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HomeMy WebLinkAbout04-16-2015 Housing and Community Development CommissionI r 1 +. memo � CITY OF IOWA CITY AGENDA Housing and Community Development Commission Thursday, April 16, 2015 6:30 P.M. Helling Conference Room, City Hall 410 East Washington Street 1. Call meeting to order 2. Approval of the March 12, 2015 minutes 3. Public comment for topics not on the agenda 4. Staff/Commission Comment 5. Review and consider recommendation to City Council on approval of FY16 Annual Action Plan 6. Review and consider recommendation to City Council on approval of FY15 Annual Action Plan — Amendment 1 7. Review and consider recommendation to City Council on approval of the FY2016-2020 CITY STEPS (Consolidated Plan) Amendment #1 8. Discussion of FY15 projects that have not complied with the 'Unsuccessful or Delayed Projects Policy' 9. Review allocation process for CDBG, HOME, and Aid to Agencies funding and consider creating sub -committee 10. Monitoring Reports • FY15 Shelter House —Tenant Based Rental Assistance (Ralston) • FY15 The Housing Fellowship — Rental Housing (Ralston) • Discussion of monitoring process 11. Adjournment Housing and Community Development Commission March 12, 2015 Page 2 of 18 MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION MARCH 12, 2015 - 6:30 PM MEETING ROOM A, IOWA CITY PUBLIC LIBRARY PRELIMINARY MEMBERS PRESENT: Peter Byler, Andrew Chappell, Michelle Bacon Curry, Jim Jacobson, Bob Lamkins, Christine Ralston, Dorothy Persson, Rachel Zimmermann Smith MEMBERS ABSENT: Angel Taylor STAFF PRESENT: Kristopher Ackerson, Tracy Hightshoe OTHERS PRESENT: Mark Patton, Michelle Lloyd, Kari Wilken, Al Persson, Roger Lusala, Casey Westhoff, Bruce Teague, Diane Dingbaum HCDC recommends approving the FY16 Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) budget recommendations to City Council as presented in the spreadsheet below with the condition that Habitat for Humanity shall not purchase land within Census Tract 18. HCDC Percent of HCDC Final HCDC Housing Requested Allocation Request Score Recommendation THF- CHDOOperating $ 16,000 $ 13,089 82% 72 $ 16,000 Habitatfor Humanity $ 80,000 $ 54,439 68% 76 $ 61,956 CHARM Homes $ 61,650 $ 56,965 92% 75 $ 61,650 Mayor's Youth Employment Program $ 60,000 $ 48,000 80% 71 $ 60,000 Systems Unlimited Inc $ 250,000 $183,101 73% 70 $ 184,000 THF - Rental Acquisition & Rehab $ 200,000 $ 98,889 49% 69 $ 49,998 THF- SabinTownhomes' $ 300,000 $276,667 92% 67 $ 300,000 Subtotal "" $ 967,650 $731,150 $ 733,604 Public Facilities Domestic Violence Intervention Prog $ 116,256 $106,130 91 % 66 $ 116,256 Neighborhood Centers ofJC $ 94,140 $ 88,690 94% 63 $ 94,140 Subtotal $ 210,396 $194,819 $ 210,396 TOTAL: 1 $1,178,046 $925,969 $ 944,000 Housing and Community Development Commission March 12, 2015 Page 3 of 18 HCDC recommends approving Habitat's request for $100,000 for down payment assistance for 10 dwelling units on the 2200-block of Taylor Drive being sold by Iowa Valley Habitat for Humanity to first-time homebuyers earning less than 80 percent of the median household income. The $100,000 budgeted for two FY16 UniverCity homes, would be diverted to this project. CALL TO ORDER: Zimmermann Smith called the meeting to order at 6:30 PM. APPROVAL OF FEBRUARY 19, 2015 MINUTES: Chappell moved to approve the minutes of the February 19, 2015 meeting. Persson seconded. A vote was taken and the motion carried 8-0. None. RECOMMENDATION TO CITY COUNCIL REGARDING APPLICATIONS FOR FY16 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) FUNDING: Zimmermann Smith began the conversation stating there were fewer applicants this year than in previous years and suggested that if there were a majority of the Commission members that voted for full funding for an application, that amount be disbursed and see what the amount remaining is available for funding partial projects for the rest of the applications. Hightshoe noted that there is $944,000 available to date, $200,000 of that is returned funds from last year from a Housing Fellowship project that didn't proceed. Hightshoe noted that $680,000 must be allocated to HOME eligible activities. Of the HOME eligible activities, all are CDBG eligible except for the CHDO operating, which has to be HOME funding. The only CHDO that qualified for HOME funding is the Housing Fellowship, so $50,000 has to go to the Housing Fellowship as the only CH DO. CH DO operating does not qualify as part of the $50,000 CH DO set aside, so at least $50,000 minimum has to go to the rental acquisitions and Sabin Townhome projects. Zimmermann Smith stated the applications that the majority voted for full funding were: CHDO Operating ($16,000); Charm Homes ($61,650); Mayor's Youth Employment Program ($60,000); The Housing Fellowship — Sabin Townhomes ($300,000); DVIP ($116,256); and Neighborhood Centers of Johnson County ($94,140). Byler asked if any projects come in under budget, does the money get returned to the City for reallocation the next year. Hightshoe confirmed it would unless there were sufficient funds to do a mid -year funding round. If there were $75,000 or $100,000 available the City could advertise again for applications. Housing and Community Development Commission March 12, 2015 Page 4 of 18 Zimmermann Smith then asked the Commission to discuss the remaining applications. Habitat for Humanity was discussed first. Three members of the Commission voted for full funding. Chappell noted that five members voted for at least $60,000 in funding. Bacon Curry questioned the concerns listed in the staff report and asked how other members of the Commission voted for funding even with those concerns. Chappell noted that time was on Habitat's side; there had not been issues for a couple of years and it has been able to operate a lot of properties without funding the past couple of years and have continued to work with City staff well. Hightshoe confirmed that staff has not had any recent concerns in the past two years. Zimmermann Smith suggested allocating $60,000 but Ralston suggested allocating $40,000 because it would be one home, $60,000 would not be enough for two. Mark Patton (Habitat for Humanity) explained that first there was a concern raised by the City for Habitat to find lots outside of the south side of Iowa City so they have found two lots on Prairie du Chien that are possibilities and cost about $45,000 each. So $60,000 would not be enough to buy both, but would help. He also felt Habitat could raise the remaining funds to get be able to purchase both lots. Zimmermann Smith suggested allocating the $45,000 to Habitat with the caveat that the lot cannot be on the south side of Iowa City. Persson noted that she thought to allocate full funding for Habitat because she believes the Commission needs to support affordable housing and Habitat for Humanity is affordable housing. Chappell noted again that five members of the Commission voted for at least $60,000 in funding and noted the highest overall average score from everyone was this project. Patton noted that due to the change in the HOME rules, Habitat can no longer "stock pile" lots so they can only purchase what they can build in a year, and two homes is not a challenge for one year, they are able to do four or five a year. Jacobson asked if they purchased a lot for $45,000 could they use the rest of the funding for construction costs. Hightshoe noted they could use the remaining for construction if they were not able to achieve the other acquisition within the year. Patton stated that if they used the extra funding for construction rather than acquisition it would throw off the ratios on the home for costs, but it could work. Zimmermann Smith opened the discussion on the next application, Systems Unlimited. All members allocated at least $100,000. Chappell noted that he did not agree with The Housing Fellowship purchasing the UniverCity properties. Hightshoe noted that the Commission can allocate funding with a stipulation that they cannot use the funding on that particular property. Chappell stated that if the allocations are $100,000 for The Housing Fellowship and $125,000 for Systems that is treating both applications similarly as both would be receiving half of what they requested. There is not enough to fully fund both of them, but both projects could get things done with partial funding. Bacon Curry noted that five members voted to allocate more to Systems. She also stated her concern with The Housing Fellowship rental acquisition appeared to create an application just to re -coup the $200,000 they were unable to use last year. Bacon Curry noted that the rehab Housing and Community Development Commission March 12, 2015 Page 5 of 18 portion of the application, the $25,000 per unit, was reasonable and would aid in keeping the rental housing already owned in good condition. Lamkins asked what the rehab portion would be. Hightshoe noted it would be $24,999 each for a total of $48,998. Lamkins agreed to fund the rehab portion but not the UniverCity acquisition portion. Zimmermann Smith stated the allocation for Housing Fellowship rehab would be $48,998 and the Sabin Townhomes would be $300,000. Therefore Systems would receive $184,900 and the balance would be allocated to Habitat for Humanity for an allocation of $61,956. Chappell stated he still feels there is too large of a gap in funding between Systems and The Housing Fellowship. The Commission discussed the scoring system used for the applications and the need for possible review in the future. Bacon Curry moved to approve the FY16 Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) budget recommendations to City Council) as presented in the spreadsheet with the condition that Habitat for Humanity shall not purchase land within Census Tract 18. Lamkins seconded the motion. A vote was taken and the motion carried 8-0 RECOMMENDATION TO CITY COUNCIL REGARDING DOWN PAYMENT ASSISTANCE FOR PROPERTIES ON THE 2200-BLOCK OF TAYLOR DRIVE: Ackerson presented the staff report. On Tuesday, March 10, 2015, Iowa Valley Habitat for Humanity notified city staff that it had signed a 60-day purchase agreement for five rental duplexes (i.e. ten dwelling units) on the 2200-block of Taylor Drive. The properties are located approximately two blocks north of Wetherby Park. Habitat for Humanity plans to convert 2- bedroom rental units with unfinished basements into 4-bedroom homes. Once the rehabilitations are complete (starting in October 2015), Habitat proposes selling the homes to families who are first time homebuyers earning less than 80 percent of the area median income. At this time, Habitat is negotiating with three lenders for the purchase funds and has submitted an application for funding from the Housing Trust Fund of Johnson County to rehabilitate the homes. To ensure the affordability of the units, Habitat is asking for city funds totaling $100,000 ($10,000 per unit) to be used for down payment assistance. Since this project was not budgeted by the City for fiscal year 2016, the City could transfer the $100,000 currently budgeted for the UniverCity Program to this Habitat for Humanity project. Whereas the UniverCity program funds would convert two units from rental to owner -occupied, this proposed project would convert ten units. This project would enhance the City's efforts to stabilize the neighborhood. If approved, city funds would be only used for down payment assistance to the homeowner to purchase the completed property. Housing and Community Development Commission March 12, 2015 Page 6 of 18 The Commission discussed how the units would be converted from rentals to single family owner -occupied homes. Some Commission members were confused about the number of lots and dwelling units. Ackerson and Patton clarified the units would be duplex/zero lot line homes, so two single family homes on one lot each. And by finishing the basements in each home, it would add two bedrooms to each home so each duplex will be a four bedroom duplex. Patton stated the homes would sell for approximately $115,000 each when completed. Persson questioned if there were water concerns/issues for the basements. Patton stated the few units he has visited have sump pumps and no water issues. Hightshoe noted that neighbors had come to the City in support of this project. Patton confirmed that some concern was stated regarding maintaining of the properties, but the applicants for these properties will be within 80% of the median income, working families, willing to take care of the properties. Lamkins asked about the down payment of $10,000 — stating that if the homes were to sell for $115,000 it would be nice for the down payment to be $11,500 or 10% which is what most lenders will require for the loans. Hightshoe stated that the City is only providing down payment assistance. Habitat has to purchase the properties, rehab them, find buyers, and only if all that is successful will the City be involved. If that does not happen, the City is not out any money. Bacon Curry noted that although this is a great project, it invests money into a part of Iowa City that is already known for low income housing and taking money away from the UniverCity project and putting low income housing in other parts of the City. Hightshoe explained that the UniverCity Program doesn't always mean low income — it is intended to stabilize neighborhoods Some UniverCity homes are sold to residents that make more than the median household income. Chappell noted that this project would bring neighborhood stabilization to the Wetherby Park area and the homes will be a huge bang for the buck. Chappell moved that the City Council approve Habitat's request for $100,000 for down payment assistance for 10 dwelling units on the 2200-block of Taylor Drive being sold by Iowa Valley Habitat for Humanity to first-time homebuyers earning less than 80 percent of the median household income. The $100,000 budgeted for two FY16 UniverCity homes, would be diverted to this project. Bacon Curry seconded the motion. A vote was taken and motion carried 8-0 ADJOURNMENT: Jacobson moved to adjourn. Lamkins seconded the motion. A vote was taken and motion carried 8-0. Housing and Community Development Commission March 12, 2015 Page 7 of 18 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION ATTENDANCE RECORD 2014-2015 NAME TERM EXP. 3/6/14 4/17/14 6/19/14 9/18/14 11/20/14 1/15/15 2/19/15 3/12/15 BACON CURRY, MICHELLE 9/1/2016 X X X ---- O/E X X X BYLER, PETER 9/1/2017 --- --- --- X X X X X CHAPPELL, ANDREW 9/1/2015 X X X X O/E X X X JACOBSON, JIM 9/1/2017 X X O/E X X X X X LAMKINS, BOB 9/1/2016 --- --- --- --- --- --- X X PERSSON, DOTTIE 9/1/2016 X X X X X X X X RALSTON, CHRISTINE 9/1/2015 X X O/E X X O/E X X TAYLOR, ANGEL 9/1/2017 --- --- --- X X O/E X O ZIMMERMANN SMITH, RACHEL 9/1/2015 X X O/E X X X X X Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant CITV OF [OWA CITV CITY OF IOWA CITY MEMORANDUM Date: April 9, 2015 To: Housing and Community Development Commission From: Kristopher Ackerson, Community Development Planner Re: Agenda items Thank you for your time and dedication during the funding allocation process. The following is a short description of the April agenda items. Review of the FY16 Annual Action Plan and Proposed FY15 Plan Amendment #1 At your March 12 meeting, HCDC approved the FY16 CDBG/HOME budget recommendations. Staff is recommending a change in the budget due to issues with our HOME commitment deadline. The Housing Fellowship returned $200,000 in FY15 HOME funds. These funds were reallocated in our FY16 funding round, however they remain FY15 funds. HOME requires the City to commit these funds to eligible activities within 12 months. Staff is recommending that The Housing Fellowship rehabilitation project and the Habitat HOME projects be removed from the FY16 budget and included in a FY15 Annual Action Plan amendment (attached) as these two projects can quickly proceed. As a reminder, to "commit" funds under the HOME program requires the following: location identified, environmental review, market analysis, underwriting review, and an agreement entered. This is a procedural change with the same projects as identified in your March 12 budget which will allow us to maintain compliance with HOME commitment deadlines. As you may know, the budget is only one part of the Annual Action Plan. The Plan includes the budget for CDBG & HOME funds, a description of the projects and activities to be funded, and several HUD -required documents. The 30-day public comment period began on April 3 and runs through May 5. The City Council is scheduled to hold a public meeting and formally approve the Plan on Tuesday, May 5. Public copies are available at the Iowa City Public Library, Neighborhood Services Department at City Hall, and online at www.icgov.org/actionplan. Review and consider recommendation to City Council on approval of the FY2016-2020 CITY STEPS (Consolidated Plan) Amendment #1 City staff are proposing an amendment to the 2016-2020 Consolidated Plan (known as, CITY STEPS) to utilize $50,000 in Year One (Fiscal Year 2016) for sidewalk curb cuts in the downtown commercial district to improve accessibility and prevent slum and blight (attached). The Consolidated Plan currently apportioned these funds for building fagade improvements and micro -enterprise assistance. This new activity will also be an eligible activity from Year Two to Year Five under the economic development set -aside. Although staff does not anticipate allocating significant funds to Public Facilities and Infrastructure Improvements due to the nature of CDBG funds, access for pedestrians and persons with disabilities is a community need and frequently mentioned as an obstacle for low income residents to achieve their highest degree of self-sufficiency. Discussion of FY16 CDBG projects that have not complied with the `Unsuccessful or Delayed Projects Policy' Staff will identify the projects that have not spent at least 50% of their CDBG award by March 15 and provide project updates. The 'Unsuccessful or Delayed Projects Policy' allows HCDC to recommend the recapture of unspent funds, or HCDC may allow the recipient to retain the project funds. Review of Allocation Process The commission may form a subcommittee to draft a recommendation on changes, if sufficient interest. Monitoring Reports Please see agenda for projects to cover and be prepared to consider rotating invitations to project sponsors to attend HCDC meetings. If you have any questions about the agenda, or are unable to attend the meeting, please contact Kris Ackerson at 356-5247 or by email at kristopher-ackerson(cDiowa-city.org. The City of Iowa City proposes an amendment to the 2016-2020 Consolidated Plan (known as, CITY STEPS) to utilize $50,000 in Year One (Fiscal Year 2016) for sidewalk curb cuts in the downtown commercial district to improve accessibility and prevent slum and blight. The Consolidated Plan currently apportioned these funds for building fagade improvements and micro -enterprise assistance. This new activity will also be an eligible activity from Year Two to Year Five under the economic development set -aside. At their April 12, 2015 meeting, the Housing and Community Development Commission (HCDC) will discuss this proposed amendment and consider a recommendation to the City Council. Although the commission does not anticipate allocating significant funds to Public Facilities and Infrastructure Improvements due to the nature of CDBG funds, access for pedestrians and persons with disabilities is a community need and frequently mentioned as an obstacle for low income residents to achieve their highest degree of self-sufficiency. Also, the Consolidated Plan is a document that other city departments and outside agencies use to document need for projects funded with local, state, or other federal funding sources. Public Facilities and Infrastructure Improvements 03K Street Improvements Plan to Fund: Yes Funds Source: CDBG SUBSTANTIAL AMENDMENT #1 - May 2015 Iowa City FY15 ANNUAL ACTION PLAN Neighborhood and Development Services CDBG - Community Development Block Grant ROME. - HOME Investment Partnerships Funds I CITY OF IOWA CITY Haighhorhood Services 410 E. Washington St, Iowa Ely. Id 52240 Phann:31g.355.5230 "wicgur my/cnm der MAY 2014 Substantial Amendment #1 FYI Annual Action Plan Amendment: City of Iowa City staff proposes amending the FY15 Annual Action Plan due to the failure of two projects to proceed. United Action for Youth voluntarily terminated their $25,000 CDBG agreement for facility rehabilitation as they are considering moving to another site. The Housing Fellowship declined the $200,000 HOME award as they were unable to secure a site for a Low Income Housing Tax Credit application. No funds were drawn for either project. The CDBG funds will be allocated to other CDBG eligible projects. The Housing and Community Development Commission (HCDC) considered new projects for the allocation of HOME funds. Housing applicants applied for funds at the same time the City was accepting applications for the City's FY16 CDBG/HOME funds. Applications were due on January 16, 2015. Two HOME projects were selected that could proceed immediately to be included in this amendment. The Housing Fellowship proposes to rehabilitate two of their existing rental units. Habitat for Humanity proposes to acquire and construct two homes for affordable homeownership. The City Council will consider this recommendation following a 30-day public comment period and an amendment will be submitted to the U.S. Department of Housing and Urban Development (HUD) subject to City Council approval. Jurisdiction: City of Iowa City, Iowa Contact Person Jurisdiction Web Address: Tracy Hightshoe http://www.icgov.org/actionplan Neighborhood Services Coordinator 410 E. Washington Street Iowa City, IA 52240 319.356.5244 Tracy-Hightshoe@iowa-city.org Applicant's Name: Iowa Valley Habitat for Humanity Priority Need: Low — Production of new owner units Project Title: Habitat Single Family In -Fill Ownership Project Description: Funds will be used to purchase two lots to construct single family homes for homebuyers at or below 60% AM I. Local Objective: Increase the availability of affordable owner housing. Location: 1603 and 1605 Prairie du Chien Road, Iowa City Objective Number Project ID See above 59.30 HUD Matrix Code CDBG Citation 12 Type of Recipient CDBG National Objective Subreci lent Private Start Date Completion Date June 1, 2015 March 30, 2017 Performance Indicator Annual Units Housing Units (2) 2 Local ID Units Upon Completion 2015.30 2 The primary purpose of the project is to help: ❑the Homeless ❑ Persons with HIV/AIDS ❑Persons with Disabilities ❑Public Housing Needs Funding Sources: CDBG $0 HOME $61,956 Private Funds $218,044 Total. • $280,000 Applicant's Name: The Housing Fellowship Priority Need: High — Rehab of existing rental units Project Title: Rental Rehabilitation Project Description: Project will preserve two existing affordable rental housing properties owned by a Community Housing Development Organization. Includes windows, kitchen and bath remodels, flooring, and HVAC. Local Objective: Rehabilitation activities to preserve and maintain the City's affordable rental housing stock for non -student renters under 60% of MFI. Location: 621 Keokuk Court and 446 Hawaii Court, Iowa City Objective Number Project ID See above 59.31 HUD Matrix Code CDBG Citation 14A Type of Recipient CDBG National Objective CHDO Start Date Completion Date 6/1 /2015 6/30/2016 Performance Indicator Annual Units Housing Units (2) 2 Local ID Units Upon Completion 2015.31 2 The primary purpose of the project is to help: ❑the Homeless ❑ Persons with H I V/AI DS ❑Persons with Disabilities ❑Public Housing Needs Funding Sources: CDBG HOME Private Funds $0 $49,998 Total. • $49,998 Location Map 1 1603 & 1605 Prairie . Du Chien Road Fa F Cir w ^ • r9 H ST H EYE F0E'i ER �4 r' rv�-'47.II S7 I�� �14 f11 FI -. .k_. VKEYE 1 446 Hawaii Court T DA VENPORi-Si rc �— �. c nn.nur_rnu�az 621 Keokuk Publication Notice April 15-17, 2015 Iowa City Press Citizen PUBLIC MEETING NOTICE FY15 Annual Action Plan Amendment #1 The City Council will hold a public meeting, accept comments and consider approval of Iowa City's FY15 Annual Action Plan Amendment #1 on May 19, 2015. The meeting will be held at City Hall, Emma Harvat Hall, 410 East Washington Street at 7:00 p.m. The Annual Action Plan is a portion of Iowa City's 2016-2020 Consolidated Plan (a.k.a. CITY STEPS). The Annual Action Plan includes information on the proposed use of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds for housing, jobs, and services for low -moderate income persons. The FY15 Annual Action Plan outlines proposed activities and their budgets. Two projects, United Action for Youth and The Housing Fellowship, LIHTC application, were unable to proceed. The FY15 Plan Amendment #1 proposes to use $111,954 in HOME funds for two new housing projects by The Housing Fellowship and Habitat for Humanity. Copies of the FY15 Annual Action Plan Amendment #1 are available from the Neighborhood and Development Services Department, 410 East Washington Street; the Iowa City Public Library, 123 S. Linn Street; or on Iowa City's web site (www.icgov.org/actionplan). Additional information is available by calling 356-5230. Comments may be submitted in writing to the Neighborhood and Development Services Department at the address above or by email to Kristopher-Ackerson@iowa-city.org. If you require special accommodations or language translation please contact Tracy Hightshoe at 356- 5230 or 356-5493 TTY at least seven (7) days prior to the meeting. Public Comments Received with Staff Response A 30-day public comment period regarding the FY15 Annual Action Plan Amendment ran from April 17, 2015 to May 19, 2015. The City Council held a public meeting on May 19, 2015. Comments Received: None Staff Response: None Housing and Community Development Commission Unsuccessful or Delayed Projects Policy Adopted by City Council March 2, 2004 in Resolution 04-68 From time to time there may be Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects that do not meet the anticipated schedule for implementation as presented to the Housing and Community Development Commission (HCDC). These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as possible to meet the needs of low -moderate income household for housing, jobs and services within Iowa City. To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby adopted to begin with Fiscal Year'04 projects beginning July 1, 2003: All CDBG and HOME projects will have entered into a formal agreement with the City of Iowa City for the utilization of federal funds by September 30 each year. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate if extenuating circumstances exist. if extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be established for the completion of the project if circumstances do not warrant an extension of time, HCDC may recommend the recapture and re -use of the funds to the City Council. All CDBG projects (except applicants for LIHTCs) will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This provides the recipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. All HOME projects will expend their funds on a timely basis per the applicable HOME regulation. Should a recipient fail to meet these thresholds, all unexpended CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If housing projects are applying for other funds through various state or federal agencies, the recipient must apply for those funds in the first available application period offered. Should a recipient fail to meet this application threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re- use of the funds. Should a recipient be unsuccessful in obtaining the funds listed in the application in the application round immediately following the allocation of local CDBG\HOME funds, and the project will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If the project is unsuccessful in obtaining the required funds listed in the application after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the City of Iowa City will recapture all CDBG/HOME funds.