HomeMy WebLinkAbout02-18-2016 Housing & Community Development CommissionAgenda
Housing & Community Development
Commission (HCDC)
Thursday, February 18, 2016
6:30 P.M.
Senior Center, Assembly Room
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 January 21, 2016 minutes
3) Public comment of items not on the agenda
4) Staff/commission announcements
5) Discussion regarding applications for FY17 Community Development
Block Grant (CDBG) and HOME Investment Partnerships Program
(HOME) Funding - Question/Answer Session
6) Adjournment
MINUTES PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
JANUARY 21, 2016 — 6:30 PM SENIOR
CENTER, ASSEMBLY ROOM
MEMBERS PRESENT: Peter Byler, Michelle Bacon Curry, Sydny Conger, Bob Lamkins,
Jim Jacobson, Harry Olmstead, Matthew Peirce, Dorothy Persson,
Emily Seiple
MEMBERS ABSENT: None
STAFF PRESENT: Kris Ackerson, Marcia Bollinger, Tracy Hightshoe, Steve Rackis
OTHERS PRESENT: Dee Dixon, Tracy Achenbach, Stu Mullins, Ron Berg, Becci
Reedus, Karen DeGroot, Scott Hansen, Mark Sertterh, Albert
Persson, Susan Gray (sp?), Marty Venograde
By a vote of 9-0 the Commission recommends the City Council approve the following allocations
for FY17 Aid to Agencies funding.
Housing and Community Development Commission
January 21, 2016
Page 2 of 12
Agency
FY17
Requests
HCDC
Recommendation
Shelter House
$65,000
$ 50,000
Neighborhood Centers of JC
$50,000
$ 43,700
Domestic Violence Intervention Program
$48,000
$ 40,000
United Action for Youth
$52,391
$ 40,000
Crisis Center of Johnson County
$55,825
$ 40,000
Big Brothers / Big Sisters
$33,000
$ 25,000
Elder Services Inc.
$50,000
$ 25,000
Housing Trust Fund of JC
$24,000
$ 24,000
IC Free Medical/Dental Clinic
$15,000
$ 15,000
Free Lunch Program'
$18,000
$ 16,000
Pentacrest, Inc./Pathways Adult Day
Health Center
$15,000
$ 15,000
Prelude Behavioral Services
$25,000
$ 15,000
Rape Victim Advocacy Program
$17,500
$ 15,000
4 C's Community Coord. Child Care
$41,750
$ 15,000
Arc of Southeast Iowa
$15,000
$ -
Four Oaks - Pal Program
$15,000
$ -
Compeer ofJohnson County
$15,000
$ -
National Alliance on Mental Illness of
Johnson Co.
$15,000
$ -
Table to Table
$10,000
$ -
Systems Unlimited
$55,000
$ -
Iowa Jobs for American's Graduates (JAG)
$15,000
$ -
IV Habitat for Humanity
$15,000
$ -
Girl Scouts of Eastern Iowa & Western
Illinois
$15,000
$ -
Total Request:
$680,466
$378,700
(Minimum allocation was $15,000)
By a vote of 9-0 the Commission recommends City Council approve the amendments to the Iowa
City Housing Authority's Admissions and Continued Occupancy (ACOP) Plan to require that all
public housing units are smoke free.
By a vote of 5-4 (Bacon Curry, Byler, Lamkins, and Persson dissenting) the Commission
recommends City Council approve inclusion of the Housing Choice Vouchers as a protected
class under source of income.
By a vote of 9-0 the Commission recommends City Council approve the proposed FY2016
Annual Action Plan Amendment #3.
CALL TO ORDER:
Byler called the meeting to order at 6:30 PM.
Housing and Community Development Commission
January 21, 2016
Page 3 of 12
APPROVAL OF NOVEMBER 19, 2015 MINUTES:
Persson moved to approve the minutes of November 19, 2015.
Seiple seconded the motion.
A vote was taken and motion passed 7-0 (Lamkins & Peirce not present for vote).
PUBLIC COMMENT:
None
�3I/_1y;rX41iv, Iiv, I&1_1Is] . Ill 01101[oil] 01[a4IT, 1=1Z1119
Ackerson introduced Olmstead, a new commissioner. Olmstead had previously served on the
Human Rights Commission.
Ackerson mentioned they received 11 applications for CBDG/HOME funding. Ackerson stated
the applications will be forwarded to Commission members the next day.
Lamkins and Peirce arrived at meeting.
Hightshoe stated that back in the 1990's there was a demonstration project for affordable
housing. The City provided $30,000 in down payment assistance to an eligible family to purchase
a home at 1109 51" Avenue. The $30,000 was to be repaid upon sale of the property. The house
was in danger of foreclosure. The City purchased the home from the owner to prevent it from
going into foreclosure. The City will now rehab the home and sell it for a homebuyer under 80%
of median income.
Hightshoe stated the CDBG Economic Development Fund, in existence since 2003, is now out of
funds. The fund provided low or no interest loans to eligible businesses providing employment to
low -moderate income persons. The Council has a $50,000 set -aside for economic development.
The Council Economic Development Committee will determine if additional funds will be used for
this purpose in FY17. If yes, funds will be available in July.
Ackerson noted Congress approved the bill authorizing CDBG and HOME funding at
approximately the same level as last year. Unfortunately, more communities are eligible for the
funds. Iowa City may be allocated less money as HUD must split the funds amongst more cities.
DISCUSS FY2017 AID TO AGENCIES FUNDING REQUESTS AND CONSIDER BUDGET
RECOMMENDATION TO CITY COUNCIL — APPLICATIONS ARE AVAILABLE AT
www.icgov.org/actionplan:
Byler noted that Ackerson compiled the Commissioner's recommendations showing the median
and the average. He mentioned that generally for Aid to Agencies they do not call each agency
up unless someone on the Commission has specific questions. Byler noted that if anyone from
the agencies wishes to address the Commission they are welcome to. He mentioned the
Housing and Community Development Commission
January 21, 2016
Page 4 of 12
Commission appreciates the time that went into the applications and wishes they could fully
award them all.
Byler suggested the Commission go through the recommendations based on majority
agreement first. Persson suggested that the median shows only a $1,000 difference in overall
allocations, so perhaps approve the median and then figure out how to allocate the additional
$1,000.
Byler suggested discussing the projects first and then arriving at a consensus based on the
median numbers. Byler noted that a minimum $15,000 allocation is driving some of the
decisions. The Commission used to fund less than $5,000, but decided to raise the minimum to
make a greater impact with the funds. Bacon Curry noted that in one application it was noted
how the raising of the minimum wage was affecting agencies but felt it important to support the
other initiatives that are important.
Agencies that were only chosen for funding by one Commissioner were discussed. Byler noted
that Big Brothers Big Sisters to him is a youth organization which is listed as a medium priority,
but it shows on the list as a mental health/high priority.
Scott Hansen, Big Brothers Big Sisters, stated they are a mentoring organization and provide
services in many different ways. They work very closely with child psych at UIHC for mental
health services. He did note that mental health services is not their primary focus, but have
programs that provide mental health services.
Persson noted she and her husband were a couples match for Big Brother Big Sisters for ten
years for a young person with disabilities.
Hightshoe asked if they spent more than $24,000 for mental health services. Hansen stated yes.
Hightshoe noted that whenever there is an agency with a medium priority and they are applying
for a specific program that is a high priority, it can be funded with conditions. In the City's
agreement only the activities associated with the high priority will be funded. So in this case if the
City awarded money to Big Brother Big Sisters, the $24,000 would need to be targeted to mental
health services.
Byler also commented on Elder Services. They are a medium priority and were allocated a
significant amount less than in prior years. From his understanding the Council was then
petitioned directly and the Council came up with additional funds to increase their allocation for
the year. Byler noted that was unusual and Council would probably not be able to keep doing this
as there is just not enough extra money out there. He did note all applicants are very important to
the community.
Bacon Curry noted that other agencies were clearer about what the funds would be used for.
She wasn't sure if it was going to be spread out amongst the whole agency or if specific
programs were being targeted.
Byler asked if any other Commissioners wanted to discuss specific applications. Byler then
asked if any of the applicants in the audience wanted to address the Commission to comment on
their applications. No one came forward.
Persson noted that if they go with the median allocation model, there is an additional $1,000 to
allocate. She suggested those additional funds go to Prelude Behavioral Services. Olmstead
Housing and Community Development Commission
January 21, 2016
Page 5 of 12
suggested the additional funds go to the Free Lunch Program because it is hard for that program
to get resources financially, and the median is under the requested amount. Conger agreed,
noting that it would be nice to see the funds to go an agency that does not collect fees for
services. Prelude has clients that pay or they can bill insurers for services whereas Free Lunch is
strictly donation funded. Lamkins agreed on giving the Free Lunch Program the additional funds.
Bacon Curry also agreed, noting Free Lunch asked for $18,000. Persson noted no objection as
well.
Byler asked if there was someone from Domestic Violence Intervention Program. He had a
question on the budget. In the last fiscal year there was a $140,000 increase in salaries and
there was a $300,000 federal grant and wanted more information on those line items.
Dee Dixon, DVIP, replied stating that they began to serve more areas/counties as the State of
Iowa closed programs in southeast Iowa. In their service area they lost more than half the
available beds when shelters closed.
Olmstead moved that the Commission recommend to the City Council the following
allocations for FY17 Aid to Agencies funding.
Housing and Community Development Commission
January 21, 2016
Page 6 of 12
Agency
FY17
Requests
HCDC
Recommendation
Shelter House
$65,000
$ 50,000
Neighborhood Centers of JC
$50,000
$ 43,700
Domestic Violence Intervention Program
$48,000
$ 40,000
United Action for Youth
$52,391
$ 40,000
Crisis Center of Johnson County
$55,825
$ 40,000
Big Brothers / Big Sisters
$33,000
$ 25,000
Elder Services Inc.
$50,000
$ 25,000
Housing Trust Fund of JC
$24,000
$ 24,000
IC Free Medical/Dental Clinic
$15,000
$ 15,000
Free Lunch Program*
$18,000
$ 16,000
Pentacrest, Inc./Pathways Adult Day
Health Center
$15,000
$ 15,000
Prelude Behavioral Services
$25,000
$ 15,000
Rape Victim Advocacy Program
$17,500
$ 15,000
4 C's Community Coord. Child Care
$41,750
$ 15,000
Arc of Southeast Iowa
$15,000
$ -
Four Oaks - Pal Program
$15,000
$ -
Compeer of Johnson County
$15,000
$ -
National Alliance on Mental Illness of
Johnson Co.
$15,000
$ -
Table to Table
$10,000
$ -
Systems Unlimited
$55,000
$ -
Iowa Jobs for American's Graduates (JAG)
$15,000
$ -
IV Habitat for Humanity
$15,000
$ -
Girl Scouts of Eastern Iowa & Western
Illinois
$15,000
$ -
Total Request:
$680,466
1$378,700
Conger seconded the motion.
A vote was taken and the motion passed 9-0.
CONSIDER A RECOMMENDATION TO THE CITY COUNCIL REGARDING PROPOSED
SMOKE FREE POLICY IN PUBLIC HOUSING UNITS:
Rackis gave an overview of the proposed policy, stating it would be mandatory for public housing
agencies to go smoke free in public housing units. Even though this proposal is still in the public
Housing and Community Development Commission
January 21, 2016
Page 7 of 12
comment period, Rackis feels it will happen and wants to be prepared. He noted it was part of an
evolution of participation in the STAR certification for the City, which is a way for communities to
evaluate themselves. It is very a detailed certification and the smoke free policy was part of that.
The only issue the City has with the HUD ruling is the 25 foot barrier required from the building.
This makes sense with multi -family properties with common areas. The City currently only has
two multi -family units and they are already smoke free. The City proposes instead of a 25 foot
barrier to just designate the right-of-way as the smoking area. The City will not actively enforce
this as no practical way to do so, but it will respond to complaints. Rackis noted that on the HUD
website the public comments are overwhelmingly in favor of the smoking ban, it is mostly those
living in the units that are smokers who are objecting.
Conger asked what the enforcement would be if a complaint was received. Rackis said it would
be treated as a violation of the lease. He noted that legal questioned if a magistrate in Johnson
County would allow the eviction of a low-income family from public housing due to smoking in the
units. He said across the country there have been communities that have adopted such policies
and have been able to enforce them through the court system. If a complaint was received,
Rackis said the first step is to issue a 7 day notice to cure" which means the occupant has 7
days to correct the issue (to quit smoking in the unit). The notice will also state if it happens
again within 6 months the City could pursue an eviction. He also noted that HUD does make
accommodations for tenants with disabilities so the City would honor those as well.
Olmstead asked how many units city-wide would be affected by this policy. Rackis said there are
81 units. Olmstead asked if this policy also pertains if the tenant has a guest over. Rackis said
yes, the guest must also go outside to the public right-of-way to smoke.
Persson asked if the City goes in on a regular basis to paint or repair the units, especially those
who have been tenants for multiple years. Rackis said those type of maintenance issues are
usually handled when there is unit turnover, however it can be done at the tenant's request if
they are long-term tenants. There is an annual inspection of every unit.
Conger moved to recommend approval of the amendments to the Iowa City Housing
Authority's Admissions and Continued Occupancy (ACOP) Plan to require that all public
housing units are smoke free.
Peirce seconded the motion.
A vote was taken and the motion passed 9-0.
CONSIDER A RECOMMENDATION TO THE CITY COUNCIL REGARDING INCLUSION OF
HOUSING CHOICE VOUCHERS AS A PROTECTED CLASS UNDER SOURCE OF
INCOME:
Rackis noted this is not a Housing Authority recommendation but rather from the Human Rights
Commission. Once the Human Right Commission made their recommendation the Housing
Authority met with the City's Equity Director and other staff members to discuss the issue. City
staff also reached out to the greater Iowa City apartment owners association and got their input.
Rackis said the Human Rights Commission made their recommendation in February and met
with the apartment owners in July.
Housing and Community Development Commission
January 21, 2016
Page 8 of 12
Rackis explained this proposal. In the Human Rights Ordinance source of income is included as
a protection; one cannot discriminate on the basis of someone's source of income. The definition
included sources like Family Investment Program, food stamps, etc., but the Housing Choice
Voucher (Section 8) was not part of the definition of source of income. It is illegal for a landlord
to discriminate on the basis of source of income. This proposal adds Housing Choice Voucher to
the definition so it would also be illegal to discriminate against someone just due to their voucher
status.
Bacon Curry noted that is a big change, noting that a Housing Choice Voucher is not a source of
income for a tenant; it is a source of income for a landlord. A landlord does not just have to take
a specific source of payment when they accept a Housing Choice Voucher they have to accept
an addendum to their lease that supersedes anything that is in their own lease and has an
additional inspection and reporting requirements.
Rackis noted the tendency addendum does not change their lease, the HAP contract only states
that if the HAP contract is cancelled it cancels the lease. Additionally there are no reporting
requirements for the landlord.
Bacon Curry noted that when a private landlord that is not accepting vouchers has some sort of
violations to their lease they handle it. If they do accept vouchers they are required to report
violations to the Housing Authority and are not allowed to charge late fees if the tenant is not
current.
Rackis noted that in terms of lease violations, landlords are not required to report lease violations
to the Housing Authority, it is just preferred that they do. If someone is late on their rent, if the
landlord provides the City with that notice, the City can assist the landlord and communicate with
the tenant.
Bacon Curry noted the Housing Choice Voucher program is a great program, but it should not be
a protected class because the money goes to the landlord, not the tenant. The City is subsidizing
the landlord, not the tenants. Concern was also expressed that many landlords will not want
increased City interference or regulations about how they select their tenants.
Hightshoe noted the intent of this proposal is to provide the same opportunity for all tenants and
use the same method to screen all tenants, regardless of a tenant's income/rent source. Voucher
holders do not need to be prioritized and can be denied based on landlord criteria, as long as the
same criteria applies to everyone, such as bad landlord references, history of eviction, damage
to unit, etc. If there are multiple tenant applications, the landlord can make an appropriate
selection based on their screening method such as date of application, can immediately rent the
unit, etc. if all other criteria (the landlord's screening criteria) are met.
Jacobsen noted that this could be listed as its own separate protected class, a housing subsidy,
rather than income protected class. This just simplifies the process, but it is just semantics.
Jacobson agrees with Rackis that this is an issue of discrimination and whatever the community
can do to limit the amount of discrimination it is encumbered upon them to do so. Having this
policy in place does not force landlords to rent to voucher holders, but it will give them pause to
have to consider their decisions.
Byler asked how a landlord should approach a prospective tenant who has a housing voucher,
but the landlord's rents are significantly higher than the housing voucher limits or tenant's
Housing and Community Development Commission
January 21, 2016
Page 9 of 12
income. It seems unfair to have the prospective tenant fill out and pay and application fee just to
learn they cannot move into the unit. Rackis said the prospective tenant should communicate
with their case worker prior to filling out an application and paying a fee to make sure they meet
the all the guidelines for the unit they are applying for.
Lamkins was concerned that landlords would have to meet with their attorney to review
screening criteria to make sure they are not sued. They will be concerned if they will be called
racist or open themselves to lawsuits. Landlords will inform all applicants they can apply as they
will be concerned about a suit, even when they know they will not lower rent based on voucher
eligibility. He was also concerned if some landlords would raise their rents and or increase
screening criteria that may impact all low income tenants.
Concern was noted that with such a high voucher utilization rate, why it is needed. Are we trying
to fix a problem that doesn't exist? Hightshoe noted this proposal will not impact our voucher
utilization rate. It is intended to increase opportunity of tenants with a voucher to access units in
different neighborhoods that they can afford.
Olmstead suggested tabling this item until the next meeting and inviting Stefanie Bowers from
the Human Rights office and one of the City Attorneys to answer some of the questions and
concerns. Byler said the issue is this item is going to City Council at the February 2 meeting.
Olmstead moved that the Commission recommend to City Council to approve inclusion of
the Housing Choice Vouchers as a protected class under source of income.
Jacobsen seconded the motion.
Seiple said that when she has called on behalf of friends who were nervous about contacting
landlords because they have a voucher, the reason landlords gave for not accepting them had
nothing to do with inspections, it was more derogatory. There is a perception problem of who
needs a voucher.
Conger noted this is a change to an ordinance; it can be changed again in the future if Council
hears complaints or that it is not working property. She sees this as a value added and in line
with CITY STEPS.
Peirce asked what the percentage of people currently being turned away from rental units
because they have Housing Vouchers is. If it is only 1 % there shouldn't be a protective class to
protect such a small class. Rackis did not recall the numbers but they did report to HUD recently
on voucher utilization and the fact was the City had to increase the voucher eligibility days from
120 to find a unit to 365. Either people found a home with their voucher in the first 60 days or
otherwise it was 150 to 180 days.
Byler noted he will be voting no on this motion for the reason of not having addressed the
question of landlords who are close to or above fair market rents and what they tell applicants.
Rackis said fair market rents are not what determine if the voucher can be used; it is the income
of the applicant. This ordinance will not compel landlords to change their rents.
Hightshoe stated a great deal of education will need to be done as there are many incorrect
assumptions about the voucher program. Staff will work to improve understanding of the voucher
program and the people who utilize them.
Housing and Community Development Commission
January 21, 2016
Page 10 of 12
Persson asked about abstaining from the vote as she was not ready to make a decision.
Hightshoe stated the preference is that if a member does not have a conflict, they vote yes or no
If a member feels they don't have enough information to make a decision, they should vote no.
A vote was taken and the motion carried 5-4 (Bacon Curry, Byler, Lamkins, and Persson
dissenting).
CONSIDER A RECOMMENDATION TO CITY COUNCIL REGARDING PROPOSED FY2016
ANNUAL ACTION PLAN AMENDMENT#3:
Ackerson explained that in the current Action Plan there is a $75,000 streetscape project in
census tract 18 which is south of Highway 6 and east of Sycamore Street. $50,000 is for curb
ramps for accessibility and $25,000 for additional signage in the neighborhood. The signage
project will now be funded with other sources as determined not appropriate with CDBG funds.
Due to the nature of CDBG and the low income requirements; signage on major arterials is not
eligible as the traffic is not necessarily local traffic.
Since CDBG funds will not be used for the signage, there is a request to use the funds for
improvements at the Highland Park in the Lucas Farms neighborhood. The neighborhood has
been very involved in advocating and assisting with park improvements. These funds will help
finish the improvements requested by the neighborhood.
Jacobsen moved to recommend to City Council the proposed FY2016 Annual Action Plan
Amendment #3.
Olmstead seconded the motion.
A vote was taken and the motion passed 9-0.
CONSIDER FORMING SUB -COMMITTEE TO CELEBRATE NATIONAL COMMUNITY
DEVELOPMENT WEEK, MARCH 28-APRIL 2:
Byler asked if anyone was interested. Hightshoe explained that cities typically promote the
impact of the CDBG/HOME programs annually. The City used to have a Community
Development Celebration in years past, but hasn't had one in two -three years. Hightshoe asked
if a subcommittee wanted to be formed to consider what type of activities, if any, the City would
like to pursue for this week.
Due to time constraints and other personal obligations there was not an interest on the
Commission to form a sub -committee. Hightshoe stated their intern may be able to organize a
couple smaller activities. Staff would keep them informed.
OVERVIEW OF HOUSING PRO FORMA TEMPLATE:
Ackerson just wanted to invite any of the Commissioners who are interested in an overview of
the Pro Formas to contact him and he will schedule a time.
ADJOURNMENT:
Olmstead moved to adjourn.
Housing and Community Development Commission
January 21, 2016
Page 11 of 12
Persson seconded the motion.
A vote was taken and motion carried 9-0.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
ATTENDANCE RECORD
NAME
TERM EXP.
2/19/15
3/12/15
4/16/15
6/18/15
9/17/15
10/22/15
11/19/15
1/21/16
BACON CURRY, MICHELLE
9/1/2016
X
X
O/E
X
X
O/E
O/E
X
BYLER, PETER
9/1/2017
X
X
X
X
X
X
X
X
CONGER, SYDNY
9/1/2018
---
---
---
---
O/E
O/E
X
X
JACOBSON, JIM
9/1/2017
X
X
X
O/E
X
O/E
X
X
LAMKINS, BOB
9/1/2016
X
X
X
O/E
X
X
X
X
OLMSTEAD, HARRY
9/1/2018
---
---
---
---
---
---
---
X
PEIRCE, MATTHEW
9/1/2018
---
---
---
---
---
---
---
X
PERSSON, DOTTIE
9/1/2016
X
X
X
X
X
X
X
X
SEIPLE, EMILY
9/1/2018
---
---
---
---
X
X
X
X
SIGNS, MARK
9/1/2018
---
---
---
---
X
X
X
---
TAYLOR, ANGEL
9/1/2017
X
O
X
X
O
---
---
---
Key:
X
= Present
O
= Absent
O/E
= Absent/Excused
= Vacant
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
..Expansion
Project Address
2620 Muscatine Avenue
Activity Type
Daycare Facility for Children with Disabilities
CITY STEPS Priority
Public Facility Improvements
CITY STEPS Goal
Improve and maintain public facilities
Achieved
0-30% MFI 50%
Beneficiaries
31-50%MFI 17%
51-80% MFI 22%
Above 80% 11%
Amount Requested
$160,000
Repayment Terms
Conditional Occupancy Loan
Period of Affordability/
Compliance Period
16 years
Percent of Project
Funded by
96%
CDBG/HOME
Property Taxes
Tax Exempt
Ik ,
, 'J'ii
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
The proposed project is the renovation of a facility to divide one
lower level area into three classrooms as well as add an additional
Documentation of
classroom to the upper level. Additional restrooms will be added.
Project Need
Currently, they have the square footage to serve 90 children but their
current configuration does not allow for children of different ages to
attend at the same time.
Phase 1 estimated cost: $78,730
Phase 2 estimated cost: $14,830
Project Budget
Phase 3 estimated cost: $63,910
Discussion
The applicant has received two bids from contractors for the
proposed project. There will be $7,470 in matching funds.
Project Coordination
The Arc of Southeast Iowa is the oldest continuously operating
with Existing Services &
provider in Iowa City. It partners with the Iowa City Parks and
other Services Available
Recreation Department and other providers. They have received
in the Community
volunteer requests to assist with wall demolition and any other tasks
allowing unskilled labor.
Applicant History or
Capacity to Successfully
In the last five years, the applicant has received one CDBG award and
Complete the Proposed
successfully administered the funds.
Project
1. All work will be subject to federal labor provisions (Davis Bacon —
prevailing wages) and must comply with federal procurement
standards (sealed bids for construction) for the proposed work.
Summary of Items
2. Does the applicant receive compensation for the daycare services
to be Addressed
provided? If so, can the applicant contribute additional funds to
this project?
3. Staff recommends hiring an architect for procurement and
construction management for projects over $100,000 to ensure
compliance with federal requirements.
Ik ,
, 'J'ii
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
..
Project Address
921 3`d Avenue, Iowa City, Iowa
Activity Type
Public Facility
CITY STEPS Priority
Public Facility Improvements
CITY STEPS Goal
Improve and maintain public facilities
Achieved
Beneficiaries
0-30% median income - 100%
Amount Requested
$145,000
Repayment Terms
Conditional Occupancy Loan
Period of Affordability/
Compliance Period
15 years
Percent of Project
Funded by
100%
CDBG/HOME
Property Taxes
Tax Exempt
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Affordable childcare is provided at other locations but transportation
logistics and costs can be barriers to access for low income families.
Documentation of
The applicant proposes an office addition adjacent to the existing
Project Need
daycare facility, as well as a new accessible ramp to the lower level of
another structure. The daycare recently expanded their facilities to
increase enrollment from 15 to 30 low income children; the proposed
improvements will enable an additional 35 children to attend.
The project is estimated to cost $145,000 and includes volunteer in -
Project Budget
kind match totaling 118 hours for selective demolition and painting.
Discussion
Estimates have been procured from an Thomas McInerney Architect
and Buchmayer Plumbing and Home Repair.
Project Coordination
The project includes a partnership with Boy Scout Troop 250.
with Existing Services &
Additionally, the church serves as a community center that helps
other Services Available
connect low income residents with public services and education
in the Community
opportunities.
Applicant History or
The CSCC Childcare received support from the City of Iowa City as a
Capacity to Successfully
co -signor to obtain $5,000 for facility expansion. The loan has been
Complete the Proposed
repaid with no late payments. The improvements followed their
Project
successful application for a special exception.
1. Has the applicant met with City staff regarding their proposed
special exception? It's unclear whether the existing parking lot
has sufficient space for the proposed expansion.
2. The space must be used for primarily secular (non -religious)
Summary of Items
activities. Will religious instruction be provided or required as
to be Addressed
part of the childcare curriculum?
3. How was the client income estimate determined? If awarded
funds, the applicant must document that 51 percent of clients
are below 80 percent annual median income. Can applicant
comply with this requirement?
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Name
RepairProject
DVIP Shelter —
Project Address
DVIP Shelter - confidential
Activity Type
Domestic violence facility
CITY STEPS Priority
Public Facility Improvements - Domestic violence victims
CITY STEPS Goal
Improve and maintain public facilities
Achieved
0-30% MFI 73% (Revised from application miscalculation)
Beneficiaries
31-50% MFI 15%
51-80% MFI 9%
Over80% MFI 4%
Amount Requested
$58,397
Repayment Terms
Conditional Occupancy Loan
Period of Affordability/
Compliance Period
6 years
Percent of Project
Funded by
95%
CDBG/HOME
Property Taxes
Tax exempt
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
DVIP provides shelter, crisis intervention and support services to
victims of domestic violence and their children. A critical aspect of
Documentation of
the program is to provide a safe environment while the client moves
Project Need
beyond the initial stages of crisis. The shelter has housed more than
8,000 women and children since the facility was constructed in 1993.
Applicant requests funds to replace 23—year-old bunk bed frames,
repair two asphalt parking lots, and replace six windows.
Project Budget
CDBG funds make up approximately 95%of the project's budget. The
applicant secured one (1) cost estimate for the expenses stated in the
Discussion
budget breakdown.
Project Coordination
DVIP collaborates with a wide range of community groups working on
with Existing Services &
housing issues and support services, such as Goodwill of the
other Services Available
Heartland, Community Mental Health PATH, Department of Human
in the Community
Services, and others.
Applicant History or
DVIP has received a number of CDBG funding awards, including funds
Capacity to Successfully
to construct and subsequently rehab the current facility. In the past,
Complete the Proposed
DVIP has shown sufficient capacity to complete the projects.
Project
1) One third of the clients served by DVIP live outside of Iowa City.
Has the applicant requested funds from other public and private
entities?
Summary of Items
2) All work will be subject to federal labor provisions (Davis Bacon —
to be Addressed
prevailing wages) and must comply with federal procurement
standards) for the proposed work.
3) Bunk beds are not an eligible public facility expense. The total
eligible costs must be reduced to $45,917.
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
..Program, Service Center Renovation
Project Address
407 Highland Court
Activity Type
Public facility rehab
CITY STEPS Priority
Public Facility Improvements
CITY STEPS Goal
Improve and maintain public facilities
Achieved
0-30% MFI 70%
Beneficiaries
31-50%MFI 23%
51-80% MFI 7%
Over 80% MFI 0%
Amount Requested
$60,000
Repayment Terms
Conditional Occupancy Loan
Period of Affordability/
Compliance period of 6 years.
Compliance Period
Percent of Project
Funded by
86%
CDBG/HOME
Property Taxes
Tax Exempt
Ik ,
;I wiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
MYEP serves disabled residents of Iowa City. The MYEP main office
facility serves as the administrative office as well as the location of
the Adult Daycare Program. The facility requires the reconfiguration
Documentation of
of entry and waiting areas, as well as the addition of secure entry and
Project Need
a buzz -in system for visitors. They also have an exit door that in order
to make accessible will require door replacement, the addition of a
ramp, and the removal of shelving. Programming areas also have an
ongoing water issue that requires a beaver dam system. Finally, they
have an old heating/cooling unit that needs to be replaced.
Project Budget
CDBG funds make up approximately 86%of the project's budget.
Discussion
Volunteers will be used when possible to save on labor costs.
Project Coordination
MYEP partners with many local agencies including Hope House, the
with Existing Services &
Iowa City School District, Kirkwood Community College, UAY, the
other Services Available
ARC, Systems Unlimited, etc. They will seek volunteers from Hope
in the Community
House to help with unskilled labor activities, including demolition.
Applicant History or
Capacity to Successfully
MYEP successfully completed the projects from previous funding
Complete the Proposed
rounds and has the capacity to successfully complete this project.
Project
1. Does applicant have a capital reserve budget?
2. All work will be subject to federal labor provisions (Davis Bacon —
prevailing wages) and must comply with federal procurement
Summary of Items
standards (competitive bids) for the proposed work.
to be Addressed
3. Does the applicant receive compensation for the services
provided? If so, can the applicant contribute additional funds to
this project?
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
Project Address
Location to be determined for fifteen new efficiency rental units and
low barrier Winter Emergency Shelter
Activity Type
Housing and public facility
1. Expanding Affordable Rental and Owner Housing Opportunities
CITY STEPS Priority
2. Housing and Related Services for the Homeless and Those at Risk of
Homelessness
CITY STEPS Goal
Increase supply of affordable rental housing
Achieved
Improve and maintain public facilities
Beneficiaries
0-30% MFI — 100 percent
$160,000 CDBG
Amount Requested
$290,000 HOME
$160,000 CDBG — conditional occupancy loan of 16 years
Repayment Terms
$290,000 HOME —Zero interest; annual payments of $14,500 for
Years 1-20.
Period of Affordability/
Applicant proposes 20 years (federal minimum of 10 years)
Compliance Period
Percent of Project
Funded by
22%
CDBG/HOME
Property Taxes
Project will not pay property taxes
Ik ,
, 'J'iiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
The applicant proposes to acquire property for 15 permanent
efficiency rental units targeted for the chronically homeless and a low
barrier Winter Emergency Shelter, which provides overnight shelter
to intoxicated individuals.
Documentation of
During the winter of 2014-15, Shelter House served 124 individuals at
Project Need
the temporary low -barrier winter shelter. This year the low barrier
shelter is located in a new temporary location and on track to serve
more homeless individuals than last year. Providing a dedicated space
for the winter shelter and permanent rental units will allow staff to
provide services that stabilize clients and reduce other negative
outcomes.
The cost per person served is $9,840 or $492 per person per year for
twenty years. Total project cost is $1,624,115. The rental unit
Project Budget
component of the project has a Debt Coverage Ratio of 1.7 in Year 1,
based on rental income of $534/unit/mo. The Housing Authority
Discussion
estimates the rental income could be as low as $502/unit/mo.,
depending on the provision of utilities and kitchen facilities. This is
more than adequate cash flow to be sustainable.
Project Coordination
The applicant has a network of relationships with area agencies,
with Existing Services &
organizations and private businesses to ensure the success of each
other Services Available
in the Community
project.
Applicant History or
Shelter House currently operates the homeless shelter and the
Capacity to Successfully
seasonal, low barrier Winter Emergency Shelter. The applicant has a
Complete the Proposed
history of completing grant funded projects, including CDBG funds.
Project
1. How will the Winter Emergency Shelter space be used during the
day?
2. If unable to build fifteen units due to limitations of the site, what
is the minimum number of units that Shelter House would
consider?
Summary of Items
3. Units must be limited to frail elders or people with disabilities;
to be Addressed
otherwise the Affordable Housing Location Model will apply.
4. A location is not identified for the shelter or permanent
supportive housing. If an acceptable site is not identified by
March 2017, the City must reallocate the funds.
5. If the winter shelter and housing cannot exist at the same site,
will Shelter House proceed with them independently?
10
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
.•
Project Address
1700 1st Avenue
Activity Type
Public Facility
Housing and Related Services for the Homeless and Those at Risk of
CITY STEPS Priority
Homelessness
CITY STEPS Goal
Improve/maintain public facilities
Achieved
0-30% MFI 100%
31-50% MFI 0%
Beneficiaries
51-80%MFI 0%
Over 80% MFI 0%
Amount Requested
$58,950
Repayment Terms
Conditional Occupancy Loan
Period of Affordability/
Compliance Period
6 years
Percent of Project
Funded by
75%
CDBG/HOME
Property Taxes
Tax Exempt
11
Ik ,
, 'J'iiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
UAY is seeking to rehab and update the newly acquired office space
for the Transitional Living Program and Teen Parent Program in
Documentation of
Eastdale Plaza. Modern lighting, doors, carpet, and exterior
Project Need
improvements will ensure updates are not needed for years to come.
The space houses four teen parent advocates, two transitional living
advocates, program supervisor, nurse practitioner, and health
educator.
$20,000 in reserve funds from the sale of previous property will be
Project Budget
utilized to partially cover costs. A cost estimate was provided with the
Discussion
application to verify costs.
Project Coordination
UAY coordinates their services with multiple area agencies. However,
with Existing Services &
no community partnerships or volunteers will be contributing directly
other Services Available
to this project.
in the Community
Applicant History or
In the last five years, the applicant has received one CDBG award,
Capacity to Successfully
which was returned to the City. The property was sold prior to
Complete the Proposed
implementing the planned rehab.
Project
1. All work will be subject to federal labor provisions (Davis Bacon —
prevailing wages) and must comply with federal procurement
Summary of Items
standards for the proposed work. If project bid is over $100,000,
to be Addressed
sealed bids are required.
2. Is applicant using an architect and/or general contractor?
12
Ik ,
, 'J'ii
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
D• Operation
Project Address
322 East 2°d Street, Iowa City
Activity Type
Housing administration
CITY STEPS Priority
Preserve existing affordable rental and owner housing units
CITY STEPS Goal
Increase the capacity of non-profit housing providers that preserve
Achieved
existing affordable rental housing
Low income tenants are the indirect beneficiaries. The Housing
Beneficiaries
Fellowship owns and manages approximately 170 affordable rental
homes in the Iowa City metro area.
Amount Requested
$16,000 or 5% of the final HOME entitlement allocation.
Repayment Terms
Grant
Period of Affordability/
N/A
Compliance Period
Percent of Project
Funded by
6%of administrative budget
CDBG/HOME
Property Taxes
Tax Exempt
13
Ik ,
, 'J'iiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
The Housing Fellowship (THF) has been a certified CHDO since 1992.
THE now owns and manages approximately 170 affordable rental
units occupied by low-income households, developed and sold 17
owner -occupied homes into a land trust to ensure permanent
affordability, and administers a revolving loan fund for very low-
income renters to pay for security deposits. The financial
Documentation of
management responsibilities have grown overtime.
Project Need
THE currently has 6.6 full time equivalent jobs. The CHDO funds
requested will help THE achieve financial stability and cover operating
costs to plan housing projects. The CITY STEPS 2016-2020 encourages
the City to increase the capacity of non-profit housing providers that
preserve existing affordable rental housing.
The project is an operational grant allowed under the HOME
Project Budget
program. The HOME program caps CHDO operating expense to 5% of
Discussion
the HOME allocation. Funds allocated for CHDO operating expenses
are not an eligible cost for CH DO set -aside funds.
Project Coordination
The applicant has a long history of working with a variety of agencies,
with Existing Services &
organizations and private businesses. THE is a partner with the City of
other Services Available
Iowa City for the UniverCity Neighborhood Partnership Program and
in the Community
approved developments in Riverfront Crossings.
Applicant has successfully managed hundreds of thousands of dollars
Applicant History or
of CDBG and HOME funded projects. THE has experience and a
Capacity to Successfully
successful track record with the acquisition, construction, and
Complete the Proposed
Project
management of affordable housing. THE qualifies as a Community
Housing Development Organization (CHDO).
Summary of Items
No questions at this time.
to be Addressed
14
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
ProjectDiamond
Senior Apartments
Project Address
1030-1070 William Street
Activity Type
Senior Citizen Rental Housing
CITY STEPS Priority
Expanding Affordable Rental and Owner Housing Opportunities
CITY STEPS Goal
Increase the supply of affordable rental housing
Achieved
0-30% MFI 10%
Beneficiaries
31-50% MFI 30%
51-80% MFI 50%
Over80% MFI 10%
Amount Requested
$237,636.00 in HOME funds (cannot accept CDBG funding)
Zero interest; no annual payments Years 1-30; balloon payment in
Repayment Terms
Year 30. Compliance period of 20 years.
Period of Affordability/
20 years (minimum of 20 years)
Compliance Period
Percent of Project
Funded by
3%
CDBG/HOME
Property Taxes
Project will pay state mandated property tax rate.
15
Ik ,
;I wiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
The 2016-2020 CITY STEPS Plan lists the City's highest priority need as
"Expanding Affordable Rental and Homeowner Housing
Opportunities." Additionally, the Housing Market Analysis section of
Documentation of
the plan indicates there is a specific need to provide affordable
Project Need
housing for renter households with incomes at or below 80% of the
area median income level and housing options to address the
growing number of elderly households. Additionally, the project will
help address slum and blight conditions in the Towncrest area.
Project Budget
This is a low-income housing tax credit project with multiple private
Discussion
and public sources of investment. The proposed HOME funds make
up approximately 3% of the project's budget.
Project Coordination
The proposed project will help meet the need for smaller, accessible,
with Existing Services &
low maintenance units for the elderly — a priority identified by
other Services Available
stakeholders and a stated priority in the 2016-2020 CITY STEPS.
in the Community
Applicant History or
3 Diamond Development owns five apartment projects (more than
Capacity to Successfully
300 units) with amenities to meet the needs of senior citizens. The
Complete the Proposed
projects are located in Chicago, Oswego, and Princeton, Illinois, as
Project
well as Dubuque, Iowa.
1. If the project is not awarded tax credits, will the application be
Summary of Items
withdrawn?
to be Addressed
2. Will this project proceed without the requested HOME funds?
If not, how would the units and amenities be affected?
16
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project
Project Address
Location to be determined - two residential lots in Iowa City
Activity Type
Owner Occupied Housing
CITY STEPS Priority
Expanding Affordable Rental and Owner Housing Opportunities
CITY STEPS Goal
Homebuyer activities/down payment assistance
Achieved
Beneficiaries
31-50% Median Family Income 100%
Amount Requested
$80,000
Recapture: 100% loan repaid upon sale during the affordability
Repayment Terms
period; forgiven if homeowner maintains as their primary residence
throughout affordability period.
Period of Affordability/
Minimum period of affordability shall be 10 years.
Compliance Period
Percent of Project
Funded by
25%
CDBG/HOME
Property Taxes
Property owners will pay taxes
17
Ik ,
, 'J'iiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Applicant will acquire two lots and construct two (2) homes to sell to
Documentation of
income eligible homebuyers. Mortgage is typically around $675 due
to no interest. Fair Market Rent for a four bedroom home is $1,420.
Project Need
The homes are affordable to those at 31-50% median income. There
is an unmet demand for affordable housing in Iowa City.
Project Budget
The total cost per unit would be approximately $160,000.
Discussion
Project Coordination
with Existing Services &
Iowa Valley Habitat for Humanity works with volunteers, donors,
Other Services
agencies, churches, and businesses to build permanent, safe housing
Available in the
for persons earning 31-50% of median family income.
Community
The following were compliance issues occurred in the last five years:
2625 Indigo Court — CDBG Assisted. Home was to remain affordable
to low income homebuyers until 9-8-2018. Habitat sold the house in
2003, and it was deeded back to Habitat in March 2010. Habitat then
leased the house, without a valid rental permit, beginning 2011 until
Applicant History or
fall of 2013. Habitat did not inform the City —staff discovered it when
Capacity to Successfully
investigating a complaint on neighboring property. City issued a
Complete the Proposed
Notice of Default and Opportunity to Cure to Habitat on 8-16-2013
and demanded repayment of the CDBG funds. In October 2013
Project
Habitat sold the property to Able LLC and repaid the CDBG loan.
2713 Whispering Meadows Drive — FY08 CDBG/HOME assisted home
completed 6/28/2012. Habitat submitted a design approved by City
staff; however was not built per the approved design. The home is
not in compliance with the Affordable Housing Design Guidelines.
Summary of Items
1. Does the applicant have the organizational capacity to
to be Addressed
complete two homes within the grant program requirements?
lu
Ik ,
; I Ji
Y rw•�
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project..
.•Project
Project Address
Acquisition of one property containing three bedrooms; location to -
be -determined
Activity Type
Rental Housing
CITY STEPS Priority
Expanding Affordable Rental and Owner Housing Opportunities
CITY STEPS Goal
Rental housing development
Achieved
Beneficiaries
0-30% median income - 100%
Amount Requested
$65,000
Repayment Terms
10-year conditional occupancy loan
Period of Affordability/
Minimum compliance period is 10 years (applicant requested 5 years)
Compliance Period
Percent of Project
Funded by
32%
CDBG/HOME
Property Taxes
Tax exempt
19
Ik ,
, 'J'ii
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
The applicant proposes acquiring a three bedroom home to provide
housing for three persons with disabilities for their Residential
Supported Community Living Program. Nearly all of the clients, due to
Documentation of
their disabilities, fall below 30 percent of the median income level.
Project Need
CITY STEPS has identified special needs and extremely low-income
individuals as among those who face the greatest challenges in the
housing market. This project will provide a supportive home for three
such clients.
The cost per unit is $68,333 and the total project cost is $205,000.The
applicant will take out a $140,000 prime loan to cover the remainder
Project Budget
of the cost not provided by HOME funds. Debt coverage ratio is 1.2
Discussion
and greater for Years 1-20. Reserves and operating expenses meet
the minimum required by the City. Rents charged will start at
approximately $395 per month per tenant.
This housing project does not involve any direct partnerships but the
Project Coordination
applicant has partnered with the Department of Human Services, and
with Existing Services &
Mental Health and Disability Services to provide services for persons
other Services Available
with disabilities. It has also partnered with other local agencies
in the Community
including the Iowa City School District, Kirkwood Community College,
UAY, the ARC, Systems Unlimited, Hope House, etc.
Applicant History or
MYEP successfully completed the projects from previous funding
Capacity to Successfully
Complete the Proposed
rounds and has the capacity to successfully complete this project.
Project
1. The project does not include management fees. Are these
Summary of Items
expenses absorbed by other revenue streams?
to be Addressed
2 Units must be limited to frail elders or people with disabilities;
otherwise the Affordable Housing Location Model will apply.
20
Ik ,
, 'J'ii
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
Project Name
Del Ray Ridge,
Project Address
Confidential location in Iowa City
Activity Type
Rental Housing
CITY STEPS Priority
Expanding Affordable Rental and Owner Housing Opportunities
CITY STEPS Goal
Rental housing development
Achieved
Beneficiaries
31-50% M FI 18% of units
51-60% M F 182% of units
Amount Requested
$300,000
Repayment Terms
20-year amortized loan at 2% interest; annual payment of $18,350
Period of Affordability/
Compliance Period
Minimum compliance period is 20 years
Percent of Project
Funded by
5%
CDBG/HOME
Property Taxes
Property taxes will be paid
21
Ik ,
;I wiz
Y rw•��
CITY OF IOWA CITY
Staff Report
CDBG/HOME Application
The applicant proposes to construct 28 dwelling units dwelling units
for residents making up to 60% of the median family income.
Documentation of
CITY STEPS and the 2008 Housing Market Analysis projected the
Project Need
affordable housing demand at 649 units (544 renter and 105 owner
units). The most recent Cook Apartment Survey identified the
vacancy rate at 1.8% or less for two- and three -bedroom units. This
project will add 28 dwelling units.
The cost per unit is $10,714. Total project cost is $5,703,765. The
applicant's pro forma has a debt coverage ratio of 0.66 (Year 1) to
Project Budget
1.48 (Year 20) but the operating expenses are higher than expected,
which gives a conservative cash flow estimate.
Discussion
Before committing funds, the City will conduct an underwriting
review based on the City's established criteria.
Project Coordination
The applicant has a long history of working with a variety of agencies,
with Existing Services &
organizations and private businesses to ensure the success of each
other Services Available
project and of the families living in each home. THE owns and
in the Community
manages 95 rental units and manages 70 LIHTC rental units. Of the
171 homes, THE constructed 93.
Applicant History or
Applicant has successfully managed hundreds of thousands of dollars
Capacity to Successfully
of CDBG and HOME funded projects. THE has experience and a
Complete the Proposed
successful track record with the acquisition, construction, and
Project
management of affordable housing. THE qualifies as a Community
Housing Development Organization (CH DO).
1. What is the likelihood that the project would move forward with
partial HOME funding or no HOME funds?
2. Does the proposed location include transit access within walking
Summary of Items to be
distance of the site?
Addressed
3. The pro forma shows a negative cash flow in Year 1. Will the
applicant borrow funds or use existing cash reserves to cover the
shortfall?
4. If tax credits are not awarded, will The Housing Fellowship move
forward with another (smaller), new construction project?
22