HomeMy WebLinkAboutIowa Valley Habitat for Humanity - Owner Occupied RehabilitationD F__
IAINl , Housing
Project Name: Rehab/Remodel Home Ownership
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Type of Project (check one): XXHomeownership 0 Rental OTenant 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
Signature (please use blue ink):
Applicant Address: 2401 Scott Blvd.
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: $90,000
ILW
XX Private non-profit organization
0 Public Organization
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Housing
FY13 CDBG/HOME Funding Request
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5. Did you attend the Applicant Workshop? 0 NO
XX YES - Please indicate date attended: 0 12/29/11 or XX1/09/12
6. Provide a brief description of the proposed project & complete the table below.
Total Number of Units Proposed:
Type of Units:
Number of Units: 3
Single Room Occupancy
Efficiency
1 - Bedroom
2 - Bedroom
3 - Bedroom
3
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.
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, 00/0
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.
8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015
CITY STEPS Plan.
Home Ownership assistance
Priority Need
9. Please provide the requested loan terms and affordability period:
Terms
Requested*
Medium
Priority Need Level (High, Medium or Low)
Loan
Affordability
Principal
Interest!
Amortization
Period
Yearly
Amount
Rate
0%
(Years)
(Years)
Payment
$90,000
(until future
Silent, repaid at
sale)
some future
Idate of sale
*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
11
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)
$90,000
0%
()Yes XXNo
State of Iowa HOME or
CDBG (public)
$
()Yes ()No
IFA — Low Income Housing
Tax Credits (public)
$
()Yes ()No
Bank Loan (private)
$
()Yes ()No
Applicant Contribution of
Equity (private)
$90,000
XXYes ()No
Other Public Resources
(please list)
$
()Yes ()No
Churches, businesses
$120,000
grants
xx No
Housing Trust Fund Johnson
County
$90,000
1%
10 yrs
()Yes XXNo
TOTAL
$390,000
• 10b. Please provide the uses of funds for the project.
1-4
Uses of Funds
Amount
Acquisition:
Building Acquisition
$270,000
Land Acquisition
$
Site Improvements
$10,000
Construction
$80,000
Professional Fees
$10,000
Construction Finance
$10,000
Permanent Finance
$
Developer Fee
$10,000
Reserves
$
Other (please specify):
$
TOTAL (Must equal TOTAL in 10a.)
$390,000
Housing
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FY13 CDBG/HOME Funding Request
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Amount of Private Funds
Amount of Public Funds
Total Project Funding
Number of bedrooms
Total public cost per bedroom
Total Cost Per Unit
$300,000
$90,000
$390,000
9
$10,000 .
$130,000
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
69.2%
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 900 hours x $10 per hour = $9 000
Skilled labor (carpenter) 120 hours x $30 per hour = $3,600
Skilled labor ( ) hours x $ per hour = $
Skilled labor ( ) hours x $ per hour = $
Total $12.600
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.
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 250 hours of volunteer labor for every remodeled home.
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: $90,000 x .25 = $22,500 Local Match
See $12,600 volunteer hours donation above. 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 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 will be matching up business sponsorships with rehabs more often in the future (i.e.
$10,000 per rehab) as it is easier for them to come up with amounts smaller than $50,000 which is the
amount a new build requires for sponsorship.
Housing
FY13 CDBG/HOME Funding Request
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 I, 2012 Beginning of City Fiscal Year and Project Start Date
Fall, 2012 Purchase existing home for rehab Nov., 2012; complete it May, 2013
Spring/summer 2013 Purchase two existing homes for rehab November, 2013 and complete
them by May, 2014
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).
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 too % 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.
(„r All Habitat homes have a seven year, right of first refusal clause built into the sales document
along with a repayment plan (too % of HOME funds) to the City when the house is sold in the
future.
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Housing
FY13 CDBG/HOME Funding Request
18. Explain why this project needs and is worthy of the requested public subsidy.
Repairing and upgrading existing housing is a good use of public money as it preserves a valuable
resource which is already in place. Buying up existing housing and improving it can have positive,
ripple effects on the entire neighborhood. In addition, 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 earning less
than $5o,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 arise for families,
neighborhoods and the wider community as a result.
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).
to20. If partial funds are awarded, will the project/program continue? XXYes 0 No
If yes, at what level?
Probably only do a home every other 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.
:.
Housing
FY13 CDBG/HOME Funding Request
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
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? XXX Yes
households (a)
3 households (b)
households (c)
households (d)
households (e)
households (f)
_3 households (g)
_3 (a+b+c+d) _ g
0 No
If YES, what is the estimated value of taxes generated from this Project? $6500 per year
If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate?
()Yes 0No If yes, what is the percent of full taxes paid? I00010
C25. 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
Outcome: 0 Availability/accessibility
Output Indicator: 0 Persons
V Decent affordable housing 0 Creating economic opportunities
V Affordability
V Households
0 Sustainability
0 Housing units
Housing
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FY13 CDBG/HOME Funding Request
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)
$0
$
FY10 (July 2009 - June 2010)
$0
$
FY11 (July 2010 - June 2011)
$0
$
FY12 (July 2011 - June 2012)*
$40 000
$0
Spring/summer,
2013
*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
(W organization's administrative capacity, financial skills, commitment and/or experience to undertake and
complete the proposed project within the established timetable and budget.
C]
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.
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
FY13 CDBG/HOME Funding Request
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