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Home My WebLink About02-19-2015 Housing and Community Development Commission� r rrr®�m� CITY OF IOWA CITY AGENDA Housing and Community Development Commission Senior Center, Assembly Room Please use the Washington Street entrance — all other entrances will be locked. 28 S. Linn Street Thursday, February 19, 2015 6:30 P.M. 1. Call meeting to order 2. Approval of the January 15, 2015 minutes 3. Public comment on topics not on the agenda 4. Staff/commission comment 5. Consideration of FY16 Aid to Agencies Funding — Recommendation to City Council 6. Discussion regarding applications for FY16 Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funding - Question/Answer Session 7. Adjourn MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION JANUARY 15, 2015 — 6:30 PM IOWA CITY PUBLIC LIBRARY, MEETING ROOM A MEMBERS PRESENT: Peter Byler, Andrew Chappell, Michelle Bacon Curry, Jim Jacobson, Dorothy Persson, Rachel Zimmermann Smith MEMBERS ABSENT: Christine Ralston, Angel Taylor STAFF PRESENT: KristopherAckerson, Marcia Bollinger, Tracy Hightshoe, Steven Rackis OTHERS PRESENT: Barbara Vinograde (Iowa City Free Clinic), Jane Drapeaux (HACAP), Albert Persson (Iowa City), Susan Blodgett (Elder Services Inc.), Ron Berry (MECCA), Becci Reedus (Crisis Center), Tracey Achenbach (Housing Trust Fund), Scott Hanson (Big Brothers Big Sisters), Crissy Canganelli (Shelter House), Brian Loring (NCJC) HCDC recommends the City Council adopt the amendments to the Iowa City Housing Authority's Housing Choice Voucher Administrative Plan as submitted. HCDC recommends the City Council approve the FY16 Aid to Agencies budget as seen below and, if funding is reduced, reduce each allocation over $15,000 proportionally. FY16 Aid to Agencies Budget Recommendation Agency FY15 Actual FY16 Request FY16 Recommendation 4C's Community Coord. Child Care $5,000 $15,000 Arc of Southeast Iowa $5,000 55,000 Big Brothers / Big Sisters $30,000 $33,500 530,Ooo Community Corrections Imp. Assoc. $0 $0 NA Com peer of Johnson County $0 $7,000 Crisis Center of Johnson County 540,000 $52,973 540,000 Domestic Violence Intervention Program ti45,000 $52,000 $45,000 Elder Services Inc 530,010 $55,000 S30,000 Families INC $5, 000 Fou - Oaks - PalProgram SO $0 NA Free Lunch Program $5,000 $15,000 $15,000 Goodwill of the Heartland $60,000 HACAP - Food Reservoir Back Pack Program $12,000 $28,000 Hou sing Trust Fund of1C S24,000 $24,000 S24,000 ICCSD Family Resource Centers 515,000 $37,500 $0 IC Free Medical/Dental Clinic $7,500 $15,Oo0 S15,000 Iowa Jobs for American's Graduates(JAC) $0 $10,000 IV Habitat for Humanity- Furniture Project $5,Ooo $40,Oo0 Johnson County Social Services NA $0 NA Junior Acheivement of Eastern Iowa $0 $4,499 Mayors Youth Employment Program NA $0 NA MECCA 515,000 $20,Oo0 S15,Oo0 Neighborhood Centers of IC $50,000 $75,000 $50,000 Pathv:a,s Adult Day Health Center $5,Oo0 $15,Oo0 S15,Oo0 Rape Victim Advocacy Program $10,000 $15,000 $15,000 Shelter House $45,000 $47,500 S45,000 Table to Table $0 $25,000 United Action for Youth $49,000 $65,000 $39,700 Total Request: $397,510 $721,972 $378,700 CALL TO ORDER: The meeting was called to order at 6:30 PM. APPROVAL OF NOVEMBER 20, 2014 MINUTES: Persson moved to approve the minutes of the November 20, 2014 meeting. Jacobson seconded. A vote was taken and the motion carried 6-0. •uu • u �• •ONIMMITC1=10131TR STAFF/COMMISSION COMMENT: Hightshoe introduced Kris Ackerson as the new staff contactfor HCDC. Hightshoe also reminded the Commission that the Housing and Public Facility applications are due tomorrow, January 16, 2015. .pie]01&11Q431:1 WillI110107-A AID] 01[*];F3'Z1I11t1I1I1]I0191101DIOJih41k■14111Xfby7Is] L41=111111011IR Hightshoe explained that in FY15 the Housing Fellowship was awarded $200,000 in HOME funds to acquire the land for a LITHTC project of 28 units, 10 to be HOME assisted. THE was unable to secure land so the project did not proceed. No funds were disbursed. Hightshoe explained that these funds are subject to the Uncommitted Funds policy. The policy allows for three options for HCDC consideration. 1. Existing projects that did not receive full funding will be considered. 2. Projects that had submitted applications but did not receive any CDBG or HOME funding will be considered. 3. New proposals will be considered. Hightshoe and Ackerson reviewed the FY15 applications and did not recommend funding or partially funding any of the existing allocations. Staff recommended placing the $200,000 in the pool of FY16 funds available for allocation. HCDC will be reviewing applications and making a funding recommendation on March 12. This issue had been discussed with THE earlier and they were encouraged to submit an application for a revised project by the CDBG/HOME application deadline. Bacon Curry moved to accept the staff recommendation to combine the returned FY15 funds into the FY16 funding pool to be considered for allocation by HCDC on March 12, 2015. Chappell seconded. A vote was taken and the motion carried 6-0. CONSIDER UPDATES & AMENDMENTS TO THE ICHA'S HOUSING CHOICE VENDOR (HCV) ADMINISTRATIVE PLAN: Zimmermann Smith asked Hightshoe what the Commission's role was in this process. Hightshoe explained that the Commission reviews housing policy and amendments and makes a recommendation to City Council concerning proposed changes or new policies.. Rackis explained that there were two proposals for HCDC consideration. While voucher participation is almost 99% there are some households who have difficulty finding an acceptable unit and their voucher expires after 180 days. The household is given 180 days to locate a unit; however time extensions may be granted. Rackis stated this proposal would allow the tenant 365 days to find an acceptable unit and submit a request for tenancy approval. He noted that even at the cap of 365 days, they can give an extension for reasonable accommodations. Rackis noted that in the 2013 Cook Rental Survey the vacancy rate was 0.067% in our community for a one bedroom unit. Rackis feels that the vacancy rate today is still less than 1 %. Due to a limited number of one -bedroom units, the new proposal would allow additional households to qualify for a two -bedroom unit, as opposed to a one -bedroom unit. Zimmermann Smith asked if the proposal was to change one bedroom eligible families to receive two bedroom vouchers, or just increase the payment standard for the one bedroom. Rackis answered they are proposing changing the subsidy standard. Under the current policy, a single adult with one child under the age of 4 would receive a one bedroom voucher, the proposal would allow a single adult with one child under the age of 1 to be issued a one bedroom voucher, so any single adult with one child over the age of 1 would be issued a two bedroom voucher. Zimmermann Smith asked if Rackis had data on how many applicants needed more than 180 days to find an acceptable unit and how long a tenant is on the waiting list. Rackis explained that the wait time is about seven months, and that 60-70% of the people that get a letter don't even respond or complete the appropriate paperwork. The extension of the voucher timeline is for people who already have received a voucher and are looking for an appropriate housing option. Zimmermann Smith asked how many of the people who use the vouchers end up staying in the area for a long period of time. Rackis stated the majority of people stay. There are only 19 families that have transferred their assistance out of the jurisdiction. Rackis also stated that about 88% of people who respond and initiate a search utilize their voucher. Chappell asked if under the current standards, if a single adult with a three year old child is issued a one bedroom voucher, do they then have to move to a two bedroom unit once the child is over the age of 4? Rackis answered that at the annual reviews the housing authority will look at the family's situation. If the child is over age 4, they can be issued a two bedroom, but it does not require that the family move, it is at the family's discretion if they want to find a two bedroom unit. Chappell was concerned that if the policy is changed would it cause current families with children ages 2 and 3 to move, and Rackis said no, they have that option, but they don't have to. Chappell moved to recommend that the City Council adopt the amendments to the Iowa City Housing Authority's Housing Choice Voucher Administrative Plan as submitted. Bacon Curry seconded. A vote was taken and motion carried 6-0. REVIEW OF THE FY16 ALLOCATION PROCESS & HOUSING PROFORMA: Hightshoe stated that tomorrow, January 16, 2015, is the deadline for the Housing and Public Facility applications, On Feb. 19 the commission will have the question/answer session with the applicants and then on March 12, HCDC will make a budget recommendation to City Council. City Council will review this recommendation at their May 5 meeting. Each year the housing pro forma is reviewed to aid in decisions when rental housing applications are reviewed. Once the applications are received they will be sent to Commission members. Staff reviews the sources and uses of funds. These two amounts should be the same. Sources of funds include how the organization will pay for the project costs, such as HOME funds, State funds, private loan, etc. The uses of funds includes how the money will be spent. This includes the cost of the land, construction, soft costs, etc. Additionally staff will look at the 20 year proforma that outlines the projected revenues and costs for the project based on City underwriting guidelines. If anything appears inaccurate, unreasonable or not in line with our guidelines, it will be noted in the project's staff report. Staff's goal is to ensure that the project receives enough income to cover expenses throughout the compliance period. If sufficient revenue exists, the City will require repayment if possible. Hightshoe included an example of a pro forma report in the packet for the Commission to review. DISCUSSION REGARDING FY16 AID TO AGENCIES FUNDING REQUESTS: Zimmermann Smith acknowledged that staff recommended a minimum allocation of $15,000 that was also stated in the Council approved 2016-2020 CITY STEPS plan. Hightshoe stated when agencies applied the guide encouraged agencies to apply for at least $15,000, but it was not a requirement. Zimmermann Smith suggested reviewing all the agencies that applied for at least $15,000 first. After that discussion, the commission would discuss those application under $15,000.Her next suggestion was to look at the applications that were fully funded in the last fiscal year as the starting point for discussion. The Commission members revealed how they individually made their determinations on funding. The Commission discussed and debated where to make adjustments in their tentative funding numbers. Persson voiced her concern that DVIP and Shelter House should receive equal funding as both are homeless shelters in this county. She stressed both need to cooperate and coordinate with each other and would be concerned if one were funded at a different level than the other. Jacobson asked if last year there was a situation where the Commission recommended no funding to an agency and the City Council changed it. Hightshoe stated that Elder Services was allocated a substantially lower amount than in previous years as the prior CITY STEPS plan had elder services as a medium priority. HCDC funded high priorities first and had limited funding for medium or low priorities. When Council reviewed, they restored some lost funding to Elder Services with additional general fund revenues. They did not reduce any other recommended allocation. Bacon Curry stated her support of IJAG because the program impacts a lot of kids who if not intervened upon at that point may end up needing some of these other services a few years down the road. Jacobson asked what the other potential funding streams for IJAG might be, and Bacon Curry believes the State of Iowa but was unsure of other sources. Byler questioned the funding of 4C's, and wondered why the Commission was not funding it. Zimmermann Smith stated that 4C's has an income stream due to licensing fees, etc. Hightshoe reminded the Commission that the numbers they are working with are estimates. The City budget has not been approved by the Council yet, nor has HUD finalized our entitlement amounts yet. Adjustments may need to be made after we have final numbers. Jacobson moved to recommend to the City Council approve the FY16 Aid to Agencies budget as seen below. If funding is reduced, then staff shall reduce each allocation over $15,000 proportionally. Persson seconded the motion. A vote was taken and motion carried 6-0. MONITORING REPORTS: • FY15 The Housing Fellowship — CHDO — Hightshoe stated they spend their money on their finance manager and have six full-time employees. FY15 Crisis Center — Aid to Agencies — Reedus said Crisis Center is using their Aid to Agencies money on their emergency assistance program. • FY15 Shelter House —Aid to Agencies — Hightshoe stated that Shelter House received money from Aid to Agencies and use the funds on operations/salaries. ADJOURNMENT Bacon Curry moved to adjourn. Byler seconded the motion. A vote was taken and motion carried 6-0. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION ATTENDANCE RECORD 2014-2015 NAME TERM EXP. 2120 316 4/17 6/19 9/18 11120 1115 2119 BACON CURRY, MICHELLE 9/l/2016 O/E X X X ---- O/E X CHAPPELL, ANDREW 9/l/2015 X X X X X O/E X VACANT 9/l/2016 --- --- --- --- --- --- --- JACOBSON, JIM 9/l/2017 X X X O/E X X X PERSSON, DOTTIE 9/l/2016 X X X X X X X BYLER, PETER 9/l/2017 --- --- --- --- X X X RALSTON, CHRISTINE 9/l/2015 X X X O/E X X O/E TAYLOR, ANGEL 9/l/2017 --- --- --- --- X X O/E ZIMMERMANN SMITH, RACHEL 9/l/2015 X X X O/E X X X Key: X = Present O = Absent O/E = Absent/Excused r CITY OF IOWA CITY --"'� MEMORANDUM Date: February 3, 2015 To: Housing and Community Development Commission From: KristopherAckerson, Community Development Planner Re: FY16 Question/Answer Session The February 19 meeting will be held at the Senior Center, Assembly Room (28 S. Linn St.) and it will be structured around the Question/Answer session with the applicants for FY16 CDBG/HOME funds. The staff reports for each application are enclosed. FY16 Question/Answer Session: As with last year, there will not be a scheduled time for each public facility and housing applicant. Instead, all applicants need to be present at 6:40 PM to answer questions from HCDC members or staff. As a reminder, this is not a time for presentations from applicants about their projects, but to address questions that HCDC members or staff have about the projects. The staff report includes concerns or issues that staff may have regarding the proposed project. Staff advised applicants not to submit written materials in response to staff concerns. If Commission members have the same concern or any other concern, please ask the applicant that evening. HCDC may ask applicants to submit additional information. If so, all information will be collected and staff will mail all HCDC members the materials after the meeting to ensure all commission members have the same information. If staff had any concerns about the capacity of an organization or administration of a previous project during the past five years, it is included in the report. Staff emailed the ranking sheets and proposed allocation forms to HCDC members previously. The forms are due back to staff on Friday, Feb. 25. If you prefer hard copies of the forms, please contact staff. The forms can be delivered, mailed, faxed or emailed to my attention. HCDC will meet March 12 to review the groupings and to make funding recommendations. The March 12 meetings will be at City Hall, Emma Harvat Hall. If you have any questions about these items or will be unable to attend, please contact us at Kristopher-Ackerson(GDlowa-City.org or Tracy- Hightshoe(cDIowa-City.org or at 319-356-5230. Please use the Washington St. entrance to the Senior Center r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page Number CHARM Homes LLC, Affordable Rental Housing ProjectAddress Acquisition of two properties containing four bedrooms each — eight units total; location to -be -determined Activity Type Housing CITY STEPS Priority Expanding Affordable Rental and Owner Housing Opportunities CITY STEPS Goal Rental housing development Achieved Beneficiaries 0-30% MFI — 75 percent 31 %-50% MFI — 25 percent Amount Requested $61,650 Zero interest; deferred payments for Years 1-10; payments of $1,000 Repayment Terms annually for Years 11-20; balloon of balance ($51,650) at the end of twenty years. Period of Affordability/ To be determined Compliance Period Percent of Project 14% Funded by CDBG/HOME Property Taxes Project will pay full property taxes 11 CITY OF IOWA CITY The applicant proposes to acquire two properties with four single room occupancy units each for a total of eight units. Targeted groups are the elderly and those with disabilities. Documentation of Project Need CITY STEPS and the 2008 Housing Market Analysis projected the affordable housing demand at 649 units (544 renter and 105 owner units). The most recent Cook Apartment Survey identified the vacancy rate at 1.8% or less for two- and three -bedroom units. This project will add eight units. The cost per unit is $7,706. Total project cost is $431,700. The project has a Debt Coverage Ratio of 12 in Year 1, but the application pro forma includes Project Budget $11,040 in'Other Income' which may not be HOME eligible income. With this Discussion income removed and the annual operating expenses reduced to the city's minimum underwriting guidelines this project may not meet our guidelines. More clarification needed. Project Coordination with Existing Services & The applicant has a growing network of relationships with area agencies, other Services Available organizations and private businesses to ensure the success of each project in the Community and of the families living in each home. Applicant History or Capacity to Successfully CHARM Homes LLC was incorporated in August 2011 and currently owns Complete the Proposed twenty-four rental units. CHARM Homes has successfully completed three Project CDBG/HOME projects to date. 1. What is the source of'Other Income' totaling $11,040 annually? This source comprises one -quarter of project revenue and may not be eligible for a SRO project- 2- What are the terms (interest rate and length) of the private loan? Summary of Items to be Addressed 3. What is the requested period of affordability? The project is requesting less than $15,000 per unit, which requires an affordability period of five years for HOME funds- 4- Units must be limited to frail elders or people with disabilities, otherwise the Affordable Housing Location Model will apply. 12 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page DVIPShelter — Communal Bathroom and Door Rehabilitation Number ProjectAddress DVIPShelter- confidential Activity Type Public Facility CITY STEPS Priority Domestic violence facility CITY STEPS Goal Facility improvements for service providers Achieved 0-30% MFI 76% Revised from application miscalculation Beneficiaries 31-50% MFI 15% 51-80% MFI 5% Over 80% MFI 4% Amount Requested $116,256.00 Repayment Terms Earned grant. Compliance period of 12 years. Period of Affordability/ N/A Compliance Period Percent of Project 92% Funded by CDBG/HOME Property Taxes Tax exempt 13 CITY OF IOWA CITY DVIP provides shelter, crisis intervention and support services to victims of domestic violence and their children. A critical aspect of the Documentation of program is to provide a safe environment while the client moves Project Need beyond the initial stages of crisis. The shelter has housed more than 7,000 women and children since the facility was constructed in 1993. Applicant requests funds to rehabilitate two communal (multi -stall) bathrooms and replace doors to bedrooms and offices. Project Budget CDBG funds make up approximately 92% of the project's budget. The Discussion applicant secured one (1) bid for the expenses stated in the budget breakdown. Project Coordination DVIP collaborates with a wide range of community groups working on with Existing Services & housing issues and support services, such as Goodwill of the other Services Available Heartland, Community Mental Health PATH, Department of Human in the Community Services, and others. Applicant History or DVIP has received a number of CDBG funding awards, including Capacity to Successfully Complete the Proposed funds to construct and subsequently rehab the current facility. In the Project past, DVIP has shown sufficient capacity to complete the projects. 1. What is the entity's capacity to raise match funds totaling $10,400? 2. Thirty-six percent of the clients served by applicant live outside of Iowa City. Has the applicant requested funds from other public Summary of Items and private entities? to be Addressed 3. All work will be subject to federal labor provisions (Davis Bacon — prevailing wages) and must comply with federal procurement standards (sealed bids — total project cost over $100,000) for the proposed work. 4. Staff recommends utilizing an architect. 14 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page Number Iowa Valley Habitat for Humanity — Land Acquisition ProjectAddress Two residential lots in Iowa City Activity Type Housing CITY STEPS Priority Expanding Affordable Rental and Owner Housing Opportunities CITY STEPS Goal Achieved Homebuyer activities/down payment assistance Beneficiaries 31-50% MFI 100% Amount Requested $80,000 Recapture: 100% loan repaid upon sale during the affordability Repayment Terms period; forgiven if homeowner maintains as their primary residence throughout affordability period. Period of Affordability/ Minimum period of affordability shall be 10 years. Compliance Period Percent of Project 29% Funded by CDBG/HOME Property Taxes Property owners will pay taxes 15 � �1114 CITY OF IOWA CITY Applicant will acquire two lots and construct two (2) homes to sell to income eligible homebuyers. Mortgage is typically around $675 due to Documentation of Project Need no interest. Fair Market Rent for a three bedroom home is $1,182. The homes are affordable to those at 31-50 /o median income. There is an unmet demand for affordable housing in Iowa City. Project Budget Discussion The cost per unit would be approximately $140,000. Project Coordination Iowa Valley Habitat for Humanity works with volunteers, donors, with Existing Services & Available agencies, churches, and businesses to build permanent, safe housing in theServicesCommunity in the Community for persons earning 31-50% of median family income. The following were compliance issues noted in the last five years: 2625 Indigo Court — CDBG Assisted. Home was to remain affordable to low income homebuyers until 9-8-2018. Habitat sold the house in 2003, and it was deeded back to Habitat in March 2010. Habitat then leased the house, without a valid rental permit, beginning 2011 until fall of 2013. Habitat never informed City staff of this, and staff Applicant History or discovered it when investigating a complaint on neighboring property. Capacity to Successfully City issued a Notice of Default and Opportunity to Cure to Habitat on Complete the Proposed 8-16-2013 and then demanded repayment of the CDBG funds. In Project October 2013 Habitat sold the property to Able LLC and repaid the CDBG loan. 2713 Whispering Meadows Drive — FY08 CDBG/HOME assisted home completed 6/28/2012 was not built per the City approved design. Habitat submitted a design approved by City staff; however was not built per the approved design. The home is not in compliance with the Affordable Housing Design Guidelines. 1. Does the applicant have the organizational capacity to complete two homes within the grant program requirements? Summary of Items to be Addressed 2. If funding is contingent upon lots outside of Census Tract 18, would the applicant proceed? 16 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page Number Mayor's Youth Empowerment Program Home Project ProjectAddress Acquisition of one property containing three bedrooms; location to -be - determined Activity Type Housing CITY STEPS Priority Expanding Affordable Rental and Owner Housing Opportunities CITY STEPS Goal Achieved Rental housing development Beneficiaries 0-30% median income - 100% Amount Requested $60,000 Repayment Terms 20-Year conditional occupancy loan Period of Affordability/ Compliance Period Requested 20 years, minimum compliance period is 10 years Percent of Project Funded by CDBG/HOME 30% Property Taxes Tax exempt 17 CITY OF IOWA CITY The applicant proposes to acquire a three bedroom home to provide housing for three persons with disabilities for their Residential Supported Community Living Program. Nearly all of the clients, due to their disabilities, fall below 30 Documentation of percent of the median income level. Project Need CITY STEPS has identified special needs and extremely low-income individuals as among those who face the greatest challenges in the housing market. This project will provide a supportive home for 3 such clients. The cost per unit is $66,666 and the total project cost is $200,000-The applicant will take out a $140,000 prime loan to cover the remainder of the Project Budget cost not provided by HOME funds. Debt coverage ratio is 12 and greater for Discussion Years 1-20. Reserves and operating expenses meet the minimum required by the City. Rents charged will be between $325 and $400 per month per tenant. Project Coordination Applicant has partnered with the Department of Human Services, and Mental with Existing Services & Health and Disability Services to provide services for persons with other Services Available disabilities. It has also partnered with other local agencies including the Iowa in the Community City School District, Kirkwood Community College, UAY, the ARC, Systems Unlimited, Hope House, etc. Applicant History or MYEP successfully completed the projects from previous funding Capacity to Successfully Complete the Proposed rounds and has the capacity to successfully complete this project. Project 1. Why does the project not include management fees? Summary of Items 2. Units must be limited to frail elders or people with disabilities; otherwise to be Addressed the Affordable Housing Location Model will apply- 3- What are the terms (interest rate and length) of the private loan? 18 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name & Page Broadway Neighborhood Center Improvements, Phase II Number ProjectAddress 2105 Broadway Street Activity Type Public Facilities CITY STEPS Priority Daycare facility CITY STEPS Goal Facility improvements for service providers Achieved 0-30% MFI 77% Beneficiaries 31-50% MFI 8% 51-80% MFI 6% Over 80% MFI 9% Amount Requested $94,140 Repayment Terms Grant Period of Affordability/ Compliance period of 9 years Compliance Period Percent of Project g1 5% Funded by CDBG/HOME Property Taxes Tax Exempt 19 CITY OF IOWA CITY Project consists of finishing the basement remodel to add an office and new entrance to the preschool room. Also includes repairs to the front door and parking lot. Documentation of NCJC provides education and support for low income children, youth, and Project Need adults. The demand for its services has been increasing in Southeast Iowa City. NCJC tried to get new space but was not successful. In FY13, it received CDBG funds to redesign the current space, but project costs were underestimated. In FY15, NCJC reapplied to complete the project. The project was not funded at that time, so NCJC is reapplying in FY16. CDBG funds make up approximately 925% of the project's budget. $8,700 of Project Budget the match is with other funds. Construction estimates were used for budget Discussion items. The majority of CDBG funds (79 /o) are going to relocate the entrance to the preschool classroom and build out the youth staff community corrections office. Project Coordination NCJC has a long history of coordinating with area non -profits, organizations, with Existing Services & neighborhood groups, neighborhood businesses and local community other Services Available leaders. There is no duplication of services as there are limited subsidized in the Community day care options in the area. NCJC has been successful in completing a variety of CDBG funded public Applicant History or service and public facility projects over the last 20 years. NCJC has Capacity to Successfully received a number of CDBG allocations for both the Pheasant Ridge and for Complete the Proposed the Broadway Neighborhood Center. Applicant operates with a staff of 70. Project They are accredited by the National Association for the Education of the Young Child (NAEYC). 1. All work will be subject to federal labor provisions (Davis Bacon — prevailing wages) and must comply with federal procurement standards (sealed bids — total project cost over $100,000) for the proposed work. Summary of Items 2 Staff recommends utilizing an architect. to be Addressed 3. Applicant has a history of completing projects; however timeliness has been an issue. Can applicant complete the project before June 30, 2016? 20 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page Number Systems Unlimited Inc., 2016 Iowa City Housing Project ProjectAddress Construction of one duplex with three bedrooms in each unit — six units total; location to -be -determined Activity Type Housing CITY STEPS Priority Expanding Affordable Rental and Owner Housing Opportunities CITY STEPS Goal Achieved Rental housing development for individuals with disabilities Beneficiaries 0-30% median income - 100% Amount Requested $250,000 Repayment Terms 20-Year loan at 0% interest; annual payment of $12,500 (full repayment) Period of Affordability/ 0 years required 2 Compliance Period Percent of Project 53% Funded by CDBG/HOME Property Taxes No answer provided — please explain. 21 CITY OF IOWA CITY The applicant proposes to construct an accessible duplex in Iowa City consisting of two units with three bedrooms each for persons with disabilities. Clients are generally eligible for Medicaid and housing assistance based Documentation of upon their disability and income. Homes for people with physical disabilities Project Need require customization (wheelchair accessibility, wider halls, etc.). CITY STEPS has identified special needs and extremely low-income individuals as among those who face the greatest challenges in the housing market. This project will provide a supportive home for six such clients. The cost per unit is $79,167 and the total project cost is $475,000. The applicant will take out a $200,000 loan and seek donations totaling $25,000 Project Budget to cover the remainder of the cost not provided by CDBG/HOME funds. Debt Discussion coverage ratio is 12 and greater for Years 3-20. Reserves and operating expenses meet the minimum required by the City. Rents will be approximately $350/bedroom/month. Project Coordination Applicant has partnered with the Department of Human Services, and Mental with Existing Services & Health and Disability Services to provide services for persons with other Services Available disabilities. It has also partnered with other local agencies including the Iowa in the Community City School District, Kirkwood Community College, UAY, the ARC, Systems Unlimited, Hope House, etc. Systems Unlimited has been operating in Iowa City since 1971 serving 300 people with intellectual and developmental disabilities. Applicant History or The applicant currently owns fifteen single family homes in Iowa City. Capacity to Successfully Complete the Proposed Systems Unlimited was awarded $384k in program year 2011 but the Project funds were not utilized. In 2014, HUD gave Systems Unlimited a "Superior" rating. 1. Would this property pay property taxes or fees in lieu of taxes? (Not answered in application) 2. Is the applicant in compliance with all federal, state, and local laws, rules, and regulations, including CDBG and/or HOME funded projects? Summary of Items (Not answered in application) to be Addressed 3. If partial funds are awarded, will the project continue? (Not answered in application) 4. Units must be limited to frail elders or people with disabilities, otherwise the Affordable Housing Location Model will apply. 22 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page Number The Housing Fellowship — CHDO Operation Funds ProjectAddress 322 E 2nd Street, Iowa City Activity Type Housing CITY STEPS Priority Preserve existing affordable rental and owner housing units CITY STEPS Goal Achieved Increase the capacity of non-profit housing providers that preserve existing affordable rental housing Beneficiaries Agency -wide. Owns and manages 165 affordable rental homes. Amount Requested $15,000 or 5% of the final HOME entitlement allocation. Repayment Terms Grant Period of Affordability/ Compliance Period N/A Percent of Project Funded by CDBG/HOME 9,5% of administrative budget Property Taxes Tax Exempt 23 � �1114 CITY OF IOWA CITY The Housing Fellowship (THF) has been a certified CHDO since 1992. THE now owns and manages 165 affordable rental units occupied by low-income households, developed and sold 17 owner - occupied homes into a land trust to ensure permanent affordability and administers a revolving loan fund for very low-income renters to pay for security deposits. The financial management responsibilities Documentation of have grown overtime. Project Need THE currently has 6.6 full time equivalent jobs. The CH DO funds requested will help THE achieve financial stability and cover operating costs to plan housing projects. The CITY STEPS 2016-2020 encourages the City to increase the capacity of non-profit housing providers that preserve existing affordable rental housing. The project is an operational grant allowed under the HOME program. Project Budget The HOME program caps CHDO operating expense to 5% of the Discussion HOME allocation. Funds allocated for CHDO operating expenses are not an eligible cost for CH DO set -aside funds. Project Coordination The applicant has a long history of working with a variety of agencies, with Existing Services & organizations and private businesses. THE is a partner with the City other Services Available of Iowa City for the UniverCity Neighborhood Partnership Program in the Community and approved developments in Riverfront Crossings. Applicant has successfully managed hundreds of thousands of dollars Applicant History or of CDBG and HOME funded projects. THE has experience and a Capacity to Successfully Complete the Proposed successful track record with the acquisition, construction and Project management of affordable housing. THE qualifies as a Community Housing Development Organization (CHDO). Summary of Items to be Addressed No questions at this time. 24 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page The Housing Fellowship, Affordable Rental Housing Number Acquisition of three properties 725 Davenport Street (1 dwelling unit) Two (2) duplexes — locations to -be -determined (4 dwelling units) Project Address Rehab of two properties currently owned by THE 621 Keokuk Court (1 dwelling unit) 446 Hawaii Court (1 dwelling unit) Activity Type Housing CITY STEPS Priority Expanding Affordable Rental and Owner Housing Opportunities CITY STEPS Goal Rental housing development Achieved Beneficiaries 0-60% MFI Amount Requested $200,000 20-Year balloon payment at 0% interest; annual payment of $5,000 Repayment Terms with a balloon of $100,000 at the end of twenty years Period of Affordability/ Requested 20 years; minimum compliance period is 10 years. Compliance Period Percent of Project 31 % Funded by CDBG/HOME Property Taxes No property taxes nor Payment In Lieu of Taxes will be paid 25 CITY OF IOWA CITY The applicant proposes to acquire five dwelling units and rehab two dwelling units for residents making up to 60% of the median family income. Documentation of CITY STEPS and the 2008 Housing Market Analysis projected the affordable Project Need housing demand at 649 units (544 renter and 105 owner units). The most recent Cook Apartment Survey identified the vacancy rate at 1.8 /o or less for two- and three -bedroom units. This project will addfive dwelling units and maintain two affordable rental units. The cost per unit is $93,157. Total project cost is $652,100. The submitted pro forma has a debt coverage ratio is 1.17 (Year 1) to 1.53 (Year 20) but the operating expenses are three percent lower than the minimum amount as required by the City. Staff calculated the Debt Coverage Ratio for the project Project Budget using the minimum operating expenses and found the ratio meets the 12 Discussion benchmark in Year 4 rather than Year 3. Since two of the properties are duplexes (e.g. shared roof for two units), staff anticipates the project will generate adequate cash flow to be viable. Before committing funds, the City will conduct an underwriting review based on the City's established criteria. Project Coordination The applicant has a long history of working with a variety of agencies, with Existing Services & organizations and private businesses to ensure the success of each project other Services Available and of the families living in each home. THE owns and manages 95 rental in the Community units and manages 70 LIHTC rental units. Of the 165 homes, THE constructed 93. Applicant has successfully managed hundreds of thousands of dollars Applicant History or of CDBG and HOME funded projects. THE has experience and a Capacity to Successfully successful track record with the acquisition, construction, and Complete the Proposed management of affordable housing. THE qualifies as a Community Project Housing Development Organization (CHDO). Summary of Items to be 1. Is the estimated cost ($91,560/unit) sufficient to acquire five units? Addressed 26 r .t rkl CITY OF IOWA CITY FY16 CDBG/HOME APPLICANT REVIEW Project Name &Page Number The Housing Fellowship, Sabin Townhomes ProjectAddress 509 S. Dubuque Street Activity Type Housing CITY STEPS Priority Expanding affordable rental housing opportunities CITY STEPS Goal Achieved Rental housing development Beneficiaries 61-80% median income - 100% Amount Requested $300,000 Repayment Terms 20-Year balloon payment at 0% interest Period of Affordability/ Compliance Period HOME regulations require 20 years Percent of Project Funded by CDBG/HOME 52% Property Taxes Tax Exempt 27 CITY OF IOWA CITY The applicant proposes to acquire three newly constructed two -bedroom townhomes in Sabin Townhomes, a 28-unit condo development in Riverfront Crossings. The applicant was approached by the City to purchase these units in a residential TIF development where 10% of the units shall be Documentation of affordable for households at 80%AMI. Project Need CITY STEPS and the 2014 Housing Market Analysis Update note that proportionally more single family housing permits have been issued than multifamily permits since 2007. The most recent Cook Apartment Survey identified the vacancy rate at 0.92% for two bedroom units in the Pentacrest zone. This project will contribute 3 affordable rental units near downtown. The cost per unit is $190,000. Total project cost is $572,877. The City has proposed using General Obligation Bond funds of $198,927 for the project. Debt coverage ratio is 12 and greater for Years 4-20. Reserves comply with Project Budget the minimum required by the City, but operating expenses are 65% of the Discussion required amount. Please explain. Rents charged are $753 to be affordable to 2-person households with an income at 50%AMI. Rents are lower than the 2014 HOME FMR at $851. Rents could be raised to cover increased operating costs if necessary and still be affordable. Project Coordination The applicant has a long history of working with a variety of agencies, with Existing Services & organizations and private businesses to ensure the success of each project other Services Available and of the families living in each home. THE owns and manages 95 rental in the Community units and manages 70 LIHTC rental units. Of the 165 homes, THE constructed 93. Applicant History or Applicant has successfully managed hundreds of thousands of dollars of Capacity to Successfully CDBG and HOME funded projects. THE has experience and a successful Complete the Proposed track record with the acquisition, construction and management of affordable Project housing. THE has qualified as a Community Housing Development Organization (CHDO) in Iowa City since 1996. 1. A Debt Coverage Ratio of 120 must be achieved by Year 3, but the pro forma shows it in Year 4. 2. The secondary mortgage payment amount changes during the twenty year period — please explain. Summary of Items to be Addressed 3. The pro forma lists operating expenses as $5,355, but the minimum required for this project is $8,250. The project is new construction and condominium units, possibly explaining the reduced maintenance. Rents are below the FMR for HOME projects. Charging full home rent supports the $2,895 difference with a 120 DCR achieved in 3 years. 28 =_-•� CITY OF Iowa CITY I. Need Priority (max. 20 points) Meets klentified Need in CITY STEPS? If Yes: Howwell has the applicant documented the ability of the pmjectto meetthis 1 need? It. Leveraging ResouroesBudget(max. 25 points) _ Project Budget is Justified? If Yes: 1 Howwelldoes the organization and/or project leverage human resources to utilitre community parberships (volunteers, collaboration)? 2 Projectlevemges private financial resources, including in -kind? 0-25%Private Funds (0-1 points) 26 - 50% Private Funds (24 points) 51 to 75% Private Funds (5-7 points) 76 to 99% Private Funds (8-10 points) 3 Has applicant documented adequate efforts to secure otherfunding? III. Feasibility/Need forSubsidy (max 20 points) 1 Howwell has the applicant demonstrated the requested level of public subsidy is necessary (private/other funds not availabe)? 2 Does the projectschedule adequately demonstrate the projectwill be completed wthin the required time period? 3 Howwelldoes the proposed project budgetestablish the pmjectis viable w thout further subsidy? IV ImpactBenefit(max. 30 points) 1 What primary level of low -median income persons are targeted? 2 How i nnovative of a solution to the problem does the project represent? 3 Project pays full property taxes (5 pts) ora payment in lieu of/reduced taxes (3 pts)? 4 Does the project propose to utilize a site that is appropriate based upon City policies and/or community interests? V CapacityMistory(max. 5 points) Applicant can maintain regulatory compliance through the project, including the affordability period? If Yes: 1 Has applicant demonstrated strong financialskills oranangements for necessary financial management and established the administrative capacity to successfully complete this project? v rn E g E o m D = n O cm E w w w E Q O 2 E — F m c �2 N 0 cw m U `c K N LL Q T LL LL Points M x M Yes or No? (0-20 Points) Subtotal 0 0 0 0 0 0 0 Yes or No? (0-10 Points) (0-10 Points) (05 Points) Subtotal 0 0 0 0 0 0 0 (0-8 Points) (04 Points) (0-6 Points) Subtotal 0 0 0 0 0 0 0 (030%=10 pts 3150%=6 pts 5150%=4 pts 61-80%=lpts) (0-10 Points) (05 Points) (05 Points) Subtotal 0 0 0 0 0 0 0 Yes or No? (05 Points) Subtotal 0 0 0 0 0 0 0 Maximum Points: 100 GRAND TOTAL 0 0 0 0 0 0 0 29 wYw� W C CITY OF IOWA CITY w U 0 0 O U L N O v L E a O W 0 Z I. Need Priority (max. 20 points) Meets Identified Need in CITY STEPS? Yes or No? Yes Yes If Yes 1 Has well has the applicant documented the ability ofthe project to meet this need? (0-20 Points) Subtotal 0 0 II. Leveraging Resources/Budget (max. 25 points) Project budge is justified? Yes or No? If Yes 1 How well does the organization and/or project leverage human (0-10 Points) resources to utilitze community partnerships (volunteers, collaboration)? 2 Project leverages private financial resources? (0-10 points, See Below) (0-10 Points) 0 -25% Private Funds (0-1 points) 26 - 50% Private Funds (2-4 points) 51 to 75% Private Funds (5-7 points) 76 to 99% Private Funds (8-10 points) 3 Has applicant documented adequate efforts to secure other funding? (0-5 Points) Subtotal 0 0 III. Feasibility/Need for Subsidy (max 20 points) 1 How well has applicant demonstrated the requested level (0-8 Points) of public subsidy is necessary (private/other funds not availabe)? 2 Does the project schedule adequately demonstrate the projectwill be completed within (0-4 Points) the required time period? 3 How well does the proposed project budget establish the project is viable without further (0-8 Points) subsidy Subtotal IV Impact/Benefit(max. 30 points) 1 What primary level of ow -median income persons are targeted? (0-30%=10 pts 31-50%=6 pts 51-60%=4 pts 61-80%=1 pts) 2 How innovative of solution to the problem does the project represent? (0-10 Points) 3 Project (or related facility) pays full propertytaxes (5 pts) or a payment in lieu of/reduced (0-5 Points) taxes (3 pts)? 4 Does the project propose to utilize a site that is appropriate based upon Citypolicies (0-5 Points) and/or community interests? Subtotal V Capacity/History (max.5 points) Applicant can maintain regulatory compliance through the project, including the Yes or No? affordability period? If Yes: 1 Has applicant demonstrated strong financial skills or arrangements for necessary (0-5 Points) financial management and established the administrative capacityto successfully complete this project? Subtotal 0 0 HCDC Member: GRAND TOTAL: 981