011/o median income _0 households (f)
Total _14 households (g)
Percent LMI _100% (a+b+c+d) = g
24. Does the proposed project pay full property taxes? X Yes 0 No
If YES, what is the estimated value of taxes generated from this Project? $24,000
If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate?
X Yes 0No If yes, what is the percent of full taxes paid? 100 % and amount paid is $24,000
25. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so,
please explain.
This proposed program represents an innovative solution to help assist homeowners by easing the cost burdens
of making costly repairs. This can be done by offering a combination of forgivable, conditional occupancy, low -
interest and no -interest loans that are not currently offered by banks or other lending institutions to
homeowners. By targeting this assistance to specific areas of town we are hoping to make as big of an impact as
possible.
26. 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:
Outcome:
Output Indicator:
0 Suitable living environment X Decent affordable housing 0 Creating economic opportunities
0 Availability/accessibility
X Affordability
0 Households
0 Sustainability
X Housing units
We are hoping to obtain CDBG and HOME funding to provide assistance to enable owners to have safe
affordable housing in Iowa City. With the HOME funding we anticipate assisting at least 4
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Housing FY13 CDBG/HOME Funding Request
units with a cap of $24, 999 per project. If the projects do not spend the full amount we will assist more with this
funding while also offering to supplement this funding with additional funds from the existing Housing
Rehabilitation Program. With CDBG funds we are hoping to assist at least 10 units with emergency and exterior
repairs. We will also assist more than 10 units if the project totals come in under the caps that we have put in
place. We will also supplement these projects with other housing rehab funds where needed. CDBG funds allow
. for these smaller repairs, where HOME funding does not, so the flexibility to offer these smaller programs is
needed.
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27. 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 12/31/11)
Date All Units
Completed
FY09 (July 2008 — June 2009)
$157,060.50
$157,060.50
6/30/09
FY10 (July 2009 - June 2010)
$230,000.00
$230,000.00
6/30/10
FY11 (July 2010 - June 2011)
$282,024.00
$282,024.00
6/30/11
FY12 (July 2011 - June 2012)*
$252,024.00
$166,559.46
Not yet
completed
*Six months remaining in FY12 at time of this application.
28. 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? X 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.
29. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your
organization's administrative capacity, financial skills, commitment and/or experience to undertake and
complete the proposed project within the established timetable and budget.
The City of Iowa City has received funding for over 30 years and we have staff in place that currently runs a
housing rehab program. If we receive this funding, this proposed program will be a new program offered by
the rehab office, and will be administered by our current staff in much the same way as all existing programs.
30. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project.
The Iowa City Housing Rehabilitation Office has two full-time rehabilitation specialists and a part-time program
assistant that administer the assorted rehabilitation programs. The rehab specialists conduct all inspections,
produce project specifications and work write-ups, conduct loan closings and manage the day-to-day business of
the various projects. The program assistant pen`orms application intake, conducts income verifications and
creates and manages all loan documents. The Rehabilitation Program is monitored by the City of Iowa City
Community Development Coordinator.
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FY13 CDBG/HOME Funding Request
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Niles
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