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HomeMy WebLinkAboutIowa Valley Habitat for Humanity - Homeownership's 13V r I� 0 ISO Project Name: Single Family Ownership Type of Project (check one): XX Homeownership 0 Rental _ _QTenant Based Rent Asst. 0 Rehabilitation (Rental and Rental Rehabilitation projects require the completion of a rental housing pro forma) 1. Lead Applicant Name: Iowa Valley Habitat for Humanity, Signature (please use blue ink): rn Applicant Address: 2401 Scott BI Contact Person: Mark Patton Title: Executive Director Phone Number: 319-337-8949 Fax Number: 319-354-3527 E-mail Address: mark@iowavalleyhabitat.org DUNS Number: 123204880 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 4. Amount of HOME/CDBG Funds Requested: $120,000 XX Private non-profit organization 0 Public Organization 5. Did you attend the Applicant Workshop? 0 NO XX YES - Please indicate date attended: 0 12/29/11 or XX1/09/12 72 Housing FYI CDBG/HOME Funding Request 6. Provide a brief description of the proposed project & complete the table below. 11 Total Number of Units Proposed: Type of Units: single family,new Number of Units: 4 Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms 4 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. In the 2007 study, those earning under 80% of area median income were heavily cost burdened, no matter whether they were renting or owning. And while the owner occupied housing was identified as a HIGH priority in the preliminary analysis, only homeownership assistance ranks medium, and rehab or construction of new units ranks low on the scoring sheet. However, the scoring does not take into account the private, 0% interest financing Habitat brings to the table which allows for low income, qualified families to own their own home. This may be an oversight when the criteria was established, but it does skew the scoring against low income home ownership. In addition, these new homes will pay 100% full Property taxes, adding to the local tax base at a time when commercial property taxes are dropping. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015 CW CITY STEPS Plan. Home ownership assistance Priority Need Medium Priority Need Level (High, Medium or Low) 9. Please provide the requested loan terms and affordability period: $30,000 (4 loans each), o% loan, due and payable upon future sale of the home Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $120,000 (total) 0% loan due upon Requested* future sale date *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. 73 Housing FY13 CDBG/HOME Funding Request A • 10b. A 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 Funding Interest Funds: Amount Rate Amortization Term Committed? Iowa City CDBG or HOME $120,000 0% OYes XXNo Funding (public) State of Iowa HOME or $ OYes ONo CDBG (public) IFA — Low Income Housing $ OYes ONo Tax Credits (public) Bank Loan (private) $ DYes ONo Applicant Contribution of $120,000 XXYes ONo Equity (private) Other Public Resources (please list) Thrivent Financial for Luth 75,000 grant XX Yes ONo Other Private Resources (please list) Tippie School of Business, $150,000 grants XX Yes ONo Women Build TOTAL $465,000 Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $120,000 Site Improvements $ Construction $315,000 Professional Fees $15,000 Construction Finance $ Permanent Finance $ Developer Fee $15,000 Reserves $ Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $465,000 Housing 74 FY13 CDBG/HOME Funding Request N Amount of Private Funds Amount of Public Funds Total Project Funding Number of bedrooms Total public cost per bedroom Total Cost Per Unit $345,000 $120,000 $465,000 16 $7,500_ $29,060, 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 75% 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 1600 hours x $10 per hour = $16,000 Skilled labor (plumber ) 60_ hours x $60 per hour = $3 600 Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total $19, 600 12. Please identify any identity of interest (I0I) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. Iowa Valley Habitat is both the builder and the banker for all Habitat homes. 13. Describe what efforts have been taken to secure private or other public funding. Iowa Valley Habitat raises +50% of the funding for all Habitat homes from private sources as well as recruiting more than 400 hours of volunteer labor for every home built. 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. Local HOME funds requested: $120,000 x .25 = $30,000 LocalMatch See above for $19,600 worth of volunteer donations. In addition, we get a new refrigerator and stove from Whirlpool, Valspar paint, DOW insulation board, Square D breaker boxes, Tomlison/Cannon gutters, and Yale locks donated for each new home (estimated value of $5000 per home). We also donate significant professional staff time (est. value of $$8,000 per home) which is paid for using local fund raising. We also raise more than $50,000 each from Thrivent Financial for Lutherans and Tippie School of Business each year. 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 Housing 75 FY13 CDBG/HOME Funding Request 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 September, 2012 Purchase 4 lots Summer. fall 2013 Build 1-2 homes Summer, fall 2014 Build 1-2 homes Summer, fall 2015 Build any remaining homes 16. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable 0 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). All Habitat homes are affordable: average house payment (principal, taxes and insurance) were $600 per month in 2011 which makes them affordable to many qualified low income families. Habitat prequalifies families with good credit and not too much debt and are at or below 50% of area median income. All the homes pay t00% of full property taxes when completed. Habitat builds in the right of first refusal on all new homes so that no profit can be made on a quick sale. 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. All Habitat homes have a seven year, right of first refusal clause built into the sales document to prevent any quick sales along with a repayment plan (i00% of HOME funds) to the City when the house is sold in the future. 18. Explain why this project needs and is worthy of the requested public subsidy. Affordable, quality home ownership is the basis of most safe neighborhoods. Many lower income families will never be able to build up any savings for a retirement without affordable home ownership. The rule of thumb is that no one should pay more than 30% of the wages for housing which means that most families earningless than $50,000 can never expect to own their own home and build up a nest egg. By providing a subsidy to create and retain homes via Habitat, stability is more likely to take hold for families, neighborhoods and the wider community as a result. 76 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? This is a subsidy to help a family get into housing, premised on the notion that the market will function and they will not need any further subsidy. If they fail, Habitat can exercise its right of first refusal and place another qualified family in the home. In 20 years of local housing production, Iowa Valley Habitat for Humanity has had only one foreclosure in Iowa City (that due to the death of single mom). 20. If partial funds are awarded, will the project/program continue? XXYes 0 No If yes, at what level? Half as many homes each year. 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. We serve those between 25%-50% of area median income who have satisfactory credit and not too much debt. Lately, we have been serving a high number of legal immigrants (they tend to have much less debt and higher credit scores). We believe they bring a great deal of diversity to whatever neighborhood the homes are built. 22. On the map provided, please show the location of the proposed project. 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 between 0 - 30% median income households (a) Number between 31 — 50% median income 4 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) 77 Housing FY13 CDBG/HOME Funding Request X 0 Number over 100% median income households (f) Total _4 households (g) Percent LMI 100010 (a+b+c+d) = g 24. Does the proposed project pay full property taxes? XXX Yes 0 No If YES, what is the estimated value of taxes generated from this Project? $10,400 per year If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? 0Yes 0No If yes, what is the percent of full taxes paid? 100010 25. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. No other group trains, qualifies and places low income families in home ownership in the area. With a significant success record (only one foreclosure in 34 homes built in Iowa City =3%) equal to or better than the banks, we fill a niche which no one is able to or is willing to fill: enabling working families to put down roots which helps everyone. 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: 0 Suitable living environment XX Decent affordable housing 0 Creating economic opportunities Outcome: 0 Availability/accessibility V Affordability Output Indicator: 0 Persons V Households 0 Sustainability 0 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) Amount Budgeted Expended Date All Units Fiscal Year Funds Recv'd Amount (as of 12/31/11) Completed FY09 (July 2008 — June 2009) $0 $ FY10 (July 2009 - June 2010) $0 $ 3 out of 4 FY11 (July 2010 - June 2011) $114,000 $ 112,900 completed (last one in 2013) Housing 78 FY13 CDBG/HOME Funding Request IM 14 Amount Budgeted Expended Date All Units Fiscal Year Funds Recv'd Amount (as of 12/31/11) Completed FY12 (July 2011 - June 2012)* $180 000 $0 Waiting on infrastructure to buy lots *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? XXX 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. 30. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. We have an executive director overseeing a f/t bookkeeper, volunteer coordinator, two construction supervisors, two weatherization specialists, and four Restore staff. All of the ReStore staff are paid for out of ReStore sales and 1/3 of the cost of administrative staff come from ReStore sales. The two weatherization staff are paid for from a DOE grant. Only a few thousand dollars per build come back to pay for overhead/administrative costs. 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