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HomeMy WebLinkAbout11-16-2017 Housing & Community Development CommissionAGENDA Housing & Community Development Commission Thursday, November 16, 2017 6:30 P.M. Senior Center, Room 202 28 S. Linn Street, Iowa City Use the Washington Street entrance or 2" d floor skywalk via Tower Place parking garage 1) Call meeting to order 2) Approval of the October 30, 2017 minutes 3) Public comment for topics not on the agenda 4) Update on FY18 projects without a signed agreement 5) Consider approval of draft FY19 CDBG and HOME application materials 6) Discuss the Informational Disclosure and Acknowledgement Form for rental housing permits 7) Staff/commission comment 8) Adjournment If you will need disability -related accommodations to participate in this program/event, please contact Tracy Hightshoe at trace-hightshoe0iowa-city.orq or 319.356.5230. Early requests are strongly encouraged to allow sufficient time to meet your access needs. MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 30, 2017 — 6:30 PM SENIOR CENTER, ROOM 202 MEMBERS PRESENT: Syndy Conger, Charlie Eastham, Vanessa Fixmer-Oraiz, Christine Harms, Bob Lamkins, John McKinstry, Maria Padron, Paula Vaughan MEMBERS ABSENT: Harry Olmstead STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: None RECOMMENDATIONS TO CITY COUNCIL: By a vote of 8-0 the Commission recommends to change the Aid to Agencies priority level for Domestic Violence Services from medium to high. By a vote of 8-0 the Commission recommends Council adopt the housing code, zoning, enforcement and additional housing code changes as specified in the 9/14/2017 staff memo, Recommendations for Addressing Neighborhood Stability Post HF134. By a vote of 8-0 the Commission recommends that #2 under Rental Permit Limits be eliminated from the Recommendations for Addressing Neighborhood Stability Post HF134 staff memo, not be adopted. The commission does not recommend any spacing requirements in the impact area. By a vote of 7-1 (Lamkins dissenting) the Commission recommends that the recommendation under Rental Permit Limits, #1 (establish a cap on rental permits) from the Recommendations for Addressing Neighborhood Stability Post HF134 staff memo, be adopted; however, the policy should allow administrative approval on a case by case basis as it relates to a loss of substantial value for owner - occupied homes surrounded by rental property. CALL MEETING TO ORDER: Vaughan called the meeting to order at 6:30 PM. APPROVAL OF THE SEPTEMBER 21.2017 MINUTES: Eastham moved to approve the minutes of September 21, 2017. Conger seconded the motion. A vote was taken and the motion passed 8-0. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. CONSIDER AMENDMENTS TO FY2016-2020 CITY STEPS: Hightshoe noted at the last meeting Ackerson presented a write-up of the public comments staff had received regarding needs of the community, especially as they relate to low and moderate income residents in Invest Health neighborhoods. Hightshoe passed out the current CITY STEPS priorities for all eligible categories of funding. Members can recommend changing Housing and Community Development Commission October 30, 2017 Page 2 of 7 priorities if they believe anything should be changed. For any changes that require Council action, a 30-day public comment period is necessary. This must be done so that Council can review at their first meeting in December. CDBG/HOME applications are available after that meeting if any changes needed. Padron asked if there is any limit to the number of public services that can be tagged as high priority and Hightshoe replied there is not, these were just voted on by the Commission at some point to help guide their decisions. She added that the categories listed are using HUD definitions as this is what must be entered into HUD's disbursement system to get funding. They have not been updated. Vaughan asked about the dollar amounts that were listed in the report, if they were City assigned or federally assigned dollar amounts. Hightshoe said it varies. The maximum of 15% CDBG funds to public services is a statutory federal requirement, the City cannot spend more than 15% of their entitlement plus program and income on public services (it is a federal cap). The $75,000 is a Council set -aside they wished to be used for neighborhood improvements. For example this past year the $75,000 paid for the Wetherby Park sports courts and the year before it paid for curb cuts on Lakeside Drive and an area downtown that was close to housing for residents with disabilities. $235,000 is the Council set -aside for owner -occupied housing rehab, $50,000 is a Council set -aside for economic development. The Council offers small business loans for low- income entrepreneurs or businesses that are hiring primarily low-income employees. The $50,000 last year was spent for two projects: a new coffee shop that is going in Old Towne Village and for 4-C's Childcare to provide technical assistance for those opening their own in - home child care businesses. The $90,000 HOME set -aside is for owner -occupied rehab. Hightshoe stated that HCDC does not review or take applications for those set -aside funds, but can make recommendations to Council on redistributing the set -asides. HCDC allocates the monies outside of these set -asides. Eastham asked when it would be timely to recommend to Council that the set -asides should be modified. Hightshoe stated it would be from tonight's meeting. If HCDC changes the priorities in CITY STEPS there must be a 30-day public comment period. Eastham asked if HCDC considered changing the set -asides this year. Hightshoe stated there have been commissions that have requested or suggested a different set -aside amount or removing a set -aside. To date, the Council has not approved, but HCDC can make a recommendation. Hightshoe noted that HCDC is only deciding on priorities, there are no known funding amounts at this time. They just got their federal funding this year (3 months late) and CDBG was $568,000 and HOME was $425,000 which was more money than received the year before. Staff had been anticipating the elimination of the HOME program (or at least severely cutting funding of it) and instead received an increase. She also stated the City will also be getting more program income in fiscal year 2019 because of loan repayments from a recent CDBG loan from Bilam Properties. We estimate about an additional $48,000 in program income per year for the next 15 years. Eastham asked if the Commission could recommend to the Council a use for funds outside of the set -asides and recommend allocating CBDG funds for other projects and activities and not have enough left to have for the set -asides. Hightshoe said the Commission could recommend changing set -asides as well. The Council may or may not act on the recommendations. Conger asked how long the HCDC priorities had been in place. Hightshoe said about the past three or four years. Conger is concerned about the Domestic Violence services —the funding for that agency has changed and the Johnson County services are not just serving Johnson County but a total of eight counties. Conger believes it should be a higher priority. Housing and Community Development Commission October 30. 2017 Page 3 of 7 Eastham noted he could support that but is also interested in changing the set asides for owner - occupied housing rehab ($235,000 CDBG, $90,000 HOME) and allocate those funds to rental projects (rental rehab., etc.) as he feels it fits the current Council's strategic plan vision for providing more lower -income housing and that is a greater need than owner -occupied housing rehab. Conger asked if the set -aside funds for rehab. were all used in the past year. Hightshoe stated all CDBG funds were used. The majority of HOME funds were spent, the remaining will be committed in FY18 (HUD allows HOME projects up to four years to complete — so all HOME funds are used). Hightshoe, it is required that all homeowners be below 80% median income, many of our homeowners are between 30-60% median income. Several beneficiaries are the elderly and people with disabilities. It can also be used for emergency assistance such as furnaces or water heaters for low-income homeowners. Eastham asked what constitutes emergency assistance. Hightshoe said it is usually something that consists of unlivable conditions such as no heat, no water, a threating electrical issue, etc. Eastham asked then if the Commission could make a recommendation that those funds be used only for emergency repairs. Hightshoe stated the program does prioritize homeowners and has a waiting list. Staff reviews various items (income, elderly/disabled status, time on list, etc.). to prioritize. If there is an emergency, staff would review and proceed based on the circumstances. Harms asked if there was a non-profit rental rehabilitation fund similarly for emergency situations in the set -asides and Hightshoe said there was not. The City or another agency could make an application for this. Our nonprofit housing providers typically apply for assistance, such as Successful Living, The Housing Fellowship, Charm Homes and MYER Lamkins agrees with the need for assistance to owner -occupied rehab for emergency conditions but is questioning the reasoning to assist with rehabs such as a kitchen remodel. Hightshoe stated there aren't several complete several kitchen remodels, but kitchens, like anything, reach their useful life. Typical repairs include bathroom improvements — shower, grab bars, accessibility improvements such as ramps and widening doors, electrical upgrades, foundation repair, new roofs, windows, and doors. Code violations also need to be addressed and repaired. Hightshoe explained that most of these repairs are loans. Most are paid when the homeowner sells, refinances or moves out of the house. 50% is a grant if the home is in certain neighborhoods and for mobile homes. Eastham asked what percentage of rehab funds spent over the past five or ten years have been repaid. Hightshoe is unsure of the percentage but noted that typically they receive about $30,000 to $40,000 in housing rehab loan repayments each year. Eastham also asked what the total debt owed to the City is for this program and Hightshoe did not have the figure readily available, it is reported in the annual auditing report. McKinstry noted it seems sensible because these funds are helping people stay in their homes for a relatively small amount of money, if someone had to leave their home because it was unhealthy it would be a much larger expenditure. Eastham feels that $325,000 per year seems like a substantial amount of money to allocate to this one area. McKinstry doesn't feel it is very substantial for a city the size of Iowa City. Hightshoe noted they assist about 25 homeowners each year. Harms agrees that this owner -occupied housing rehab money should stay as it is. These programs are necessary to keep families in homes. Conger agrees but also feels that rental rehab is necessary too. Eastham agrees and feels the allocation should be equally divided between owner -occupied and non-profit rental housing rehabs. Hightshoe noted that typically there is only owner -occupied housing rehab. and Habitat Housing and Community Development Commission October 30, 2017 Page 4 of 7 that utilize funds for homeowners/homeownership. The remaining housing funds are typically used by rental housing providers. Lamkins stated that the average homeowner receives about $11-13,000 based on what has been said. He feels it is a good investment. The homeowners must be income eligible and it allows them to stay in their home. He stated it is good for neighborhood stability. Padron asked if there is a limit on age of the home that can be included on the rehab applications. Hightshoe said there is not, there are just different regulations depending on the age of the home (historic or conservation districts, lead rules). With mobile homes the City will not invest more than approximately $5,000. These are grants for mobile homes. Eastham asked if the City tracks the income and race of the beneficiaries. Hightshoe stated it is required and must be entered into HUD's disbursement system. This used to be in included in the CAPER, it is now a report you must download, but it is available. Harms also noted that Conger made a good comment about the Domestic Violence Services and that it should now be a higher priority. Conger moved to change the Aid to Agencies priority level for Domestic Violence Services from medium to high. Fixmer-Oraiz seconded, a vote was taken and the motion passed 8- 0. DISCUSS STAFF RECOMMENDATIONS FOR ADDRESSING NEIGHBORHOOD STABILITY FOLLOWING HF134: Hightshoe noted this item was prompted because the State legislature amended Iowa Code to not allow municipalities, after January 1, 2018, from adopting or enforcing any regulation or restriction related to occupancy of residential rental property that is based upon familial status. Council directed staff to consider this because the concern was that houses and duplexes close to campus/downtown would convert to rooming houses. Hightshoe stated that once a house or duplex is substantially changed into a rooming house, it is not likely to ever revert to a single-family home due to the cost. Staff looked in to ways to make sure the downtown properties don't get over occupied and how to zone areas not based on occupancy. Most municipalities zone based on occupancy or familial status. The staff memo to Council recommends a rental cap in the University of Iowa impacted neighborhoods (based on open space designations). No more than 40% of the single family and duplex units may have a rental permit. This does not apply to multi -family rentals. The recommendation also states that to prevent homes from converting to rooming houses no more than 35% of home's habitable space can be bedrooms as well as other changes. The memo also covered zoning and enforcement changes. Eastham noted he is in favor of not having the second spacing requirement and allowing the affordable housing model to regulate spacing (item #2 under Rental Permit Limits). Lamkins stated he is not in favor of the rental cap. He stated it could severely impact the value of some people's homes if they wish to sell and cannot sell to someone who wants to make the property a rental property. It could mean they have to sell their home for tens of thousands of dollars less and is penalizing the homeowners. Harms asked if there could be room for exceptions. Vaughan stated that if nothing is in place, then the whole area will be rental units and that will also affect property values. The Commission discussed the UniverCity program and using it rather than this Rental Permit Limit to keep single-family homes in the neighborhoods. Hightshoe noted that in the UniverCity program they do try to cluster the single-family homes together as it makes it easier to sell to eligible homeowners. Housing and Community Development Commission October 30, 2017 Page 5 of 7 Lamkins reiterated this is why any single-family home in these high rental areas will have trouble selling because it will be hard to find buyers that want to live surrounded by rentals. It may not happen often, but he stated he knows a case where a long-time homeowner is surrounded by student rentals. This home will be hard to sell, and if they sell, they will be forced to settle with thousands less. He stated the cap puts neighborhood stabilization on the backs of a few homeowners that live there now. Not all homeowners will be in this situation, but a few will be. Pardon stated that this will help stabilize the area over the years because no new rental homes will be allowed in the area. She also raised concern about where students will live if there can be no new rental units in these areas close to campus. Hightshoe noted the second part of the change is the housing code changes. These are an effort to not have homes converted into rooming houses. There will also be increased inspections to actively patrol nuisances. Eastham stated he felt the housing code enforcements listed in the staff memo were very strong. Conger noted it is fair to say that some of the housing code changes will also impact rental units. The rental cap is for the downtown neighborhoods, but the housing code changes are citywide. Staff will also be looking at regulatory changes to the zoning code regarding allowing four -bedroom units outside the University impacted areas. Eastham suggested that City staff consider the affected downtown areas and do an analysis of how many single-family homes might be impacted if they cannot sell and the estimated market value of those homes. Then perhaps criteria could be set up to give exceptions to those homeowners. McKinstry stated he questioned staff if he should even vote on this topic since he lives in the area. He stated when affordable housing is proposed, neighbors go to the hearing and say they don't want the affordable housing near them because it will make their property values decrease. He stated this is not true, but he is a neighbor and not sure if he should comment. Hightshoe stated he is free to express his comments as a homeowner who maybe impacted. Asa homeowner in the Northside he would really like to see not everything go to rentals. The UniverCity program has brought in great homeowners in the area and the upkeep of homes is so much better. Conger questions #2 under the zoning code changes regarding rear yard setback and establish a minimum amount of impervious surface and to keep structures and additions consistent with house -scale dimensions in single family neighborhoods and ensure a minimum amount of rear yard space is preserved as usable open space. Hightshoe stated basically the intent is so that a landlord can't pave the whole backyard to increase occupancy. Lamkins likes the housing code and enforcement proposals. He does not agree with the rental permit cap. Vaughan liked that an owner could not convert hallways and dining rooms into bedrooms. Eastham moved to recommend to Council to adopt the housing code, zoning, enforcement and additional housing code changes as specified in the 9/14/2017 staff memo, Recommendations for Addressing Neighborhood Stability Post HF134. McKinstry seconded the motion and it passed 8- 0. Eastham moved to recommend to Council that the recommendation under Rental Permit Limits, #2 from the Recommendations for Addressing Neighborhood Stability Post HF134 staff memo, not be adopted. The commission does not recommend any spacing requirements in the impact area. Fixmer-Oraiz seconded the motion and it was approved 8-0. On the item of the cap on rental permits, Lamkins still feels it is a taking to accomplish a wider neighborhood benefit on the backs of a few homeowners. Conger believes there needs to be something that will trigger exceptions though an administrative process. Lamkins stated he would not be Housing and Community Development Commission October 30, 2017 Page 6 of 7 comfortable waiting for administrative approvals when the homeowner wants to sell as they won't know if the buyer can get them. In would have to be specific, in these cases, a rental permit is allowed. The Commission discussed various concerns about the rental permit cap but also knowing that areas may become 100% rental if no caps were set. McKinstry moved to recommend to Council that the recommendation under Rental Permit Limits, #1 (establish a cap on rental permits) from the Recommendations for Addressing Neighborhood Stability Post HF134 staff memo, be adopted; however, the policy should allow administrative approval on a case by case basis as it relates to a loss of substantial value for owner -occupied homes surrounded by rental property. Conger seconded and it was approved 7-1. (Lamkins opposed.) STAFF/COMMISSION COMMENT: Eastham is interested in the Commission asking the City Rental Inspection system to require landlords to provide information on the pricing of all their rental units. There is currently no one database that shows that information. It would assist with efforts to provide affordable renting options. Hightshoe said this could be added to the agenda for next month. Hightshoe announced that Kris Ackerson's last day at the City is Wednesday, November 1. She will be covering until a replacement is hired. Hightshoe stated that they narrowed their Invest Health initiatives to two projects. Staff applied for a Mayor's Challenge Grant for affordable, quality child care with potential partners including the County, Kirkwood, 4C's and a non-profit child care provider. The second project is a mental health facility, holistic care. Hightshoe described the child care grant application and noted that Iowa leads the nation in the number of available parents working outside the home with the least childcare spots. None. ADJOURNMENT: Fixmer-Oraiz moved to adjourned. Conger seconded, a vote was taken and the motion passed. City of Iowa City FY19 Funding Allocation Timeline Dates Subject to Change 2017 December 6 Public notice that CDBG and HOME applications are available 2018 January 4 CDBG/HOME Applicant Workshop, Emma Harvat Hall, City Hall, 11:00 AM January 19 Applications due to City of Iowa City by 12 noon February 15 HCDC meeting: question/answer discussion with CDBG and HOME applicants. Applicants are invited to attend. February 22 HCDC ranking forms due to City staff March 8 HCDC meeting: review of groupings and consensus funding scenario. Make recommendation to City Council on CDBG/HOME funding awards. April 1 30-day comment period begins for draft Annual Action Plan April 19 HCDC meeting: review Annual Action Plan and recommendation to City Council April 30 30-day comment period ends for the draft Annual Action Plan May 1 City Council: public meeting for the Annual Action Plan and resolution. If needed, joint HCDC/City Council meeting July 1 Execute CDBG and HOME agreements with grant recipients tr CITY OF IOWA CITY Applicant Guide Iowa City CDBG and HOME Programs This guide outlines requirements for applicants seeking Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) program funds through the City of Iowa City. Notes to applicants 1) HCDC strongly encourages all applicants to attend the CDBG/HOME Applicant Workshop (see Application Timeline below). 2) First consideration for funding will go to housing (not including CHDO operating expenses) and public facility projects of $50,000 or more. No more than two public facility projects will be awarded funding. 3) The application (and the pro forma for housing applications) must be substantially complete for HCDC consideration. The Housing and Community Development Commission (HCDC) will not review any materials submitted by the applicant after the deadline unless the Commission requests it. 4) Please review the City's Strategic Plan (www.icgov.orq/strategicolan) to determine if your project fits into the identified priorities. If so, please identify in the application. Application Timeline 1) Applicant workshop at Emma Harvat Hall, City Hall 2) Applications Due 3) HCDC Meeting — Question/Answer with Applicants 4) HCDC Meeting Recommendations January 4, 2018 at 11:00 AM January 19, 2018 at 12 PM February 15 at 6:30 PM March 8 at 6:30 PM Part I. Estimated Federal Funding Available In FY19 the City of Iowa City is expecting to have available approximately $1,308,000 in federal funds (including entitlements and program income) from the U.S. Department of Housing and Urban Development (HUD). The City has approximately $570,000 available for allocation to recipients after Council set -asides have been removed for economic development, owner -occupied housing rehabilitation, administration, neighborhood infrastructure, and aid to agencies. Of the $570,000 available, approximately $496,000 must be used for HOME eligible activities, which focus on affordable housing activities: rehabilitation or new construction of rental housing, tenant based rent assistance, and homeownership opportunities. The HOME program requires not less than 15% of the HOME entitlement be reserved for Community Housing Development Organizations (CHDOs). In FY19 this set -aside is approximately $64,000. Iowa City CDBG and HOME Applicant Guide Part II. Application Requirements and Considerations Applicants should evaluate the following HUD guidelines as well as City policies contained in CITY STEPS when considering the types of proposals, funding estimates, and time schedules for achieving their program/project goals. Ineligible Activities The following types of activities that are ineligible include, but are not limited to, the following: • Public service eligible activities such as operations or salaries. • Buildings for general conduct of government and expenses required to conduct the regular responsibilities of local government, e.g. street maintenance, public buildings for government. • Political, religious and lobbying activities, income payments, such as rent assistance and mortgage payments. HOME only: tenant based rent assistance is an allowable activity. • CDBG only: New housing construction, except for residential facilities providing shelter for persons with special needs (homeless shelters, convalescent homes, halfway houses, and group homes). • Purchase of construction equipment. NOTE: The purchase or lease of furnishings, equipment, or other personal property (such as vehicles) needed for an eligible public service is eligible only under the CDBG public service category; however, the City will not be considering public service activities under this allocation process. Additional requirements and CDBG award limitations may apply, please contact Neighborhood Services staff to discuss. Eligible Activities a. Activities that can be carried out with CDBG funds include, but are not limited to, the following: • Acquiring real property, demolishing structures and clearing property, and relocation assistance for residents of property being demolished. • Rehabilitation or preservation of residential and nonresidential structures, including weatherization, painting, accessibility improvements, emergency repairs and comprehensive rehabilitation. Construction of public facilities and improvements, such as water and sewer facilities, infrastructure repairs and installation of curb ramps, construction of neighborhood centers and installation of accessible playground equipment. b. Activities that can be carried out with HOME funds include the following: Acquisition of real property (including Homeownership Assistance), payment of "soft" costs associated with a project, demolition and clearing property, site and infrastructure improve- ments, and relocation assistance for persons being displaced by a HOME activity. Rehabilitation or preservation of residential structures (comprehensive rehabilitation only). Tenant Based Rental Assistance (TBRA) for a period of up to 24 months. Iowa City CDBG and HOME Applicant Guide 2 • New construction of affordable housing units (rental or owner -occupied). • Operational expenses and Capacity Building for Community Housing Development Organi- zations (CHDOs) within the limit of 5% of Iowa City's HOME allocation. National Objective ALL proposals must benefit low -moderate income individuals. a. CDBG Funds The National Objective of the CDBG Program is the "development of viable urban communities by providing decent housing and suitable living environments, and expanding economic opportunities, principally for persons of low and moderate income." At least 51% of the program beneficiaries (persons or households) must have incomes at or below 80% of the local median income category. [For programs that directly fund individual households (e.g. housing rehab), all of the households must earn less than 80% of the median household income.] Applicants must document that the National Objective is being met. While the CDBG program allows self -certification of income, the household must certify their income with their signature. HUD also requires that a certain percentage of the participants provide source documentation such as pay stubs or a Social Security statement to further verify the household's income. This source documentation must be kept in the client's file and is subject to monitoring when City or HUD staff review the client files. The City must approve this percentage based on the program and number of beneficiaries usually set between two and five percent. b. HOME Funds The national objective of the HOME program is the provision of safe and decent affordable housing. All activities undertaken with HOME funds must benefit persons or households below 80% of median family income and 90% of the HOME assisted units must be targeted to persons and/or households below 60% of the median family income. Median household income limits for HOME -funded projects in Iowa City: Income Limits Effective Juno 15, 2017 3016 Median Incnane Household Extremely LOW 5055 Median Income GO%Median Income 80% Median Income Size Income Very l.oa Income Low Income 1 $18,250 $30,400 $36,480 $47,600 2 $20,850 $31,750 $41,700 $54,400 3 $23,450 $39,100 $44920 $61,200 4 $26,050 $43,100 $52,080 $68,000 5 $28,150 $46,900 $56,280 $73,450 6 $30,250 $50,350 $60,420 $78,900 7 $32,350 $53,850 b64,8'40 $84,350 8 $34,400 $57,300 VA760 $89'sw Iowa City CDBG and HOME Applicant Guide The CDBG statute pertaining to the low -moderate income national objective specifies criteria for deter- mining low- and moderate -income benefit. a. The activity must be carried out in an area or neighborhood consisting predominantly of low - moderate income persons, or the activity must involve facilities or services designed for use predominantly by low -moderate income persons. Demographic information is available at the Neighborhood & Development Services Department. In some instances, applicants may need to conduct a survey of the potential beneficiaries to determine income eligibility. b. Housing that is being improved, as part of a project must be occupied predominantly by low - moderate income persons. c. Job creation or retention as an activity must involve employment of predominantly low and moderate -income persons. Performance Schedule and Payment Reimbursements can be made after the contract has been formalized. Expenses incurred before July 1. 2018 or before a contract has been entered may not be reimbursable and may jeopardize all the CDBG/HOME funds awarded to the oroiect. Disbursements can be made upon receipt of 1) invoices for labor, materials and services rendered, and 2) signed lien waivers (as appropriate) covering all amounts to be paid. In some instances, pre -agreement costs may be reimbursed to applicants; however, Neighborhood Services staff must be contacted prior to making any pre -agreement disbursements to verify if the cost may be reimbursed. In case of minor cost overruns or requests for additional funding, the City Manager and staff may approve a contract amendment that is non -substantial. In the case of substantial changes (as defined in the Citizen Participation Plan) the Housing and Community Development Commission and City Council must approve the change and an amended agreement is required. Budget Considerations In estimating the amount of the proposal or the project budget, applicants should try to obtain documentation for the costs and consider the following expenses: • Appraisals, legal fees, title opinions and surveying costs for property acquisition projects. • Building permits, engineering or surveying costs, zoning application fees, professional fees, advertising and bidding costs for rehabilitation and building projects. • HOME funds are required to be matched at the rate of one match dollar for each four HOME dollars or 25% of the HOME funds being requested. The City has made a commitment to match local HOME dollars, however, we also expect applicants for local HOME funds to contribute to meeting this matching contribution (see HOME regulations for eligible forms of match). • The City requests that applicants leverage private funding, volunteers, and in -kind contributions whenever possible and to include this information on your application. These contributions are worth points in the ranking sheets and are included in HCDC's evaluation of your application. Construction estimates should be realistic. Funds remaining after the proposed work is completed will revert back to the CDBG line of credit. Iowa City CDBG and HOME Applicant Guide Applicants can apply for grants and/or loans. Other project costs such as compliance with HUD regulations (audits, labor standards, environmental studies, fair housing, etc.) listed in Part III below should also be included. CITY OF IOWA CITY 14CDC Morriber: 1 Need Priority (max. 10 paints) t HvY: GS E;1 Las tlw upplicunt documented the ability of the project to meet nood(s) xlentified in C1TY ST FPS? A. Leveraging Rasourcras'Budget (max. 50 polntsl 1 Does the protect have realistic cost estimates. including bid3? 2' Does the project leverage oommunly partnerships and or volunteer irsuufues? Points 0-10 Points 0-5 Points 0-5 Points :i Does firs project leverage other nr:;rnaal resources? i Matohinq funds: 0-2f*r. = 0- 10 pts 26-50%= ) 1-20 pis 5 115% = 2'1.30 pts 7n-wail = I1-dn nre Hl. FeasibilitylNeed for Subsidy (max. 10 points) I Ho-w wall has the applicant demonstrated the requested level 0-3 Points .of public subsidy, is necessary fpnvate btt.w funds not available)? 2 Does the project schedula adequately demonstrate the project w it be 0-3 Points completed within the requiredbins ms peripd� _ 3 Does the project provide a long-term solution to the need identified? 0-4 Points Subtotal IV Impactl®eneflt (max. 20 points) I What primary percent of median income persons are targeted? Guide: 0-30% = 10 Pis 31-Wo = 6 pis 51-60% = 4 pis 6I-Wo= Iprt_ 2 Dues the project have a ieasonabte per-pef son cost compared to 0-5 Points other projects of similar scapelcost? 3 Dries thei pm ect serve a reasonnble number of people compared to 0-5 Points other projects of similar- see eicmA? Subtotal V CapacityiHlstory (max. 10 points) 1 Does the orgonizaton have the capacrty to complete the project, 0-10 Points proven either by pi or pi olect completion or cutrent expel t staffing? Iowa City CDBG and HOME Applicant Guide PART III. Housing Additional Information Requirements. Before an applicant may enter an agreement with the City, the applicant must submit updated information such as, but not limited to, the project schedule, sources and uses statement, construction budget (if applicable), and pro forma (if applicable). All other funding sources must be identified and verification submitted to the City to complete a subsidy layering analysis when multiple public funding sources are utilized. Appraised Value at Proiect Completion. Each housing project, except minor home repairs, funded with CDBG and/or HOME funds must have an appraised value at project completion that demonstrates adequate equity to secure any liens. Site Location. One of the City's goals is to encourage the distribution of housing and residential facilities (e.g. permanent housing — rental and homeownership, transitional housing, homeless shelters, and special needs housing) throughout Iowa City. See the attached Affordable Housing Location Model to view where new City -assisted rental housing may be located. The map is also available at www.ic.ov.org/actionplan. Iowa City CDBG and HOME Applicant Guide I ^�4cl�ga.'elH7rfa•s�YLeG�:r>=�rr� -=.s:$e`:p �43�:71L:B �C7'rET.'.:i!NiS:.4;:"._.i•�['el7sry tu:Y:.r'j; �-�7:'31C°S•51'•�':.'.-F i J cY R w�J .O`F_iM1 y� ;S{ j 2YA .•.` war F f . t' ; • :` I Iowa City CDBG and HOME Applicant Guide 7 PART IV. Compliance with Federal Regulatory Requirements All CDBG/HOME contracts include requirements imposed by various Federal -sponsoring agencies. These include procurement standards for labor, materials, supplies and services not only related to the project but also to the applicant's operation. • Procurement standards and subcontracting requirements are set forth in 2 Code of Federal Regulations (CFR) Part 200. The following list briefly describes the main points in contracting for services and purchasing supplies and materials. Affirmative efforts shall be made to utilize small and minority -owned businesses or sources of supplies and services. Conflict of Interest rules will also apply. Construction contracts in excess of $2,000 shall comply with the Fair Labor Standards Acts. Specifically, 1) the Davis -Bacon Act which requires contractors to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor, 2) Copeland Anti -Kick Back Act which prohibits employers from inducing employees to give up any part of the compensation to which they are otherwise entitled, and 3) the Contract Work Hours and Safety Standards Act which requires contractors to compute wages on the basis of a standard work week of 40 hours. Work in excess of the standard workweek shall be permissible if the worker is compensated at a rate of 1'/ times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. No worker shall be required to work in unsanitary, dangerous or hazardous surroundings. Contracts over $10,000 shall contain requirements relating to Equal Employment Opportunity. • Provisions for termination shall also be included in all contracts. • Records should be kept for all procurements. Construction projects Tor more than $150,000 must utilize the competitive sealed bids (formal advertisement) method of procurement. Procurement by small purchase procedures shall be utilized for projects $150,000 or less. Price or rate quotations shall be obtained from an adequate number of qualified sources under this method. • Contracts in excess of $25,000 shall contain provisions and conditions that allow for administrative, contractual or legal remedies in instances in which contractors violate or breach contract terms. • Contracts in excess of $100,000 shall meet bonding and Section 3 requirements. Minimum bond requirements include: bid guarantee equal to 5% of bid price, performance bond for 100% of contract price and payment bond for 100% of contract price. • Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative Marketing and Fair Housing. • Acquisition, Displacement and Relocation are also contained in the Agreement. • Lead Based Paint regulations regarding interim controls and abatement may also apply Iowa City CDBG and HOME Applicant Guide PART V. Financial Management Standards for financial management and record keeping are provided in 2 CFR Part 200. Local accountants and agency directors experienced with federal requirements may be helpful resources. Each recipient shall have a financial management system that provides effective control over and accountability for all funds, property, and other assets, must identify the source and application of funds for federally -sponsored activities, and permit the accurate, complete, and timely disclosure of financial results in accordance with the reporting requirements of the City and HUD. • A separate ledger for the CDBG and/or HOME account is strongly recommended. • Appropriate time distribution records must be kept for employees paid with CDBG funds in addition to other funds. • All project -related expenditures must be supported by third party documentation (invoices, contracts, and purchase orders). Lien waivers are required from all contractors and subcontractors. • Reductions in project costs or increases in the commitment of other funding, if any, shall be brought to the immediate attention of staff. The impacts of these changes must be discussed with staff and appropriate reductions in CDBG and/or HOME funds may be made on a pro -rated, case -by -case basis. PART VI. Reporting and Monitoring Neighborhood Services staff will monitor all aspects of the project beginning with pre -agreement activities, goal setting to project closeout. Any project changes must be approved by the City. All notices and reports should be directed to: Neighborhood Services 410 East Washington Street Iowa City, IA 52240 Periodically, Neighborhood Services staff and HCDC members will conduct monitoring visits to review project progress, financial management, construction contracts, time records related to the project, as well as client statistics. Staff will attempt to give reasonable notice prior to the site visit. In most cases, a financial audit of the project expenditures will be required. Qualified individuals who are sufficiently independent of the agency and can produce unbiased opinions and conclusions should conduct these audits. Audit reports should be submitted within six months of project completion and final disbursement of funds. For organizations that expect to receive more than $750,000 in federal assistance from all sources are required to have an audit covering the financial activities of the organization as well as the project disbursements will be required as set forth in 2 CFR Part 200. For CDBG projects, all records relating to the project should be kept at least four years after the submission of the Consolidated Annual Performance and Evaluation Report (CAPER) in which the activity is reported as complete. The CDBG Agreement should be retained until the end of the compliance period. For HOME projects, all records shall be maintained as required in 92.508 Recordkeeping depending on the type of project (rental, homeownership, or tenant -based rental assistance). Iowa City CDBG and HOME Applicant Guide The City of Iowa City requires quarterly reports and has a standardized reporting Torm. For rental and homeownership projects, the applicant must complete project close-out forms and submit to the City upon project completion. The period of affordability does not begin until the City has been notified and the data entered into HUD's information and management system (IDIS). The compliance period will vary depending upon the regulatory requirements of the CDBG and/or HOME program and the information contained within the CDBG/HOME application. During the compliance period, Neighborhood Services staff will request records relating to the stated purpose of the project to see if goals have been carried out, to review the low and moderate income benefit requirements as established by HUD, and to monitor the financial status of the organization. Iowa City CDBG and HOME Applicant Guide 10 Summary of Priority Needs (2016-2020 CITY STEPS) For the five-year period of 2016 through 2020, the City has identified the following as priority needs for CDBG & HOME funding. Your application must meet an identified need to be funded. PUBLIC FACILITIES: Matrix Priority: Code: HUD Category Child Care 03M Child Care Centers Chronic Substance Abuse 03P Health Facilities Domestic Violence 03C HomelessFaciliities Elderly 03A Senior Centers Employment Training 3 Public Facility Homeless Services 03C Homeless Facilities Mentally III 03P Health Facilities Persons with Disabilities 03B Handicapped Centers Persons with HIV/AIDS 03S Facilities for AIDS Patients Transportation 3 Public Facility Youth Services (unaccompanied vouth Inc.) 03D Youth Centers PUBLIC INFRASTRUCTURE: (Set -Aside) Matrix Priority: Code: HUD Category Serve primarily non -student LMI 03L Sidewalk Improvements (inc. curb cuts) Census Tracts 03K Street Improvements (Inc. street lights) 03E Neighborhood Facilities 03F Parks, Recreational Facilities 031 Flood, Drainage Improvement 03N Tree Planting 01 Acq. of Real Property ECONOMIC DEVELOPMENT: (Set -Aside) Matrix Priority: Code: HUDCategory Micro -enterprise Development 18C Micro -Enterprise Assistance Rehab; Publicly or Privately Owned Fa ade Improvements (URA) 14E Commercial HOUSING: Matrix Priority: Code: HUD Category Expand Affordable Rental Housing: 01 Acquisition of Real Property Development 12 Construction of Housing Acquistion or Rehabilitation 14G Acq. for Rehabilitation Tenant Based Rent Assistance 05S Rental Housing Subsidies 05T Security Deposits (homeless) Expand Owner Housing__ Downpayment 13 Direct Homeownership Assistance Preserve Rental & Owner Housing � Rehabilitation 14A&B Rehabilitation (includesaccessibliry) 14F Energy Assistance Improvements Iowa City CDBG and HOME Applicant Guide 11 Resolution 04-68, Approved 3/2/04 Unsuccessful or Delayed Projects Policy From time to time there may be Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects that do not meet the anticipated schedule for implementation as presented to the Housing and Community Development Commission (HCDC). These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as possible to meet the needs of low -moderate income household for housing, jobs and services within Iowa City. To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby adopted to begin with Fiscal Year'04 projects beginning July 1, 2003: All CDBG and HOME projects will have entered into a formal agreement with the City of Iowa City for the utilization of federal funds by September 30 each year. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate if extenuating do not warrant an extension of time. HCDC may recommend the recapture and re -use of the funds to the City Council. 2. All CDBG projects (except applicants for LIHTCs) will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This provides the recipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. All HOME projects will expend their funds on a timely basis per the applicable HOME regulation. Should a recipient fail to meet these thresholds, all unexpended CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. 3. If housing projects are applying for other funds through various state or federal agencies, the recipient must apply for those funds in the first available application period offered. Should a recipient fail to meet this application threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds. 4. Should a recipient be unsuccessful in obtaining the funds listed in the application in the application round immediately following the allocation of local CDBG/HOME funds, and the project will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If the project is unsuccessful in obtaining the required funds listed in the application after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the City of Iowa City will recapture all CDBG/HOME funds. Iowa City CDBG and HOME Applicant Guide 12 Resolution 10-393, Approved 9/7/2010 CDBG and HOME Program Investment Policies Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed by the Council Economic Development Committee. The Council Economic Development Committee will make a recommendation to the City Council for each project proposed for funding. Said recommendation shall include the amount of CDBG assistance to be allocated and the terms of investment. Typically, for -profit business projects will receive low -interest loans; whereas, non -profits may be recommended for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be made based on the nature of the project including, but not limited to, the risk, potential for growth, the number of and quality of jobs created for low -moderate income persons, the ability to repay a loan and the amount of other funding leveraged. Housing Rental Housing. Except as noted below, the interest rate for rental housing activities will be zero percent (0%) for non-profit owned projects and prime rate (determined at the time the CDBG/HOME agreement is executed by the City) minus two points for for -profit owned projects with an amortization period up to thirty (30) years or the period of affordability, whichever is less. Homeownership. Each year Iowa City adopts resale/recapture provisions that apply to all HOME assisted homebuyer projects. The recapture/resale provisions shall be the same for both CDBG and HOME assisted homebuyer projects. These provisions are set forth in the Annual Action Plan for the year the funds were allocated to the Subrecipient/Recipient. Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant. Exceptions. The City may grant a different interest rate and/or a different repayment option based on the nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site. Public Facilities The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes these funds for "public facilities" projects as defined in 24 CFR 570.201 (c) that are completed by the City and/or subrecipients. The following policy applies to CDBG assistance provided to non -governmental subrecipients ("governmental' includes only jurisdictions with taxing authority as provided for in Iowa Code). Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein, which will be secured by a mortgage or other comparable security instrument. The compliance term of the earned grant will be determined by the formula also provided herein. At the end of the applicable compliance term the lien or other security instrument will be released by the City. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. Earned Grant: A lien against the real property being assisted, or other comparable security, which is repaid only upon transfer of title, rental of the property, or termination of services or occupancy as outlined in the applicable CDBG Agreement. If the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement the mortgage against the property, or other security instrument, will be released by the City following the completion of the compliance period that begins on the date of execution of the mortgage or security instrument. Iowa City CDBG and HOME Applicant Guide 13 Earned Grant Formula: The total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year for a "public facility" project divided by $10,000 equals the number of CDBG compliance years for the Earned Grant. (For example: $20,000 in CDBG assistance divided by $10,000 would equal a compliance term of 2 years or 24 months). If the Earned Grant Formula results in a compliance term of less than one year (12 months) the minimum compliance term shall be one year (12 months). The maximum compliance term for any CDBG assistance shall be no more than twenty (20) years. Iowa City CDBG and HOME Applicant Guide 14 � r CITY OF IOWA CITY Application for FY2019 CDBG/HOME funds ■ Review the Application Guide that follows this application form below. ■ All applications must be typed and 11 point font or larger. Page limits depend on project type: o Applications may not exceed 14 pages (18 pages including the 20-year pro forma for housing projects). ■ Housing projects (acquisition, rehabilitation, or new construction) MUST complete and submit the pro forma (excel format) provided by the City with this application. Housing applications submitted without the City's pro forma will not be considered. ■ Please remember that only one project proposal may be submitted on each application. Use separate applications for each project proposal. ■ Email the completed application to trace-hiahtshoe(CDiowa-citV.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be considered for funding. Email is preferred but you may 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. General Information 1. Project Name and Address: 2. Type of Project (check one): O Homeownership O Rental* O Tenant Based Rent Asst. O Rehabilitation* O Other *Rental and Rental Rehabilitation projects require the completion of rental housing pro forma I Lead Applicant Name: Applicant Address: Contact Person, Title: Phone Number: Fax Number: E-mail Address: DUNS Number (must obtain if funded): 4. Secondary Applicant (if applicable): Applicant Address: Contact Person, Title: Phone Number: Fax Number: E-mail Address: 5. Type of Applicant (check one): O Community Housing Development Organization O Private non-profit organization O Private for -profit, individual or partnership applicant O Public Organization 6. Amount of HOME Funds Requested: $ 7. Did you attend an Applicant Workshop? O No O Yes, attended on January 4, 2018 8. Provide a brief, one paragraph description of the proposed project: 9. Please specify the one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan, and explain how this project will meet this/those need(s). 10. Provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment erms $ F equested* *Financing 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. 11a. 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 a loan, leave loan terms blank. If not committed, please indicate when the applicant will apply for funds in Question 15. Funding Source & Type: Amount Int. rate Amortization Term Committed? Iowa City 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 $ 11 b. Please provide the uses of funds for the project. Uses of Funds (if applicable) Cost estimate received? y/n Amount Name of entity providing cost estimate Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $ Construction / Rehabilitation $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee / Overhead $ Reserves $ Other (please specify): $ Total (Must equal total in 11 a) $ Amount of Private Funds Amount of Public Funds Total Project Funding Number of bedrooms or persons served Total Cost Per bedroom or person served 11c. What percentage of the proposed budget will be made up of private funds? (a) (b) (c) a + b (d) (e) c + d 12. Describe any community partnerships or volunteers that will contribute to the project. 13. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. 14. Program regulations require a minimum 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 = $ Local 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. If funded, this schedule will be used for any project agreement for the use of HOME funding. 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 or public assistance; and describe how the project will provide for affordable housing or public assistance at rates or prices lower than those in the existing market. 18. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? 19. Please indicate the number of persons that will be served by the proposed project by income category. (The information in this table will be used as income targeting for tl Housing 0 - 30% median income households (a) 31 — 50% median income households (b) 51 — 60% median income households (c) 61 - 80% median income households (d) Over 80% median income households (a) Total households (f) Percent LMI (a+b+c+d) + f 20. 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. Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of December 31) Date Project Completed July 1, 2014 to June 30, 2015 $ $ July 1, 2015 to June 30, 2016 $ $ July 1, 2016 to June 30, 2017 $ $ July 1, 2017 to June 30, 2018 $ $ *Six months remaining in FY18 at time of this application. 21. 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? O Yes O No If "NO" or a matter is currently in litigation please provide the name of the case and explain the basis for the case. 22. Please describe the education and experience of the key staff who will be implementing the 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. 23. Please describe your organization's structure, officers, and staff. 24. Please 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. 25. Please identify the relevant market factors that will assist the City in verifying the demand for the proposed housing 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). 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. 1 1 a r Cm' of Iowa CITY CITY OF IOWA CITY INFORMATIONAL DISCLOSURE AND ACKNOWLEDGMENT FORM City of Iowa City, 410 E. Washington Street, Iowa City, IA 52240 Call Housing and Inspection Services for questions at (319) 356-5130 www.icgov.org/housing Note: All information must be entered on form. "SEE LEASE" entries are not acceptable. 1. Unit Address: 2. City Website. The website for the City of Iowa City is www.icaov.orR and it provides extensive information about the City of Iowa City and its services. To access information concerning the Department of Housing and Inspection Services, including the Rental Housing Inspection Division, go to www.ictzov.org/housine. To access the City Code, click on www.icaov.orjz/citvcoc1e. 3. Occupancy. The maximum occupants/tenants for this unit are _ unrelated persons. Maximum occupancy is available on the Housing and Inspection Services web page on the City website at the link entitled "rental permit" (htti)://www.iowa- city.org/icgov/al2ps/gen/rentals.asi) . Nothing in this document prevents the owner or operator from limiting the number of tenants to less than the maximum allowable occupancy permitted by the City Code. 4. Tenants. The names of the tenants, including those under 18 years of age, who may occupy this unit: Name of Tenant Name of Tenant 5. Fines. The undersigned acknowledge that we are responsible for complying with the maximum occupancy limits of the City Code and that the City Code provides that violation of the maximum occupancy limit can result in a $750.00 fine for the first violation (the City Code also provides that each day is considered a new violation) to the owner, operator, and/or tenant. 6. Sleeping Rooms. Basements, attics, and other rooms cannot be used as sleeping rooms if they do not comply with requirements for windows, exits, square footage, and other Housing Code requirements. Basement is: ❑Habitable ❑Non -Habitable Attic is: ❑Habitable ❑Non -Habitable 7. Trash/Recycling. Complete this only if this unit has four (4) dwelling units or less. Trash and recycling pickup for this unit is (day of the week). City Code section 16-3H-9D provides that garbage receptacles can be brought to the curb after 3 PM the day before pickup and must be brought back to the property on the same day as collection. If the City has provided a "refuse cart' (i.e., City garbage can) it must be used. If the City has not provided a "refuse cart" each unit can place up to two 35-gallons containers for pickup, and the containers must be stored (when not at the curb for collection) at an approved location (sideyard or backyard). Note: In neighborhoods where new "refuse carts" have been delivered, their use is required. Compliance with the collection and storage requirements for refuse carts is the same as any other solid waste container. Additional garbage or oversized garbage can be picked up for an additional charge. Contact 356-5180 for specifics on those charges. A City supplied blue recycling container or other approved container shall be used for recycling. Recycling information is available online at www.iceov.org/earbaee or by telephoning 356-5180. 8. Parking. We acknowledge that we cannot park on the grass or across the public sidewalk and that the Landlord provides _ off-street paved parking spaces or other parking areas as approved by the City. Noise/Disorderdv House. It is a simple misdemeanor (a crime, with a fine of $65 to $625 plus surcharge and court costs) to keep a "disorderly house." Under Iowa City City Code section 8-5-5, a "disorderly house" is: No person shall permit or suffer to continue, without taking legal steps to prevent the same, any quarreling, fight, disorderly conduct, or other conduct or condition that threatens injury to person or damage, or loud, raucous, disagreeable noises to the disturbance of the neighborhood or to the disturbance of the general public upon a premises owned by the person or in the person's possession. For purposes of this Section, "to the disturbance of the general public" includes the disturbance of persons beyond the subject premises and/or to the disturbance of person upon public places. including peace officers. Keeping a "disorderly house" is also a municipal infraction (civil offense) under section 8-5-5C punishable by a civil penalty of $750 for the first offense and $1,000 for the second and subsequent offenses, plus court cost. Failure to answer the door when the police arrive may result in a municipal infraction being issued to all tenants. 10. Snow and Grass. City Code section 16-IA-8A provides that snow must be removed within 24 hours of a 1-inch snowfall and section 6-3-2 provides that lawns/grass/weeds cannot exceed 10 inches in height. Pursuant to the lease, we acknowledge that the Tenant/Landlord (cross out one) is responsible for snow removal and the Tenant/Landlord (cross out one) is responsible for mowing the grass. Regardless of the agreement between the landlord and the tenant, the City Code provides that the City may hold the owner, operator, or tenant ultimately responsible, and violation of either section noted above can result in a fine of $250.00 for the first violation and/or the City mowing the grass/shoveling the snow and assessing the cost of doing so to the property owner. 11. Neighborhood Services Coordinator. Iowa City has a neighborhood services coordinator. For more information, call 356- 5237 or go to the City website(www.icgov.org/neighborhoodservicesl. 12. State Law. The Iowa Uniform Residential Landlord and Tenant Act (Iowa Code Chapter 562A) can be found at the Iowa City Public Library and can be accessed on the internet at www.legis.iowa.gov. 13. Rental Deposits. The Iowa law on rental deposits can be found at Section562A.12 of the Iowa Code. The landlord has the right to withhold from the rental deposit (also called the security deposit) such amounts as are reasonably necessary to restore the premises to the condition at the commencement of the tenancy, ordinary wear and tear excepted. The tenants need to provide the landlord with the tenant's mailing address or delivery instructions for return of the rental deposit. Additional information related to leases, move -in, move -out, and checklist may be found on the website at http://web.offearnpuspartners.com/1 16/resource/iowa/?p=tenant We, the undersigned, have read the Informational Disclosure and Acknowledgment form and completed the blanks to the best of our knowledge. Date: Tenant: Date: Tenant: Tenant: Date: **Note** All tenants, except minor children of tenants, must sign this form even if they have an oral rental agreement. HisinsVnfor tional discios=2e12.doc BROOKINGS Tne Ayeeue Yet more evidence that housing affordability is getting worse Jenny Schuetz Tuesday, October 31, 2017 vidence continues to pile up revealing that housing affordability is getting worse, particularly for low-income households.flj One of the latest examples, an analysis by Freddie Mac, examines rent changes for a sample of apartment buildings that the company financed at least twice between 2010 and 2016.12) The bottom line: it wasn't easy for poor families to find an apartment they could afford in 2010 - in fact, only 11.2 percent of unsubsidized apartments were affordable to very low income households - and matters have gotten worse. In 2016, only 4.3 percent of units still met that standard. The data from Freddie Mac suggest three other notable, troubling facts. Affordability is worst for the poor, but middle -income families are also getting squeezed. The Freddie Mac report focuses on the loss of units affordable to households making less than 50 percent of the median income within their metropolitan area. These households have the least resources, so by definition are most constrained in their housing choices, and policymakers (should) worry more about economically vulnerable families. But the data also hint that declining affordability isn't just a problem for poor Americans. In the table below, I show the change in apartments that are affordable to median income households. Nationally, the share orapartments available to median income families dropped by five percentage points. Table 1: Change in apartments affordable to median income households, 2010-2016 1st 2nd State Units Change financing financing Arizona 4,154 100.0% 100.0% 0.0% California 4,776 73.4% 39.4% 34.0% Colorado 5,128 100.0% 99.6% 0.4% Florida 13.197 96,096 79.8% 16.2% Georgia 9,766 96.4% 94.6% 1.8% Nevada 3,564 99.7% 99.5% 0.2% North 5,061 100.0% 99.7% 0.3% Carolina Texas 28,533 97.8% 95.2% 2.6% Washington 3,262 91.7% 93.7% -2.0% U.S. total 97,061 95.8% 90.6% 5.2% Source: Author's calculations of Freddie Mac data. The sample is Itrnitedto multifamily buildings that Freddie Mac financed at least twice between 2010 and 2016, and measures changes in rents between those two financings. U.S. total includesstates not shown. Overall, 90 percent of apartments are still affordable to families in the middle of the income distribution, but the trend is worth noting. Even more important, there were very large declines in the share of apartments affordable to typical families in some states - see Florida and California. Which leads me to the next point,.. If you aren't rich, don't move to California. Or maybe Florida either. Not surprisingly, there are big geographic differences in housing affordability trends. (Freddie Mac's report doesn't dive deeply into geography, probably because of sample size. It only discloses state -level numbers, and then only for a few states where the company had the largest number of multifamily mortgages refinanced during this period, so the sample may not be representative). In addition to Florida and California becoming substantially less affordable to median income households, the report highlights Colorado, North Carolina, and Texas as states that saw the biggest declines in housing affordability for very low income households. The continuing divergence in housing costs across parts of the U.S. reinforces other geographic divides, such as employment growth.[3] Worryingly, some of the states (and cities) with the best prospects for job growth are already expensive, and are becoming increasingly hard for typical families — and typical workers — to afford. In measuring affordability, rents are only half of the equation. The U.S. Department of Housing and Urban Development's standard definition for housing affordability, which Freddie Mac uses in its report, states that households should pay no more than 30 percent of their income on housing costs. This definition depends on both rents and incomes, and therefore, decreasing rental affordability (including at the state or metropolitan area level) could come from an increase in rent, a decrease in income, or differential rates of change in both. One of the strengths of Freddie's underlying analysis is that it looks at rent changes for individual apartments. But the report only tells us the change in share of affordable units, not the changes in rents themselves. From a policy perspective, it's important to know what's driving the change in affordability From a policy perspective, it's important to know what's driving the change in affordability, because appropriate interventions may differ. If rents are increasing rapidly because of supply constraints or rising development costs, local governments might want to streamline the development processor relax zoning. By contrast, if data indicates that declining affordability mostly results from stagnant wages or declining working hours among low -skilled workers, then income supplements might be considered to be a more direct policy solution. Housing advocates and researchers often rely on standard affordability measures because they area convenient shorthand to those in the field. Altogether, thinking carefully about how we measure affordability will help us better understand the underlying causes of the problem and design appropriate policy responses. [1] http://www.jchs.harvard.edu/research/publitatfonslamericas-rental-housing-expanding-options-diverse-and-growing-demand http://furmancenter.org/thestoop/entry/2017-national-rental-housing-landscape [2] htrp://www.freddiemacmm/multifamily/pdf/rental_affordability_worseningpdf The GSEs' multifamily portfolio may not be a representative sample of apartments, but the method is useful because itprovides information on rent changes for the same apartment (constant quality), rather than observing changes in rentlevels, which may reflect changes in the composition of the overall rental stock 13] https://www.nytimes.com/2Ol7/l0/24/business/economy/future-jobs.biml? rref co Election%2Fsectioncollection%2Fbusiness&action=click&contentCoEiection=business&region=rank&module=package&version=highlights Tracy Hightshoe From: Harry03 <Harry03@aol.com> Senk Thursday, November 09, 2017 11:59 PM To: Tracy Hightshoe Subject: Fwd: Proposed Housing Code Changes -my opinion Tracy: Please forward to the other commissioners. Thanks, HarryO Sent from my Galaxy Tab® A -------- original message --- --- From: mg9425@mchsi.com Date: 11/09/2017 1:47 PM (GMT-06:00) To: Harry Olmstead <harryo3@aol.com> Subject: Fwd: Proposed Housing Code Changes -my opinion Hi Harry, It was good to see you last night. Below are my comments to Iowa City about its proposed rental cap. I don't support it for a lot of reasons. To me, it looks like a new version of redlining. I also don't like that over time, more people wig be pushed into what is often more expensive TIF subsidized apartment units (favoring developers) --a person can usually rent a room in a house for less money than living in a two bedroom TIF apartment. For example, a two bedroom apartment at Riverview West (formerly EMRICO) is $1,400 per month to rent (at http://www.iowacityrent.com/ia/iowa- city/5656091-riverview-west). And those 12 "affordable" (and I use this term loosely) apartments it was supposed to have are still going to be less affordable than what a person can typically spend to rent a room in a house. Further, the proposed rental cap will only apply to single family and duplexes. This is unfair. John Thomas, an Iowa City council member, has spoken about wanting to put triplexes and quadriplexes (4 apartments) in single family neighborhoods to increase density under form based zoning, which the city is likely to adopt at some point. It is unfair and inequitable to tell the owner of a single family home they cannot rent to outside persons because the owner of a single family home is subject to a rental cap and then not have the cap apply to triplexes and quadriplexes, etc. If a cap is going to be adopted, it should apply to all types of housing, notjust single family houses. Otherwise, Iowa City is favoring some investors (e.g. those with the money to build a quadriplex) over others. The bottom line is the rental cap is unfair and could very well be unconstitutional. If you have a chance, please read Cheryl Cruise's comments. I included a link below. Thanks Harry. Mary ----- Forwarded Message ----- From: mg9425@mchsi.com To: council@iowa-city.org Sent: Friday, November 3, 2017 3:42:53 PM Subject: Proposed Housing Code Changes - Dear City Council Members, I learned of your proposed ordinance from Iowa City's neighborhood council and am writing to voice my opposition to the proposed housing code changes and request that you not support it. My reasons include but are not limited to the following. 1. 1 agree with Cheryl Cruises' comments dated 9/18/17 that these changes are "anti -affordable housing" and incorporate her comments into this email to the extent they apply to the city's proposed ordinance. Ms. Cruises' well researched and reasoned comments can be found starting on page 32 at https://www8.lowa- city.org/weblink/o/doc/1756167/Pagel.aspx 2. One consequence of your proposed housing ordinance is to make it more difficult for a Section 8 participant to find rental housing around Horace Mann if they would like their children to attend school there --this is after the council recently updated Iowa City's Human Rights ordinance to prohibit discrimination in housing based on public source of income. 3. The proposed ordinance is unduly restrictive for many reasons, e.g. the requirement that no more than 35%of the rental dwelling can be bedrooms is too restrictive. 4. Capping the percent of rental permits at 40% in certain areas of Iowa City will have the effect of pushing more rentals from some Iowa City neighborhoods into other Iowa City neighborhoods. "From the proposed ordinance "Within the Rental Impact Area, the City shall not issue a rental permit for any single-family dwelling or duplex in a Rental Permit District where the percentage of single- family dwellings and duplex units that have rental permits exceeds 40% of the total numberof single-family and duplex units within said rental permit district, except as provided herein. This limit shall be known as the rental permit cap. ****" See page 571 at https://www8.iowa- city.org/we bli n k/0/edoc/1760860/2017-11-06%2OAge nda%20Packet. pdf Currently, according to the map Iowa City provided earlier (p3 at https://www8.iowa- city.org/weblink/0/doc/1756531/Pagel.aspx), Manville Heights & Parkview Terrace (Mosquito Flats) are at 21.5%, By comparison, North Side is at 58% and College Green at 65.9%, etc. If a cap of 40% is enacted in the city's defined rental impact area, it appears over time that more rental housing could be pushed from neighborhoods that are over 40% into neighborhoods that are below 40% or outside the rental impact area, at least in the foreseeable future. And one solution should NOT be to subsidize more TIF subsidized apartments. 5. Parents of college students whose child is a part owner of a rental home in Iowa City should be able to secure a regular rental permit prior to selling their property. I do have a question about how this proposed ordinance is intended to work with form based zoning in the future. Will rental permits for houses be discouraged (e.g. capped at 40%) while duplexes, triplexes and fourplexes are later permitted under form based zoning in single family neighborhoods where form based zoning is adopted? Again, I do not support this proposed ordinance. Thank you for your service. Sincerely, Mary Mary Murphy 890 Park PI. Iowa City, IA 52246 319/400-7464 mg9425@mchsi.com