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HomeMy WebLinkAbout10-22-2015 Housing and Community Development CommissionAgenda Housing & Community Development Commission Thursday, October 22, 2015 6:30 P.M. Senior Center, Room 202 Please use the Washington Street entrance — all other entrances will be locked. 28 S. Linn Street, Iowa City 1) Call meeting to order 2) Approval of the September 17, 2015 minutes 3) Public comment of items not on the agenda 4) Staff/commission comment 5) Discussion Regarding Community Development Block Grant (CDBG) Requests Develop CDBG Budget Recommendation to Council 6) Discussion of Southgate Development Services' CDBG application for the rehabilitation of the Walden Ridge Townhomes and support for a Iowa Workforce Housing Tax Credit Application Develop Recommendation to City Council 7) Discussion of scoring criteria and application form for CDBG and HOME grant applications 8) Adjournment MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION SEPTEMBER 17, 2015 — 6:30 PM HELLING CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Peter Byler, Michelle Bacon Curry, Jim Jacobson, Bob Lamkins, Dorothy Persson, Emily Seiple, Mark Signs MEMBERS ABSENT: Syndy Conger, Angel Taylor STAFF PRESENT: Kris Ackerson, Tracy Hightshoe OTHERS PRESENT: None By a vote of 7-0 the Commission recommends approval of the FY15 Consolidated Annual Performance Evaluation Report (CAPER). CALL TO ORDER: Hightshoe called the meeting to order at 6:30 PM. NOMINATE AND ELECT OFFICERS: Persson nominated Byler for chair. Jacobson seconded the nomination. A vote was taken and the nomination carried 7-0. Byler assumed duties of commission chair. Lamkins nominated Jacobson for vice chair. Persson seconded the nomination. A vote was taken and the nomination carried 7-0. APPROVAL OF JUNE 18, 2015 MINUTES: Persson questioned the vote and unanimous approval of amendment #2 stating she agreed with the staff recommendation. Hightshoe noted the vote was unanimous, but Persson's concerns were noted in the minutes and shared with the memo that went to City Council. Persson moved to approve the minutes of June 18, 2015. Lamkins seconded the motion. A vote was taken and the motion carried 7-0. Hightshoe explained to the new members that legal prefers that unless there is a conflict of interest that members do not abstain from votes, even if a member missed a meeting. PUBLIC COMMENT: None. STAFF/COMMISSION COMMENT: Hightshoe noted that City Council approved The Housing Fellowship's request for the full award Housing and Community Development Commission September 17, 2015 Page 2 of 6 of $150,000 to acquire two properties. The Housing Fellowship was able to secure a purchase offer for the second property before the item went before Council. Staff's recommendation was to approve The Housing Fellowship for both properties because they secured needed purchase agreements in areas that do not have affordable (subsidized) housing sites (Abbey St. and N. Dubuque), the organization has the capacity to administer HOME fund, and they are a HOME certified CHDO. The memo to City Council noted HCDC's concerns about a non-competitive allocation process and their request to fund one property and reallocate the remainder. City Council approved the full request and The Housing Fellowship acquired both properties. Hightshoe also noted they have three new commission members and asked if the time of the meeting works for all, or if they wanted to change it. The Commission decided to keep the meeting time at 6:30. Ackerson said they are opening another funding round for CDBG. There is $200,000 available and a press release will go out for that tomorrow. It is live on the website now. Applicants are encouraged to apply for at least $50,000. Staff will email all the applicants that have applied in the past three years to let them know these funds are available as well as sending out the typical press releases. Applications are due Thursday, October 8. HCDC meets October 15 where funding recommendations will be made. If that is not enough time it can be done at the October 22 meeting. Hightshoe said the money became available because Community Mental Health sold their facility less than five years after using CDBG funds on the site. Additionally Extend the Dream Foundation sold their property and the funds returned. These funds can be used for anything except public services because public services have already been allocated up to the cap. Hightshoe explained there is an additional $47,000 but Staff needs to hold those funds in case program income is lower than expected. Byler noted that on October 5 there is a roundtable discussion on affordable housing hosted by the Human Rights Commission at the Iowa City Public Library at 6:00 p.m. Byler also stated that while this Commission focuses on housing and funding, it is in their purview to discuss employment. The Council will discuss the minimum wage issue at their next meeting. He asked if the Commission would want to draft a memo of support. Hightshoe noted that a formal memo would have to go on the next HCDC agenda but as individuals the members can contact Council. Byler asked Staff about the Riverfront Crossings inclusionary zoning policy. Hightshoe replied that Development Services staff is drafting the zoning ordinance at Council's direction. Byler questioned if a member of Development Services could come to a Commission meeting and present. Hightshoe said that would be possible. PUBLIC MEETING & APPROVAL OF THE FY15 CONSOLIDATED ANNUAL PERFORMANCE & EVALUATION REPORT (CAPER) — ONLINE AT www.icqov.org/actionplan: Hightshoe noted that this report is required by HUD and must be submitted within 90 days of the end of the City's fiscal year, so it's due September 30. The report highlights how the City has used their federal funds. Hightshoe noted there are two key tables in the report: the summary of CDBG projects and HOME assisted projects. It identifies the project, how much was spent in the fiscal year, beneficiaries served and leveraged funds. As a reminder beneficiary and leverage information is only provided when the project is completed so as to not double count accomplishments during the 5-year plan. Housing and Community Development Commission September 17, 2015 Page 3 of 6 Signs observed that priority #3 speaks to increasing wages and economic self-sufficiency around the housing issue. There was some mention of federal funds that we don't access as a community and questioned what those funds do. He commented that the down payment assistance was small and is there opportunity for more. Down payments are often the limitation for folks in purchasing a home. Signs noted that under the Fair Housing Impediments they talk about the need for inclusionary zoning, which was clearly laid out in the plan. He also noted that assistance with the acquisition of land is an important issue for him, it all starts with land and hopes the City can help with that. He would encourage that the affordable housing model be reviewed again. He also pointed out some typos in the report, on page 33 the last line on item #4 the word to should be two ("to rehab two affordable units"). He then noted on page 11 there is a reference to City Staff meeting with the Greater Iowa Apartment Association that should be Greater Iowa City Apartment Association. Signs also wondered if we are leveraging enough, are our funds being used enough to leverage otherfunds. Byler asked about the treating of housing choice vouchers as a protected class and how that can be enforced without asking landlords to lower the market rent. Hightshoe said we can't make landlords charge lower rent, however the proposed ordinance wouldn't allow landlords to advertise "Section 8 not accepted." The ordinance would make landlords use the same criteria when accepting tenants. They can't accept someone who has a voucher simply based on the voucher alone. That being said landlords can deny a tenant based on items such as credit score, bad references, prior evictions, lack of security deposit, etc. Hightshoe stated the proposed changes will not affect our voucher utilization rate, which is already high. Staff believed it was the right thing to do. The Human Rights Commission recommended this addition and staff will present the recommendation to City Council for approval sometime this fall. Byler asked about the #2 Impediment which states, "The Affordable Housing Location Model is a well -constructed effort to disperse certain types of assisted housing; however the model may significantly reduce the parcels of land where new assisted rental housing may be built or acquired." The recommendation is, "For projects that require compliance with the Affordable Housing Location Model, the City should provide land and locations permitted by this model at prices comparable to land at locations not permitted by this model. Alternatively, the City could provide cash supplements from non-CDBG/HOME sources that offset land cost differentials to such projects." Byler feels that is 100% unrealistic, the City doesn't have a pile of money to assist with this. Staff noted that CDBG funds are made available to help meet the gap of lot prices so homes can be built or acquired. The Affordable Housing Location Model is intended to prevent all affordable housing being built in one area or section of town. Many times lots in other parts of town will be more expensive. City Council did review the importance of scattering affordable housing with the outcome that possibly less housing may be built/acquired. The #2 Impediment is just a recommendation that the City should try to do more and find additional funds for this purpose. Jacobson asked if there was a way to provide local tax credits as a subsidy method as opposed to direct funds. Hightshoe said that the affordable housing providers in Iowa City are already tax exempt. Byler said he spoke with the City Manager and he stated that if a developer did a mixed income development the City would be amendable to consider a TIF on the market rate units to help with the affordable units. Byler's last comment on the report was in the tables where it talked about economic Housing and Community Development Commission September 17, 2015 Page 4 of 6 development. The numbers are very small. He noted that when improvement projects are noted in the paper, the amounts can be deceiving so staff need to convey what the City actually contributed, not just the whole project cost. Bacon Curry asked about the goal for five new units of rental housing annually and goals of construction of new rental housing, and were these goals met. Hightshoe said those numbers were based on the five year plan, and the City exceed the goals. The commission discussed the lack of affordable housing and the hope that inclusionary zoning will aid in getting more units into the community. There is a shortage of one -bedroom units in the City as well so elderly clients of affordable housing have to use their vouchers on two - bedroom units and pay more in rent than needed. Jacobson moved to approve the FY15 Consolidated Annual Performance Evaluation Report (CAPER). Lamkins seconded the motion. A vote was taken and the motion passed 7-0. TENTATIVE SCHEDULE OF PROJECT MONITORING VISITS IN FY16: Staff will invite entities to HCDC meetings to discuss the status of their projects: • November 19 The Housing Fellowship o FY15 Acquisitions on Dubuque Road and Abbey Lane o FY15 Rehab of Keokuk Court and Hawaii Court o FY16 CH DO Operating Systems Unlimited o FY16 Acquisition of three SRO units Mayor's Youth o FY16 Acquisitions on Shamrock Drive and Elmridge Avenue • February 18 Habitat for Humanity o FY15 Property acquisition and construction for two homes on Prairie Du Chien Road CHARM Homes o FY16 Acquisition of eight single -room -occupancy (SRO) units Shelter House o FY15 Rapid Rehousing Program • March 17 Neighborhood Centers of Johnson County o FY16 Daycare operations (Aid to Agencies) o FY16 Broadway Neighborhood Center Rehab Domestic Violence Intervention Program o FY16 Shelter operations (Aid to Agencies) o FY16 Facility rehab Crisis Center o FY16 Emergency Assistance Program Byler also said it is nice to tour the entities and welcomes Commission members to visit the entities. Hightshoe said the March 17 visits will be moved to April. Also the Commission members are welcome to tour the entities but cautions against groups larger than four as that represents a quorum. Public meeting rules must be following if over four members. Staff can assist with coordination. Housing and Community Development Commission September 17, 2015 Page 5 of 6 DISCUSSION AND RECOMMENDATION REGARDING WALDEN RIDGE PROPOSAL BY SOUTHGATE DEVELOPMENT SERVICES: Southgate Development Services requests to pay off their CDBG loan for the Wetherby Condos South L.L.C. project and have these funds applied to the rehabilitation of units on Sylvan Glen Court (Walden Ridge Townhomes) and requests City support for a Iowa Workforce Housing Credit application. Hightshoe explained that back in fiscal year 2011 there was windfall program income due to a low-income housing tax credit project. So in 2011 the City allocated $900,000 to the Broadway Wetherby Condos. $300,000 was a grant and $600,000 was a loan to be repaid. Southgate rehabbed the whole complex and only one unit is currently vacant. Southgate also owns apartments on Sylvan Glen Court (Walden Ridge Townhomes) and proposes paying back the $600,000 loan they received early if it will be reallocated to the Walden Ridge rehab project. They are requesting it as a grant. Staff is asking the Commission if they support the request for further review and consideration. As with any housing project, staff would analyze the proforma and make financing recommendations that may not be what the applicant requested. It is likely after review, staff will recommend financing terms that include loan repayment. Jacobson noted that this area is in the red zone so no more rental units could be acquired. Southgate could rehab the 45 units they already have with the money. They would have to use private funding to acquire and rehab the other units. There was discussion on when Southgate was to originally pay back the $600,000 they owe and why the City would be willing to grant them that money. Hightshoe said Southgate would have to start making repayments in 2018 on the $600,000. Persson noted it is in the City's interest to improve the Walden Ridge Townhome area to make those affordable houses attractive to the neighborhood. Signs noted he is working with a client that has been in conversations with Southgate about this property. Hightshoe said Signs should recuse himself from the conversation and not vote on this item. The commission discussed how long the units would have to stay affordable if the money was given by the City. Hightshoe said following the HOME guidelines it would be at least 10 years. By a vote of 6-0-1 (Signs abstaining) the Commission recommends support of an application by Southgate to repay their existing CDBG loan and apply it to the renovation of Walden Ridge Townhomes subject to an application and staff review of the financial terms requested. These items to be reviewed at their October HCDC meeting. Lamkins departed the meeting. ADJOURNMENT: Jacobson moved to adjourn. Bacon Curry seconded the motion. A vote was taken and motion carried 6-0. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION ATTENDANCE RECORD NAME TERM EXP. 11/20/14 1/15/15 2/19/15 3/12/15 4/16/15 6/18/15 9/17/15 BACON CURRY, MICHELLE 9/1/2016 O/E X X X O/E X X LAMKINS, BOB 9/1/2016 --- --- X X X O/E X PERSSON, DOTTIE 9/1/2016 X X X X X X X BYLER, PETER 9/1/2017 X X X X X X X JACOBSON, JIM 9/1/2017 X X X X X O/E X TAYLOR, ANGEL 9/1/2017 X O/E X O X X O CONGER, SYDNY 9/1/2018 --- --- --- --- --- --- O/E SEIPLE, EMILY 9/1/2018 --- --- --- --- --- --- X SIGNS, MARK 9/1/2018 --- --- --- --- --- --- X Key: X = Present O = Absent O/E = Absent/Excused = Vacant Housing Project Name: Affordable Rental Rehabilitation Type of Project (check onef 0 Homeownership 0 Rental 0 Tenant Based Rent Asst. ✓ Rehabilitation (Rental and Rental Rehabilitation projects require the completion of rental housing pro forma) 1. Lead Applicant Name: The Housing Fellowship Applicant Address: 322 E. 2nd Street Contact Person and Title: Maryann Dennis, Executive Director Phone Number: 319-358-9212 E-mail Address: mdennis@housingfellowship.com 2. Lead Applicant DUNS Number: 964658236 3. Secondary Applicant (if applicable): Applicant Address: Contact Person and Title: Phone Number: E-mail Address: 4. Type of Applicant (check one). ✓ Community Housing Development Organization 0 Private for -profit, individual or partnership applicant 5. Amount of CDBG Funds Requested: $ 49,998.00 0 Private non-profit organization 0 Public Organization 6. Provide a brief description of the proposed project & complete the table below. Funds will be used to rehabilitate two affordable rental properties owned by The Housing Fellowship since 1996; two single family, three bedroom homes at 1017 Dover Street and 2600 Wayne Avenue. Both properties are occupied by low- income families. Description of rehab: 1017 Dover (built in 1965) — windows, kitchen and baths re -model, flooring, HVAC. 2600 Wayne (built in 1958) — bath and kitchen re -model, HVAC, water heater, carpet The rehab (i.e. preservation) of existing affordable rental homes is a high priority in the City STEPS plan. The Housing Fellowship has the capacity to carry out the project and budget projections are reasonable. Type of Units: Total Number of Units Proposed: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 2 4+ Bedrooms Housing 2 FY16 Mid -Year CDBG Funding Request 7a. Based on the City of Iowa City HOME Market Analysis Policy for New Rental Construction, Rental Rehab. & Acquisition of Existing Homes (rental), or New Owner -Occupied Home Construction & Acquisition of Existing Homes (owner - occupied), please identify the relevant market factors that will assist the City in verifying the demand for the proposed housing. The HOME Market Analysis Policy may be found at www.icgov.org/actionplan. (If the project is large or complicated, the City may require a Market Analysis to support the project before entering a legally binding agreement for funds. This policy is not applicable to projects requesting funds for tenant based rental assistance, homeowner rehabilitation, downpayment assistance and CHDO operating expenses.) Rental Prices: *The Housing Fellowship Project units as of 2015 — 1017 Dover Street, $620 2600 Wayne Avenue, $923 * THE has an agreement with Iowa City to offer a certain number of properties at rents equal to 30% of the AMI for family size. The family at 1017 Dover receives reduced rent. The rent at 2600 Wayne is the HOME program allowable rent. Vacancy rate (all THE rental units) — 2014 3.4% 2015 (to date) 2.0% Chanae in rental rates for the last two vears 2013: 1017 Dover = $626 2600 Wayne = $910 2014: 1017 Dover = $596 2600 Wayne = $917 Cook's Area Apartment Survey — 2013 Average rent, three bedroom = $1,016 2011 — Average rent, three bedroom = $ 961 2013 Vacancy rate, three bedroom .9% 2011 Vacancy rate; three bedroom 2.58% Condition of Building Yr. Built Purchased by THE Price Amt. Rehab at Purchase Current Assessment 1017 Dover 1965 12/1996 $85,000 $4,159 $128,740 2600 Wayne 1958 12/1996 $76,000 $6,991 $110,060 Other maintenance/rehab has been completed over the years. 2600 Wayne Avenue's foundation was excavated and re -sealed in 2002. Upon tenant turnover, the property was painted, etc., but no significant rehab/replacement of major systems has been done. 1017 Dover has been occupied by the same family since February, 1997; maintenance has been done as needed. New water heater was installed in 2014. Flooring and appliances fully depreciate after five years for residential rental properties. 7b. How will this project meet the needs identified in the 2011-2015 CITY STEPS (www.icgov.org/actionplan) The rehabilitation of existing affordable rental units is a high priority in the STEPS plan. Iowa City is committed to serve the needs of LMI residents. Households with incomes less than 50% AMI, particularly those with incomes less than 30% AMI, are particular priorities. The City has also Housing 3 FY16 Mid -Year CDBG Funding Request identified special needs individuals as among those who should receive high priority in the expenditure of funds, including at -risk children and youth, low income families, the homeless and persons threatened with homelessness, the elderly, and persons with disabilities. Both homes are occupied by families who have a member that is disabled. The STEPS plan further states; "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. 48 units originally constructed with Low Income Housing Tax Credit financing were converted to market -rate apartments (Villa Garden Apts.). There is a relative lack of available vacant housing units that are affordable and available for purchase and/or rehabilitation for lower income households. More than half of the privately assisted housing inventory in Iowa City is at risk for conversion to market rate housing. The City of Iowa City expects to focus its CDBG and HOME entitlement funds towards improving the quality of life in City neighborhoods for extremely low, very low, and low income households, and to preserve and increase the stock of affordable owner and renter housing units. With this in mind, the following housing priorities and objectives have been established: preserve existing affordable housing units. Work with local non -profits that own and operate privately subsidized housing that is at risk for conversion to market rate units. In many cases, these older affordable housing units are in need of rehabilitation. Iowa City and other local units of government should establish a preservation dialogue with the owners of these older properties in an effort to rehabilitate the units and maintain affordable rents. In many cases, these projects may require an infusion of HOME financial assistance." 7c. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www. icciov. oro/strateoicolan) Yes. Rehabilitation of existing rental units 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015 CITY STEPS Plan. Priority Need: Rehabilitation of existing rental units HIGH 9. Please provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $49,998 0% 10 (declining 10 $0 Requested* balance forgivable) *Fnancing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #15, Project Timetable. Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG Funding $49,998 0 10 10 OYes ✓No Housing 4 FY16 Mid -Year CDBG Funding Request (public) State of Iowa HOME or CDBG (public) $ OYes ONo IFA — Low Income Housing Tax Credits (public) $ OYes ONo Bank Loan (private) $ OYes ONo Applicant Contribution of Equity (private) $ 15,000 n/a n/a n/a ✓Yes ONo Other Public Resources (please list) $ OYes ONo Other Private Resources (please list) $ OYes ONo TOTAL $64,998 10b. loc. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $ Construction $64,098 Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify):Lead $ 900 TOTAL (Must equal TOTAL in 10a.) $64,998 Amount of Private Funds $ 15.000 Amount of Public Funds $ 49.998 Total Project Funding $ 64.998 Number of bedrooms 6 Total Cost Per Unit $ 32.499 What percentage of the proposed budget will be made up of private funds? (a) (b) (c) a t b (d) (e) c #Unds 23% % Housing 5 FY16 Mid -Year CDBG Funding Request 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. N/A: HOME program requires non -profits to competitively bid the rehab work and award construction contracts. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total $ 12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. N/A 13. Describe what efforts have been taken to secure private or other public funding. The Housing Fellowship has secured standing lines of credit from Great Western Bank for private loan funds to be used for rehab, acquisition, pre -development costs and operations. This structure provides immediate access to loan funds and the loans are renewed annually. All of the loans have funds available. No other public sources have been sought. Both properties are included in a consolidated commercial property loan from Great Western Bank (as indicated on pro forma). 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: Dec 1, 2015 Project Start Date 1- 2016 Lead testing 1-2016 — 3-2016 Prepare work list and rehab specifications 4-2016 Advertise for sealed bids and hold bid opening 5-2016 Award rehab contracts 6-2016 Begin rehab 9-2016 Project Close -Out 15. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). Housing 6 FY16 Mid -Year CDBG Funding Request The project will assure the preservation of existing affordable rental housing in Iowa City owned by a Community Housing Development Organization. THF's objective is to provide families with decent, affordable and stable housing. Even though all funding covenants and restrictions have been released on the project properties, THE has continued to offer the homes at rents that meet prior funding agreements. The rents at the project properties are significantly lower than current market rate rental homes and are affordable to the occupants. The incomes of the occupied project homes are below 50% AMI. The family at 1017 Diana Street has been there since June 1997; 446 Hawaii since 2010. Both families have a member who is disabled. The properties were acquired by THE in 1996. THE completed minimal rehabilitation (as needed) at purchase, but after 19 years, the homes are in need of rehabilitation. When City HOME funds were invested in the properties, it was not allowed for the HOME funds recipient to budget for repairs or capital improvements. THE has since budgeted for capital improvements with cash flow and loans from other funders. Funding for significant rehab will help a great deal to preserve the homes. 16. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long- term (in excess of CDBG program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner -occupied housing units lower than those in the existing market. The Housing Fellowship will maintain the properties as permanent affordable rental housing for the life of the properties. The project provides for affordable rental rates at far below the current rents charged in the Iowa City rental market. (See 7.a. Market Analysis) 17. Explain why this project needs and is worthy of the requested public subsidy. This fits with the City STEPS too orioritu of allocating funds; "the following housing priorities and objectives have been established: preserve existing affordable housing units." The Housing Fellowship has a long history of partnership with Iowa City and is capable of completing the project on time within the proposed budget. The tenants have incomes below 50% AMI and both include a family member with a disability. The Housing Fellowship has grown to be a very well respected non-profit developer and property manager; has received millions of dollars in public funding toward addressing the severe shortage of affordable rental homes in Iowa City and surrounding communities. Projects are completed on schedule, within budgets and compliance with all funding regulations have been maintained throughout the term of affordability. 18. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? Further subsidy will not be necessary (or allowed) for at least 10 years. The Housing Fellowship has established replacement/repair reserves which reduce the need for additional subsidies during the required term of affordability. 19. If partial funds are awarded, will the project/program continue? ✓Yes 0 No If yes, at what level? The properties will remain as rental properties within The Housing Fellowship's portfolio and rehab items will be completed on a piecemeal basis; an inefficient way to adequately maintain the properties. The proposed rehabilitation items include major improvements to the properties and the materials and labor have long warranties (e. g. windows). The steps implemented by THE to minimize future subsidies include the approved tenant selection plan, responsible property management and attention to regular, routine repairs. THE has a capital improvement budget for rental homes and regularly seeks other sources of funding for needed rehabilitation of properties. Housing 7 FY16 Mid -Year CDBG Funding Request Reminder: Rental housing (including acquisition, rental rehab, and new construction) projects MUST complete and submit the pro forma (excel format) provided by the City with this application. Rental housing applications submitted without the City's pro forma will not be considered. 20. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve and how the project will promote diversity within the neighborhood. The target population for this project is households with incomes below 80% AMI, although the occupants' incomes are below 50% AMI. The properties are modest, decent homes within established, modest neighborhoods. The properties fit in nicely and are indistinguishable from nearby residences. Locating affordable rental homes in market rate neighborhoods increases diversity in our neighborhoods. 21. Identify the location of the proposed project. 1017 Dover Street 2600 Wayne Avenue 22. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement). Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 — 60% median income Number between 61 - 80% median income Number over 80% median income Total Percent LMI 23. Does the proposed project pay full property taxes? 0 Yes Iowa City Attorney opined that THE owned homes are tax exempt. ✓ No households (a) households (b) households (c) _2 households (d) _0 households (e) _2 households (f) _100 (a+b+c+d) + f If YES, what is the estimated value of taxes generated from this Project? $ N/A If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes ✓No If yes, what is the percent of full taxes paid? %and amount paid is 24. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. The project properties have been part of THF's rental portfolio for over 19 years. The scattering of affordable rental homes was innovative when the properties were purchased and scattered site affordable housing has long been an objective of Iowa City governing bodies and of THF. The partnership between the City and a well -established and responsible non-profit has been and continues to be somewhat distinctive in our area. Many metro areas in Iowa rely Housing 8 FY16 Mid -Year CDBG Funding Request on for -profit housing developers to provide affordable rental housing. For -profit affordable housing developers typically revert the affordable homes to market rate when affordability terms expire. THE is unique in that the homes will remain affordable for the life of the property in order to preserve affordable rental housing. 25. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $ 19,260 $ 19,260 N/A CHDO Operating FY14 (July 2013 - June 2014) $ 91,997 $ 91,997 3/1/2015 FY15 (July 2014 - June 2015) $165,000 $165,000 The 2 homes will be leased 11/1/2015 FY16 (July 2015 - June 2016)* 1 $316,000 $0 n/a *Eight months remaining in FY16 at time of this application. 26. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? ✓ Yes 0 No If "NO" or a matter is currently in litigation please provide the name of the case and explain the basis for the case. 27. Please provide a narrative of the education and experience of the key staff who will be implementing the development project. Staff does not include volunteers, board members and consultants. If utilized, please identify what role a consultant will play in the development of this project. Maryann Dennis has been the Executive Director of the Housing Fellowship since January 1993. She has extensive experience in working with low-income families and the administration of federal and private funding sources. She oversees all aspects of THF; prepares applications for funding and manages agreements with private lenders, HTFJC, CDBG, HOME, FHLB contracts and LIHTC partnership agreements. She prepares all correspondence/information packets for the Board of Trustees and serves on all Trustee Committees. Ms. Dennis is a certified Housing Development Finance Professional through the National Development Council. She holds a Master of Social Work Administration and Social Development from the University of Iowa. She serves as ex-officio of the Housing Trust Fund of Johnson County, and the Vice -Chair of the Johnson County Affordable Homes, and served on the Iowa City ad hoc work committee for the Riverfront Crossing Inclusionary Housing Ordinance. She is the past member and chair of the Iowa City Committee on Community Needs (nka Housing and Community Development Commission). Barbara Bailey was the contracted accountant for over eight years and joined The Housing Fellowship full-time in February 2007 as the fiscal officer of the Corporation. Ms. Bailey attended the U of I for three years and apprenticed under a non-profit accountant for over 10 years. She has over 20 years in non-profit accounting. She maintains financial records, reconciles all accounts, and prepares all financial reports and balance sheets for the Board of Trustees. She coordinates all information for the annual independent audit of THE and consolidated entities. She prepares budgets for THE and Limited Partnerships. Ms. Bailey is certified as a Development Finance Professional through the National Development Council. She is the founder of Iowa City Cohousing and serves on the Riverfront Crossings District Streetscape Committee. Tashundra Gathright Compliance Specialist re -joined the staff in May 2008. Ms. Gathright holds a B.A. Degree in Sociology from the U of I. She served as Office Manager at THE from 2004 — 2005, leaving to be an Income Maintenance Worker at DHS. Ms. Gathright is the only Certified Credit Compliance Manager4 in Johnson County and has received extensive training in HOME Compliance from the IA Finance Authority; completes HUD Part 5 income verification and LIHTC tenant qualifications. Ms. Gathright completes all compliance reports, tracks income requirements for available units, and compiles program and tenant statistics. Housing 9 FY16 Mid -Year CDBG Funding Request Tammy Spies, Project Manager, joined THE staff in September 2003 after serving as Office Manager and Estimator of Arena Auto Body for over 12 years. She holds an Associate of Arts Degree from Ellsworth Community College in Sales Management. She has demonstrated excellent skills in property management practices and project management; lease -ups and renewals and repairs. She has completed compliance training for federal funds sponsored by the Iowa Department of Economic Development, the Iowa Finance Authority and the Iowa City and Linn County Civil Rights Commissions. Tom Costa, Maintenance and Repair, joined THE in October 2013. Mr. Costa has extensive experience in facilities maintenance and previously was the maintenance supervisor at Walden Place. 28. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. No overhead costs are being requested for this project. Overhead costs are paid for with rental income, grants and fundraising. 29. Provide a summary of your organization's portfolio. Include how many rental units you own/manage, how many homes you have built/rehabilitated/sold and what projects are in the pipeline. THE currently manages 171 affordable rental homes scattered throughout Iowa City and Coralville. THE owns 101 of the homes. # New Construction: Rental = 89 (10 sold to ICPHA) Owner -Occupied = 27 # Rehabbed: Rental = 111 Owner -Occupied = 2 Projects in the pipeline - River Front Crossings District — The Housing Fellowship will purchase and manage three townhomes in the Sabin project and manage 11 affordable apartments in the Emrico project. The Housing Fellowship is looking to purchase land to submit a Low -Income Housing Tax Credit application. Housing 10 FY16 Mid -Year CDBG Funding Request The Housrg Fellowship Rental Rehab 10b2015 Proforma Spread Sheet FY16 Rental Housing Projects 4Aease enter�nlormatnn�nto VWfebs h,ff ,ee4 Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YRB YR9 YR10 Revenues +G. Rent +0. meorne +T. Contrubutlnn $ 18516 $ - 8 $ 18886 $ $ 1 Gross Rental Income $ 19264 $ 19,649 $ 20,042 $ 20,443 $ 20,852 $ 21269 $ 21694 $ 22,128 2 Other Income $ 8 8 $ $ 8 8 $ 3 Tenant Contributions $ 8 8 $ $ 8 8 8 4 Gross Revenues =G. lno.. $ 18516 $ 18886 $ 19264 $ 19649 $ 20,042 $ 20,443 $ 20,852 $ 21269 $ 21694 $ 22,128 5 Vacancy Loss V. $ 926 $ 944 $ 963 $ 982 $ 1002 $ 1022 $ 1043 $ 1063 $ 1085 $ 1,106 (5%Vacnatea cross Im-a 6 Effective Gross Income EGI $ 17,590 $ 17,942 $ 18301 $ 18667 $ 19,040 $ 19,421 $ 19809 $ 20,206 $ 20610 $ 21022 Operating Expenses The total thedealsS #7-10 shall be no less than $2]50Nnd E qm $ 780 $ 1,167 1 $ 5,004 $ 900 $ 8]6 $ 803 $ 1202 $ 5,154 $ $ 927 7 Insurance $ 902 E 929 E 95] E 986 $ 1016 $ 1046 $ 10]] $ 1,110 Maintenance &Structural Repairs $ 828 $ 852 E 8]8 E 904 E 931 $ 959 $ 988 $ 1,018 9 Management Fees $ 1238 $ 1276 $ 1314 $ 1353 $ 1394 $ 1436 $ 1479 $ 1523 10 Misc. Operating Expenses $ 5,309 $ 5,468 1 $ 5,632 1 $ 5,801 1 $ 5,975 1 $ 6,154 $ 6,Xa)j $ 6,529 11 Property Tax ReseNes(Operating r nve no less than Mann) 8 8 E E E 8 8 8 12 $ 955 $ 983 $ 1013 $ 1043 $ 1075 $ 1,107 $ 1,140 $ 1,174 13 Total Operating Expenses -OPR. Expenses $ 8, 1r2 $ 8,963 $ 9,232 $ %W9 $ 9,794 $ 10,088 $ 10,390 $ 10,702 $ 11023 $ 11354 14 Net Operating Income -1401 $ 8,888 $ 8,979 $ 9,%9 $ 9,158 $ 9,246 $ 9,333 $ 9,419 $ 9,503 $ 9,587 $ 9,668 15 Debt SeNlce First Mortgage $ 6,855 E $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service _MS $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 18 dash Flow -CF $ 2,033 $ 2,124 $ 2,214 $ 2,303 $ 2,391 $ 2,478 $ 2,%4 $ 2,648 $ $732 $ 2,813 18(b) Equity Investment In Project E E E E $ E E E $ 19 Cash -on- Cash Rol CF #OIV101 #OIV101 #OIV101 #OIV101 #OIV101 #OIV101 #OIV101 #OIV101 #OIV101 #OIV101 casn row av ma5v ewry mestmennaP. oelxcoverage Ralo(aner 1eer4 swm-ft-man tin wmff come ce errors Enceua aC. Cso Equity Ime9- OCR 130 131 132 1m 135 136 137 139 140 141 The House Fellowship Renal Rehab 10A- 15 Line YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Determining Taxes 20 Cash Flow CF 2,124.12 $ 2,21407 $ 2,303.13 $ 2,39121 $ 2,478.19 $ 2,5 398 $ 2,64845 $ 2,731 W $ 2,81300 21 Depreciation Expenses -DEER *2W3 E $ $ 8 8 8 $ $ 22 Amortization of Fees au ORT2 E $ $ $ 900.0o $ E 8 $ $ 23 24 Principal Payments Reserves aP +RESERVES wow $ wow $ wow $ wow $ wow $ wow $ wow $ wow 25 Eamings (Loss) Before Taxes =EBTx 3,024.12 $ 3,11407 $ 3,203.13 $ 3,291 21 $ 3,378.19 $ 3,46398 $ 3,54a 45 $ 3,6 l w $ 3,71300 26 x Tax Rate 35% or 0% xRATE m 0% 0% 0% 0% 0% 0% 0% 0% 0% 27 Tax Incurred Saved -TAX $ $ E E E $ E $ 8 $ Cash Flow After Tax 28 Cash Flow CF $ 2,033.37 $ 2,124.12 $ 2,21407 $ 2,303.13 $ 2,39121 $ 2,478.19 $ 2,%398 $ 2,64845 $ 2,731 W $ 2,81300 29 Tax Incurred Tax Saved -TM (aSAV) $ 8 8 $ E $ 8 $ $ E 30 Cash Flow After Tax =CFATx $ 2,033.37 $ 2,124.12 $ 2,21407 $ 2,303.13 $ 2,39121 $ 2,478.19 $ 2,5398 $ 2,64845 $ 2,73150 1 $ 2,81300 Line Total Benefit Analysis 31 Cash Flow After Tax CFATx $ 2,03337 $ 2,124.12 $ 2,21407 $ 2,303.13 $ 2,391 21 $ 2,478.19 $ 2,5 398 $ 2,6 B 45 $ 2,731 W $ 2,81300 32 Rehabilitation Tax Credit .RTC 8 8 $ $ $ 8 $ $ $ 33 Low Income Housing Tax Credit .ueTe $ $ $ $ $ 8 $ $ $ 34 I Net Sale Proceeds aNSP E E 8 8 E 1 $ 8 8 8 $ 35 Total Benefits After Tax NCFAT =NCFATx $ 2,03337 $ 2,124.12 $ 2,21407 $ 2,303.13 $ 2,39121 $ 2,478.19 $ 2,5 398 $ 2,6 B45 $ 2,731 W $ 2,81300 36 Retum on Investment ROI #DIVl01 #DIVl01 #DIVI01 ttolwol ttolwol ttolwol ttolwol ttolwol #DIVl01 #DIVl01 TM Housr Fellowship Renal Rehab 1MA 15 YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Revenues $ 22,571 $ 23,022 $ 23,483 $ 23,952 $ 24,431 $ 24,920 $ 25,419 $ 25927 $ 26,445 $ 26974 1 Gross Rental Income E $ 8 $ E E $ $ $ 8 2 Other Income S $ 8 E 8 8 E E 8 8 3 Tenant Contributions $ 22,571 $ 23,022 $ 23,483 $ 23952 $ 24,431 $ 24,920 $ 25,419 $ 25927 $ 26,44 $ 26974 4 Gross Revenues $ 1,129 $ 1,151 $ 1,174 $ 1,198 $ 1222 $ 1246 $ 1271 $ 1296 $ 1322 $ 1349 5 Vacancy Loss (5%vac. Rates crass 1-) $ 21442 $ 21871 $ 22,309 $ 2J7 $ 23210 $ 23674 $ 24,148 $ 24,631 $ 25,123 $ 25626 6 Effective Gross Income Operating Expenses $ 1,143 $ 1,177 $ 1,213 $ 1,249 $ 1,286 $ 1,325 $ 1,365 $ 1,406 $ 1,448 $ 1,491 7 Insurance $ 1948 $ 1980 $ 1,112 $ 1,145 $ 1,180 $ 1,215 $ 1252 $ 1,289 $ 1328 $ 1368 8 Maintenance & Structural Repairs $ 1 %9 $ 1,616 $ 1664 $ 1,714 $ 1,766 $ 1819 $ 1,873 $ 1,929 $ 1,967 $ 2,047 9 Management Fees $ 6,725 $ 6,927 1 $ 7,135 1 $ 7,349 $ 7,%9 1 $ 7,796 $ 8,030 $ 8,271 $ 8,519 1 $ 8,A5 10 Misc. Operating Expenses 8 8 8 8 8 8 8 8 8 E 11 Property Taxes $ 1,210 $ 1,246 $ 1,283 $ 1,322 $ 1,361 E 1,402 $ 1,444 $ 1,488 $ 1,532 $ 1,578 12 Reserves $ 11,695 $ 12,04 $ 12,407 $ 12,779 $ 13,162 E 13,557 $ 13,964 $ 14,383 $ 14,814 $ 15,259 13 Total Operating Expenses $ 9,748 $ 9,826 $ 9,902 $ 9,976 $ 10,048 $ 10,11] $ 10,184 $ 10,248 $ 10,309 $ 10,367 14 Net Operating Income $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 15 Debt Service First Mortgage 16 Debt Service Subordinate Mortgage(s) $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 $ 6,855 17 Total Debt Service $ 2,893 $ 2,971 $ 3847 $ 3,121 $ 3,193 $ 3,262 $ 3,329 $ 3,393 $ 3,454 $ 3,512 18 dash Flow E E E E E E $ $ $ E 18(b) Equity Investment In Project #DIV101 #DIV101 #DIV101 #DIV101 #DIV101 #DIV101 #DIV101 #DIVIDI #DIV101 #DIV101 19 Cash -on- Cash ROI cam F ow a� ma o. ear ry wesrren a e ona 142 143 144 146 147 148 149 149 150 151 oeotcoverage Rsio The House Fellowship Renal Rehab 1MA 15 YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determinino Taxes $ 2,89282 $ 2,97083 $ 3,04689 $ 3,12086 $ 3,19259 $ 3,26192 $ 3,32869 $ 3,39272 $ 3,45385 $ 3,51188 20 Cash Flow $ $ $ $ E $ E E $ $ 21 Depreciation Expenses 8 $ $ $ 8 $ E E $ $ 22 Amortization of Fees $ WOW $ WOW $ wow $ wow - $ wow E - $ 900.00 $ wow $ wow $ wow $ wow 23 24 Principal Payments Reserves $ 3,79282 $ 3,87083 $ 3,94689 $ 4,02086 $ 4,09259 $ 4,161.92 $ 4,22869 $ 4,29272 $ 4,35385 $ 4,41188 25 Earnings (Loss) Before Taxes 0% 0% 0% 0% 0% D% 0% 0% 0% 0% 26 x Tax Rate 35% or 0% E $ $ 8 E E E E E E 27 Tax Incurred Saved Cash Flow After Tax $ 2,89282 $ 2,97083 $ 3,04689 $ 3,12086 $ 3,19259 $ 3,26192 $ 3,32869 $ 3,39272 $ 3,45385 $ 3,51188 28 Cash Flow $ E $ 8 8 $ E E E $ 29 Tax Incurred Tax Saved $ 2,89282 $ 2,97083 $ 3,D4689 $ 3,12086 $ 3,19259 $ 3,26192 $ 3,32869 $ 3,39272 $ 3,45385 $ 3,51188 30 Cash Flow After Tax Line Total Benefit Analysis $ 2,89282 $ 2,97083 $ 3,04689 $ 3,12086 $ 3,19259 $ 3,26192 $ 3,32869 $ 3,39272 $ 3,45385 $ 3,51188 31 Cash Flow After Tax $ E 8 $ E $ $ $ $ $ 32 Rehabilitation Tax Credit $ $ $ $ $ $ $ $ $ 8 $ - $ 33 Low Income Housing Tax Credit 8 $ $ 8 8 $ E E 34 Net Sale Proceeds $ 2,89282 $ 2,97083 $ 3,04689 $ 3,12086 $ 3,19259 $ 3,26192 $ 3,32869 $ 3,39272 $ 3A53.85 $ 31511.88 35 Total Benefits After Tax NCFAT #DIVI01 #DIVl01 #DIVl01 #DIVl01 #DIVl01 #DIVl01 #DIVl01 #DIVl01 #DIVIDI #Dl4JDl 36 Return on Investment Housing Project Name: Type of Project (check onef 0 Homeownership X Rental 0 Tenant Based Rent Asst. 0 Rehabilitation (Rental and Rental Rehabilitation projects require the completion of rental housing pro forma) 1. Lead Applicant Name: Systems Unlimited Inc. Applicant Address: 2533 Scott Boulevard Iowa City, IA. Contact Person and Title: Casey Westhoff, Executive Director Phone Number: 319-338-9212 ext.126 E-mail Address: casey.westhoff@sui.org 2. Lead Applicant DUNS Number: 087119194 3. Secondary Applicant (if applicable): Applicant Address: Contact Person and Title: Phone Number: E-mail Address: 4. Type of Applicant (check onef 0 Community Housing Development Organization X Private non-profit organization 0 Private for -profit, individual or partnership applicant 0 Public Organization 5. Amount of CDBG Funds Requested: $150,000 6. Provide a brief description of the proposed project & complete the table below. Systems Unlimited serves people with intellectual and developmental disabilities through Supported Community Living in Johnson and surrounding communities. This project would allow for the purchase of a 3 bedroom home in Iowa City to replace a current rental home leased by Systems Unlimited. This project would provide long-term, accessible and affordable living in Iowa City for 3 people with significant intellectual disabilities. Type of Units: Total Number of Units Proposed: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 1 4+ Bedrooms Housing 3 FY16 Mid -Year COBG Funding Request 7a. Based on the City of Iowa City HOME Market Analysis Policy for New Rental Construction, Rental Rehab. & Acquisition of Existing Homes (rental), or New Owner -Occupied Home Construction & Acquisition of Existing Homes (owner -occupied), please identify the relevant market factors that will assist the City in verifying the demand for the proposed housing. The HOME Market Analysis Policy may be found at www.icoov.oro/actionolan. (If the project is large or complicated, the City may require a Market Analysis to support the project before entering a legally binding agreement for funds. This policyis notapplicable to projects requesting funds for tenant based rental assistance, homeowner rehabilitation, downpayment assistance and CHDO operating expenses.) This project seeks down payment assistance in the purchase of property. 7b. How will this project meet the needs identified in the 2016-2020 CITY STEPS (www.icoov.oro/actionolan) This project seeks down payment assistance ($50,000) for the purchase of an existing home in Iowa City for 3 people currently served by Systems Unlimited Inc. The people who have been identified to reside in the home will meet the classification low/moderate individuals with special needs. The CITY STEPS action plan states "Iowa City will invest its CDBG funds in the areas primarily impacted by non -student LMI persons. CDBG funds will be focused in areas that are home to families, the elderly, the disabled and the homeless. The project will allow people with significant disabilities to establish permanent, affordable and accessible housing that will empower them to achieve the highest level of self sufficiency, while taking advantage of the great civic and cultural activities offered in Iowa City. 7c. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). MA-10 Number of Housing Units-91.20 (a) (b) 2. Does the availability of housing units meet the needs of the population? No. This project will assist the city to reach its goals and priorities by assisting 3 individuals achieve permanent, affordable housing in Iowa City SP-25 Priority Needs 91.215 (a) (2) Iowa City is committed to allocating funds that serve the needs of low to moderate income residents. Households with incomes less than 500/6 of the area median income, particularly those with extremely low incomes are priorities. The city has also identified special needs individuals as among those who face the greatest challenges and who should receive high priority in the expenditure of federal funds, including persons with disabilities. 8. Please specify the one most applicable priority need this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Priority: High Priority Need Name: Expanding Affordable Rental and Housing Opportunities. Population: Persons with Disabilities and Very Low Income. This application addresses the housing needs of three very low income Iowa city residents with disabilities by offering them an opportunity to live in a home that is custom built to meet their behavior and physical challenges. Existing rental homes in Iowa City do not offer the special features needed for individuals with behavior and destructive tendencies. All three individuals who have been identified to benefit from this project have one or more of the following diagnoses: severe/profound intellectual disability, Autism, Co -Occurring Disorder, Obsessive Compulsive Disorder, Psychotic Disorder and Seizure Disorders. Behaviors exhibited by these individuals include: self -injury, physical aggression, destruction of property, hyperactivity, impulsivity and elopement. Housing 4 FY16 Mid -Year CDBG Funding Request 9. Please provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $ Requested* *Fnancing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. *Systems Unlimited seeks a $50,000 grant for the down payment assistance of a 3 bedroom home in Iowa City for people with intellectual disabilities. 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #15, Project Timetable. Funding Source &Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG Funding (public) $50,000 Dyes ONo State of Iowa HOME or CDBG (public) $ Oyes ONo IFA — Low Income Housing Tax Credits (public) $ Oyes ONo Bank Loan (private) $150,000 6% 20 15 Oyes ONo Applicant Contribution of Equity (private) $ Oyes ONo Other Public Resources (please list) $ Oyes ONo Other Private Resources (please list) $ Oyes ONo TOTAL $200,000 Housing 5 FY16 Mid -Year CDBG Funding Request 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $200,000 Land Acquisition $ Site Improvements $ Construction $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $200,000 Amount of Private Funds $150,000 (a) Amount of Public Funds $50,000 (b) Total Project Funding $ (c) a t b Number of bedrooms 3 (d) Total Cost Per Unit $66,666 (e) c+ #Units loc. What percentage of the proposed budget will be made up of private funds? 75 % 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor Skilled labor ( ) Skilled labor ( ) Skilled labor ( ) hours x $10 per hour hours x $ per hour = hours x $ per hour = hours x $ per hour = Total 12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. None Housing 6 FYI Mid -Year CDBG Funding Request 13. Describe what efforts have been taken to secure private or other public funding. This is Systems Unlimited first attempt to secure private/public funding for the project. We do not anticipate any concerns with securing private funding. 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: 12-01-2015 Project Start Date O1-01-2016 Identification of housing. 03-01-2016 Closing on property. 03-01-2016 04-30-2016 Remodel/make necessary modifications in order to make accessible. 05-01-2016 3 Iowa City residents move into new property. 15. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). This project expands the number of affordable housing units to people with disabilities (special needs population) in Iowa City. The 2014 HUD Fair Market Rate (FMR) for 3BDR Iowa City unit is $1254. The projected initial rental rate for this project is $1000-$1200 per unit, depending upon final costs. Three individuals, who currently reside together and targeted for the project, currently pay $1450 per month plus utilities for a 3 bedroom home on Iowa City's east side. 16. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long-term (in excess of CDBG program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner -occupied housing units lower than those in the existing market. HOME funds will allow these units to be priced well under FMR for Iowa City. These funds will allow for permanent affordability' as they allow for loans to be paid off in shorter time frames, lower interest rates, and lower loan amounts. Income levels for people with intellectual disabilities (served through this project) do not generally reflect significant fluctuations during their lifetime; therefore, affordable, accessible housing is a long-term need. 17. Explain why this project needs and is worthy of the requested public subsidy. Housing 7 FY16 Mid -Year CDBG Funding Request HOME funds will allow these units to be priced well under FMR for Iowa City. These funds will allow for permanent affordability' as they allow for loans to be paid off in shorter time frames, lower interest rates, and lower loan amounts. Income levels for people with intellectual disabilities (served through this project) do not generally reflect significant fluctuations during their lifetime; therefore, affordable, accessible housing is a long-term need. 18. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? This project will benefit three Iowa City residents for a lifetime. Individuals with intellectual disabilities and autism, who exhibit behaviors such as destruction of property, still deserve an adequate home environment, which allow them to participate in community activities. Custom "Homes that Work' can be the difference maker for these individuals and their caretakers to successfully live in the community for a lifetime. The individuals that will benefit from the project are worthy of our support and public subsidy. If they continue renting typical market homes in Iowa City, damages and fees will continue to mount. Institutional care may need to be considered if appropriate and affordable housing can not be secured -which will cost the public taxpayer significantly more money than community - based housing. 19. If partial funds are awarded, will the project/program continue? XYes 0 No If yes, at what level? Depending upon the amount of the award, it is likely the project would continue as planned. Reminder: Rental housing (including acquisition, rental rehab, and new construction) projects MUST complete and submit the pro forma (excel format) provided by the City with this application. Rental housing applications submitted without the City's pro forma will not be considered. 20. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve and how the project will promote diversity within the neighborhood. The target population will be people with disabilities (Special Needs Population.) Systems Unlimited provides services in many neighborhoods in Iowa City and surrounding communities. The population served by this project (low income, special needs) often brings out the best in neighborhoods -people are quick to recognize that these individuals are great neighbors who want and deserve an opportunity to enjoy their homes and community- just like every citizen. 21. Identify the location of the proposed project. As funds are secured a location in Iowa City will be finalized. Systems Unlimited will work with the identified tenants to determine best location based upon 'walkability' factors and accessibility to public transportation, parks and amenities. Housing 8 FY16 Mid -Year CDBG Funding Request 22. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement). Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 — 60% median income Number between 61 - 80% median income Number over 80% median income Total Percent LMI 23. Does the proposed project pay full property taxes? 0 Yes X No If YES, what is the estimated value of taxes generated from this Project? $ 3 households (a) households (b) households (c) households (d) households (e) households (f) 100% (a+b+c+d) + f If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes XNo If yes, what is the percent of full taxes paid? %and amount paid is .$ 24. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. Providers of people with intellectual disabilities who work with people with extremely challenging behaviors are under pressure to serve people in community -based housing. To custom design homes for people with physical challenges is not that uncommon (wheelchair accessibility, wider halls, etc). To custom design and build a home for people with behavior challenges and autism is innovative and needed. Housing 9 FY16 Mid -Year CDBG Funding Request 25. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 30/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014) $ $ FY15 (July 2014 - June 2015) $184,000 $160,000 September 2015 FY16 (July 2015 - June 2016)* $50,000 $ *Eight months remaining in FY16 at time of this application. 26. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? XYes 0 No If "NO" or a matter is currently in litigation please provide the name of the case and explain the basis for the case. 27. Please provide a narrative of the education and experience of the key staff who will be implementing the development project. Staff does not include volunteers, board members and consultants. If utilized, please identify what role a consultant will play in the development of this project. Project Manager: Casey Westhoff, Systems Unlimited Inc. Executive Director, 14 years of experience as Executive Director in non-profit organizations serving people with disabilities. 30 years in Human Services Field. Obtained, implemented and managed awards from public and private sector ranging in scope and reporting requirements. He has previous experience with building and housing projects for people with disabilities (DAC Inc. Lutheran Services in Iowa). Housing 10 FY16 Mid -Year CDBG Funding Request Key staff: Michelle Lloyd Director of Finance, over 30 years experience in Finance/Accounting for both non -profits and for profit business including 16 years with Systems Unlimited Inc. Current responsibilities include oversight of System Unlimited owned homes, leased homes and maintenance staff. Has experience with administration of CDBG awards including receipts, project reports, etc. Key Staff: Muriel Nisley, Senior Accountant/HUD Project Manager, over 15 years of experience with Systems Unlimited overseeing two HUD Corporations that house 84 people with disabilities in Iowa City and surrounding communities. She was the facilitator of the three Federal government appropriations to Systems Unlimited in the past 15 years. Key Staff: Marc Hines, Director of Supported Living, over 8 years of experience working with Systems Unlimited. Focus areas are training of staff in appropriate behavioral interventions and oversight of 35 agency homes which serve people with intellectual disabilities 28. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. This project will be administered by the Executive Director of Systems Unlimited with support from the key staff listed. Once project is complete, the Director of Supported Community Living will oversee program and service implementation. Additional costs for overhead have not been written into costs. 29. Provide a summary of your organization's portfolio. Include how many rental units you own/manage, how many homes you have built/rehabilitated/sold and what projects are in the pipeline. Systems Unlimited Inc has been in existence since 1971 providing Supported Community Living (SCL) services to people with intellectual and developmental disabilities. In 2014, Systems Unlimited provided services to over 300 individuals in the SCL Division in eight Eastern Iowa counties. Systems Unlimited currently employs over 1000 people in a variety of positions with over 500 Direct Support Professionals providing the day- to -day direct support to people served. Systems Unlimited currently owns 16 single-family homes in Iowa City. Four of these homes have gone through extensive renovations within the past two years in which private financing and donations were utilized. One home is slated for extensive renovations in 2015 that will utilize Housing Trust Funds of Johnson County (HTFJC) for a portion of the project. Systems Unlimited most recent purchase (2015) of a single family home was on California Ave. in Iowa City with assistance from CDBG/Home funds. System Unlimited Building Corporation (HUD #1) manages 25 homes that serve a total of 77 people in 6 communities (Iowa City, Washington, Coralville, Williamsburg, Monticello and Vinton). HUD's extensive documentation and reporting requirements, including on -site visits, has allowed Systems Unlimited to gain extensive experience in property management for public entities. The most recent Management and Occupancy Review from HUD (December, 2014) reported'0 Findings" and a "Superior" rating. Systems Unlimited Building Corporation (HUD #2) manages two homes that serve a total of 6 individuals in Iowa City. This Corporation was formed approximately 10 years after the initial HUD development building project and is overseen by same (HUD #1) Manager. Systems Unlimited holds the property lease for 6 other single family homes in which individuals served reside. Landlords negotiate leases with the agency who in turn sublease properties back to the individuals served. Housing 11 FY16 Mid -Year CDBG Funding Request Proforma Spread Sheet FY16 Rental Housing Projects Please enle,nDtb boD in.V 'febsh,ff xcel Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR6 YR9 YR10 Revenues +G. Rent +O. Income +T. Controbulion $ 1260000 $ - $ $ 1285200 $ $ 1 Gross Rental Income $ 13,109.04 $ 1337122 $ 1363865 $ 1391142 $ 14,18965 $ 14,47344 $ 14,76291 $ 15,058.17 2 Other Income $ $ $ $ 8 8 8 $ 3 Tenant Contributions $ $ $ $ 8 8 8 $ 4 Gross Revenues =G. In o.. $ 12,60000 $ 1285200 $ 13,109.04 $ 1337122 $ 1363865 $ 1391142 $ 14,18965 $ 14,47344 $ 14,76291 $ 15,058.17 5 Vacancy Loss V. $ mom $ 6426n $ 65545 $ 66856 $ art 93 $ 69557 $ 70918 $ ]236] $ 738.15 $ 75291 t5aevac. Raley cross Im-a 6 Effective Gross Income EGI $ 1197000 $ 1220940 $ 12,45359 $ 12,]0266 $ 1295671 $ 1321585 $ 13,48016 $ 13,749]] $ 14,02476 $ 14,30526 Operating Expenses The total thedeals6 #]-105hallll be no less than $2]50/und $ 625 On $ fi0000 $ - 1 $ 600 On $ 35000 $ 643]5 $ 61800 $ - $ 618M $ $ wow 7 Insurance $ 66306 $ 68295 $ ]0344 $ ]2455 $ ]4628 $ ]686] $ 79173 $ 81548 Maintenance&Structural Repairs $ 63654 $ 65564 E 67531 E 69556 E 71643 $ ]3]92 $ 76006 E 78286 9 �Manaqement Fees $ - $ - $ - $ - $ - E - $ - $ - 10 Mis.. Operatinq Expenses $ 63654 $ 65564 E 67531 E 69556 E 71643 $ ]3Z92 $ 76006 $ 78286 11 Property Tax Resen/es(Operating r Ose no less Ilan Mann) $ 8 E E E 8 8 8 12 $ 37132 $ 38245 $ 39393 $ 10575 $ 41792 $ 43046 $ 44337 $ 45667 13 Total Operating Expenses -OPR. Expenses $ 2, 175.00 $ 2,24025 $ 2,30]46 $ 2,37668 $ 2,447 98 $ 2,52142 $ 2,597W $ 2,674 an $ 2,75522 $ 2,837 88 14 Net Operating Income -1401 $ 9,79500 $ 9,969-15 $ 10,14613 $ 10,32598 $ 10,50873 $ 10,69443 $ 10,88310 $ 11,07479 $ 11,26954 $ 11,46738 15 Debt Service First Mortgage $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 $ 8 640.00 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service _MS $ 8,640.001200,WO $ 8,640 On $ 8,640.00 $ 8,640 On $ 8,640.00 $ 8,64000 $ 8,6400n $ 8,6400n $ 8,640 On 18 dash Flow =CF $ 1,155.00$ $ 200,00000$ 06% 1506.13 $ 1685.98 $ 1868]3 $ 2,05443 $ 2,243.10 $ 2,43479 $ 2,62954 $ 2,82]38 18(b) Equity Investment In Project 200,00000 $ 200,00000 $ 200,00000 $ 200,Ooo.00 $ 200,000 On $ 200,000 On $ 200,0000o $ 200,00000 19 Cash -on- Cash ROI cF 08% 6.8% 09% 10% 1.1% 12% 13% 14% casnrowavma5vewry mes-.n toed oeu coverage Ram(aner 1eer4 sw[ -Its man tin wmff come ce errors Encooa aC. so Equity Inv,tt OCR 1.133680556 1.153836806 1.1]432066 1.195136405 1216288344 123HW799 1259618103 1281804605 130434466 1327242636 Line YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Determinino Taxes 20 Cash Flow CF 1329.15 $ 1W6.13 $ 188598 $ 185873 $ 2,%443 $ 2,243.10 $ 2,43479 $ 2,629.54 $ 2,87W 21 Depreciation Expenses -DEER *(4161 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 22 Amortization of Fees AM ORTZ E E E E 8 E $ S 23 24 Principal Payments Reserves +P +RESERVES 3ow $ 3ow E 350.00 $ 3ow E 3ow $ 3ow $ 3ow $ 3ow $ 3ow 25 Eamings(Loss) Before Taxes -EBTx (3,987 52) $ (3,81054) E (3,63069) $ (3,447 $ (3,26224) $ (3,07357) $ (2,88188) $ (2,68713) $ (2,48929) 26 x Tax Rate 35% or 0% xRATE 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 27 Tax lneumed Saved -TAX or (Saviigs) $ S E E E E E $ S S Cash Flow After Tax 28 Cash Flow CF $ 1,155w $ 1,32915 $ 1,W613 $ 1,68598 $ 1,85873 $ 2,%443 $ 2,24310 $ 2,43479 $ 2,62954 $ 2,82738 29 Tax Incurred Tax Saved -TAX (+SAV) $ S $ $ E E $ $ S S 30 Cash Flow After Tax =CFATx $ 1,155w $ 1,329.15 $ 1W6.13 $ 188598 $ 185873 $ 2,%443 $ 2,243.10 $ 2,434.79 $ 2,629.54 $ 2,827.38 Line Total Benefit Analysis 31 Cash Flow After Tax CFATx $ 1, 155w $ 1329.15 $ 1W6.13 $ 188598 $ 185873 $ 2,%443 $ 2,243.10 $ 2,43479 $ 2,62954 $ 2,827W 32 Rehabilitation Tax Credit +RTe E $ $ $ E 8 8 8 $ 33 Low Income Housing Tax Credit +ueTe $ $ $ $ $ $ $ $ $ 34 INet Sale Proceeds +NSP E $ $ $ $ $ $ $ $ $ 35 Total Benefits After Tax NCFAT =NCFATx $ 1,155w $ 1329.15 $ 1W6.13 $ 188598 $ 185873 $ 2,%443 $ 2,243.10 $ 2,43479 $ 2,62954 $ 2,827W 36 Retum on Investment RDA O W% 066% 075% 084% 093% 1 W% 1.12% 1? % 181% 141% YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Revenues $ 1535933 $ 1566652 $ 1597985 $ 16,29944 $ 1662543 $ 1695794 $ 17,29710 $ 1],643.04 $ 1199590 $ 183W 82 1 Gross Rental Income E $ 8 8 8 E $ $ $ $ 2 Other Income 8 $ 8 8 $ E E 8 8 $ 3 Tenant Contributions $ 1535933 $ 1566652 $ 1597985 $ 16,29944 $ 1662543 $ 1695794 $ 17,29710 $ 1],643.04 $ 1199590 $ 183W 82 4 Gross Revenues $ ]679] $ 78333 $ 79899 $ 814.97 $ 83127 $ 847W $ 86485 $ 88215 $ 899W $ 91779 5 Vacancy Loss (5%vac. Rates crass I-) $ 14,59136 $ 14,883.19 $ 15,18085 $ 15,48447 $ 15,]94.16 $ 16,11004 $ 16,43224 $ 16,7W89 $ 11096.11 $ 17,4W03 6 Effective Gross Income Operating Expenses $ 83995 $ 865.15 $ 891.10 $ 91783 $ 94537 $ 9]3]3 $ 160294 $ 1933W $ 196402 $ 199594 7 Insurance $ W635 $ 83054 $ 85546 $ 881.12 $ W7 $ 93478 $ %282 $ %1.71 $ 162146 $ 195210 8 Maintenance&Structural Repairs 8 8 8 8 8 8 E 8 $ 8 9 Management Fees $ W635 $ 83054 $ 85546 $ 881.12 $ W7 $ 93478 $ %282 $ 991.11 $ 162146 $ 1%210 10 OperatingExpenses $ $ $ 8 8 8 E E 8 E 11 Taxes $ 4]03] $ 48448 $ 49902 $ 51399 $ 52941 $ 54529 $ Wi 65 $ 5]8W $ 59585 $ 61373 12 $ 2,W302 $ 3,01071 $ 3,10193 $ 3,1141 $ 3,28988 $ 3,388.18 $ 3,4W 24 $ 3,59494 $ 3,70279 $ 3,81388 13 pResewes eratin EX enses $ 11,66835 $ 118]248 $ 120]B82 $ 12,29041 $ 1250428 $ 12]2146 $ 1284201 $ 13!16595 $ 13,39332 $ 13,62415 14 eratinIncome $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 $ 8640.00 15 rvice First Morta e 16 eervice Subordinate Mortgage(s) $ 8,640W $ 8,640W $ 8,640W $ 8,640W $ 8,640W $ 8,640W $ 8,640W $ 8,640W $ 8,64090 $ 9,64900 17 Total Debt Service $ 3,02835 $ 3,23248 $ 3,43982 $ 3,65041 $ 3,86428 $ 4,081.46 $ 4,W201 $ 4,525% $ 4,75332 $ 4,984.15 18 Cash Flow $ 200,WOW $ 200,WOW $ 200,WOW $ 200,WOW $ 200,WOW $ 200,00000 $ 200,WOW $ 200,WOW $ 200,WOW $ 200,WOW 18(b) Equity Investment In Project 15% 16% 17% 18% 19% 2.0% 22% 23% 24% 25% 19 Cash -on- Cash ROI cam F ow dvi and ov Ear ry oves-ft in E o�d 1 350502W3 1 374129838 1 398127819 1 42250122 1 447254415 1 472391768 1 497917637 152W36364 1 5501522771 1576869684 oeotcoverage RSlo YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determinino Taxes $ 3,028.35 $ 3,23248 $ 3,43982 $ 3,65041 $ 3,86428 $ 4,08146 $ 4,30201 $ 4,525% $ 4,75332 $ 4,984.15 20 Cash Flow $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 $ 5,66667 21 Depreciation Expenses 8 $ 8 E E $ - $ E E 8 22 Amortization of Fees E 35000 $ 35000 $ 35000 $ 35000 $ .000 $ - $ 35000 $ 350.00 $ 35000 $ 35000 $ 35000 23 24 Principal Payments Reserves E (2,28832) $ (2,06419) $ (1,87685) $ (1,66626) $ (1,45239) $ (1,23521) $ (1,01466) $ VW 72) $ (56335) $ (33252) 25 Earnings (Loss) Before Taxes 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 26 x Tax Rate 35% or 0% E 8 $ 8 E $ E E E E 27 Tax Incurred Saved Cash Flow After Tax $ 3,02835 $ 3,23248 $ 3,43982 $ 3,65041 $ 3,86428 $ 4,06146 $ 4,30201 $ 4,525% $ 4,75332 $ 4,964.15 28 Cash Flow $ 8 $ E E $ 8 8 E 8 29 Tax Incurred Tax Saved $ 3,02835 $ 3,23248 $ 3,43982 $ 3,65041 $ 3,86428 $ 4,06146 $ 4,30201 $ 4,525% $ 4,75332 $ 4,984.15 30 Cash Flow After Tax Line Total Benefit Analysis $ 3,02835 $ 3,23248 $ 3,43982 $ 3,65041 $ 3,86428 $ 4,06146 $ 4,30201 $ 4,525% $ 4,75332 $ 4,964.15 31 Cash Flow After Tax $ E $ 8 $ $ $ $ $ $ 32 Rehabilitation Tax Credit $ $ $ $ $ $ $ $ $ E $ - $ 33 Low Income Housing Tax Credit $ $ $ $ 8 $ E E 34 Net Sale Proceeds $ 3,02835 $ 3,23248 $ 3,43982 $ 3,65041 $ 3,86428 $ 4,06146 $ 4,30201 $ 4,525% $ 4,753.32 $ 4,984.15 35 Total Benefits After Tax NCFAT 151% 162% 172% 183% 193% 204% 215% 226% 238% 249% 36 Return on Investment Public Facility, Planning, and Other Projects 1. Name of Project: The Arc of Southeast Iowa Preschool/Daycare 2. Total Amount of CDBG Funds Requested: $ 70,000 3. Applicant Name: The Arc of Southeast Iowa Applicant Address: 2620 Muscatine Avenue, Iowa City IA 52240 4. DUNS Number: 884487823 5. Contact Person: Karen DeGroot Phone Number: (319) 351-5017 Fax Number: (319) 351-6837 Email Address: karendegroot@aresei.org 6. Location of proposed project: Onsite in the Bill Reagan Children's Enrichment Center, 2620 Muscatine Avenue, Iowa City IA 52240 7. Brief summary of the proposed project (please limit response to a paragraph). Due to an increasing number of requests for daycare and preschool for smaller children (culminating from the successful opening of our afterschool program), we have decided to seek funding for renovations of our lower level which would allow children of three age groups to share the space by dividing it into individual classrooms. We would continue our afterschool program but two additional rooms (division of our current 2500 sq feet lower level) will allow us to also meet the needs of families with younger children. Our afterschool program is geared towards junior high age kids and our new programing would be geared towards all day care for preschool age children and younger school age children after school. In addition, we would like to develop weekend overnight care for children and this division of space would allow that future need to be met as well. Public Facility, Planning & other Projects 3 FY16 Mid -Year CDBG Funding Request B. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icqov.org/actionplan). Priority Need: Public Facility Improvements; Persons with Mental/Physical/Developmental Disabilities (High) .9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. Last year, we developed an afterschool program for junior high age kids with intellectual and developmental disabilities since there was no option for these kids in our community. This has been a tremendous success and thanks to the playground funded last year by CDBG, we have received a flood of requests for similar services for younger children, including daycare and weekend care. We've approached Handicare to assess their facility and their services and have received the blessing of Anne Brownsberger to proceed with our plans to provide similar services on the east end of town. Anne stated that she is at full capacity and would be thrilled to have a place to refer additional kids, in addition with her facility located in Coralville, our east end location would assist her with some of her kids who have no transportation. In addition, we could refer our Coralville families to her facility. Along with these daycare and afterschool services, we are in the initial phase of developing a weekend program to meet longer term needs without further renovations. This year, for the first year, we had the situation of a child whose mother was living in the homeless shelter for a brief period of time and mom was desperate for a place for her daughter to spend weekends. We would like to be able to assist children like her, and others needing care while parents work weekends and late shifts. In surveying our current families and community members, we found the following needs: 1. Afterschool for younger than junior high aged children with special needs 2. Daycare for preschool aged kids (specifically those with special needs but also a place for their siblings to attend alongside the child with developmental disabilities) 3. Evening and weekend respite (beyond what we offer during our every Saturday group) 4. Assistance with transportation This grant application is attempting to focus on the first three needs we have found. 9b. Will this project address the established priorities in the City's Strategic Plan? Please identify the priorty(s). (www.icqov.org/strateciici)lan) Public Facility, Planning & Other Projects 4 FYI Mid -Year CDBG Funding Request Because of our location in the Towncrest Neighborhood, we are an asset to healthy neighborhood development both with last year's addition of an inclusive, fully accessible play structure, as well as our current plans to add onsite daycare for individuals with disabilities and their siblings. If capacity allows, we will open this to all children on a sliding fee basis, however our primary focus will be children with disabilities and their siblings as the need for those services are much greater than daycare in general (although that is also a need) 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds including whether Public or Private Type Status C x w H M S a° o Construction $50,000 $ Please place an X"in the box that applies: Electrical Costs $20, 000 $ X Licensing/Accred $ $ 5,000 x Interior finishes (carpet, paint etc) $ $15,000 x X Other grants/donations $ $ Total $70,000 LL$20,000 Amount of private\agency\other funds Amount of CDBG funds Total Project Funding $ 20,000 (a) $ 70000 (b) $ 90 000 (c) (a + b) Public Facility, Planning & Other Projects 5 FY16 Mid -Year CDBG Funding Request Number of persons assisted (d) (see question 19) Total cost per person $ 1.500* (e) (c - d) *this is cost for the fist year, this would be have longterm usage with minimal additional costs. In addition only the actual participant has been included in this cost, not the benefit to families who need this service. Total CDBG Cost Per Person (f)(b_d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor (Demolition) 10 hours x $10 per hour = $ 100.00 Skilled labor ( ) hours x _per hour = $ Skilled labor ( ) hours x $ per hour = $ Total Is 12. What percentage of the proposed budget will be made up of private funds? 20 - 25 13. Describe what efforts have been taken to secure private or other public funding? We are always in fundraising mode, however we are currently earmarking all funds we receive to this project. In addition, we are in the process for applying for grants and community endowment opportunities to raise additional funds. Our experience has shown us that when we have a specific project around which to fundraise, our community donations increase significantly. Pub/ic Facility, Planning & Other Projects 6 FYI Mid -Year CDBG Funding Request 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note; If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: December 1, 2015 Council approval of funding and project start date Upon approval, bids would be obtained. Construction would begin immediately upon approval of bid. Since this is an indoor project, weather would have minimal impact. 15. Explain why this project needs and is worthy of the requested public subsidy. This project will fill a gap in services in the Johnson County area. There are currently very limited, if any, options for our clientele and other children with disabilities to receive daycare, preschool, and afterschool care. There are no programs in Iowa City, that I am aware of, that provide evening and/or weekend services. This program will be open to anyone in the community who is in need of these services. We will use Medicaid funding when available and will offer scholarships and sliding scale fees for those in financial need who do not have access to Medicaid or other funding sources. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? Once the construction and DHS licensing have occurred, there will be no further need for funding beyond regular maintenance. Our goal is always to develop all programs to the point of self-sufficiency both for the financial security of the agency as well as allowing for development of additional program as community needs arise. 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. We will attempt to complete the project in its entirety through fundraising efforts and assistance from our community partners. If we are unable to raise the entire funding needed, we would construct only two classrooms instead of three, which would decrease the number of individuals we could serve but would still add needed services to our community. Public Facility, Planning & Other Projects 7 FY16 Mid -Year CDBG Funding Request 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note. If this application is funded, the information in this table will be used as income targeting for the CDBGAlgreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents 21 persons (a) 25 persons (b) 7 persons (c) 7 persons (d) 60 persons (e) 88 % (atbtc)=e 95 % Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) The estimate is based on the maximum number of children we will be able to serve based on licensing and code requirements (without addition of additional toilets, which will greatly increase the cost). This will be 60 each year. We are counting only the actual participant and not their families, who are also directly served by this project. 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. 20. Does the proposed project pay full property taxes? OYes ONo If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? []Yes ONo If yes, what is the percent of full taxes paid? % and amount paid is Public Facility, Planning & Other Projects 8 FY16 Mid -Year CDBG Funding Request 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Amount Budgeted Expended Amount (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $ N/A $ FY14 (July 2013 - June 2014) $ N/A $ FY15 (July 2014 - June 2015) $ 112,500 $ 112,500 6/30/2015 FY16 (July 2015 - June 2016)* $ N/A $ *Eight months remaining in FY16 at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation, please give the name of the case and explain the basis for the case. N/A 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. N/A 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. There will be minimal administrative cost to this project. Only that needed to prepare reports and monitor the budget. Public Facility, Planning & Other Projects 9 FY16 Mid Year CDBG Funding Request Public Facility, Planning, and Other Projects 1. Name of Project: Repair of disabled assistance door mechanism 2. Total Amount of CDBG Funds Requested:.$24,255 3. Applicant Name: The Crisis Center ofJohnson County Applicant Address: 1121 Gilbert Court Iowa City, IA 52240-4528 4. DUNS Number: 16-849-0613 5. Contact Person: Becci Reedus Phone Number: 319-351-2726 ext: 109 Fax Number: 319351-4671 Email Address: becci.reedus@Jajccrisiscenterorg 6. Location of proposed project: 1121 Gilbert Court, Iowa City, IA 52240-4528 7. Brief summary of the proposed project (please limit response to a paragraph). The Crisis Center is requesting assistance with facility repairs and/or upgrades. We have unexpected repairs beyond our budget this year. These issues, without repair, often make it difficult, or sometimes impossible to provide services. We are requesting $$24,255 in financial assistance for. 1. replacement motors for three ADA accessible doors 2. replacement of the condenser on the walk-in freezer in the food bank 3, broken window replacement in the client shopping area 4 installation of ceiling fans to help with temperature control in the client shopping area 5 installation of security cameras exterior to the Crisis Center building Public Facility, Planning & Other Projects 3 FY16 Mid -Year CDBG Funding Request 8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icgov.org/actionplan). Priority Need- Homeless • This priority was chosen because the greatest number ofpersons to be served are identified as homeless or near -homeless 9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. We request for financial assistance for unanticipated repairs and/or replacement of equipment for The Crisis Center. We provide supplemental food and emergency financial assistance to a// residents in Johnson County. According to the latest data published by Feeding America, the rate of food insecurity in Johnson County is 14% or 18,760 individuals in Johnson County who lack consistent access to adequate food limited by a lack ofmoney and other resources. In FY15, The Crisis Center served 10,023 individuals in Iowa City with supplemental food, or 53 % of those identified as food insecure in our county. Families who seek services at the Crisis Center make difficult choices in determining how to allocate their limited financial resources. Ina recent survey, approximately 80 % of our clients reported spending fifty percent or more of their monthly income on housing costs. Individuals and families may visit the Crisis Center once a week to supplement their food budgets. The majority of our building (90%)/s used for program purposes, and recently, the Crisis Center remodeled a portion of our facility to create additional offices and program space. Because of the growth in services we have limited ability for other organizations to utilize our 1121 Gilbert Court facility. However, we area "satellite "spot for other agencies and programs to provides services, such as Johnson County Health Department, who uses our location and access to individuals to provide HIV testing once a month. 9b. Will this project address the established priorities in the Cty's Strategic Plan? Please identify the priority(s). (www. icgov.org/strateg icpla n) Public facility improvements are a priority in the CITYSTEPS p/an noting that facility improvements for service providers and accessibility modifications are specified as the goals the city wi// address. Public Facility, Planning & Other Projects 4 FYI Mid -Year CDBG Funding Request 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds including whether Public or Private Type Status = = 9 a 9 e $ Pl.3 pkce a ",X`n the box M typ/es: Ceiling fans $1,200 $500 private X Window replacement $500 $500 private X ADA door replacement $8,400 $4,200 private X Security Cameras, exterior $8,955 $0 Replace freezer condenser $5,200 $1,800 private X Total $24255 $7000 Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted question 19) Total cost per person Total CDBG Cost Per Person (a) $ 24 ,,255 (b) (c) (a t b) 13,590 (d) (see (e) (c .' d) (f) (b = d) Public Facility, Planning & Other Projects 5 FY16 Mid -Year CDBG Funding Request 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ Total $ 12. What percentage of the proposed budget will be made up of private funds? _22_% 13. Describe what efforts have been taken to secure private or other public funding? We received funds from a private foundation to address some of our facility issues. Public Facility, Planning & Other Projects 6 FYI Mid -Year CDBG Funding Request 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding, Date: Description of Activity: December 1, 2015 Council approval of funding and project start date January 2016 Installation of doors April 2016 Installation of freezer condenser March 2016 Installation of security cameras April 2016 Installation of ceiling fans May 2016 Window replacement in the client shopping area 15. Explain why this project needs and is worthy of the requested public subsidy. Since 2008, we have experienced arise in the demand for all of our services, however the number of individuals and families who seek help from the Food Bank has resulted in a 65% increase in services in that seven year period of time. Prior to 2008, the Crisis Center received CDBG funding for a warehouse addition to the food bank and our facility remains the most suitable operations space for our programs. However the age of our building and program equipment, along with the increase in services sometimes create difficulty in the ability to meet all the increase costs. In order to continue to serve our families without compromising the direct assistance we give to them, we are seeking financial assistance for these facility projects. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? For the past five years, The Crisis Center, through the budget process, has been allocating funding to repairs and maintenance of our building and equipment. Many issues of the building have been addressed since 2008 with a combination of CDBG awards and Crisis Center funding. A remodel of our crisis intervention program space was completed early 2015 through our own budget. This remodel provided us with more office and program space we desperately need because of increased services. We have a maintenance plan and annually allocate funds to address the plan. 17.In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual If we receive partial funding, we will prioritize the proposed projects and complete the more urgent repairs of the ADA doors and the freezer condenser. Public Facility, Planning & Other Projects 7 FYI Mid -Year CDBG Funding Request 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application is funded, the information in this table will be used as income targeting for the ENBGAgreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents 12,430 persons (a) 960 persons (b) 177 persons (c) 23 persons (d) 13,590 persons (e) 98 %(atbtc)=e 76 % Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) We track service delivery on a monthly basis and review quarterly and annual trends in order to project service numbers for budgeting purposes. 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. no 20. Does the proposed project pay full property taxes? OYes ✓No If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? OYes ✓No If yes, what is the percent of full taxes paid? %and amount paid is .$ Public Facility, Planning & Other Projects 8 FYI Mid -Year CDBG Funding Request 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) .$187,400 .$187,400 1012013 FY14 (July 2013 - June 2014) .$100,000 .$100,000 0812014 FY15 (July 2014 - June 2015) $ $ FY16 (July 2015 - June 2016)* $ $ *Eight months remaining in FY16 at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? ✓ Yes 0 No If "NO" or a matter is currently in litigation, please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. n/a 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. We do not anticipate overhead cost to complete these projects beyond the normal time the administrative staff spend on facility Public Facility, Planning & Other Projects 9 FY16 Mid -Year CDBG Funding Request Public Facility, Planning, and Other P 1. Name of Project: CSCC Child Care Expansion 2. Total Amount of CDBG Funds Requested: $35,000 3. Applicant Name: Community Serving Community Center Applicant Address: 2024 G Street, Iowa City, Iowa 52240 4. DUNS Number: 5. Contact Person: Thomas McInerney Phone Number: 319-331-0365 Fax Number: N/A Email Address: thomas@thomasarchitect.com 6. Location of proposed project: 921 3rd Street, Iowa City 7. Brief summary of the proposed project (please limit response to a paragraph). The proposed project is to provide accessibility to an existing basement of the King of Glory Church, 921 3rd Street, Iowa City. The proposed improvements would allow approximately 35 children of pre-school age to occupy the facility. The Community Serving Community Center child care facility is adjacent to the church and the improvements would allow an expansion of the child care services to low-income families. Improvements include providing a ramp with an entrance and one accessible restroom at the basement level. Public Facility, Planning & Other Projects 4 FY16 Mid -Year CDBG Funding Request 8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icgov.org action plan). Priority Need: Provide public services -Proposed funding shall increase the effectiveness of physical investments that improve conditions for the elderly, youth, low-income persons, and other special populations. 9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. By providing affordable child care services for low income families during the week, families will have more opportunities for economic advancement. During off hours of child care operations, the accessible space shall be used for educational programming (not funded by the local school district) such as American cultural studies and English language classes for non-English speaking adult individuals. 9b. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www.icqov.org/strategicplan) This proposed project shall foster a more INCLUSIVE and SUSTAINABLE Iowa City through a commitment to Healthy Neighborhoods. Public Facility, Planning & Other Projects 5 FY16 Mid -Year CDBG Funding Request 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Type Status Anti Expense Category List Source of (e.g. salaries, Other Funds In- Cas apa cO acquisition, rehab) including Kin tact mm If possible, please CDBG whether Public d h Dat prioritize the budget Funds Other Funds or Private e Please plate an "X" in the box Mat applies: Construction Contract $28500 $0 None Professional Design Fees $6500 $0 None $ $ Total $35000 $0 1None Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person Total CDBG Cost Per Person (a) $35000 (b) $35000 (c)(a + b) 35 (d) (see question 19) $1000 (e) (c - d) $1000 (f) (b - d) Public Facility, Planning & Other Projects 6 FY16 Mid -Year CDBG Funding Request 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $0 Skilled labor ( ) hours x $_ per hour = $0 Skilled labor ( ) hours x $_ per hour = $0 Total $o 71 12. What percentage of the proposed budget will be made up of private funds? 100% 13. Describe what efforts have been taken to secure private or other public funding? Currently, the Community Serving Community Center child care facility is paying back a $5,000 loan to the City of Iowa City and has not been able to secure additional funding for expansion of their facility's service capacity. Public Facility, Planning & Other Projects 7 FY16 Mid -Year CDBG Funding Request 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: December 1, 2015 Council approval of funding and project start date December 15, 2015 Begin Design of Construction Documents January 11, 2016 Submit Building Permit Application January 15, 2016 Provide Bidding Documents to Contractors for Bidding March 1, 2016 Begin Construction June 1, 2016 Substantial Completion of Project 15. Explain why this project needs and is worthy of the requested public subsidy. The improvements shall allow an increase in the capacity to serve more low income families within the community. Such improvements promote long-term community viability and the empowerment of low-income persons to achieve self-sufficiency. The Community Serving Community Center child care facility provides transportation for their clients upon request. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? The project shall be designed complete. We do not anticipate any future requests for funding after completion. 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. If the project does not receive the requested funds in total, the proposed project shall be put "on hold" indefinitely. Public Facility, Planning & Other Projects 8 FY16 Mid -Year CDBG Funding Request 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income 35 persons (a) persons (b) persons (c) persons (d) Total 35 persons (e) Percent LMI Percent Iowa City Residents 100% (a+b+c)+e 100% Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) All children currently be served at the existing daycare are from families receiving state assistance for child care. All families served qualify as low or extremely low income family units. 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. By providing an accessible restroom and a compliant accessible ramp to the basement level of the church, the proposed solution shall provide a reactivated space for a child care facility serving up to 35 pre-school children from low income families. 20. Does the proposed project pay full property taxes? Yes If yes, what is the estimated value of taxes generated from this Project? $1000/year If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? OYes ONo If yes, what is the percent of full taxes paid? % and amount paid is $ Public Facility, Planning & Other Projects 9 FY16 Mid -Year CDBG Funding Request 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Amount Budgeted Expended Date All Units Fiscal Year Funds Recv'd Amount (as of 10/8/15) Completed FY13 (July 2012 - June 2013) $0 $0 FY14 (July 2013 - June 2014) $0 $0 FY15 (July 2014 - June 2015) $0 $0 FY16 (July 2015 - June 2016)* $0 $0 *Eight months remaining in FY16 at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? Yes If "NO" or a matter is currently in litigation, please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. The child care facility was opened in 2014 with a 15 child capacity. In 2015, the facility increased its capacity of child care services to 30. 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. Since 2009, when our community outreach non-profit 501(c)(3) organization was established, we've participated in many initiatives including partnering with others in the Coralville area to form a food pantry that serves the poor and homeless. In our own efforts, at times, we've provided over 200 sandwiches twice per week as well as providing 45 hot meals once a week for the homeless. In addition to our child care services we provide support to families who have recently moved to the area. Immigrants have additional challenges beyond just being unfamiliar with the city. There may be language barriers, and lack of support networks that long-time residents with family and friends can fall back on. We try to provide that much needed support for families by offering meals, clothing, employment assistance, transportation, school enrollment support, and assistance with housing. The organization's structure is composed of the following staff: Justin Matiyabo, Executive Director Binua Matiyabo, Director Please note: the requested funds shall not be allocated to the staff of the Community Serving Community Center. Website: http://www.cscchildcare.com/ Public Facility, Planning & Other Projects 10 FY16 Mid -Year CDBG Funding Request Public Facility, Planning, and Other Projects 1. Name of Project: Fairmeadows Park Playground 2. Total Amount of CDBG Funds Requested: $ 85,000 3. Applicant Name: Applicant Address: 4. DUNS Number: 5. Contact Person: Phone Number: Email Address: City of Iowa City 410 East Washington St., Iowa City 782621940 Geoff Fruin 319.356.5013 Geoff-fruin@i(ywa-dty.org 6. Location of proposed project: Fairmeadows Park 7. Brief summary of the proposed project (please limit response to a paragraph): Grant Wood Elementary and Fairmeadows Park are integral open space areas identified in the South District. Due to safety concerns and the age of the existing equipment, the focus of this project is the replacement of outdated playground equipment originally installed approximately twenty years ago with new 'naturescape' equipment. The proposed improvements will provide a safe environment that promotes physical activity and meets outdoor recreation and fitness needs of the community. 8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icoov.oro/actioni)lan). Priority Need: Public Facility Improvements An overarching goal of the Consolidated Plan is to provide a suitable living environment through safer, more livable and accessible neighborhoods, greater integration of low and moderate income residents, and reinvestment in aging neighborhoods. The City's Action Plan encourages funds dedicated to public infrastructure in non -student, low/moderate income neighborhoods. An investment in Fairmeadows Park, within the South District, helps the City to meet these identified goals. 9a. Tell us why this project is needed (include information from studies/research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. Support for the Fairmeadows Park Playground at Grant Wood addresses a gap identified in CITY STEPS Consolidated Plan 2016-2020. The plan identifies Public Facility Improvements as a priority that addresses the need for activities for unaccompanied youth. The City and School District have invested in recreation facilities in the neighborhood, including gymnasiums available to the public after school hours at Grant Wood and Alexander Elementary Schools. Yet, access to adequate playground facilities for children living in the Grant Wood area continues to be an issue. The limited resources of the families in the Grant Wood Elementary School attendance area, a Census Tract in which 51 percent or more of households are below 80 percent of the median family income for Iowa City, are less able to raise funds for needed park updates. Public Facility, Planning & Other Projects 1 FYI Mid - Year CDBG Funding Request 9b. Will this project address the established priorities in the Cty's Strategic Plan? Please identify the priority(s). (www.icqov.org/strateciicpla ) Neighborhood stabilization is identified as a priority in the City's Strategic Plan. Specifically, this project will address the priority of preventing blight and stagnation in various neighborhoods. The existing playground equipment has exceeded its useful life and needs to be updated with new facilities. The playground will also be relocated to a different location in the park that will facilitate a better transition with the splash pad. 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds including whether Public or Private Type Status o = = o a 0 e P/essepkcem"X"n fie box Mete &s: ADA connections $35,000 $ X X Playground $50,000 $ X X $ $ Total $85,000 $ Amount of private/agency/other funds Amount of CDBG funds Total Project Funding Number of households assisted Total cost per household $ (a) $85,000 (b) $85,000 (c) (a t b) 3,593 (d) (see question 19) $24/household (e) (c .' d) Public Facility, Planning & Other Projects 2 FY16 Mid -Year CDBG Funding Request Total CDBG Cost Per Household $24/household (f) (b = d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ Total $ 12. What percentage of the proposed budget will be made up of private funds? No 0% 13. Describe what efforts have been taken to secure private or other public funding? The neighborhood is in a low -moderate income neighborhood with limited disposable income. The Park would be greatly assisted by new equipment. The existing playground equipment is at the end of its useful life and in need of update. 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will he used for any project agreement for the use of CDBG funding, Date: Description of Activity: December 1, 2015 Council approval of funding and project start date January 1, 2015 Conduct environmental review June 1, 2015 Bidding process for equipment and construction September 1, 2015 Construction begins November 1, 2015 Project completion 15. Explain why this project needs and is worthy of the requested public subsidy. It is long standing tradition that parks are a gift to the citizens and therefore a fiscal responsibility of city government. The land acquisition and previous construction costs were paid by the City through issuance of General Obligation Bonds. The replacement of the outdated playground equipment cannot be solely funded through local resources at this time. Growing deferred maintenance projects, the unexpected drain on capital funds due to the 2006 Tornado and 2008 Flood events, and the shrinking property tax base due to State reform have created significant budget Public Facility, Planning & Other Projects 3 FYI Mid -Year CDBG Funding Request pressures for the City of Iowa City. The playground updates are currently not programmed in the City's Five -Year Capital Improvement Program and zero Neighborhood Open Space funds are available for this park These factors compromise Iowa City's ability to construct this necessary update without grant assistance. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? The City will purchase equipment with a minimum useful lifespan of 20 years or more. The parks department will continue to maintain the park grounds as usual. 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. The City is committed to completing the project, even with partial funding. 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CBBGAgreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents 963 households (a) 719 households (b) 675 households (c) 1,236 households (d) 3,593 households (e) 66% (atbtc)=e 100 % Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) The values above include the number of households in Census Tract 18 by income level. 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. N/A 20. Does the proposed project pay full property taxes? 7IYes ONo If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? 7IYes ONo If yes, what is the percent of full taxes paid? %and amount paid is .$ Public Facility, Planning & Other Projects 4 FY16 Mid -Year CDBG Funding Request 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014) $ $ FY15 (July 2014 - June 2015) $ $ FY16 (July 2015 - June 2016)* $ $ *Eight months remaining in FY16 at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? ❑x Yes 0 No If "NO" or a matter is currently in litigation, please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. N/A 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. Staff time will not be applied to the cost of this project. All federal funds will be used to purchase and install playground equipment. Public Facility, Planning & Other Projects 5 FY16 Mid -Year CDBG Funding Request Existing playground equipment IM 's ate `. s Public Facility, Planning & Other Projects 6 FY16 Mid -Year CDBG Funding Request Public Facility, Planning & Other Projects 7 FY16 Mid -Year CDBG Funding Request Public Facility, Planning, and Other Projects 1. Name of Project: Prelude's Future 2. Total Amount of CDBG Funds Requested: $200,000 3. Applicant Name: Prelude Behavioral Services Applicant Address:430 Southgate Ave., Iowa City, IA 52240 4. DUNS Number: 080310204 5. Contact Person: Ron Berg Phone Number: 319-351-4357 Fax Number: 319-248-3826 Email Address: rberg@preludeiowa.org 6. Location of proposed project: 7. Brief summary of the proposed project (please limit response to a paragraph). Prelude seeks to purchase property adjacent to our current properties on Southgate Avenue that will allow for the expansion and improvement of our existing facilities and services. As changes continue to impact the service delivery system it is increasingly evident that we will be expected to collaborate with additional partners and provide medical and case management services that we do not currently offer. In addition, our current residential center is overcrowded, does not offer space for recreational activities and lounging that are important for individuals recovery program. Owning the property next to us will allow us to pursue these improvements over time as resources become available. Public Facility, Planning & Other Projects 3 FYI Mid -Year CDBG Funding Request 8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icgov.org/actigDplan). Priority Need: Public Facility Improvements 9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. This project is needed to secure the future of Prelude Behavioral Services in our community. This project will allow Prelude to buy the adjacent property, allowing for more space to provide services for more community members in need of services. This expanded space will allow for Prelude to better provide: Integrated Health Homes, Medication Assisted Treatment, Case Management, Family Services, Recreational Activities for clients and space for privacy and lounging areas. These are all services that Prelude is currently unable to provide to clients due to limited space available. 9b. Will this project address the established priorities in the Cty's Strategic Plan? Please identify the priority(s). (www. icgov. org/strategicplan) This project will address the established priority of Public Facilities Improvement and will serve the population of Chronic Substance Abusers. This project will provide facility improvements for Prelude Behavioral Services to better meet the needs of our clients and community by providing more space with the availability to serve more clients, meet better accessibility for clients and staff. Public Facility, Planning & Other Projects 4 FYI Mid -Year CDBG Funding Request 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) List Source of Type Status Expense Category Other Funds 9 9 (e.g. salaries, including = acquisition, rehab) whether a If possible, please CDBG Public or = e prioritize the budget Funds Other Funds Private Acquisition $200,000 $ PlwsePneem"x"n Me box note &s: Acquisition $ $750,000 Sale of current x Withi assets n 4 Mont hs Acquisition $ $600,000 Loan plus cash x Withi reserves n 4 Mont hs Financing costs $ $15,000 $ $ Total $200,000 $1,365,000 Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person $ 1365000 (a) $ 200,000 (b) $ 1,565000 _ (c) (a t b) 657 (d) (see question 19) $2382 (e) (c .' d) Public Facility, Planning & Other Projects 5 FY16 Mid -Year CDBG Funding Request Total CDBG Cost Per Person $304 (f) (b = d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor na hours x $10 per hour = $ Skilled labor ( na ) hours x $ per hour = $ Skilled labor ( na ) hours x $ per hour = $ Total $ na 12. What percentage of the proposed budget will be made up of private funds? 13. Describe what efforts have been taken to secure private or other public funding? At the time of this grant submission, Prelude is seeking an agreement with the seller of the property to exchange Prelude's current property at 238 Stevens Drive and 325 First Street as partial payment toward the purchase of the adjacent property located on Boyrum Street. Prelude has engaged an architect to develop schematic plans for the redevelopment of our current property at 430 Southgate to a dedicated residential treatment space and move all outpatient operations to the new facility. Prelude has also engaged a fund raising consultant to conduct a feasibility study for a capital campaign. That study suggests that Prelude would be able to expect to raise $750,000 towards this project. The architect is also working with Prelude to develop a scaled back version of the original plan to allow us to stage the build out and remodeling of current facilities in a manner that would allow us to remain within our financial resources while still allowing us to expand to better serve our community. Public Facility, Planning & Other Projects 6 FYI Mid -Year CDBG Funding Request 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will be used for any Project agreement for the use of CDBG funding, Date: Description of Activity: December 1, 2015 Council approval of funding and project start date December 31, 2015 We want to close the purchase this calendar year January through June, 2016 Remodel and relocate Prelude staff to vacate current properties 15. Explain why this project needs and is worthy of the requested public subsidy. This project is worthy of the requested public subsidy because it will allow Prelude to expand and serve more community members in need. This expansion would be sufficient enough to allow Prelude to ensure sufficient room for services so that an expansion would not be needed again. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? There is currently fundraising and the beginning stages of a capital campaign in place to prevent the likelihood that this project would need further subsidy in the future. Prelude has a well -laid plan in place to prevent this type of need from happening in the future. 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. If less funding is awarded, it would means that funds that could be used towards clients would need to be used towards this project, thus depleting funds Prelude has for client needs. Public Facility, Planning & Other Projects 7 FYI Mid - Year CDBG Funding Request 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CNBGAgreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents 436 persons (a) 155 persons (b) 48 persons (c) 18 persons (d) 657 persons (e) .97% (a+b+c)+e 60 % Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. Yes. Prelude has worked out an agreement with the seller of the new property to buy 2 of Prelude's current properties as down payment. This would allow Prelude to use funding for this purchase to be used towards the purchase amount, thus resulting in needing to request a less amount from funders. 20. Does the proposed project pay full property taxes? OYes x No If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? OYes xNo If yes, what is the percent of full taxes paid? %and amount paid is .$ Public Facility, Planning & Other Projects 8 FYI Mid -Year CDBG Funding Request 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $11,692 $11,692 4/16/13 FY14 (July 2013 - June 2014) $23,850 $23,850 4/23/14 FY15 (July 2014 - June 2015) $0 $0 FY16 (July 2015 - June 2016)* $0 $0 *Eight months remaining in FY16 at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? XYes 0 No If "NO" or a matter is currently in litigation, please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. Prelude has received funding in the past. 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. There is no overhead cost related to this project other than $15,000 that is included in the budget for financing costs associated with the purchase of the project Public Facility, Planning & Other Projects 9 FY16 Mid -Year CDBG Funding Request Public Facility, Planning, and Other Projects 1. Name of Project: Towncrest Investment L.P. Demolition 2. Total Amount of CDBG Funds Requested: $112,000 3. Applicant Name: Towncrest Investment, L.P. Applicant Address: 2405 Towncrest Drive, Iowa City, IA 52240 4. DUNS Number: To be established 5. Contact Person: Ernest Stoppelmoor Phone Number: 312.331.0925 Fax Number: None Email Address: erniestop@iowatelecom.net 6. Location of proposed project: 1030-1070 William Street, at the intersection of Towncrest Drive and William Street. The project site is located in the Southeast Planning District and in the Towncrest Urban Renewal Area. 7. Brief summary of the proposed project (please limit response to a paragraph). Towncrest Investments, L.P. is the owner of property located at 1030 William Street in Iowa City. The owner is applying to the City for CDBG funds to demolish a vacant and deteriorating property. The site is located within the boundaries of the Towncrest Urban Renewal Area, which was designated by the City as a slum and blighted area. The removal of the building and clearing of the site will encourage investment by making a currently blighted site available for new development. The building that was previously used as a medical office building has not tenants and no pending leased. The proposed demolitions meets the goals of the Towncrest Urban Renewal Plan to diversify and broaden the property tax base, provide and protect areas for future commercial development and foster strong community neighborhoods with a mix of housing, churches, schools, recreation facilities, commercial areas, and historic landmarks. The value of the site will be improved once the existing building is demolished and will make the redevelopment of the property much more likely. Public Facility, Planning&Other Projects 3 FY16Mid-Year CDBG FbndingRequest 8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icoov.oro/actionolan). Priority Need: Economic Development The project will assist the City to address its priority need of Economic Development. This need has been identified in the CITY STEPS plan as a High priority for the City, and will improve conditions in Urban Renewal Areas founded on slum and blight conditions. The project's subject property and site is located in the Towncrest Urban Renewal Area. Specifically, this project will address facade improvements in an Urban Renewal Area. The building is vacant, old, and continues to deteriorate. It is important to demolish the building so that a more productive use can be built on the site. The site was re -zoned for affordable senior housing in 2012, which is the anticipated future use. Public Facility, Planning&Other Projects 4 FY16Mid-YearCDBGFbndingRequest 9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. The CITY STEPS plan describes three overarching goals, one of which is to expand economic opportunities through development activities that promote long-term community viability. This project proposes a private site improvement to demolish an existing building that is currently vacant and contributing to the blighted conditions of the Towncrest neighborhood. Removing this property will make way for new development which will improve the neighborhood. Also this site has been rezoned to accommodate an affordable senior development and this would help address the City's affordable housing goals. The development of that project is not part of this application and would be owned and completed by a different organization. CITY STEPS calls for facade improvements in Urban Renewal Areas as well as removal of architectural barriers. The vacant structure is both unattractive and impedes further retail/office development in the corridor. 9b. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www. icoov. oro/strateoicolan) This proposal will directly address an established priority as put forth in the City's Strategic Plan. The plan's first priority is for Strategic Economic Development Activities. One area that has been specifically targeted for such action is the Towncrest Neighborhood located in the Southeast Planning District. The applicant is proposing the City support its efforts to redevelop part of the Towncrest Neighborhood by demolishing an unoccupied and deteriorating building. The plan also states future plans will identify further redevelopment options in the district. Clearing and preparing the site will make it available for development and attract new investment in the neighborhood. This effort will also satisfy an objective of the Towncrest Urban Renewal plan to encourage the revitalization of commercial and residential activity in the area. Public Facility, Planning&Other Projects 5 FY16Mid-YearCDBGFbndingRequest 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds including whether Public or Private Type Status = Y o nr r0a y d 0 m Demoiibon/Site clearing $112,000 $ Pr�rey"' x t�r $ $ Total $112,000 $ Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person Total CDBG Cost Per Person (a) $112,000 (b) (c) (a t b) (d) (see question 19) $ N/A (e) (c - d) (f) (b - d) Public Facility, Planning&Other Projects 6 FY16Mid-YearCDBGFbndingRequest 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Not applicable. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ Total $ 12. What percentage of the proposed budget will be made up of private funds? 0.00% 13. Describe what efforts have been taken to secure private or other public funding? We are in negotiations to sell the property for a new development project. The proposed buyer will be responsible to provide any environmental or soil reports required for the demolition. Public Facility, Planning&Other Projects 7 FY16Mid-YearCDBGFbndingRequest 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: December 1, 2015 Council approval of CDBG funding June 30, 2016 Phase I completed July 30, 2016 Demolition and site clearing begun August 30, 2016 Demolition and site clearing completed 15. Explain why this project needs and is worthy of the requested public subsidy. The proposed project will meet a number of goals as stated in several of the City's planning documents, such as the City's Strategic Plan, Southeast District Plan, Towncrest Urban Renewal Plan, and the City Steps plan. Additionally, removing a vacant and deteriorating building will have a positive and focused impact on a neighborhood that the City has identified for Urban Renewal efforts and authorized to support with public subsidy. The project will help to revitalize the area by eliminating blight and encourage investment and new development in a renewal area. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? This application is solely for demolition of a commercial property that has become vacant and is deteriorating. The applicant plans to sell the property to a developer that is able to successfully redevelop the property according to the City's vision. 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. The applicant requests the cost for demolition and site clearing be fully funded with a CDBG award. Public Facility, Planning&Other Projects 8 FY16Mid-YearCDBGFbndingRequest 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If thisapplicatron is funded, the information M this table will be used as income targeting for the CDBGAgreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents persons (a) persons (b) persons (c) persons (d) persons (e) %a (atbtc)=e %a Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) This application is solely for demolition of a commercial property that has become vacant and is deteriorating. 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. The project will eliminate blight and create an opportunity for redevelopment and encourage private investment, thereby revitalizing the neighborhood and satisfying the goals as put forth in several City planning documents. 20. Does the proposed project pay full property taxes? X Yes ONo If yes, what is the estimated value of taxes generated from this Project? $40,000 If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? OYes ONo If yes, what is the percent of full taxes paid? %and amount paid is $ Public Facility, Planning&Other Projects 9 FY16Mld-YearCDBGFbndingRequest 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv d Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014) $ $ FY15 (July 2014 - June 2015) $ $ FY16 (July 2015 - June 2016)* $ $ *Eight months remaining in FY16 at time of this application. Not applicable. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? XYes 0 No If"NO" or a matter is currently in litigation, please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. The demolition will be done by Portzen Construction, Inc. out of Dubuque, Iowa. The company possesses over 25 years of construction experience that includes general construction, construction management, demolition, site clearing, excavation, and carpentry for commercial, industrial, and residential structures. 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. The project's budget consists solely of costs for demolition and clearing the site. Public Facility, Planning&Other Projects 10 FY16Mid-Year CDBGFbndingRequest at "4 CITY OF I O WA CITY CITY OF IOWA CITY MEMORANDUM Date: October 15, 2015 To: Housing and Community Development Commission From: Kris Ackerson, Community Development Planner Re: Request for Financial Assistance — Bilam Properties LLC Introduction The City received a request for financial assistance from Bilam Properties LLC (a SouthGate Companies entity) to rehabilitate units in the Walden Ridge Townhomes development on Shady Glen Court, Sylvan Glen Court, Bittersweet Court, and Clearwater Court. This memorandum provides background information and staffs recommendation regarding the proposal. The developer also proposes applying for Iowa Workforce Housing Tax Credits from the Iowa Finance Authority (IFA) for this project. The developer's application for Community Development Block Grant funds is attached for your review. History/Background SouthGate applied for and received CDBG funds in 2012 for the rehabilitation of the Orchard Place condos at 1956-1960 Broadway Street in Iowa City. Today the vacancy rate for the project is below one percent. Additionally, calls for assistance to the Iowa City Police Department have been dramatically reduced between 2010 and 2015. The project has been a success and good example of a public -private partnership. There is concern that Pheasant Ridge and Walden Ridge are becoming hotspots in terms of calls for police service and need reinvestment. According to SouthGate, Walden Ridge has seen increasing vacancies (currently approximately 20 percent) in recent years and needs upgrades. Bilam Properties LLC (a SouthGate Companies entity) is the current owner of 53 units in Walden Ridge Townhomes. The developer proposes to acquire additional units for a majority stake on the condominium board and rehabilitate interior and exterior spaces (see application enclosed). The total project cost is estimated at $3.975 million and includes 53 units. The condominium board recently approved a long-term budget of $500,000 for repairs to the exterior. Discussion of Solutions The developer wants to acquire additional units to establish a majority stake in the properties condominium regime. However, the City's affordable housing location model prohibits the acquisition of subsidized rental housing in this location. The CDBG assistance is limited to rehabilitation of only the units owned at the time the CDBG application was submitted. The National Development Council reviewed the developer's budget and pro forma. Due to the amount of equity in the project, the proposed improvements do not require grant funds to produce a positive cash flow, even if the developer is unsuccessful getting Iowa Workforce Housing Tax Credit funds. To be clear, due to the use of federal funds the project would trigger Davis -Bacon wage regulations, federal procurement procedures, relocation (if required) and Section 3 requirements. This project meets the City Strategic Plan Priority to ensure healthy neighborhoods by promoting affordable housing and stabilizing neighborhoods. October 15, 2015 Page 2 Recommendation Staff recommends a CDBG loan of $600,000 to Southgate to rehabilitate 53 units with the following financial terms: 15 year amortization, 15 year term, 3% full amortizing. Payments would begin once the rehabilitation is completed. The proposed funding would limit rent to at or below the CDBG Fair Market Rent for up to 5-10 years. 51% of the 53 households would need to be below 80% of area median income. Staff also supports the applicant applying for Iowa Workforce Housing Tax Credits for up to 10 units. This is the number of units that have been vacant at Walden Ridge for six months or more and would qualify for the program. Housing Project Name: Walden Ridge Townhomes Type of Project (check onef 0 Homeownership Rental 0 Tenant Based Rent Asst. 0 Rehabilitation (Rental and Rental Rehabilitation projects require the completion of rental housing pro forma) 1. Lead Applicant Name: Bilam Properties LLC Applicant Address: 755 Mormon Trek Blvd, Iowa City, IA, 52246 Contact Person and Title: Jerry Waddilove, Chief Operating Officer Phone Number: 319-337-4195 E-mail Address: jwaddilove@southgateco.com 2. Lead Applicant DUNS Number: 3. Secondary Applicant (if applicable): Applicant Address: Contact Person and Title: Phone Number: E-mail Address: 4. Type of Applicant (check one). 0 Community Housing Development Organization 0 Private non-profit organization 0, Private for -profit, individual or partnership applicant 0 Public Organization 5. Amount of CDBG Funds Requested: $600,000 6. Provide a brief description of the proposed project & complete the table below. As you know, SouthGate applied for and received CDBG funds in 2012 for the Rehabilitation of the Orchard Place condos at 1956-1960 Broadway Street in Iowa City. Bilam Properties LLC (a SouthGate Companies entity) is the current owner of 53 units in Walden Ridge Townhomes. We believe the public -private partnership between SouthGate Companies and the City of Iowa City on Orchard Place is a success we can both celebrate. As of this letter, we have only 1 vacancy of the 108 units in this project. Furthermore, City staff has shared with us the study of service calls by the Iowa City Police Department and how it has been dramatically reduced between 2010 and 2015. This is a story that we would like to repeat at Walden Ridge on the west side of Iowa City. Unfortunately, some of the service calls have concentrated in this area as well as Pheasant Ridge to the north. There have been serious violent crime calls at Pheasant Ridge with shootings and drug -related incidents going on there, as reported by the media. SouthGate's desire is to prevent Walden Ridge from becoming like the former Broadway Condos or a current Pheasant Ridge. Housing 2 FY16 Mid -Year CDBG Funding Request Bilam Properties LLC would like to apply for a $600,000 grant to provide funding for rehabilitation. This would include new cabinets, flooring, appliances, light fixtures, and the like. Our estimate is $20,000 per unit. 8 of the units have already been rehabbed. Total rehab cost is projected to be $900,000. Our experience indicates we are able to attract a higher quality resident when the units are rehabbed. We are requesting a grant due to the higher cost relative to value or acquisition cost. The Walden Ridge Townhomes are worth approximately $75,000 each so putting $20,000 into them is a significant expense. In addition to this request, the Walden Ridge Homeowners Associated Board voted, in early 2015, to approve a long-term budget including $500,000 over 5 years to replace facades, fix landscaping, fix sidewalks and steps, and repair retaining walls and decks. Type of Units: Total Number of Units Proposed: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 5 3 - Bedroom 37 4+ Bedrooms 11 7a. Based on the City of Iowa City HOME Market Analysis Policy for New Rental Construction, Rental Rehab. & Acquisition of Existing Homes (rental), or New Owner -Occupied Home Construction & Acquisition of Existing Homes (owner -occupied), please identify the relevant market factors that will assist the City in verifying the demand for the proposed housing. The HOME Market Analysis Policy may be found at www.icgov.org/actionplan. (If the project is large or complicated, the City may require a Market Analysis to support the project before entering a legally binding agreement for funds. This policyis not applicable to projects requesting funds for tenant based rental assistance, homeowner rehabilitation, downpayment assistance and CHDO operating expenses.) Number of units for rent, rental prices and change in rental prices over the last 2 years. Vacancy rate for rental units Condition of building 7b. How will this project meet the needs identified in the 2016-2020 CITY STEPS (www.icgov.org/actionplan) Rehabilitation of the Walden Ridge Townhomes will preserve these affordable housing units. Furthermore, our experience with Orchard Place indicates we are able to attract a higher quality renter and we'll continue with our Crime Free lease. This will provide a safer, more livable and accessible neighborhood. 7c. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www. i c9 ov. org/strateg i cp la n) Yes, specifically, as noted above the rehabilitation project will help prevent stagnation of rental housing in this part of Iowa City. In addition, an improvement in calls for crime will help reduce the stigma tied to affordable housing. 8. Please specify the one most applicable priority need this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Priority Need: Preserving Existing Affordable Rental and Owner Housing Units Housing 3 FY16 Mid -Year CDBG Funding Request 9. Please provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment [Terms $ 0% 15 15 Requested* *Fnancing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #15, Project Timetable. Funding Source & Type of Funding Interest Funds: Amount Rate Amortization Term Committed? Iowa City CDBG Funding $600,000 DYes'ONo (public) State of Iowa HOME or $ Dyes ONo CDBG (public) IFA — Low Income Housing $ Oyes ONo Tax Credits (public) Bank Loan (private) $2,439,750 Dyes '(S�No Applicant Contribution of $537,500 0,Yes ONo Equity (private) Other Public Resources (please list) Workforce Housing Tax $397,750 Dyes �S),No Credits Other Private Resources (please list) $ Oyes ONo TOTAL $3,975,000 Housing 4 FY16 Mid -Year CDBG Funding Request 10b. Please provide the uses of funds for the project. loc. Uses of Funds Amount Acquisition: Building Acquisition (Fair Market Value) $4,050,000 Land Acquisition $ Site Improvements $ Construction $900,000 Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): Equity $(975,000) TOTAL (Must equal TOTAL in 10a.) $3,975,000 Amount of Private Funds $2,977,250 (a) Amount of Public Funds $997,750 (b) Total Project Funding $3,975,000 (c) a t b Number of bedrooms 165 (d) Total Cost Per Unit $75,000 (e) c+ #Unds What percentage of the proposed budget will be made up of private funds? 75 % 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. — N/A Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total $ 12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. Warn Properties LLC will utilize Southgate Construction LLC, a related company, to construct the improvements on this project. Housing 5 FY16 Mid -Year CDBG Funding Request 13. Describe what efforts have been taken to secure private or other public funding. Bilam Properties has a current loan in place on the Walden Ridge Townhomes. Upon a decision on the Iowa City CDBG application and Iowa Workforce Housing Tax Credits application, we plan to discuss refinance this loan with a local lender. The Iowa Workforce Housing Tax Credit application is complete with the exception of the Resolution of Support to be provided by The City of Iowa City. 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: Nov 1, 2015 Submit completed Iowa Workforce Housing Tax Credit application Nov 1, 2015 Discuss private local lender financing with lender Dec 1, 2015 Project starts on 20% of the units Jul 31, 2015 Project completed — rehab's taking place as residents move out or are provided alternative housing 15. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). The goal of this project is to provide a safe, livable neighborhood in Iowa City that preserves affordable housing. Asking rents are currently around $975 per month for a 3BR unit and $1,075 for a 4BR unit. These are significantly lower than the Fair Market Rent of $1,182 per month and $1,420 per month, respectively. Maintaining the affordable housing period will continue to keep these rentals affordable. 16. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long-term (in excess of CDBG program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner -occupied housing units lower than those in the existing market. Asking rents are currently around $975 per month for a 3BR unit and $1,075 for a 4BR unit. These are significantly lower than the Fair Market Rent of $1,182 per month and $1,420 per month, respectively. Maintaining the affordable housing period will continue to keep these rentals affordable. The cash flow at the asking rents is satisfactory to provide a reasonable return for the owner while meeting the goals of affordable housing in Iowa City. The difference of Project Rents and Fair Market Rent represents a more than 20% gap. It is unlikely this gap will be lessened over the short term due to market dynamics. In addition, the density and location of this project to grocery, bus lines, and schools will help to continue to keep it affordable. Housing 6 FY16 Mid -Year CDBG Funding Request 17. Explain why this project needs and is worthy of the requested public subsidy. The Walden Ridge Townhomes are worth approximately $75,000 each so putting $20,000 into them is a significant expense. Furthermore, the public will benefit from a safer neighborhood that will serve low and moderate income households. In addition, the public does not desire to have blighted neighborhoods which this area could become if not for this project. 18. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? Reserves for maintenance items will be utilized in financing. In addition, the HOA has approved a 5-year $500,000 exterior improvement plan. Completion of this will set up the exteriors for decades to come and prudent management of the HOA will make sure future improvements will be planned for. 19. If partial funds are awarded, will the project/program continue? 0,Yes 0 No If yes, at what level? Partial compared to the amount funded. Reminder: Rental housing (including acquisition, rental rehab, and new construction) projects MUST complete and submit the pro forma (excel format) provided by the City with this application. Rental housing applications submitted without the City's pro forma will not be considered. 20. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve and how the project will promote diversity within the neighborhood. The target population of this project is families, young professionals, student households, and work force. This project is existing, so it already provides a diversity of housing compared to the attached two-family housing to its south and single family homes further west. 21. Identify the location of the proposed project. Shady Glen Court, Sylvan Glen Court, Bittersweet Court, Clearwater Court 22. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement). Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 — 60% median income Number between 61 - 80% median income Number over 80% median income households (a) households (b) households (c) _27 households (d) _26 households (e) Total _53 households (f) Percent LMI _50 (a+b+c+d) + f Housing 7 FY16 Mid -Year CDBG Funding Request 23. Does the proposed project pay full property taxes? �S.Yes 0 No If YES, what is the estimated value of taxes generated from this Project? $95,000 If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes 0 No If yes, what is the percent of full taxes paid? % and amount paid is 24. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. N/A Housing 8 FY16 Mid -Year CDBG Funding Request 25. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed FY13 (July 2012 - June 2013) $900,000 $900,000 December 2012 FY14 (July 2013 - June 2014) $0 $ FY15 (July 2014 - June 2015) $0 $ FY16 (July 2015 - June 2016)* $0 $ *Eight months remaining in FY16 at time of this application. 26. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation please provide the name of the case and explain the basis for the case. 27. Please provide a narrative of the education and experience of the key staff who will be implementing the development project. Staff does not include volunteers, board members and consultants. If utilized, please identify what role a consultant will play in the development of this project. See below - #29. Chris Villhauer will be the Property Manager. Chris Villhauer has been with SouthGate Companies since December 2004 and currently is the Director of Property Management. Chris' responsibilities include managing over 700 residential properties and overseeing the leasing of apartments, condominiums, townhouses, duplexes, houses, and garages. These properties are located in Iowa City, Coralville and North Liberty, Iowa. Chris is a licensed Real Estate agent and has consistently exceeded the continuing education requirements for Real Estate agents in the state of Iowa, including the following: Mold Identification & Solutions Meth & Its Makers: New Hazards in Housing Developing Professional Conduct & Ethical Practices The Basics (Listing & Buying Practices Combo) Landlord and Tenant Law REALTOR@ Safety "Identity Theft: Protecting You and Your Clients" Chris is a lifelong resident of Iowa City, Iowa. 28. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. Our Property Management Division will provide the leasing, maintenance, and tenant relations for this project. We typically assess a 5% management fee for inter -company projects. Housing 9 FY16 Mid -Year CDBG Funding Request 29. Provide a summary of your organization's portfolio. Include how many rental units you own/manage, how many homes you have built/rehabilitated/sold and what projects are in the pipeline. SouthGate Companies traces its humble beginnings to Polish immigrant David Braverman, who started a business selling melons out of the back of a truck. That business grew into a grocery store and ultimately Hawkeye Foods. As Braverman's business grew, he began to invest in real estate in Iowa City and SouthGate was born in 1962. SouthGate Companies has developed more than 600,000 square feet of commercial real estate including build to suit properties, turnkey sales and multi -tenant facilities. Currently, SouthGate manages more than 300,000 square feet of office, retail and industrial space. SouthGate's residential construction accomplishments include the development of more than 1,000 apartments, condominiums and single-family residences. Currently, SouthGate manages approximately 700 residential units, including condos, apartments, townhouses, duplexes and houses. SouthGate Companies is directed by Jody Braverman, the youngest son of David Braverman. Housing 10 FY16 Mid -Year CDBG Funding Request Proforma Spread Sheet FY16 Rental Housing Projects Please enle,,nlb.bon na.Ve' febsh,ff xcel Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR6 YR9 YR10 Revenues +G. Rent +O. Incarne +T. e ntrnhotmn $ 624,570 On $ - E $ 637,06140 $ $ 1 Gross Rental Income $ 649,80263 $ 662,79868 $ 676,05465 $ 6n%575.75 $ 703,36726 $ 717,43461 $ 731,783.30 $ 746,41897 2 Other Income $ $ E $ E 8 8 8 3 Tenant Contributions $ $ E $ E 8 8 8 4 Gross Revenues =G. Income $ 624,570.00 $ 637,06140 $ 649,80263 $ 662,79868 $ 676,05465 $ 6n%57575 $ 703,36726 $ 717,43461 $ 731783DO $ 746,418.97 5 Vacancy Loss V. $ 3122850 $ 31853.07 $ 32,490.13 $ 33,13993 $ 33802.73 $ 34,47879 $ 35,16836 $ 3587173 $ 36589.16 $ 37,320.95 (5%vac. Rate• crass Im-a 6 Effective Gross Income EGI $ 593,34150 $ 605,208 DO $ 617,31250 $ 629,65875 $ 642,25192 $ 655,09696 $ 668, 19890 $ 681562 On $ 695,19413 $ 709,09802 Operating Expenses The total thedeals6 #7-10 shall be no less than $2750/und $ 116596 g - $ 3078198 1 $ 169,090 fib $ 91,01205 $ 18550.00 $ 150994 $ $ 31705.44 $ 174,16338 $ 93,74241 $ 19,10650 7 Insurance $ 155524 $ 160189 $ 164995 $ 169945 $ 175043 $ 180295 $ 185703 $ 1912.75 Maintenance &Structural Repairs E E E E 8 8 8 $ 9 �Manaqement Fees $ 3265660 $ 3363630 $ 3464539 $ 35684.75 $ 36,75529 $ 37,85795 $ 389m 69 $ 40,16350 10 Mis.. Operatinq Expenses E 17%38828 E 184,76993 E 190,31303 E 196,02242 $ 201903 On E 207,960.18 1E 214,19899 1 $ 220,62496 11 Property Tax Resen7es(Operatingr nve no less Ilan Mann) $ 9655468 $ 99,45132 $ 102,434.86 $ 105,507 91 $ 108,673.15 $ 11193334 $ 115,29134 $ 118,750 On 12 $ 1967970 $ 20,27009 $ 20,878.19 $ 21504.53 $ 22,14967 $ 22,81416 $ 23,49859 $ 24,20354 13 Total Operating Expenses -OPR. Expenses $7 310,90065 $ 320,2767 $ 329,834DO $ 339,72953 $ 349,92142 $ 360,419. DO $ 37123164 $ 382,358.58 $ 393,83964 $ 405,65483 14 Net Operating Income -1401 $ 282,44085 $ 284,98066 $ 287,47800 $ 289,92921 $ 292,33050 $ 294,67790 $ 296,96726 $ 299,19429 $ 301,35449 $ 303,44319 15 Debt Service First Mortgage $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E $ 231,54900 E 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service _MS $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54600 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 18 Cash Flow -CF $ 50,90085 $ 537,50000 95% $ 53,44066 $ 55,93800 $ 58,38921 $ 60,79050 $ 63,13790 $ 65,42726 $ 67,65429 $ 69,81449 $ 71,90319 18(b) Equity Investment In Project $ 537,50000 $ 537,500 On $ 537,50000 $ 537,50000 $ 537,500 On $ 537,50000 $ 537,500 On $ 537,50000 $ 537,50000 19 Cash -on- Cash ROI CF 99% 104% 109% 11 3% 117% 122% 126% 130% 134% casn Fow avma. E,A me.-.aIr. oeucoverage Ram(aner 1eer4 sw(nenn(te man tm wmff come ce errors Encena aC. Cso Equity Inv,tt OCR 1219836097 1230805306 1241591073 1252TH645 1262548591 1272686H8 1282574346 1292192679 1301522385 131054326 Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YRB YR9 YR10 terminino Taxes De 20 Cash Flow CF S W9W 85 $ 159,WOW $ $ 53,44066 $ 159,WOW 8 $ 55938.00 $ W38921 S WJW50 E 63,13790 E 65,42726 542 $ 67,69 $ 6981449 $ 719W 19 21 Depreciation Expenses -DEER $ 159,WOW $ 159,00000 $ 159,00000 E 159,00000 $ 159,00000 $ 159,WOw $ 159,WOw $ 159,WOw 22 Amortization of Fees au oRTL E $ - $ 127,000.00 $ 18,55000 $ - $ 132,,000.W $ 18,55000 $ - $ 131000.00 $ 18,55000 $ - $ 142,000.00 $ 18,55000 $ - $ 141000.00 $ 18,55000 $ - $ 152,000.00 $ 18,55000 $ $ 157 $ 18,5W00 23 Principal Payments aP 24 Reserves aRESERVES $ 18,5w00 $ 18,5w00 $ 18,5w00 25 Eamings(Loss) Before Taxes =EBTx $ 214W 85 $ 299W 66 $ 37,488.00 $ 44,93921 $ 5234050 $ 5968790 $ 669H 26 $ 74,204.29 $ 81364.49 $ 88,453.19 26 x Tax Rate 35% or 0% xRATE 35% a5% a5% a5% a5% a5% a5% a5% 35% a5% 27 Tax Incurred Saved -TAX or(Seims) $ 7,507.80 $ 10,4%73 $ 13,120.80 $ 15,72872 $ 1831918 $ 20,BW 76 $ 23,44204 $ 2597150 $ 28,4H 57 $ 309W 62 Cash Flow After Tax 28 Cash Flow CF $ W9W85 $ 53,44066 $ 55938.00 $ W38s 21 $ WJW50 $ 63,13790 $ 65,42726 $ 67,65429 $ 6981449 $ 719W 19 29 Tax Incurred Tax Saved -TAX(+SAV) $ 7,W7 W $ 10,4%73 $ 13,120.80 $ 15,72872 $ 1831918 $ 20,BW 76 $ 23,44204 $ 2597150 $ 28,4H 57 $ 309W 62 30 Cash Flow After Tax =CFATx $ 43393.05 $ 4294 93 $ 4281720 $ 426W 49 $ 42,47133 $ 4224713 $ 4198522 $ 4168279 $ 413W 92 1 $ 40944.57 Line Total Benefit Analysis 31 Cash Flow After Tax CFATx $ 43393.05 $ 4294 93 $ 4281720 $ 42,66049 $ 42,47133 $ 4224713 $ 4198522 $ 4168279 $ 413w 92 $ 40944.57 32 Rehabilitation Tax Credit .RTe $ 8 8 8 8 $ 8 $ $ 33 Low Income Housing Tax Credit .ueTe $ $ $ $ $ $ $ $ $ 34 I Net Sale Proceeds +NSP E E 8 8 8 8 8 E 8 $ 35 Total Benefits After Tax NCFAT =NCFATx $ 43393.05 $ 4294 93 $ 4281720 $ 426W 49 $ 42,47133 $ 4224713 $ 4198522 $ 41682.79 $ 413W 92 $ 40,944.57 36 Retum on Investment Rod 807% 79 % 797% 794% 790% 786% 781% 775% 769% 762% YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Revenues $ 7613 7 $ 776,57429 $ 792,10578 $ 807,947.89 $ 824,10685 $ 840,588.99 $ 857,400A $ 874,54878 $ 892,W9.76 $ 909,88055 1 Gross Rental Income 8 8 8 $ $ $ $ $ $ $ 2 Other Income $ 8 8 $ $ $ E 8 8 $ 3 Tenant Contributions $ 761M7M $ H6,57429 $ 792,10578 $ 807,94789 $ 824,10685 $ 840,58899 $ 857,40077 $ 874,54878 $ 892,W976 $ 909,88055 4 Gross Revenues $ W,06737 $ 3882871 $ 396%29 $ 4039739 $ 412%34 $ 42,029.45 $ 4287004 $ 43,72744 $ 44,60199 $ 45,494.03 5 Vacancy Loss (5%vac. Rates crass I-) $ 723,27998 $ 737,74556 $ 752,W049 $ 761550 W $ 782,%151 $ 798,55954 $ 814,53073 $ 830,82134 $ 847,4 7H $ 864,W653 6 Effective Gross Income Operating Expenses $ 1970.13 $ 2,02923 $ 2,090.11 $ 2,15281 $ 2,217M $ 2,283W $ 2,35244 $ 2,42301 $ 2,49570 $ 2,57057 7 Insurance $ $ 8 8 E E E E 8 E 8 Maintenance & Structural Repairs $ 41368.41 $ 426W 46 $ 4388774 $ 4520438 $ 465W51 $ 47,95732 $ 493%04 $ W8A.92 $ 52,40426 $ 5397639 9 Man ag em ent Fees $ 227,24371 $ 234,06162 $ 24198285 $ 248,31533 $ 255,76479 $ 263,4 774 $ 27134087 $ 279,481.10 $ 287,86553 $ 296,W150 10 Misc.O Operating Expenses $ 122,312W $ 125,%l% $ 129,76142 $ 133,65426 $ 137,66389 $ 14179381 $ 146,04762 $ 150,429% $ 154,WW $ 159,590.18 11 Pf0 a Taxes $ 24,929.65 $ 256A.54 $ 26,44786 $ 27,24130 $ 28,0W54 $ 2890030 $ 29,76730 $ 306W 32 $ 3158(1.13 $ 3252754 12 Reserves $ 417,82448 $ 430,35921 $ 443,2692 E 456,W809 E 470,265.13 $ 484.171H $ 4HW427 $ 513,87140 $ 529,2875 $ 545,166.17 13 Total eratin EX en. $ 305,45550 $ 307,38637 $ 30923050 $ 31498241 $ 31263638 $ 314.18846 $ 31962645 $ 316,94994 $ 31815023 $ 319,M35 14 Net eratin Income $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E $ 23L54000 E 15 Debt Service First Mortgage 16 Debt Service Subordinate Mortgage(s) $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 $ 231,54000 17 Total Debt Service $ 73,91550 $ 75,84637 $ 77,69050 $ 79,44241 $ 81,0%38 $ 82,64646 $ 84,08645 $ 85,40994 $ 86,61023 $ 87,68035 18 Cash Flow $ W,W000 $ W,W000 $ W,W000 $ W,W000 $ W,W000 $ 537,50000 $ 537,50000 $ 537,500.00 $ 537,W000 $ 537,W000 18(b) Equity Investment In Project 138% 141% 145% 148% 151% 154% 156% 159% 161% 163% 19 Cash -on- Cash ROI -.-.aeova 1 319234265 1 327573495 1 33 W146 1 343104485 1 350247818 1 356942456 1 W3161676 1 WEOH692 1 374061612 1 378683401 oew coverage RSlo YR11 YR12 I YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determinino Taxes $ 7391550 $ 7584637 $ T,6W50 $ 79,44241 $ 810%38 $ 8,M 46 $ 84,08G.45 $ 85,40994 $ 8661023 $ 87,6w35 20 Cash Flow $ 159,00000 $ 159,00000 $ 159,000w $ 159,00000 $ 159,00000 $ 159,00000 $ 159,00000 $ 159,000w $ 159,00000 $ 159,000w 21 Depreciation Expenses 8 - 162,000.00 $ 18,55000 $ - $ 167,000.00 $ 18,550 00 $ - $ 172,000.00 $ 18,55000 $ - $ 1]],000.00 $ 18,55000 $ $ 182, $ 18,5W00 E E $ - $ 19100000 $ 18,550 00 $ - $ 202,00000 $ 18,55000 $ - $ 207,000.00 $ 18,550 001 22 Amortization of Fees 23 Principal Payments $ 18,5W00 $ 18,5W00 24 Reserves $ 95,46550 $ 102,39637 $ 109,240W $ 115,99241 $ 122,646W $ 129,19646 $ 135,63645 $ 14195994 $ 148,16023 $ 154,23035 25 Earnings (Loss) Before Taxes a5% a5% a5% 35% a5% a5% a5% a5% a5% a5% 26 x Tax Rate 35% or 0% $ 32,41293 $ 3,BW 73 $ 38234.18 $ 49597 34 $ 4292623 $ 4521876 $ 47,47276 $ 4968598 $ 51856.08 $ 539&1.62 27 Tax Incurred Saved Cash Flow After Tax $ 7391550 $ 7584637 $ H,6W50 $ 79,44241 $ 810%38 $ 8 ,M 46 $ 84,08G.45 $ 85,40994 $ 8661023 $ 87,6w35 28 Cash Flow $ 33,41293 $ 3 ,BW 73 $ 38234.18 $ 49597 34 $ 4292623 $ 4521876 $ 47,47276 $ 4968598 $ 51856.08 $ 539&1.62 29 Tax Incurred Tax Saved $ 4950258 1 $ 4,007 64 1 $ 39,4%33 $ 38845.0] 1 $ W,17015 $ 37,42]]0 $ 3661370 $ 35,]2396 $ 34j54.15 1 $ 326%73 30 Cash Flow After Tax Line Total Benefit Analysis $ 4950258 $ 49,00764 $ 39,4%33 $ 38845.07 $ W,17015 $ 37,42]]0 $ 3661370 $ 35,]2396 $ 34j54.15 $ 326%73 31 Cash Flow After Tax 8 $ 8 $ $ E $ $ $ $ 32 Rehabilitation Tax Credit $ $ $ $ $ $ $ $ $ E $ $ 33 Low Income Housing Tax Credit 8 $ $ $ $ $ E 8 34 1 Net Sale Proceeds $ 40502.58 $ 49,00764 $ 39,4933 $ 38845.07 $ W,1]015 $ 37,42]]0 $ 3661370 $ 35,]2396 $ 34254.15 $ 33,69973 35 Total Benefits After Tax NCFAT ]54% ]44% 7 34% 723% 7.10% 6%% 681% 665% 647% 627% 36 Return on Investment � r nI& CITY OF IOWA CITY Housing Application for FY2016 CDBG/HOME funds ■ Complete Application. Should you have any questions while completing the application contact Neighborhood Services staff at 319.356.5230 or by email at tracy-hightshoe@iowa-city.org. ■ Submit the original application to the City of Iowa City, Neighborhood Services. The application may not be longer than 13 pages (17 pages including the 20-year proforma), must be typed (10 point font or larger), and must be single sided. ■ Rental housing projects (rehabilitation or new construction) MUST complete and submit the proforma (excel format) provided by the City with this application. ■ Send your application by certified or registered mail; overnight delivery service e.g., Federal Express; deliver in person and have the application date/time stamped by a Neighborhood Services representative OR email the completed application to trace-hightshoeCa>iowa-citv.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be eligible for funding. ■ Please remember that only one project proposal may be submitted on each application. Please use separate applications for each project proposal. Housing Project Name: Type of Project (check onef 0 Homeownership 0 Rental 0 Tenant Based Rent Asst. 0 Rehabilitation (Rental and Rental Rehabilitation projects require the completion of rental housing pro forma) 1. Lead Applicant Name: Signature: Applicant Address: Contact Person: Title: Phone Number: Fax Number: E-mail Address: DUNS Number: 2. Secondary Applicant (if applicable): Signature: Applicant Address: Contact Person: Title: Phone Number: Fax Number: E-mail Address: 3. Type of Applicant (check one). 0 Community Housing Development Organization 0 Private for -profit, individual or partnership applicant 4. Amount of HOME/CDBG Funds Requested: $ 0 Private non-profit organization 0 Public Organization 5. Did you attend the Applicant Workshop? ONO 0 YES - Please indicate date attended: 0 12/18/14 or 0 1/5/15 Housing 7 FYI CDBG/HOME Funding Request 6. Provide a brief description of the proposed project & complete the table below. Total Number of Units Proposed: Type of Units: Number of Units: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms 7a. Based on the City of Iowa City HOME Market Analysis Policy for New Rental Construction, Rental Rehab. & Acquisition of Existing Homes (rental), or New Owner -Occupied Home Construction & Acquisition of Existing Homes (owner -occupied), please identify the relevant market factors that will assist the City in verifying the demand for the proposed housing. The HOME Market Analysis Policy may be found at www.icqov.org/actionplan. (If the project is large or complicated, the City may require a Market Analysis to support the project before entering a legally binding agreement for funds. This policy is not applicable to projects requesting funds for tenant based rental assistance, homeowner rehabilitation, downpayment assistance and CHDO operating expenses.) 7b. How will this project meet the needs identified in the 2016-2020 CITY STEPS (www.icgov.org/actionplan) 7c. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www. i cg ov. org/strateg i cp la n) 8. Please specify the one most applicable priority need this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Priority Need: Housing 2 FYI CDBG/HOME Funding Request 9. Please provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment [Terms $ Requested* *Fnancing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #15, Project Timetable. Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG or HOME Funding (public) $ OYes ONo State of Iowa HOME or CDBG (public) $ OYes ONo IFA — Low Income Housing Tax Credits (public) $ OYes ONo Bank Loan (private) $ OYes ONo Applicant Contribution of Equity (private) $ OYes ONo Other Public Resources (please list) $ OYes ONo Other Private Resources (please list) $ OYes ONo TOTAL $ Housing 3 FYI CDBGIHOME Funding Request 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $ Construction $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $ Amount of Private Funds Amount of Public Funds Total Project Funding Number of bedrooms Total Cost Per Unit (a) (b) (c) a t b (d) (e) c + # Units loc. What percentage of the proposed budget will be made up of private funds? % 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor Skilled labor ( ) Skilled labor ( ) Skilled labor ( ) hours x $10 per hour hours x $_ per hour = hours x $_ per hour = hours x $_ per hour = Total 12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. Housing 4 FYI CDBG/HOME Funding Request 13. Describe what efforts have been taken to secure private or other public funding. 14. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Local HOME funds requested:.$ x .25 = .$ Loca/Match 15. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG\HOME funding. Date: I Description of Activity: July 1, 2015 1 Beginning of City Fiscal Year and Project Start Date 16. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). 17. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long-term (in excess of CDBG\HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner -occupied housing units lower than those in the existing market. Housing 5 FYI CDBGIHOME Funding Request 18. Explain why this project needs and is worthy of the requested public subsidy. 19. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? 20. If partial funds are awarded, will the project/program continue? 0 Yes If yes, at what level? W Reminder: Rental housing (including rental rehabilitation) projects MUST complete and submit the pro forma (excel format) provided by the City with this application. Rental housing applications submitted without the City's pro forma will not be considered. 21. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve and how the project will promote diversity within the neighborhood. 22. Identify the location of the proposed project. 23. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG\HOME Agreement). Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 — 60% median income Number between 61 - 80% median income Number over 80% median income Total Percent LMI households (a) households (b) households (c) households (d) households (e) households (f) (a+b+c+d) + f Housing 6 FYI CDBGIHOME Funding Request 24. Does the proposed project pay full property taxes? 0 Yes 0 No If YES, what is the estimated value of taxes generated from this Project? $ If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes 0 No If yes, what is the percent of full taxes paid? % and amount paid is 25. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. 26. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 12/31/14) Date All Units Completed FY12 (July 2011 - June 2012) $ $ FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014) $ $ FY15 (July 2014 - June 2015)* $ $ *Six months remaining in FY15at time of this application. 27. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation please provide the name of the case and explain the basis for the case. 28. Please provide a narrative of the education and experience of the key staff who will be implementing the development project. Staff does not include volunteers, board members and consultants. If utilized, please identify what role a consultant will play in the development of this project. 29. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. 30. Provide a summary of your organization's portfolio. Include how many rental units you own/manage, how many homes you have built/rehabilitated/sold and what projects are in the pipeline. Housing 7 FYI CDBG/HOME Funding Request �r a =I%- CITY OF IOWA CITY Public Facility, Planning & Other Projects Application for FY2016 CDBG/HOME funds ■ Complete Application. Should you have any questions while completing the application contact Neighborhood Services staff at 319.356.5230 or by email at tracy-hightshoe@iowa-city.org. ■ Submit the original application to the City of Iowa City, Neighborhood Services. The application may not be longer than 10 pages, must by typed (10 point font or larger), and must be single sided. ■ Send your application by certified or registered mail; overnight delivery service e.g., Federal Express; deliver in person and have the application date/time stamped by a Neighborhood Services representative OR email the completed application to tracy-hiahtshoe@iowa-city.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be considered for funding. ■ Please remember that only one project proposal may be submitted on each application. Please use separate applications for each project proposal. Public Facility, Planning & Other Projects 1. Name of Project: 2. Total Amount of CDBG Funds Requested: $ 3. Applicant Name: Applicant Address: DUNS Number: Signature: 4. Contact Person: Phone Number: Fax Number: Email Address: 5. Location of proposed project: 6. Did you attend the Applicant Workshop? O NO O YES - Please indicate date attended: 7112/18/14 or O 1/5/15 7. Brief summary of the proposed project (please limit response to a paragraph). 8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS 2016-2020 (www.icoov.oro/actionolan or review Application Guide). Priority Need: Public Facility, Planning & Other Projects I FYI CDBGIHOME Funding Request 9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. 9b. Will this project address the established priorities in the Cty's Strategic Plan? Please identify the priority(s). (www.icciov.org/strategici)la ) 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. PLEASE NOTE: The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (e.g. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds including whether Public or Private Type Status = x 9 a r d 9 Ic Please place an 'X"in the box that applies: $ $ $ $ $ $ $ $ Total $ .$ Public Facility, Planning & Other Projects 2 FYI CDBGIHOME Funding Request Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person Total CDBG Cost Per Person (a) (b) (c) (a t b) (d) (see question 19) (e) (c = d) (f)(b=d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ Total $ 12. What percentage of the proposed budget will be made up of private funds? 13. Describe what efforts have been taken to secure private or other public funding? 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will he used for any project agreement for the use of CDBG funding, Date: Description of Activity: July 1, 2015 Beginning of City Fiscal Year and Project Start Date Public Facility, Planning & Other Projects 3 FYI CDBG/HOME Funding Request 15. Explain why this project needs and is worthy of the requested public subsidy. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application is funded, the information in this table will be used as income targeting for the ENBGAgreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents persons (a) persons (b) persons (c) persons (d) persons (e) (atbtc)=e Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. Public Facility, Planning & Other Projects 4 FYI CDBGIHOME Funding Request 20. Does the proposed project pay full property taxes? OYes ONo If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? OYes ONo If yes, what is the percent of full taxes paid? % and amount paid is .$ 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 12/31/14) Date All Units Completed FY12 (July 2011 - June 2012) $ $ FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014) $ $ FY15 (July 2014 - June 2015)* $ $ *Six months remaining in FY15at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in the past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. Public Facility, Planning & Other Projects 5 FYI CDBG/HOME Funding Request r CITY OF IOWA CITY MEMORANDUM Date: August 25, 2015 To: Tom Markus, City From: Douglas Boothroy, Re: Riverfront Crossing Introduction: At the January 6, 2015 City Council meeting, Council directed the staff to convene an ad -hoc work committee to study and develop the fundamental principles that would be the basis for an IH requirement for the Riverfront Crossings area. This direction was consistent with the discussion and recommendations found in the December 15`", 2014 Staff memo (see attached). The ad -hoc work committee has completed its work and unanimously recommends that Council proceed with the development and adoption of an IH ordinance based on the recommendations outlined below. Background: In designing IH requirements for the Riverfront Crossings area, it's important to note that a number of City studies document that the lack of affordable housing is a growing community issue. The 2013 Iowa City Comprehensive Plan and the Riverfront Crossings Plan both support measures to increase the supply of affordable housing and recognize the public benefit of mixed income neighborhoods. The 2016-2020 City STEPS, 2014 Analysis of Impediments to Fair Housing, and the 2014 Metropolitan Planning Organization's update of the 2007 Housing Market Analysis all suggest policy and program initiatives to increase the supply of affordable housing; use of IH requirements are identified as one such approach. Committee Process: Over the past six months, the ad -hoc work committee (composed of developers, a banker, and affordable housing advocates) held a series of meetings to consider the possibility of requiring affordable housing in Riverfront Crossings in exchange for zoning to a Riverfront Crossings designation (includes density bonuses and mixed use options), and/or use of Tax Increment Financing (TIF) for a development. Early in their deliberations, the committee agreed that, if an IH regulation was established, it should: be designed to increase production of a relatively permanent supply of affordable housing; be achievable; and, ensure that the amount of below market -rate housing leveraged results with no net cost to a developer. Committee members agreed that if IH requirements are to be effective, they must be workable and make sense to the development community. Using these parameters, the committee reached unanimous agreement on the following fundamental principles upon which an IH regulation for the Riverfront Crossings area should be based. August 25, 2015 Page 2 Recommended Fundamental Principles of an Inclusionary Housing Regulation PRINCIPLE #1 — Provision of inclusionary housing should be mandatory, not voluntary. Inclusionary Housing is mandatory • When the City participates financially (e.g. TIF) in a development that includes residential units regardless of zoning designation. • When property is zoned a Riverfront Crossings zoning designation. Comment These mandatory requirements guarantee that affordable housing is created with new residential development. The affordable housing requirement applies only when the City participates financially and/or when a property is zoned to a Riverfront Crossings designation (allows higher densities and mixed uses). PRINCIPLE #2 — A percentage of units in a development should be set aside for housing that is affordable for an established period of time. Set -aside percentage and term of affordability: When the City participates financially in a development, 15% of the residential units must be affordable for a minimum term of 20 years, or the life of the TIF, or term of developer's agreement, whichever is longer. • When the City is not participating financially in a development, 10% of the residential units must be affordable for a minimum term of 10 years. Comment Set -aside percentage is the requirement that a portion (percentage) of the total number of residential units be affordable. The set -aside strongly impacts development revenues possible financial viability of a project. Set -aside percentages generally range from 10 to 20 percent in 1H ordinances. The committee recommends a 15% set -aside if the City provides financing and a 10% set -aside if no public financing is involved. Term of affordability is the length of time residential units must stay affordable. Affordability terms range from 10 to 99 years in lH ordinances. To protect the public's investment in affordable housing, the committee recommends a minimum of 20 year term of affordability when TiF is used. PRINCIPLE # 3 — Project size should be considered and a threshold established for a set -aside requirement. Development size threshold: • Developments that include 10 or more residential units are subject to the set -aside requirement. August 25, 2015 Page 3 Comment Threshold size is the number of units that "trigger" the affordable housing set -aside requirement. The 10-unit threshold will require most new developments to include affordable housing while also recognizing that an inclusionary housing requirement for small projects is often not practical or financially feasible. PRINCIPLE #4 — Requirements should be appropriate for the type of development (rental vs. owner -occupied housing). Type of development: • Rental projects are required to provide affordable units within the development unless the developer qualifies for a hardship exemption to provide a 'fee -in -lieu'. Owner -occupied projects may choose to pay a 'fee -in -lieu' for their affordable housing obligation, or may offer affordable for -sale units to non -profits for management and re- sale to income -qualifying owners. Proceeds from the 'fee -in -lied fund may be used for down payment assistance for income -qualifying households purchasing owner -occupied units. Comment Affordable rental housing is the community's greatest housing need. Affordable rental units must be developed on -site unless the development qualifies for a hardship exemption to provide a 'fee -in -lieu' (see below). To create economically integrated neighborhoods, affordable housing units must be built within each development. This on -site requirement prevents affordable housing from being clustered and prevents income -based concentrations within the Riverfront Crossings area. Developments designed for owner -occupied units are allowed to provide either a 'fee -in - lieu' or provide units on -site. This flexibility is provided because it is more difficult for low income families to qualify for mortgages. If the City participates financially, owner -occupied units could be required to be on -site through the developer's agreement. PRINCIPLE #5 — Alternatives to the on -site affordable housing set -aside should be provided. Alternatives: 'Fee -in -lieu' contributions. These contributions may include money, land or other in -kind contributions. Rental projects may appeal on site requirement in exchange for a 'fee -in - lieu' option. This may be provided off -site but only within the Riverfront Crossings Area. Comment A 'fee -in -lieu' contribution allows a developer to make a cash payment instead of constructing the required affordable housing units. The fee is to be based on the financial .gap between market rate units and affordable units. These payments are deposited into an affordable housing fund or managed by the City to fund/assist other affordable housing opportunities. Fee -in -lieu provisions are common in 1H ordinances to provide flexibility and to acknowledge that affordable housing may not be practical ( e.g. a development loses money as an unavoidable consequence of the IH requirement). Fees allow for the creation August 25, 2015 Page a of an affordable housing fund to provide housing in other locations, fund non -profits, provide down -payment assistance for home ownership, or other similar types of affordable housing funding. PRINCIPLE #6 — Funds created from `fee -in -lieu' contributions should be used to create an Affordable Housing Fund for the sole purpose of supporting affordable housing in the Riverfront Crossings area. Use of funds: • Funds can only be utilized for affordable housing located within the Riverfront Crossings Area. • Funds maybe used for down payment assistance for owner -occupied households. Down payment assistance made available for income -qualifying households must be repaid upon resale of the unit. Down payment assistance may then be recycled to another income -qualifying household. Owner is able to keep any equity over and above the down payment assistance. • Funds may be used to provide grants/low interest and/or forgivable loans to local non- profit affordable housing agencies (e.g. Fellowship, Trust Fund, Habitat, other) for affordable housing development. Oversight of funds: A third party agency should manage the Affordable Housing Fund. A third party(e.g. the Housing Trust Fund or similar agency) has the expertise and staff to administer this fund without having to add a City staff. The City may provide criteria by which the funds may be used and request annual reports on use of the funds. Comment City legal staff advise that fees acquired as part of the development process in Riverfront Crossings must be used solely for affordable housing in Riverfront Crossings. PRINCIPLE #7 — Affordable housing should be provided to households of a qualifying income level. Income Target: • Renters: Not to exceed 60% of Area Median Income (AMI). With a TIF project, the City may negotiate affordability level (i.e. some units at a lower percentage than 60% AMI). . Owners: Not to exceed 110% AMI. With a TIF project, the City may negotiate affordability level (i.e. some units at a lower percentage than 110% AMI). Elderly/Disabled: Developments designed and utilized for elderly/disabled are not required to provide an affordable housing set -aside. August 25, 2015 Page 5 Comment The AMI for a 3 person household is $74,100. Affordable housing in Riverfront Crossings is being defined at 60% AMi for rental housing ($44,460 for 3 person household and is the funding level for federal Low Income Housing Tax Credit projects) and 110% AMi for owner occupied units ($81, 510 for 3 person household). The greatest need is for affordable rental housing because almost 213 of all renters in the community are cost -burdened (i.e. pay more than 30% of adjusted income for rent). Recommendations. 1. City Council direct staff to develop an Inclusionary Housing ordinance for consideration, applicable only to the Riverfront Crossings area, and that the ordinance be based on seven fundamental design principles recommended by the ad -hoc work committee. 2. City Council amend the Affordable Housing Location Model. This amendment is necessary if the IH regulations are to be effective in increasing supply of affordable housing in the Riverfront Crossings area. Attached to this document is a memo of explanation from Tracy Hightshoe, Neighborhood Service Coordinator. 3. City Council direct staff to provide to Council a periodic review of the IH requirement's impact in the Riverfront Crossings area. Conclusion: The development of a workable Inclusionary Housing requirement in the Riverfront Crossings area would be a significant achievement, for which the committee's recommendations are a ground breaking first step. On behalf of the City Council and staff, I wish to thank the members of the ad -hoc work committee who generously volunteered their time and expertise. This diverse group of citizens worked together in a positive, solutions -focused manner to study, deliberate, find common ground, and build consensus. This is a very complex set of issues, requiring a balance of aspirations and practicality. I commend the committee for reaching consensus and developing a set of recommendations that are unanimously supported. Thank you to the members of the ad -hoc inclusionary housing work committee: Tracey Achenbach, Housing Trust Fund of Johnson County Maryann Dennis, Housing Fellowship Chad Keune, Homebuilders Association President, 2014 Brad Langguth, Hills Bank and Trust Scott McDonough, Iowa Valley Habitat for Humanity Chair, 2015 Sally Scott, Johnson County Affordable Homes Coalition Glenn Siders, Siders Development Attachments: August 25th, 2015 Tracy Hightshoe Affordable Housing Location Model memo December 15`h, 2014 Riverfront Crossings and Inclusionary Housing memo