HomeMy WebLinkAbout10-21-2024 Housing & Community Development Commission00 X] 11 R 3 Vk LOW Ed 9 Al iT4►I iTiI I RT t k VA "I A Ly J_ : KeWi 41 - XLT k I
COMMISSION (HCDC)
October 21, 2024
Regular Meeting — 6:30 PM
Emma J. Harvat Hall
410 E Washington Street (City Hall)
r_1Te_T47L_1T_11
1. Call to Order
2. Welcome New Members
The commission will welcome one new member, Daouda Balde. This item provides an
opportunity for new and existing commissioners to introduce themselves.
3. Consideration of Meeting Minutes: September 16, 2024
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. Review and Consider Recommendation to City Council on Approval of Substantial
Amendment #1 to the City's FY24 Annual Action Plan
The Annual Action Plan outlines proposed activities, project locations, budgets and the
scope of activities being funded with federal Community Development Block Grant (CDBG)
and HOME Investment Partnerships Program (HOME) funds for housing, jobs and services
for low -moderate income persons. The proposed amendment reallocates $310,000 of HOME
funding to The Housing Fellowship to acquire two affordable rental units for households with
income below 60% AMI. Funds were previously allocated to two projects that proceeded
without federal investment. The proposed amendment also programs $300,000 of
unanticipated CDBG program income towards the City's GreenState and Hills Downpayment
Assistance Program. The additional funding would assist up to 12 additional households
below 80% AMI with affordable homeownership.
A public comment period began October 3, 2024 and will run through November 4, 2024. A
public meeting is scheduled for November 4, 2024 where Council will consider formal
approval. Following Council approval, the amendment is submitted to HUD for review.
6. Overview of Next Steps for FY26 Legacy Aid to Agencies
The Joint Application is due October 15, 2024 at 5pm. Staff will provide commissioners with
an overview of next steps in the FY26 Legacy Aid to Agencies process.
7. Staff & Commission Updates
This item includes an opportunity for brief updates from staff and commissioners.
Commissioners shall not engage in discussion on updates.
8. Adjournment
If you will need disability -related accommodations to participate in this program or event, please contact Brianna Thul at
bthulCo)iowa-city.org or 319-356-5240. Early requests are strongly encouraged to allow sufficient time to meet your access needs.
III
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240-1826
(3 19) 3 5 6 - 5 000
(319) 3S6-5009 FAX
www.i(gov.ol,g
Housing and Community Development Commission
Meeting Packet Contents
October 21, 2024
Agenda Item #3
0 September 16, 2024 Draft HCDC Meeting Minutes
Agenda Item #5
0 Draft Substantial Amendment #1 - FY24 Annual Action Plan
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
SEPTEK8BER1Ei2024—G:30PK8
FORMAL MEETING
EK8K8AJ.HARVATHALL, CITY HALL
PRELIMINARY
MEMBERS PRESENT: Maryann Dennis, George K]varNa'Karol Krotz.K]nsnPatel, James
Pierce, Kyle Vogel
MEMBERS ABSENT: DauudaBu|do.HorocoBorgan.Denise Szeooei
STAFF PRESENT: Erika Kubk/.BhmnnaThu|
OTHERS PRESENT:
RECOMMENDATIONS TO CITY COUNCIL:
None.
CALL MEETING TO ORDER:
Vogel called the meeting toorder otG:3OPM.
WELCOME NEW MEMBERS:
DaoudaBa|dowas not present.
CONSIDERATION OF MEETING MINUTES: AUGUST 19,2024:
Patel moved toapprove the minutes ofAugust 1A.2O24. Dennis seconded the motion. Avote was taken
and the minutes were approved G-U.
PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA:
None.
CONSOLIDATED ANNUAL PERFORMANCE & EVALUATION REPORT (CAPER) AND
UPDATE ON CITY PROJECTS AND PROGRAMS:
Thul stated this is the annual report that they do at the end of every fiscal year, The City's fiscal year
starts inJuly and runs through June and this isfor fiscal year 24. This annual report goes toHUD and
explains are all the things that the City did with grant funds in the last year. There are o couple different
grant opportunities that come through this Commission — the CDBG and the HOME funds tie directly to
this CAPER. There are also some local grant funds that come to the commission through the Aid to
Agencies program, but those are not as relevant in this report. The focus is really on the federal funds
that HUD gives the City. The CAPER imalso related tothe Consolidated P|an, the five-year plan that
they've been working on. That is the plan that states what the priorities are and what they want to achieve
in that five-year time frame. Finally, there is the Action Plan which includes the specific projectsthat
HCDC recommends funding. The CAPER is the last step in that process and reports if they met the goals,
they making progress, etc. The CAPER iedue toHUD within Q0days ofthe end ofthe Cih/'afiscal year
so this typically comes to the Commission in September for review.
Thul noted the document is long and it's in a very specific HUD format so some of the tables aren't the
most user friendly. At the end of the report, there is a section called Appendix A where staff has added
tables tohelp explain what iabeing accomplished.
Housing and Community Development Commission
September 1G.2024
Page 2 of 5
Thu|next reviewed the impact ufthe federally funded activities inFY24. There was the new entrance ed
the Free Medical Clinic. Before this pnojeot, the agency was only able ho provide services edtheir base
level because they had an elevator that was not functional, and stairs to access the second floor. They
needed an accessible entrance on the second floor as there was no way to provide services up there.
They were able to use the CDBG funds at Free Medical Clinic to add an accessible entrance on the
second floor which really expanded some of the areas that they could provide services. The City also
provided down payment assistance to 12 households in the last fiscal year and over 2000 people were
assisted with public services funding. That includes the portion of the Legacy Aid to Agencies funding that
comes through the CDBG 15%. The rest of the Aid to Agencies funding comes from local sources. The
2000 beneficiaries would be only looking at the federal portion of that. 23 owner occupied units and one
renter occupied unit were rehabbed inthe last fiscal year. Acouple units were rehabbed and sold
through the City'eSouth District Program. That is a program where the City acquires duplex units, ueae
local funds to rehab them, and then uses federal HOME funds to provide down payment assistance to
income eligible buyers. Thu|also noted about 5O96nfthe beneficiaries receiving down payment
assistance through the various programs in FY24were B|POC households (Black, |ndigenoue, and
people of color). One of the goals of the down payment assistance programs is targeted towards trying to
close the racial homeowner gap in |ovvo City.
Other highlights from FY24 included positive community engagement in the consolidated planning
process. The City also passed the COBGtimeliness test with HUD inMay which isalways abig stn*asorJ
there are projects behind schedule. Commissioners are aware that staff occasionally bring things to the
Commission for review when there are projects that trigger the Unsuccessful and Delayed Projects Policy.
Meeting this test is a big deal, especially now with ARPA funds, CDBG-CV, and HOME -ARP. There are a
|o( of cities that are struggling with timely spending. It's neo||y important that they stay on track with
projects to remain in compliance. HUD has the ability to reduce the next grant allocation by the amount
that hasn't been spent. Iowa City was also awarded $3.75 million in PRO Housing funds in FY24. Kubly
added that there were only 20 cities in the country that were awarded and Iowa City was one of those top
20and received $3.75million. Thu|noted that's generated some interest insome ofthe other work the
City is doing related to affordable housing and Kubly has been busy giving presentations to different
groups nationally. Thul continued that the City received HUD approval of the HIOME-ARP Allocation Plan
which was a very long process that Sam Turnbull was able to navigate successfully. Part of that funding
will be allocated towards the DVIP shelter construction project that is underway. The City also secured
new community development software and started the implementation process, the original software is
from the 1AS0aand will bevery helpful once fully implemented.
Thul noted that there were also challenges during FY24. Staff capacity continues to be a challenge with
administering of all new and existing programs while also managing other projects like the consolidated
planning process for City Steps 2030, the five-year plan and things like the Aid to Agencies process. In
There was a subcommittee to review the Aid to Agencies process that formed in January 2023 and went
until April 2024 to recommend changes to the application and process. Following the subcommittee, staff
worked with the other joint funding entities including United Way, Johnson County, and other participating
cities to get that application altered through United Way. That was a long process to get where they are
today.
Dennis asked about the PRO Housing grant that the City received, does that include admin funds for the
City. Kubly confirmed it does, they can use 10% for that and are looking at adding hopefully a couple
positions.
Related to that, Thu| noted they are looking at increasing costs across the board. Construction, labor, the
cost ofinsurance 'all those things odd up and make it challenging to have projects that pencil out. It
takes adeeper federal subsidy tooffset costs.
Thu|continued with enupdate onCity Steps 2O30. Staff have been very busy working with aconsultant,
M & L from Pennsylvania, to get feedback from the community. They did a series of meetings, three
public meetings and seven or eight stakeholder sessions that brought in nonprofit leaders, people that
Housing and Community Development Commission
September 1G.2024
Page 3 of 5
work in economic development, housing providers, and all different sorts of perspectives to talk about
housing and community development needs inIowa City. Staff instill working through this process but
have gotten some really great participation so far. Outside of these meetings, they've also been one-on-
one interviews, the housing survey, and working towards a shelter survey of shelter residents to get their
perspective onthese issues.
Kubly added the timeline for the Consolidated Plan is they expect to have adraft by the end of the year,
ahead ofthe CDBGand HOME allocation cycle.
Kub|ypresented highlights from FY24using local funding. $64O.O0Uwas expended through the Aid to
Agencies programs, 21 LegaoyagenoieoandfourEmerging-thet'einadditiunhotheCDBGpub|io
services. Iowa City has a locally funded general rehab and improvement program, called GRIP, which is
enowner occupied rehab program that helped six households and the City gets about $200'000eonh
year for that. The City spent $70,000 on security deposit assistance and partnered with CommUnity with
that and helped 74households this year. $36.000was expended through the Healthy Homes program,
and that went tuimprove indoor air for 4Uhouseholds. Every year the City invests about $700.000in
affordable housing funds b7be administered through the Housing Trust Fund ofJohnson County, and one
of those projects that they funded was transitional housing for youth with UAY and the Housing
Fellowship.
Staff also wanted tohighlight the ARPAprojects, theCUyreneived$18miUioninARPAfundsandore
doing a housing stability pilot project with Shelter House. Seven households enrolled in risk mitigation and
129 records have been expunged at the expungement clinics. The City funded CommUnity's mobile crisis
outreach and they have an average of 26-minute response time and have responded to about 1500
mobile crisis calls. Another big project is inclusive economic development. The City gave a big grant to
Dream Center and they broke ground on the rehab of their facility on Southgate. The City funded utotal
ofsix inclusive economic development programs. Neighborhood Centers got capital improvement funds
through ARPA and are purchasing two buildings in the Towncrest neighborhood to expand their work in
the community. Just today, the City closed on three townhome units that will be owned and managed by
the |uvva City Housing Authority to provide affordable rental units. They also partnered with the University
of Iowa Labor Center in FY24 for a pre -apprenticeship program which helped 28 individuals. Finally, there
is the Child Care Wage Enhancement Program which increased wages at six childcare centers by $2 an
hour.
Krotz asked for more information regarding the Shelter House and the expungement of records. Kubly
explained they partnered with Iowa Legal Aid to get people's records cleared so that it doesn't affect their
job searches and ability torent.
Thu| stated the next step in this process is to bring the CAPER to HCDCfor review and any comments
before submitting to HUD. HUD has 45days to review following the submission.
Dennis asked about administering all of these programs mentioned - how many staff at the City works on
these? Kub|ygave a staffing overview. For grant administration it is Kubly, Thul and Sam Turnbull the
City's Grants Specialist. There is a part time staff who does down payment assistance and two and a half
staff that do the owner -occupied rehab programs like the South District program. Then all the property
management goes through the Housing Authority, but there is not a lot of staff for that either.
Vogel had a few questions, first on page 39 there's one of the properties that says the rental inspection
was in 2022 and it wasn't due again till 2026 and there's some mention that these two properties aren't on
the same schedule. He noted that's a really long period, four years, and just wanted to make sure that
was not atypo. Kub|ynoted that they are typically anannual ortwo-year schedule. Thu|will review and
correct before submitting. Vogel noted there's a section that talks about number of people assisted but
then that table doesn't actually have the number of people assisted it has activities listed. Thu|exp|oined
this report is related to Section 3. The goal of Section 3 is basically to provide job opportunities to people
that are low to moderate income. It's race and gender neutral and they track labor hours and report the
Housing and Community Development Commission
September 1G.2024
Page 4 of 5
activities and labor hours in the CAPER rather than the individual people assisted. If it is an activity that is
completed in the fiscal year it would be reported in the associated CAPER.
Vogel asked if Appendix B, which is really long and lists all the properties and the inspections. Are all of
those City owned properties? Thul explained these are all the federally assisted units that are not owned
by the City. The City doesn't often do any home rental projects directly and most often work with
subrecipients or nonprofit housing providers on projects. HUD asks for this information to make sure the
City is getting there for inspections and that things are meeting housing standards to make sure the units
are safe.
Vogel noted this report is nice and it is a way to see the tangible results of decisions this Commission has
made inthe past.
Thul stated the next step would be for the Commission to vote to approve the CAPER and then they'll
submit it to HUD.
Krotzmoved toapprove the CAPER report with the typo corrected. Pierce second the motion, a
vote was taken and bpassed 6-O.
Thul noted an update to the Legacy Aid to Agencies process. As mentioned earlier, they went through the
subcommittee process and then through the review with the joint funders. The application offically opened
September gth after HCDC reviewed the updated application at the last meeting. The application window
is September 9 through 5pm on October 15. After 5pm on October 15, Thul will be sharing those
applications with the Commission. There's usually about 20 applications to review and staff can share the
information in print orelectronically depending on your preference, just let her know. She also wanted to
share that United Way is hosting three training sessions for applicants which is positive. Iowa City will
participate in the first one with the other joint funders, and then United Way is also doing some technical
training on like how to fill complete the budget section and the technical parts of the software they use to
help applicants.
Krotz asked how that information regarding the training sessions will be conveyed to the applicants. Thu|
stated each of the joint funders has different criteria and applicants. United Way for example will do a
pnaaa release. For |uwo City' it's only certain agencies with Legacy status that are eligible to apply so staff
directly communicate that information to the agencies that are eligible and itiealso posted on the
webnita. The training sessions will be hosted on Zoom and United Way plans to record the session in
case anybody can't attend. Pierce asked about applicants in the past that felt like they didn't know how to
fill out the application. Thul responded that there are really two parts to that. The first is extra training on
the application changes which will be helpful and the second is that staff are making sure they are very
transparent with applicants about the scoring criteria that was approved by the HCDC. The scoring
criteria has been posted online and directly sent tothe applicants.
Vogel asked if anybody from the City attended the Iowa Housing Conference the first week in September.
Kubly replied that they did have two staff in their division attend and heard it was positive. Thul added that
she heard permanent supportive housing was afocal point.
Patel moved to adjourn, Dennis seconded the motion and a vote was taken and the motion passed 6-0.
4
Housing and Community Development Commission
September 16, 2024
Page 5 of 5
Housing and Community
Development Commission
Attendance Record 2023-2024
Name
Terms Exp.
7/20
9/21
10/19
11/16
3/21
4/18
5/16
6/13
8/19
9/16
Balde, Daouda
6/30/27
--
--
--
--
--
--
--
--
O/E
O/E
Dennis, Maryann
6/30/25
X
O/E
X
X
X
X
X
X
X
X
Kivarkis, George
6/30/27
--
Krotz, Karol
6/30/27
X
X
X
X
O/E
O/E
X
X
O/E
X
Vogel, Kyle
6/30/26
X
X
O/E
X
X
X
O/E
O/E
X
X
Patel, Kiran
6/30/26
X
X
O/E
X
O/E
O/E
X
X
X
X
Pierce, James
6/30/26
X
X
X
X
O/E
X
X
X
O/E
X
Szecsei, Denise
6/30/25
--
--
--
X
X
X
X
O/E
X
O/E
Borgen, Horacio
6/30/25
--
--
O/E
O/E
X
X
X
O/E
Resigned from Commission
Key:
X
= Present
0
= Absent
O/E
= Absent/Excused
---
= Vacant
Annual Action Plan
Substantial Amendment #1
October 3°2024
A. Reprogramming HOME Funds
In FY24.the City awarded $110'000 (HOME) to United Action for Youth (U/\Y)k}acquire and/or
rehab at least one rental Unit in |Ovv@ City to be utilized as transitional housing. Due b3the
CO[Dp|eXih/ of the applicable F8gU|8tiODS at the units identified and the required U[OefR]OO8. UAY
formed 8partnership with The Housing Fellowship [Oacquire 8property with non-federal
resources.
The same year, $200'00(HOMBwas awarded to The Housing Fellowship for 8rental
construction activity OOROO8|dGStreet. Due tOthe pject'S|OC2bOniO8hiStOhCdiSthCt'Ule
State HiSLO[iC P[BSerV@tiOO C)ffiC8 review process took longer than anticipated. This project
included a partnership with the Iowa City School District and provided the opportunity for
students [Dlearn various trades. TOmeet the deadlines Dfthe school year, The Housing
Fellowship ultimately identified other funding sources and the project vv8SCOnOp|8t8dvvithOOn-
f8d8[@| [8SOU[CeS.
In order to proceed with the original iDt8Di of expanding @fh}ndGb|8 [8n{@| housing in |Ovv3 Cdv.
staff propose shifting the funding for both Ofthe previously described projects tDTheHOUSiDg
Fellowship to acquire two additional rental units with $310,000 of HOME funding.
/\CCOndiD0 to the Citv'S Citizen Participation P|8D' a SUbSt8OU@| 8DleOd[OeOt is required to
change the use of federal funds from one eligible activity to another.
B. Programming Unanticipated CDBG Program Income
The City recently received @nunanticipated loan repayment OfC[)BGfunds that will bB
recorded 8Sprogram income. Both program income and regular entitlement grant funds are
subject to spending deadlines established by HUD. Staff propose allocating additional funding to
the Citv's ongoing Gne8DSLai8@Dd Hills [}OVVOpGyDl8Dt/\SSiSt@DQ8 Partnership Pn]g[@Dl.
F|eprOg[8Dlnling the funding in a timely manner towards an activity that will proceed on schedule
is nriUoo| to meet spending deadlines established by HUD. Failure to meet spending deadlines
may [eSU|i in noncompliance with HUD and @ [8dUCLiUO in 8ODU@| grant funds.
The City was awarded FY22and FY24funds for the G[88DGt@f8and Hills DOvvnp8yOn8Di
Assistance Partnership Program totaling about $43O.DUO.TOdate, about 7U%Ofthe funding
has been expended tOassist 14income eligible hO0RbUye[S.The City also collaborated with
|Dvv8 Valley ||8bi[8t for NUrD8ni[y OD six of the units sold through this pnDg[8nl. An additional
$3O8.00Oallocated tOthis program will assist UptO12additional income eligible hD08bUye[S.
/\CCDndiOg to the Citv'S Citizen Participation P|8m. @ substantial amendment i8required iOcarry
out 8project USiDgfUDdSfR}Dl@DyD[Og[@DlCOVe[8dbvChvSt8pSDDtD[8ViOUS|ydeSChbGdiO
ihe/V\P (including pnDg[@0 iOCO0e' [8i0bU[seDlgDtS. [8pGynleOt. [eC8DtU[eS. or reallocations
C. Public Comment and Approval Process
The public comment period of 30 days is scheduled to begin October 3, 2024 through
November 4, 2024. The Housing and Community Development Commission will review the
amendment 8|their October 21'2O24meeting and consider 8recommendation 10City Council.
The City Council will consider this recommendation ODNovember 4.2024.|fapproved, the
amendment will be submitted the U.S. Department of Housing and Urban Development.
Jurisdiction: City of Iowa City, Iowa
Contact Person
Jurisdiction Web Address:
Erika Kubly
http://www.icgov.org/actionplan
410 E. Washington Street
Iowa City, [A 52240
319.356.5121
Proposed Amendment
The proposed amendments include the following:
• Update Appendix B of the FY24 Annual Action Plan to be consistent with this
amendment.
• Update other text and appendices as needed to be consistent with this amendment.
Proposed Amendments to Appendix B
CDBG
HOME
Persons/ Households
Project
Planned activities
Award
Award
Facilities Assisted
Public Service Activities
Ad to Agencies - Neighborhood Centers of Johnson County
$
64,000
NA
2,460
Aid to Agencies - DVIP
$
60,000
NA
1,002
Public Facility Activities
Shelter House - Shelter Improvements
$
120,000
NA
950
Neighborhood and
Neighborhood Improvement Program (Curb Ramps)
Area Benefits
$
150,000
NA
300
Homeowner/Rental Housing
Comprehensive Rehabilitation
$
285,000
$ 90,000
22
Rehabilitation
The Housing Fellowship- Rental New CGFPstrLWAi04
$
-
$-2-00,000
-1
Iowa Valley Habitat for Humanity - Downpayment
Assistance
$
-
$ 80,000
2
City of Iowa City, GreenState, & Hills - Downpayment
Assistance
$
300,000
$300,000
24
Other Housing Activities
The Housing Fellowship - RenW Acquisition
-
$310,000
2
United-kation for-YoWh-- Acquskicoi-arw, -Rehab-of
Transitional Hou,.4ng
$
-
$ 1U) r000
I
Community Housing Development Organization Operations $ - $ 25,000 NA
Community Housing
Development Organization
The Housing Fellowship - Rental Rehab
Reserve Activities
NA
$ 78,000 1
Economic Development
Economic Development Program
$ 50,000
NA 2
Administration & Planning
CDBG Administration
$ 160,000
NA NA
HOME Administration
NA
$ 59,000 NA