HomeMy WebLinkAboutThe Housing Fellowship - CHDO Operating Funds0
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fl I ieu _ r On» 1 R HOUSlilg
Project Name:
Type of Project (check onek O Homeownership O O Rehabilitation
(Rental and Rental Rehabilitation projects require the completion of a rental housing pro forma) N/A This
request is for CHDO Operational Funds
1. Lead Applicant Name: The Housiin^gg Fellowship
Signature (please use blue ink):
Applicant Address: 322 East 2"d Street
Contact Person: Maryann Dennis
Title: Executive Director
Phone Number: 319-358-9212 X5
Fax Number: 319-358-0053
E-mail Address: mdennis(abhousinafellowshl�com
DUNS Number: 868030701
2. Secondary Applicant (if applicable): N/A
Signature (please use blue Ink):
Applicant Address:
Contact Person:
Title:
Phone Number:
Fax Number:
E-mail Address:
3. Type of Applicant (check ones
✓ Community Housing Development Organization
O Private for -profit, individual or partnership applicant
CW 4. Amount of HOME/CDBG Funds Requested: $20,630.00
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Housing
O Private non-profit organization
O Public Organization
FY13 CDBG/HOME Funding Request
5. Did you attend the Applicant Workshop? NO
(W ✓ YES - Please indicate date attended: ✓ 12/29/11 or 0 1/09/12
6. Provide a brief description of the proposed project & complete the table below.
The Housing Fellowship is requesting a CHDO operating grant in the amount of $20,630 or 5% of The City HOME
Allocation. HOME regulations allow a participating jurisdiction to grant 5% of their HOME allocation to certified
Community Housing Development Organizations for operational expenses. The Housing Fellowship, one of Iowa's
premier CHDOs has been in operation since 1990. The mission of The Housing Fellowship is to provide quality
homes that are affordable to people with limited incomes.
Toward this end, The Housing Fellowship has developed and owns and manages 138 affordable rental units
(including the management of five separate Limited Partnerships), has sold 17 Community Land Trust homes,
administers Lone Tree, Iowa first time home buyer HOME program and administers the only revolving loan fund
for very low-income Johnson County renter households to pay a security deposit. The Housing Fellowship co-
founded the Housing Trust Fund of Johnson County.
The Housing Fellowship now operates with six full-time employees. As the corporation has grown, so have the
day to day operating responsibilities (i.e. operating expenses). HOME CHDO operating funds will allow The
Housing Fellowship to continue to function as a viable and fiscally responsible CHDO.
Very few resources exist to fill the gap necessary to cover operating costs to plan housing projects, manage the
Corporation's assets, and to comply with the myriad of regulations/reporting requirements of various
public/private funding sources.
Total Number of Units Proposed:
N/A request is for CHD0
O erationai Funds
Type of Units:
Number of Units:
Single Room Occupancy
Efficient
1 - Bedroom
2 - Bedroom
3 - Bedroom
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.
City STEPS rates the need for CHDO Operational Support as a HIGH priority need in the Housing and Community
Development Activities section. The first recommendation In HUD's CHDO Toolbox is for local jurisdictions to
provide access to operating support. A major finding in the Iowa City Metro Area Affordable Housing Market
n I sis (December 2007) by Mullin & Lonergan Associates is that "experienced affordable housing developers in
the region are struggling against many barriers to create new affordable housing units for lower income
households". The Market Analysis further explains that there is a "need for increased capacity within the nonprofit
organizations that develop affordable housing. Nonprofit organizations typically operate on shoe -string budgets.
Without ready access to pre -development assistance, nonprofit developers are very limited In their ability to
explore the feasibility of a project. A staff of several full-time employees working exclusively on locating sites and
developing financing packages, as well as overseeing construction, enables a developer to focus on its mission to
build housing".
THE and all Limited Partnerships have annual audits. THE currently manages 35 separate bank accounts as
required by law and funding regulations. All accounts must be reconciled monthly and balance sheets and
(W profit/loss statements are prepared and presented to the Board of Trustees.
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Housing
FY13 CDBG/HOME Funding Request
n
Effective management of THE requires experienced and skilled personnel who deserve competitive salaries and
benefits. The Executive Director and the Finance Manager are certified as Housing Development Finance
Professionals through the National Development Council. The Compliance Specialist and Office Manager are
certified as Credit Compliance Professionals through Spectrum Enterprises, Inc.
The Finance Committee established by the Board of Trustees meets regularly and monitors the budget and profit
and loss statements. The strategic plans first priority is to increase the financial stability of the Corporation.
Even with a plan in place and through effective management practices the shortfall persists and will take some
time to overcome. The City HOME CHDO operating support over past years has been of great help and a grant in
FY13 is needed to eventually achieve financial stability and adequate replacement/repair reserves.
8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015
CITY STEPS Plan.
_ HOME CHDO Op1?ratfng Expenses
Priority Need
9. Please provide the requested loan terms and affordability period:
HIGH
Priority Need Level (High, Medium or Low)
Loan
Affordability
Principal
Interest
Amortization
Period
Yearly
Amount
Rate
(Years)
(Years)
Payment
Terms
$20,630
N/A
N/A
N/A
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.
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FY13 CDBGIHOME Funding Request
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
$ 20,630
N/A
N/A
N/A
DYes /No
Funding (public)
State of Iowa HOME or
$ 50,000
N/A
N/A
N/A
✓Yes ONo
CDBG (public)
IFA — Low Income Housing
$
DYes ONo
Tax Credits (public)
Bank Loan (private)
$ 100,000
✓Yes ONo
Applicant Contribution of
$ 226,730
✓Yes ONo
Equity (private)
Other Public Resources
$
OYes ONo
(please list)
Other Private Resources
$ 22,167
N/A
N/A
N/A
DYes ✓No
(please list) United Way
Community Foundation
$ 500
N/A
N/A
N/A
✓Yes ONo
TOTAL
$420,027
10b. Please provide the uses of funds for the project.
Uses of Funds
Amount
Acquisition:
Building Acquisition
$
Land Acquisition
$
Site Improvements
$
Construction
$
Professional Fees
$
Construction Finance
$
Permanent Finance
$
Developer Fee
$
Reserves
$
Other (please specify): CHDO Operations
$420,027
TOTAL (Must equal TOTAL in IOa.)
$420,027
Amount of Private Funds
Amount of Public Funds
Number of bedrooms
Housing
$ 349 (a)
$ 70,630 (b)
Total Project Funding $ 420,027 (c) a f b
N/A (d)
47 FY13 CDBGIHOME Funding Request
IM
A
Total public cost per bedroom
Total Cost Per Unit
NIA(e) b=d
NA (f) c_#
Units
loc. What percentage of the proposed budget will be made up of private funds? 83 %
10. 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,
The 13 member volunteer Board of Trustees will meet eleven times during the fiscal year, Trustees set
policy, approve projects, review and monitor the budget and monthly financial reports, complete and
Implement the Corporation's Strategic Plan. Trustee Committees include members of the Board and the
community. The Executive, Finance and Housing Advisory Committee meet regularly. The Audit
Committee selects the auditing firm and recommends approval of the annual audit. Trustees and
Committee members represent several professions and are experienced in key areas that contribute to
the Corporation's efficacy.
Unskilled labor
hours
x $10 per hour =
$
Skilled labor
387 hours
x $ 50 per hour =
$ 19,350 (annually)
Trustees & Committee Members
Skilled labor ( )
hours
x $_ per hour =
$
Skilled labor ( )
hours
x $_ per hour =
$
Total
$-19,350
12. Please identify any Identity of interest (I01) relationships with the applicant and/or project owner, Le, General
Partner has a financial Interest in the construction company, etc.
N/A
13, Describe what efforts have been taken to secure private or other public funding.
■ The Iowa Finance Authority will provide $50,000 in HOME CHDO Operating funds.
■ The Housing Fellowship has been a partner agency of the United Way of Johnson County since 1992.
■ The Housing Fellowship applies for and receives a grant each year from the Community Foundation of
Johnson County.
■ Member organizations (congregations) donate to The Housing Fellowship
■ The Housing Fellowship has an operational line of credit from Hills Bank.
■ The Housing Fellowship has a loan from US Bank for liquidity guarantee to investors.
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: $ 20,630 x .25 = $ 5158 Local Match
THF' s property tax exemption on THE owned rental homes provides annual match dollars to the City's required
HOME 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
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FY13 CDBG/HOME Funding Request
application. Please Note: If funded, this schedule will be used for any project agreement for the
use of CDBG\HOME funding.
(W Date: Description of Activity:
July 1, 2012 Beginning of City Fiscal Year and Project Start Date
August, 2012 Execute funding agreement
5"' day of each month Submit source documentation (e g payroll) and request for draw on award
December 5, 2012 Submit final draw/close-out
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 use of City of Iowa City HOME funds for CHDO operations will preserve affordable housing by preventing
further sales of The Housing Fellowship's rental and CLT homes. Operating support will also prevent increases in
rents on units having lower rents than required. CHDO operating grant will also lower THF's long term liability.
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.
The policy of The Housing Fellowship, as a CHDO, is to maintain rental and CLT homes as affordable for the life of
the properties.
(W 18. Explain why this project needs and is worthy of the requested public subsidy.
NEED FOR FUNDS: Restricted rents, a history of the City's extensive terms of affordability (in excess of HOME rule)
and not allowing repair and replacement reserves has resulted in an operating deficit to The Housing Fellowship.
Complicated financing structures and compliance requirements demands experienced staff with ongoing and updated
certifications. City STEPS ranks CHDO operating expenses as a high priority and indicates the City plans to fund
CHDO operations.
HOME Program Final Rule: Section 92.300 b. "Each participating jurisdiction must make reasonable efforts to identify
community housing development organizations that are capable, or can reasonably be expected to become capable,
of carrying out elements of the jurisdiction's approved consolidated plan and to encourage such community housing
development organizations to do so." The Housing Fellowship has maintained certification as a community housing
development organization by the State of Iowa since July 28, 1992 and by the City of Iowa City since 1996.
WORTHINESS: One of the exemplary CHDO's In the State, The Housing Fellowship has proven to be a capable CHDO;
well managed and respected. The Housing Fellowship has established and maintains viable public/private
partnerships; including Iowa City. The Housing Fellowship has a long history of meeting and/or exceeding
performance targets, and compliance requirements largely within budgets. Excellent working relationships have
been established with the City's CPD and Housing Authority staff.
The Housing Fellowship's programs have impacted low-income families and the Iowa City Community in positive
ways. The average length of stay for families in a Fellowship's rental home is 53 months; contributing to families
stability, the stability of neighborhoods, and considerably longer than the average renter household in Iowa City.
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 Housing Fellowship has a long range plan to improve operational cash flow. Negotiations to amend past HOME
funding agreements are in process to lower The Housing Fellowship's long term liability annual debt service and to
establish repair and replacement reserves. Deferred developer fees held by investors will be released when
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FY13 CDBGIHOME Funding Request
performance targets are met. The Housing Fellowship has met all required performance targets for the Limited
Partnerships. The Finance Committee carefully reviews the fiscal position of the Corporation.
20. If partial funds are awarded, will the project/program continue? ✓Yes 0 No
If yes, at what level?
A private line of credit (with interest) will be secured from a local lender, which will further the long term liability
of the corporation and will not improve the cash flow situation.
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.
All households who participate in The Housing Fellowship's programs are low-income and most are very low-
income. In 2010, the average annual income of all renter households was $20,649.
The Housing Fellowship's rental housing portfolio includes detached single family homes, duplexes, condos and
townhomes with a mix of two, three and four bedrooms. The homes are scattered throughout Iowa City and
Coralville in eleven of the thirteen elementary attendance areas in the two communities. Construction will begin
�1r next Spring in North Liberty, IA.
22. On the map provided, please show the location of the proposed project. N/A
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).
N/A
Number between 0 - 30% median income
households (a)
Number between 31— 50% median income
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)
Number over 100% median income
households (f)
Total
households (g)
Percent LMI
(a+b+c+d) = g
24. Does the proposed project pay full property taxes? 0 Yes 0 No N/A
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?
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FY13 CDBGIHOME Funding Request
OYes ONo 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.
The Housing Fellowship has a long history of implementing innovative affordable housing projects and administers
the only revolving loan fund in Johnson County for security deposits and administers one of only two Community
Land Trusts in Iowa. The City looked to The Housing Fellowship to fill the affordable rental aspect of the UniverCity
Neighborhood Partnership Program.
The Housing Fellowship has engaged talented and creative community members to be part of the Board of Trustees
and committees and has partnered with many talented professionals to be part of development teams.
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: O Suitable living environment
Outcome: O Availability/accessibility
Output Indicator: O Persons
✓ Decent affordable housing
✓ Affordability
✓ Households
O Creating economic opportunities
O Sustainability
O 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
Budgeted
Amount
Amount
Expended
(as of 12/31/11)
Date All Units
Completed
FY09 (July 2008 — June 2009)
$ 226,000
$ 226,000
12/31/2010
FY10 (July 2009 - June 2010)
$2,930,687
$2,930,687
12/31/2010
FY11 (July 2010 - June 2011)
$ 442,351
$ 188,638
FY12 (July 2011 - June 2012)*
$ 249,800
$ 249,800
*Six months remaining In FY12 at time of th/s appl/cation.
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? ✓ Yes O No
If "NO" or a matter is currently In litigation please give the name of the case and explain the basis for the case.
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FY13 CDBG/HOME Funding Request
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.
(W N/A
30. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project.
BOARD OF TRUSTEES
OFFICERS COMMITTEES (Trustees and Community Members)
President Executive
Vice President Finance
Secretary [Treasurer Recruitment/Orientation
Housing Advisory
Audit
OFFICE MANAGER PROJECT MANAGER
MAINTENANCE AND REPAIR
EMPLOYEE
DIRECTOR
FINANCE MANAGER COMPLIANCE SPECIALIST
The mission of The Housing Fellowship is to provide quality homes that are affordable to people with limited
incomes. The Housing Fellowship incorporated as a non-profit In 1990. A community based housing
organization; the Housing Fellowship began as a response to the severe shortage of affordable housing in our
community by representatives from area religious congregations. The Housing Fellowship has fifteen
congregations and four Human Services Agencies as permanent members. (Permanent members serve a
supportive community role, not as Trustees.) Member organizations have the ability to call a meeting of the
membership to review the activities/performance of the Trustees and/or staff.
The Board of Trustees serves as the policy making body. At least one third of the Board of Trustees represents
the low-income community. Trustees represent key areas of expertise pertinent to the business of the
Corporation. The Housing Fellowship employs six people.
The Housing Fellowship works closely with local providers of services. HACAP, the Neighborhood Centers, Shelter
House and Four Oaks/Youth Homes are permanent members of the Housing Fellowship. The Housing Fellowship
Is active on the Local Homeless Coordinating Board and co-founded the Housing Trust Fund of Johnson County.
THF's Executive Director serves as ex-officio for the Housing Trust Fund. In -kind support of space, phone and
supplies are provided to the Trust Fund.
The Housing Fellowship administers three programs In Johnson County all of which address the housing needs of
low-income households. The affordable rental housing program provides safe, decent, affordable rental homes
scattered throughout Iowa City and Coraiville to low -Income families. The Housing Fellowship has met the
rigorous criteria established by the U.S. Department of Housing and Urban Development (HUD) and is certified as
a Community Housing Development Organization (CHDO). The CHDO certification Is monitored annually by the
Housing 52 FY13 CDBG/HOME Funding Request
Planning and Community Development Department of Iowa City and by the Iowa Finance Authority. Some
criteria for the CHDO certification are that one third of the Board of Trustees must represent the low-income
community or reside in a HUD designated low income neighborhood and that the non-profit must demonstrate
the capacity to develop affordable housing. The Housing Fellowship is one of the premier CHDOs in the state of
Iowa.
The Housing Fellowship builds and or acquires/rehabilitates properties for use in the rental housing program. At
the time of this writing, The Housing Fellowship owns and manages 138 rental homes. Construction of 22 rental
dwellings in Iowa City and North Liberty will begin in the Spring. The homes are scattered throughout Iowa City
and Coralville and include various housing types. This provides more choices for low-income households as to
where they want to live and in what type of home.
The financing for affordable rental projects is complex and multi -layered. In order to be awarded low-income
housing tax credit equity from the Iowa Finance Authority, a separate Limited Partnership must be established. A
typical housing project includes four — seven different sources of financing with strict compliance issues and
separate accounting. The Housing Fellowship manages five separate entities in its rental housing program.
In 2010, THE and Partnerships housed 427 persons including 259 children. The average annual household
income increased in 2010 from the previous year from $17,866 to $20,649. 63% of the heads of households are
employed and 17% are disabled. 71% of the households are headed by single moms.
Styles of houses Include single family detached, duplex, townhomes and condominium homes. Sizes range from
two to four bedrooms. The homes are located in eleven of the thirteen Iowa City and Coralville elementary
attendance areas. An active Board of Trustees and Housing Advisory Committee review the potential sites of
homes and consider proximity to public transportation, schools, and essential services. The application for rental
housing asks applicants for their preferences In neighborhoods and school districts.
Key personnel for the proposed project include: Maryann Dennis has been the Executive Director of the Housing
Fellowship since January 1993. She has extensive experience in working with low-income families and the
administration of federal and private funding sources. She currently oversees The Housing Fellowship's HTFJC,
CDBG, HOME, FHLB contracts and partnership agreements. Ms. Dennis is a certified Housing Development
Finance Professional through the National Development Council. She holds a Masters Degree in Social Work
Administration and Social Development from the University of Iowa. She serves as ex-officio of the Housing Trust
Fund of Johnson County, was appointed to the Johnson County Housing Task Force and the Equity Committee of
the ICCSD, and serves on the Board of Directors of Successful Living, Inc.
Barbara Bailey was the contracted accountant for over eight years and joined The Housing Fellowship full-time in
February 2007. Ms. Bailey prepares budgets, maintains financial records, reconciles all accounts, and prepares all
financial reports and balance sheets for the Board of Trustees. Ms. Bailey is certified as a Development Finance
Professional through the National Development Council. She serves on the Green Development Committee and
has extensive training in passive house design.
Tashundra Marshall, Compliance Specialist re joined the staff in May 2008. Ms. Marshall holds a B.A. Degree in
Sociology from the U of I. She served as Office Manager at THE from 2004 — 2005, leaving to be an Income
Maintenance Worker at DHS. Ms. Marshall Is a Certified Credit Compliance Manager through Spectrum
Companies.
Tammy Spies, Project Manager, joined THE staff In September 2003 after serving as Office Manager and
Estimator of Arena Auto Body for over 12 years. Ms. Spies had been a tenant at the Housing Fellowship from
1993 until she purchased her first home in 2010. Ms. Spies holds an Associate of Arts Degree from Ellsworth
Community College in Sales Management. She has demonstrated excellent skills In property management
practices and public funding compliance issues. She has completed compliance training for federal funds
sponsored by the Iowa Department of Economic Development and the Iowa Finance Authority.
Danielle Chambers, Office Manager, joined the Housing Fellowship in October 2010. Danielle holds a Bachelor
Degree in History from the University of Iowa. She has experience in the real estate industry in both Illinois and
Iowa. Prior to that, Danielle worked on various political campaigns. Ms. Chambers is a Certified Credit
(W Compliance Manager through Spectrum Companies.
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FY13 CDBGIHOME Funding Request
•
Ed "Butch" Seydel, Maintenance and Repair Employee, joined THE in June 1999, Mr. Seydel has well over 30
years of experience in the building trades and facility repair and maintenance.
THF's staff members have attended training to ensure funding compliance and recordkeeping offered by IA
Department of Economic Development, IA Finance Authority, Midwest Housing Equity Group and Spectrum
Companies. The recent purchase of property management software compatible with HUD and the Low -Income
Housing Tax Credit programs has streamlined the operations of THF.
The Housing Fellowship's financial statements are audited, as per federal requirements, each year.
Housing 54 FY13 CDBGMOME Funding Request