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HomeMy WebLinkAbout2010 ,„ 774 Af-it MINUTES COMMUN ITY DEVELOPMENT BOARD MEETING December 21, 2010 The regular meeting Development Board was held in the City Council mh Ch. on ambers, 715, t Waterloo,the Community D p 4:00,Iowa, and called to order by Chairman Eric Johnson atp Mulberry Stree , December 21,2010. Members present: Mickye Johnson, Gary Rankin,Bob Reisinger and Eric Johnson. Noel Anderson, Community Planning& Members present: Rudy: Kenneth Com unitnDe elopm n Director; members;Mark Community Planning Manager ber Boyd. Also Development or;Jo Stevet, Community member Administrative Secretary; Geraldine Thomsberry,Boardoa member evelo ment Director; Schmitt and David Jones, Council Liaison D p Northey, elect,of itation Services; Ann Tyler Duda and Jason Guthrie,Iowa Development; John Rooff,Rooff Development; Realtor; and Tim Jamison,Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. es to the Chairman Jo hnson indicated Board packets were mailed out and asked for additions or c ang agenda. enda as mailed. d b Mickye Johnson and seconded by Bob Reisinger to approve the Ag It was move y Motion carried. INUTES FOR THE REGULAR MEETING ON e OVEMBERminutes forthe 16, 2010. B. APPROVAL OF THEM g It was moved by Gary Rankin and seconded by Bob Reisinger to approve t November 16,2010 meeting. Motion carried. C. OLD BUSINESS: Application,Round 2 and Round 3. 1. Update on State of Iowa,New Construction Unit Production k d fill Rudy Jon es reviewed the commitment for Round 1 in Summerland P Round incommes o commitment has been n Madison/Monroemcompleted ah and East 8thrs Strhaeets. t He stated Summer is issue has been infill discussed completeb and the developer s have started Round 2 in that area. The development on East 8 Street rnfi sites has been delayed due to comparables for the e ohm Ro°fdf.has anyupdate on his progress. extensively over the last few months and developer, under Round 1 and there are still Chairman Johnson indicated money was anlot�sdi uation tuo Rooff na head Development five units to be built. We are trying to bring raised John Rooff has a proposal to build units at the$122,000 price or Round l,w which is the December st and Rudy indicatedfm The deadly account with we were granted designsan nsioosed a couple months ago. noted taking received this into worda that with of we an extension through the end of MRayo�d 3. Rudy not is future funding proposals as we are now discussing la issues,we are in jeopardy of losing potential units to be built in future rounds. de y Mickye Johns on discussed the Rooff proposal being submitted and asked what is the timeline for completion so we don't lose the funds for these five units. Minutes December 21, 2010 Page 2 John Rooff reviewed his new submittal dated 12-16-10 for w plans to fit into the neighborhood and the problems with th Round 1 over 100 years old. ding Hed discussed the different Mr. Rooff stated that throughout this process buyers have been indicated he has good news that he signed an a appraisal process and comparables on units on the East 8tn agreement with Leila Granger to market, and sell homes and Madison sites, as well as the Lincoln School site. Mrwaiting. Mr. Rooff build neighborhoods and he has teamed with Ms. Granger to set ' provide scholarshipsneighborhoods for deserving stteamed in these an Rooffromdicated the idea is to seven ready a and asked dese forn the Board's approvalaside monies from ca home built to gfhis requests. Mr. Rooff indicated he currently has of his for Round 1 and Round 2. Leila Granger indicated they are very excited for this opportunity have been designed with multiple bathrooms and other amenities plansie The d pricing has ed beewith lowered and the eon the Easte years of affordability Waterloo. New ties fde years paymen forthese homeowners. Ms. Granger indicated the scholarshipr�provides a wonderful downpayment for the new community, program is also important so that we give back to the Bob Reisinger inquired where the seven buyers were at in the approval process, have offers been made, etc. Leila Granter indicated she has spoken recently orf the buyers they will qualify. She noted they would be making conta is againthe after lenders, and they believe hoolili days. Mickye Johnson asked when Mr. Rooff could break ground. John Rooff indicated once the property transfers have been made, he could have foundations placed as early as February. Chairman Johnson inquired about the issues in turning the property over. Noel Anderson indicated by State Code we must have a public hearingfor the can go to the Council on January 3rd and two weeks later hold the hearin sale of city of this housing development. property. We g The City Council is supportive Gary Rankin inquired about the reduced dollar value and what has char John Rooff indicated that Planning&Zoninghas as changed with the product. these properties, and this allows them to build in this area.dm they will be able to obtain tax credits on Noel Anderson indicated the tax credits mentioned are availa ble because this development is located in an Enterprise Zone area. Gary Rankin inquired about the status of the project by the May deadline. Rudy Jones indicated the properties must be built, sold and closed by May 3 st. scenario to the State as we anticipated starting the project this past fall. The units We e props this being osed are modular and do not require the same construction time frame as stick-built homes. prop John Rooff indicated it normally takes 120 days for construction, and stated he is to meet the May 31 st deadline. shooting for an April date Minutes December 21, 2010 Page 3 Rudy Jones stated he invited Jason Guthrie and Tyler Duda to present an alternate proposal with comparable development in the designated infill area. Mickye Johnson indicated if Mr. Rooff can move forward by the January 18th schedule with completion of this project in April,he is supportive of this project. Bob Reisinger indicated he is supportive of the Rooff Development and the pricing is right for the area, which will help the buyers tremendously. Chairman Johnson indicated the contract was awarded to Mr. Rooff, and the only questions would be if we would pull the funding due to the delays. Chairman noted that Mr. Rooff has built a number of houses on the east side and building in Summerland is completely different than building on infill sites. The Chairman also noted that Iowa Development has been a very good partner with the Board and we recognize this. Following discussion, it was the consensus of the Board to continue with the Rooff Development project under the recent proposal submitted for completion by mid-April 2011. Rudy Jones indicated Round 2 has 20 units committed, with 10 at the Summerland site and 10 at the Lincoln School site, which has been requested from the schools to be transferred to Rooff Development by the city. Environmental work will begin once the Round 1 commitment has been completed. Summerland has already started their work on Round 2. Chairman Johnson asked John Rooff what would be a reasonable expectation to begin Round 2? John Rooff indicated once the land is transferred from the city they need to get in and do planning to see what needs to be done with infrastructure. If we could transfer from the city in January, we could be ready for buyers as early as February. Noel Anderson indicated the school board took action to recommend the land for the city,but no further details are available at this time. Chairman Johnson indicated this matter should be revisited in July to see where we are at on Round 2. Mickye Johnson indicated, we as a Board must be good stewards of the funds and we should have a set deadline to revisit the award of funds if construction has not developed. July may be too late for this review on Round 2 and would not give another developer enough time to build. Mickye stated on Round 3 the state has pulled units and infrastructure from us if we don't meet the commitment, so we must proceed to consider alternatives. Further discussion continued on the development of the Lincoln site, obtaining right-of-way, infrastructure development and site planning. Bob Reisinger, inquired about infrastructure improvements and whether this is the developer's responsibility or do we have funds to assist them? Rudy Jones stated he wasn't sure. Round 2 has infrastructure funds available and the Lincoln site we requested a change from previous sites, so the state may allow us to move infrastructure dollars to the new Minutes December 21, 2010 Page 4 site, but this request has not been made to date. Much discussion continued. Tyler Duda from Iowa Development indicated they have looked at the Lincoln site, and noted they are not in direct competition with John Rooff, but his lack of productivity affects their progress as well. Mr. Duda indicated the past few months have dragged on and we have already lost five units in Round 3. He noted, Iowa Development can begin construction immediately on the infill lots and if Mr. Rooff does not meet the May deadline,perhaps the Lincoln School site should be offered to Iowa Development for Round 2. John Rooff confirmed that he has no lack of ability for the infill lots, they just need to get the right product in the right place. Rudy Jones indicated the Round 3 proposal sent in was for 17 units. Clarifications were requested by the state and one of the developers backed out of the project, reducing the number of units to 12. Discussion continued on conveying land to the developer and reassigning if a project does not go through. Also comments on platting individual lots. Rudy Jones indicated we need to set dates as part of the development agreement to make sure the projects get underway. Round 2 must be built, sold and closed by December 31, 2011. Gary Rankin indicated the Lincoln project must begin before July 1st to insure enough time for another developer if the Rooff project should fail. Gary noted platting and planning will take time to develop and should be ready by March 1st with foundations in the ground by July 1st John Rooff stated getting onto the site is the key, and planning should be completed by April 1st Discussion continued and it was the consensus of the Board that Round 2 from Rooff Development must have a firm commitment by April 1, 2011. Rudy Jones indicated Round 3's proposal was for 17 units. Twelve at the Summerland site and five with Skogman Homes at the Van Eaton site with units at $150,000 or less. The Skogman Home group backed out and at that point Rudy noted he contacted Iowa Development to see if they would consider filling in that gap with a comparable product. Tyler Duda reviewed their progress with the Summerland development, stating they are ready to close on another home in Round 2 before the end of December. Mr. Duda indicated they are ready and capable to utilize some of the dollars allocated for infill, if necessary. Chairman Johnson indicated the additional five units would be awarded to Iowa Development for infill at the Van Eaton site and various other locations. Jason Guthrie of Iowa Development explained the possibilities for additional development on the Van Eaton school site by adding a street through the site whereby ten units could be built instead of just five. We are reviewing this idea and planning the development. Rudy indicated the State requires that eight units must be at $180,000 and four units at$150,000 or less. • Minutes December 21, 2010 Page 5 Ten units at $150,000 or less should not be a problem with the State. This commitment gets us approved with the State and we can work out the fine details after that fact. Rudy clarified that we are only changing developers from Skogman Homes to Iowa Development at the same price points with the development being made at the Van Eaton School site. It was moved by Bob Reisinger and seconded by Mickye Johnson to approve the change in developers for the Round 3 New Construction proposal for the State, by awarding five additional units to Iowa Development for new construction at the Van Eaton site. On roll call: Mickye Johnson, Gary Rankin, Bob Reisinger and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Chairman Johnson indicated Round 1-2-3 is all underway, with the possibility of Round 4-5-6 in the future. The Chairman thanked both developers for their expertise and commitment to new housing units in the city and their service to the community. 2. Neighborhood Stabilization Program—Round 3. Rudy Jones indicated we had to provide some mapping on this Round 3 proposal. Unfortunately, we will not be forming a partnership with Habitat for Humanity on this round. We will be utilizing these funds for slum and blight removal and demolition in Census Tract 18. We have also been working with Church Row Neighborhood on identifying dilapidated structures. Our formal application will be ready in the next 30 days. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for November 2010. (Report attached.) It was moved by Mickye Johnson and seconded by Bob Reisinger to endorse the Rehabilitation Contracts for November 2010 as presented. Motion carried. Gary Rankin questioned the results of the rehabilitation evaluation forms completed by homeowners. He asked that when the ranking is below a 4 or 5,that staff check to see if the homeowner was dissatisfied with the programs,process or the work and report those findings to the Board along with the evaluation form. Mark Boesen indicated many times the issue is the time frame to complete the project. Most homeowners never put a comment on their forms. 2. FY2012 CDBG/HOME Subcommittee application review. Rudy Jones indicated that a meeting would be scheduled for the first week in January to review the applications received prior to the public hearing. Staff will contact members of the subcommittee when a date and time is set. Board members Bob Reisinger, Amber Boyd and Eric Johnson will serve in this capacity for FY2012. 3. New Board Member. Rudy Jones indicated that Council person David Jones is aware of this fact and Ms. Geraldine Thornsberry submitted an application for consideration and has been invited to attend the meeting today. We are proposing to submit Ms. Thornsberry's appointment to the City Council in January and request that she complete the term started by Anesa Kajtazovic. Minutes December 21, 2010 Page 6 E. DISCUSSION ITEMS: 1. Rehabilitation/Relocation Specialist Position. Rudy indicated a name has been proposed and forwarded to the City Council and was approved for the position. Matthew Chesmore will begin his duties January 3, 2011. Chairman Johnson extended appreciation from the Board for Greg Bagsby's years of service to the Community Development Department as Rehabilitation Specialist . Rudy extended Christmas greetings to all. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tem 0 C D w L a) C 0 CO ti M _ E3 0 0 0 0 U) O O O O O 0000 0000 0000 mot' !F ZN (fl (0C7) Z0~OCCOov. 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Zr Z r ZO Zr. r r V. ZO CLI o— r • �- r � E c F (n v) 0)i . .0'.- J J J Nd Q a aO Q w07 Q` cn H Ti C N N E W .) CY W I „,_ -I W c 0 Vp ,0 0 N ++ c 4- 0 OL 0 0 N 0 8 C) cB a coo 0 m 0 i m c L la 4. E o O o () 2 .r �0 tta co ` m t U O Y U 0.W y w 0 W O U = W N a� Y m s- -+ 0 0.) , z CM E L (`o E t a) a z m a) ; p z N.0 it c co c v 2 Q a) 3 C C c t6 c m > ots m o 0 `� pw as aa`i ` > To Q O CO L W co a) TO Z. =j•,L U — 0 m - c a) U O 'cc 0 � d a � o a`�i c E magi (-' mot o d CO .0 0 0 0 p `3 Z Q' Z U) 2 1- W Y co co C) E- LL -) J In 2 H W (3 I-- C G /- -/1 MINUTES COMMUNITY DEVELOPMENT BOARD MEETING November 16, 2010 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson at 4:00 p.m. on Tuesday, November 16, 2010. Members present: Kenneth Adderley, Amber Boyd,Anesa Kajtazovic, Gary Rankin, Bob Reisinger and Eric Johnson. Members absent: Mickye Johnson. Also present: Nancy Gulick, Community Development Coordinator; Steve Schmitt and David Jones, Council Liaison members; Ann Northey, Administrative Secretary; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. Chairman Johnson indicated Board packets were mailed out and asked for additions or changes to the agenda. It was moved by Bob Reisinger and seconded by Kenneth Adderley to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON OCTOBER 19,2010. It was moved by Gary Rankin and seconded by Bob Reisinger to approve the minutes for the October 19,2010 meeting. Motion carried. C. OLD BUSINESS: 1. Update on State of Iowa,New Construction Unit Production Application, Round 2 and Round 3. Chairman Johnson indicated the update in the Board packet gave a good summary of these projects. Nancy Gulick added there would be one closing this month in the Summerland Park Development for Round 2 and another one scheduled for December. Chairman Johnson inquired if an agreement had been reached for the Rooff Development projects under Round 1? Nancy Gulick responded that this contract might be under review again. David Jones, Council Liaison reported to the Board the discrepancies with appraised values in the area where John Rooff intends to build the five units of new construction. David Jones stated this has become a difficult issue and the request was pulled from the City Council agenda. Chairman Johnson indicated his main concern is that we don't want to lose this funding and asked what the Board could do to expedite construction. David Jones indicated this is definitely an appraisal issue that needs to be resolved. Minutes November 16, 2010 Page 2 Chairman Johnson asked staff about this matter. Nancy Gulick explained that she has not been involved in these discussions and would have to let Rudy provide an update. Further discussion continued on the land value of the properties, scaling back the construction and eliminating some features such as garages to allow for better appraisal comps in the designated area. The Chairman inquired if other funds could be combined with these to make the project feasible? Nancy Gulick responded that other cities have been using these funds for new developments in lieu of infill construction projects. She noted CDBG funding cannot be combined with IDED funds on this project. The Chairman asked if the City had funds that could be allocated for this project. Kenneth Adderley inquired about costs and how much has been expended. Nancy Gulick indicated the project allows for a 30% down payment assistance on homes that were valued at $150,000. This is what we were allocated from the state from Round 1, and the gap is 13%. Rooff Development has built two homes in the Madison/Monroe area, and we need a total of five houses built. Kenneth Adderley suggested the economic situation dictates a change in the overall philosophy. If we are going to lose the money and our potential buyers, this is a prevailing factor. Amber Boyd indicated the issue has always been building on the outskirts of town. Ms. Boyd asked what are the options to building on other infill sites on the East side? Kenneth Adderley inquired where are the properties within the community that are available for infill construction. Amber Boyd inquired if these funds were specified for these infill areas only? Nancy Gulick responded that our application stated the homes would be built specifically in the East 8tn Street/Lafayette Street and Madison/Monroe Street sites. Each designated area must go through an Environmental Review with the state to receive approval,prior to construction, so sites were identified prior to submitting an application. Gary Rankin indicated we have talked about the appraisal issues for some time. Before we apply for funding, or appropriate for funds, we should determine what the program will allow and whether appraisals will be comparable. Chairman Johnson inquired about the options. Nancy Gulick stated there are still two lots available on Madison/Monroe. Nancy indicated this was discussed just prior to Rudy's departure, but she didn't have details and would ask Rudy to email his comments to the Board upon his return from vacation. Chairman Johnson stated his preference is for Plan A to have this new construction project move forward as designed. Plan B would be infill construction anywhere in town and alternative C would be to lose the money. The Chairman noted, I trust Rudy is working on this and if that money is lost I will be very frustrated by this. Minutes November 16, 2010 Page 3 Kenneth Adderley asked to table any action on this matter until a report has been received from Rudy concerning the Rooff Development project or provide an alternative. Bob Reisinger inquired about the City of Cedar Falls, and whether they were going to subsidize the lots with infrastructure funds on their infill lots. Nancy Gulick indicated that Round 2 allows for an allocation of infrastructure funds. Chairman Johnson asked if the Round 1 funds could be reallocated and then use Round 2 funds instead for the Rooff Development. Nancy indicated she understood John Rooff might purchase one of the school sites for Round 2 funding. Chairman Johnson indicated he did not want to make any decisions without input from Rudy. We will ask Rudy for an email report on what is going on and hopefully any decision can wait until the next Board meeting. Kenneth Adderley moved to table action until a report was received from Rudy Jones, and initiate - if necessary, a special meeting to discuss this matter further. Motion carried. 2. Neighborhood Stabilization Program Update and Additional Funds. Nancy Gulick reported that Round 1 is moving along well with Habitat for Humanity and Round 3 is due within 30 days of receipt. 3. Round 2—Multi-Family Rental Housing Funds Update. Nancy Gulick indicated she contacted IDED again and their attorney is still reviewing our application. 4. Rehabilitation Program Update. Chairman Johnson indicated this item is to incorporate a loan component into our existing Rehabilitation Program. Nancy stated that Rudy reported this process would start in the New Year. 5. Select New Rehabilitation Target Area. Nancy Gulick reported that Danielle Rohret, Project Specialist, is preparing to work on the Housing Needs Assessment to determine which area needs the most assistance. Danielle is obtaining information from other cities to get started. Nancy stated the Planning Department does not have a current needs assessment and the last study was done for Black Hawk County in mid-1996. A fair housing study was completed a couple years ago. Chairman Johnson indicated once we get some data collected, we would have a better idea on which area should be targeted. Minutes November 16, 2010 Page 4 6. Rental Rehabilitation Requests for Proposals (RFP) Rath Brownfields Area. Nancy confirmed from Rudy that this program is still in the works. Nancy reported there are some EDI funds be from the Brownfields Area that could be utilized for Rental Rehabilitation activities. Bob Reisinger indicated he was at a meeting with some Church Row neighborhood residents and they are looking for rental rehabilitation funding to improve their neighborhood. Nancy reminded the Board that our application process is open until December 30, 2010 and perhaps they should get an application turned in for assistance. Gary Rankin commented that when using old school properties for these developments, either the city or the developer should decide which sites pencil out and this may help us get ahead of the curve on these properties. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for October 2010. (Report attached.) It was moved by Kenneth Adderley and seconded by Gary Rankin to endorse the Rehabilitation Contracts for October 2010 as presented. Motion carried. 2. Set Board Meeting dates for 2011. Chairman Johnson indicated the Board meeting schedule for 2011 continues with the meetings being held on the 3rd Tuesday of the month,with the exception of January. The January date is moved up one week due to the Martin Luther King Holiday and the City Council meeting that evening. It was moved by Kenneth Adderley and seconded by Anesa Kajtazovic to approve the Board meeting dates for 2011. Motion carried. 3. Select Board Subcommittee for FY2012 CDBG & HOME Funding Cycle. Chairman Johnson indicated this is a three-person subcommittee selected to review all the applications for CDBG and HOME funds. Approximately two initial meetings are scheduled to review applications. Chairman Johnson indicated we would like to see some of the new Board members participate. Bob Reisinger, Amber Boyd and Eric Johnson will serve in this capacity for FY2012. E. DISCUSSION ITEMS: 1. Revise deadline for FY2012 Application Process. Chairman Johnson indicated the application deadline would be December 30, 2010, due to the fact city offices will be closed on December 31, 2010 to observe the New Year's holiday. 2. Rehabilitation Specialist Retirement. Nancy reported the Mayor has signed off on the hiring process. We will be interviewing applicants for the position from the certified list. Chairman Johnson acknowledged that this would be Mesa Kajtazovic's last Board meeting. The Chairman thanked Anesa for serving in this capacity. The Chairman also extended best wishes for her new position at the state house. Minutes November 16, 2010 Page 5 Other Board members also complimented Anesa on her achievement. Anesa Kajtazovic expressed her thanks for the experience of serving on the Board. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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Jones, Community Development Director; Nancy Gulick, Community Development Coordinator; Noel Anderson, Community Planning& Development Director; Quentin Hart, Council Liaison; Ann Northey, Administrative Secretary; Jason Guthrie and Tyler Duda, Iowa Contractor Services - Developer; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. Chairman Johnson indicated Board packets were mailed out and asked for additions or changes to the agenda. It was moved by Mickye Johnson and seconded by Bob Reisinger to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON SEPTEMBER 21,2010. It was moved by Bob Reisinger and seconded by Mickye Johnson to approve the minutes for the September 21, 2010 meeting. Motion carried. C. OLD BUSINESS: 1. Update on State of Iowa, New Construction Unit Production Application,Round 1, Round 2 and Round 3. Rudy Jones reviewed the commitment of funding from Iowa Department of Economic Development (IDED)to build 22 units of new construction, utilizing the services of two developers. 15 units at Summerland Park have been constructed and sold. Seven units were committed to the Madison/Monroe/ Lafayette/ Sycamore sites, of which two have been built and one sold. Rudy stated we will need to request an extension for the John Rooff properties as they will not be completed by the December 31st deadline. The city is ready to transfer the Lafayette Street properties to Mr. Rooff. Rudy noted there will be additional lots available from some of the school sites being sold which Mr. Rooff may utilize for Round 2. Round 2 from the State allows for down payment assistance on 20 units of new construction and noted Iowa Contractor Services has already started two new units in the Summerland area with Round 2. Mickye Johnson asked why would we give additional funding from Round 2 to a developer who is not performing. Jason Guthrie and Tyler Duda of Iowa Contractor Services indicated they would be able to utilize the funds allocated for the Rooff projects in order to commit and use the balance of Round 1 funding so there would be no need to file an extention. They asked if it was possible to tap into those funds before they were too far into Round 2. Minutes October 19, 2010 Page 2 Chairman Johnson indicated that Iowa Contractor Services has a track record for doing a great job with their new construction project, but this does not compare to building new homes on Madison and Monroe or the Lafayette areas. Bob Reisinger indicated we cannot abandon the areas we are trying to build up. Mickye Johnson, indicated if we are in danger of losing the funds,this may be an option. Chairman Johnson inquired if we reallocated Round 1 funds to Iowa Contractor Services, is there still funds in Round 2 and 3. Rudy reviewed the allocations and indicated he is more comfortable now with the Rooff project, as they are ready to transfer title to the properties in question. Round 2 is another scenario. Rudy noted 10 units are being committed to Iowa Contractor Services from Round 2 and two of the 10 are sold, and they are just beginning to advertise. We are ahead of the scheduled performance. New employees are being hired and their subs are also hiring new employees. The school sites need to be demolished and the city is trying to work on a property disposition program through the planning & zoning office. Rudy stated Round 1 is complete with Iowa Contractor Services and they are into Round 2. We are requesting an extension from the State for Rooff to finish his commitment under Round 1. Rudy noted John Rooff is planning to obtain some properties from the school board and will move his commitment for Round 2 to the Lincoln School site for the 10 units he had committed. Round 3 the original deadline for proposals was October 15 and we were granted an extention to carry us through November 15. Rudy indicated he would like to meet with the subcommittee as soon as possible to discuss three proposals. Iowa Contractor Services is requesting the entire allocation of approximately $880,000. Rooff Development submitted a proposal for 10 houses and a new developer Skogman Homes submitted a proposal to build a number of homes throughout the community. Rudy indicated he strongly recommends that the Board consider awarding half of those units to Iowa Contractor Services as they are prudent, diligent and productive in meeting their obligations. Mickye Johnson indicated the subcommittee should review these recommendation and report back to the Board. Chairman Johnson stated that half of the funds to Iowa Development sounds like a good plan,however he would like to see them move into other areas of the city. Allocations to Rooff at this point in time were questioned since he hasn't completed Round 1 and is trying to get going on Round 2. It seems he has enough in the pipeline and we shouldn't allocate more at this time. The Chairman noted Skogman has a good reputation and this should be reviewed to see how they can perform and he suggested the subcommittee work through this. Rudy stated proposals must be in to the state by November 15. The subcommittee needs to meet as soon as possible and we need to submit our recommendation to the City Council and get this to the state by early November. • Minutes October 19, 2010 Page 3 Discussion continued on the old subcommittee members, who were Gary Rankin, Bernie Stroh and Mickye Johnson. Following discussion, Chairman Johnson indicated Gary Rankin, Mickye Johnson and Bob Reisinger will comprise the new subcommittee. Chairman Johnson thanked the owners of Iowa Contractor Services for their commitment to new construction and indicated they would be hearing from the Board concerning Round 3 awards. 2. Neighborhood Stabilization Program Update and Additional Funds. Rudy Jones indicated we now have a 100%obligation of Round 1 NSP funds. Ten units are being impacted with either rehabilitation or new construction. Round 2 - We did not receive any funds. Round 3 we are beginning dialogue with Linda Morgan of Habitat for Humanity to meet the low-moderate income requirements of these funds. Chairman Johnson inquired if this item needs to remain on the agenda. Kenneth Adderley stated unless something major has taken place, perhaps it isn't necessary to remain on the agenda. 3. Round 2—Multi-Family Rental Housing Funds Update. Rudy Jones indicated two developers submitted applications. IDED legal staff are still reviewing the conflict of interest waiver for the Stroh brothers application and we expect a response any day. Rudy Jones stated we have word that Round 3 is now open for consideration. We will process this program application in the next couple weeks. There are some changes for Round 3. For example an additional commitment of funds from the City is required. 4. Rehabilitation Program Update. Rudy Jones indicated he met with one of the local bankers to discuss the forgivable loan program for insight and we need additional input from the subcommittee into this process. The Subcommittee will report at the next meeting. 5. Select New Rehabilitation Target Area. Rudy indicated allocated resources for the current Rath Brownfields area will be expended over the next year and a half We are now cleaning up the core area of our new construction sites and this is for the Board to ponder to select a new area. Chairman Johnson asked if we had a study of needs for the city. Rudy stated it has been 3 years since we had a housing needs survey. Staff has identified some potential sites to consider. Kenneth Adderley asked for examples of which sites are being considered. Rudy Jones stated windshield surveys, types of needs, dilapidated housing and other variables usually determine the area we target. Kenneth Adderley stated until we have a study performed we cannot determine which area needs the most help. Minutes October 19, 2010 Page 4 Chairman Johnson indicated we should review to make sure this hasn't already been documented. Rudy indicated he would review the most recent study to determine suggested areas. 6. Rental Rehabilitation Requests for Proposals (RFP) Rath Brownfields Area. Rudy indicated we will attempt to put this together,but the extensive workload has kept staff from initiating this effort. Existing funds remain in Economic Development Initiative funds and may be lost if they are not used. Chairman Johnson inquired if we can we hire an independent contractor to take over this program. Rudy stated we hope to get something out by the next meeting, as we have some sample documents to start from. Chairman Johnson indicated sometimes there isn't enough time to do these things in house. Rudy stated there is interest in this program and we hope to get it off the ground. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for September 2010. (Report attached.) It was moved by Mickye Johnson and seconded by Bob Reisinger to endorse the Rehabilitation Contracts for September 2010 as presented. Motion carried. E. DISCUSSION ITEMS: 1. Proposed schedule for 2012 Application Process. Chairman Johnson indicated this is our proposed schedule for reviewing applications for the CDBG and HOME program activities for Fiscal Year 2012. It was moved by Mickye Johnson and seconded by Kenneth Adderley to approve the Consolidated Plan schedule for FY2012 as presented. Motion carried. 2. Rehabilitation Specialist Retirement. Chairman Johnson indicated that Greg Bagsby, Rehabilitation Specialist has given notice of his retirement on December 31, 2010. Rudy Jones indicated that he has notified the Mayor and Human Resources Department in hopes of pursuing applicants that are currently on the Civil Service list for Rehabilitation/Relocation Specialist,to conduct interviews. We are moving out of the flood activities and quickly getting back into the rehabilitation/lead activities workload. Noel Anderson gave an update on work at the Chamberlain site, noting this should be finalized within the next couple of weeks. Minutes October 19, 2010 Page 5 Nancy Gulick reminded Board members of the open house for Common Bond properties and indicated she would email the information to them. F. 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Members absent: Kenneth Adderley, Gary Rankin and Eric Johnson. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Steve Schmitt and David Jones, Council Liaison; Ann Northey, Administrative Secretary; John Rooff, Developer; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. Acting Chairman Johnson indicated Board packets were mailed out and asked for additions or changes to the agenda. It was moved by Bob Reisinger and seconded by Amber Boyd to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON AUGUST 17,2010. It was moved by Bob Reisinger and seconded by Anesa Kajtazovic to approve the minutes for the August 17,2010 meeting. Motion carried. C. PUBLIC HEARING: Citizen Input on the FY2010 Consolidated Annual Performance and Evaluation Report. (CAPER) It was moved by Bob Reisinger and seconded by Anesa Kajtazovic to receive and place on file the affidavit for proof of publication for the Notice of Public Hearing as published in the Waterloo Courier on Sunday,August 29,2010. Motion carried. It was moved by Bob Reisinger and seconded by Amber Boyd to open the public hearing. Motion carried. Acting Chairman Johnson requested additional comments from staff or Board members. No comments were received from the public. It was moved by Bob Reisinger and seconded by Amber Boyd to close the public hearing. Motion carried. It was moved by Bob Reisinger and seconded by Amber Boyd to transmit the FY2010 Consolidated Annual Performance and Evaluation Report to the City Council for review and forward the final document to HUD before September 30,2010. Motion carried. Minutes September 21, 2010 Page 2 D. OLD BUSINESS: 1. Update on State of Iowa, New Construction Unit Production Application, Round 1,Round 2 and Round 3. Rudy Jones reviewed the commitment of funding from Iowa Department of Economic Development (IDED)to build 22 units of new construction, utilizing the services of two developers. The commitment was to build 15 units at Summerland Park and five committed to the Madison/Monroe/Lafayette/ Sycamore site. The Summerland developer has completed their 15 units and anticipate starting Round 2 any day. Rudy noted John Rooff will comment on his progress with Round 1. Round 2 from the State allows for down payment assistance on 20 units of new construction. Iowa Contractor Services is preparing to begin this second round. Rudy indicated an upcoming meeting will determine the strategy for marketing and advertising the next few rounds of funding through IDED. Round 3,the deadline for submitting proposals was October 15. We heard from the State and an extension has been granted to give developers additional time to submit their proposals by November 15. We meet with developers shortly to discuss the requirements of these additional rounds. Rudy explained the stipulations of 25% down payment subsidy, with half of the units priced at$150,000 or less and half meeting the 80%LMI criteria. We have aggressively been trying to find available lots and parcels for development. Acting Chairman Mickye Johnson inquired if we have enough developers to meet the requirements for Round 4 and Round 5. Rudy Jones indicated Round 4 funding would begin in the Spring of 2011 and Round 5 in the Fall 2011 and again, Round 3 proposals will be due mid-November 2010. Rudy Jones indicated the deadline for Round 1 —New Construction is scheduled for December 31, 2010. Rudy noted John Rooff will provide an update on his progress in Round 1 so we can respond to the State. John Rooff explained delays in determining which lots he could build on in Waterloo and noted that 15 homes were built and sales closed in the past year in the Cedar Valley. Mr. Rooff explained his building limitations due to required demolition, lot transfers and difficulty in meeting comps at$120,000 in the areas designated. Mr.Rooff challenged the Board leadership to work with appraisers on the comp issues to build homes on the East side of Waterloo. Mr. Rooff also questioned expectations of the city on various lots,whether sidewalks and alleys would be required on these properties. He stated they are ready to build, once these issues are resolved,noting he is working with All American Homes and together they can build 100 homes a year. Acting Chairman Johnson indicated the greatest challenge right now appears to be the lots and location. John Rooff confirmed the sites that were ready to build,but again,the comps are of concern. He suggested appraisers might be able to use the downtown lofts as comps. Mr. Rooff indicated there are interested buyers who would like to reside in this area. Housing along the river will be appealing to many people. Acting Chairman Johnson inquired if comps can be adjusted to make these projects work. Minutes September 21, 2010 Page 3 Bob Reisinger spoke about the appraisal process and how comparable sales are determined. When you pull the whole area together such as Madison/Monroe and go by the number of sales or resales, it averages out to about $85,000 to $95,000. He noted when you bring in a brand new$120,000 structure the appraisers have difficulty finding comparable sales close to that neighborhood. Mr. Reisinger discussed the lending history in Waterloo/Cedar Falls whereby everything was handled locally. Now we are into a global / national market where funds are lent out elsewhere and this demands a tighter scrutiny of the loans. The homes built by Mr. Rooff are worth the money, but somehow we have to raise the comps. Amber Boyd inquired if the Highland neighborhood was used for the comps on the Madison/Monroe homes? John Rooff indicated the Highland neighborhood was used and one of his homes went for $130,000 because it had a finished basement. Two others were at$118,000/$119,000 but they were subsidized by the Waterloo Housing Authority. Others sold in that area without a garage were between $100,000 and $120,000. Mr. Rooff noted he can build and make it work, but HUD is tightening their screws on the applications and saying buyers need a higher credit score. Many people are paying more for rent than what they would pay for principal and interest on homes like these. Mr. Rooff reviewed activities in Cedar Falls and with all the funds beginning to flow with Rounds 3-4-5,we need to catch up or the East side won't get the homes built that they should. Mr. Rooff stated no one wants to build homes in the price range he is building them. Many families are living in terrible conditions in rental units that could be homeowners. Bob Reisinger suggested a meeting be scheduled with the appraisers to have them explain their methods and determine how we can make this work for the community. Other developers will also have the same difficulty. Rudy Jones inquired if it was necessary to build the homes at $120,000 if they are not comparable to the area. As an alternate, we may need to consider less of a home if we cannot bring the comps up. Bob Reisinger indicated he toured the neighborhoods that we are working in and there are tremendous opportunities for development. The Board really needs to know who is our customer, do we really need double garages. We may need to go back to similar homes built in the 70's and 80's whereby the house was built with a driveway, but not necessarily a garage. These are things as a Board we may need to discuss with the lenders and appraisers to work this out. Rudy Jones indicated to John Rooff that we have a deadline working against us. Land at the East 8th Street site is ready and available, but the transfer has not been made until we are certain the development is going to take place. We have been informed that five units are proposed to be built on this site. Rudy noted concerning the comps, he could get someone in to discuss that, but that will put us a month further behind on the commitment. Bob Reisinger noted all the homes built in the Madison/Monroe area did sell and they are there as comparable sales, even though they are not quite at $120,000. Rudy Jones indicated to John Rooff that the Board has tried not to impose on your development, and you may configure and develop the Lafayette/Sycamore site as you see fit, whether or not it needs an alley, etc. John Rooff indicated that he was proposing two story homes in that area. He noted they could build down the homes but he didn't think that was what the Board was looking for on the edge of the riverfront. Minutes September 21, 2010 Page 4 Acting Chairman Johnson indicated we are facing several dilemmas. First,to be able to build the houses and sell them at $120,000. We need to do something to get the comps up in the area. Round 1 and Round 2 are in process and we need to use those resources and build the homes to move into Round 3. How do we want that area to look in 10-30 years, do we really want to build down and lower the value of that community in order to meet the market and comps in the area. John Rooff indicated he can build 25-30 homes a year and they have the resources and ability to do this. He noted five homes could be finished by the end of this year, it isn't that difficult, but it is if you don't have buyers that can qualify to get the appraisal on the house. Acting Chairman Johnson indicated it is a good idea to meet with appraisers and realtors to get them involved. However,the problem now is our deadline to close out Round 1. John Rooff indicated everything is in place,but he needs to know what requirements the city will place on the development in the Lafayette Street area. We should be talking about this with Planning and Zoning or the City Council and get moving. Mr. Rooff explained he spent thousands of dollars at Madison and Monroe because of an alley, sidewalks,trees, etc., costs which are not typical on lots such as Summerland. He stated they can build two more houses at Madison/Monroe with additional ones, once the old school building comes down. Further discussion continued on the development requirements for the new construction homes concerning garages and parking. Acting Chairman Johnson indicated we are moving forward with Round 1, 2 and 3. Bob Reisinger questioned who determines the requirements for sidewalks and alleys? Rudy Jones indicated John Rooff knows what will be provided in the Lafayette Street area and he already owned the property at Madison/Monroe. It is the developer's responsibility to resolve these things with Planning and Zoning or the Building Department. We do not dictate what is required. Acting Chairman Johnson stated, Mr. Rooff has indicated he will be able to build the homes required in Round 1. Moving to the additional rounds of funding, lets make sure the developer knows what we expect them to build. Rudy Jones indicated Round 3 is the next round of funding with the initial deadline of October 15th that has been extended to November 15, 2010. 2. Neighborhood Stabilization Program Update and Additional Funds. Rudy Jones indicated we now have a 100%obligation of these funds. Ten units are being impacted with rehabilitation or new construction. We have heard a third round of NSP funds will be forthcoming. We entertain a continued partnership with Linda Morgan of Habitat for Humanity to meet the low- moderate income requirements of these funds. Rudy noted this program is going extremely well. Acting Chairman Johnson inquired about the time commitment. Rudy Jones stated the actual execution of this program is through 2013, however, we will deplete the funds Minutes September 21, 2010 Page 5 well in advance of this deadline. Nancy Gulick stated six families are already committed out of the 10 units. Rudy Jones directed the Board's attention to a map showing the location of the NSP projects. He noted we try to cluster these projects to impact the neighborhood. 3. Round 2—Multi-Family Rental Housing Funds Update. Rudy Jones indicated two developers submitted applications. Tentatively, the IDED legal staff has not determined the outcome of the conflict of interest waiver for the Stroh brothers application. Acting Chairman Johnson noted with all the funding sources coming to us and time commitments on these programs,we as a Board have a challenge to see that these resources are being utilized. Rudy Jones stated we are being very aggressive on program oversight and will keep the Board informed of our progress. 4. Rehabilitation Program Update. Rudy Jones indicated we are close to finalizing the first flood recovery efforts and moving back into our lead grant rehabilitation projects. Discussion continued on the size of the Rehabilitation Waiting List, stating the list stretches out for 7-10 years. Rudy explained the Rehabilitation Program, Emergency Repairs, Roof Repairs are being targeted in various areas and explained all the combined funding resources. We continue to prioritize funds to make an impact in these areas. Rudy indicated a tour could be scheduled to give you some ideas of the progress we are making. E. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for August 2010. (Report attached.) Rudy Jones indicated the new rehabilitation/relocation specialist would soon be fully certified to engage in some of the lead abatement activities on our rehabilitation contracts. It was moved by Bob Reisinger and seconded by Anesa Kajtazovic to endorse the Rehabilitation Contracts for August 2010 as presented. Motion carried. Rudy Jones indicated looking back on Item D.4 it was an old item of business,to add a loan component to the rehabilitation program. Rudy indicated a meeting has been scheduled with a couple financial folks to help us understand the loan process. We will provide an update to the subcommittee for review. 2. Select New Rehabilitation Target Area. Acting Chairman Johnson indicated we have been targeting rehabilitation efforts in the Rath Brownfields area for a number of years. It is time to move on to a new neighborhood, however, we would phase out our efforts over a one-two year period. Rudy Jones stated target areas were selected in the past based upon the housing stock, slum and blight, windshield surveys and need. There are areas in the city that fit this criteria and we want the Board aware that it is time to select another target area. Minutes September 21, 2010 Page 6 Acting Chairman Johnson inquired if the staff would present their recommendations at the next meeting. Rudy Jones stated this could be done. 3. Rental Rehabilitation Request for Proposals (RFP) Rath Brownfields Area. Rudy Jones indicated additional activities in the Rath Brownfields Area provides funds for rental rehabilitation repairs. We will prepare RFP's for this program. F. DISCUSSION ITEMS: 1. Project Specialist Position. Rudy Jones indicated Civil Service has certified a list of potential candidates. We have an excellent candidate to recommend to the City Council within the next week. This will provide another excellent staff person to work with these programs. The primary responsibility of this position will be to handle the State Historic Preservation activity, Environmental Reviews,regulatory administrative requirements and other responsibilities. 2. Cedar Valley Coalition—Washington, D.C. Rudy Jones indicated each year city staff and others community leaders travel to Washington, D.C. to meet with legislators to review our community projects and initiatives. If the Board or Council has any special projects to complement our current programs,this is an opportunity to present them, and we welcome those ideas. Acting Chairman Johnson inquired if the comparable sales issue would be something to bring before this group? Rudy Jones indicated this may be out of that realm, but stated he liked Bob Reisinger's suggestion of getting the appraiser group together to discuss this with our subcommittee or full Board at some point. Rudy stated he made note of this for our next agenda. Bob Reisinger stated HUD has really tightened up their appraisal process and appraisers are not going to give you extra dollars that aren't there. This is understood, but appraisers are not going to lose their license over this. Mr. Reisinger stated, if we can determine our buyers and what they need in a home, we may be able to build homes that can have garages added later to lower the cost. Several subdivisions were established that way. Acting Chairman Johnson stated other cities may have this same situation and how are they dealing with it. We may need to seek wisdom from HUD to upgrade our communities. 2. Section 3 Overview. Rudy Jones indicated a recent conference dealt with Section 3,which is an economic employment stimulus where funds are committed to a particular area and economic employment opportunities become available. HUD is putting greater emphasis on this criteria and we need to give this more attention with the funds we are distributing. 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'C EQ , w - C (0 .;E O ty a) C O E < N .cc)- _ (0 O E co ca O d 40 d a) .- O a) N .0 O Q IX z - Y < F- W z I— m w 2 H LU O 2 I- LL 0 J —, Y H W 0 -) H If- MINUTES COMMUNITY DEVELOPMENT BOARD MEETING August 17, 2010 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson at 4:00 p.m. on Tuesday, August 17, 2010. Members present: Kenneth Adderley, Jim Carstensen, Mickye Johnson,Anesa Kajtazovic, Gary Rankin, Bob Reisinger and Eric Johnson. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Steve Schmitt, Council Liaison; Amber Boyd, new Board member; and Ann Northey, Administrative Secretary. A. APPROVAL OF THE AGENDA. Chairman Johnson indicated Board packets were mailed out and asked for additions or changes to the agenda. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the Agenda as mailed. Motion carried. B. INTRODUCTION OF NEW BOARD MEMBERS. Chairman Johnson welcomed new board members Bob Reisinger and Amber Boyd. The Chairman asked all present to introduce themselves. C. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JULY 20,2010. It was moved by Jim Carstensen and seconded by Gary Rankin to approve the minutes for the July 20,2010 meeting. Motion carried. D. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application,Round 1 and Round 2. Rudy Jones reviewed the commitment of funding from Iowa Department of Economic Development (IDED)to build 22 units of new construction,utilizing the services of two developers. The commitment was to build 15 units at Summerland Park of which 13 have been completed. John Rooff has committed to build seven units in the Madison/Monroe and Lafayette/Sycamore Street areas. Summerland has 13 units built with two more under construction. Rudy indicated he has met extensively with John Rooff on his commitment to begin building before the state's deadline for the project, which is the end of December 2010. Mickye Johnson expressed concern over the short amount of time left for John Rooff to meet his obligations. Rudy Jones explained we only have a four-month window before the deadline and this has been discussed with both developers. The Summerland developers indicated they would utilize the available dollars, if it comes to that point. Minutes August 17, 2010 Page 2 Mickye Johnson inquired if there is a specific amount of time set for John Rooff so we can move forward with another developer before December 31st? Rudy Jones indicated this would be part of the discussion with the developer and representatives from the State's Department of Economic Development, however no meeting has been scheduled as yet. The timeframe for John Rooff's projects entailed having tangible progress by September 1st. Jim Carstensen inquired if we must go to Plan B, would the Summerland developer be able to step in and utilize these funds. Rudy Jones indicated Jason Guthrie,the developer would be willing to take this on by virtue of how the State outlined the project. Jason Guthrie is open to bid, whether the location is at Summerland or elsewhere. Jim Carstensen expressed his desire to see some new construction going up on the East Side of Waterloo. Chairman Johnson asked for clarification on the deadline. Rudy Jones indicated the units must be built and sold by December 31, 2010. Gary Rankin asked about the progress of the Rooff project. Rudy Jones indicated they have not been started. Gary Rankin indicated this is obviously not going to happen as there are only 90 days for completion. Rudy Jones indicated he is prepared to initiate a phone conversation with the State for lack of substantial progress. Gary Rankin indicated these houses could go up quickly, as he has been utilizing modular homes,but even so,this is a tight schedule. Rudy Jones indicated substantial progress in the next couple of months would give us greater leverage in requesting an extension from the State. Gary Rankin indicated if there isn't a foundation in the ground by mid-September, then there is no way this can happen. Amber Boyd inquired about the developer's time frame. Rudy Jones stated approval was received last Summer/Fall 2009. There has been substantial time for the project. Gary Rankin stated the first two units were built and sold. He questioned whether there is a market in this area for an additional home or two. Rudy Jones indicated there is a market. The number one selling point is a 30% down payment, so we need seven families to participate. Chairman Johnson inquired if Rooff was waiting to pre-sell? Minutes August 17, 2010 Page 3 Rudy Jones indicated he didn't think so. The challenge for him has been commitments to build in other locations, however,the State puts the burden of both building and selling on the developer. Bob Reisinger mentioned a conversation with John Rooff that one home was sold considerably higher than $117,000 but couldn't get the appraisal, so it sold for less money. This could be part of the issue. Rudy Jones indicated this was a concern on one and possibly others. Gary Rankin asked about our alternatives, i.e. can we get an extension, switch developers or switch projects,what latitude do we have and what are our options. Rudy Jones stated whatever we propose to the State,they would entertain, however, we must show some substantial progress with dirt being moved, purchase agreements executed, etc. This may allow us to have another developer. Part of the development process includes the Environmental clearance on all lots identified for new construction. This process is also a timely venture and the places (lots) submitted in our application have already been cleared. Any new site would need to go through these hoops and this could absorb 30-60 days. Chairman Johnson stated he would also like to see development on the East side of Waterloo,but doesn't want to lose the funding allocated to Waterloo. Chairman Johnson emphasized at our next Board meeting we need to have a plan laid out of Rooff moving forward on the lots. We will rely upon the staff to figure out the details,but we don't want to lose the money. These conversations have occurred with John Rooff and the deadline will be in September for his firm commitment. The Chairman indicated his first priority is that John Rooff completes the project. His second goal would be to reallocate these funds to a new developer for that location, and thirdly,to reallocate the funds anywhere so the funds go into the community and we don't lose them. Jim Carstensen confirmed the Chairman's comments and stressed the same priorities. Rudy Jones indicated Jason Guthrie would accept the responsibility,however Summerland Park would be his first priority. Chairman Johnson indicated the city controls three of the lots and if he could build on those,then the balance could be used at Summerland. Mickye Johnson recommended a plan be put in place for five or six months out,that if no progress has been made we should reallocate the resources so we don't run into this situation again. This would give someone else ample time to prepare and move forward. Mickye Johnson stated, I would hate to lose the resources,but we may be at the point now that we cannot make something happen or get an extension. Jim Carstensen stated, especially with Round 2 coming up,this would be helpful. Gary Rankin questioned, of the five homes,three on Lafayette and two on Madison, was the maximum price still the $150,000? Rudy Jones indicated yes,the maximum was $150,000 on the Madison/Monroe and Lafayette areas. This is well within good price points for the area. Minutes August 17, 2010 Page 4 Bob Reisinger inquired if we were limited to certain builders or was this open to anyone? Rudy Jones stated we advertised the program locally and many developers were invited to take part in the process. We only received two eligible applications for Round 1. Bob Reisinger indicated there might be some changes going on with local builders in Waterloo and Cedar Falls. Chairman Johnson stated this has been an open bid process and John Rooff has historically been one of our most consistent builders. Rudy Jones indicated he has spoken with four potential developers within the past week, so there is interest, however, it may not fit the time frame for Round 1. Rudy Jones explained the commitment for Round 2 was to build 20 units, 10 units for the Summerland Park site at $180,000 and ten units to the Madison, Monroe, Lafayette, East 8th and Sycamore Street sites. We have not received executed contracts from the State, but they should arrive any day. Round 2, half of the units must be at $150,000 or less with some low-mod criteria attached. The down payment went down from 30%to 25% in the second round and specific infrastructure dollars may be awarded if needed by the developer. Chairman Johnson confirmed we have not entered into any contracts with the developers at this time. The Chairman stated Mickye Johnson's suggestion of a six-month time line should be considered with Round 2 developers. Gary Rankin continued discussion,noting it would not be prudent to sign a contract for an additional 10 units when we have five incomplete units from the first round. He thought we should open Round 2 up to other developers. Rudy Jones indicated the actual contractual obligations are not toward the developers but the potential homebuyers who enter into forgivable loan contracts. The contract we enter into with the State is for the number of units that will be sold. Rudy understands that the number of developers could be flexible. Both Mickye Johnson and Gary Rankin expressed concerns over awarding any additional units to John Rooff if he is in default of his first contract under Round 1. Rudy Jones noted the State has agreed to our proposal, however, we might be able to amend this if we cannot follow our original plan. Chairman Johnson suggested we communicate to John Rooff that if you default on Round 1 we will not be awarding you funds from Round 2. Gary Rankin inquired about the time line for Round 2. Rudy Jones indicated it was December 31, 2011. Gary Rankin indicated we should actively search out other developers for Round 2. This has been one of the better programs we have offered and as more people know about it, we may get more participation. Minutes August 17, 2010 Page 5 2. Neighborhood Stabilization Program Update. Rudy Jones indicated this program is going well. There is a 94% obligation rate with one additional parcel to be purchased and we may need to do an amendment to move some funds for acquisition, demolition, etc. Linda Morgan of Habitat for Humanity has been a pleasure to work with on this program. By the end of September at least half of the rehabilitation units will be committed to families. Jim Carstensen inquired how many units were on the east and west sides of Waterloo. Rudy Jones noted of the eight units reported this month, four properties are north of the river: East 3rd Street, Lane, Conger, and Woodmayr. 3. Round 2—Multi-Family Rental Housing Funds Update. Rudy Jones explained the State made funds available through the Flood Recovery Program for new construction of multi-family rental housing. We did not apply for the first Round of funds. Round 2 broke down into 1) units lost and 2) for cause, allowing us to build even though units were not lost in Waterloo. We submitted two proposals, one from Ben and Brad Stroh and another from DuWayne Wessels. Nancy Gulick indicated the State asked for additional information on both proposals. To-date we have not received any word on the Strohs' conflict of interest waiver. E. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for July 2010. (Report attached.) Rudy Jones explained we hope to enhance our monthly reports in the future with some before and after photographs of the rehabilitation projects. Gary Rankin shared that it was helpful as a new Board member to tour some of the rehabilitation projects, to see what type of work is being done. Board members concurred that this would be helpful to them in understanding the process. The Chairman suggested Rudy Jones schedule a tour for Board members of several properties, both before and after the work is completed. Rudy Jones also noted a new Board member orientation would be scheduled to review the programs and processes, as our Board is changing so rapidly. It was moved by Jim Carstensen and seconded by Gary Rankin to endorse the Rehabilitation Contracts for July 2010 as presented. Motion carried. 2. Set date of public hearing for September 21,2010 on the Consolidated Annual Performance and Evaluation Report(CAPER) Nancy Gulick indicated the CAPER is a reporting of the fiscal year's activities for Community Development Block Grant and HOME program funding. We have certain requirement to report to HUD each year. The report will be ready for public review starting September 1st and the Board will be provided with copies prior to the September Public Hearing. This report explains who participated in the programs, how many people have been served, and this year will include the homeless prevention and stimulus funding provided to the city. Rudy Jones noted most of our information and published reports are posted on the city's website at Minutes August 17,2010 Page 6 www.ci.waterloo.ia.us/communitvdevelopment . The CAPER will be posted following Board approval at the public hearing. It was moved by Mickye Johnson and seconded by Bob Reisinger to set the date of public hearing on the Consolidated Annual Performance and Evaluation Report for September 21,2010. Motion carried. F. DISCUSSION ITEMS: 1. Project Specialist Position. Rudy Jones indicated the position has been posted and interviews should take place within the next 30 days. This position will greatly assist us in the department in keeping up with our reporting requirements. We may have a new third round of new construction funding which is good for the community. Gary Rankin inquired if this position was in addition to the last position hired in the Spring. Rudy Jones stated the last position was for the Rehabilitation/Relocation Specialist. This position replaced Chris Leach from the Fall of 2008. Rudy stated Waterloo is probably one of the few cities that did not hire staff to handle the additional funding streams the past several years. 2. Retirement of Board Member. Chairman Johnson indicated this would be Rev. Jim Carstensen's last official meeting. The Chairman thanked Jim for his many years of service and extended best wishes for his retirement and relocation. Board members concurred. Rev. Jim Carstensen expressed his sentiments, serving as a member of the Board for seven years. He emphasized how the Board helped him discern the issues,whether serving on a subcommittee or the Board as a whole. Jim praised the work of the Community Development Board and the commitment of its members,by serving the community in so many different ways. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Rudy D. 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Members present: Kenneth Adderley, Jim Carstensen, Gary Rankin, and Eric Johnson. Members absent: Mickye Johnson and Anesa Kajtazovic. Also present: Rudy D. Jones, Community Development Director; Nancy Gulick, Community Development Coordinator; Quentin Hart and Steve Schmitt, Council Liaisons; Linda Morgan, Executive Director of Habitat for Humanity, Danielle Rohret, Administrative Assistant, Community Development; and Ann Northey, Administrative Secretary. A. APPROVAL OF THE AGENDA. Chairman Johnson indicated Board packets were mailed out and asked for additions or changes to the agenda. It was moved by Jim Carstensen and seconded by Gary Rankin to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JUNE 15,2010. It was moved by Kenneth Adderley and seconded by Jim Carstensen to approve the minutes for the June 15, 2010 meeting. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application,Round 1 and Round 2. Rudy Jones reviewed the commitment of funding from Iowa Department of Economic Development (IDED) to build 22 units of new construction, utilizing the services of two developers. The commitment was to build 15 units at Summerland Park of which 13 have been completed. John Rooff has committed to build seven units and two have been built. Rudy indicated he has met recently with Mr. Rooff and assurances have been made that he will resume construction to complete two more units before the end of the year,which is the IDED deadline. Rudy advised we are prepping the half of a lot on Lafayette-East 8th Street and Sycamore for additional new construction units under Round 1. Rudy stated Round 2 of the down payment assistance funds for construction of 20 units would break down to ten units for the Summerland Park site and ten units to the Madison, Monroe, Lafayette, East 8th and Sycamore Street sites. It is anticipated work will begin in these areas, once the first found of funding is completed. Gary Rankin inquired if the Summerland Park units were the upper priced tier and Madison/Monroe are the lower priced tier. Rudy Jones indicated this was correct. Minutes July 20, 2010 Page 2 Gary Rankin also asked if some of the Round One homes are still hanging out there on the Madison/Monroe properties. Rudy indicated that John Rooff owns the property on Madison/Monroe and anticipates starting two additional units by the first of September. Rudy noted it is our goal that this takes place and communication with the state has occurred on this status. If there becomes difficulty in completing these units we will be in contact with the state to determine our options. Jim Carstensen inquired about the number of units completed by John Rooff. Rudy Jones stated five units need to be completed. Two units are done with a commitment to start two more beginning September 1st. That will leave a balance of three units at best, and we will stay ahead of this far enough to see what the state will entertain. We may need to request an extension. Gary Rankin expressed his concern over some units selling and how the lag in development may affect some of the other units being built and sold. Rudy expressed this has been discussed,thus the conversations with the state and how this may affect our commitment if the units are not built. We are staying ahead of this, meeting with Mr. Rooff on his commitment and our desires and possible considerations if progress is not moving ahead the deeper we get into the year. Further discussion continued. Chairman Johnson commented that Gary Rankin's questions were good and we shouldn't wait until the 1 lth hour to discuss our contingency plan. The Chairman suggested Rudy investigate this matter with Mr. Rooff and report any other options at the next Board meeting. Rudy Jones indicated the funding level that dollars were provided only allowed for John Rooff s properties to go to the $150,000 threshold. If, the Summerland site picked up the additional units,then they would need to be built at this level. Rudy indicated he has spoken to the developer about this. Chairman Johnson asked if the hold up on the Rooff development was due to previous issues with an alley or street? Rudy Jones stated no, that he was committed to putting up the units. 2. Neighborhood Stabilization Program Update. The Chairman noted a handout was provided to detail the various property sites. Rudy stated there is a commitment of nine units with 84% of the funds committed. We are entertaining an additional unit to prevent a foreclosure. Rudy noted this project is going extremely well. Linda Morgan, Executive Director of Habitat for Humanity indicated they are extremely busy with this program. Several units will be completed this fall and she indicated she would explain more about that during her presentation later on in the meeting. 3. Round 2 —Multi-Family Rental Housing Funds Update. Rudy expressed thanks to the staff for moving these proposals along for submission to the state. Both the Stroh brothers and Wessels proposals were submitted and are under review by the State. Nancy Gulick indicated IDED advised us to submit both applications, since we were still working on the Conflict of Interest waiver. Our instructions were to submit both applications, however IDED understands Minutes July 20, 2010 Page 3 that the Stroh brother's proposal was our first choice. No word as yet on the waiver, however,Nancy noted IDED requested additional information on the Wessels application. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for June 2010. (Report attached.) Rudy Jones explained that most of the contracts this month were for Emergency Repairs. Roof emergencies were backlogged due to the flood recovery activities. We are hopeful now to begin working on more of the rehabilitation and lead abatement contracts to get these projects back up and running to our previous level before we started addressing the flood cases of 2008. It was moved by Jim Carstensen and seconded by Gary Rankin to endorse the Rehabilitation Contracts for June 2010 as presented. Motion carried. 2. Presentation by Habitat for Humanity. Linda Morgan, Executive Director of Iowa Heartland Habitat for Humanity, addressed the Board regarding the HOME-funded housing projects they are working on in partnership with the City. Ms. Morgan advised this is the 20th year for Habitat for Humanity. She explained the various projects that Habitat is working on within the City, the surrounding communities and statewide. Linda Morgan, assisted by Danielle Rohret, Community Development staff member, presented a power point overview of the project areas being developed within the city through Habitat for Humanity. Ms. Morgan noted projects in Waterloo and Cedar Falls are possible through the CHDO—Community Housing Development Organization funding efforts of both entities. She clarified that Waterloo, as the lead agency, is responsible for controlling those funds through the Consortium. Families are assigned to a home before it is built and each family participates in the building process. Habitat's strategy is to try and build lots together in adjacent neighborhoods. Examples were cited to document this practice showing various four and five home neighborhood developments. Volunteer and family hours are matched, so this becomes a real partnership. Ms. Morgan reviewed several project areas and noted there will be a total of 44 homes built by Habitat with HOME funds by the end of calendar year 2010. Fifteen of the homes are in Cedar Falls, with the bulk in Waterloo. Ms. Morgan advised their program would continue to expand with funding through the Neighborhood Stabilization Program(NSP). She explained a report on these funds would be provided at another time. Basically,NSP funds allow Habitat to move out into the near west side of Waterloo and buy up foreclosed and vacant properties. Ms. Morgan noted they are helping out the city by purchasing the vacant homes to demolish or rehabilitate. Women Builds, church volunteers or RV-ers traveling through the city who want to volunteer their time, complete some of the work. Ms. Morgan noted they are trying to be very conscious of purchasing property that can be rehabilitated and remain affordable after rehabilitation to meet the needs of the low and moderate-income homeowner. These are homes between $75,000 to $85,000 and Habitat mortgages are anywhere from 13 to 25 year terms. She noted their goal is to have all mortgages less than 30 years. Mortgages are set at 25% of their monthly income. Ms. Morgan asked that the Board try to make some of their home dedications to see first hand the quality and livability of these homes. She extended a big thank you to Danielle for her assistance in the PowerPoint presentation. Linda Morgan stressed the biggest message to convey is that the families help build their homes and they pay for their homes. It is not a give-away program, which is a common misconception. Homes are small, Minutes July 20, 2010 Page 4 but very adequate to meet the needs of each family. Chairman Johnson inquired whether the proceeds from the home sales go back into the community pool. Ms. Morgan indicated the monies go back into the local Habitat program. She noted they are the bank, the developer,the builder and the contractor. Home sales help to sustain the program for future projects. They also receive donations and operate an EBay re-use store, so there are many aspects to make their program successful. Kenneth Adderley inquired if these are turnkey operations with the appliances. Ms. Morgan indicated sometimes the clients provide them, but Habitat does furnish appliances with many of their homes and they stay with the house. Ms. Morgan distributed a brochure from Iowa Heartland Habitat for Humanity and noted the website information. She noted applications are being taken all the time, so send families their way. E. DISCUSSION ITEMS: 1. FY2011 HOME Projects Approved Chairman Johnson indicated the FY2011 HOME projects submitted to HUD in this year's Consolidated Plan have been reviewed and approved. The Chairman noted the CDBG funds for FY2011 were approved last month. 2. HUD Monitoring Visit Rudy Jones indicated this is the standard two-year cycle for the HUD monitoring review. HUD representatives will be in the office next week to review our public service activities, the Homelessness Grant and reviewing a grant at Community Housing Initiatives. Chairman Johnson inquired if there were any issues of concern. Rudy Jones stated they are asking about the Section 108 Loan fund, as the deadline for this grant is September 2010. Chairman Johnson stated this concerns the Rath/Crystal Distributing loan and we will wait for an update on this next month. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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Chairman Johnson indicated Board packets were mailed out and asked for additions or changes to the agenda. It was moved by Mickye Johnson and seconded by Kenneth Adderley to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON MAY 18,2010. It was moved by Bernie Stroh and seconded by Mickye Johnson to approve the minutes for the May 18,2010 meeting. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa, New Construction Unit Production Application,Round 1 and Round 2. Nancy Gulick indicated there are five (5)more Summerland homes to close on; two properties will be completed June 30th, one property in July and two for August. Nancy confirmed this will complete Round 1 of the homes contracted with Iowa Contractor Services. Nancy also stated John Rooff is scheduled to get two more homes started in the Madison and Monroe area within the next couple of weeks. Nancy acknowledged that Round 2 -New Construction Unit Production funding has not been officially awarded to us in writing, but a verbal commitment has been made by the State. 2. Neighborhood Stabilization Program Update. Nancy Gulick reported Environmental Reviews are underway on all the homes. We are getting those reviews completed so that Habitat for Humanity can begin working on these homes. She noted Habitat added two more properties and those reviews were started. 3. Round 2—Multi-Family Rental Housing Funds Update. Nancy Gulick indicated the Board Subcommittee reviewed four applications. One application was not eligible because it was a duplex. The subcommittee recommended the two applications submitted by the Minutes June 15, 2010 Page 2 Stroh brothers be combined as one application. Nancy stated because Bernie Stroh,their father, is on our Board, we had to complete the Conflict of Interest portion of this process. The City's attorney indicated there was a conflict of interest. Since that time we have asked Mr. DuWayne Wessels to continue to update his application so we would have an application available to submit to IDED by June 30th. It is our understanding the Stroh brothers are pursuing a waiver from HUD and we are waiting for a response. Chairman Johnson indicated Gary Rankin and Jim Carstensen were part of the subcommittee who recommended combining the two applications from the Stroh brothers to make one project. Chairman Johnson concluded it is the "appearance of a conflict of interest", as no one is saying Bernie Stroh has a financial interest in this project. However, since Bernie's sons are the applicants, this presents the appearance of a conflict and HUD won't approve this project unless a waiver is granted. Chairman Johnson inquired as to the present options. Nancy Gulick stated the City Attorney is preparing a letter to the Iowa Department of Economic Development, explaining the situation. Nancy has also been in contact with IDED and provided additional information they requested on how the project was advertised,how many applications were submitted and the conflict of interest/waiver from the Stroh brothers. We are waiting to hear back from IDED on our next procedures. Nancy Gulick reiterated the IDED application deadline is June 30th, and getting the waiver prior to that time is critical. We are allowed to submit one application for economic development of the disaster- affected area. Any other applications must be for units lost, and Waterloo did not lose any multi-family units. Nancy will stay in contact with IDED to keep this moving forward. Mickye Johnson stated we do not want to lose the opportunity for these resources and suggested the Board could move forward now, directing staff with regard to the Wessels' application. Kenneth Adderley stated the question is whether IDED would accept multiple applications, and if not, could we move the second application forward to the stage where it can be immediately submitted if the waiver doesn't come through. Mickye Johnson indicated we do have another application that can be submitted, and before we leave today it is imperative that we give staff the authorization on how to proceed. Chairman Johnson asked for comments from members of the audience. John Rausch,pointed out that he represents Brad and Ben Stroh, and noted they were aware of the exception process from HUD. They are still trying to determine what IDED wants for an exception and Mr. Wendland's letter will show they have not violated any state or local laws, and that the Stroh's father does not participate in any of the project activities. Mr. Rausch noted their application fits the program the best and he feels the conflict aspect should be cleared. Mr. Rausch questioned the June 30th date, and how that was arrived at for a deadline. Nancy Gulick advised that the June 30th deadline was set by the Iowa Department of Economic Development when they submitted this program opportunity to us. The Community Development Board set our application deadline as May 14, 2010, in order to give the Board subcommittee and city council ample time to review the applications and make our submission to IDED by June 30th. • Minutes June 15, 2010 Page 3 John Rausch asked if he should contact anyone at IDED to expedite this process. He noted we want to get this decision made before June 30t, as this places us under the gun to get things done quickly. Nancy Gulick indicated she would inform IDED of the request. This is all federal funds and Mr. Wendland is preparing the letter for submission to HUD and IDED. Nancy reminded everyone that this request must also go before the City Council on June 28th for approval before submitting it to IDED on June 30d'. Nancy reported the council communication must be submitted to the City Clerk's office before 10:00 a.m. on Wednesday, June 23, 2010. DuWayne Wessels stated they are ready to finalize their application for submission. Kenneth Adderley stated we only have one week to receive the waiver. Chairman Johnson reiterated these options: No. 1 —will IDED grant us an extension of submitting; option No. 2—can the Stroh's get their waiver within a week; option No. 3 —in the alternative, can we submit Stroh's application, if waived, but if not Wessels application—we should find out; option No. 4—just submit the Stroh application and hope it gets waived and if it doesn't, we've lost the money; or option No. 5 —abandon the Stroh's application and move forward with Wessels' application. Kenneth Adderley suggested option no. 5 appears to be the best one for us to approve at this time if Mr. Wessels can have his application ready. DuWayne Wessels indicated his application has been submitted, however, they need to complete some minimal changes. Chairman Johnson stated the Board has the right to approve what we see fit. Obviously, the subcommittee has made their recommendation to the extent we chose to honor that recommendation, at what point do we abandon it and come up with Plan B. It is the Board's decision to make and Bernie will not participate in the vote. The Chairman noted he abstained from the last vote and would abstain from this vote to avoid the appearance of a conflict. We have three Board members to consider action on this project. p Following considerable discussion,it was moved by Kenneth Adderley and seconded by Mickye Johnson, that if a waiver for the Stroh application was not received by 9:00 a.m., Wednesday,June 23,2010, or an extension granted by IDED by that time, then Stroh's application for the Multi- Family Rental Housing funds would be abandoned and the Board would switch to the Wessels' project and submit that application to the City Council for approval and final submission to IDED. DuWayne Wessels inquired if it wouldn't be better to approve his application and give the Stroh's the option to step ahead of his. Chairman Johnson stated this is what we have done in essence, so if the Stroh's waiver/extension does not arrive by the deadline, the Wessels application will be submitted. John Rausch stated he realizes the Board doesn't want to lose the funding, but why is the 23rd so important? Getting any type of decision in a week is rather difficult. Minutes June 15, 2010 Page 4 Mickye Johnson stated, we must have the City Council's approval before we can forward this application on to IDED. 10:00 a.m. on June 23 is the final deadline for getting items on the City Council's agenda. John Rausch asked for the name of the person we are dealing with at IDED. Nancy Gulick indicated to Mr. Rausch that she has two people at IDED that she has been dealing with and she is not certain which one is handling this process. She will discuss this with them tomorrow and give them his name. Noel Anderson stated the Council would be making a recommendation or approval for the submittal. In order to buy a couple more days for the waiver, could we actually send both applications to the Council, have them both approved,with an acknowledgment that if the exception is not given for the Stroh's, then submit the Wessels' application to IDED. Chairman Johnson inquired if Mr. Adderley would like to make this amendment to his motion. Kenneth Adderley agreed to amend his motion to submit the applications in this order, Stroh then Wessels, for Council approval, and if the waiver/extension is not received by the deadline,the Wessels' application will be submitted to IDED. Mickye Johnson seconded the amendment to the motion. Mickye Johnson indicated both parties have done a lot of work to get to this point. On roll call: Kenneth Adderley,Mickye Johnson,Anesa Kajtazovic voted Aye. Nays: None. Bernie Stroh and Eric Johnson abstained. The Chairman declared the motion carried. Nancy Gulick reminded both applicants that amended applications should be submitted immediately so staff can review them for all the information before submission to the City Council. Chairman Johnson thanked both applicants for submitting their project applications, even though only one application will be endorsed and sent to IDED. On behalf of the city we are appreciative of your efforts and look forward to creating more housing units for Waterloo. John Rausch asked for the final submission date. Nancy Gulick responded we are trying to go for the 23`a, but to submit by the 30th we will have to overnight the package to IDED on June 29th, so the waiver would need to be in our office by noon on June 29th. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for May 2010. (Report attached.) It was moved by Mickye Johnson and seconded by Kenneth Adderley to endorse the Rehabilitation Contracts for May 2010 as presented. Motion carried. 2. Modify Down Payment Assistance Program. Nancy Gulick indicated staff has reviewed the down payment program and knowing that home buyers don't need the 10%down payment assistant that was offered when this program started, staff is looking at adjusting our program. Instead of providing 7% of the purchase price up to $5,000,we would only provide the amount needed to fill the gap for the first time homebuyer. It will be necessary for the buyer to Minutes June 15, 2010 Page 5 get their bank loan approved and find out how much down payment assistance they need. Once we know what the buyer will provide, we will provide the gap. Chairman Johnson indicated this sounded pretty naive, simply because bankers and realtors will always have the 7% gap when you receive these applications, so they can maximize what is going to their client. The Chairman noted he didn't have a problem with doing this, but didn't understand what the ultimate savings would be to do this. Nancy Gulick indicated it is the staff's goal that clients would go out and see what loan products are available to them,prequalify and find their house. Many loan products only require 3% down payment, so why are we providing up to 7%if they only need 3%. We can assist a lot more people if we only assist with the gap that they need. Chairman Johnson indicated he didn't disagree; it was just an editorial comment. Nancy directed the Board's attention to a worksheet providing a comparison of down payment assistance programs from other cities. Nancy stated we would design the program any way you chose. Bernie Stroh stated the key is that we can assist more people. We always seem to run out of money and not applicants. This is the same concept we are trying to do with the Rehab program. Chairman Johnson noted the other change is that we will no longer be teaching the home buyer education classes. Classes will be conducted by the HUD-Certified agencies: Operation Threshold and Consumer Credit Counseling Services of NE Iowa. Bernie Stroh inquired if we monitor some of those classes. Nancy responded that she didn't monitor those classes. Since they are HUD-certified, they are required to teach certain concepts in their 8 hour classes. Classes should be approximately the same and each entity provides different class times. Bernie Stroh stated there are a required number of classes to get your certificate. Nancy responded the first time buyer must have their Home Buyer Education certificate to apply for the Community Development Down Payment Assistance funds. Following discussion, it was moved by Bernie Stroh and seconded by Mickye Johnson to adopt the changes to the Down Payment Assistance program as presented, for implementation July 1,2010. Motion carried. E. DISCUSSION ITEMS: 1. Update on Chamberlain Site Redevelopment. Chris Western of the Planning and Zoning Department indicated the demolition contract for the Chamberlain Site has been let and the project must be completed by September 30, 2010. The cement floors must stay in place until the clean up of ground water contamination takes place. They are fencing the area for safety. The EPA is installing air systems in certain homes in this area. The area may become green space due to contamination. Minutes June 15, 2010 Page 6 2. FY2011 CDBG Project Approved. Chairman Johnson noted HUD has accepted the FY2011 Communitystart thee p Developmentjects y 1 Block 2010 Grant projects. We are currently awaiting the final Grant Agreements Other Business: Chairman Johnson indicated he just received a letter of resignation from Bernie Stroh, concerning his position on the Community Development Board. Chairman Johnson read the letter dated June 15, 2010 directed to Mayor Buck Clark, City Council,Noel Anderson, Rudy Jones and Board Members. Chairman Johnson indicated to Bernie Stroh that we will surely hate to lose you as a Board member,but will accept your resignation and make it part of the formal record. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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(n co O L � 0) O .-. p O j 0 a V O O oa a) U N > a my orn c CO 'D N N < CO 2 m Q r- 0 c.v. c corn el, v In Cr) U CC CI") V- w I-- 'a 0 CC N- (N0 Nr CO CO °° co to m �t �n w C c CO v r cc z � �- � r [- mr13 N0°LLI N J EFZz � � � � 0 Ze- r J U) y co N 1- a�i Q Co co Q Q Q.J >. co ^�^` c� .-. U O _ I Y Y Q OC U C W .y N W L LU C Q 0 L I... W_ Cll :-, vaiU� 'U (/y5, °- 22 R � _) � Z 0 ccrs a) N —W L (q w L L 0 asL ` 2 >, tII c LL `o Uo o -J 0) co EL 'c fa LL � m ¢ a`, O >. U Ce 2 RI w p p d ++ c >, c' co ¢ N Q o N w L IL 03 _ - R 4.6 O CO -C Az Q, O 2 a Y C U C E Z E Li- +.+ z C E -i C as O.c w Q 43 WwO �vIcW o d Ts U H E co m co 3 ~ N Y —, J > UI-c E,zpe, k /) y,e, MINUTES COMMUNITY DEVELOPMENT BOARD MEETING May 18, 2010 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson at 4:00 p.m. on Tuesday, May 18, 2010. Members present: Kenneth Adderley, Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Members absent: Anesa Kajtazovic. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Ron Welper and Quentin Hart, both Council Liaison; Danielle Rohret, Administrative Assistant and Ann Northey, Administrative Secretary. A. APPROVAL OF THE AGENDA. Chairman Johnson indicated Board packets were mailed out. An updated agenda was mailed separately. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the updated Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON APRIL 20,2010. It was moved by Kenneth Adderley and seconded by Jim Carstensen to approve the minutes for the April 20,2010 meeting. Mickye Johnson abstained, as he wasn't at the meeting. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application, Round 1 and Round 2. Rudy Jones stated Round 1 of the New Construction activities was going well. The two developers, Iowa Contracting Services and Black Hawk Contracting have begun their projects. The Summerland Park area is moving along extremely well and all 15 units have been sold or pre-sold. Most of these homes are within the $180,000 price range with a 30% down payment subsidy to the home buyer. Construction has been delayed in the Lafayette, East 8th and Sycamore Street areas due to the archeological survey. This survey is now complete and we anticipate activity within the next 60-90 days. Rudy Jones indicated a proposal was submitted for Round 2 of New Construction funding for approximately $1 million for an additional 20 units, ranging from $120,000 to $180,000. Informally, we have received word from the State that we will be approved and paperwork is forthcoming for a budget amendment. This will give the Summerland area an additional 10 units and allow more units in the Lafayette/Sycamore Street and Madison/Monroe Street areas. Chairman Johnson inquired about the subsidy. Rudy Jones stated the second round would be 25% subsidy per unit. Gary Rankin inquired whether the archaeological report was a normal procedure, or whether there was Minutes May 18, 2010 Page 2 something of interest in the area. Rudy Jones indicated these projects garner more interest due to their location along the river. The scope of the area we are working includes East 6th Street all the way to East 18th Street to join in with the other service-oriented campus projects. There has been minimum dialogue with the consultant and no discoveries to note. Board members requested this item continue on the agenda for future updates. 2. Neighborhood Stabilization Program Update. Rudy Jones indicated NSP funds were issued to address the housing crisis with$850,000 awarded for this purpose. Habitat for Humanity is our partner with a commitment of seven units to rehabilitate and/or demolish and establish new construction on two sites. Rudy indicated Ms. Linda Morgan, Executive Director of Habitat may be able to make a formal presentation at the next meeting to discuss this project and answer any questions. 3. Round 2—Multi-Family Rental Housing Funds. Set application review date. Chairman Johnson indicated a subcommittee was appointed at the last meeting, which includes: Gary Rankin, Jim Carstensen and Kenneth Adderley. Rudy indicated we hope to meet once with the subcommittee next week to review the four applications for Multi-Family Rental Housing. Kenneth Adderley asked to be excused from the review committee as he would be out of town for his mother's funeral in the Bahamas. Chairman Johnson indicated that he and Bernie Stroh could not serve as there would be a conflict of interest. Mickye Johnson volunteered to fill in. Rudy Jones distributed application packets for the subcommittee and will contact members by email to schedule the review time. He noted once the subcommittee decision is confirmed, staff will poll Board members for a final vote prior to submission to the City Council. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for April 2010. (Report attached.) It was moved by Mickye Johnson and seconded by Jim Carstensen to endorse the Rehabilitation Contracts for April 2010 as presented. On roll call: Kenneth Adderley,Jim Carstensen, Gary Rankin,Bernie Stroh and Eric Johnson voted aye. Nays: None. The Chairman declared the motion carried. 2. Adopt CDBG/HOME Monitoring Policy. Nancy Gulick indicated this policy was drafted after consultation with another entitlement city who recently was cited for not having a formal policy in place during their monitoring visit. Nancy indicated we are trying to be proactive by proposing this policy prior to our HUD monitoring visit this summer. Mickye Johnson asked what determines additional assistance by some agencies. Nancy Gulick stated if a subrecipient has any problems with their financials, or collection of income documentation,then she can offer technical assistance to keep them on track with their reporting requirements. Nancy noted there is a criteria worksheet given to each agency and serves as a checklist when our monitoring visit is conducted. Kenneth Adderley questioned bullet number five, are we certain that all documents were being reviewed by ` Minutes May 18, 2010 Page 3 City legal staff. Nancy Gulick stated all agreements are reviewed by the legal department every ten years, or more often if changes are required. Kenneth Adderley also asked about the affirmative marketing plan. Nancy Gulick explained that each agency receiving funds for rental units must have an approved marketing plan in place that is reviewed annually. If something appears questionable during a monitoring visit, then we refer that agency to the Human Rights department, whereby suggestions are made for procedure changes to the agency. Rudy Jones indicated these items are minimum criteria that each agency must meet in order to be considered in compliance with the HUD regulations. Mickye Johnson inquired which rental units/agencies are covered by this criteria. Nancy Gulick reported right now we have Roosevelt Apartment, Stokes Senior Housing, Highland Apartments, Marsh Place and any flood rentals utilizing federal funds must also be included. Chairman Johnson noted, in the staffs viewpoint these are already steps that are taking place and the Board is being asked to formally adopt this policy. Nancy Gulick stated, yes, this information is already part of our Action Plan, however, we were informed a formal policy will be required by HUD. It was moved by Bernie Stroh and seconded by Jim Carstensen that the Monitoring Policy, as written, be adopted. Motion carried. (Copy attached) E. DISCUSSION ITEMS: 1. 2008 Flood Recovery Power Point Presentation. Danielle Rohret, Administrative Assistant, reported there are two major objectives to the Flood Recovery presentation, one is to provide a visual representation utilizing the Google Earth program, and secondly to describe the demographics of the population that we serve. These tools are important and will provide a better understanding of how well we are meeting our HUD objectives. Ms. Rohret's presentation indicated three major activities have taken place: rehabilitation, down payment assistance and new construction. Over$2 million dollars of Jumpstart flood recovery money has been invested in the community. Areas affected were clustered along the Cedar River, with a few exceptions due to relocation properties for tornado victims. Comparisons were made for individuals served to neighborhoods served, along with various other charts. Ms. Rohret explained other possible uses for charting and reporting department activities. The presentation was well received and Board members followed up with some questions. Chairman Johnson inquired when 2008 flood recovery activities will be concluded. Nancy Gulick reported we are hoping to conclude the program by June 30, 2010. Rudy Jones indicated we have started to transition out of this program and have a few rental rehabilitation projects to finish. Minutes May 18, 2010 Page 4 Nancy Gulick indicated if someone that qualifies for federal funds would come in to apply,we would have to process their application,but the State of Iowa application deadline has expired. Chairman Johnson noted that everyone should have received copy of the FY2011 One-Year Action Plan approval. for review. The plan has been submitted to HUD for Mickye Johnson inquired about the Chamberlain project buyouts for property owners in the area and asked staff to look into this process. Rudy Jones explained this is a separate project through the Planning and Zoning Department, and that he would convey this request to Noel Anderson. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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O C N U a) CL w CU a w U U «. " COw N O a ,C C) g -c 7 O `m c = Z N . z O c at3 J 0- a s O A _ n c c � O � Y ra C� O O t) z a) a cn -a CZ N m .Q p cocu 03 -C c Q U? d CO > > N Q al C i Cl t w N d cn O y ,� N O N L. (n CO co ' • n' O N (7 O Q d - w 'C 0 C ca) U 2 (a R a) w = 2 a) otf c0 U a) C ¢ E o E � o0acoc � O coc2 2 coL �e a co < Ts zQ I- W zO � (ncn � > Q � H W � cLmH co _ 2a � 'U o co E j- � YWF- � F- J < � City of Waterloo CDBG/HOME Monitoring Policy The City of Waterloo Community Development Board will monitor subrecipients according to this policy. • Monthly monitoring for each agency will be completed when the agency submits their request for reimbursement. • Staff will make annual on-site monitoring visits to each agency funded that year to ensure compliance with program guidelines, outcomes,objectives,and a timely use of funds. • Additional visits will be done to agencies that require more assistance. • Monitoring reports found in the CDBG and HOME guidebooks will be used as worksheets to check for the required information. • Legal documents are used to record each property assisted to comply with affordability requirements. City legal staff will review all legal documents at least every ten years. • Rental rehabilitations will be sent an annual letter requesting the income verifications of the tenants,the insurance policy and the affirmative marketing that is being done. • The equal opportunity logotype will be used on all correspondence that originates in our office,and each subrecipient's brochures,letterheads, etc. will be reviewed for the equal opportunity logotype. • Subrecipients will be monitored for adequate marketing information for rental units. Vacant rental unit information shall be published in the local newspaper,the Waterloo Courier, as well as advertising on the Waterloo Housing Authority bulletin board and the Salvation Army bulletin board. Other agencies that provide marketing assistance could include the neighborhood association newsletters,Hawkeye Valley Area Agency on Aging, and the Red Cross. Existing tenants may provide referrals, and open houses will be held at the various rental locations. • Each agency is required to have a fair housing and affirmative marketing plan on file and available on request. • Rental units are reviewed annually to see if an inspection is required that year, and if so, an appointment is set up with the tenant so the inspection can be complete. The landlord is then given thirty(30)days to complete any repairs. • If an agency is not sending in monthly reports, or the Community Development staff has concerns with the funded activity,more communication and assistance will be offered to the agency. • Each agency will receive a post-monitoring visit letter and if additional information is requested,the agency will have thirty(30)days to respond. • No reimbursements will be made to the agency until all monitoring requirements are complete and all reports are current. • The Subrecipient Agreements signed during the initial contracting period will provide a clear guideline for the scope of services,a project schedule,a project budget, project indicators, an outline of compensation and method of payment,terms and conditions, performance and reporting guidelines,and an outline of other reports, audits,inspections, and other administrative requirements that are needed. • Waterloo Community Development has adopted HUD's Performance Measurement System design to measure productivity and impact of the CDBG and HOME programs. Each agency that is funded will provide the necessary information to the department so that reporting can be completed in the Consolidated Annual Perform ce and Evaluation Report(CAPER). Adopted on May 18,2010 By Eric Johnson, mmunity Development Board Chairper n J:\NANCY-G\Block Grant\Monitoring Policy 5-13-2010.doc L- �(, it''L -' '-�J-ei/ 1 - 1 f r7 -/f MINUTES COMMUNITY DEVELOPMENT BOARD MEETING April 20, 2010 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson at 4:00 p.m. on Tuesday, April 20, 2010. Members present: Kenneth Adderley, Jim Carstensen, Anesa Kajtazovic, and Eric Johnson. Members absent: Mickye Johnson, Gary Rankin and Bernie Stroh. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning& Development Director; Steve Schmitt and David Jones, both Council Liaison; and Ann Northey, Administrative Secretary. Councilperson, David Jones,reported that he was chair of the Boards and Commission Committee and is working to find new applicants to replace those members with expired terms on the Community Development Board. He noted that Eric Johnson agreed to serve another three year term and has been reappointed the Chairman. A. APPROVAL OF THE AGENDA. It was moved by Jim Carstensen and seconded by Kenneth Adderley to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON MARCH 16,2010. It was moved by Jim Carstensen and seconded by Kenneth Adderley to approve the minutes for the March 16,2010 meeting. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application, Round 1 and Round 2. Rudy Jones stated activity is picking up and a number of units at the Summerland site are in the process of closing. He indicated we are preparing to submit the Development Plan to the City Council for their approval and then forward it on to the Iowa Department of Economic Development. Rudy briefly reviewed the draft plan, budget and various areas being targeted for the new construction. Rudy reiterated under Round 2 of the new construction activities we will be applying to the state with proposals from the same two developers: Iowa Contracting Services and Rooff Development. We anticipate providing a proposal for an additional 20 units between the $120,000 and$180,000 price point. The State of Iowa requires half of the units built to be at the $150,000 price point. The Summerland project area may be able to construct additional units and ten additional units will be constructed in the Madison/Monroe, Lafayette, East 8th and Sycamore Street areas. 2. Neighborhood Stabilization Program. Rudy Jones explained that Habitat for Humanity is an excellent partner and will work to identify, acquire, and/or demolish properties for rehabilitation or new construction on various sites. $850,000 has been Minutes April 20, 2010 Page 2 awarded for this purpose. 3. Round 2—Multi-Family Rental Housing Funds. Select Subcommittee. Nancy Gulick indicated the Multi-Family Rental Housing program has been advertised in the newspaper, city website and CDBG web pages and all previous applicants were notified. Nancy stated the application deadline is May 14, 2010 and a three member subcommittee is necessary to review the applications. The Chairman indicated Gary Rankin should be one member on the subcommittee with his expertise in construction. Jim Carstensen and Kenneth Adderley volunteered to serve in this capacity. The Chairman requested that Gary Rankin be contacted to confirm his participation on this subcommittee. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for March 2010. (Report attached.) Rudy Jones indicated the staff was pushing through a number of Emergency Repair roof projects with 10- 12 potential clients ready to process and the final third of the list to go. Nancy Gulick stated all stimulus monies have been committed and the projects must be completed by fall. Following discussion it was moved by Kenneth Adderley and seconded by Jim Carstensen to endorse the Rehabilitation Contracts for March 2010 as presented. Motion carried. E. DISCUSSION ITEMS: 1. HUD Housing Counseling Performance Review. Rudy Jones reported that on April 9, 2010,the Waterloo Housing Partnership Down Payment Assistance and Home Buyer Education programs were monitored by a HUD representative for housing counseling compliance. Contacts were also made to some of the clients involved in these programs. The final report from HUD will be forthcoming. 2. State Auditors—Jumpstart Program. Nancy Gulick reported that State Auditors visited the office for four days,monitoring the IDED Jumpstart Program activity files. Basically,this review was an audit on the IDED activities conducted through our client files. Chairman Johnson stated there was one more formal action necessary to appoint a Board member as official secretary to the Community Development Board. The Chairman noted that Elsie Duncan served in this capacity for many years and this is for recording purposes only. Following discussion, it was moved by Jim Carstensen and seconded by Anesa Kajtazovic to appoint Kenneth Adderley for the position of Board Secretary. Motion carried. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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Rudy Jones indicated two new members were appointed March 15, 2010 to the Board, Rudy introduced Kenneth Adderley and Anesa Kajtazovic and welcomed them to serve in this capacity. Members present: Kenneth Adderley, Jim Carstensen, Anesa Kajtazovic, Gary Rankin, and Bernie Stroh. Members absent: Mickye Johnson and Eric Johnson. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning&Development Director; Ann Northey, Administrative Secretary; Tim Jamison, Waterloo/Cedar Falls Courier; and Jeff Bracken, homeowner. A. APPROVAL OF THE AGENDA. It was moved by Kenneth Adderley and seconded by Jim Carstensen to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING AND THE PUBLIC HEARING ON FEBRUARY 16,2010. It was moved by Jim Carstensen and seconded by Kenneth Adderley to approve the minutes for both February 16,2010 meetings. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa, New Construction Unit Production Application, Round 1 and Round 2. Rudy stated activity is set to increase for the new construction program Round 1 as spring weather improves. This is a total of 22 new units to be constructed between$117,000 and$180,000. Rudy reviewed the monthly report on these projects. Rudy explained this program began as a result of the flood recovery activities through the State of Iowa Economic Development Division for Entitlement Cities and some COGS to help replace units lost due to the flood of 2008. During Round 1 two developers submitted proposals,which were combined and submitted to the State. Funds were released to the City of Waterloo to subsidize new construction,primarily for the homebuyer at 30% down payment assistance. Rudy indicated under Round 2 of the new construction activities we will be applying to the state for another round of funds, with proposals from the same two developers: Iowa Contracting Services and Rooff Development. We anticipate providing a proposal for an additional 20 units between the $120,000 and$180,000 price point. The State of Iowa requires half of the units built to be at the $150,000 price point. Minutes March 16,2010 Page 2 The Summerland project area may be able to construct additional units and ten additional units will be constructed in the Madison/Monroe,Lafayette,East 8th and Sycamore Street areas. We anticipate property transfer authorizations to transfer those sites to John Rooff for new construction. Ms. Kajtazovich inquired if we were building homes and selling them,or giving them to some people? Rudy Jones indicated the developer is building homes and the State is providing down payment assistance to the homebuyer. The developer is responsible for securing their own construction loans,their realtor and the city are facilitating the funds on behalf of the buyer. Participants must be income eligible. Bernie Stroh now present. Acting Chairman Gary Rankin indicated this has been a very good program and has been a huge boost to the city,the construction industry, and to the homeowners. Basically,the 30% down payment assistance comes off the top of the price of the home as a grant to the homeowner,however,the owner must enter into a forgivable loan for a period of five years. Other questions were raised concerning the forgivable loan and Rudy Jones explained there are no payments owed as long as the home owner lives in the of theroperty or five years. If the funds would have to beTrepaid e owner would sell or move from the property prior to that time, a Chairman Rankin encouraged new Board members to stop and ask questions along the way to become more familiar with the workings of the Board and programs we administer. 2. Update on Rehabilitation/Relocation Specialist Position. Rudy Jones indicated Jon Martin was approved by the Mayor and Council and will begin his duties on March 22,2010. Rudy gave a brief background on Mr. Martin, and indicated he was previously a rehabilitation contractor utilized by the department and is aware of the rehabilitation process. He knows our staff and this should provide a short learning curve to get him certified in the necessary programs for his position. Rudy briefly explained the duties and responsibilities of a rehabilitation/relocation specialist. He stated the City receives Community Development Block grant funding, and the Board,by way of a subcommittee, and the City Council decides where the funding will be allocated. One of the key activities is the rehabilitation of owner occupied structures. Our Rehabilitation Department and staff make thiaprogram from happen. The Rehabilitation Specialist's responsibility is to initiate that process by taking app lictions low-income homeowners to make sure the client is income eligible,visiting the home owner on site to determine what repairs are required to bring the home up to city code. Bids are sent out to certified contractors who perform the actual labor to bring the homes up to code. We have been without one of our specialists for the past year. The relocation component was a caveat we lost years ago when a staff member resigned. Occasionally we must acquire structures for the purpose of redevelopment or elimination of slum and blight. The relocation component was added to this staff person's duties and they will be trained in the relocation regulations and activities. Minutes March 16,2010 Page 3 3. New Community Development Board Members. Chairman Rankin asked Bernie Stroh to introduce himself to the new Board members Kenneth Adderley and Mesa Kajtazovic. 4. Neighborhood Stabilization Program update. Rudy Jones explained specific activities were initiated to deal with the housing crisis and funding was awarded to the City of Waterloo through the Neighborhood Stabilization Program. This program allows the city to acquire homes that were recently foreclosed upon. We have created a partnership with Habitat for Humanity to help us utilize these funds. A certain percentage of the clientele served must be at 50% or below area median income. Habitat staff works within these parameters and has helped us get this program off and running. During the past few months we have identified houses that meet this criteria and we are in the process of acquiring homes to rehabilitate or demolish for redevelopment with a new construction unit. There are seven units on the performance report, which gives you a rough idea of our progress. Rudy noted the total contract amount was $850,000 and the State requires that 50% of that amount must be obligated by March or April 2010. This means, we must have purchase agreements executed, demolition contracts executed and then move to the actual activity. All funds must be expended by December 2012. Rudy reviewed the activity report at this time and indicated these were rough estimates. Discussions have also taken place on Davis Bacon wage determinations on the demolition process. Rudy noted we never perform Davis Bacon activities on single family homes utilizing CDBG dollars. 5. Round 2—Multi-Family Rental Housing Funds. Chairman Rankin indicated the program is being advertised at this time. Rudy Jones thanked staff for getting the information out and quickly posted on the city's website. Previous applicants were also contacted and provided pertinent information. We anticipate holding a meeting of all potential applicants to discuss the program before the application deadline. Chairman Rankin inquired if a subcommittee would be appointed to review the applications and set criteria for these projects? Rudy indicated we are unable to provide specific criteria at this point, so we will probably evaluate each application on its own merits. The State will have fewer funds to distribute and since we did not lose any multi-family units the first round, we will be evaluating our applicants differently and realize we are competing against other entitlement cities within the state. Rudy indicated there would be approximately $3 million for the entire state to distribute. Kenneth Adderley asked for an explanation of the term"multi-family"units. Rudy Jones indicated it is a minimum of 8-12 units in a construction project and it is at the developer's discretion to determine the number of bedrooms per unit. Chairman Rankin indicated there would be an income guideline component to the project and the developer will receive grant funds in order to complete the project. Through that grant they must provide housing and meet rent controls established by the program. Kenneth Adderley inquired if a consortium of investors wanted to build a 100-unit assisted living Section 8 complex would it qualify under this program? Minutes March 16,2010 Page 4 Rudy indicated it is possible,but this would not be the primary avenue,when talking Section 8 type units. They would be better served under the Waterloo Housing Authority jurisdiction. Chairman Rankin stated he thought there were stipulations that eliminated tax credits from these projects. He also felt with limited funding and a large number of applicants we should have specific criteria for the program. Nancy Gulick indicated one criteria which may interfere with some of the applicants is the State's requirement that these projects must meet the Green Streets criteria which the State of Iowa set up. Energy efficient items and other specifics may have an impact on the applications. Chairman Rankin also noted it went from a five to ten year period of affordability on this second round. Rudy Jones indicated the state also emphasized an adaptive reuse component,which raises the allotment from$60,000 to $66,000. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for February 2010. (Report attached.) Chairman Rankin asked staff to explain the monthly reports for the new Board members. Rudy went over each of the monthly reports to bring Board members up to speed on the projects currently being administered by the staff. Nancy Gulick indicated staff is attempting to have the Jumpstart flood activities wrapped up by the end of May. Rudy gave special attention to the Emergency Repair report,noting we have not had much time to facilitate these activities due to the backlog of flooded homes. The Emergency Repair activity should be picking up over the next 30-45 days, as we begin working on roof projects. We currently have a waiting list of approximately 50 dwellings that need roof repair or replacement. Kenneth Adderley inquired how dwellings are determined to be eligible for assistance? Does the owner call in for assistance? Rudy Jones indicated the owner/occupant of the dwelling contacts our office. The rehabilitation staff does an on-site inspection of the property. Each staff member has a background and training in Housing Quality Standards, and can determine the extent of repairs. Occasionally, a request may be referred to the Building Inspection staff for their professional advice on a particular issue. Eligibility for the program also depends upon the owner's income. Rudy also explained the staff reports included in the packet from Donna Lesyshen,Homebuyer Education/ Down Payment assistance program; Perry Goodman,Neighborhood Services and Louis Starks, Contract Compliance program. Chairman Rankin indicated these reports are for information purposes on the department activities from the previous month. Minutes March 16, 2010 Page 5 Following discussion it was moved by Bernie Stroh and seconded by Jim Carstensen to endorse the Rehabilitation Contracts for February 2010 as presented. Motion carried. 2. Subordination Request from Veridian Credit Union for property at 1557 Hawthorne Avenue, Bracken, Owner. Chairman Rankin explained the subordination process, noting when a rehabilitation or down payment assistance loan is granted, occasionally the homeowner will seek a new loan for home improvements, or to refinance or consolidate debt. In order to obtain a new loan the lender seeks a subordination to place Community Development's loan in a subordinate position to the new debt. Joshua Bracken commented he was seeking a home equity loan from Veridian Credit Union to complete some home improvements on his property. Chaiinian Rankin indicated this loan is for $14,000 to install a fence and hot tub on Mr. Bracken's property. Joshua Bracken indicated he had back surgery in the past year and this installation will be for pain relief. Discussion continued on the mortgage rates, balance and monthly payments on Mr. Bracken's current home loan. The Chairman noted the Veridian loan will be in 2nd position and Community Development's forgivable loan will be in third position. Chairman Rankin indicated to new Board members that the Board receives a fair number of subordination requests. Sometimes we run into situations whereby the homeowner is refinancing and attempts to consolidate consumer debt into their new loans. As a general rule, the Board has taken the position not to subordinate for consumer debt. The Chairman stated, in this instance, however,the request appears to be mostly home improvements to the property. Bernie Stroh stated his reservations with the equity of the rehabilitated home being used for collateral before it is paid off,but given the medical situation,there may be some wiggle room. Chairman Rankin also indicated we take into consideration what point we are at in the forgivable loan phase, and we are over a year and a half out. It was moved by Kenneth Adderley and seconded by Bernie Stroh to authorize approval to subordinate the forgivable loan to Veridian Credit Union on the property at 1557 Hawthorne Avenue for Joshua Bracken for a new loan in the amount of$14,000.00. On roll call: Jim Carstensen,Kenneth Adderley,Anesa Kajtazovic, Gary Rankin and Bernie Stroh voted Aye. Nays: None. The Chairman declared the motion carried. Joshua Bracken inquired about his next step to sign documents. Staff advised he would need to sign a Forgivable Mortgage Addendum and a Rehabilitation Specialist will inspect the property prior to the work and after to confirm the improvements. Minutes March 16,2010 Page 6 E. DISCUSSION ITEMS: 1. HUD Housing Counseling Performance Review. Rudy indicated that the city is a certified HUD Housing Counseling Agency, and we are up for our bi- annual audit visit,which is scheduled for mid-April. Once the audit is complete, we will forward the results to the Board. Our certification is through May of 2010 and depending upon the results of the review,this timeframe may be extended. 2. HUD Lead Grant Extension. Nancy Gulick indicated the extension requested for the Lead Grant finally went through and will run through October 2011. Lead classes are being conducted by Chris Leach and he and Mark Boesen are looking into training for these classes. Chairman Rankin indicated this could be a money-making opportunity for Community Development. Kenneth Adderley inquired what are the current guidelines for disposing of paint. The Chairman stated it needs to be poured out and dried on newspapers or cardboard and once it is dry it can be tossed into the garbage. Rudy Jones indicated that Eric Johnson submitted his annual report on the Block Grant Administration Costs for Board review. Chairman Rankin indicated that Eric Johnson, our Board Chair, does a good job of reviewing these costs each year. The Chairman also noted the Homeowner Evaluation form which was part of the Board packet. This form is left with the homeowner by the rehabilitation specialist,to give us an evaluation of the work completed on the home. Rudy Jones extended thanks to Gary Rankin for chairing the meeting today and doing an exceptiona l Acting Chairman Gary Rankin once again welcomed the new members to the Board and indicated all questions are good ones. If you are not certain of the discussion,please stop and ask questions. Bernie Stroh also indicated the staff is very cooperative to help answer questions. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tem • • v co • O C CO c 4 C.) • c c 0 0 0 '' c -a co 0 to o r a — I a) 0 0 0 0 0 0 0 0 0 — 00. w 0 0 0 0 jCON COON ZOdc, ZN - c70 M F000 0 p (OCN OON 0O O DX) O = I- O c. 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N Na0 Cl) a m i `nag2 � OZ t0000c) CD E 0 2 o �U C `O EL CD om it U p L L 0 to .c d U '(o c Q, ) in (tea _ o. CD N 0 CO C U IX A re M y W a) a) le. W N d R c >,z O. is y a a a. ¢ to c v al r _ g � d c c .gym �'C.cr) z -0cots cco =C 4.4 Z o Na = coa) L. i - W U Cl) O i Q C) a) v) 4) (7 ^` u t W 0 .C C.co 14 a) w co —-0 415 d C d N w _� V a) (o I9 C N ¢ Q) .ai ° i;, Q Q p o Q 1-6 = c .►3 (d (n L N cc Cl) o d a) o ,o c LC /l MINUTES COMMUNITY DEVELOPMENT BOARD PUBLIC HEARING FOR CITIZEN INPUT FY2011 CDBG and HOME PROGRAM February 16,2010 Chairman Eric Johnson called the public hearing to order at 5:00 p.m. in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa. Board Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Chairman Eric Johnson. Also present: Quentin Hart and Steve Schmitt, City Council Liaisons; Rudy Jones, Community Development Director; Nancy Gulick, Community Development Coordinator; Mark Boesen, Manager of Rehabilitation Services; Perry Goodman,Neighborhood Services Coordinator; Ann Northey,Administrative Secretary; Paul Huting and Rick Curran, Leisure Services Department; Rebecca Johnson, Human Rights Department; Barb Grant, Operation Threshold; Barbara Prather,Northeast Iowa Food Bank; Al Hays, UNI; Monica Paulsen, House of Hope; Rev. George Karnik and Joni Hansen, Cedar Valley Hospitality House; Cheryl Faries, citizen; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF AGENDA It was moved by Mickye Johnson and seconded by Bernie Stroh to approve the agenda. Motion carried. The Chairman stated the purpose of this hearing is to gain citizen input into the application process for FY2011 CDBG and HOME Program funding for the one-year action plan. He noted a copy of the proposed Subcommittee recommendation is attached to the agenda. The Board will receive additional input at this hearing and make their final recommendation to the City Council. The City Council will make the final recommendation for the application to HUD. B. RECEIVE AND PLACE ON FILE AFFIDAVIT FOR PROOF OF PUBLICATION FOR NOTICE OF PUBLIC HEARING The Chairman indicated a copy of the display ad, published in the Waterloo/Cedar Falls Courier on Sunday, February 7, 2010 announcing the public hearing and subcommittee recommendations, was available for review. It was moved by Bernie Stroh and seconded by Gary Rankin to approve and place on file the affidavit for the notice published in the Waterloo Courier. Motion carried. Minutes—Public Hearing February 16, 2010 Page 2 C. MOTION TO OPEN PUBLIC HEARING: It was moved by Mickye Johnson and seconded by Jim Carstensen to open the public hearing. Motion carried. Chairman Johnson indicated anyone with an interest in addressing the Board should step to the microphone, identify your organization and request. Perry Goodman,Neighborhood Services Coordinator thanked the Board and Subcommittee for consideration of his request and submitted an Addendum which included an additional funding request for Neighborhood Leadership Development and Training for all the neighborhood organizations. Mr. Goodman noted this program provides great leadership skills and motivation opportunities for people in the neighborhoods. He asked the Board to consider increasing his FY2011 allocation by $8,500 to include this program. Dr. Al Hays,Professor and Director of Public Policy at the University of Northern Iowa, stated he administered from 2001-2007,two Community Outreach Partnership Center grants from HUD. The leadership training workshop was developed through these grants and included eight sessions in a variety of topics to strengthen neighborhood associations and leadership. Training would be on basic organization skills such as how to run a meeting,how to recruit members, and build the organization, as well as getting information and partnering with the city. This was a successful process graduating approximately 120 people through this training. Those individuals became a core group in forming the neighborhood coalition,which has been in existence since 2001,with regular steady attendance and performs an important role in the community. Professor Hays indicated it is time to re-start the leadership training as a new generation of people coming into the neighborhoods would benefit from the program. Professor Hays indicated a modest investment into this training would provide long-term benefits for the community. Perry Goodman would administer this program with the assistance of Professor Hays, Cheryl Faries and Dr. Jared Burrough. They will solicit additional sources to cover items not eligible with CDBG funding. Chairman Johnson indicated this is an additional request for Neighborhood Services. Professor Hays stated it was an additional $7,000 in funds being requested for Neighborhood Services. He noted their proposal is to do neighborhood leadership and follow this up with some study circles in targeted neighborhoods. This is a nationally recognized model,being used in hundreds of communities throughout the United States. This is a fantastic tool to get people involved in neighborhood planning. Bernie Stroh asked how they would determine which neighborhoods to target. Professor Hays stated they must meet the CDBG criteria for low-and moderate-income neighborhoods. Neighborhoods with declining activity may be targeted. Minutes—Public Hearing February 16, 2010 Page 3 Chairman Johnson indicated the deadline was December 31, 2010 for submitting application. This was not included in the original materials. Professor Hays stated this is not an application from UNI for internal work. This is an Addendum to a budget item that you already have recommended. We would like you to consider this to enhance the Neighborhood Services Program. Professor Hays stated the Board needs to be willing to invest in these other forms of capital to reinforce the investment that you are making in these neighborhoods. Rick Curran, Waterloo Leisure Services, spoke concerning the Sullivan Park Play Structure and inquired if they could complete part of the project and try to secure additional fund raising to finish it. Paul Huting indicated they put their application together and plan to move forward if they have full funding. Mr. Huting stated they are prepared to look for alternate sources of funding to supplement the project, but if this process falls flat, would the Board allow them to reduce the scope of the project. Chairman Johnson stated this project is $80,000, half funded by the City and half by CDBG funds. Paul Huting indicated they asked for$40,000 and the subcommittee recommendation is $34,000. City Bond funds would be utilized for a portion of the cost. Gary Rankin indicated the subcommittee considered this project a priority to fund. Bernie Stroh agreed, part of the application criteria was that this playground did not meet the national standards for playgrounds. Paul Huting clarified that a smaller structure would have to be constructed if costs are reduced. The new play structure equipment would still meet the national guidelines. Chairman Johnson stated a contract will be written based upon your application, so if you wish to waiver from that application, in the event you cannot raise other funds,the process would be to come back to the Board for review. Paul Huting indicated they would research alternate funding sources and come back to the Board. No further comments were received from the public. D. CLOSE PUBLIC HEARING The Chairman called for a motion to close the hearing. Minutes—Public Hearing February 16, 2010 Page 4 It was moved by Mickye Johnson and seconded by Gary Rankin to close the public hearing. Motion carried. Chairman Johnson stated there was not much input toward this process. He asked for further questions or comments from Board members. The Chairman indicated he was troubled with amending the budget at this time when there was a deadline for submitting new projects. Chairman Johnson stated the Amendment to the Neighborhood Services budget for the leadership and development training would be a good project. He inquired if there were any funds available or carried over from previous years that could be utilized or reallocated toward this project. Rudy indicated he was not aware of any available funds,but would investigate and get back to the Board at the next meeting. He noted we still have approximately three months to go before the fiscal year end. Gary Rankin indicated he feels strongly that applications should come in on time and be reviewed in their entirety while the subcommittee is meeting and going through the process. Mickye Johnson stated his reservations as we could be setting a precedent to accept applications after the fact. No matter how great the proposal, we must be careful, as the funding continues to dwindle every year. Chairman Johnson indicated a correction,in that the funding actually went up this year for the first time in about 10 years. The Chairman noted for every dollar requested,we are giving less than .50 cents. Mickye Johnson commended the subcommittee publicly for a job well done on reviewing the applications and preparing a recommendation with limited funding. Gary Rankin stated this year we spread the funds out a bit more to fulfill more of the human type projects that were submitted. E. MOTION TO AUTHORIZE PUBLICATION COMMENT D (MARCH 1-30,2010) AND SUBMIT RECOMMENDATION TO CI OUNCIL FOR A PUBLIC HEARING—APRIL 19,2010. Chairman Johnson stated we have the subcommittee recommendation before us. (copy attached) It was moved Bernieo subcommittee's's recommendation for FY2011 CDBG and HOME program funding to the City Council as presented and published with no changes. Minutes—Public Hearing February 16, 2010 Page 5 On roll call: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. It was moved by Gary Rankin and seconded by Mickye Johnson to authorize publication of the 30-day comment period (March 1-30, 2010) and submit recommendation to the City Council for a hearing April 19, 2010. Motion carried. F. ADJOURN Chairman Johnson thanked everyone for attending and adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tem Attachments FY2011 CDBG AND HOME PROGRAMS -COMMUNITY DEVELOPMENT BOARD RECOMMENDATIONS 1-15-10 CDBG Organization Subcommittee Activity Recommendation Cedar Valley Hospitality House $ 40,000 Daytime Homeless Shelter Program (Start-up) City of Waterloo 1 Engineering Department $ 25,000 FY2011 Sidewalk Repair Block Grant Program -Zone 10 City of Waterloo/ Leisure Services $ 34,000 Sullivan Park Play Structure-East 4th&Adams Street Clearance and Demolition $ 35,000 Demolition of Vacant Dilapidated Structures MoneyMap to Homeownership-Housing Education Consumer Credit Counseling Services of NE IA-#1 $ 6,120 Classes,Workshops MoneyMap to Homeownership-Seek Housing Consumer Credit Counseling Services of NE IA-#2 $ 5,000 Counseling Services Emergency Repairs $ 150,000 Emergency Repair for Single Family Rehabilitation Eye of the Needle(L.O.F.T.) $ 2,500 Provide clothing, basic needs and transportation General Program Administration (20%of allocation) $ 280,000 CDBG Administration 306/308/222 Walnut, new carpet. 306/308 Walnut laundry House of Hope $ 25,000 room Neighborhood Services $ 75,000 City Liaison with Neighborhoods Northeast Iowa Center for Independent Living $ 10,000 Operation Accessibility-Wheelchair Ramps Food Bank Capital Campaign -"Setting the Table of Northeast Iowa Food Bank $ 50,000 Hope"-Year 2 Operation Threshold -PR#4 $ 15,000 Weatherization-Plus Program Rehabilitation Administration $ 151,370 Rehabilitation Project Delivery Costs Single Family Rehabilitation $ 550,010 Single Family Owner-Occupied Rehabilitation Waterloo Commission on Human Rights $ 1,000 Fair Housing Outreach Coordinator TOTAL CDBG REQUESTS $ 1,455,000 1-15-10 HOME Organization Subcommittee Activity Recommendation City of Cedar Falls $ 75,000 Annual Allocation -HOME Consortium Tax Credit Projects $ 216,547 HOME Funds for approved Tax Credit Projects Affordable Homes-New Construction and Rehabilitation Iowa Heartland Habitat for Humanity (CHDO Request) $ 102,000 Activities Operation Threshold -PR#1 $ 20,000 Tenant Based Rental Assistance Program Single Family Rehabilitation $ 26,453 Single Family Owner-Occupied Rehabilitation Down Payment Assistance -First Time Home Buyers in Waterloo Housing Partnership $ 175,000 the CURA Area Administration (10%of allocation) $ 68,000 HOME Administration TOTAL HOME REQUESTS $ 683,000 •C %�� �i``C -J t ,"3e`iGti7(ftAti 5// U MINUTES COMMUNITY DEVELOPMENT BOARD MEETING February 16, 2010 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson, at 4:30 p.m. on Tuesday, February 16, 2010. Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Steve Schmitt, City Council Liaison; Perry Goodman,Neighborhood Services Coordinator; Ann Northey, Administrative Secretary and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the Agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING AND THE PUBLIC HEARING ON JANUARY 12,2010. Jim Carstensen indicated a small change to the Public Hearing minutes of January 12, 2010 to correct the name of E. J. Gallagher under those named as Also Present. It was moved by Jim Carstensen and seconded by Bernie Stroh to approve the minutes for both January 12,2010 meetings with the change noted. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application, Round 1 and Round 2. Rudy Jones stated activities have slowed for Round 1 due to the winter weather, however, soon spring work will be initiated. He reviewed the IDED monthly activity report on new construction, units completed and units sold. Rudy noted the Round 2 application deadline has been extended until May 2010. This gives us more time to get the new construction proposal submitted to IDED on 20 additional units. Sites being proposed are located in Summerland Park, Madison/Monroe Streets, Lafayette, East 8th and Sycamore Street areas. Price points with Summerland being from $165,000 to $180,000 and Madison/Monroe/Lafayette sites will be at $120,000 to $150,000. Offerings include 10 different styles of homes,ranging from ranch to two-story dwellings with all units 1,100 to 1,500 square feet, including basements and garages. Rudy also noted that half of the units built must be at the $150,000 price point. Black Hawk Contracting is proposing units at this level so this will be a good fit, and the other half will be utilized by Iowa Contracting Services. These proposals will be combined as one application and sent to the State for approval. Rudy Jones stated he would continue to submit a monthly report for Board review under discussion items. Minutes February 16, 2010 Page 2 2. Update on Rehabilitation/Relocation Specialist Position. Chairman Johnson indicated interviews are scheduled for this week. Rudy Jones noted once second interviews are completed, staff will meet with Human Resources and a recommendation will be made to the Council. 3. New Community Development Board Members. Rudy indicated final confirmation has been received from a couple applicants on their willingness to serve on the Board. Joel Harris and Anesa Kajta7ovic have agreed to serve on the Board and their names will be presented to the Mayor for review and approval. This would allow them to start in March for a new cycle. Chairman Johnson noted these appointments would fill Larry Oltrogge's and Elsie Duncan's vacant positions on the Board. The Chairman noted Jim Carstensen would be departing from the Board on August 31 st Rudy stated several other names have also been submitted and they have agreed to serve. 4. Neighborhood Stabilization Program update. Rudy Jones explained specific activities being considered under the Neighborhood Stabilization Program. He noted the staff completed various assignments to get this program up and running, We are aggressively trying to meet our obligations and are hopeful the program will be successful and productive with Habitat for Humanity. We are seeking sites to cluster units for the greatest impact. Discussion turned toward hard costs of the new construction portion of the program. Rudy noted the total amount of funds for the Neighborhood Stabilization Program is $850,000. Some administrative costs are provided. Rudy will submit a monthly reporting on this program. 5. Round 2—Multi-Family Rental Housing Funds. Rudy Jones indicated program applications are available on the city's website and through the office. We will also notify those applicants who applied for the first round. Applications are due mid-May. Rudy indicated the first round of Multi-Family Rental Housing funds was geared toward cities that lost units due to the floods of 2008. The second round is split into two sections: communities that lost units and communities that are taking advantage of the resources available,but did not have any losses. Bernie Stroh indicated we lost units in the flooding,just not multi-family units. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for January 2010. (Report attached.) It was moved by Bernie Stroh and seconded by Mickye Johnson to endorse the Rehabilitation Contracts for January 2010 as presented. On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Waterloo/Cedar Falls HOME Consortium—3-Year Renewal Process. Chairman Johnson indicated the City of Waterloo partners with the City of Cedar Falls to leverage additional money between the two communities. This is for a three-year period which expires June 30, Minutes February 16, 2010 Page 3 2011. Waterloo is the lead entity and we must initiate discussion to extend the Consortium. It was moved by Jim Carstensen and seconded by Mickye Johnson to renew the 3-Year HOME Consortium with the City of Cedar Falls. Motion carried. E. DISCUSSION ITEMS: Gary Rankin inquired about the affordability period for the Multi-Family Housing projects. Rudy indicated it would be a 10-year affordability period, which is mandated by the State. Rudy Jones indicated he would be traveling later this month with the Cedar Valley Coalition to Washington, D. C. to meet with elected officials and federal representatives regarding our regional and local projects. Rudy also mentioned meeting with the subcommittee to select a new target area to focus CDBG and HOME initiatives. G. ADJOURN MEETING The Chairman reminded Board members of the 5:00 p.m. public hearing. With no further business to come before the Board, the Chairman adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tem U) •0 `r,., (t) c c 4- L a) C a)C 3o o N c) •-- CD ti co O O I rO a t0O) N - ' ZO O Z j c ' N EA O O p Ot 0 Q• N O ti VAEA O O O ,c- -I- N N F U� wN Uw N U � � d L0 00N Q III C ¢ Z 0 N- 0 0 U a aX 7 a' I.-O L C 0 O 0 c a) 0 z � z z o v a) z p 0 O O Lam '- O U �- ---- U- --- --- - -- ----- V m (A Z U T r w a_ o a: Q p ¢ Q a W O W w w a a_ a a: co L. LN.. L c .ca .RI a) a) a) L L L O 0 0 O 0 O Y= 4 4- 03) a) (nQ c Cl) (/) N co N (0 O coco m a'a)w L1Jw a) a) (o c o m Et J 0 V) co N 0 co co -p V N C e so- a_ N a a_ w N m � m m s- 0 m 7 ? j jN N CV j . z z z o) co rn z E Q 1 (/) 1 JYYY Zr. c a/ Q Y ¢ U a3 c6 (0 0 • U v w222 w w w a a. co m ' 2 c � co E $ U o6. `' c o Q. o W E C a N L. d a () U 'C) (tea a. a) rn O o (n ,,, s w c 0 w b 2 o EZ NZ > > '� � Z m M -0 CO O C N• a C n E N U U ate.. 0 Ts L a) c c cs ) - i 0 nUz— ` E > 1- I- (%) O ) H J H MINUTES COMMUNITY DEVELOPMENT BOARD MEETING January 12, 2010 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson, at 4:30 p.m. on Tuesday, January 12, 2010. Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Members absent: Elsie Duncan. Also present: Rudy D. Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Steve Schmitt, City Council Liaison; Ann Northey, Administrative Secretary and Tim Jamison, Waterloo/Cedar Falls Courier. Chairman Johnson indicated the agenda has been amended to add Item D.4 under New Business: which is two Subordination Requests from Wells Fargo Mortgage. A. APPROVAL OF THE AGENDA AS AMENDED. It was moved by Bernie Stroh and seconded by Mickye Johnson to approve the Agenda as amended. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON NOVEMBER 17,2009 AND DECEMBER 15, 2009. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the minutes for November 17,2009 and December 15,2009 and place them on file. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application,Round 1 and Round 2. Rudy Jones reported that approximately one-third of all units in Round 1 are up in some capacity. It is anticipated that all 22 units will be completed by late summer, early fall 2010. Rudy Jones reported the application for the Round 2 -New Construction Unit Production funding must be submitted by March 1st. He noted staff will be working on this application so all timelines will be met. We anticipate proposals totaling a one million dollar allocation from the State. This could mean 15-20 more new housing units, depending on the price of the units. 50%of the funding must go toward units at $150,000 or less. Currently there are two building contractors interested in this project. Rudy Jones indicated he could provide the Board with a one-page monthly report to be used for discussion on these projects. The Board was receptive to this suggestion. 2. Update on Rehabilitation/Relocation Specialist Position. Rudy Jones indicated seven interviews were conducted to-date with six more scheduled. Several applicants will be called for second interviews. There are a number of good applicants and we hope to fill Minutes January 12, 2010 Page 2 the position in February. 3. New Community Development Board Members. Chairman Johnson indicated there is one vacancy to fill on the Board. Discussion was to fill three positions this year and replace Board members in this order: Board members willing to step down would be removed first, and the new Mayor and Council appointments should begin replacing the oldest serving members of the Board. Rudy Jones indicated that Elsie Duncan has already volunteered to step down from the Board as of January 2010. Rudy Jones stated a couple names are waiting to be presented to the Mayor for consideration as new Board members. Chairman Johnson asked for comment from other Board members concerning this process. Jim Carstensen indicated he was retiring in 2010 and would be willing to serve on the Board through August 31st, after which time he would be moving out of the community. Chairman Johnson indicated this request would be noted, as there will be several vacancies for the Council to fill. Gary Rankin questioned why new members have not been considered for our Board as interested parties have applied and names have been forwarded, is this not a priority? Rudy Jones indicated names have been presented several times and no action has been taken. Gary Rankin indicated he has discussed his position on the Board with Rudy Jones. Rudy indicated two positions should be filled within a month and that would get us back on the schedule of March appointments to replace Board members each year. Chairman Johnson indicated we would eagerly look forward to some new Board members and hopefully some female members. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for December 2009. (Report attached.) Bernie Stroh asked when are we going to move toward participation from homeowners on these rehabilitation projects,noting the Board recommended this months ago. Rudy Jones indicated we would move toward this in the next three to six months. We are quickly moving out of the flood recovery activities and will resume regular rehabilitation projects. Chairman Johnson indicated a good goal would be to work toward July 1st, which is the beginning of a new fiscal year, and we should have another Rehabilitation Specialist to lighten the workload. Board members concurred that a July 1st date be considered for the goal of obtaining homeowner participation on the rehabilitation contracts. Minutes January 12, 2010 Page 3 It was moved by Mickye Johnson and seconded by Bernie Stroh to endorse the Rehabilitation Contracts for December 2009 as presented. On roll call: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Neighborhood Stabilization Program Update. Rudy Jones indicated the Neighborhood Stabilization Program is a federally funded project through the State of Iowa,provided to address the housing crisis. Waterloo is under contract to receive $850,570.00 for a number of activities ranging from acquisition, rehabilitation, demolition, new construction, counseling and financial mechanisms. Rudy stated he is working aggressively with Iowa Heartland Habitat for Humanity to facilitate this program and working on environmental and contract documents. Habitat has identified four units to purchase, and offers were accepted on two of them. Rudy indicated he could also provide a detailed monthly report on this project. Rudy noted two properties were located in the 1100 and 1500 blocks of Leavitt Street, one in the 300 block of Lane and the other is 325 East Third Street. The report will explain the specific activity being considered whether it is acquisition for rehabilitation, acquisition for demolition, or acquisition for demolition and new construction. 3. Round 2—Multi-Family Rental Housing Funds. Rudy indicated these funds are being provided by the State for cities and COGS to access these funds for infrastructure improvements for new construction of multi-family units. We did not apply for the first round of funds, but are positioning ourselves to apply for the second round. We will do a public notice in the next couple of weeks. The deadline for this application is July 2010. Gary Rankin mentioned we were not listed as an entitlement city on Attachment K. Rudy Jones indicated we are an entitlement city, but may not have been listed since we didn't apply for the first round of funding. Chairman Johnson indicated this is a good point, and perhaps staff should verify our eligibility to apply for these funds. 4. Subordination Request form Wells Fargo Mortgage: a. Jennifer DeNeui—319 Monroe Street b. Adalene L. Collins—313 Monroe Street Chairman Johnson indicated down payment assistance was provided for both of these applicants. We have been notified that our mortgage was filed one day prior to the bank's mortgage on these properties. The bank is asking that we subordinate our mortgage so they can be listed in first position, which is the intent of the program. It was moved by Jim Carstensen and seconded by Mickye Johnson to approve the request from Wells Fargo Mortgage to subordination our position on each down payment assistance mortgage: a) Jennifer DeNeui of 319 Monroe Street and b)Adalene L. Collins of 313 Monroe Street. Gary Rankin inquired if these were the original mortgage filed, with no amendments. The Chairman Minutes January 12, 2010 Page 4 indicated we are subordinating on the original mortgage documents for both parties. On roll call: Jim Carstensen,Mickye Johnson,Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. E. DISCUSSION ITEMS: Nancy Gulick advised a notice was received today that CDBG funds would be increasing approximately 7%this year,which will provide an additional $90,000 to our projected allocation. She noted HOME allocations would stay about the same as the previous year. H. ADJOURN MEETING The Chairman reminded Board members of the 5:00 p.m. public hearing. With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, 4 7,K( Rudy D. Jones, Sec etary Pro-Tem • 11111111 IiIuL O N O O O OCD ` 00N O p• OO p e' pj e- r-. Ii 69 69 - 69 p p OO NNW irIni r- . � NpN •e- II C U OC ) a) U 'C oc ° c1AL-T-wj oQmo o U c c~i o ° Z a� a z U Ln m O a) m (..) mU U c - - m a.` E a F U a) = g a) a ` O C N o �) a rn Q a c a) U c 'y .` a 'U WCC 9 E _O a m C tII O O cNO 1O- -o U a) t/i w a) O N cu a)tri a) O 0- •W a - E mm L c m E N 3 • • ° 03 — a) a) E 6 ' E E - � o � � o � E '� rz o I co ici OJ Co ° cn I'iIIII W C E cc¢ 0 l'- ¢ �o CO o 111 rn Ill I 00 o 111111' a)U _ O OHIY a) LIII Q lli ` 11111 L1gIkJI R O p NO• -C c C 0- -) o0• FUi H m a)c c c++tv c v c > L. W .Q a nC� CO 2 ^= C a - J �0 ....1 a) a < a) w i m CO m C O m .... C �. F m OL a c .4; m m LL1 (� Ll. L 13 L 0 N U C .:° (13 CO E fi I.- a) O J MINUTES COMMUNITY DEVELOPMENT BOARD PUBLIC HEARING FOR CITIZEN INPUT FY2011 CDBG and HOME PROGRAM January 12,2010 Chairman Eric Johnson called the public hearing to order at 5:00 p.m. in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa. The Chairman stated the purpose of the hearing is to gain citizen input into the application process for FY2011 CDBG and HOME Program funding. The Chairman welcomed participants to the meeting, and indicated the Board members have copies of all applications before them. Board Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Chairman Eric Johnson. Also present: Steve Schmitt, City Council Liaison; Rudy Jones, Community Development Director; Nancy Gulick, Community Development Coordinator; Perry Goodman,Neighborhood Services Coordinator; Ann Northey, Administrative Secretary; Joni Hansen , Jason Holt and E. J. Gallagher, Cedar Valley Hospitality House; Barb Prather,Northeast Iowa Food Bank; Billie Allen-Williams and LeKeisha Veasley of Operation Threshold; Tim Jamison, Waterloo/Cedar Falls Courier; Danielle Rohret, Community Development; Patricia King, Eye of the Needle; Paul Huting and Rick Curran, Leisure Services Dept.; and Roxanne Fuller, Consumer Credit Counseling Services of N.E. Iowa. A. APPROVAL OF AGENDA It was moved by Jim Carstensen and seconded by Bernie Stroh to approve the agenda. Motion carried. B. RECEIVE AND PLACE ON FILE AFFIDAVIT FOR PROOF OF PUBLICATION FOR NOTICE OF PUBLIC HEARING Chairman Johnson indicated a copy of the display ad published in the Waterloo/Cedar Falls Courier on Wednesday, January 6, 2010 announcing the public hearing was available for review. It was moved by Mickye Johnson and seconded by Bernie Stroh to approve and place on file the affidavit for the notice published in the Waterloo Courier. Motion carried. C. OPEN PUBLIC HEARING It was moved by Bernie Stroh and seconded by Gary Rankin to open the public hearing. Motion carried. Minutes January 12, 2010 Page 2 Chairman Johnson indicated this is the first of two public hearings held before the Community Development Board. A final public hearing will be held before the Waterloo City Council. This is federal funding coming to the city from the Community Development Block Grant(CDBG) and HOME Program funds. A variety of applications were received prior to year-end. They have been compiled into a booklet for the Board to review. The Chairman informed applicants they may provide additional information at this time not included in their application or answer questions the Board may have concerning their application. The Chairman explained that following this hearing process the subcommittee will meet and make their recommendation to the full Board. The recommendations will be published and then a second hearing will be held in February, giving applicants another opportunity to be heard. After the February hearing, the Board will make a final recommendation to the City Council, which will be published for a 30-day comment period. The Council will hold a final hearing in April to approve or recommend changes to the Board's recommendations for funding. At this time the Chairman opened the hearing for comments and asked participants to identify themselves at the microphone, stating their name, address and project request. The Chairman reminded participants that each application will be read and noted there was no necessity to read applications to the Board. He indicated the subcommittee may be contacting applicants for additional information during the review process. Perry Goodman,Neighborhood Services Coordinator for the City of Waterloo Neighborhood Services Department, thanked the Board for past CDBG funding and inquired if there were questions concerning his application. He noted that Neighborhood Services is seeking funding for an additional part-time staff person as a Neighborhood Specialist for two days a week. The primary job description would be to assist with data collection. Other duties would include on- going surveys and the development of what is called a thematic atlas, which would be housing focused. Public surveys would be conducted based upon the needs of other departments. Data collection would be on-going and this information would supplement the 2000 and 2010 census, providing grassroots information. Paul Huting, Director of Waterloo Leisure Services Department indicated the play structures in Sullivan Park are over 15 years old. Rick Curran, from the facilities department, recommended these structures be replaced as they do not meet current standards for playground safety. Paul Huting indicated they propose to match the $40,000 in funds requested with another $30,000. He noted they were asking the Council for$80,000 for the upcoming year to spread throughout 50 city parks. Board members inquired what age groups utilize the parks, and have any surveys been conducted. Paul Huting indicated they could conduct such surveys, and noted considerable activity has taken place at Lafayette Park where extensive renovations were made utilizing funds from a Brownfields Grant. The neighborhood and community changes when you upgrade the play equipment in a park. Minutes January 12, 2010 Page 3 Patricia King, representing Eye of the Needle, responded to a question from Jim Carstensen on the transportation item listed in her application. Ms. King stated they would offer transportation to and from agencies such as Jesse Cosby, Peoples Clinic, etc. for those who are unable to provide that service. Ms. King noted they house an increasing number of homeless and indigent clients who are searching for jobs. Roxanne Fuller, Consumer Credit Counseling Services of Northeastern Iowa spoke on behalf of two proposals; one for the MoneyMap to Homeownership for Housing Education Classes and Workshops and the other to seek Housing Counseling Services. Chairman Johnson inquired if the homeownership proposal is geared more toward housing education. Ms. Fuller indicated they assist individual clients with mortgage and credit issues or trying to purchase a home, and working them through these processes. Jason Holt, Cedar Valley Hospitality House indicated their request was for$127,000 to start-up and provide a daytime homeless shelter program. Jim Carstensen inquired what matching funds or grants are included to help leverage funds and finance this program. Jason Holt stated approximately $12,000 - $25,000 in assistance will be received through other organizations and individuals. Chairman Johnson noted as their application was laid out it appears they are asking the Board to fund 100% of their request. Joni Hansen, also representing Cedar Valley Hospitality House, responded they were not asking for 100% assistance. They are applying for another grant in March. They have also received funding from the Gallagher family foundation and several area churches and individual donations. To date approximately$7,000 has been received in donations since they opened December 15, 2009. Ms. Hansen noted the house they wish to rehabilitate is located on Independence Avenue. The owner of that property has offered to donate the house if money can be received to rehabilitate it. Jason Holt indicated the $127,000 is for the rehabilitation of the house. They have a temporary setting at this time and the $7,000 received to date supplies operating costs for these months of transition. He noted the $127,000 request would help them refurbish and rehabilitate the house. Part of the funding request is also for a program coordinator. Chairman Johnson stated this project has merit and looks very interesting. He questioned the funding source after this year; as the Board is not a long term funding stream. Minutes January 12, 2010 Page 4 Jason Holt stated we only anticipate requesting approximately$10,000 per year from the city. Most of the funding will be through private donations and matching funds from organizations and other individuals. Jim Carstensen indicated the homeless problems are very severe and there hasn't been many places for them to go during the daytime hours. Other metro cities have implemented similar programs. Jason Holt stated there are no other cities in Iowa providing this service, but larger metropolitan areas do have hospitality houses, providing one-stop shops and resources for the homeless and indigent people. There will be telephone, Internet access, laundry and shower facilities available to assist them to move toward getting into their own residence. Joni Hansen indicated if the $127,000 request is more than the Board would consider reasonable for the start-up project, they would gladly accept less funding for their project. LaKeisha Veasley of Operation Threshold, spoke on behalf of the CASH Course Expansion— Financial Literacy Programming. This program has been offered for several years, but the demand has increased with the troubled agencies. Most clients come from referrals and they provide individual and group counseling. Ms. Veasley reviewed the training materials they utilize. Board members requested a copy of their training materials and the syllabus they follow for their training program. Barb Prather,Northeast Iowa Food Bank indicated their project is at the halfway point of their Capital Campaign. Ms. Prather indicated their fund raising has almost reached $3 million. A Homeland Security application is being submitted to assist with the development of their human services campus, as the Department of Corrections and Operation Threshold will also be located on this site. Chairman Johnson asked for further comments from the public. None were received. D. CLOSE PUBLIC HEARING The Chairman called for a motion to close the hearing. It was moved by Mickye Johnson and seconded by Jim Carstensen to close the public hearing. Motion carried. Chairman Johnson indicated the total number of CDBG requests received this year are slightly over$3 million. We project that our funding will be close to $1.4 million, which is an increase over last year. We are grateful for this increase since during the past ten years we have experienced decreases in our funding. HOME funds total approximately $850,000 in requests and we project the receipt of approximately $600,000. Minutes ' • • ' January 12, 2010 Page 5 E. PUBLISH INITIAL SUBCOMMITTEE RECOMMENDATIONS ON FEBRUARY 7, 2010 PRIOR TO NEXT HEARING. Chairman Johnson indicated a motion was necessary to publish the initial subcommittee recommendations prior to our next public hearing on February 16, 2010. It was moved by Bernie Stroh and seconded by Gary Rankin to publish the subcommittee recommendation for the use of CDBG and HOME Program funding on February 7,2010 prior to the next hearing scheduled for February 16,2010. Motion carried. The Chairman stated the subcommittee members would be meeting at 10:00 a.m., on Friday, January 15, 2010. F. ADJOURN Chairman Johnson thanked everyone for attending and with no further business adjourned the meeting. Resp fully sub ' ed, Rudy D. J es, Se retary Pro-Tern