HomeMy WebLinkAboutIowa Valley Habitat for Humanity - Homeownership's 13V
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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
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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.
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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
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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
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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.
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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)
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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
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FY13 CDBG/HOME Funding Request
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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.
In addition, there are 13 community members on the board of directors (including three bankers, a realtor, two
researchers and two attorneys) which meets monthly.
Housing
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FY13 CDBG/HOME Funding Request
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