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HomeMy WebLinkAbout10-18-2012 Housing and Community Development CommissionHOUSING AND COMMUNITY DEVELOPMENT COMMISSION DALE HELLING CONFERENCE ROOM, CITY HALL 410 E. WASHINGTON STREET, IOWA CITY THURSDAY, OCTOBER 18, 2012 6:30 P.M. 1. Call Meeting to Order 2. Approval of the September 20, 2012 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff/Commission Comment 5. Public Meeting - Annual Review of the 2011-2015 Consolidated Plan (aka CITY STEPS) • Discussion of the 2011-2015 Consolidated Plan 6. Update on FY13 Projects — CDBG projects that have not entered a formal agreement with the City of Iowa City 7. Discuss Community Mental Health Center's Request for Project Revision 8. Monitoring Reports • FY12 The Housing Fellowship— CHDO Operating (Drum) • FY12 DVIP —Aid to Agencies (Drum) 9. Adjournment MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION SEPTEMBER 20, 2012 — 6:30 PM DALE HELLING CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Michelle Bacon Curry, Andrew Chappell, Cheryll Clamon, Charlie Drum, Scott Dragoo, Jarrod Gatlin, Holly Hart, Rachel Zimmermann Smith MEMBERS ABSENT: Jim Jacobson STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: None RECOMMENDATIONS TO THE CITY COUNCIL: None. CALL TO ORDER: The meeting was called to order by Chappell at 6:30 p.m. APPROVAL OF THE AUGUST 16, 2012 MINUTES: Drum moved to approve the minutes with minor corrections Dragoo seconded. A vote was taken and the motion carried 8-0. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: None. STAFF/COMMISSION COMMENT: Hightshoe stated she emailed the City's Strategic Plan to the Commission and asked the Commission to review the priorities identified in the plan. PUBLIC MEETING: Nomination and Election of Officers Chappell said the election was for Chair and Vice -Chair. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION September 20, 2012 PAGE 2 of 6 Gatlin moved to nominate Michelle Bacon Curry for the Vice -Chair position Zimmerman Smith seconded the motion. Zimmerman Smith moved to nominate Andrew Chappell for Chair Bacon Curry seconded the motion. A vote was taken and the motion to nominate Chappell for Chair and Bacon Curry for Vice Chair was approved 8-0. Public Hearing & Approval of the FY12 Consolidate Annual Performance & Evaluation Report (CAPER) Hightshoe stated the report had all required information except the PR06 report which summarizes expenditures for planning/admin., public services and economic development. The report also shows how much CDBG program income was received. Staff was unable to balance the IDIS reports with the City's financial system. The report was balanced and provided at the meeting for commission members to review. She said there was also one HUD report that was in error. The report identified that the city has no HOME match liability. She said under the HOME program, participating jurisdictions have to match their HOME disbursements (non admin. costs) by at least 25 percent. For example if you spent $100,000 you have to provide a HOME match of $25,000 through eligible items such as tax forgiveness, donated labor, etc. She said most non-profit housing developers don't pay taxes on assisted properties or pay a reduced amount based on IRS rules. Low -Income Housing Tax Credit projects pay about one-third of the tax rate for the properties in the project. This tax forgiveness contributes to our match. As HOME match is cumulative as opposed to annual, the City has excess match and no problems are anticipated in meeting the HOME match obligation for the foreseeable futures. Staff contacted our HUD representative about the report. The HUD Omaha office corrected the report. The City's match liability was $193,695. The City will carry over $2.5 million in excess match to next year. Hightshoe stated the CAPER summarizes the accomplishments for this program year and also provides status updates on prior year projects that were open during FY12. Hightshoe recommended that commission members review the CDBG and HOME Summaries provided in the report. The summaries identify if a project is open or closed, amount of funds spent and if closed, the number of beneficiaries. Bacon Curry asked if students are included in the census numbers on Table 1, Race. Hightshoe explained that if the student identifies Iowa City as their home residence then it is included. Not all students will identify Iowa City as their home residence. Chappell said the City does encourage students to claim Iowa City as their home residence. Bacon Curry asked if HUD uses these Census number when determining the City's funding amounts. Hightshoe said total population is one of the factors HUD uses; other factors include age of housing, number in families in poverty, etc. Hightshoe said when the City completed their housing market analysis they factored out the 19-24 year old market, so the students aren't influencing the housing needs identified for low income households for CDBG/HOME funds. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION September 20, 2012 PAGE 3 of 6 Hart asked which census tracts are low -moderate income due to students. Hightshoe stated census tracts 11, 21, and 16 are low -moderate income and primarily student census tracts. Hart and the Commission clarified which shaded areas where low -moderate income census tracts. Hightshoe said Map 1 is a census bureau estimate and the City hasn't received the official results. Staff anticipates the final map will look much like this map. The Commission discussed the areas on the map and the residents within each. Zimmerman Smith stated while not related to the CAPER she would like to know how entitlement funding for cities is calculated and what affect removing our students would have on the City's HOME/CDBG funding, and other programs such as Section 8. Hightshoe stated she will find how the amount is calculated and email to commission members. She did note that while students in all communities in the United States are counted in the communities they identify in the Census survey, at the local level, Iowa City does not assist projects that primarily benefit the student population. Students do have an impact on our housing market and its affordability. Zimmerman Smith asked if Iowa City could not report the students. Hightshoe stated officially, she didn't believe individual cities can change the entitlement amount formula. Including college students in the entitlement formula has been debated at the federal level. The formula remains as it is for now. Bacon Curry said the City doesn't have to spend all the money allocated. Thus if Iowa City is allocated $1 million dollars from HUD, the City could return or not spend half the funds. Gatlin said that HUD would recapture the other $500,000. Hightshoe stated she is not aware of a community that willingly returned funds as the City can spend the funds how they choose such as public infrastructure in low-income neighborhoods, downpayment assistance, park acquisition, etc. Hightshoe stated returning HOME funds may subject the City to fair housing complaints and investigation of its federal funds. Zimmerman Smith stated it seems that including students in University towns make these towns look like they have higher needs than they actually do because students are counted. These students wouldn't qualify for housing if they applied for a voucher. Hightshoe stated that the way CDBG/HOME entitlement funds are calculated is different than other HUD programs such as Section 8. The Iowa City Housing Authority (Section 8, public housing and other programs) covers all of Johnson County and parts of Iowa and Washington County. Hightshoe was not sure how their budget amount is calculated annually. Bacon Curry said the students wouldn't qualify, but the number of students helps Iowa City get more funds. Gatlin moved to approve the FY12 CAPER to HUD with the revised reports as indicated. Zimmerman Smith seconded the motion. A vote was taken and the motion to approve the CAPER with the reports included to HUD was approved 8-0. Selection of Projects to Monitor in FY13 Commission members choose projects to monitor in the upcoming year. Hightshoe stated the purpose of monitoring is for commission members to report on project status, communicate with HOUSING AND COMMUNITY DEVELOPMENT COMMISSION September 20, 2012 PAGE 4 of 6 the subrecipients and report back to the commission. Staff also monitors the projects based on HUD's guidance and forms. Commission members will monitor the following projects as indicated below. FYI Projects The Housing Fellowship - CHDO Operating Drum October DVIP - Aid to Agencies Drum October FYI HACAP - Playground Zimmermann Smith November Neighborhood Centers of JC - Aid to Agencies Zimmermann Smith November Community Mental Health Center - Accessibility Zimmermann Smith November DVIP - Facility Rehabilitation Hart December MECCA - Security Improvements Dragoo January Habitat for Humanity -Acquisition & Rehab. Dragoo January HACAP - Rental Rehabilitation Bacon Curry April Neighborhood Centers of JC - Facility Rehab, Bacon Curry April Crisis Center of Johnson County - Facility Rehab. Gatlin May Charm Homes LLC - Rental Housing Gatlin May IC Housing Rehab. STAFF June IC Economic Development STAFF June FY12 Mayor's Youth - Rental Housing Chappell November FY12 Successful Living - Rental Rehab. Chappell November FY12 IV Habitat for Humanity - Owner -Occupied Rehab. Chappell November FY12 IV Habitat for Humanity - Land Acquisition Hart December FYI Shelter House - Rental Rehab. Hart December FYI Isis Investments - Rental Housing Hart December FYI Wetherby Condos South LLC - Rental Rehab. Hart December FY12 United Action for Youth - Transitional Housing Clamon January FY12 Crisis Center - Parking Clamon January FYI IV Habitat for Humanity - Property Acquisition Clamon January FYI Visiting Nurse Association - Property Acquisition Jacobson April FYI IC - Fairmeadows Splash Pad Jacobson April FYI ICHA - Tenant Based Rent Assistance Jacobson April FY11 & FYI The Housing Fellowship - Affordable Rental Housing Gatlin May Timeline for the Annual Review of CITY STEPS Hightshoe announced there will be at least one meeting to gather feedback on CITY STEPS. Commission members will be notified of the meeting(s). A summary of the feedback received will be in the October packet. In October commission members will review the feedback and determine if any priorities need to be amended in CITY STEPS. If there is, a public comment period will begin followed by a public hearing. City Council must consider and approve a proposed amendment. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION September 20, 2012 PAGE 5 of 6 Old Business — Allocation Process Committee, Update Dragoo reported that they reviewed comments and it appears that no changes will be made to the allocation process or ranking sheets at this time. The committee recommends an online survey every 2-3 years regarding feedback on the process. The survey should be administered in April, very close to the end of the allocation process. The committee is done meeting at this time. ADJOURNMENT: Clamon moved to adjourn. Drum seconded. A vote was taken and the motion carried 8-0. Summary of High Priority Needs (2011-2015 CITY STEPS) For the five-year period of 2011 through 2015, the City identified the following needs as high priorities for the expenditure of the City's federal CDBG and HOME funds (approximately $1.2 million annually): . Housing Needs Non -student renter households up to 50% of MFI: Small families, specifically renters, experience the greatest degree of housing problems. Existing affordable housing demand exceeds projected demand, and the need for rental units far outpaces the need for owner units. With the cost of home ownership outpacing real median household income, providing assistance to rental households would be more cost-effective at this time. Persons and families at -risk for homelessness: With more "new homeless" being created during the recession, it is critical that efforts be made to assist them in maintaining their current housing, and not increase the number of homeless in Iowa City. Rental assistance, including rent and utility deposits, achieves this objective and is far more cost-effective than transitioning out of homelessness. o Owner -occupied housing units: Elderly and small family owner households experience very high degree of housing problems, especially cost burden. Weatherization, emergency rehab and rehab activities help to decrease monthly utility costs and preserve and maintain the City's affordable owner housing stock. In addition, physical improvements including handicap accessibility features that may assist elderly owners to age -in -place is a high priority. Community Development Needs o Public service activities that focus on crime prevention and awareness, child care, youth services, life skills, financial literacy, substance abuse services, mental health services, and employment training are high priorities. As a result of the recession, there are many more households at -risk for becoming homeless due to job loss, etc. Assisting these families with day care, life skills, etc. to maintain their job and housing will be a priority. Public facilities, specifically the structural facilities that house the public service providers listed above. In addition, child care facilities that are affordable to LMI households or accept Title 20 funding would be a high priority. Investing in the physical facilities used by non-profit organizations would prolong the life of their facilities and enable the agencies to continue their missions. Park and recreational facilities, flood prevention and mitigation strategies in low income neighborhoods are also high priorities. o Economic development activities, specifically employment training and micro - enterprise loan financing. The complete 2011-2015 CITY STEPS Plan can be found at www.icgov.org/actionplan. TABLE OF INCOME GUIDELINES AND DEFINITIONS Community Development Block Grant (CDBG). 51% of beneficiaries must be under 80% median income by household size. HOME Investment Partnerships Funds. Homeownership beneficiaries must be under 80% median income. 90% of rental housing beneficiaries must be under 60% of median income. These funds may only be used for housing activities (homeownership, rental housing, rehabilitation and tenant based rent assistance). Household Size 30% Median Income Poverty Level) 50% Median Income 60% Median Income 80% Median Income 1 $16,900 $28,150 $33,780 $45,000 2 $19,300 $327150 $38,580 $51,400 3 $21,700 $36,150 $43,380 $57,850 4 $24,100 $40,150 $48,180 $64,250 Maximum rent for HOME/CDBG assisted rental housing Eff. 1 BDR 2 BDR 3 BDR 4 BDR HOME Rent $496 $592 $746 $1,087 $1,044 (Low) $1,272 $1,165 (low) CDBG FMR $559 $670 $853 $1,257 $1,511 RENTAL HOUSING: HOME and CDBG funds typically assist a private or non-profit housing developer build or rehabilitate homes so that they are able to provide affordable rents to income eligible tenants. The tenant is responsible for paying the rent directly to the landlord. The housing developer sets the rent for the unit with the restriction that it can't exceed the fair market rent identified above. The home/unit remains affordable during the compliance period. See Affordable Housing Location Model for eligible HOME/CDBG locations for rental housing in Iowa City. The Section 8 program is a separate program through HUD and is administered locally by the Iowa City Housing Authority (ICHA) which covers all of Johnson County and parts of Iowa and Washington Counties. In this program, the tenant pays 30% of their income for rent to a private or non-profit landlord. The ICHA provides the difference between rent and 30% of the tenant's income to the landlord. The tenant may move and take the Section 8 voucher with them if the new landlord accepts the voucher. Examples of CDBG eligible activities: Acquiring land or buildings, demolishing structures, rehabilitation of owner occupied or rental housing, downpayment assistance, sidewalk and/or curb ramp installation, building additions or rehab. to non-profit facilities, construction of neighborhood centers, installation of accessible playground equipment and operational funding (salary, equipment or utility expenses) for non-profit agencies. Examples of HOME eligible activities: Owner -occupied housing rehabilitation, rental housing rehabilitation, new construction (owner or rental), land acquisition for housing, downpayment assistance and tenant based rental assistance. Review of City Steps Iowa Valley Habitat for Humanity strives to provide affordable home ownership for lower income area residents. Our work contributes in significant and positive ways (more than $90,00o in property taxes in 2012 alone!) to both the city and to the neighborhoods. However, City Steps ranks ownership by low income families as a low priority after having stated goals in the following passages in CITY STEPS which would lead one to believe that home ownership by low income families should rank as a high priority (see following passages from current CITY STEPS): Page 23: The three major objectives include: a) Creating or Enhancing Suitable Living Environments; b) Providing Decent Housing; c) Creating Economic Development Opportunities. We believe the construction of Habitat homes meet all three objectives. Page 23: The three specific outcomes: a) Availability/accessibility; b) Affordability; c) Sustainability. New Habitat homes are fully accessible, cost 't0-.qo%% less per month to purchase vs. affordable rents, build equity, and are 2rj%-qr % more energy efficient compared to other new homes which only meet the minimum code. Page 54: Public Housing Strategy. In this past year we have worked with the PIIA to shift a long-time Section 8 family from renting to full home ownership while rehabbing and increasing the value of an existing home. We have asked that this relationship continue and that other qualified families be channeled to us to qualify for home ownership. Page 57: Public Policy Impacts on Affordable Housing. Habitat has been encouraged to do more scattered site housing (see attached list of where Habitat homes are located) However, two major barriers exist: i) Nearly any residential property within two miles of the UI campus is not affordable to anyone but the over -priced student rental market (no mention is made of any affordable family housing in the downtown high-rise proposals and it is uncertain that the new area development south of downtown will create affordable home ownership options for lower income workers) . There have been few, if any, incentives put into place to entice new developments to increase density or create any set asides for affordable housing units (mention is made of Inclusionary Zoning but Habitat is unaware of any movement by the City Council to implement such a policy). Iowa Valley Habitat for Humanity has hired an outside consultant to document property values, property taxes, and crime rates in the neighborhoods where Habitat homes are built. This report will be completed by January and will be shared with the public at that time. "Identify potential redevelopment areas.... City initiatives typically include utility an infrastructure installation": Iowa Valley Habitat took out an option on a site on Miller Ave. to build up to io single family homes along with a for -profit builder who would build 25-35 apartment units. We approached the City for assistance with infrastructure (there is no storm water system in the street) and we found the City was not willing to assist in the costs of the public improvements. This site was near public transportation, the University (jobs) and shopping. This feels like a lost opportunity to create a collaborative public/private affordable housing site. This Miller Ave. site also would have honored the "Treat non-profit organizations that specialize in affordable housing as a special class of developer" section on page 61 where it recommends the City participate in the cost of financing infrastructure. In addition, we would ask the committee to recommend to the City Council the implementation of the "waive local fees for non-profit organizations that develop affordable housing (see page 61). Page go: "Commitment to affordable housing activities". Under the recommendation section, we urge the City to renew its commitment to the home ownership and new construction via Habitat or other non-profit developers. Page 91: "Housing Needs". Non -student renter households up to 50% of AMI is a high priority; elderly and small family owners of occupied housing are a high priority. Request for a Change in Priority: We believe that when the priority rankings were established originally, no one thought that it would be less expensive and less burdensome for a low income individual or family to own a home vs. renting. In Habitat's case, our monthly mortgage for a brand now, highly energy efficient home is $650-$675. This is about 50% less than what the same person(s) would pay for a subsidized rental. We request a change of priority from low to high for the CDBG/HOME scorning used by HCDC and the City Council to rank proposals. Iowa Valley Habitat is penalized with a low priority scoring on CDBG/HOME tunding even though we meet 2 out ofof the major objectives and all three of the specific outcomes. While it is true that most low income families cannot afford home ownership, Habitat's track record of only two foreclosures out of +75 homes is about twice as good as the national average of all home owners. Habitat's model of charging no interest on the mortgage makes the home affordable; resale restrictions keep it affordable for many years to come. Habitat's model of home ownership: -- leverages private funds 4:1, --puts all properties on the tax rolls, --trains families in fiscal management, --and helps lower income families build equity so that they can have a chance at being able to raise a family and retire someday without the worries of a landlord, rent payments or displacement. Are these not qualities which CITY STEPS should value and give a high priority? Iowa Valley Habitat for Humanity has built or is building homes on the following streets in Iowa City: Aster Ave. Coneflower Court St. Crescent St. Diana St. Dickenson Douglass Ct. (under construction) Fourth Ave. (under construction) G. Street H. Street Indigo Ct. Paddock Circle Prairie du Chien Rochester Ave. Whispering Meadows Whispering Prairie In addition, handicap ramps installations and weatherization have taken place across the entire city. Architect John F. Shaw AIA, LEE AP, INC Suite 305 221-Y Fast Washington st, Iowa City, IA 52240 October 15, 2012 iohn@Johnfshaw.com Housing and Community Development Commission voice City of Iowa City 319.338.4344 Re: Community Mental Health Center for Mid -Eastern Iowa —Accessibility Project — Revised Scope Dear Commission Members, We opened the single bid for the Community Mental Health Center Elevator project on Tuesday October 9; it was $ 245,900, which is $ 63,000 over budget. I don't believe it realistic to reduce the cost of the current project by $ 63,000 and still have a functional project. The Community Mental Health Center of Mid -Eastern Iowa would very much like to use the allocated funds to provide access to mental health services at their building at 507 East College Street, The CMHC proposes using the CDBG funds currently allocated to provide accessibility with a revised scope of project. The purpose of the project will remain unchanged from that originally presented to the Housing and Community Development Commission, the provision of accessible counseling rooms at 507 East College Street, the removal of a crumbling and inaccessible ramp and stairs, and the construction of a safe set of stairs to the first floor of the building, The scope of the project changes as follows: we propose removing the existing ramp and stairs, building new stairs on the west side of the building, removing the existing wood deck on the south side of the building, establishing a new primary entry to the south, adjacent to accessible parking, and renovating a portion of the lower level of the 507 building to provide an accessible restroom and two bright, well lit, attractive counseling rooms capable of accommodating all with limited mobility. An elevator is not included in our revised scope. The CMHC believes this project capable of satisfying the accessibility requirements at the 507 building, and to be consistent with the intent and purpose of the project as originally presented. Thank you for your consideration, John F, Shaw AIA, LEED AP Architect John F. Shaw AIA, LEED AP, INC x M 0 0l1l o LL W Z N O O O LO Z cO mI N V V : C i v3 69 ua Fn I _ N v J ✓+ J d L N O N E O N N LN L@ N J O O � E lm a E m L N m` a S U = = A all CL C G E E tf 0 0 0v.. a� I V m m (D (. 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