HomeMy WebLinkAboutFY26 LA2A Habitat ResponseNovember 22, 2024
FY26 Legacy Aid to Agencies
HCDC Question and Answer (Q&A) Session
Instructions
The Q&A session provides an opportunity for commissioners and staff to ask clarifying
questions about the applications submitted through United Way. Please provide written
responses to the questions below. Written responses must be received by City staff no
later than December 6, 2024. This process is intended to gather the information
required to accurately score submissions. Written responses can be directed to Brianna
Thul at bthul@iowa-city.org or dropped off at City Hall (410 E Washington Street).
All information related to this grant will be posted at www.icgov.org/grants. The Housing
and Community Development Commission will hold a meeting on January 27th, 2025,
at 6:30pm in City Hall to develop funding recommendations for City Council. This
meeting is open to the public and applicants are welcome to attend to hear the
conversation. The meeting will also be recorded and posted online for those unable to
attend.
Agency:
Iowa Valley Habitat for Humanity
Questions:
1. The agency selected 7 outcomes measures for FY24 in their previous joint
funding application. Data reported on this application shows that they only 2 of 7.
Please explain.
On the application for FY24, IVHFH selected multiple indicators for each of the
services/programs provided by the organization. For the FY26 application, the
wording of the application led staff to believe the indicator should be
organization-wide rather than broken down by program. As a result, staff only
selected two of the pre-selected indicators and added an additional that was
selected by IVHFH.
2. Applicant is requesting a 47% increase over FY25 funding allocation. What is the
rationale for the funding increase?
The cost of building housing has increased significantly as direct materials and
labor shortages have pushed the cost of building affordable housing higher. As
an example, IVHFH constructed a home in 2023 with an identical footprint, floor
plan, and location as one constructed in 2021. The direct costs to IVHFH were
23% higher for the home constructed in 2023. Direct inputs are not the only area
of increased costs as financing, insurance, and the expense to retain valuable
November 22, 2024
staff grew as well. IVHFH also experienced a pinch on the revenue side as
higher interest rates equate to less money for IVHFH at closing. In turn, IVHFH
must provide a greater financial subsidy each time a family is served.
IVHFH requests more funding for the next cycle so that it can keep up with the
economic forces that are creating even greater challenges to building homes for
low-income folks in our community.