HomeMy WebLinkAbout05.18.1998JOINT WATERLOO/CEDAR FALLS
COUNCIL WORK SESSION
May 18, 1998
5:00 p.m.
Council Chambers
Waterloo Members present: Mayor Rooff, Getty, Murphy, Jordan, Anders, Collier, Krizek.
Members absent: Mollenhoff.
Cedar Falls Members present: Mayor Stachovic, Murphy, Rider, Smith, Brown.
A HOME consortium program with Waterloo and Cedar Falls was discussed. The Omaha HUD
office has encouraged Waterloo to look into the possibility of forming a consortium. Waterloo
currently receives approximately $500,000 per year in HOME funds. Cedar Falls does not receive
HOME funds. HUD has determined that if the two cities were a consortium for FY99 we would
have received an additional $203,000. After the required contribution to a Community Housing
Development Organization and administration costs there would be approximately $150,000 for
the two cities to spend on projects. Each city will make its own decision about how to spend
their portion of the HOME funds, then the two plans would be combined and submitted as one.
One community must act as the lead agency for the consortium and preliminary discussions have
concluded that Waterloo should fill that role because we have experience with the HOME
program. The consortium will require additional administration and staff time. There is a 10
percent allowance for administration of the program. Fiscal Year 2000 would be the first year for
the consortium for a minimum of three years.
Mayor Rooff stated that other communities send a delegation to Washington each year to meet
with HUD representative and legislative leaders. Mayor Rooff suggested that Waterloo and
Cedar Falls consider sending ten or twelve representatives next year.
Phil Jones, a consultant hired by HUD, reviewed the consortium program. Mr. Jones stated that
this is an opportunity to bring more dollars into communities to help people have a nice place to
live plus it is a good capital investment and adds to the tax base. Mr. Jones stated that a
consortium is two or more local governments who agree to develop a joint community
development plan and receive federal HOME funds as a single entity. Each city decides what to
do with their funds. The consortium plan would not let Cedar Falls draw into Waterloo's
$500,000 HOME funding. The reason the amount of HOME funds increase is because the
formula is based on per capita.
Mr. Jones stated that the benefits of the consortium is: Additional funds come into the area.
Waterloo will receive more project dollars and administration dollars, and Cedar Falls will receive
project dollars. Each city retains control of the funds. Waterloo and Cedar Falls will need to
reach an agreement for a consortium by June 30, 1998, HUD will notify us by December, a
consortium plan would need to be submitted by April 1999 and we would receive the funds by
July 1, 1999.
Mr. Jones stated that the federal formula used for HOME funds is based on population, per
capita income, number of substandard rental units, and number of people living in rental housing.
Cedar Falls does not have the population to receive the HOME funds.
A written agreement between Waterloo and Cedar Falls is required. The contents of the
agreement include: the lead entity has to accept responsibility for the program, must agree to
undertake HOME activities, must further fair housing and no withdrawal for five years. The
allocation of funds is: 10 percent for administration; 15 percent for Operation Threshold (a
Community Housing Development Organization); 50 percent each for Waterloo and Cedar Falls.
Eligible activities include: homeowner rehabilitation, homebuyer programs, rental housing and
tenant based rental assistant. The obligations include: The lead entity is responsible for
compliance, each member must provide a 25 percent match for project funds it expends.
Joint Cedar Falls/Waterloo Work Session
May 18, 1998
Page 2
Monetary, recordkeeping and performance reporting match sources: cash, cash equivalent,
waived fees, taxes, donated land, property, labor, equipment, infrastructure, housing bond
proceeds, sweat equity, counseling and support service.
Councilperson now absent at 6:07 p.m.
Mayor Rooff stated that now is the time to build trust and look to the future to work together.
Mayor Stachovic questioned if 10 percent for administration would be enough, and Mayor Rooff
stated that Waterloo was willing to accept 10 percent for administration cost.
Moved by Getty, seconded by Krizek that the meeting be adjourned at 6:12 p.m. Ayes: Five.
Absent: Mollenhoff, Jordan. Motion carried.
Nancy Eckert
City Clerk