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Hawkeye Area Community Action Plan - Rental Rehabilitation
Project Name: 6roj o.-I Tow. %oMe Reno✓aAim ?1_01)t" Type of Project (check ones 0 Homeownership 0 Rental (Rental and Rental Rehabilitation projects require the completion 1. Lead Applicant Name: Hawkeye Area Signature (please use blue ink): I, C 0 V E �Iousing �. 0 2012 1111 Tenant Based Rent Asst. X Rehabilitation Action Program w vx-"/ & �-:G--- Applicant Address: 1515 Hawk ye Drive, Hiawatha Iowa, 52233 Contact Person: Jane Drapeaux Title: Chief Executive Officer Phone Number:319-393-7811 Fax Number: 319-393-6263 E-mail Address: jdrapequx@hacap.org DUNS Number: 039311399 2. Secondary Applicant applicable): if a : � PP ) Signature (please use blue ink): Applicant Address: Contact Person: Title: Phone Number: Fax Number: E-mail Address: 3. Type of Applicant (check one): X Community Housing Development Organization 0 Private for -profit, individual or partnership applicant 4. Amount of HOME/CDBG Funds Requested: $360,000 CDBG 0 Private non-profit organization 0 Public Organization 30 Housing FY13 CDBG/HOME Funding Request 5. Did you attend the Applicant Workshop? 0 NO X YES - Please indicate date attended: X 12/29/11 or 01/09/12 6. Provide a brief description of the proposed project & complete the table below. Hawkeye Area Community Action Program, Inc. is committed to helping improve the community by providing safe, affordable, and healthy home environments for homeless individuals. HACAP supplies 42 HUD and locally funded transitional housing units for homeless individuals in the Iowa City community. The Broadway Townhomes make up 18 of the units available. HACAP is invested in making the area where the townhomes are located a safe and affordable place to live for all members of the community. Exterior and interior renovations would be completed on all 18 units and well as renovations and improved security features to the common areas. Total Number of Units Proposed: 18 Type of Units: Townhomes Number of Units: 18 Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 18 4+ Bedrooms 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. The HUD and locally sponsored transitional housing units fits numerous high priority needs identified in CITY STEPS. The program serves a high majority of non -student renter households that are at or below 50% AMI, many who are below 30% AMI. All households in the Broadway Townhomes are families; many are single female head of household with young children. Additionally, the townhomes serve homeless families in the Iowa City area. These families receive support services while being housed in the program. These services are required by all households to maintain their housing; this allows them to work on needed self sufficiency goals while remaining housed. HACAP is committed to maintaining transitional housing in the Iowa City area and supplying these families with safe housing and living environments. The condition of the townhomes has deteriorated since HACAP purchased the units in 1996. Renovations are needed to the exterior and interior of the units as well as the common areas outside. By rehabilitating the units and adding additional security features the newly renovated units will bring a new life and improvements to the Broadway area. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015 CITY STEPS Plan. CDBG Rehabilitation of Existing Rental Units High Priority Need Priority Need Level (High, Medium or Low) 31 Housing FY13 CDBG/HOME Funding Request ❑�r 9. Please provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $360,000 0% Grant 15 N/A Requested* *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. 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. Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG or HOME Funding (public) $360,000 0% Grant 15 year OYes ONO State of Iowa HOME or CDBG (public) $ OYes ONO 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) $ OYes ONO Other Private Resources (please list) $ OYes ONO TOTAL $360,000 Housing 32 FY13 CDBG/HOME Funding Requ, 10b. Please provide the uses of funds for the project. A Ad Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $360,000 Construction $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $360,000 Amount of Private Funds $0 (a) Amount of Public Funds $360,000 (b) Total Project Funding $360,000 (c) a + b Number of bedrooms 54 (d) Total public cost per bedroom $6,667 (e) b - d Total Cost Per Unit $20,000 (f) c - # Units loc. What percentage of the proposed budget will be made up of private funds? 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. N/A Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total $ Housing 33 FY13 CDBG/HOME Funding Request 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. HACAP is a non profit organization and does not hold any identity of interest relationships on an organizational or staff level with potential contractors or suppliers. 13. Describe what efforts have been taken to secure private or other public funding. Currently HACAP does not have other resources to commit to the project other then the commitment of staff and their time. HACAP will look into other funding resources but nothing has been applied for or committed at this time. 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. HACAP would like to be considered for CDBG funding only. Local HOME funds requested: x .25 = $ Local Match 15. Briefly outline the proposed timetable for the 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 July 2012 Apply for any necessary permits or other needed documents before renovations Mid July -Early August Begin renovations on exterior of Townhomes Mid Fall 2012 Begin renovations on interior of Townhomes May 2013 Have all renovations completed Housing 34 FY13 CDBG/HOME Funding Request 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). HACAP's goal is to preserve the 18 Broadway Townhomes and the surrounding area as an affordable and safe housing environment for low income individuals and families in the area. Additionally HACAP is committed to keeping the units as federally and locally sponsored transitional housing units for homeless families. The primary target population for the Transitional Housing Program are low-income families with children. Transitional Housing specifically focuses on homeless families at or below 50% Area Median Income or $39,600 for a family of 4, although a vast majority of these households are below 30% AMI. A majority of families entering the program do not have employment income at entry nor are many connected to mainstream benefits. The program targets homeless families that are committed to making a transition from whatever conditions that lead them into homelessness into a situation readying them for permanent housing. Once HACAP has filled the family's immediate need of stable housing other family needs are addressed. These include connecting the family to mainstream resources (Family Investment Program, Social Security Benefits, Food Stamps, etc..) as well as child care and preschool services (Head Start), and educational and employment opportunities. All families in the program have a need for financial literacy classes and assistance developing monthly budgets. The unified strength that all families in the program have is a commitment to becoming more self sufficient and establishing better lives for themselves and their children. All families targeted for the program must work hard toward meeting these goals and having a commitment to exit into a permanent housing situation as soon as possible. This project will allow these families to stay in updated units and feel secure in their housing so they are able to focus on meeting their ultimate goal of obtaining permanent housing. 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. HACAP receives funding from HUD to run the Transitional Housing program in Johnson County. The agency is committed and dedicated to the goal of ending homelessness and providing affordable housing to low income households in the community. HACAP has been running the Transitional Housing program for over 30 years and does not have any plans to end this service to the community. Rental rates for individuals are at or below 30% of household income. As a non profit organization HACAP has the ability to be flexible at times with rental rates of participants, particularly in our HUD funded program, so they have extra income to work on other issues affecting their self-sufficiency. 18. Explain why this project needs and is worthy of the requested public subsidy. All individuals should have the opportunity to access safe and affordable housing as well as a healthy home environment. When purchased in 1996 the Broadway Townhomes were a wonderful opportunity for HACAP to purchase needed affordable 3 bedroom units for the community. Over the past 15 years the area has deteriorated as well as the units. HACAP is very committed to revitalizing the Broadway area and sees the 18 townhomes as a piece in helping the community in attaining that goal. By providing homeless households a well maintained unit internally and externally, individuals are able to be more successful in reaching their self-sufficiency goals. Households learn to take pride and care of a unit and their neighborhood. These qualities are very important for all the families we serve to attain in order to be successful in maintaining long term permanent housing at exit. By renovating the townhomes the households who occupy these units and future households will use the renovations as an opportunity to take pride in the neighborhood. 35 Housing FY13 CDBG/HOME Funding Request 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? Each family that will occupy the newly renovated townhomes will be trained on how to use and maintain any new appliances and other features of the townhomes that have been newly renovated using city CDBG funds. Households will receive notices if areas of the on the interior and exterior of the units are not properly maintained. Family support staff will continue to stress to tenants that properly taking care of their unit for future homeless families is a key part in helping to give back to the community and these skills will help them maintain permanent housing a program exit. HACAP will also continue to do any required upkeep and maintenance on the townhomes to make sure they remain a safe and healthy home environment for the families we serve. 20. If partial funds are awarded, will the project/program continue? XYes 0 No If yes, at what level? HACAP's funding request is the total amount that the agency believes it will take to help maintain the sustainability of these affordable units for many years to come. If full funding is not received HACAP will look at renovating the exterior and security updates of the building as a 1s' priority which could include siding the townhomes, a new roof, new windows and doors, updating security fencing and lighting, and resurfacing the parking lot. HACAP's 2nd priority will be to provide new updates to the interior of the townhomes including new kitchen cabinets and counters, furnaces, and electrical upgrades. 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. The target population that reside in the townhomes are homeless families that HACAP has interviewed and identified as families ready to work on developing self sufficiency and ready to make significant change in their lives. These households are dedicated families and want to build a better future for their families. They are required to meet with family support staff to work on goal planning and attaining self sufficiency and permanent housing. Families are able to take skills they learn though our program and help assist neighbors with their goals as well. This population not only brings diversity to the area through their ethnic and income backgrounds but also supplies a good work ethic and dedication to improving their current situation. 22. On the map provided, please show the location of the proposed project. Housing 36 FY13 CDBG/HOME Funding Request 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). Number of households is the estimate of households that will occupy the 18 Broadway Townhomes in a given year. Benefits of the renovations will be received by all individuals who occupy the units for numerous years. Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 — 60% median income Number between 61 - 80% median income Number between 80 - 100% median income Number over 100% median income Total Percent LMI 24. Does the proposed project pay full property taxes? 0 Yes X No 21 households (a) 4 households (b) households (c) households (d) households (e) households (f) 25 households (g) 100% (a+b+c+d) = g 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 XNo If yes, what is the percent of full taxes paid? % and amount paid is $ 25. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. HACAP believes that providing maintenance and upkeep training to households entry to help keep the townhomes a safe and affordable place to live is an innovation solution to helping keep the Broadway Area a safe and desired neighborhood to raise a family. These skills not only allow to help preserve the units but also allow us to keep maintenance costs down so HACAP limited funding can be used towards other ways to help homeless families in the community. Individuals take pride in an area that looks appealing and is well maintained. HACAP believes these renovations will help to community feel better about itself and the area in which they live. 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.) The receipt of CDBG funds will allow HACAP to maintain decent affordable housing for 18 units, each with 3 bedrooms. The number of households served is not known due to the nature of the program where it is encouraged for people to exit as soon as they feel ready they have met enough goals or their 2 year time frame has ended. HACAP estimates that at least 25 households will be served every year in the by the newly renovated townhomes. 37 Housing FY13 CDBG/HOME Funding Request Objective: 0 Suitable living environment X Decent affordable housing Outcome: 0 Availability/accessibility )(Affordability Output Indicator: 0 Persons OHouseholds 0 Creating economic opportunities 0 Sustainability X Housing units 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 Amount Budgeted Expended Date All Units Amount (as of 12/31/11) Completed FY09 (July 2008 — June 2009) $115,000 $ 115,000 06/30/2008 FY10 (July 2009 - June 2010) $80,000 $80,000 08/31/2009 FY11 (July 2010 - June 2011) $ $ FY12 (July 2011 - June 2012)* $ $ '.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. HACAP has received HOME/CDBG funding in the past three years. 30. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. HACAP oversees programs for low-income individuals and families in 6 counties. The organization is based out of Hiawatha, IA where corporate operations are overseen. This includes the CEO, Deputy Director, CFO, and Regional Housing Director. Front line staff is located in the counties they serve. HACAP's Housing Facilities Coordinator will help oversee the project and follow all procurement procedures in acquiring necessary contractors to complete the work. 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