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HomeMy WebLinkAbout11-16-2023 Housing & Community Development CommissionHOUSING & COMMUNITY DEVELOPMENT COMMISSION (HCDC) November 16, 2023 Regular Meeting — 6:30 PM Iowa City Senior Center Assembly Room 28 S Linn Street CTF747M 1. Call to Order 2. Welcome New Member The commission will welcome one new member, Denise Szecsei. This item provides an opportunity for new and existing commissioners to introduce themselves. 3. Consideration of Meeting Minutes: October 19, 2023 4. Public Comment of Items not on the Agenda Commentators shall address the commission for no more than five minutes. Commissioners shall not engage in discussion with the public concerning said items. 5. Shelter House Street Outreach and Engagement Overview Shelter House staff will provide an overview of Street Outreach and will answer questions from commissioners. 6. Consider a Recommendation to Revise Aid to Agency Definitions and Eligibility Staff proposes to update the established definitions and eligibility criteria for Legacy and Emerging Agencies to reflect current practice and adjust for unanticipated situations. With this revision, any unfunded Legacy Agencies would be eligible to apply for Emerging funds. The commission expressed interest in this adjustment during the previous funding round and if recommended, staff will pursue ahead of the FY25 Emerging Aid to Agencies funding cycle. 7. Consider Approval of FY25 Application Materials The commission will consider approval of the FY25 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) application materials, as well as the FY25 Emerging A2A application ahead of the upcoming allocation period. 8. Staff & Commission Updates This item includes an opportunity for brief updates from staff and commissioners. Commissioners shall not engage in discussion on updates. 9. Adjournment If you will need disability -related accommodations to participate in this program or event, please contact Brianna Thul at bthul(a)iowa-city.orq or 319-356-5230. Early requests are strongly encouraged to allow sufficient time to meet your access needs. Upcoming Housing & Community Development Commission Meeting: Regular: January 18, 2024 (No December Meeting) � r � MI; Omni, CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org Housing and Community Development Commission Meeting Packet Contents November 16, 2023 Agenda Items #3 • October 19, 2023 Draft HCDC Meeting Minutes Agenda Items #6 IF November 9, 2023 Staff Memo — Revisions to Aid to Agencies Definitions and Eligibility Agenda Items #7 • FY25 CDBG/HOME Applicant Guide Draft • FY25 CDBG/HOME Application Draft • FY25 Pro Forma Draft • Revised Affordable Housing Design Guidelines • FY25 Emerging Aid to Agencies Application Draft Agenda Items #8 • FY25 Tentative HCDC Calendar • October 16, 2023 Meeting Notes from the Aid to Agencies Subcommittee IF Slides Presented by Reedus at the October 16, 2023 Aid to Agencies Subcommittee Meeting Agenda Item #3 MINUTES HOUSING AND COMMUNITY DEVELOPMENT OCTOBER 19, 2023 — 6:30 PM FORMAL MEETING THE CENTER ASSEMBLY ROOM PRELIMINARY MEMBERS PRESENT: Kaleb Beining, Maryann Dennis, Karol Krotz, James Pierce, Becci Reedus MEMBERS ABSENT: Kiran Patel, Kyle Vogel STAFF PRESENT: Erika Kubly, Brianna Thul OTHERS PRESENT: Ellen McCabe CALL MEETING TO ORDER: Beining called the meeting to order at 6:30 PM. CONSIDERATION OF MEETING MINUTES: SEPTEMBER 21, 2023: Reedus moved to approve the minutes of September 21, 2023. Pierce seconded the motion. A vote was taken and the minutes were approved 5-0. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. HOUSING TRUST FUND OF JOHNSON COUNTY OVERVIEW: Ellen McCabe (Executive Director) began with a general overview about the Housing Trust Fund. Some of the projects that HCDC funds through CDBG and HOME funds are also receiving Housing Trust Fund money or vice versa. They are doing kind of similar work, but McCabe pointed out the differences such as the Housing Trust Fund's uniqueness involves the flexibility of the funding and since it is not tied to the federal dollars there's more flexibility. For example, if they award funding tomorrow to a group, the money is already available, and they could get that money the next day if all the paperwork was pulled together. With CDBG and HOME funds sometimes there's a lag and they can't begin the process of getting the funding until July 1. There are also different layers to the CDBG and HOME funds that don't exist with the Housing Trust Fund funding. The Housing Trust Fund is part of the Iowa City Affordable Housing Plan and that dictates $1 million for affordable housing of City money on top of the CDBG and HOME money. So $500,000, according to the plan, goes to the Housing Trust Fund to be made available for housing that is affordable every year. Then there's another $200,000 that is specifically designated for low-income housing tax credit (LIHTC) projects. That's a federal program through the state of Iowa where the decisions are made at the State level and is usually larger multifamily or larger senior housing than what CDBG and HOME funds touch. McCabe stated they don't always have applicants for that money, so they roll that money into the subsequent year. An example is the NEX senior project, which is currently being built right now on Herbert Hoover Highway. It'll be 36 apartments for senior citizens 55 and older at various income levels. They just began construction and units should be available in the year from now. That project is receiving two years of LIHTC funding from the City of Iowa City, plus $720,000 from the Housing Trust Fund, it's overall a roughly $12 million project. It will be for low-income seniors ranging Housing and Community Development Commission October 19, 2023 Page 2 of 8 from the lowest below 30% area median income (AMI) up to below 60% area median income. There's one- and two -bedroom apartments in that development. The $700,000 to the Housing Trust Fund each year is for housing that is affordable and LIHTC. With the new Affordable Housing Plan that was put in place a couple of years ago they asked and the powers that be agreed that if that money, that $200,000 is not used two years in a row, they can put it back into the general pot as to not have money sitting there waiting for these large projects when the need is so great. That was a win to not have the fund keep piling it up when they know that there'll be applicants. McCabe explained they also have a specific winter round called LIHTC priority, and in the winter when they get the applications, they look at the LIHTC projects first and if the LIHTC projects are viable, worthy, and good developers, that will be the priority. She did note there had been years, for example, when there were no LIHTC applicants so it would have been great to be able to put that money directly towards other housing but now have a solution so funds just don't sit in the LIHTC pot. McCabe stated they also receive funding from the state of Iowa, that was the original funding body. Around 2002, people like Maryann Dennis saw that the State was going to be making the funding available and formed the Housing Trust Fund. There are 27 trust funds in the state of Iowa and they have to be a trust fund in order to get State money. They receive roughly $450,000 from the State each year. Johnson County is their largest funding body. They give $700,400 which is $400 more than the City of Iowa City. Coralville and North Liberty also contribute. All the money that's paid on the loan's principle, all the principal payments go back into the pot and they make that money available in real time. So every penny of the principal that's been paid on loans, at least has one more life, if not more. McCabe next gave an overview of the Housing Trust Fund mission. The only mission of the organization is to promote, advocate, support and fund housing that is affordable within Johnson County. Their vision is that everyone in Johnson County should have safe and decent housing that is affordable. Krotz asked how their organization defines affordable. McCabe stated they follow the rule that people should pay no more than 30% of their income on their housing costs. Krotz asked if that was before or after any allowable deductions. McCabe said they do not do the deduction route, it is just the straight 30%. She said when people put in applications to serve individuals and tell them what they're going to charge to rent the property they get to see that the rent levels match up to the income levels. Krotz noted sometimes it makes it extremely difficult for the very low-income folks to find housing. McCabe agreed, a disability payment does not cover rent, there isn't an apartment available for that amount. McCabe also noted the Housing Trust Fund does nothing over 80% AM[ and so a lot of people talk about affordable housing, but they're talking about the term workforce housing. That is a misnomer because people at the below 30% are working. McCabe stated in terms of the Housing Trust Fund they're working with people who have incomes below 80% for sure, that is most of what they do, actually most of what they do is well below 80%. In striving for everyone to have decent housing that is affordable to them they have two main programs. The one she wishes to talk about this evening is the revolving loan fund. The other program is primarily outside of Iowa City because Iowa City has a wonderful owner -occupied rehabilitation program so the Housing Trust Fund doesn't fund owner -occupied rehabilitation, except through very rare instances, with Habitat for Humanity. The Housing Trust Fund gives grants to Habitat for Humanity to go and help people with elderly ramps, bathroom remodels for accessibility, new floors, roofs, heating and air conditioning, plumbing, electrical, etc., but most of that work is outside of Iowa City and they help about 20 households a year with that through a variety of funding sources. The revolving loan fund is where the principle that is paid on the loans goes back into the pot. McCabe noted she hates the words affordable housing so she always try to say housing that is affordable, because what does affordable housing really mean? They have quarterly funding rounds whereas HCDC has one funding round per year. The Housing Trust Fund has money to fund creating units that are now affordable, it could be a build or it could be taking an existing unit and turning it into income restricted housing. Another goal is preserving housing that is affordable so they work with primarily with The Housing Fellowship and they have rental units that every 15-20 years because of the unit's wear and tear need refurbishing, refreshing, so they're actively involved Housing and Community Development Commission October 19, 2023 Page 3 of 8 in preserving units that are affordable. The Housing Trust Fund also does rent and deposit and shelter. With rent and deposit, they had an ongoing relationship with Inside Out Reentry for many years giving them $25,000 a year to use to help people coming out of incarceration. Because those individuals have zero access they can't go to general assistance, there's just very little available and they needed to get housing, rent and deposits. For several years, they talked about what if they got their own place and now they have a transitional home program with funding from the Housing Trust Fund. Regarding shelter, the Housing Trust Fund did not put money to build the existing emergency housing shelter or the original DVIP shelter, but they have done renovations within those properties and they have funded DVIP's new shelter with $750,000. They also contributed close to $2 million to the Shelter House 501 project and Crosspark Place Housing First. McCabe stated they have a website they direct potential applicants to where there's information about the current funding round. The website is: https://www.hff'c.org/ and when people go to the website there's a programs tab and then that drops down into the revolving loan fund information where it gives information on what's the current area median income levels, below 30 and below 80. When people apply for funding to the Housing Trust Fund there's several options on how that looks. They have grants, funds that are not paid back. That's usually for the acquisition of projects to serve people with the very lowest of incomes. There are several different types of loans - there's a forgivable loan, and that is forgivable as long as they do what was agreed to for the agreed period of time. Today she wrote one for 40 years for DVIP. If they do what they say they will do at the end of that 40 years, they owe no money. If they decide to sell or decide to stop providing services, they're going to have to pay back money. They also have zero interest loans that are paid back over an agreed amount of time with no interest. Finally, there are low interest loans which range from 1 % to 4%, which depend on the ability of the developer to pay it back. They can also do grant/loan combos, for example DVIP got a $250,000 grant and a forgivable loan for $250,000 and they asked for a repayable loan. Reedus likes hearing that they could do combo grant/loans because that helps smaller organizations that often don't have a lot of assets. Pierce had a question on the low interest loan, does the principal go back into the interest as well? McCabe explained the interest pays for the Housing Trust Fund lights and the rent and the employee health insurance and paper and ink. It also goes to their ability to do grants. Their largest (under doesn't want them to grant money so they can't use the County's money for grants, so if somebody wants a grant in Coralville for something they need to use other money. McCabe explained the funding cycle and how it works is the operations committee of the board of directors looks at the cash flow and at the bottom line and states how much they want to make available in that round. That committee has a CPA, a banker, Simon from The Housing Fellowship, developers, realtors, and a lawyer. Once the amount is set, McCabe sends out a press release and email, she puts it on Facebook and makes sure that all the developers that she has been talking with over time know that money is available. She then offers what's called a funding 101 session. It's less than one hour long, and it helps the applicants put together the best application possible. She also offers consultation helping them decide what form, what terms, how long, and what's the best possible application that they can have and she offers to review applications before they're finalized. The application deadline is hard and fast. The applicants are competing against each other within the round, for example, someone can have a great project, but if there's five great projects, one of those great projects may not get funded due to funding availability. So, then a distribution committee, which is made up of again, developers, City officials, etc., review the applications and make recommendations to the full board about what should be funded and at what level with which terms, and then the board determines the awards to be given. McCabe noted things that influence the outcomes is applicants is serving people with the lowest incomes is going to get funded over an application not serving the lowest incomes. Those applications that benefit people who have something else on top of just having a low income, such as a disability, are going to get a better outcome. New partners are favored by the Housing Trust Fund, McCabe stated they love to keep funding their old partners, but new partners get to get a second look as they want to encourage the development of Housing and Community Development Commission October 19, 2023 Page 4 of 8 developers and viable projects. They look at what kind of success the applicant has had in the past, do the numbers make sense, are the rents affordable, does this really make sense for someone in this situation, are they going to be able to pay $509 a month. Also leveraging - how much money is the applicant leveraging, it used to be a point system for how much leverage was attached to each application, and generally projects that are leveraging more money, get more, but that's not always true. Sometimes there is a project in a bid that had has no leverage and was funded the appropriate term of affordability and she has the mayor of Iowa City telling her that nothing short of permanent is acceptable. It is rare to get a developer to say it's going to be permanent so they push developers 10 - 20 years or for how long they can get for this property to be affordable. The Housing Trust Fund values innovation and that gets a better outcome. Recently, they had an applicant who wanted to have the Housing Trust Fund pay for mobile home units to sit on their land and supposedly at the 15 year mark the tenants would own the units. That was something that they couldn't help with. They can't be owning the land and owning the units. McCabe stated they can be eligible for funding to apply again, and she always tell applicants this is good news even if it doesn't sound that way. They know the applicant is coming back and they're going to remember that. They may be funded but perhaps the terms are different from what they asked for, frequently people will ask for grants even though she tells them not to because it's not an acquisition of property below 30% AMI. She then gives them an award letter that summarizes the terms being offered, which they can take to a bank, and show what the Housing Trust Fund is going to give them. The Housing Trust Fund places contingencies on the money and say they need to get the other funding they put in their application. If they said they were going to raise $75,000 once they have that $75,000 it's a go. An example is Iowa City Sober Living, which is a new project, weren't a 501(c)3 so the Housing Trust Fund told them to get their 501(c)3 and then they can apply for funding. Projects can take a long time and they want the money to move, as does the City and the County and the State. Sometimes applicants are told the board wants them to spend the money by x date. Pierce noted the organization can make an award and they might be able to go back to a bank to get additional funding, how often do they see a situation where their funding helps an organization get additional funding. McCabe explained the Housing Trust Fund is sometimes the first dollars and sometimes they're last. They don't care where they fit into that but if someone says the Housing Trust Fund has awarded them $100,000 and they need $100,000 more that might go faster. McCabe showed a table of the projects that were funded this past year. By the end of June 30, seven projects serving 84 households were served overall, only one of those properties was in Coralville, the rest in Iowa City. The Housing Trust Fund wrote checks for $872,000 that leveraged an additional $7 million in housing that is affordable. This past year 42% went out in the form of repayable loans, 17% went out in the form of a forgivable loan, and 41 % went on in the form of a grant. She did note this is heavily COVID influenced as they are still in a COVID hangover. Developers not so much, they don't really want to be building houses with a labor shortages, materials shortages and uncertainty. Of the income levels served this past year with that money, 98% of them were in the lowest income level - below 30% AMI, and 2% were in the below 60% AMI and that was two rehab projects with The Housing Fellowship which does below 60% AMI. 96% of the money went to serve that lowest income level and 4% of the money went to serve the below 60% AMI. By breakdown of housing, 41 % of the money went to shelters (Shelter House and DVIP), 53% went to new supportive (Systems Unlimited, Mayor's Youth, Shelter House supportive housing) and 6% went to the rental rehab, one project for Systems Unlimited and one project for The Housing Fellowship. The return on the investment, which is McCabe's favorite part of the whole thing, is that the Housing Trust Fund put out $872,000 into the universe which represented 11 % of what it costs for all the housing that was created or preserved. McCabe noted Mayor's Youth as an example of the new supportive, this past year they purchased a house. Mayor's Youth is for people with disabilities. Inside Out purchased a new transitional house near downtown and then it has a nice living room, family room and a beautiful kitchen. In the open house, one of the residents had a note on the door that he wanted everyone visiting to know what the house meant to him, a new start, a supportive team, nicer things than he's ever had in his life, peace of mind for his parents. 4 Housing and Community Development Commission October 19, 2023 Page 5 of 8 McCabe next showed the awards noting awards are different than funded, these are the commitments that the Housing Trust Fund made in fiscal year 23, which ended on June 30. They made nine awards, serving 100 households, seven in Iowa City, one in North Liberty and one in varied locations outside of Iowa City. The type of award loans are forgivable loans, grants, etc. $2 million was committed in the fiscal year 23 and the total project cost for that housing is $25 million. In this past year, the commitments were 45% loans, 22% grants and 33% forgivable loans. Krotz asked if a developer comes in and builds new apartments and say that they're going to offer this many units of affordable for X amount of time, do those developers oftentimes partner with organizations or point individuals to coordinate with places where there can be additional help with affording rents? McCabe replied yes, in fact a large developer will let a tenant who can't pay their rent know where to go to get support. It's in everyone's best interest to keep the tenant in place. Turnovers are expensive. McCabe next gave an example of how money can take a long time sometimes for projects to come along The Housing Trust Fund awarded $20,000 to NEX Senior Living on Herbert Hoover three years in a row but nothing got done because it didn't get funded at the State level. Finally, somebody that got money dropped out of the race and so it finally got over the hurdle on the third year but the Housing Trust Fund had to carry the money for three years in the hopes they would get this funded. Another situation was Iowa City Sober Living, again they were told they had to get their 501(c)3, not for profit status, and they had to raise money so it took a while and the Housing Trust Fund didn't write the check until July and had to carry that money. They're currently carrying about $3.5 million of projects waiting to be drawn. The impact over the entire 19 years of the organization is that they've awarded more than $15 million and that has helped 1,143 households. The Housing Trust Fund stays connected to people who are in this world, the Local Homeless Coordinating Board, providers coming together who are serving the people who are experiencing homelessness, the Livable Communities Housing Action Team which focuses on senior housing, and the Johnson County Affordable Housing Coalition where she has served as an officer, the Iowa City Area Apartment Association - she owns rental property so she is able to join this group and make sure that rental managers and owners know about the issues related to housing. She has worked with the Greater Iowa City Homebuilders and the Agency Impact Coalition on certain topics, also the Iowa Housing Partnership and Greater Iowa City, Inc. which is the former Chamber. Dennis asked how many staff the Housing Trust Fund has and McCabe replied just one, one FTE. Reedus noted McCabe said that Inside Out and had requested funds to put people into housing which is very proactive. Reedus is concerned housing issues such as the homeless population that was burned out near the river. There are people who have a Housing Choice Voucher but they can't get into housing. The equity firms or investment firms that are buying up mobile home parks and for the most part doubling lot rents and make them unaffordable. She lived in Michigan for years and recently read a firm bought like 232 houses in Flint that were renter occupied and of course they're going to be flipping them and charging more rent. She is wondering if McCabe has any ideas to deal with these kinds of problems. Has the Housing Trust Fund talked about some of those issues? McCabe stated the Housing Trust Fund is like the bank and have to stick to their business, but they do advocate for many different kinds of things but also feel like they need to walk a little bit of a fine line. They are happy to fund the Johnson County Affordable Housing Coalition, which are the ones that help with things like deposits, application fees, etc. Application fees are hard, you apply for something and get turned down, well, they have your 50 bucks and you're never going to see that again. This whole new thing about leases is they have words that they carefully crafted with attorneys stating you make "12 equal payments," they don't call it "monthly rent." You make 12 equal payments, your payments start on August 1, and you will leave that apartment on July 15. Reedus asked about doing a bus tour to see places that have been funded. McCabe stated they did a bus tour recently and it was amazing. It cost $2,000 and they were fortunate to have a bank sponsor that. Next time they will try to pick a time when not all the city managers are at a convention. They took people to 15 properties in Coralville, North Liberty and Iowa City showing half the properties that the Housing Housing and Community Development Commission October 19, 2023 Page 6 of 8 Trust Fund funded over the last five years, representing $5 million of investment and $70 million worth of housing. McCabe noted they want to get back to the day when they have people asking for twice as much money as available in each pot but they're not there yet. They're still in this COVID hangover. They have a million dollars in this round and she doesn't know if anybody's going to turn in an application. Dennis noted in Johnson County, the land is very, very expensive and most funders won't fund a project if it doesn't have city water and sewer, so it has to pencil out. For a rental project they have to know how much they can charge, which means how much money will they make, and then they're going to have reserves, it's not for the faint of heart. Reedus asked about North Liberty and Coralville contributing. McCabe stated both of those communities put some of their ARPA money in, $200,000 from Coralville and $400,000 from North Liberty. Dennis stated one of the best things the Housing Trust Fund does is the revolving loans because there are only two Housing Trust Funds in the State that do revolving loans. McCabe said people in other areas use their housing trust fund money to tear down houses. They get $200,000 and they use it to tear down 10 houses because those 10 houses are making people uncomfortable because they are deteriorating. This does not happen here because the City and the County say they have to do this partnership plan. Pierce asked about the trust funds in the State, are they all counties or are some in cities? McCabe explained people could decide what kind of units they want to set up, there's five County units, the City of Dubuque has its own, Waterloo might have their own so it's different. The money from the State is based on the poverty levels and the population levels. Kubly stated with the City's Housing Rehab program, there's mobile home parks and other housing outside of Iowa City that they can't serve with federal funding so it's nice to be able to refer people to the Housing Trust Fund programs. It's a great resource. INTRODUCTION TO THE CONSOLIDATED PLANNING PROCESS: Kubly wanted to take time in this meeting to do an introduction to the Consolidated Planning process. She stated the Annual Action Plan, which they do at the beginning of the funding year with all of the projects outlined, identifies what they're going to spend money on for the year and then there is the CAPER at the end of the fiscal year, which outlines what they did and if they met their goals. Both of those plans tie back to the Consolidated Plan. Iowa City is required to complete a five-year Consolidated Plan, which they have been calling City Steps. If they keep that name it'll be City Steps 2030. This Plan is designed to help the City assess the affordable housing and community development needs and market conditions so that they can make data driven and place -based investment decisions with money that Iowa City receives from HUD annually. This is the largest planning process that they do for community development and it's really important because it will shape how they use their funding for the next five years. Iowa City will hire a consultant to help with this process and this winter will put out the RFP. If interested anyone can go online and review the current Consolidated Plan on the City's website, City Steps 2025. The first step is consultation and that's the public participation aspect of it. They do a needs assessment, which is the demographic data, a housing market analysis, and then that's all taken and put into a strategic plan which sets the priorities for the funding. The planning process has substantial public input. Last time they did a community wide survey and then a targeted survey to agencies. Then when the consultant came to visit, they did three days of facilitated stakeholder meetings and held the regular public meetings that they always do at HCDC and Council. One of those stakeholder session was here at the HCDC meeting so this Commission will have an opportunity for input. When they did the facilitated stakeholder sessions, they had different categories and they were open to the public so anyone could attend. They also try to hit certain populations. The categories used last time were workforce Housing and Community Development Commission October 19, 2023 Page 7 of 8 development, housing affordability and equity, housing for those in crisis, public facilities and services, preserving affordable housing, asset building in neighborhoods, and healthy homes in neighborhoods. Anyone could come and provide input with the consultant as a facilitator. Krotz asked if there was adequate or good participation from the community. Kubly replied they did have good turnout. At these things it often tends to be service providers, which is important but they also try to get input from actual residents who are utilizing the services as well. They always work with the consultant but internally the human rights department and communications department help figure out who to connect with the process. Kubly stated with the ARPA funding when they were getting public input they went to CommUnity Food Bank at Pepperwood and Iowa City Compassion where people are already there and asked if they had a minute to give some input. They try to go to where people are to even make it more convenient. Kubly stated next summer will be the actual public input process, right now they are just creating a stakeholder list of whom to contact, which agencies to connect with as there has been a lot of turnover in the agencies in the past five years. If anyone has recommendations on agencies staff should connect with or good ideas of where they can get public input please let them know. Reedus suggested they connect with the Agency Impact Coalition. Kubly noted they certainly have all the Legacy Agencies on their list and everyone they fund will be invited if they're interested. Reedus stated it's also important to hear from the non -Legacy Agencies, the Emerging Agencies too. She thinks it's important that they're hearing from smaller organizations as well. Kubly stated when they are ready to get public input, they'll be asking the Commission to help spread the word because the more people they can get to bring input, the better the plan will be. Once they get all that public input, it's compiled and incorporated into the plan, along with the data that's collected. Like all other plans, staff will bring it to HCDC to review it and make the recommendation to Council who will approve. Once implemented, they will work to meet those goals each year. STAFF & COMMISSION UPDATES: Thul noted there were two vacancies on HCDC. Council recently appointed someone and that person had to resign right away because they had moved outside of Iowa City in the time between when they applied and when they were appointed. Council appointed another person earlier this week and she is just waiting to confirm with them and make sure they're still interested. If they confirm, then there's still one vacancy posted. The next meeting is November 161h. Shelter House will be coming to do a presentation on street outreach. The Commission will also be approving the application materials for CDBG and HOME and looking at the Emerging Aid to Agencies application materials as that round will open at the end of December and run through January. ADJOURNMENT: Dennis moved to adjourn, Reedus seconded the motion, a vote was taken and the motion passed 5-0 Housing and Community Development Commission October 19, 2023 Page 8 of 8 Housing and Community Development Commission Attendance Record 2022-2023 Name Terms Exp. 9/15 10/20 11/17 1/19 2/16 3/30 4120 5/18 7/20 9/21 10/21 Beining, Kaleb 6/30/24 O/E X X X O/E X X O/E X X X Dennis, Maryann 6/30/25 O/E X X X X X O/E X X O/E X Haylett, Jennifer 6/30/25 X O/E O/E X X O/E X O/E Krotz, Karol 6/30/24 X X X X O/E X X X X X X Reedus, Becci 6/30/24 X X X X X X X X X X X Vogel, Kyle 6/30/26 X X X O/E X X O/E X X X O/E Eckhardt, Michael 6/30/25 X X X X X X O/E O/E Patel, Kiran 6/30/26 O/E X X X X X O/E Pierce, James 6/30/2026 X X X Subramanian, Saranya 06/30/2025 Resigned from Commission Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant � r , -4� CITY OF IOWA CITY UNESCO CITY OF LITERATURE CITY OF I O WA CITY MEMORANDUM Date: November 9, 2023 To: Housing and Community Development Commission From: Erika Kubly, Neighborhood Services Coordinator Brianna Thul, Community Development Planner Re: Revisions to Aid to Agencies Definitions and Eligibility Agenda Item #6 Background During the FY24 Aid to Agency funding allocation, two Legacy Agencies were not recommended for funding by staff and the Housing and Community Development Commission (HCDC). One of the agencies inquired about applying for Emerging funds, and HCDC expressed interest in allowing Legacy Agencies who were not awarded Legacy funding in a given year to apply for Emerging funds. However, the current definitions approved by City Council in Resolution #18-214 on July 17, 2018, determined that a Legacy Agency is not eligible to apply for Emerging Funds. Those two agencies were not allowed to apply for the FY24 Emerging funds, but one agency was subsequently allocated funding by City Council. Discussion The Aid to Agency process has evolved over time and the instance of a Legacy Agency not receiving funding was not anticipated at the point in which the definitions and eligibility criteria were drafted. As such, the language describing Emerging and Legacy Agency funding as outlined in Resolution #18-214 does not address this situation. Additionally, some of the language used in the 2018 resolution are out-of-date based on how the program is currently set up. Staff proposes to revise the definition of the Emerging funding to allow an unfunded Legacy Agency to apply for Emerging funds, and generally update the definitions of both funding opportunities to match how applications are currently accepted. These changes do not affect the work underway by HCDC's Aid to Agency subcommittee, which will be shared with the commission at the January 2024 meeting. The current definitions can be found in Appendix A of Resolution #18-214 (attached). The proposed revised definitions are as follows: Aid to Agencies (A2A) provides nonprofit public service agencies with flexible operational funding to help them serve low-income Iowa City residents based on priorities set in the City's Consolidated Plan. Emerging Agencies Legacy Agencies Purpose Operational funding intended to help Ongoing operational funding for a core new nonprofit organizations develop. group of service providers intended to be a stable source of funding. Definition Any nonprofit agency that is not Must be identified as a Legacy Agency and Eligibility receiving Legacy funding in a given in the City's Consolidated Plan fiscal year. Must be a 501 c3 (currently City Steps 2025) at the time of organization in good standing. application. November 9, 2023 Page 2 Budget Up to 5% of total Aid to Agencies Aid to Agencies budget established by annual budget established by City City Council minus up to 5% for Council. HCDC recommends the Emerging agencies. amount to allocate to Emerging Agencies up to 5% during the application review. Funding Minimum of $5,000 Minimum of $15,000 Amount Maximum of $15,000 No Maximum Application Applications accepted annually Applications accepted every other year Process through the City of Iowa City during for two years of funding through the the CDBG/HOME funding process United Way Joint Funding Process. typically in December/January. Awarded agencies will receive a prorated amount of funding in the second year based on the approved City budget. Reporting Semi-annual reports submitted to Quarterly reports submitted in eclmpact City through United Way. Payments Two semi-annual payments Four quarterly payments. Additional This source should not be expected Funding is not guaranteed and may be Notes to be ongoing or permanent. subject to a prorated increase or Eligibility to apply is not a guarantee decrease depending on annual funding of funding. amounts. If an agency does not perform to a minimum standard, funding may be revoked. Amendments Amendments to the eligibility and Amendments would follow the City's definition of Emerging Agencies or adopted Citizen Participation Plan. change to financial terms may be approved by the Neighborhood and Development Services (NDS) Director. The NDS Director may request HCDC provide a recommendation to City Council for consideration and approval. Next Steps With the HCDC's recommendation, staff would bring the revised definitions to an upcoming City Council meeting ahead of the FY25 application cycle. Attachments City Council Resolution #18-214 i0 Prepared by: Kirk Lehmann, Neighborhood Services, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5230 RESOLUTION NO. 18-214 Resolution adopting the Aid to Agencies process Whereas, the Iowa City Housing and Community Development Commission formed a subcommittee to discuss past and current practices and policies for the Aid to Agencies process of funding public service providers; and Whereas, the Iowa City Housing and Community Development Commission wishes to better balance stable funding for existing agencies with funding for developing agencies and/or agencies that have not historically received funding; and Whereas, the Iowa City Housing and Community Development Commission also wants to improve the Aid to Agencies process itself; and Whereas, the City solicited input from agencies, and held public meetings during which they discussed the Aid to Agencies process; and Whereas, the Aid to Agencies Process Recommendations dated July 10, 2018 is attached hereto as Appendix A; and Whereas, the Iowa City Housing and Community Development Commission has recommended that Appendix A be approved; and Now, Therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that 1. The Aid to Agencies Process Recommendations dated July 10, 2018, containing changes to the Aid to Agencies process and attached hereto as Appendix A, is hereby approved and adopted. Passed and approved this 171 day of July, 2018. IF Mayor Attest: I d t Deputy Clerk City Attorney's Office Resolution No. Page 2 18-214 It was moved by Botchway and seconded by Mims Resolution be adopted, and upon roll call there were: AYES: NAYS: x x x x x ABSENT: x Botchway Cole Mims Sahh Taylor Thomas Throgmorton the Appendix A "Emerging" Agency Funding. HCDC will set aside 5% of A2A funds for "emerging" agencies, defined as any agencies that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last 5 years. These funds will have a $5,000 funding minimum and will be allocated annually to help new organizations develop. This source should not be expected to become permanent. Applications will be separate from the United Way Joint Funding Process, allowing them to be smaller and more customized. Applications will be due at the same time as the City's HOME/CDBG funding round in December, awarding funds closer to the reception of funds. Two years from the year they were funded, an Emerging Agency can apply for Legacy funding, so if an agency was awarded Emerging funds in 2019, they could apply for Legacy funding in 2021. Unused Emerging Agency funding may be shifted to Legacy Agencies. "Legacy" Agency Funding. All remaining funding will be available to "legacy" agencies, defined as agencies that have existed as a legal entity for at least 2 years and have received A2A funding in any of the last 5 years. This funding is not guaranteed but will provide a minimum of $15,000 each year over 2 years (funding may be subject to a prorated increase or decrease depending on annual funding amounts). Legacy agencies will use the United Way Joint Funding Process application and will submit regular reports to HCDC to ensure accountability. If an agency does not perform to a minimum standard after its first year of funding, funds may be. revoked. HCDC will strive to apportion funds using the following guidelines: 70% of funds to High priorities, 25% to Medium priorities, and 5% to Low priorities. This will help spread funding between priority groups and reduce competition for high -priority designations. Staff will recommend an agency's priority level based on its central mission, and HCDC will approve. If HCDC determines a priority level does not have appropriate applications, funds may be moved between priority groups. r 11y CITY OF IOWA CIT w ® U7-17-18 COUNCIL ACTION REPO �° July 17, 2018 Resolution adopting the Aid to Agencies process Prepared By: Kirk Lehmann, Community Development Planner Reviewed By: Erika Kubly, Neighborhood Services Coordinator Tracy Hightshoe, Director of Neighborhood and Development Services Fiscal Impact: None Recommendations: Staff: Approval Commission: Housing and Community Development Commission (HCDC), approval 8-0 Attachments: Resolution HCDC Memo Aid to Agencies Process Recommendations, dated July 10, 2018 Executive Summary: After its May 24, 2018 HCDC meeting, HCDC reviewed the Aid to Agencies (A2A) allocation process. Historically, A2A provided predictable funding for nonprofits, but it also has funded new and developing agencies. The subcommittee developed recommendations to balance both functions of A2A funds while improving the allocation process. HCDC voted to send the recommendations to City Council for consideration after discussions on June 21 and July 10. Background/ Analysis: The attachment discusses the background, solutions and recommendations made by HCDC regarding the Aid to Agencies process. A summary of the recommendations is as follows: "Emerging" Funding. HCDC will set aside 5% for "emerging" agencies, defined as any agencies that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last 5 years. These funds, allocated at a $5,000 minimum increment, will be allocated annually to help agencies develop. Applications will be simplified and separate from the United Way Joint Funding Process. They will be due at the same time as the City's HOME/CDBG funding round. Two years from the year they were funded, an Emerging Agency can apply for Legacy funding (i.e. an agency awarded funds in 2019 could apply for Legacy funds in 2021). "Legacy" Funding. All remaining funds are reserved for "legacy" agencies, defined as agencies that have existed as a legal entity for at least 2 years and have received A2A funding in any of the last 5 years. These funds, allocated at a $15,000 minimum increment, will be provided each year over two years (though funding may be subject to a prorated change depending on annual funding amounts). Applications will be through use the United Way Joint Funding Process. Regular reports.will be required, as will a minimum standard of performance. Ranking criteria will also be used to make the funding process more transparent and objective. HCDC will aim to apportion 70% / 25% / 5% of funds to High / Medium / Low priorities to spread funding between priority groups and reduce competition for high -priority designations. Staff will recommend an agency's priority level based on its central mission, and HCDC will approve. CITY OF IOWA CITY COUNCIL ACTION REPORT HCDC recommends that City Council consider and approve these changes to the Aid to Agency process. Once Council completes its review, staff will send a memo to applicants summarizing changes made to the A2A process, along with the rationale, to help set expectations. CITY OF IOWA CITY MEMORANDUM Date: July 12, 2018 To: Iowa City City Council From: Housing and Community Development Commission Re: Aid to Agencies Recommendations Introduction: Following the May 24, 2018 Housing and Community Development Commission (HCDC) meeting, a subcommittee reviewed the Aid to Agencies (A2A) allocation process. Historically, A2A provided predictable funding for nonprofit agencies. More recently, it has also provided new and developing agencies flexible funding. The subcommittee developed the following recommendations which seek to balance both functions of A2A funds, as well as improve the allocation process. HCDC voted to send the recommendations to City Council for consideration. History/Background: Several policies have been developed in the past to prioritize agencies for the funding allocation. • Legacy Agencies: In the past, agencies who continually receive funding each year were prioritized in funding allocations. This process provided a consistent source of funding for these agencies, allowing them to retain staff and anticipate budget amounts year-to-year. However, it made it difficult for new agencies to benefit from the program. • Priority Needs: The prioritization of agencies into low, medium, and high based on population served was developed to ensure funds had the greatest impact and is required by CITY STEPS. The current use of these categories in the allocation process tends to be ineffective because nearly all agencies attempt to meet the high priority category. • Minimum Threshold: A minimum funding threshold of $15,000 is set to allow for funding of a half-time or quarter position at an agency. The amount of staff time required to administer each grant and level of community benefit were also considered when the minimum threshold was implemented. An HCDC subcommittee solicited feedback from agencies and met June 7 and June 15, 2018 to identify ways to improve the A2A allocation process. The subcommittee drafted recommendations, which were reviewed by the full committee on June 21 and July 10. Discussion of Solutions: The subcommittee received comments from multiple A2A recipients, many of which echoed previously mentioned feedback. The following themes to improve the process were developed: • Enhance objectivity: Multiple agencies mentioned a desire to increase objectivity in allocating funds. They were supportive of objective criteria in evaluating applications. • Avoid duplication of work: HCDC should be careful about how to fund agencies that are doing the same work because they don't want to duplicate services with limited funds. • More clarity in expectations. Several agencies were confused about the process and exactly how HCDC chose to allocate funds. Understanding was also lacking on which agencies got to present to HCDC. Clearer expectations with agencies need to be set. • Minimum funding: Some saw a minimum funding amount as arbitrary. However, it makes the review process more manageable for HCDC and provides greater certainty for staffing. Based on this feedback, the subcommittee tried to balance stable funding with opportunities for new agencies. Recommendations primarily focus on sustainable funding for agencies, but they also provide funds for new agencies. The following summarizes general recommendations: July 12, 2018 Page 2 "Emerging" Agency Funding. HCDC will set aside 5% of A2A funds for "emerging" agencies, defined as any agencies that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last 5 years. These funds will have a $5,000 funding minimum and will be allocated annually to help new organizations develop. This source should not be expected to become permanent. Applications will be separate from the United Way Joint Funding Process, allowing them to be smaller and more customized. Applications will be due at the same time as the City's HOME/CDBG funding round in December, awarding funds closer to the reception of funds. Two years from the year they were funded, an Emerging Agency can apply for Legacy funding, so if an agency was awarded Emerging funds in 2019, they could apply for Legacy funding in 2021. Unused Emerging Agency funding may be shifted to Legacy Agencies. "Legacy" Agency Funding. All remaining funding will be available to "legacy" agencies, defined as agencies that have existed as a legal entity for at least 2 years and have received A2A funding in any of the last 5 years. This funding is not guaranteed but will provide a minimum of $15,000 each year over 2 years (funding may be subject to a prorated increase or decrease depending on annual funding amounts). For the first round, funding will be randomly staggered to spread applications between years. Legacy agencies will use the United Way Joint Funding Process application and will submit regular reports to HCDC to ensure accountability. If an agency does not perform to a minimum standard after its first year of funding, funds may be revoked. HCDC will strive to apportion funds using the following guidelines: 70% of funds to High priorities, 25% to Medium priorities, and 5% to Low priorities. This will help spread funding between priority groups and reduce competition for high -priority designations. Staff will recommend an agency's priority level based on its central mission, and HCDC will approve. If HCDC determines a priority level does not have appropriate applications, funds may be moved between priority groups. Financial Impact: These recommendations will have no fiscal impact on the City. Fiscal impacts for agencies may include more evenly distributed funding around agencies and greater levels of transparency. Recommendation: HCDC recommends that City Council consider and approve these changes to the Aid to Agency process. Once Council completes its review, staff will send a memo to applicants summarizing changes made to the A2A process, along with the rationale, to help set expectations. Applicant Guide Iowa City CDBG and HOME P Agenda Item #7 1 r i W 4 �wr®i CITY OF IOWA CITY rams 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. The CDBG program helps develop viable urban communities by providing decent housing and suitable living environments, and expanding economic opportunities, principally for persons of low and moderate income. The HOME program helps provide safe and decent affordable housing. Both programs are funded by the U.S. Department of Housing and Urban Development (HUD). Notes to applicants: 1) All applicants are strongly encouraged to attend the CDBG/HOME Applicant Workshop (see Application Timeline below). 2) First consideration for funding will go to housing (not including Community Housing Development Organizations [CHDO] operating expenses or set aside) and public facility projects of $50,000 or more. Top ranking applications will be considered first. 3) Information submitted is made publicly available for the Housing and Community Development Commission (HCDC) scoring process. Please do not submit sensitive information that cannot be posted for public review. 4) Applications must be complete for HCDC consideration. Late or incomplete applications will not be considered. 5) Please review the City's Strategic Plan (www.icgov.org/strategicplan) and City Steps 2025 (https://www.icgov.org/actionplan) to determine if your project fits into the identified priorities. If so, please identify in the application. Application Timeline The following is a tentative timeline of the application process. Dates are subject to change. Visit https://www.icgov.org/grants for current information or contact staff at 319-356-5240. 1) Applications Open December 29, 2023 2) Applicant Workshop January 9, 2024 at 11:00 AM 3) Applications Due January 29, 2024 at 12 PM 4) Question and Answer Process a) HCDC submits questions for applicants to staff February 19, 2024 b) Written responses due from applicants February 29, 2024 5) HCDC Meeting (funding recommendations) March 21, 2024 at 6:30 PM PART I. Estimated Federal Funding Available Federal funding has not yet been awarded, so numbers will be subject to change. However, the City of Iowa City expects to receive approximately $1,500,000 in FY25 federal funds (including entitlements and program income) from HUD. The City will approximate the amount of funds available for allocation to recipients after Council set -asides have been removed for economic development, housing rehabilitation, CHDO reserve, CHDO operating, administration, neighborhood improvements, and Aid to Agencies (public services). FY25 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 2025 when considering the proposals, funding estimates, and time schedules for achieving their project goals. Program Purpose All proposals must benefit low -moderate income individuals. The specific ways that a project must accomplish the program's purpose (also called a National Objective) varies by program. CDBG Funds. At least 51% of those befitting from the program (persons or households) must have incomes at or below 80% of the area median income (AMI) based on household size (see table below). For programs that benefit individual households, all households must earn less than 80% of the median household income. Applicants must document that its purpose is being met. CDBG allows households to self -certify their income with their signature, though a percentage of beneficiaries must also provide source documentation such as pay stubs or a Social Security statement to verify the household's income. The City must approve this percentage based on the program and number of beneficiaries - usually set between two and five percent. 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. HOME Funds.All activities undertaken with HOME funds must benefit households below 80% AMI, and nearly all assisted units must be targeted to households below 60% AMI. Median household income limits for projects in Iowa City are as follows: (effective 6/15/2023) Household Size Extremely Low Income Very Low Income Low Income 30%Median Income 50%Median Income 60%Median Income 80Yo Median Income 1 $24,250 $40,400 $48,480 $64,650 2 $27,700 $46,200 $55,440 $73,850 3 $31,150 $51,950 $62,340 $83,100 4 $34,600 557,700 $69,240 $92,300 5 $37,400 $62,350 $74,820 $99,700 6 $40,150 $66,950 $80,340 $107,100 7 $42,950 $71,550 $85,860 $114,500 8 $45,700 $76,200 $91,440 $121,850 CDBG allows its purpose to be satisfied by meeting the following criteria: 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 by predominantly 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 by low -moderate income households. C. Job creation or retention as an activity must involve employment of predominantly low and moderate -income persons. FY25 Iowa City CDBG and HOME Applicant Guide Eligible Activities 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. 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. • 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. 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 will not be considered under this allocation process. However, these expenses would be eligible under the City's Aid to Agency process. Additional requirements and CDBG award limitations may apply, please contact Neighborhood Services staff to discuss. FY25 Iowa City CDBG and HOME Applicant Guide Performance Schedule and Payment Reimbursements can be made after the contract has been formalized. Expenses incurred before July 1, 2024 or before a contract has been entered may not be reimbursable and may jeopardize all the CDBG/HOME funds awarded to the project. 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 to the CDBG line of credit. • 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. FY25 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 the project schedule, sources and uses statement, construction budget (if applicable), and pro forma (if applicable) to facilitate the underwriting process. 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 Project 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 all neighborhoods of Iowa City. To encourage applicants to meet this goal, a greater number of points will be awarded during the scoring process to projects that successfully encourage housing through neighborhoods in Iowa City that traditionally lack affordable options. The Affordable Housing Location Model was discontinued in October of 2022. Pro Forma. Projects that include development of rental housing are required to complete a pro forma that abides by the City's rules for project underwriting. See Appendix B on pages 11-12 for specific criteria. Applications for rental housing submitted without a pro forma will be considered incomplete and will not be considered. FY25 Iowa City CDBG and HOME Applicant Guide 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. • No choice limiting actions may be made prior to receiving environmental clearance from the City to move forward with a project. These include but are not limited to include signing contracts, acquisition, demolition, disposition, rehabilitation, repair, new construction, site preparation, and leasing or any other activities that commit to future activities. • 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'/2 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 for more than $250,000 must utilize the competitive sealed bids (formal advertisement) method of procurement. Procurement by small purchase procedures shall be utilized for projects $250,000 or less. Contracts under $10,000 may use the micropurchase method of procurement. 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 $200,000 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 • Applicants undertaking a Section 3 project are strongly encouraged to complete the free, self - paced online training provided by HUD titled Understanding Section 3 or meet with staff to understand the scope of the requirements before submitting an application: https://www.hudexchange.info/trainings/section-3/ • Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative Marketing and Fair Housing. FY25 Iowa City CDBG and HOME Applicant Guide • Acquisition, Displacement and Relocation are also contained in the Agreement. • Lead Based Paint regulations regarding interim controls and abatement may also apply. The Grantee must comply with the requirements of the Build America, Buy America (BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the project. Pursuant to HUD's Notice, "Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance" (88 FIR 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver. More information available at https://www.hudexchange.info/programs/baba/. FY25 Iowa City CDBG and HOME Applicant Guide PART V. Financial Management, Reporting, and Monitoring Standards for financial management and record keeping are provided in 2 CFR 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 case -by -case basis. 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. Organizations that expect 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 as set forth in 2 CFR 200. 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. 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. The City of Iowa City requires quarterly reports and has a standardized reporting form. 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. 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. All notices and reports should be directed to: Neighborhood Services 410 East Washington Street Iowa City, IA 52240 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). FY25 Iowa City CDBG and HOME Applicant Guide APPENDIX A: CDBG AND HOME CONSOLIDATED POLICIES The City recognizes the need to utilize Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects 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 the Housing and Community Development Commission (HCDC) in investing funds and evaluating a project's status and ability to proceed, the following policies shall apply to all projects effective July 1, 2020: Investment Policies a. Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed and approved by City staff based on criteria identified in the Applicant Guide. Updates will be provided to the City Council Economic Development Committee periodically. 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. Economic development assistance may be used for direct business funding, or for funding technical assistance for eligible businesses. b. Housing Rental Housing. 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. 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. 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. C. Public Facilities Public Facility projects as defined in 24 CFR 570.201(c) may be completed by the City and/or subrecipients. Governmental entities (i.e. jurisdictions with taxing authority as provided for in Iowa Code) that conduct CDBG-assisted public facilities projects will receive a grant with a compliance period of five years (60 months). Non -governmental subrecipients will receive a conditional occupancy loan, which the City shall secure through a lien, mortgage, or other comparable security against the assisted real property, to only be repaid 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 FY25 Iowa City CDBG and HOME Applicant Guide the terms outlined in the applicable CDBG Agreement, the security instrument will be released by the City following the successful completion of the compliance period that begins on the date as listed within the applicable CDBG Agreement. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. The number of years in the compliance period of a conditional occupancy loan will be calculated by dividing the total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year for a public facility project by $10,000, rounded down. The minimum compliance period is five years (60 months). The maximum compliance period shall be no more than twenty (20) years. For example, $75,000 in CDBG assistance equals a compliance term of 7 years or 84 months. d. Public Service Public Service projects as defined in 24 CFR 570.201(e) shall receive CDBG assistance in the form of a grant with a term of not less than one year (12 months). Unsuccessful and Delayed Projects HCDC recognizes that from time to time, there may be CDBG and/or HOME projects that do not meet the anticipated schedule for implementation as presented to HCDC. These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). The following process helps ensure subrecipients use their funds in a timely manner. All CDBG projects carried out by subrecipients will have entered into a formal agreement with the City of Iowa City for the utilization of funds by September 30 each year. Should a subrecipient fail to meet this schedule, the project will be reviewed by HCDC to evaluate if extenuating circumstances exist. If extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be established for the project. If circumstances do not warrant an extension of time, HCDC may recommend the recapture and re -use of the funds to the City Council. 2. All CDBG projects (except applicants for Low Income Housing Tax Credits) carried out by subrecipients 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 subrecipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate the timeliness of the project and its ability to proceed. If extenuating circumstances exist, a new timeline for expenditure will be established. If circumstances do not warrant an extension of time, HCDC may recommend the recapture and reuse of the funds to City Council. All HOME projects carried out by subrecipients will have entered into a formal agreement with the City of Iowa City within two years of award (24 months). All HOME funds must be spent within five years. Should a subrecipient fail to show adequate progress towards meeting the schedule as identified in its application or the statutory requirements of the HOME program, the project will be reviewed by HCDC. If a HOME recipient is unsuccessful in obtaining funds identified in the application, HCDC will review the project and determine its viability without the proposed funds. HCDC may recommend the recapture and reuse of the funds to City Council. III. Allocation of Uncommitted Funds The City may have uncommitted CDBG or HOME funds that become available after the regular funding round either through windfall income, project cancellation, or additional funds provided by HUD. In most cases, funds will be retained for the next regular funding round and/or be used for administrative FY25 Iowa City CDBG and HOME Applicant Guide 10 amendments of existing projects. In the event uncommitted funds exceed $150,000, HCDC may choose to: 1. Provide funding to existing projects that did not receive full funding and/or to projects that submitted applications but did not receive CDBG/HOME funding, up to their full request; or 2. Hold a special funding round to solicit and fund new proposals. If funds shall be provided to existing and/or unfunded project, applicants will be notified of the availability of funds and asked to provide a written request for funds and how they will utilize them for their original request. If new projects are being considered, HCDC must publish notice of funding availability and proceed with a formal application process. In all cases the public must be given the opportunity for comment on the proposed use of funds in accordance with the City's adopted Citizen Participation Plan. \r FY25 Iowa City CDBG and HOME Applicant Guide 11 APPENDIX B: PRO FORMA INSTRUCTIONS Developers of rental housing (including rehabilitation projects) are required to complete the pro forma at the time of application. The purpose of this pro forma is to demonstrate that the project is financially feasible and viable using the least amount of City funding, and to help staff and HCDC make informed decisions on the allocation of HOME and/or CDBG funding. This form will provide the necessary information in a format that is uniform among all rental housing applicants. The following are instructions for completing the pro forma and some basic information for reference. The pro forma template allows for up to 20 years of information, however, it only needs to be filled out through the project's period of affordability. Underwriting is required prior to signing an agreement and an updated pro forma will be required if applicable to ensure information is current for staff review. Please note, cells shown in grey in the pro forma template indicate fields that should be filled out by the applicant. If you have any questions about the form or need technical assistance, please call Community Development staff at 319-356-5240. Staff can also help you determine the period of affordability for the project. Developer fees (including overhead and profit, consulting fees) shall not exceed 10%. Revenues [Income escalates at 2% as calculated in the spreadsheet; consistent with the Fair Market Rent (FMR) increases for Iowa Cityl Line 1 Gross Rent: Is the total amount of rent generated from the housing units, based on proposed rent levels and expected utility allowance deductions for tenant -paid utilities (proposed rents may be less than fair market rent (FMR), but cannot exceed FMR. Line 2 Other Income: Include laundry income, application or pet fees, and interest income. Line 3 Tenant Contributions: Include other payments such as rent for parking or storage space. Line 4 Gross Income: Is the sum of Lines 1 through 3. Line 5 Vacancy Loss: Line 1 multiplied by 5% (may be increased up to 10% depending on Applicant's past performance in managing units). Line 6 Effective Gross Income: Line 4 minus Line 5. Operating Expenses [Inflation escalator at 3% as calculated in the spreadsheet) Line 7 Insurance: Estimated insurance expense from an agent or similar property. Line 8 Maintenance & Structural Repairs: Repairs and replacements are typically 1 % of the property's value, though varies depending on building age, condition, size, and use. Line 9 Management Fees: May not exceed 10% of Annual Gross Rent, typically 5% to 7%. Line 10 Misc. Operatinq Expenses: legal, accounting, advertising, owner -paid utilities, etc. Sum of Lines 7-10 shall be no less than $2,750/unit; SRO properties in single family homes shall be considered 0.3 units each. Line 11 Property Tax: Estimate available from City Assessor or Johnson County records. Line 12 Reserves: Operating reserve no less than $400/unit. If new construction, include a rent -up reserve for Year 1 of gross monthly rent for all units x 3 months). Line 13 Total Operating Expenses: Sum of Lines 7 through 12. Net Operating Income Line 14 Net Operating Income: Line 6 minus Line 13. FY25 Iowa City CDBG and HOME Applicant Guide 12 Debt Service [list mortgage payments for principal and interest onlyl Line 15 Debt Service for 1 st Mortgage. Line 16 Debt Service for Subordinate Mortgage(s): Total payments for all junior mortgages. Line 17 Total Debt Service: Sum of Lines 15 and 16 (should not be less than 87% of Line 14). Cash Flow Available for Distribution Line 18 Cash Flow: Line 14 minus Line 17. Line 18B Equity Investment: Amount of funds being invested in the project by the project developer\ sponsor. This does not include the equity raised through the sale of Low Income Housing Tax Credits as they are accounted for on Line 33. A minimum contribution of $100 is required. Cash on Cash Return on Investment [shows return to developer or investors on their equity contribution before taxes or tax credits are includedl Line 19 Cash on Cash ROL Line 18 divided by equity investment as shown on the application. Debt Coverage Ratio Debt Coverage Ratio (DCR): Ratio of estimated net operating income to debt service. Line 14 divided by line 17. After year 3, DCR shall be no less than 1.15 or over 2.00 during the affordability period. Encourage 1.20-1.50. If the DSCR exceeds 2.00, the applicant must submit an explanation which staff will take into consideration when reviewing the application. Determining Taxes Line 20 Cash Flow: Carry over the figure from Line 18. Line 21 Depreciation Expenses: Annual depreciation of property (27.5 year straight-line schedule). Line 22 Amortization of Fees: Annual amortization of project fees (15-year straight-line schedule). Line 23 Principal Payments: Calculate the amount of principal paid on all loans for each year. Line 24 Reserves: Carry over the figure from Line 12. Earnings (Loss) Before Taxes Taxes Line 25 Earnings Before Tax: Equals (Line 20 minus Lines 21 and 22) plus Lines 23 and 24. Line 26 Tax Rate: Use 35% tax rate for for -profit organizations and 0% for nonprofits. Line 27 Taxes Incurred (Saved): Line 25 multiplied by Line 26. Cash Flow After -Tax Line 28 Cash Flow: Carry over figure from Line 20. Line 29 Taxes Incurred (Saved): Carry over figure from Line 27. Line 30 Cash Flow After-tax: Line 28 minus Line 29. Total Benefit Analysis FY25 Iowa City CDBG and HOME Applicant Guide 13 Line 31 Cash Flow After-tax: Carry over figure from Line 30. Line 32 Rehabilitation Tax Credits: Calculate full value of rehab tax credits. Line 33 Low Income Housing Tax Credits: Calculate full value of LIHTC annually for each of the 1 st 10 years. Line 34 Net Sale Proceeds: In year 20, calculate the estimated future market value of the property by taking the total cost of the project as presented in this application and compound it by 2% for each year. Place this amount on line 34. Line 35 Net Cash Flow After-tax: Equals the sum of Lines 31 through 34. Line 36 Return on Investment: Equals the Net Cash Flow After Tax divided by the Equity Investment. FY25 Iowa City CDBG and HOME Applicant Guide 14 APPENDIX C: FY25 SCORING CRITERIA 0213 - Project information Project description is clear and explains how the project will address a specific goal from YM City Steps 2025 09 - City Steps goal and 1 Goal: description 2 Are there staff concerns that affect the agency's ability to successfully undertake the YIN proposed project? Submission. Staff experience Comment: 3 Has the applicant provided an itemized project budget detailed enough to determine that the proposed expenditures have been researched, documented and are deemed reasonable? a. Based on Sources and Uses of Funds, budget appears accurate, comprehensive, and detailed. 20 Costs are clearly documented and appear reasonable and justified. 05 - Source of funds b. Based on Sources and Uses of Funds, budget appears mostly accurate, comprehensive, and 15 detailed. Costs are mostly documented and appear reasonable and justified. 06 - Use of funds c. Based on Sources and Uses of Funds, budget appears reasonable, but not clear, comprehensive, 10 or detailed. The budget is substantively mathematically correct (i e. minor errors noted), and/or does not appear complete. d. Based on Sources and Uses of Funds, budget appears questionable and/or unreasonable. The 0 budget is substantively mathematically incorrect. 4 Did the agency submit evidence of financial commitment (Example: loan commitment lever friam a banki for sources listed in the project bud et? a. Evidence of financial commitment provided for all applicable sources listed in the project budget 20 05 - Source of funds b. Evidence of financial commitment provided for most sources listed in the project budget. 15 Application attachments c. Evidence of financial commitment provided for some of the sources listed in the project budget 10 d. Otrer sources of financing not committed or no documentation submitted- 0 5 What percentage of funds has the agency levxeged for the project? D Wit by Wal - f cost 05 -Source of funds a. 76-99 percent 20 b. 51-75percent 15 c. 26-60 percent f0 d. 25 percent or less 5 6 Does the project leverage community partnerships andior volunteer resarees? a. The project proposal demonstrates numerous community partnerships and/or voluntoer resources 20 and they are described in detail_ b. The project proposal demonstrates some community partnerships andfor volunteer resources. 15 05 - Source of funds c. The project proposal demonstrates few community partnerships and/or volunteer resources. 10 d. Proposal does not demonstrate community partnerships and/or volunteer resources. 0 7 Has the agency demonstrated that they have the resources and fiscal capacity to successfully complete the proposed project? 05 - Source of funds a. The agency has clearly demonstrated that they have the resources and fiscal capacity to 20 successfully complete the proposed project t]6 -Use of funds b. The agency has mostly demonstrated that they have the resources and fiscal capacity to 15 successfully complete the proposed project. 014 - CDBGIHOME received c. The agency has somewhat demonstrated that they have the resources and fiscal capacity to 10 successfully complete the proposed project. Application attachments d. The agency does not have the resources or fiscal wpaary to complete the proposed project Q tt 0 is unclear based on the proposal. Total Section II Polnuil 0 FY25 Iowa City CDBG and HOME Applicant Guide 15 8 What primary Percent of median income persons are targeted? 07 - Income breakdown a. 0-30 percent 20 b_ 31-50 percent 15 c 51-60percent 10 d. 61-80% 5 9 Will the project assist any special populations (Example: people experiencing homaMsnesa or people with disabilities)? 07 - Income breakdown a. The proposal clearly demonstrates that the project assists one or more special populations. 20 022 - Description of primary b. The proposal somewhat demonstrates that the project assists one or more special populations- 15 target population and explanation of how agency promotes racial equity and incloulaor f c. The proposal mentions that the project may assist one or more special populations, but it is not 10 certain. marginalized populations 0 d. Theproject does not assist a special population or it is unclear if a special population is assisted_ 10 Does the proliect encomme housing throtiah all nei hborhoods7 a. The project clearly demonstrates that it will support the goal of encouraging housing and 20 residential facilities through all neighborhoods in Iowa City. The project expands access to neighborhoods that traditionally lack affordable options and the applicant provides useful data to 08/9/10 - Housing questions support their conclusion. 013 - Description of how the b. The project somewhat demonstrates that it will support the goal of encouraging housing and 15 residential facilities through all neighborhoods in Iowa City. The project somewhat expands access projsd will provide affordable to neighborhoods that tradibonally lad affordable options and the applicant provides some data to housing or assistance at rates or support their conclusion. prices lower than those in the c. The project provides housing in neighborhoods that have a concentration of affordable housing 10 market opportunities. d. Not applicable, proposal does not include a housing activity (Example: public facitiry 20 improvements). 11 Does the project schedule adequately demonstrate the project will be completed within the required time period? a. The project timeline is realistic and the project will proceed immediately when grant funds are 20 available. 011 - Proposed project timetable b. The project timeline is mostly realistic and/or the project will proceed sans after grant funds are 15 available. c. The project timeline is somewhat realistic and will proceed within a reasonable time period. 10 d. The project timeline is unclear or the project is not ready to proceed or the project is likely to 0 cause CDBG timeliness concerns. 12 will the project promote long-term, efficient use of funding (covering the compliance period at a minimum)? a. The proposal clearly demonstrates the long -lens, efficient use of funding which meets or exceeds 20 the required compliance period. Q 12 -Description of how ilia project will promote efficient use b- The proposal mostly demonstrates the long-term, efficient use of funding which meets or exceeds 15 the required compliance period. of funding over the long term pro Forma (if applicable) c. The proposal somewhat demonstrates long-term, efficient use of funding that covers the required 10 compliance period. d. The proposal does not demonstrate long -tens, efficient use of funding and/or does not cover the 0 required compliance period. Total Section III Points 0 IV 13 Capacity and Applicant History Has the agency successfully completed federally funded projects through the City of Iowa Points Scon, SuqWsted Reference Agency 015 - CDBG and/or HOME funds City of equal or larger scale in the last five years without compliance issues? Points received; organizational 'expenence/capacity and a, Yes. the agency has completed federally funded projects through the City of equal or larger scale identification of unspent funds; in the last five years without compliance issues_ 20 expending over $750,000 in federal funds b. The agency has completed federally funded projects through the City of a smaller scale m the last 016 - Description of five years without compliance issues. 5 organizations experience and key staff c The agency has completed federal funded projects through the City of ag y p ty p j g h equal a larger style resulting in compliance issues in the last 5 years. 0 017 - policies in place 019 - Description of organization strategies and recent activities d. The a enc has not corm leted a federally funded project through the City of any scale. 0 14 Has the agency demonstrated experience with relevant project specific federal requirements that may apply to the proposed project such as TBRA Davis Bacon or Section 3? 015 - CDBG and/or HOME funds received; organizational experience/capacity, and a. Yes, adequate experience demonstrated. 20 identification of unspent funds; expending over $750,000 in FY25 Iowa City CDBG and HOME Applicant Guide 16 b. Not applicable, project is not anticipated to have project specific federal rules such as Davis 10 federal funds Bacon or Section 3 apply. 016 - Descnption of organizations experience and key 'staff c. No experience or inadequate demonstration of experience with specific federal requirements that 0 may apply to the project. 019 -Description of organization Has the agency effectively described demand for project and explained the relevant factors to strategies and recent activities 15 help verify need for the proposed project? a_ Yes. the agency has clearly described the demand and explained the relevant factors to help 20 verity need for the proposed project. 018 - Description of demand b. Yes, the agency has mostly described the demand and explained the relevant factors to help 15 verify need for the proposed project. c. The agency has somewhat described the demand and explained the relevant factors to help verify 10 need for the proposed project. d. The agency has not described demand ancilor failed to demonstrate the need or it is unclear 0 based on the proposaLAacks evidence. 16 Does the agency have sufficient staff resources, technical expertise. and experience to carry 015 - CDBG and/or HOME out the project based on the informationprovided? funds received; organizational Score 0 20 20 being level 0-20 between to with the highest of sufficiency, expemse, and expenence. ezpenence/wpacilyond identification of unspent funds; expending over $750,000 in federal funds 016 - Description of organizations expenence and key staff 017 - Policies in place 019 - Descnptim of organization strategies and recent activities Application Attachments 17 Does the project promote racial equity and inclusivity for margimlized populations? 022 - Descnption of primary target population and explanation a. The proposal clearly documents that the project will promote racial equity and inclusivny, for 20 marginalized populabons of tow agency promotes racial equity and inclusivity, for b. The proposal mostly documents that the project will promote racial equity and inclusivity for 15 mar finalized populations marginalized populations c. The project somewhat promotes racial equity and inclusivity, for marginalized populations. 10 023 - Affirmative procurement efforts it The project does no promote racial equity and inclusivity for marginalized populations or rl is 0 unclear based on the proposal. 16 Does the project Incorporate sustainability initiatives (Example: Energy Star appliances a 80ar? a. The project proposal strongly incorporates sustainability imbatives where possible that support the 20 C*Vs climate related acials and actions outlined in the Climate Action Plan. Q21 - Description of sustainability b. The project proposal mostly incorporates sustamability initiatives where possible that support the 15 City's climate related 9cals and actions outlined in the Climate Action Plan initiatives c The project proposal somewhat incorporates sustainability initiatives that support the City's 10 climate related goals and actions outlined in the Climate Acton Plan. d. The project proposal does not include sustainability initiatives or it is unclear based on the 0 proposal 19 Overall qualityof submission. Score bet«een 0 to 20 with 20 being the highest quality of submission. 0-20 Total Section IV Points 0 1 of support for the project submitted from community organizations. 2 Aqcncy ication Attachments ALemeds Is the public facilities project documented in City Steps 20257 2 Cily Steps 2025 22 1 Is the applicant a certified Community Housing Development Organm on (CHOO) in good standing? 2 03; Staff Information 23 k the applicant a nonprofil housing developer in good standing? 2 jai Total Bonus Points 0 FY25 Iowa City CDBG and HOME Applicant Guide 17 Agenda Item #7 FY2025 CDBG/HOME Application City of Iowa City ■ Review the Application Guide that follows this application form below. ■ Only one project proposal may be submitted on each application. Please use separate applications for each project proposal. HUD defines a project as a site or sites together with any building (including a manufactured housing unit) or buildings located on the site(s) that are under common ownership, management, and financing and are to be assisted with federal funds as a single undertaking. The project includes all the activities associated with the site and building. For direct assistance activities (example: downpayment assistance), project is defined as assistance to one or more families. ■ Submit completed applications online at www.icgov.org/actionl)lan or a PDF version to bthul(cDiowa-citv.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be considered for funding. Online submittals are preferred, but you may send your application by certified or registered mail; overnight delivery service (Fed Ex, UPS, etc.); or deliver in person if arrangements are made with a Neighborhood Services representative to ensure receipt. Please call 319-356-5240 to make drop off arrangements prior to arrival. ■ Should you have any questions while completing the application contact Neighborhood Services staff at 319-356-5240 or by email at brianna-thul@iowa-city.org. III 1 - 41t 3 1t� M „0 4r1TJ M CITY OF IOWA CITY OPPORTUNITY Section 1 — General Information and Project Need Unique Entity ID 1. Lead Organization/Agency Number (replaced Organization Type DUNS Numbers) (Mark all that apply) Name: Address: 501(c)3: Website: Public: Application Contact App. Workshop Attendance Date: For Profit: Name: Faith -Based: Title: CHDO: Phone: Did not attend: Other: Email: Is the individual or entity eligible to receive federal funding (i.e., not listed as an excluded party in the SAM database. An excluded party is any individual or entity that has been suspended or debarred from doing business with federal funds)? Is there a secondary applicant: Yes/No Is applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state, and local laws, rules and regulations, including CDBG and/or HOME funded projects? If "NO" or currently in litigation, provide the name of and explain the HNoYes basis for the case. 2. Project Project Type Mark all that appI Activity Type Mark all that apply) Name: Rental Housing Acquisition Address: Owner Housing Rehabilitation City Public Facility New Construction State zip CHDO Operations Direct Assistance Additional Addresses Yes No Other I Other 3. Project Description (include purpose, benefits, and specific activities of project 4. Mark goal from City Steps 2025 primarily addressed by this application Briefly explain how the project will meet this goal. Increase affordable rental housing units Provide Tenant -Based Rental Assistance Support homebu er activities Rehabilitate/improve owner -occupied housing units Rehabilitate/improve renter -occupied housing units Section 2 — Budget and Resources Program regulations encourage leveraging non-federal funds. Non-public funds are especially encouraged. HOME funds require a minimum 25% match. Funding terms including type of assistance and affordability period are determined upon award; evidence of funding commitments is required for project underwriting. Source of Funds must match Use of Funds. Please attach a scope of work or estimate for any project that involves rehabilitation or new construction to demonstrate the cost reasonableness of any proposal. 5. Source of Funds Category Amount Description(s) of Funds Status* Requested CDBG/HOME funds $ Previous Award $ Other local funds $ State funds $ Other federal funds $ Applicant Funds (Equity) $ Applicant Loan $ Other Private Funds $ Other: $ Total $ Non-CDBG/HOME Match In -Kind Contributions Materials $ Labor $ Other: $ Describe community partnerships or volunteers that will contribute to project *Statuses include pending (P), committed (C), received (R), or applied for (A) 2 6. Use of Funds Description of Work Land Acquisition $ w Building Acquisition $ vSite Improvements $ e Rehabilitation $ = Construction $ Other $ Professional Fees $ w Construction Finance $ Y o Permanent Finance $ Developer Fees $ u)i Reserves $ Other $ Total $ As noted above, please attach estimate or documentation of how these costs were determined. 3 Section 3 — Feasibility and Community Impact 7. Anticipated Income Levels of Beneficiaries Unduplicated Special Populations (If applicable, mark one "presumed benefit" category if required for assistance) Households Persons 0-30% AMI Domestic Violence Victims 31-50% AMI Elder) 51-60% AMI Homeless 61-80% AMI Persons with Disabilities Over 80%AMI Migrant Farm Workers Total Persons with AIDs Basis for Estimates Other as defined in 24 CFR 570.208(2) AMI = Area Median Income, see applicant guide or www.icgov.org/actionplan. 8. Housing Projects (Required for Housing Projects Only Rental Housing Owner Housing Number of Units Proposed Contract Rent Number of Units Proposed Sales Price $ $ Only) One of the City's goals is to encourage the distribution of housing and residential facilities throughout all neighborhoods in Iowa City. Explain how your project meets this goal and support your explanation with data. Note: Heat map of City's existing subsidized housing under a compliance/affordability period attached 10. Vacancy and Property Management (Required for Rental Housing Projects Only) Number of people on the housing waiting list for your organization Total number of units owned by the organization Total number of units currently vacant Total vacancy rate (vacant units divided by total units) Number of federally funded units vacant (units from previous CDBG/HOME projects currently in a period of affordability) Does your organization use a property manager? If yes, please indicate the entity and provide a point of contact. 13 11. Proposed Project Timetable (include milestones such as rezoning, construction schedule, application(s) for other funding, and expected commitment dates. Date Milestones July 1, 2024 Beginning of City Fiscal Year and Project Start Date 12. Describe your agency's approach to serving LMI households and how this promotes efficient use of funding in the long term. 13. Describe how the project will provide for affordable housing or public assistance at rates or prices lower than those in the existing market: 14. Will the project proceed if less than full funding is awarded? If yes, describe. If there are several components, describe how they will beprioritized: Section 4 - Capacity and Applicant History 15. CDBG and/or HOME funds received and status of the project(s) undertaken Timeframe Budget Expended through Date Project 2024 Completed July 1, 2019 — June 30, 2020 $ $ July 1, 2020 — June 30, 2021 $ $ July 1, 2021 — June 30, 2022 $ $ July 1, 2022 — June 30, 2023 $ $ July 1, 2023 — June 30, 2024 Identify any prior year funds that remain unspent and indicate the number of projects pending completion. If funds remain unspent from prior years, justify this funding request. Do you anticipate receiving and/or expending over $750,000 in federal funds in a single fiscal year? *This includes CDBG, HOME, and other federal funds such as ESG. 16. Describe your organization's experience and capacity to administer the proposed project. Include the roles of key staff who will implement the project and their qualifications (excludes volunteers, board members and consultants). 17. Does your agency have Yes written policies in place that comply with federal regulations in 2 CFR 200 for topics such as No procurement, financial management, and segregation Unsure of duties? 18. What is the demand for the proposed project and how does your organization verify that data? If another organization provides the same service, explain why both projects are needed to address the need. 19. Describe the strategies your agency uses to serve those in need and an overview of the organization's recent activities, including projects underway. 20. 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. 21. Describe how you will incorporate sustainability initiatives into your project to help carry out the City's Climate Action Plan. 22. Provide a description of your primary target population(s). Explain how your agency promotes racial equity and inclusivity for marginalized populations (including people of color, LGBTQ, immigrants/refugees, individuals with disabilities). 23. Federal regulations require that subrecipients make every effort to use local business firms and contract with small, minority -owned, and/or women - owned businesses in the procurement process. Identify how you will take affirmative steps to meet these requirements in the proposed project. Section 5 - Required Documentation It is recommended that applicants submit as much information as possible with the application to facilitate a full project evaluation. The table below reflects the minimum requirements for each application. If an award is granted, additional documentation may be requested prior to entering an agreement with the City. Description Required W-9 Form (Request for Taxpayer ID # & Certification) Yes Board of Directors and Organizational Chart. Please include a complete list Yes of board members. Additionally, please submit an organizational chart. Unique Entity ID (UEI). Provide documentation of your UEI. Please note that Yes UEI replaced DUNS numbers in 2022. This transition allowed the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. Find your UEI: https://sam.gov/content/entity-information Organizational Status. Go to https://sos.iowa.gov/search/business to look Yes up the organization applying for funds. Provide a copy of the Business Entity Summary screen. Financial Commitment Letters. Please attach the following for committed Yes funding sources listed in Section 2. HOME requires evidence of firm commitments before project agreements may be signed. 1) Letters of intent from lending institutions for private financing. These must be on the lending institution's letterhead. 2) Commitment letters from all other sources (i.e. grants, loans, etc.). Each letter must include the value of the commitment; the interest rate & term; the purpose the funds can be used for; and any time limitations related to the commitment. 3) Evidence of capital for private equity such as current bank statements showing the funds Evidence of Fiscal Capacity. Please submit your most recent audit (if Yes applicable). If you have already submitted your most recent audit to staff for other purposes (e.g., monitoring for other projects under compliance), there is no need to resubmit. Applicants that do not receive an annual audit may submit sufficient alternative information, such as financial statements. Evidence of Organizational Capacity. Up to four pages of additional Yes information about the capacity of the organization may be included. Examples of possible evidence may be resumes of key staff, additional descriptions of organizational activities, or other relevant information. 0 CHDO Certification Letter. If applying as a CHDO, please include evidence Yes, if applying for CHDO of CHDO status. specific funds Please note that a CHDO's status must be recertified before committing funds per HOME rules. CHDO applications are due in March annually to allow time for the City to review the submission ahead of the fiscal year and potential commitment of funds. Additional CHDO recertifications may be required during the year if any supplementary funds are to be committed. Scope of Work. Include a write up of the work to be completed and include Yes, if activity includes copies of the cost estimates that are the basis of the uses table. construction or rehab work. Pro forma. Acquisition, rehabilitation, or new construction of rental housing Yes, if the project includes project MUST include completed pro forma. Excel format is provided by the rental acquisition, City. Applications for rental housing projects without the City's pro forma will rehabilitation, or new not be considered. See applicant guide for proforma instructions. construction of rental housing Letters of Support. If applicable, attach letters of support for the proposed No. project. 0 8 JJ, J j $� Y Q @ $E € . Yi � @ S Za 'e e 8 J LJ € e M 8 Q € Q € e e � 2@ E $€ z 8 z Y S Q Q 8 .I . z $ . Q g S W min io�iy$"§ 8 W � atL ..t [[R g 1 m ��� �3 wm _ ot�o �Go�G> xwo ���d �zSB�uwu call - a z z S e z E g z S r e T n Z a C e t ) L z i 6 n i E i z S e E Y z L e z E e z 8 Q z 4 6 z 3 E e z E e Y e � g b i 7 � F u` i Cm o o` u o a a rc w r U cR fq H U i r rc N N ry N N N N N N N p tq - ry M M� Agenda Item #7 cii j Of IOWQ Cii j Affordable Housing Design cauidelines Single Famill t DuPI" Howes Revised 1112023 410 E. Washington Street, Iowa Cit+ IA 5224D www.►cgov.org TABLE OF CONTENTS 1 PURPOSE APPLICATION & REVIEW 2 PROVISION A: PEDESTRIAN ACCESS PROVISION B: INDIVIDUAL IDENTITY PROVISION C: BUILDING ENTRANCE 3 PROVISION D: WINDOWS PROVISION E: EXTERIOR BUILDING MATERIALS 4 PROVISION F: OUTDOOR STORAGE AFFORDABLE HOUSING DESIGN GUIDELINES Applicable to new construction and substantial rehabilitation of single-family and duplexes/attached single family housing receiving Iowa City Community Development Block Grant or HOME funds. These standards are in addition to the Single Family Site Development Standards within the Iowa City Zoning Code (14-2A-6). The provisions also apply to lots to receive downpayment assistance if a building permit has not been issued at the time the applicant applies for City assistance. PURPOSE: The City of Iowa City's Affordable Housing Design Guidelines provide a standard framework for developers utilizing Community Development Block Grant or HOME Investment Partnership funding for new construction or substantial rehabilitation of affordable single-family and duplex/attached single family homes. The purpose of the Guidelines is to promote the rehabilitation and/or design of single-family and attached single family homes in a manner that encourages a quality design for the household that will live in the home. APPLICATION AND REVIEW: Prior to obtaining a building permit, a site plan, building floor plans, and building elevations for all single and two family uses funded by the City of Iowa City, shall be submitted to the Neighborhood & Development Services Department (NDS). Neighborhood Services shall review plans to ensure conformance with the Design Guidelines. Neighborhood Services will review the housing design within ten (10) working days of receipt of the above referenced items. A provision may be waived by the NDS Director upon presentation of convincing evidence that a specific provision cannot be completed due to extreme financial hardship, or the lot configuration does not allow compliance. Substantial rehabilitation includes any repair, reconstruction, modernization or improvement of a structure, the cost of which equals or exceeds 50% of the market value of the structure either: 1) Before the improvement or repair is started; or 2) If the structure has been damaged, and is being restored, before the damage occurred. These guidelines are in addition to the requirements in the zoning code. If the provisions of these guidelines are inconsistent with one another or if they conflict with provisions found in other adopted ordinances or resolutions, the ordinance or resolution will control. When these guidelines are equally specific or when it is unclear which provision to apply, the ordinance or resolution will control. In addition, there may be private subdivision covenants and restrictions that apply to the project. 11/2023 PROVISION A: PEDESTRIAN ACCESS A minimum three (3) foot wide paved pedestrian path shall be provided from the primary pedestrian entrance of a single-family home to the driveway and/or sidewalk. Minimum three (3) foot - wide paved pedestrian paths shall be provided from the primary pedestrian entrances of each unit in a duplex/attached single family development to a driveway and/or sidewalk. If the duplex/attached single family units have a shared entrance or both open into the same porch, one path shall be provided. PROVISION B: INDIVIDUAL IDENTITY Figure 1: Individual Identity: To the extent possible, multiple financially assisted homes constructed adjacent to, or in close proximity to each other, must be designed and located in a manner that prevents monotony by varying aspects such as facade detailing, window pattern, building materials, and color. While a consistent size and scale is exhibited by these two homes utilizing the same floor plan, slight variations in the roof, exterior building materials, details, windows, and door give every unit a distinctive identity. PROVISION C: BUILDING ENTRANCE Each single-family home and duplex unit shall be provided with no fewer than two (2) pedestrian entrances to promote pedestrian flow through all portions of the unit and lot unless the developer can illustrate that a second pedestrian entrance is not feasible. Main entrances to a building, including main entrances to ground level individual dwelling units must be clearly demarcated by one of the following means: covered porch or canopy, transom and 11/2023 2 FIGURE 2 sidelight windows, pilasters and pediment, or other significant architectural treatment that emphasizes main entrances. Simple trim around the doorway does not meet this standard. 1. Single -Family. The primary pedestrian entrance to a new single-family residential home or home to be rehabilitated shall be located on the side of the house that faces the street. 2. Duplex and Attached Single Family Dwellings. The primary pedestrian entrance must follow the applicable zoning code. A. . B. A. Yes. Both units within this duplex have their front entrance oriented toward the street. B. No. The doors of these duplex units face the side yard instead of the street. The side of the building is oriented toward the street. PROVISION D: WINDOWS Window proportions shall be compatible with the architectural style of the house. At least 15% of the street facing facade that has the front entrance must be windows or pedestrian entryway doors. PROVISION E: EXTERIOR BUILDING MATERIALS Exterior walls of buildings that are not primarily masonry or stucco, must have a durable foundation consisting of masonry, stucco, or concrete that extends at least six inches above grade. Exposed, unpainted or unstained lumber may not be used along any facade that faces a street -side lot line. All windows, doors and roof eaves, must be demarcated with trim. Window and door trim shall be compatible with the architectural style of 3 the house. PROVISION F: OUTDOOR STORAGE If no garage is provided, the storage of outdoor items such as lawn mowers, bicycles, shovels, etc. shall be considered. A shed, compatible in color and general design to the home, is encouraged to be placed on the lot in compliance with City regulations. City of Iowa City Neighborhood & Development Services 410 E. Washington Street Iowa City, IA 52240 319.356.5230 www.icgov.org rd Agenda Item #7 FY2025 Aid to Agencies Application Emerging ■ Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Monday. January 29, 2024 at 12pm. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Brianna Thul at bthul Iowa-city.org or to Neighborhood Services at 319-356-5240. Hard copy applications are available upon request. ■ Submit completed applications online at www.icgov.org/actionplan or a PDF version to bthul Iowa-city.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be considered for funding. Online submittals are preferred, but you may send your application by certified or registered mail; overnight delivery service e.g., FedEx; or deliver in person if arrangements are made with a Neighborhood Services representative. Please call 319-356-5230 to make drop off arrangements prior to arrival. Section 1 — General Information 1. Lead Organization/Agency Name: Address: Website: Application Contact Name: Title: Phone: Email: 2.Organization/Agency Type 501(c)3: Public: For Profit: Faith -Based: CHDO: Other: Years in Operation: 3. Project Project Name: Brief Description: Total Funds Requested: 4. History Has your Yes agency/organization received City assistance in No If yes, describe the last five years? Is the applicant currently in compliance with all federal, Yes No state and local laws, rules and regulations including Currently in litigation any CDBG and/or HOME funded projects? (including Provide comments if needed partners, co -applicants, etc. Section 2 — Need and Priority City Steps 2025 guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.org/actionplan. 5. Summary of proposed project: 6. Why is the project needed? 7. How does the project fill a gap in the community? 8. How does the project address the goals of City Steps 2025? 9. Describe how you will incorporate sustainability initiatives into your project to help carry out the City's Climate Action Plan. 10. Provide a description of your primary target population(s). Explain how your agency promotes racial equity and inclusivity for marginalized populations (including people of color, LGBTQ, immigrants/refugees, individuals with disabilities). Additional documentation: Please submit no more than seven pages. Section 3 — Resources and Feasibility Provide a budget breakdown for your specific project. Include only costs directly related to the project. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. 11.Budget Use of Funds City Funds Other Funds Source of Other Funds Type Status Subtotal $ $ Project Total $ Attach cost documentation. 12. Labor Type Description Hours Per Hour Rate Total Cost Total $ 13. If volunteers are used, please describe how these volunteers are utilized for the proposed activity. Yes 14. All Aid to Agency projects are required to expend their full award and No complete the proposed project by the end of the fiscal year (June 30, 2025). Will you be able to meet this requirement? Section 4 — Beneficiaries 15. Anticipated Income Levels of Beneficiaries (Unduplicated) Households Persons 0-30% AN 31-50% AMI 51-60% AMI 61-80% AMI Over 80% AMI Total Percent LMI Percent Iowa City Residents Please describe the basis or methodology used to estimate the number of clients to be served. AMI = Area Median Income, see www.icaov.org/actionolan. 16. Signature Name Title Signature Section 5 - Required Documentation It is recommended that applicants submit as much information as possible with the application to facilitate a full project evaluation. Description Required Board of Directors. Provide a list of individuals serving on the board. Yes Agency Budget. Provide the budget for the agency. Yes Financial Information. Provide a 990 form, agency financial statements, or similar documentation. Yes El 7 0 y N > m e N "— fn T C a) 7 '_ N C .co � a) m m a) 'O N .Q a) a) E a) C a) O U L a C n N �~ m m L n O I C a) a) C O N «L. 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N U N C 0 U to y 6 N 00 N C O7 o E N a a E QE E E@ C a) E c i'�U i E E E c iU U 0 m o@ a) a o m N oQ L O Y W E@ 0 7 C U@� 0 U tnL N 0. rn i O) O a) c a) E a) 2 m nU a) O of C) � 0a a) E a) +T' Of C) C 7 a 3 C @Qc @ Ta i C c C 0 0� y o m o • Q a� )E Q a° Q N 2 _T• O in a O lL d Q 2 U l}i E_CN o U Q)N CDz N O O N N e N 7 h � N N N N N CN N N N N � _- L N In r co d a a Q) LL Agenda Item #8 HCDC Subcommittee Meeting October 16, 2023 Meeting Notes Present: Becci Reedus; Genevieve Anglin; Nicki Ross; Jennie Schmidt, Karol Krotz, Brianna Thul Absent: James Pierce, United Way Staff • Ross - United Way Strategic Plan includes ideas for nonprofit assistance including connecting groups with accounting services. • Reedus to go through the PowerPoint presentation. Proposing updated to the Iowa City portion of the application. Reedus feels that once they have recommendations it is up to staff to step in and work with other participating organizations to coordinate changes. • Reedus provided a review of the discussion of an alternate review team by the HCDC at its October meeting. She reported that it was not generally accepted by the commissioners. The subcommittee wanted to provide the following feedback to the commission: o Ross — recapping the reason behind changing the venue from HCDC. Not everyone participates in the process. o The Commission should have a commitment to appropriately review and be accountable to fairness. o Full Commission review and scoring sends a signal of solidarity to City Council o Ross, reinforcing that participating in the process requires commitment. It doesn't solve the issue that things get sent back from City Council — frustrating for agencies. Would like to encourage City Council participating in the process if they are going to change the final recommendations. o City Council representation in the review process has the benefit of at least one councilor who is knowledgeable of the application contents and scoring process and this Councilor is able to actively participate in council discussion. o Anglin - this process is incredibly stressful. In the past when HCDC does things like going alphabetically and leaving the scraps for UAY, then they have to sit there without saying anything. o Scmidt — it is unconscionable that people don't submit scores. Agency budgets depend on those recommendations. o Ross- people should be required to submit scores. It is what they sign up for and it is part of the job. o Staff — it is difficult for staff to hold commissioners accountable for scoring and submitting. They are volunteers. o Scoring feedback should be readily available to all agencies. Ross - Summary of expectations for the process: o Commitment to appropriately review and accountability to fairness o City Council representation in the review process o All reviewing means solidarity to City Council when full representation o Transparency of scoring made available to agencies o Accountability to performing duties o Degrading - how do we bring dignity back? Application content revisions o Ross - Using a profile page for general information rather than submitting the data every year. Moving the salaries and benefits information to this page since it is not a scored questions. Agencies find the information on salaries useful. Unitec Way should be releasing this information. o Anglin — the salary information is useful to agencies, but UW needs to improve the format. o Reedus — information on healthcare benefits would be useful. Council never knows how the agencies are struggling. o Schmidt — budgets are definitely being impacted by increasing costs of benefits and salaries. o Reedus — the collaboration question is very difficult to score objectively. Collaboration is more than just shared space. Perhaps we can provide more distinct clarity on type of collaboration and also change the score to correspond to the type of collaboration. o Anglin — doesn't like the collaboration question. o Krotz — it does seem important to know that to make sure that there is not a duplication of services. o Ross — the question as written does not get to the question of duplication. o Ross — some of these questions need to be moved to the agency profile rather than reentered every year. Schmidt agreed because there is so much work to do for agencies and it is time consuming to re -explain the same need over and over. o Reedus — proposed a different format for identifying Revenue and Use of Funds instead of burying the information in total agency budget. (Iowa City Funding Request) However, through a thorough discussion this was not recommended. The following items were discussed and led to this decision: a. Ross — form C still exists. The additional funding information on slide 8 will help agencies explain exactly what program they are asking money for and what percentage of a program we are funding. b. Reedus we should be able to look at specific information about each program. c. Anglin — UAY uses money for several different programs — using the money for general operational funding. d. Ross — most people ask for general operational funds, but some agencies like HACAP should only be reporting on what they are asking money for. They are getting more points because they are reporting all accomplishments instead of the specific childcare accomplishments. e. Anglin — the second we write out each line item for what we are going to use funding for we have to budget exactly that. All of this matters on an audit. f. Ross — all we are really trying to get at is the percentage of total program when it applies. g. Schmidt — maybe we need to look at a percentage of agency operating budget instead to keep it simple. Reedus feels this won't work. Discussion of Outcomes: o Form D - Outcomes measures would be eliminated and Reedus proposed that the agencies should be telling us what the outcomes are and how they will measure success. o Ross — duplicated vs unduplicated — agencies don't like this. Doesn't account for repeat or expanded services to the same household. Reviewers need education. Quality of services is different than the number of those served. Suggested adding "and/or multiple services to same individual" o Reedus — we need more substance in what we are asking for. We want people to be able to name their own indicators. o Anglin — concerned about the different levels of experience and sizes in agencies and how they might answer this. Schmidt asked if it will be difficult to compare apples to oranges if everyone has different indicators. o Reedus — racial equity and inclusivity should continue to be considered. Demographics: o Ross — equity question belongs on demographics. Reedus - maybe asking how agencies have been successful in serving those folks instead. Leveraging Funds Financials o Schmidt - changing the question about leveraging funding for other programs to a budget narrative if agencies need to know about what funds are being used for match. Ross asked how this questions is scored. Staff read the rubric that is available online. Nearly all agencies received full points on this question during the last round with the exception of Inside Out Reentry since their request was such a large percentage of their budget. o Reedus — changing the name from budget to financials. o Change the way we label columns to get consistent information: Last Year Actuals Current FY Budget Next Year Projected Budget o Ross — this forms needs a lot of help. Seems like a United Way issue to start looking at. Review was stopped at the "financials" slide. Ross would like to revisit the feedback from HCDC at the November HCDC meeting. If they plan to move forward with same process, then there needs to be expectations for HCDC participation. Staff asked for specifics on what they want to ask HCDC at the November meeting. Subcommittee wants to meet one additional time before presenting final recommendations to HCDC. 11 /9/2023 Agenda Item #8 Aid to Agencies Application & Process Revision 1 Goal 6: Venue for Fund Allocation Update on discussion at last HCDC meeting 7 1 11 /9/2023 Goal 4: Rubric and Scoring 1. Ease of review and clarity of application content for HCDC a. Consider the ease of review for all proposed application changes (ideas) b. Consider anticipated variety of answers and whether they can be directly compared c. Consider length and HCDC and preference to continue full commission scoring 2. Assess how the scores are applied to funding decision making a. Staff review of rubric and recommendations for question weight and impact of zero scoring question. b. Provide scoring to each agency who applied 3. City Council involvement given history of recommendation rejection 3 Goal 3: Application Content Revisions 1. Continued Joint Funding Process -strong support for continuing a single app 2. Discuss New Funding Platform - UW agreement to evaluate 3. Application Questions a. Determine which questions are applicable b. Address Indicators: Outcomes and outputs assigned in the application. Are they relevant to all funders? c. Ensure reviewers get the info they need to score d. Make a recommendation to move unscored question to profile 4 E 11 /9/2023 General Information -Profile Agency Name Executive Director Board President Renuestor Phone Email Address Website Profile: Narratives Agency Mission Statement Number of Years in Operation Salaries a Benefits Updated Yearly Client Information: Provide a succinct, specific description of your primary target populations(s). Describe clients as a group in terms of their primary needs and strengths. What barriers to success do they face? If Agency serves a regional area, please provide % of overall clients that are Johnson County residents. Agency Collaborations: Please describe how Agency is collaborating with other service providers in the community to reduce costs, increase efficiency and improve services for consumers. Salaries/Benefits/Staffing: Is your organization experiencing staff turn over and/or difficulty filling staff positions?(some question about market salaries/minimum pay) 3 11 /9/2023 Portions of the Application not Applicable to Iowa City United Way Community Priority Selection Narrative questions: (Income, Education, Health) What specific need in the community is the Agency addressing. Describe the extent of the United Way Request for Funding #s need - including current local data with source Coralville Request for Funding #s information and the major factors in the Johnson County Request for Funding#s community contributing to the need. United Way Indicators Provide a description of services that will be provided Specific information is requested, not a general agency description 2b.Description for UW funding 2c. Description for Coralville funding 2d. Description forJohnson County funding Goal Iowa City Funding Request *If requesting for more than one program, complete this section for each program funding request Request for funding: $ Name of Program to be funded by Iowa City What percentage of the Program/Project benefits Iowa City residents Expense Amount Year 1 Year 2 Personnel Operating Other Total Goal 3 M 11 /9/2023 Iowa City Specific Narrative Description of the Program & Need to be met: Describe the program to be funded by Iowa City. Include the specific need in the community to be addressed. Describe the extent of the need - including current local data with source information and the major factors in the community contributing to the need. Tell us how you will use Iowa City funding for this program. (4000 characters) Program Accomplishments (You will use these metrics in quarterly progress reports) What are the desired outcomes for the Program/Project? How will you measure progress? Will you report on unduplicated individuals/households served or # services provided that could be duplicated? How many individuals served or services will How many individuals served or services will Client Info be provided for the program be provided with Iowa City funding? Goal 3 Racial Equity: Please explain how Agency promotes racial equity and inclusivity for historically oppressed and marginalized populations (including BIPOC, LGBTQ, immigrants/refugees, individuals with your clients and for staff. Client AMI Checkboxes 10 disabilities) through your services, for Goal 3 5 11 /9/2023 Financial Management Do you have a fee structure for services? If yes, please explain and describe services available for those without ability to pay. Describe how local funding received by your organization helped leverage other revenue in the last fiscal year. Identify and include specific grant/funding sources and amounts that were awarded by using local funding as match. Include the specific local funds used as match (United Way, Iowa City and/or Coralville). 11 Financials Revised version of form C Last Year Actuals This Year Budget Next Year Projected Budget Other Suggestions: o Comprehensive budget form training year 1 - offered subsequent years Goal 3 12 i. 11 /9/2023 Service Numbers & Demographics Form Revised Version of Form C Discuss merits and challenges of this form What do we do about agencies with no demographic info? Should a services number be asked so we can capture something on this form Should these numbers be program, agency wide, Johnson County only, etc? Scoring consistency is not possible right now 13 Attachments Audit, Review or EOY board approved financial report 14 11 /9/2023 Goal 1: Funding Allocation Principles 1. The rules 2. Review funding percentage of agencies 3. Minimum amounts and funding consistency goals 4. Intention and role of this funding to nonprofits 5. Standardized allocation that considers the philosophies of applicants on amount of funding they as for (ask for more or ask for what you think you can get) 15 Goal : Funding Priorities and Performance Assessment 1. Funding labels 2. Joint meetings, HCDC staff, NP execs, city staff to be briefed on CITY STEPS 3. Considering City Steps 4. Reconsider how historical allocations playa role in funding decision making iG 11 /9/2023 Goal 5: Commission and Community Education on Nonprofit Impact 1. Annual site visits from commissioners 2. HCDC to help communicate collective impact and economic benefit 3. Education to the city council on decision making and summarized report of the Impact of A2A funding. 17 E