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HomeMy WebLinkAbout2009 7( 9)/v/-rx,e / JO MINUTES COMMUNITY DEVELOPMENT BOARD MEETING December 15, 2009 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, December 15, 2009. 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;Noel Anderson, Community Planning & Development Director; Steve Schmitt, City Council Liaison; Ann Northey, Administrative Secretary and John Rooff, Black Hawk Contracting. A. APPROVAL OF THE AGENDA. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the Agenda as proposed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON NOVEMBER 17,2009. Minutes were not available and will be approved at the January meeting. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application,Round 1 and Round 2. Rudy Jones reported that of the 22 units that the city was awarded funds for new construction down payment assistance, 13 units are under construction with five units completed. Four of those units have been sold with approximately 12 applicants being pre-approved. Construction has been proceeding well and the numbers will pick up as we move throughout the year. Rudy indicated an informational meeting would be held on January 7th to see which local developers are interested in participating in Round 2 of the State funding. Our proposal must be submitted to the Iowa Department of Economic Development by March 1,2010. We are hoping for continued interest from current developers and hopefully there will be interest from new ones. Gary Rankin inquired about the maximum limits and the income limits for the homeowners. Rudy indicated most of the eligible applicants are income driven. Gary Rankin commented that the program administrators should be given feedback on the possibility of increasing the dollar amount, specifically due to the availability of lots, so they can build $180,000 houses. In Round 2 with half of the units being $150,000 it makes it difficult for the developers to put something together, get the lots and put the whole package together and make it a nice home. Perhaps we could go up to $200,000 and still utilize the $50,000 grant. Rudy indicated this was proposed to IDED and we are in a situation where the primary contact is Terry Minutes December 15, 2009 Page 2 Vestal and he is retiring this week. He has not responded to our email correspondence. We could raise this question again tomorrow on our conference call. Chairman Johnson asked if this cap of$150,000 was a State requirement. There is infill being done in the Rath area, and this amount isn't a problem in this area. However, with the new construction in the Summerland development, the original homes built are around $220,000 and those homeowners were concerned that we are subsidizing these houses at $180,000. Now, if we are going to try and subsidize at $150,000 and put those homes in that area, we could run into problems. Noel Anderson stated they proposed to the State that in the Enterprise Zone, which is another State program,that they get the tax credits up to $140,000 per unit, regardless if the units were at$220,000 they would only get credits up to the $140,000 amount. This was proposed as a change in their wording so more expensive houses could be built but the credits would be eliminated and the down payment would only be eligible for up to the $150,000 amount. The State has not responded to this suggestion. Noel indicated this would make sense to do it the same way for the $180,000 houses, as this is how some of the other State programs are set up. Nancy Gulick interjected that we have to remember this is all CDBG Jumpstart money, which is driven by 70% of the funding must serve low-to-moderate income persons. The reason they are getting by with dealing with people at 100% is they are looking at those people in an"urgent need" category. We cannot go below what the low-to-moderate income assistance must be for people. This is part of the equation and we cannot build $200,000 homes because people who can afford a mortgage for this type of home will be over the income limits for the program. Gary Rankin expressed his concern from a developer's standpoint. If you try and build something new, it must be of a certain value regardless of what someone can afford or the income limits. Why not make the income limits fit what your program is trying to do. Nancy explained another problem that she has observed through this process is that the whole State is under the same guidelines. As an example, an$180,000 home in one town will certainly differ in value if built in another city. This limit has been put on the whole state, versus specific areas or entitlement cities. There are flaws in the program. Gary Rankin stated he understands the guidelines, but from a developer's standpoint, this is a tough program to take advantage of in many areas due to the cost of the land and construction costs. We want a development that is nice and something to be proud to have in the community, and as a neighbor, etc. Some areas, if we can get the land for next to nothing, you would only want to build a$150,000 house there. Rudy stated this is a challenge with all of our programs and we should continue the same dialogue with the Neighborhood Stabilization Program, which also has stringent guidelines. Mickye Johnson indicated we had a limited amount of time to put these Jumpstart programs together and implement them, as it was quickly given to the State. Chairman Johnson asked to follow up on old business under new construction with John Rooff, even though it is not on the agenda. Is there an update and resolution of last month's discussion concerning the property Mr. Rooff purchased from David Deeds and the cost of additional infrastructure improvements. Minutes December 15, 2009 Page 3 Also, there were problems with the cost of the units from the Waterloo Housing Authority new construction sales and appraisals lowering comps for his new construction units. Rudy Jones explained discussions with Ethel Washington and the attorney. It was understood that John Rooff s building project would be similar to previous plans with David Deeds,noting trees had to come out and an alley put in place to eventually develop the entire area. Originally, HOME dollars were being considered for this project area, but with the new State allocation of funds being considered, Rudy stated the State is not allowing accompanying programs to further subsidize projects. Rudy indicated he would need another month to research what is available to make this project happen. Prior to the New Construction Program, our subsidy was $10,000 per lot. Rudy stated there was dialogue in the past on coupling programs together for new construction and he needed to confirm this could be allowed. Chairman Johnson inquired if this is not allowed, is there another way to do this project,whether we pay for some of the infrastructure improvements or reimburse for these costs. Rudy indicated this would be part of his research to come up with options for John Rooff. John Rooff indicated he has continued discussions with Rudy on this matter as his project is capped at $117,000 therefore, he cannot continue to build in this area at this price. Mr. Rooff noted with the new school being constructed, this is a prime area in which to build. If the lots could be transferred for free from the City, this would be a different matter, noting other circumstances and the market has upset the appraisal process. The Chairman indicated Rudy is working on a solution to this matter and will report next month. 2. Update on Rehabilitation/Relocation Specialist Position Rudy indicated 21 applicants applied for the position. He will begin reviewing those applications with the Human Resources Department tomorrow,to select a number of applicants to interview. It appears we have some good applicants to consider. It is hopeful that an appointment will be made within 35-40 days with someone in place by February. D. NEW BUSINESS: 1. New Community Development Board Members. Rudy reported the request to fill the vacancy of one member and rotate those members with expired terms has been ongoing. Now is a good time to follow up on this with the new administration coming in. Rudy indicated he has four names for consideration, which he has submitted to the Mayor's office. If there were Board members who wish to consider a transition in moving off the Board, now would be the time. Your tenure is truly appreciated. All Board members will be replaced over the course of time, as technically under ordinance,the Board members are allowed to serve two three-year terms. Members can go off and be reappointed at the Mayor's discretion. Chairman Johnson indicated a transition over the next two years would be appropriate, and an email should be sent out to the Board members for their input on timing to remove them from the Board, obviously the oldest expired terms should be replaced first. Jim Carstensen indicated he would be retiring as of August 31, 2010 and may be relocating to a different Minutes December 15, 2009 Page 4 area. He indicated he would remain on the Board until that time. Jim Carstensen also indicated that Morgan Wortham had expressed interest in serving on the Board, and wondered if her application has been considered. Rudy indicated that Morgan has communicated that and there are four or five other names presented prior to her request. 2. Endorse Rehabilitation Contracts for November 2009. (Report attached.) It was moved by Mickye Johnson and seconded by Gary Rankin to endorse the Rehabilitation Contracts for November 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. 3. 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. There are constraints and income concerns, and 25% of the funds must be utilized in acquiring properties that were foreclosed upon. We may designate entities to assist with this program or we can choose a partner to work with us. Rudy asked the Board to consider a contract with Iowa Heartland Habitat for Humanity to facilitate this program. Habitat is assisting us through the CHDO program and they already have a market to address the low-moderate income clientele. Chairman Johnson inquired that Habitat would acquire foreclosed properties for rehabilitation and resale? Rudy indicated they would acquire foreclosed properties for the purpose of demolition to eliminate blight, demolition for new construction or acquisition for rehabilitation or acquisition for the purpose of demolition and new construction. The challenge is the foreclosed properties are coming on line and leaving the market quickly. Mickye Johnson inquired about the 25%of resources going to foreclosed properties and how many foreclosures are in Waterloo at this time? Rudy indicated these properties are being snatched up quickly, so the number is always moving. Linda Morgan,Director of Habitat for Humanity has been working with a number of realtors to partner with them and keep this process from becoming highly competitive. Gary Rankin questioned the need for this process and indicated he didn't want to compete with private enterprise. Rudy stated this is another federal program, sponsored through the State, to address the housing foreclosure crisis. We, as an entitlement city, received the funding to get some of those houses that have been foreclosed off the market and offer them back to low- and moderate-income families. Bernie Stroh indicated one of the problems he has seen with the private sector is that many properties are bought up,but then nothing is done with them, and they continue to be a blight on the neighborhood. Rudy stated several examples of actual housing projects being considered for this program located on Minutes December 15, 2009 Page 5 Independence Avenue, Irving Street, Lane Street and Lafayette Street locations. Environmental and other property options must be considered to complete these projects, hoping to cluster projects to gain the most impact. Chairman Johnson noted that 50% of the funding must be committed by March 2010, so we need to consider this contract for approval. It was moved by Bernie Stroh and seconded by Mickye Johnson to approve a contract with Iowa Heartland Habitat for Humanity to carry out activities described in the Neighborhood Stabilization Program application. On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 4. Confirm Board email on loan terms for Liberty Manor Apartments. Nancy Gulick summarized that CommonBond and Liberty Manor will both close next week on their tax credit projects. Liberty Manor wanted their loan terms changed to 1% interest, amortized for 30 years with a balloon payment after 20 years, subject to cash flow. Nancy made the Board aware that both loan payments for CommonBond and Liberty Manor will be subject to cash flow. Chairman Johnson inquired if we were now receiving payments from Marsh Place? Nancy responded yes, we are receiving payments of interest only. Nancy reported that Liberty Manor wanted their loan structured as amortized and not just interest only, so they will be repaying their loan. It was moved by Jim Carstensen and seconded by Mickye Johnson to approve the loan terms for Liberty Manor at 1% interest, amortized for 30 years with a balloon payment after 20 years, subject to cash flow. On roll call: Jim Carstensen,Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye. Gary Rankin abstained. Nays: None. The Chairman declared the motion carried. E. DISCUSSION ITEMS: 1. CAPER—HUD Review. Chairman Johnson reviewed correspondence from HUD Omaha concerning the final review of the Consolidated Annual Performance and Evaluation Report(CAPER) for Program Year 2008. The Chairman and Rudy commended staff for their good work on these projects throughout the year. 2. FY2011 Funding Cycle—Application Review. Chairman Johnson indicated that CDBG and HOME Program applications are due December 31, 2009. The subcommittee will meet on Friday, January 8, 2010 from 10:00 to noon to review applications before the first public hearing. Subcommittee members are Gary Rankin, Bernie Stroh and Eric Johnson. John Rooff addressed the Board concerning some lots on Lafayette Street, and was concerned with appraisals on these properties as well. Mr. Rooff mentioned a number of programs that have been offered Minutes December 15, 2009 Page 6 and are not working, but the new construction program in Waterloo is working, and the Board has done a good job and we are producing. There are a lot of people who need to get into $120,000 homes. It is important that we do not over-build in Waterloo and make these homes affordable for the clientele. John Rooff noted that the home on Monroe will not appraise for more than$117,000 or$118,000 and the woman buying will be out unless we chose to sell at that price. Mr. Rooff stated they will go ahead and close the house at $117,000 and take the hit,but we are hoping to base this on the future of this program. Mickye Johnson questioned Mr. Rooff, stating if the school comes down and the city deeds the property to you for$1.00 per lot,then that would allow you to sell the other lots at$117,000. Mr. Rooff agreed that he could do that, with$23,000 in lot costs that played a part in the cost. Once the school comes down everything will be cleared in the demolition and then all that needs to be done on the lots is run sewer and water. Jim Carstensen asked when the school building would be torn down. Noel Anderson indicated the old school is a privately owned building and the city is working to acquire it. John Rooff explained the tax credits were on hold for the houses he has built until two more homes are constructed. H. ADJOURN MEETING With no further business to come before the Board, the Chairman adjourned the meeting. 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Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Also present: Nancy Gulick, Community Development Coordinator; Mark Boesen, Manager of Rehabilitation Services;Noel Anderson, Community Planning &Development Director; Steve Schmitt, City Council Liaison; Donna Lesyshen, Waterloo Housing Partnership Coordinator; and Ann Northey, Administrative Secretary. A. APPROVAL OF THE AGENDA. It was moved by Mickye Johnson and seconded by Elsie Duncan to approve the Agenda as proposed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON OCTOBER 20,2009. It was moved by Jim Carstensen and seconded by Bernie Stroh to approve the minutes for the regular meeting on October 20,2009 and place them on file. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa, New Construction Unit Production Application. Nancy Gulick indicated one unit has been sold and closed in the Summerland Farms project area, and the new construction Round 2 information is now available. We will receive approximately$1 million for this project. Down payment assistance will be provided at 25% and letters have been sent to developers and realtors with this information to prepare their proposals. It was the consensus of the Board to keep this item on the agenda for updates each month. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for October 2009. (Report attached.) It was moved by Elsie Duncan and seconded by Mickye Johnson to endorse the Rehabilitation Contracts for October 2009 as presented. On roll call: Elsie Duncan,Jim Carstensen,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Transfer of HOME funds. Chairman Johnson indicated a memorandum from Donna Lesyshen requested the transfer of$75,000 of HOME funds, originally allocated for the single-family rehabilitation program, be transferred to the Down Payment Assistance program line item. Minutes November 17, 2009 Page 2 Nancy Gulick stated the down payment assistance funds have been utilized more rapidly due to the homeowner tax credits currently available to first time home buyers. Therefore,the majority of this year's allocation has almost been depleted. The Rehabilitation Department has been working on flood projects, utilizing disaster recovery funding, and we also received additional stimulus funds for rehabilitation. With these additional resources, Mark Boesen, Manager of Rehabilitation Services, believes we are in a position to transfer some rehabilitation funds to the down payment assistance program this year. Chairman Johnson inquired how far these funds would take us into the new year. $75,000 could potentially provide approximately 15 more down payments of$5,000 each. Nancy Gulick indicated we have approximately $373,000 in stimulus funds available for rehabilitation and emergency repairs. This funding source has given an extra boost to the rehabilitation program and because of that source this year,the Rehabilitation Manager was comfortable with the transfer of funds to the down payment program. Mickye Johnson inquired if additional funds would be needed for the down payment program and how fast are we utilizing the stimulus funding. Nancy responded there might be an additional request for down payment funding, however, she was not sure of the source of funding. Nancy stated stimulus funds must be used within two years. Nancy stated stimulus funds can be combined with lead grant funds because it is also CDBG funds. We currently have a couple of combined projects underway at this time. Mark Boesen indicated there will be five stimulus projects underway soon, and with the balance of stimulus funds available at roughly $275,000+, many rehabilitation projects will continue to be done. Following discussion,it was moved by Elsie Duncan and seconded by Jim Carstensen to approve the request to transfer$75,000 from the Single-Family Rehabilitation line item to the Waterloo Housing Partnership Down Payment Assistance line item. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Proposal from Black Hawk Contracting to acquire property located in the 1000 block of Lafayette and Sycamore Streets for IDED new construction activity. Chairman Johnson indicated correspondence was included in the packet and that he spoke with John Rooff of Black Hawk Contracting regarding another issue, which may be related. Nancy indicated the letter confirmed for Black Hawk Contracting's lender, that the new construction housing units would be awarded money for down payment assistance. John Rooff stated this isn't the issue. Mr. Rooff said he does need something from Community Development that says he is awarded seven houses,because the IDED program requires you to front the money for the entire duration and you only get paid once it closes. Mr. Rooff indicated the other issue is a problem that has come up on the Madison and Monroe project. 18 homes have been built in the 4th ward in the last three years. Homes sold through the Waterloo Housing Minutes November 17, 2009 Page 3 Authority program were sold for$117,000 and used federal funds to buy it down, as they were actually $125,000. Mr. Rooff stated when we look for comps we are down for what these homes actually sold for, $117,000. He noted lots were purchased so David Deeds could pay the money back to Community Development. Then the city requested that Rooff put in an alley, sidewalk, remove trees and approximately $13,000 of infrastructure improvements, which they did. Now when the lot is priced,just based upon the infrastructure improvements, we are over the appraisal capability for these homes. Mr. Rooff indicated he cannot sell the two homes that were built beyond the $117,000, and requested to have the grant money back on those four lots. He suggested once the school building comes down, he will purchase it from the city, as Noel has indicated, so the infrastructure costs won't be an issue and they can stay within the $117,000 that the comps are bringing in. Mr. Rooff stated this is the only way he can keep this program going. Further discussion continued on the process with additional funding coming in the spring. Chairman Johnson indicated to summarize, John Rooff bought out David Deeds' properties at$22,800 so Mr. Deeds could repay Community Development. The City made John Rooff put in $13,000 of infrastructure costs and the WHA house appraisals are listed at$117,000, which is throwing off his comps. John Rooff indicated he wants to continue to build, but it is going to take two or three years to get those comps back up. Discussion continued on improving the appraisals on the Waterloo Housing Authority house sales. Chairman Johnson indicated that over the years we have tried to get several developers to invest in the area. Mr. Rooff's company has been trying to work with us and has provided a number of structures, where others have failed. John Rooff indicated their project is done in this area of Waterloo unless something can be worked out. All of the lots are ready to build on and the money is there to build two more houses. Nancy Gulick stated there are other cities that have experienced similar issues, and they have been discussing this with IDED. There may be a solution, but for now we don't have an answer. Chairman Johnson indicated if the Board has interest,we could direct staff to explore how to make this happen and report back at the next meeting. Nancy inquired about the appraisal price. John Rooff indicated he would sell the properties for$117,000 - $118,000 if he could have infrastructure assistance. Following considerable discussion, it was the consensus of the Board to have staff move forward, investigate John Rooff's claims and come up with a proposal to try and make this work out. Chairman Johnson indicated the agenda item is to review the proposal from Black Hawk Contracting to acquire property located in the 1000 block of Lafayette and Sycamore Streets for IDED new construction activity. Nancy indicated we are requesting a recommendation from the Board to forward this request to Council for purchase. • Minutes November 17, 2009 Page 4 It was moved by Bernie Stroh and seconded by Mickye Johnson to submit this request to the City Council. Motion carried. Chairman Johnson indicated the third item was a letter to award the funds. Nancy indicated staff is working on this. 4. Set Board Meeting dates for 2010. It was moved by Mickye Johnson and seconded by Elsie Duncan to set the Board meeting dates for Year 2010 as proposed for the third Tuesday of each month,except for the month of January when the meeting will be held on January 12,2010, due to the Martin Luther King Jr. holiday. Motion carried. 5. Select Board Subcommittee for FY2011 CDBG & HOME Funding Cycle. Chairman Johnson indicated one subcommittee member from the previous year will remain on the committee and two new Board members will be appointed to serve. Bernie Stroh volunteered to serve again along with Gary Rankin and Eric Johnson. The Chairman indicated the City's new website, under Community Development Board and Staff indicates term expiration dates. All Board terms have expired and we need to work on getting a new Board member to join with some fresh ideas. Several Board members indicated they had submitted names or recommendations to the Mayor's office for review. Chairman Johnson asked Council liaison to look into this matter. E. DISCUSSION ITEMS: 1. Proposed Schedule for FY2011 Application Process Nancy indicated this item is to schedule the first subcommittee meeting on Friday, January 8, 2010 from 10:00 to noon to review applications before the first public hearing. Subcommittee members confirmed this date and time. 2. Rehabilitation Specialist Position Board members expressed concern with the length of time this process is taking to hire a new Rehabilitation Specialist. Nancy indicated she would check with Rudy and report back on this matter. H. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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J � CA a' -oi U F, - • at_444-1:0- eg-firp yi/3/i-A/(14Z ,6,&/.r/e-`x , i.2/-7�/�/ MINUTES COMMUNITY DEVELOPMENT BOARD MEETING October 20, 2009 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, October 20, 2009. Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Absent: Elsie Duncan Also present: Nancy Gulick, Community Development Coordinator; Mark Boesen,Manager of Rehabilitation Services;Noel Anderson, Community Planning& Development Director; Steve Schmitt, City Council Liaison; Ann Northey, Administrative Secretary; and Kevin Shaw, Pillar-to-Post. A. APPROVAL OF THE AGENDA AS AMENDED. It was moved by Mickye Johnson and seconded by Bernie Stroh to amend the agenda to add under OLD BUSINESS Item 4. Participation on Rehabilitation and Emergency Repair Programs and add Item 4. under NEW BUSINESS: Select Subcommittee to discuss new and on-going programs. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON SEPTEMBER 15,2009. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the minutes for the regular meeting on September 15,2009 and place them on file. Motion carried. C. OLD BUSINESS. 1. Update on State of Iowa,New Construction Unit Production Application. Nancy Gulick indicated one closing is scheduled for October 30, 2009 at 309 Monroe Street. Mark Boesen reported the Summerland Park project is progressing. He stated the contractor is completing the finishing work on one unit,the drywall in another one and there are five dwellings in various stages of completion. A foundation was poured on the sixth one last week. These homes are all pre-sold. It was the consensus of the Board to keep this item on the agenda for updates each month. 2. Update status of the Section 108 Loan Guarantee. Noel Anderson stated that Crystal Distribution is moving forward with their project,the environmental review is nearing completion and HUD in D.C. is reviewing the loan documents. Noel added the loan may be approved within the next month. Chairman Johnson indicated this item would remain on the agenda until finalized. Mickye Johnson inquired if there were other opportunities for the Section 108 Loan? Minutes October 20, 2009 Page 2 Noel indicated staff has been brainstorming on that idea,but they are hoping to get through the Crystal Loan before pursuing other prospects. 3. Update on Tax Credit Projects. Nancy Gulick reported that Common Bonds has completed their environmental review and requested release of funds from the state. They are hoping to have land acquisition by December 15, 2009. Nancy Gulick commented that Liberty Manor did get their gap funding for the tax credits through IFA and will be progressing on their project. Noel Anderson mentioned two other tax credit projects that did not come to the Board. 4. Participation on Rehabilitation and Emergency Repair Programs. Nancy Gulick stated a Board member requested discussion on more homeowner participation in the Rehabilitation and Emergency Repair loans. Nancy distributed information derived from the last Rehabilitation Subcommittee meeting (approx. 4/24/08) on suggested homeowner participation. Nancy stated,to her knowledge,these suggestions have not been presented to the full Board. Bernie Stroh stated we are the only major entity in Iowa that does not have homeowner participation to stretch the monies. We run out of funds every year and the subcommittee believes this would be a way to extend those funds. Nancy recalled,that Rudy was checking with the banks on their participation to approve the loans. Discussion continued on which bank would be servicing the loans. Mickye Johnson asked that an update be provided at the next meeting on the status. Mark Boesen asked if the Rehabilitation Subcommittee could meet before the next Board meeting to review this and go through the program again. Mark noted,with the current economic atmosphere,we should look at some of the participation levels. He also asked if Emergency Repairs over the $4,000 limit could have low-interest loans available to cover the additional costs. On large roof projects the homeowners are trying to come up with the cost or we are not doing their roof. Many jobs are not getting done, as the homeowner cannot provide the funds. Banks will not process their loans, but if we had a loan program and could arrange for loan payments at$50.00-$75.00 a month on those going over our threshold, we would be able to assist a few more households. The Rehabilitation Subcommittee members were Gary Rankin,Mickye Johnson and Bernie Stroh. Gary Rankin indicated previous discussions were not in favor of in-house loan financing, as we did not have the personnel and time commitment to manage it. The Chairman noted this was done before,but not very well. Mark Boesen explained that we had a Board attorney, Bill Smith,years ago who made many contacts and spent countless hours trying to collect on the past due accounts. Our Board at that time would not foreclose on any low-income homeowners, for not making their payment. In many instances,we were the 2nd or 3rd mortgage on the property. Minutes October 20, 2009 Page 3 Gary Rankin indicated we should not be in the business of loaning money unless we have intentions of getting it back, and if not,then it is a grant. Bernie Stroh stated that was the idea of getting the bank involved. Nancy indicated we used to receive approximately $100,000 a year in program income from our loans and we are missing out on that opportunity to assist other clients. Chairman Johnson indicated, the Board would need to pursue collection of these loans, and if at least 50% are collectible,that provides more funding for the program. We also need to determine that this action would not be a drain on staff time. Nancy stated we were inquiring to get a bank to prepare the paperwork up front and set up the loan payments, and then we could service them through our office. Nancy noted having the bank do the preliminary work would give us an idea up front what the homeowner could afford to pay. Nancy stated we could always do deferred loans on the rehabs. If the house was sold, or the owner dies or moves, then the funds are paid back to us. Chairman Johnson inquired if this proposal is what the committee was recommending? Bernie Stroh stated a lot of work and discussion went into this proposal. Discussion continued on the current economic climate, the fiduciary responsibility of the Board to extend funds as far as possible and the need for the Rehabilitation Subcommittee to review the whole proposal again, and discuss the option of offering low- interest loans on Emergency Repairs that exceed the $4,000 limit. Gary Rankin stated the other issue is whether the staff can follow through and put the program into action. This has not been a priority because of the other programs the past year. Chairman Johnson stated it seems to be a consensus to table action on this proposal for one month. It was moved by Bernie Stroh to table action on this item and give the subcommittee time to revisit the information along with members of the staff and report back with a final recommendation. Motion seconded by Jim Carstensen. Motion carried. D. NEW BUSINESS: 1. Approve Analysis of Impediments to Fair Housing. Nancy Gulick stated this is the fmal product from the consultants, Mullin& Lonergan. She noted they have provided good data and suggestions that the Board may wish to carry out. Chairman Johnson indicated he agreed the data was interesting, however some recommendations were general in nature. Nancy indicated we are asking the Board to approve this document for submission to the City Council for adoption, and then it will be sent to HUD. Chairman Johnson commented on the notations made concerning the Human Rights Commission. Minutes October 20, 2009 Page 4 Nancy Gulick stated we are required to do an Analysis of Impediments to Fair Housing, and we are required to do Fair Housing,however,we are not required to fund the Human Rights Commission. Chairman Johnson asked if we were adopting this to be passed on to the Council or are we adopting it and the recommendations in it? Who will be in charge of implementing these recommendations? Nancy responded that some of the changes should be implemented. These are obviously recommendations, but some of the things we can change. Once approved by the City Council, HUD will simply acknowledge that we have complied with the provision to provide this document. Discussion continued on whether we were approving or accepting the information provided. Chairman Johnson indicated we need a motion to accept the report and submit it to City Council. Questions arose on who would enforce the recommendations set forth in the Analysis of Impediments to Fair Housing. It was moved by Jim Carstensen and seconded by Bernie Stroh to accept the Analysis of Impediments to Fair Housing and pass it on to the City Council for their approval and submission to HUD. Motion carried. Chairman Johnson asked if there were recommendations from the Board to deliver this information to other departments or staff, or utilize this as reference only. Councilman Steve Schmitt suggested a Work Session with the City Council to discuss the recommendations set forth by the consultant. It was moved by Jim Carstensen and seconded by Mickye Johnson to encourage and request a Work Session with the City Council to review the recommendations set forth in the Analysis of Impediments to Fair Housing. Motion carried. 2. Award Contract Single Family New Construction Unit Production—Property Inspection. Nancy Gulick indicated that Requests for Proposals were submitted to five contractors. One proposal was received from Kevin Shaw, Pillar-To-Post. Mr. Shaw also provided a contract for signature. The Neighborhood Stabilization Program and New Construction programs require inspections on the new construction homes. Bernie Stroh asked what kind of inspection was going to be done. Nancy responded that she could not provide an answer at this time,but would research it. Chairman Johnson inquired if HOME inspections were regulated through the state. Kevin Shaw indicated that it was not regulated. Many questions arose concerning the type of inspection,the need for it if building codes were met, and other health and safety issues. Mr. Shaw stated his interpretation from Rudy Jones was to look for any oversights in the construction process. Gary Rankin stated,if we are required to do this inspection and this is the only proposal received, then he moved to approve the contract in the amount of$375.00 per unit for a total of 22 new construction homes. Motion seconded by Bernie Stroh. • ' Minutes October 20, 2009 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. 3. Endorse Rehabilitation Contracts for September 2009. (Report attached.) It was moved by Mickye Johnson and seconded by Jim Carstensen to endorse the Rehabilitation Contracts for September 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. 4. Select Subcommittee to discuss new and on-going programs. Nancy Gulick explained that Rudy asked for a subcommittee to discuss new and on-going programs. Bernie Stroh asked how many members and what programs? Nancy explained it would probably be three members and discussion would include the New Construction Program. Jim Carstensen stated we have been a six person Board for some time and it becomes increasingly difficult to make meetings. We would definitely like to get the 7th member appointed to our Board, and this is a plea to the City Council, as it is hard to get a quorum if someone is absent. Chairman Johnson indicated that he agreed. He noted that both he and Rudy have discussed this matter with the Mayor and for whatever reason,this is not getting done. It may be the job of the next Mayor to get this accomplished. We are a small Board, so should we have additional subcommittees or should we bring these issues to the whole Board to discuss. It was decided that Bernie Stroh, Jim Carstensen and Eric Johnson would be willing to serve on a separate subcommittee at the request of Rudy to review programs and issues. Nancy Gulick indicated she would discuss this with Rudy upon his return to see if the items could be placed on the Board agenda instead. E. DISCUSSION ITEMS: 1. Homelessness Prevention Quarterly Report. Nancy reported that Operation Threshold has seen quite a number of clients in a one-month period, so the need is definitely there. 2. Rehabilitation Specialist Position. Nancy reported the Human Resources Department is working on the process and we will advertise statewide for applicants. 3. Proposed Schedule for FY2011 Application Process. Chairman Johnson referred to the schedule and reviewed the dates as follows: October 23, 2009 is the beginning of the notification process, sending out letters to past recipients and applicants and those who have contacted us throughout the year. November 6, informational forum is at the Center for the Arts for interested applicants and subrecipients. Minutes October 20, 2009 Page 6 December 31st is the application deadline. The Board's first public hearing will be held on January 12th, which is the second Tuesday. This change is necessary due to the Martin Luther King holiday and the face the City Council will meet on our regular third Tuesday in the Council Chambers. During January and early February,the subcommittee will actively meet to review applications and provide a recommendation to the full Board at the February 16th meeting. We will hold another hearing on Feb. 16th to adopt the recommendations for the 30-day comment period, followed by submission to the City Council. Nancy Gulick indicated the past few years we have asked the subcommittee to meet prior to the first public hearing, so applications can be briefly reviewed and any questions that arise may be addressed by the applicants at the first hearing. H. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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CNI )00 )� � ) }§ §k \� k � � %{ ` O. / { \� } o o \ § � ) )� ,\� � ». � � © � s fit 02 2§� — �� � a. bd�� �--- -- ---- ---- -- - ----�- -� . _f n =� Z E a------- - ----- -�3------ Ecc c 0) ` I CO § 0 - � g of c q P , ' to & ■ a cci � 2 »_ � 2% � < ©1.2 02X a■ » £ - c k � z = t �z 2I £ Ez in< ' I < u)< a) E ! e §2 / 2 ■ 7 0 Lu 0C c0C ai 2 C � o _1CO LU o CO m a .c -o a roc 6 coCO @ ' 2 2 § CO 2 E 2 a) f k 3 } j —co/ S / / I -1 ) k S § k E \ / k \ 10 / k (,& t ' i , MINUTES COMMUNITY DEVELOPMENT BOARD MEETING September 15, 2009 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, September 15, 2009. Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning & Development Director; Steve Schmitt and Quentin Hart, City Council Liaison; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary; Jan Smith, Wells Fargo Home Mortgage; and Antoinette Johnson, Home Owner. Chairman Johnson indicated there has been a request to move New Business Item F2 - Subordination Request for Antoinette Johnson, 714 Quincy Street to the top of the Agenda. A. APPROVAL OF THE AGENDA AS AMENDED. It was moved by Jim Carstensen and seconded by Gary Rankin to amend the agenda to move item F2 Subordination Request for Antoinette Johnson of 714 Quincy to the top of the agenda. Motion carried. Jim Carstensen inquired about the five-year plan and whether funds had been received to start the CDBG and HOME programs in September. Rudy Jones indicated the CDBG funds have been released and word from our HUD representative is that HOME funds will be released soon. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON AUGUST 18,2009. It was moved by Bernie Stroh and seconded by Elsie Duncan to approve the minutes for the regular meeting on August 18,2009 and place them on file. Motion carried. Chairman Johnson asked Board members to move to NEW BUSINESS: Item F2. F. NEW BUSINESS: 2. Subordination request for Antoinette Johnson, 714 Quincy Street. Chairman Johnson noted a request to subordinate the forgivable loan for Antoinette Johnson has been submitted by Wells Fargo Home Mortgage for a new loan in the amount of$93,500. The Chairman noted that on page six there is an itemized list of what is to be paid. Jan Smith from Wells Fargo indicated this includes the house and car payments and basically the request is to improve her cash flow. Board members questioned the status of several other debts listed. • Minutes September 15, 2009 Page 2 Chairman Johnson stated the Board usually does not subordinate or refinance for consumer debt. However, several factors may alter this action, i.e. the length of time left on the loan, and improving cash flow for the homeowner. It would seem under these circumstances we could consider the request at this time. Further discussion occurred and Jan Smith stated part of the homeowner's debt included the cost to build the garage, which was over$20,000. Bernie Stroh advised that a credit card is a terrible way to finance a garage and hoped that the lender had counseled the homeowner on this issue. It was moved by Gary Rankin to approve the subordination request for Antoinette Johnson at 714 Quincy Street. Motion seconded by Jim Carstensen. On roll call: Jim Carstensen, Elsie Duncan, Gary Rankin, Bernie Stroh, and Eric Johnson voted Aye. Mickye Johnson abstained, as the homeowner is a relative. The Chairman declared the motion carried. Antoinette Johnson stated when she purchased her house she did not get the $17,000 from Operation Threshold like everybody else got for new construction and feels this is unfair treatment. Board members did not understand Antoinette Johnson's concern and Donna Lesyshen was asked to explain. Donna Lesyshen indicated she could not comment, as she wasn't sure what happened with'Ms. Antoinette Johnson's file. Chairman Johnson directed attention back to the agenda for two public hearings. ITEM C. PUBLIC HEARING: Consolidated Annual Performance and Evaluation report FY2009. It was moved by Mickye Johnson and seconded by Elsie Duncan 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 30,2009. Motion carried. It was moved by Jim Carstensen and seconded by Gary Rankin to open the public hearing. Motion carried. Rudy Jones indicated we were a bit late in getting our annual and five year plan activities in motion this year. We are starting to see a swing of the financial pendulum with some increases in funding,much different than the last few years. Chairman Johnson inquired if any information on the C.A.P.E.R. needed to be reviewed and Rudy Jones stated there was nothing unusual to report. Nancy Gulick clarified that the C.A.P.E.R. covers all the activities for the past year, FY2009 year-end Annual Performance Report. Chairman Johnson requested additional comments and noted for the record that there were no citizens present in the audience. • Minutes September 15, 2009 Page 3 It was moved by Mickye Johnson and seconded by Gary Rankin to close the public hearing. Motion carried. It was moved by Bernie Stroh and seconded by Jim Carstensen to submit the FY2009 Consolidated Annual Performance and Evaluation Report to the City Council on September 21, 2009. Motion carried. D. PUBLIC HEARING: Funding Levels for Economic Development Initiative Grant—Chamberlain site. It was moved by Elsie Duncan and seconded by Gary Rankin 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 30,2009. Motion carried. It was moved by Jim Carstensen and seconded by Gary Rankin to open the public hearing. Motion carried. Rudy Jones noted we were awarded Economic Development Initiative funds in the amount of$380,000 to be used towards the demolition of the Chamberlain site. The budget will be $38,000 for administrative costs and$380,000 to demolish the site. Chairman Johnson noted a$3,000 discrepancy from the legal notice in the paper and the breakdown of the project budget. Nancy Gulick indicated this was a possible error that she would correct prior to submission to Council. We are allowed 10% of the award for administrative costs. Bernie Stroh inquired if bids have been requested or if there is an engineering estimate on the cost for demolition of the Chamberlain site. Noel Anderson reported there is not an estimate available. Noel stated that asbestos survey and asbestos removal bid documents would need to be done prior to demolition. We may need to hire a consultant to do this as it becomes very specific. He noted that Howard R. Greene Company has worked on previous phases of this project. Noel Anderson reported on the vast amount of demolition and clean up for the Chamberlain site, and whether these funds would accomplish all that is proposed for demolition through the Reuse Plan. Noel stated much of the manufacturing space has been demolished,but we anticipate a great deal of asbestos on the office site. The Chairman asked for additional comments and indicated no audience available. It was moved by Bernie Stroh and seconded by Elsie Duncan to close the public hearing. Motion carried. It was moved by Mickye Johnson and seconded by Elsie Duncan to submit the recommendation to the City Council for the use of$380,000 of EDI funds under Grant No. B-09-SP-IA-0191 for the demolition of the Chamberlain Site. Minutes September 15, 2009 Page 4 On roll call: Jim Carstensen,Elsie Duncan, Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Bernie Stroh questioned who would administer this activity. Rudy Jones stated this has not been determined as yet, however, Louis Starks will possibly assist in the oversight. E. OLD BUSINESS. 1. Update on State of Iowa, New Construction Unit Production Application. Rudy Jones indicated clearance has been received for both developers to start work on their new construction projects. John Rooff has two units underway and nearly 60% complete and started site work on two other units. Plans are to hopefully close on one of these units by the end of this month or early October. We will be performing third party inspections to assure requirements are met. Rudy noted the developer; Iowa Contractor Services has begun preparations at the Summerland Park site. Representatives from the State, Governor's Office, Rebuild Iowa Office and others will visit these sites next week for a press conference. Periodic updates would be provided on these projects. 2. Update status of the Section 108 Loan Guarantee. Noel Anderson stated that Crystal Distribution is moving forward with their plans to build a 45,000 square foot cold storage warehouse facility, estimated at$4.1 million. The Section 108 Loan will be for$2.2 million, based on job creation and retention of about 44 employees and bringing back employees that were laid off. Noel also reported on the storage losses at Crystal Distribution due to the flood of 2008. Currently,the Omaha HUD office is determining the eligibility of this project and contacts have been made between the Washington, D.C. office and Crystal Distribution concerning details of the loan documents. Noel anticipates this action will be completed within the next few weeks. Chairman Johnson indicated Community Development is the ultimate guarantor of these Section 108 funds. Noel Anderson stated he is very confident this project will come together, especially with the proven track record of Crystal Distribution in working with the city. The Chairman requested that Noel report back to the Board when a signed contract has been finalized. Noel Anderson also commented that the City is working with the Economic Development Administration on a$700,000 grant to provide new lift stations in two specific areas near the project site,where flooding occurred in 2008. 3. Update on Tax Credit Projects. Nancy Gulick indicated some stimulus funding was available for tax credit gap projects. Common Bond (East Waterloo Family Housing)has their tax credits approved, but Liberty Manor does not, so they are going before the Iowa Finance Authority the end of September. Jim Carstensen inquired when Common Bond would begin construction. Nancy noted plans are for late fall or early spring construction. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for August 2009. (Report attached.) Chairman Johnson inquired if the lack of rehabilitation cases was due to the gap in funding? Rudy Jones indicated the rehabilitation staff is still focusing mainly on flood recovery activities, however, will soon start to shift efforts from owner/occupied units to the single-family rental units that have Minutes September 15, 2009 Page 5 sustained damage. Activities are picking back up on Emergency projects, as the annual allocation has been awarded. It was moved by Mickye Johnson and seconded by Elsie Duncan to endorse the Rehabilitation Contracts for August 2009 as presented. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. G. DISCUSSION ITEMS: 1. Administration of New Grant Programs. Rudy Jones asked to discuss Item No. 2 first. 2. Rehabilitation Specialist Position. Rudy Jones indicated we have revised the job description for the Rehabilitation/Relocation Specialist in order to add in acquisition activities. We hope this new position will be submitted to Human Resources within the next 30 days. Staff will review the approach to the new funding streams—moving out of flood recovery back into more stable workloads with the rehabilitation process. Rudy noted the next funding stream process to address will be the Neighborhood Stabilization Program grant for$850,000. He noted the Environmental Reviews are being conducted on potential sites. Currently staff is working on this and rehabilitation funds will be directed toward the acquisition of properties. Chairman Johnson inquired if the City Attorney's office could assist in some of these functions, i.e. the acquisition of some properties. Rudy Jones noted we would utilize the service of the attorney and also rely on current staff with expertise in legal matters, as well. 1. Administration of New Grant Programs. Rudy stated with all the funding streams at the start of flood recovery, we have to commend our staff for overseeing and executing those primary activities. Jumpstart 1, Jumpstart 2, and Jumpstart 3,New Construction activities,the Homelessness Grant,Neighborhood Stabilization Grant, and the EDI Grants. We have a temporary clerical employee who has picked up many of the initial eligibility requirements. We are also working aggressively on qualifying applicants for the new construction program. Rudy noted that once the Rehabilitation/Relocation Specialist position is filled, we would begin the process to hire a long-term part-time employee to help administer some of these grants. Most of these responsibilities are currently spread-out throughout our current staff. Chairman Johnson indicated at the last meeting we discussed there is only so much you can do internally, and if funds are available, we need to explore partnerships to utilize these funding sources. H. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary • O O O O O 0 0 0 0 0 0 O O 0 Zd (OHO tt ZDp i- . F- 0 N— (n) N O 0 Z Z Z 00 LO 0 0 (O N 0 0 0 0 0 0 O ¢ (OO .- c- 0 20 , N ¢ 0 0 S A- 69 69 U U 00001 U 0 0 U0 0 Ii< w 0 0 F1-OC•1 ti Fa1-- N Fa F- F' FIw- O Z — — Z Li N Z O f- 0 � ¢U o OO Oo 0 co co OU ZO ZO O U Oc,,0<__, O 0, cc U 0 0 0 0 O Q FO Z -) 7 -) -) Z Z I- C 0 0 0 0 0 0 z U I- I- I- I- U 0 O o U U U U 2 2 2 2 y N N N N 0 0 0) 0) Q N ce_ as cc cc cc d N N d N ¢ • ¢ W a) a) a) m w p W a a Q V) Vl V) V) w. CY f a' 3 3 3 3 E c c c c N EEEE � a) a) a) a) .0 .0 .0 .0 2 N N i O cf) WcC U C W coU co co CC 13 U — 112 C O rt w W 75 O i+ 0 0 0 CC 0 E a0 � Ym ¢ a 0 0 a i aco ( va) n co co co O N C , , coN co r- 0 d CrI. (() - (') cow CCm cc m0 ,- a- N- U) w W t •� Z00) 000) 00) z2 j z m co z o rr z z z E Q) cc co 1— w J (Q J cn J 7.1 U co rn (� U • Q U Q Q Q �_ = a O N as N • O w W U U d cn2C� 2C� G,. aa) Z cai) OS a co L C CO 0 o N 't c E a) co a. E. 8W 0 . E co O co �.� � � 0 ? +�+ a) O o W c O N (I) •O a) (C On M J . .Q � `Ow N a � N � � Y O .�CZ tz r+ z 2 H (a .0 C w 0 v Le W Q � Z � O � (� F0- V) Z �' f0- U h0 = 0 J 0 MINUTES COMMUNITY DEVELOPMENT BOARD MEETING August 18, 2009 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 18, 2009. Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson,Bernie Stroh and Eric Johnson. Members absent: Gary Rankin. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Steve Schmitt, City Council Liaison;Ann Northey, Administrative Secretary; Zach Clabby, Home Owner. A. APPROVAL OF THE AGENDA. It was moved by Mickye Johnson and seconded by Elsie Duncan to approve the agenda. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JULY 21,2009. It was moved by Jim Carstensen and seconded by Elsie Duncan to approve the minutes for the regular meeting on July 21,2009 and place them on file. Motion carried. C. OLD BUSINESS. 1. Forgivable Mortgage Addendum, Loan Repayment—Clabby. Rudy Jones indicated Mr. Zach Clabby originally received $5,000 in down payment assistance in May of 2006. Mr. Clabby requested and received a subordination to refmance and make some home improvements in March 2009. The home improvement was to be completed by June 26, 2009 or the forgivable loan was to be converted to a repayable mortgage with the terms of$4,000 being amortized over 60 months at 8% annually. Rudy indicated Mr. Clabby's provided some receipts,but failed to provide additional receipts and information. Chairman Johnson explained the Forgivable Mortgage Addendum required the additional work to be done within 90 days of the subordination. Rudy stated some of the home improvements were taken care of but Mr. Clabby wanted to do additional home repairs that have yet to be accomplished. Zach Clabby indicated there are numerous home improvements items yet to be completed on his home, including a bathroom. Mr. Clabby stated he completed the roof by himself with the help of friends to save on the cost. Chairman Johnson explained the Board's goal is to work with homeowners to improve the housing stock and invest in the community. Addressing Mr. Clabby, the Chairman stated, it is not our intent or desire to have you repay the funds,however,procedures are in place to protect those funds allocated to the City. Minutes August 18, 2009 Page 2 The Board is willing to work out a solution for our mutual benefit. The Chairman asked Mr. Clabby what would be a fair time period to finish the work and provide receipts to Rudy to finalize your request? Mr. Clabby indicated he could have the rest of the improvements made by the end of the year, if the Board would grant him an extension. Board members agreed to support Mr. Clabby's efforts to improve the home, and uphold the idea of extending the Forgivable Mortgage Addendum timeframe through the end of the year. Following discussion it was moved by Elsie Duncan and seconded by Jim Carstensen to grant a four- month extension through December 31,2009 to Zach Clabby to finalize his home improvements at 301 Downing Avenue. Motion carried. 2. Update on State of Iowa,New Construction Unit Production Application. Rudy Jones explained 22 units have been committed to be built under this program with two developers. John Rooff has four units underway and two are 60%complete with interior work beginning. He is now prepping the sites for two more units. Rudy noted on the Summerland project the Environmental documentation is being reviewed with the State. Additional documentation will be submitted tomorrow to the State Historic Preservation Office (SHPO) and they have up to 30 days to conduct their review and make a determination. We are in constant dialogue with these agencies and it is possible for this project to get underway within two weeks. Chairman Johnson stated when this project first came out there were some issues from residents about the Summerland Project,have those concerns died down? Rudy stated members of the Planning Department, Mayor and Council members went out and met with some of the residents and thoroughly explained the project. The contractor also met with the residents to explain their goals. There have been no new concerns expressed within the last few months. Rudy stated once we receive the approval from SHPO we will be ready to have the contractor proceed. Chairman Johnson inquired that this project has been going on for quite a few months,what has been the delay in getting this approved? Rudy stated,typically other staff would handle these details,however with their workloads,he didn't want to burden them so he has been working to complete the necessary paperwork on this project. Rudy expressed the process may have taken longer than usual. Jim Carstensen inquired on the status of the Common Bond project? Rudy stated they are preparing to have another community meeting to pick the process back up. They are looking at a Fall or Spring construction date. 3. Update status of the Section 108 Loan Guarantee. Rudy asked to postpone discussion, as Noel Anderson, Community Planning &Development Director,was not present at this time. Minutes August 18, 2009 Page 3 4. Subcommittee Recommendation—Multi-Family Rental Housing Application. Rudy stated this is a mute point now, however,there may be additional funds offered from the state at a later date. Bernie Stroh asked Steve Schmitt why the Council turned down this chance for funding? Steve Schmitt, Council Liaison responded he did not vote in favor of this application, noting the case had been made that we really did not qualify for these funds since we did not lose any multi-family rental units in the floods. Bernie Stroh indicated the State said we were eligible and encouraged us to apply. We did have the flood go through, even though no multi-family rental units were lost. Steve Schmitt indicated the prevailing signs showed we did not qualify for the funds, so why go through a lot of time and effort. Basically, we were informed that staff did not have the time to respond to this application. Bernie Stroh suggested staff should have at least applied for these funds. Discussion ensued on staff burden and the Chairman commented that it seems we are asking staff to administer all these additional programs with the same number of employees. He stated at some point in time,without hiring additional personnel,things are going to get bogged down. When we have the one- time grants, why can't we out-source these funds to some of our nonprofits so we are not putting the burden on our staff. If we subcontract with another party the city can still utilize these funds, but we are not over- burdening our staff or hiring people that won't be needed when the grants are done. The Chairman noted, the staff has been at capacity for some time, but there must be a way we can go after funding sources without turning our back. Waterloo has some economic issues and this does provide opportunities for these grants. The Chairman noted this is a discussion item he would like to pursue further. Rudy Jones indicated some items can be contracted out,but there is a limited clientele to handle these grants locally. We have used INRCOG on occasion,however,they have their own programs. Rudy explained how this has complicated some recent components of the buyout program. Chairman Johnson said we hate to turn our backs on funds coming down through the stimulous programs, simply, due to lack of available staff. Other Board members agreed that it is critical for the department to pursue these opportunities and convey the need for staffing to the City Council. Rudy Jones explained that we do shift workloads, but we've worked months to get a position filled for the Rehabilitation Department. This has created additional burdens due to all the flood activity channeled through that department. Hiring Dave Keidel part-time for about 20 hours per week for approximately three months has helped with some of the inspection work that is required. We are trying to modify the rehabilitation specialist position to incorporate other activities so we can re-advertise for a new position. Minutes August 18, 2009 Page 4 Chairman Johnson suggested discussions be conducted with INRCOG, Operation Threshold, Eastside Ministerial Alliance or any other entity to determine if they would be willing to administer any grant funds that staff cannot manage so the funds can be channeled into the community. Rudy Jones stated, we will and we have done this. We have partnered with Cedar Falls and INRCOG to come up with additional lead training as one area and some new contractors were put on board. We have met extensively with INRCOG and the City of Cedar Falls because they are doing some of the same activities. Unfortunately, we do not have the process that allows us to quickly turn around hiring for a new position. Jim Carstensen indicated it is only good stewardship on our part to look into this, as about 10-15%of the stimulus funds have been released, and there will be 80-85% additional funding yet to go....we must be prepared and ready to handle the funds that may come our way. Mickye Johnson indicated he deals with the Iowa Finance Authority and there will be additional funds coming through. We need to look now at strategies and be proactive so we can make it happen. Chairman Johnson said we need to figure out how we can partner with some entity, as the Council will not allow you to hire additional staff. Jim Carstensen indicated that Barb Grant from Operation Threshold was adamant about the need for new rental housing in Waterloo. We may have a natural segue with Operation Threshold to work cooperatively to accomplish this goal. Rudy Jones indicated that is why Operation Threshold was the recent recipient of the Homelessness Grant, because they are a good partner. Chairman Johnson also suggested Eastside Ministerial Alliance, if they were ready to be a participant. He stated,this is critical so that we don't let these funds go to waste. Mickye Johnson stated, it is critical for us to develop other partnerships and this may not come overnight, but if we have them in line,then these large sums of money would not need to be turned down. Chairman Johnson stated, as a long-time Board member,there have been good and bad years dealing with Operation Threshold. Therefore, it is good to have more than one partner for accountability. Nancy Gulick indicated, when we applied for the lead grant,we wrote into the grant that we would hire two people. When those people were hired,they understood the term of their employment was for only three years, so this is certainly a possibility. We are receiving stimulus monies, so we should be providing jobs. The Chairman stated hiring additional staff when administration funds are available isn't a problem,but we cannot be reactive about this as there is probably more funding coming down the stream. Bernie Stroh stated,we must be able to say yes to these programs and go after them. Rudy Jones stated he agreed with everything that is being stated,but we've experienced many difficulties to get staff in place in our department, for whatever reason. Rudy stated we just don't get the attention that • Minutes August 18, 2009 Page 5 we need to for our day-to-day operation. He noted this has been a factor on our five-year and one-year action plans. That process was initiated last August, and because of lack of cooperation we lost four months time because we are not taken seriously throughout the course of the year. Jim Carstensen stated there are graduate students from UNI who could be utilized, and also from the University of Iowa. These are business school graduates that we might be able to tie into their services. Rudy stated UNI students have been utilized in the past,but it wasn't an external factor that delayed the process, it was more internal. Chairman Johnson indicated if you have internal blocks, you might need to side step them and out-source these activities. Chairman Johnson indicated the Board's job is not to micro-manage the process, but we are here to offer broad guidance and try to get people in place that are trustworthy. Bernie Stroh stated when there are programs with administrative funds available, we must jump on these opportunities. Rudy stated we agree wholeheartedly,but not only myself, but my staff can attest to the fact that sometimes we are put up against delays within other departments to get even our routine processes accomplished. Chairman Johnson asked if this item should be discussed further at the next Board meeting, and whether it is worth the time to discuss these issues with INRCOG, UNI or Operation Threshold. It was the consensus of Board members that staff should pursue additional help so funding sources being allocated through the stimulus programs are not turned down. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for July 2009. (Report attached.) It was moved by Jim Carstensen and seconded by Mickye Johnson to endorse the Rehabilitation Contracts for July 2009 as presented. On roll call: Jim Carstensen, Elsie Duncan,Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Rehabilitation Forgivable Loan Percentage Schedule. Nancy Gulick indicated the rehabilitation forgivable loan repayment schedule was set at a different percentage than the downpayment assistance forgivable loan schedule. Nancy recommended the board utilize the same percentage schedule for all forgivable loans, at 100%, 80%, 60%, 40% and 20% for repayment. It was moved by Bernie Stroh and seconded by Jim Carstensen to adopt the new percentage schedule of 100%,80%, 60%, 40% and 20% for repayment on all rehabilitation loans from this time forward. Motion carried. Minutes August 18, 2009 Page 6 E. DISCUSSION ITEMS: 1. Rehabilitation Specialist Position. Rudy Jones indicated we are revising the job description for the Rehabilitation Specialist in order to add in additional functions. We are hoping to include the acquisition and rehabilitation tasks to make this a full time position. Nancy Gulick indicated we have received Release of Funds for the stimulus CDBG-R funds, for roofs and rehabilitation. We have received Release of Funds for the Homelessness Prevention and Rapid Re-Housing Funds, which will be going to Operation Threshold to administer, and we have received Release of Funds for our annual entitlement of CDBG funds. HOME program funding is still on hold for review. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Steve Schmitt, City Council Liaison; Ann Northey, Administrative Secretary; Barb Grant, Executive Director Operation Threshold; Tim Jamison, Waterloo/Cedar Falls Courier and another interested citizen. A. APPROVAL OF THE AGENDA. It was moved by Jim Carstensen and seconded by Elsie Duncan to approve the agenda. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JUNE 16,2009. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the minutes for the regular meeting on June 16,2009 and place them on file. Motion carried. C. OLD BUSINESS. 1. FY2010-2014 Five-Year Consolidated Plan and FY2010 One-Year Action Plan Rudy Jones explained the City Council held a public hearing on July 6, 2009 and authorized approval of the five-year and one-year action plans as presented by the Board subcommittee. These plans have now been submitted to HUD and we await their review and approval. Rudy noted the FY2010 programs should begin on or before September 1, 2009. 2. Update on State of Iowa,New Construction Unit Production Application. Rudy Jones indicated due to flood activities,the state received applications from eligible municipalities for new construction housing. Waterloo submitted two proposals for a total of 22 units of New Construction. The contract was approved by the City Council and will be forwarded to the State. Rudy noted the Environmental Review process is being finalized which will allow construction to begin within the next 30- 45 days. Rudy noted Mr. Rooff is constructing on sites with prior environmental approval, and therefore can begin construction right away. He noted that hopefully, at the end of this project,we will provide 22 new units ranging from $120,000 to $180,000,minus the $30,000 homeowner subsidy. 3. Update status of the Section 108 Loan Guarantee. Rudy asked to postpone discussion, as Noel Anderson, Community Planning &Development Director,was not present at this time. Gary Rankin now present. Minutes July 21, 2009 Page 2 4. Update on RFP's—Homelessness Prevention and Rapid Re-Housing Program. Nancy Gulick, Community Development Coordinator, indicated Homelessness Prevention and Rapid Re- Housing Program(HPRP) applications were received from Seeds of Hope, Jesse Cosby Center, YWCA, Salvation Army and Operation Threshold. Three Board members met with Nancy to review the applications on June 25th and it was concluded that Operation Threshold would best utilize these funds over the next three years. HUD has given us approval for our Substantial Amendment. Chairman Johnson inquired about the proposals and how the funds will be utilized by Operation Threshold. Nancy indicated there were two different programs sponsored through the Recovery Act. One is for Rapid Re-Housing to help people get back into a house or apartment if they are homeless. The other program is Rental and Utility Assistance, and certain criteria must be met to qualify for this assistance. All people receiving assistance must meet the 50%or lower income guidelines. All applicants must receive counseling services, verification of their income, and apartment inspections must meet habitable and housing quality standard specifications. Nancy noted the award is approximately $570,000 for these programs and Operation Threshold will receive approximately$565,000 for the three-year grant. Chairman Johnson inquired if this dollar amount was applied over three years, or an award of this amount every year for three years. Nancy indicated 60%must be spent the first two years and 100%the last year, so this is the total amount. Chairman Johnson indicated these funds will provide good assistance for the community. Barb Grant indicated a benefit in applying for this program is that they will be able to combine service areas with the Iowa Finance Authority and make a larger impact in the area. Gary Rankin questioned the 18-month time frame on this assistance and how long an applicant would be under this program,whether funds would be depleted. Nancy Gulick indicated once a client is identified,they should be able to estimate how long they will need to.obligate those funds. Barb Grant indicated,they would probably identify the worst-case scenario for the family and recertify them every 3 months, or as needed. Barb Grant noted their staff did attend the HUD training for this program and a statewide assessment will be made. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for June 2009. (Report attached.) Jim Carstensen inquired about the backlog on Emergency Repairs. Rudy Jones indicated we are constantly getting calls for emergency assistance. There are approximately 40-50 roof cases on hold right now. The entire emergency backlog may be close to 75 individual cases from our last report. This is the time when there is more demand for housing assistance. The rehab department staff currently have a workload that equals the work of an entire year. Minutes July 21, 2009 Page 3 It was moved by Jim Carstensen and seconded by Bernie Stroh to endorse the Rehabilitation Contracts for June 2009 as presented. On roll call: Jim Carstensen,Elsie Duncan,Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Subordination Request—Iowa Mortgage Solutions,Inc.—Escobar. Chairman Johnson indicated a subordination request had been received from Iowa Mortgage Solutions on a rehabilitation forgivable loan for Valentin and Robin Escobar of 1119 Sycamore Street. Bernie Stroh indicated most of this request is for consumer debt, and we have had a standing policy that we would not subordinate for this reason. Discussion was held on how the yearly percentages were being reduced, noting rehabilitation five year mortgages are reduced at 100-75-50-25-10 percent and different from downpayment mortgages that are reduced at 100-80-60-40-20 percent. It was moved by Bernie Stroh and seconded by Elsie Duncan to deny the subordination request. Motion carried unanimously. 3. Subcommittee Review of Multi-Family Rental Housing Applications. Rudy Jones indicated as part of the State's flood recovery efforts, a new activity was proposed for multi- family rental housing, geared toward communities that lost a number of rental units. The City of Waterloo did not lose multi-family rental units during the flooding,however,we were encouraged to consider this program. The program is set up whereby construction assistance is provided up to $60,000 per unit,up to 12 units maximum, and this would be in the form of a five-year forgivable loan. The subcommittee, Mickye Johnson, Gary Rankin and Jim Carstensen reviewed six proposals last week that came in, and we received another application after the review. Some of the applications listed proposed development locations and some did not. This is a short timeframe process, and we will come back to the Board with the results of our review. Chairman Johnson asked if this was part of our standard CDBG funding, or is this a special grant? Rudy indicated this is CDBG Supplemental funding, which is part of the flood recovery efforts, and the program was geared primarily toward communities that lost multi-family rental housing during the flood, however, as part of the state's program they opened the application process up to all cities interested in applying. Chairman Johnson inquired whether we are interested in utilizing these funds? Rudy indicated this is partially why it was opened up for subcommittee review,to see whether we wanted to entertain other proposals. Rudy stated, again, Waterloo did not lose any units of this type, however it does not preclude us from applying for the funding if we chose to pursue them. Bernie Stroh inquired what happens if we don't chose them, do we lose an opportunity for these funds. Rudy stated we will not be penalized for not utilizing these funds, and we will keep on with the current activities that are underway. Minutes July 21, 2009 Page 4 Bernie Stroh commented,but we would lose the opportunity to receive the money. Rudy indicated, yes we would lose the funding. Bernie Stroh asked,why would we not pursue these funds? Rudy stated this funding is primarily set up to replace units that were lost. Part of the discussion within the subcommittee was to evaluate what the current rental needs are, and there are two or three new programs coming on board with the tax credit projects. Rudy indicated we have a greater need to construct single family units versus multi-family units, and we are not desirous of saturating the community with additional units. Bernie Stroh asked if this program could be shifted to single family rental housing? Rudy indicated no, as the intent of the program is for multi-family housing. Gary Rankin indicated this program is not rehab it is new construction. Rudy stated we just haven't found a need for the multi-family rental housing. The tax credit projects will each provide approximately 40 units each. Total consideration of these seven proposals with up to 12 units maximum,would put another 70 units on the market. Rudy noted current reports indicate there is a definite need for single-family housing and rental and utility assistance. Considerable discussion continued on the primary funding sources received in the past few months; Disaster Recovery,housing crisis funding-Neighborhood Stabilization, and the Stimulus funds with several programs. Gary Rankin indicated this is a very attractive program from a developer's standpoint, however,what is the likelihood of the application being approved on the state level if we don't have the lost units? Rudy stated this question was posed to IDED staff and they indicated they would entertain our application and thought we could work out the best details for our situation. We have some parameters,but there is latitude for the program. Barb Grant indicated that we may have not lost a lot of multi-family units, but we did lose rental housing units. She noted in discussing the homelessness issues with the local Homeless Coordinating Board,there are horrible rental houses within the community that do not pass the HQS standards. If we could put some new rental units in the community it would improve the housing status. Nancy Gulick asked Barb Grant if she felt there will still be a need after the three tax credit projects are constructed. Barb Grant responded yes, as there are so many housing units that have horrible living conditions. Bernie Stroh indicated, if there is not some kind of rehab plan the neighborhoods will be blighted with these older rental units. • Minutes July 21, 2009 Page 5 Rudy indicated that Rental Rehabilitation has been an eligible activity which we have not entertained every year. Landlords must commit 50% of the cost with HOME dollars to complete their project, and then affordability becomes a question. Rudy indicated the subcommittee would entertain these applications, however staff must check on affordability, income verification, etc. in terms of affordable units. Inspections are conducted. There is only project delivery costs per unit for staff to oversee. Gary Rankin indicated it is hard to review applications and determine which ones are best, when no site has been identified. He indicated that on some scale there is a need for this housing and getting the dollars into the community to put contractors to work is positive. Rudy indicated staff is looking for some direction from the Board. We would entertain one to three projects,but we also have flood recovery and the new construction projects coming on board. The stimulus projects are coming in with tough time frames to utilize the funding. Jim Cartstensen indicated consensus from the subcommittee was to go ahead with several of these multi- family rental projects and prioritize the applications. Rudy stated we would not commit funds to those applicants that did not indicate a specific site for their project. Rudy indicated these projects will be presented to the City Council on July 27th for their concurrence so it can be forwarded to the state before July 31st. Rudy indicated we have an opportunity to receive some funding, if not all that we request. Gary Rankin and Jim Carstensen indicated we should proceed to apply for these funds. Rudy indicated the subcommittee needs to prioritize these applications for presentation to the City Council. Rudy indicated he would be out of town the remainder of the week,but will package the recommendation for the Council. It was moved by Elsie Duncan and seconded by Gary Rankin to concur with the recommendation of the subcommittee to submit the Multi-Family Rental Housing application to the City Council for approval and submission to the state. On roll call: Jim Carstensen,Elsie Duncan, Gary Rankin,Bernie Stroh, and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Chairman Johnson indicated Noel Anderson is now present and directed the Board's attention to Item C.3 Update status of the Section 108 Loan Guarantee. Noel Anderson indicated the 70/30 commitment had been met and we are working on the contracts for Crystal Distribution as they are committed to doing their expansion project. Minutes July 21, 2009 Page 6 4. Initiate CAPER process and set date of hearing for September 15,2009. Rudy Jones indicated its time to begin the process to complete the Consolidated Annual Performance Evaluation Report(CAPER). This is our year-end report on all activities and must be submitted to HUD by September 30, 2009. A public hearing is required for citizen input on the annual CAPER report. It was moved by Bernie Stroh and seconded by Elsie Duncan to set the date of hearing for September 15,2009 on the FY2009 CAPER. Motion carried. E. DISCUSSION ITEMS. 1. Grant Allocation Report. (Report attached.) Chairman Johnson indicated a summary sheet has been prepared to highlight the grant activities being conducted through the Community Development office. Chairman Johnson asked that an additional item of interest would be to include the administrative funds on each activity. Some discussion followed concerning the projects and programs being administered. Rudy Jones stated with all the programs being initiated by the federal government there will be additional funding streams coming our way in the future. 2. Rehabilitation Specialist Position. Rudy Jones advised that David Keidel has been hired as a part-time,temporary rehabilitation specialist to work approximately 3 months to conduct inspections. We hope to revamp the rehabilitation specialist job description to allow for new applicants to apply and hopefully fill the position. The current process does not allow us to hire unless the applicant is on a certified list for that position. Chairman Johnson indicated that one of the keys to utilizing these grant funds is to be staffed appropriately to handle the available resources and if we are not staffed appropriately,then there will be opportunities missed. The Chairman indicated to Rudy that it's his responsibility to notify the Council so they understand there are administrative costs allowed, but we need staff in place to handle it, whether they are short or long term positions. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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'� L11 z ci) � � E°- u°'. m Y U `° 0 r o a�i '° I v `3 Grants summary nancy-g/Block Grant/available grants 611 2009 7/14/2009 Grant Source line item Project code Dollar amt Deadline CDBG HUD 224-32-5850- BG various $ 1,261,769 annually HOME HUD 224-32-5870- HM various $ 675,874 annually Neigh.Sery HUD 224-32-6800- BG005 0016 $ 80,000 annually WHP HUD 224-32-5852- BG005-varies $ 50,000 annually EDI HUD 224-32-5851- BGEDI various $ 2,500,000 various 5 yr grants Lead Grant HUD 224-32-5853- BGLED various $ 1,510,597 October 30, 2010 Lead Grant EPA 290-32-5853- 32EP8 various $ 100,000 July 31, 2010 Planning HUD 224-32-5855- BG20-varies $ - June 30, 2009 Homelessness ARRA-HUD 224-32-5880- 32GRT HPRH $ 573,881 September 30,2010 Jumpstart Fed-housing HUD-IDED 224-32-5861- 32JMP various $ 611,000 on going Jumpstart State 1 IFA 290-32-5861- 32 GRT JMP1 $ 683,989 completed Jumpstart State 2 IFA 290-32-5861- 32JS2 various $ 820,786 application-Sep1,2009 LHAP IDED 010-32-5861- 32LHP various $ 25,000 on going DPA-ADDI IDED 224-32-5860- BGDED various $ 100,000 December 31,2009 Housing Infrastructure IFA 290-13-5861- 13GRT IFA9 $ 16,000 December 31,2009 NSP 1 HERA-IDED $ 850,000 December 31,2010 New Construction Jumpstart-IDED $ 1,300,000 December 31,2010 NSP2 HERA-IDED did not apply CDBG-R ARRA-HUD $ 373,140 September 30,2010 Rental Rehab HUD-IDED as approved on going New Construction Rental HUD-IDED as approved on going ARRA=American Recovery and Reinvestment Act (Stimulus) HUD= Housing and Urban Development Total= $ 11,532,036 EPA=Environmental Protection Agency IDED= Iowa Department of Economic Development IFA= Iowa Finance Authority HERA=Housing and Economic Recovery Act 41 ` - l A,/ l • C x�i (Gib 47 / bq MINUTES COMMUNITY DEVELOPMENT BOARD MEETING May 19, 2009 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 19, 2009. Members present: Jim Carstensen,Mickye Johnson,Bernie Stroh and Eric Johnson. Members absent: Elsie Duncan and Gary Rankin. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning &Development Director; Steve Schmitt, City Council Liaison; Ann Northey, Administrative Secretary; Martha Frazier, Michael Coleman,and Percy Burt representing Eastside Ministerial Alliance; Barb Grant, Operation Threshold; Larry Oltrogge, Realtor 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. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON APRIL 21,2009. Jim Carstensen commented that page 11 of the minutes stated he sat on both the Community Development Board and the Eastside Ministerial Alliance Board and that if negotiations with staff could resolve the details there would be no need to come back to the Board on EMA's CHDO request. Mr. Carstensen clarified that obviously, staff will bring back a request for final approval of the CHDO request to this Board and he wanted that documented. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the minutes for the regular meeting on April 21,2009 as clarified and amended, and place them on file. Motion carried. C. BLACK HAWK GAMING COMMISSION RECOGNITION. Rudy Jones stated that the Black Hawk Gaming Commission had requested recognition at an appropriate time to notify the community of their contribution to our Emergency Rehabilitation Program. We wanted to present this at our last meeting, but there was a conflict with other commitments they had scheduled. Minutes May 19, 2009 Page 2 Chairman Johnson stated a letter will be sent to the Black Hawk Gaming Commission, thanking them for their contribution to the Emergency Repair Program in the amount of$75,000. The Chairman indicated this was a nice boost to the program and the homeowners are appreciative of these funds. D. PUBLIC HEARING: 2nd Amendment to FY09 One-Year Action Plan for a CDBG Award from the American Recovery and Reinvestment Act of 2009. It was moved by Mickye Johnson and seconded by Bernie Stroh to receive and place on file the affidavit for proof of publication of the public hearing notice as published in the Waterloo/Cedar Falls Courier on May 15,2009. Motion carried. It was moved by Mickye Johnson and seconded by Jim Carstensen to open the public hearing. Motion carried. The public hearing audience included five individuals. Chairman Johnson requested a staff report prior to comments from the public. Nancy Gulick, Community Development Coordinator,reported these are CDBG funds allocated through the stimulus act and must be spent quickly, with certain priorities for eligible activities. Staff is recommending the best use of these funds for residential rehabilitation and emergency repairs with an emphasis on roofs. Nancy noted that according to our contractors,this would save 28 jobs and allow for additional hires. Nancy reported on statistics for the Recovery Act goals, noting comparisons on the average hours worked and wages now verses a year ago. Chairman Johnson indicated these funds are over and above our annual allocation, as part of the stimulus act. These funds have been awarded to us,but we need to determine how the funds will be spent. Nancy indicated these funds will be reported differently. She noted it is CDBG funds,however, it will not be reported in the same package. This 2nd Amendment will determine how we intend to utilize these funds. Chairman Johnson indicated the city's allocation of CDBG-R funds total $373,140. Staff is recommending $231,343 for Residential Rehabilitation activities, $104,483 for Emergency Repairs and $37,314 for Administrative costs (10%). Nancy indicated these funds are approved for uses such as our regular Rehabilitation and Emergency Repair activities, but they also asked what funds are leveraged with this grant, and she noted we can use the Lead Grant funds to show a leverage of$8,000 per unit. Leverage on the Emergency Repair funds will be any personal funds that must be utilized when we go over the $4,000 maximum per unit. Mickye Johnson inquired about approval and the time frame for this grant. Nancy indicated, hopefully funds will be available in July 2009. Chairman Johnson requested input from the public concerning these funds. No comments were received concerning the 2nd Amendment to the FY2009 One-Year Action Plan. Minutes May 19, 2009 Page 3 It was moved by Mickye Johnson and seconded by Jim Carstensen to close the public hearing. Motion carried. It was moved by Bernie Stroh and seconded by Jim Carstensen to submit the 2"d Amendment for FY2009 One-Year Action Plan for the American Recovery and Reinvestment Act of 2009 in the amount of$373,140.00 to the City Council for a public hearing on June 1,2009,request approval and submission to HUD. On roll call: Jim Carstensen,Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Chairman Johnson indicated the additional funds would be a benefit to our programs. E. OLD BUSINESS: 1. Discuss the Lafayette Street Improvement Project. Rudy Jones explained a request from Mike Narey and his partner, Doris Ruffridge, who are interested in purchasing a city-owned lot at 1016 Lafayette Street. Rudy noted new construction is being proposed in the 1000 block of Lafayette Street. This request is to purchase 37.5 feet of the lot to build a garage next to their property. Further discussion concerning the property occurred and Rudy Jones encouraged approval to negotiate the purchase of this lot. Chairman Johnson questioned whether other developers would be submitting proposals. Rudy Jones indicated the development for new construction is still progressing,but we have divided the lots into 50 foot wide parcels that would still allow for the sale of this 37.5 foot parcel. Chairman Johnson confirmed the staff recommendation is to move forward on this request. Rudy Jones indicated,this sale will not hinder the progress of the new construction proposed for this area. Further discussion occurred on pricing of the lot and details for acquisition and demolition in that area. Chairman Johnson indicated it is not the Board's position to determine a price for the lot. Rudy Jones stated no,this would be through another committee,however, we may have some input. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the sale of the 37.5 foot parcel to Mike Narey and Doris Ruffridge adjacent to their property at 1020 Lafayette Street. On roll call: Jim Carstensen,Bernie Stroh, Mickye Johnson and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Update on East Side Ministerial Alliance CHDO Request. Chairman Johnson reviewed a letter Nancy Gulick sent to Rudy Jones outlining some issues concerning the CHDO request submitted by East Side Ministerial Alliance. Minutes May 19, 2009 Page 4 Nancy Gulick indicated Pastor Coleman brought in additional information and requested copies of our other CHDO files. Nancy stated she has not been able to review the additional information as yet, due to other commitments and deadlines. Chairman Johnson asked Nancy to explain the major issues concerning this CHDO request. Nancy Gulick indicated we are waiting for a couple determinations from HUD on whether Articles of Incorporation of the East Side Ministerial Alliance would be acceptable for the ENDC (East Side Neighborhood Development Corporation) and the IRS tax-exempt status is for EMA and not the ENDC. Nancy reported a request was also made to consider EMA as the CHDO,however all paperwork received to date is for the ENDC to be the CHDO. Nancy noted,this can be worked through, depending on which entity is applying for the CHDO status. Nancy mentioned another concern was with the CHDO Set-Aside Roles and Match Requirements. We did review these items and discussed that we would eventually need to know the source of the match funds, and also how they will be a CHDO. What is their role going to be as a CHDO. Michael Coleman, representing EMA stated they were trying to answer all the questions and understand this is an on-going process. Mr. Coleman noted they had asked if EMA could be certified as the CHDO and they are trying to work through the questions as quickly as possible. Chairman Johnson stated East Side Ministerial Alliance is a non-profit corporation and then we have the East Side Neighborhood Development Corporation, which is its own corporation. Chairman Johnson inquired if ENDC is its own corporation or a fictitious name of EMA? Chairman Johnson asked if separate articles were filed for the ENDC with the Secretary of State, or is it similar to a committee of EMA or is EMA the sole shareholder? Michael Coleman stated the ENDC is a subsidiary of EMA and has been incorporated with a 501c3 and has it's own Board of Directors. Mr. Coleman stated EMA is the sole shareholder, and they did not file with the Secretary of State. Chairman Johnson confirmed that the ENDC is similar to a subcommittee of EMA. Michael Coleman referred to excerpts in the CHDO Handbook, Chapter 3 —Requirement and Activities for sponsoring CHDO's. Chairman Johnson stated obviously this request is not moving forward as quickly as EMA would like to see happen. Michael Coleman stated they are aware that at this time we are moving forward and we will keep on with the process. Chairman Johnson reiterated that staff will work through the process to see if EMA is qualified or not, and hopefully next month we can resolve this matter. Minutes May 19, 2009 Page 5 Percy Burt indicated his concerns with what was required as additional information and felt his staff had provided all necessary documentation for review, stating perhaps that he misinterpreted the information in the letter. Chairman Johnson stated the letter simply indicated the deficiencies in information and required determinations needed from a higher source, or from EMA to further review the CHDO request. This letter did not indicate that you are not approved, it was simply a request for more information to deal with the status of EMA and/or ENDC to become certified. Mickye Johnson stated that no determinations could be made until all the information has been reviewed by staff and by HUD. We await HUD responses to several issues. Mr. Burt questioned the procedures to file for a CHDO application and expressed concern over getting information in bits and pieces. Chairman Johnson stated honestly,the Board has not been this actively involved in other CHDO certifications because the staff has always worked out the details prior to Board involvement. Following additional comments,the Chairman noted we are trying to go through the process to make this happen. Martha Frazier stated that she has specifically asked for information and has not been able to get a response. We just want to know what is necessary for us to proceed with this request. Chairman Johnson indicated, staff is telling us they need additional information to assess your position and we are trying to mediate the activity. We as a Board want to keep moving forward so you can get your certification, if you meet the guidelines. Mr. Burt stated they need a checklist to see exactly what they need to provide. Chairman Johnson said there is not a handbook of procedures to certify a CHDO because our staff usually takes care of these matters. For some reason this is not the case and we are being brought in. This is a cumbersome process, but we are trying to identify the outstanding issues and now that it is in writing we hope to find solutions. Rudy Jones stated Mr. Coleman presented a similar check list early on in the process. The Wisconsin Housing Authority provided a check list and we utilize the same HUD check list to certify CHDO's. Each entity chose to meet certain qualifications for the particular activity they wanted to pursue. Other CHDO's, i.e. Operation Threshold and Habitat for Humanity were certified based upon the type of activities they were planning to do. In their cases, the staff and capacity criteria was already in place to qualify them as CHDO organizations, since they were already doing housing construction when they came to us. They had their financial resources, etc. Some of those items needed to be tweaked to make sure they met the HUD guidelines. Rudy stated that early on in the process with EMA we tried to convey this information. We cannot Minutes May 19, 2009 Page 6 automatically certify an organization without verification and it appears the consultant misled them. We have tried to provide all the information we can to move forward. Nancy has done everything we've asked her to do. We feel it is a valid question to determine what entity will be certified, either EMA or the ENDC. This is critical. Mickye Johnson asked if there was any more information necessary to complete the task of responding to staff questions in this document. Martha Frazier stated we have turned in everything necessary to respond. Michael Coleman stated no,there are several items we still need to answer and to help you out we will provide answers from both Boards. We are trying to make sure we are clear on terms of capacity, experience and there will be no issue to which Board we are talking about. Mr. Coleman stated his colleagues have valid points and we want the commitment of the Community Development Board to continue to walk us through this process. Mr. Coleman said they are hoping to work out all the issues and he is working with Nancy Gulick in this process. adman Johnson-stated-the-Board-and staff-have made a commitment to work through-his-process and find out answers to questions still to be determined. 3. Discuss Council Public Hearing set for 7/06/09 at 5:30 pm. on the FY2010-2014 Five-Year Consolidated Plan and FY2010 One-Year Action Plan. Rudy Jones indicated the consultants, Mullin and Lonergan Associates, Inc. will present a draft of our five-year plan and one-year action plan for submission to the City Council on July 6, 2009. Chairman Johnson stated he has been contacted concerning the delay in the five-year plan. Does this mean there will be a slight delay in the funding, as usually the program year begins July 1st. Rudy Jones explained,the funding may not be available now until September 1st. Mickye Johnson inquired on compensation for the consultant as there had been discussion at a previous meeting. Rudy Jones stated it is being worked out within other committee meetings. Rudy stated that typically we start the five year process along with the annual process. Because we were inundated with other issues the process got started late. Rudy noted that since late summer of 2008 to date,we have had over $6 million in federal and state funds to administer,which is three times our normal allocation. This has posed a tremendous staff burden and we got behind the power curve and our process got started late. Rudy noted we were planning on doing the five-year plan in house,but because of the demand from other activities,we had to contract this process out. Because of the short time frame to begin this process,the higher the cost so we had to pay a premium for the fmal product. Rudy noted in the past UNI and INRCOG have prepared our plans. Due to the fact that INRCOG was busy with flood work as well, they didn't even apply for the process. Minutes May 19, 2009 Page 7 Chairman Johnson reiterated we were swamped, we dropped the ball for a bit and that is why the plan has been delayed. Bernie Stroh stated there was never an issue about paying the consultant? Rudy Jones stated it is being worked out. Bernie Stroh asked if this item came to the Board as an issue? Rudy Jones responded, no. Mickye Johnson thought it was brought up several months ago, and Eric just brought up another issue. If the five-year plan is not done in a timely manner, what is the outcome of that? Rudy Jones responded it will be done, with September 1st being the worst case scenario. It may be done sooner. If not, then our program year will start whenever the plan is approved by HUD. Chairman Johnson-stated,we have not lost any FY201-0-funds due--to this-delay? Rudy Jones responded no funds have been lost. It will delay the start of some of our programs 1-2 months and as we always state at the beginning of our funding cycle,programs are subject to the availability of funds. Unfortunately there will be a two month delay in the arrival of FY2010 funding. This has been an unusual year because of flood recovery activities,housing crisis activities, and the decrease of staff and no replacements. We are still dealing with the $6 million dollars in motion before our FY2010 allocation arrives. Chairman Johnson asked if there were any programs that we need to reallocate funds to cover this time frame. Rudy Jones stated that typically, if we run out of funds in a program, it is shut down until further funding is available. This has happened previously in our rehabilitation and emergency repairs programs. Occasionally, we have been able to find additional funds. Rudy noted with our budget allocations there was an enormous amount of tax credit projects which takes more dollars out of the HOME funds,where downpayment assistance funds come from. Downpayment Assistance funding is going to run out before the end of this fiscal year. However,we have been out of Emergency Repair funds since last fall, only being able to continue the program with funding provided from the Black Hawk Gaming Commission. We are currently out of Rehabilitation funding. Donna Lesyshen stated she has received calls from lenders and realtors and wonders if programs totally cease because there is no funding available. Rudy Jones stated that it will be close, and about 98% of salaries will be covered. We are trying to find ways to make that 100%, and staff has met with the Mayor to discuss these issues. Minutes May 19, 2009 Page 8 Bernie Stroh indicated some administrative costs were picked up on the other grants. Rudy confirmed that fact. 4. Update on State of Iowa,New Construction Unit Production Application. Rudy Jones stated the original proposal was submitted to the State with two developers. The State has requested additional questions and we have responded to them and anticipate a response within a week. We hope to amend the current contract with the State regarding the flood activities within the month and the developers can begin putting up new units. 5. Update status of the Section 108 Loan Guarantee. Noel Anderson stated as part of the Section 108 program we need to make a loan. Noel indicated he has been actively working with Crystal Distribution to make a loan for their building expansion. During the floods last summer, the bottom floors of the older Rath Buildings owned by Crystal were flooded out and to date those areas are still empty. Approximately 100,000 square feet of usable storage has been lost. Crystal Distribution is proposing to move forward with a 30,000 square foot cold storage building, with more efficient storage space. This would be an approximate $3 million dollar project with a$2.2 million in Se-ction 4 08-loans.. We-need to have-this lean in-place-by theme rl-of-j ne-and we-have-been actively working toward this goal with Crystal Distribution and our consultants. Chairman Johnson said,this is Plan A, what is Plan B if this loan doesn't go through. Can we do a reallocation or beg for an extension? What are the consequences if the loan is not approved? Noel Anderson said there is no identified Plan B,but we are discussing options with our consultant. Chairman Johnson inquired what are the consequences of not being in compliance? Rudy Jones stated, it will probably put us out of compliance with our 70/30 percent rule,which tells us 70% of our funds must be allocated towards low-and moderate-income projects/persons and the loan was to identify job creation for low- and moderate-income clientele. Rudy stated without the loan, we will not meet that certification. Chairman Johnson said he understands this criteria. What are the consequences from HUD? Will we lose funding,past or previous? Rudy Jones said he was not sure, stating this is a road we have never gone down before. This has been a major concern. Chairman Johnson stated our job as a Board is to act as fiduciaries to ask those questions. Here we are 40 days out and you cannot tell us what the consequences will be or give us a Plan B,this is a concern. Rudy Jones indicated the Section 108/BEDI Grant was a three-year strategy than ran hand in hand with the grants and the loans. Our office was responsible for the Grant portion and the Loan portion was being handled under Don's watch. Minutes May 19, 2009 Page 9 Chairman Johnson expressed concern that we won't have much leverage in these negotiations and we need to pursue getting an extension if at all possible so a bad loan is not consummated. If this is not possible,we need to explore what would be Option B, so that we don't have to do something we may regret. Rudy Jones explained that staff met with the Mayor to discuss this situation. Another meeting is scheduled for Thursday and one of the questions raised was that we should consider visiting with HUD as soon as possible. Chairman Johnson indicated a one-year extension would take the pressure off this situation. Bernie Stroh stated it may also give us an opportunity to pursue other interests if negotiations fall through with Crystal. Mickye Johnson stated it appears we are facing some dire straights. We don't know the outcome and have only 40 days remaining. Mickye stated he wants to know what financial resources we may potentially lose because of the Section 108 Loan. We also have to extend our current workload for two months without any additional resources, which puts us in a quandary right now. Rudy Jones stated we try to keep the Board abreast of what is needed. Our decisions are made based upon the current schedule for each activity. If we cannot get assistance to pull the trigger on some issues, then we don't, simply because we are accountable at certain parameters. We are doing the best we could to accommodate all the schedules and time frames available to us. Chairman Johnson stated he understands, but the best won't be good enough if we lose FY2010 funding because of this situation. The Chairman noted,this is being said on behalf of the citizens of Waterloo and the staff. Mickye Johnson inquired who took on the loan responsibility when Don Temeyer left. Rudy stated this responsibility was transferred to Noel, who was responsible for all of Don's activities. Noel Anderson stated part of the discussion on an extension is something we will continue to explore with HUD. Crystal was ready to move forward and from their standpoint a year ago,things were going great, and they were expanding, but the flood set them back and they are looking to recover business that they have lost. The flood changed the whole picture. Chairman Johnson indicated,this is a factor we understand, and there is no blame intended, but we don't want to lose our funding and we can't be put in a bad position because our back is up against the wall with this deadline. We either need to work on an extension or negotiations with Crystal or a Plan B, because time is running short. Chairman Johnson said this will be an agenda item next month, with hopefully good news. Minutes May 19, 2009 Page 10 F. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for April 2009. Following discussion,it was moved by Bernie Stroh and seconded by Mickye Johnson to endorse the rehabilitation contracts for April 2009. On roll call: Jim Carstensen,Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. G. DISCUSSION ITEMS. 1. Rehabilitation Specialist Position. Rudy Jones indicated he is working with the Human Resources Department to see what alternatives are available, waiting for the current process to expire,puts us into February 2010. We have advised current staff to scale back on overtime and prepare to work the regular schedule until this can be resolved. Chairman Johnson inquired on opportunities to cross-train existing staff or re-allocate part of their administrative duties. Rudy expressed these are good questions, but much of the Rehabilitation Specialist duties require specialized training and lead certification. Few folks on staff have this designation outside of the Rehabilitation Staff. Perry Goodman does have some 24 hr lead certification training, and has some rehab experience from the past. Chairman Johnson inquired if some of the administrative responsibilities could be designated to other staff members so these specialists could spend more time in the field? Nancy Gulick stated we have discussed having a temp assist with administrative items. Mickye Johnson indicated he read a comment from a realtor in perhaps, Call the Courier,that he had not been notified on resources available through Community Development. Rudy stated he had not seen the article. Chairman Johnson inquired about the Summerland Park project and what is happening with this project. Rudy stated every financial institution was notified in April about the TIF being discussed for residential housing and about the new construction program sponsored by the State. Rudy noted we have met with realtors and other developers. Rudy said one person emailed him and was upset, stating they were not informed,however,they were in attendance at the meeting. Chairman Johnson said he received a complaint from a lender concerning the lead lender, Valley Bank, and we have local lenders with Waterloo Housing Partnership, and how were they involved. Rudy replied the State asked for a program that the developers would put together their own team and there were no restrictions on who could participate. These are separate funds from the Waterloo Housing Partnership Lenders, so this may be part of the confusion. Minutes May 19,2009 Page 11 Noel Anderson said the Endeavour Group has scheduled a number of housing meetings to discuss opportunities within the community with realtors, lenders, etc. When the State program came out it was an aggressive turn-around-time, so there was no time for extensive requests for proposals. It was presented to those attending the meetings and those expressing an interest in the housing opportunities in Waterloo put their own teams together. Chairman Johnson asked if we have received a report from Randy Roth of the Endeavor Group? Further discussion continued and Rudy Jones stated we are waiting because the TIF is a major component of Randy Roth's report. They are scheduled to meet the end of this month. Noel Anderson stated the Summerland Park project is a good opportunity for TIF, and the state program is still moving ahead. Chairman Johnson asked the record to reflect that Board member alumni, Larry Oltrogge, was present in the audience. F. 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O '� a-+ a) as of as cep N 0 M C L d v E L O as N = V E L- O v E L LL E 2 c6 e_ v E u- N 0 -J 0 cao 3 = -J CO a`- C� COa co a. m = -I -a, d W a w m • g c '- 0 "0 cp o c C C < E z d I-- 0 0 3 o Cl) w -, 1- J CO 5 � I-- 0 0 -, I-a (f.fit,-1,-xx 47, yz,- 71/4/ 9 MINUTES COMMUNITY DEVELOPMENT BOARD PUBLIC HEARING CITIZEN INPUT NEEDS HEARING FOR FY2010-2014 FIVE-YEAR CONSOLIDATED PLAN April 28,2009 Chairman Eric Johnson called the public hearing to order at 5:00 p.m. at the Center for the Arts, Peterson Town Hall,225 Commercial Street, Waterloo, Iowa. The Chairman welcomed participants and Board members to the meeting. The Chairman stated the purpose of the hearing was to gain citizen input into the planning process for the FY2010-FY2014 Five-Year Consolidated Plan. Board Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Chairman Eric Johnson. Board Members absent: Elsie Duncan. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Michelle Langenwalter,Housing and Community Development Specialist- City of Cedar Falls;Ann Northey, Administrative Secretary; Consultants, Eric Fulmer and Marjorie Williams, Mullin&Lonergan Associates, Inc.; and a few interested citizens. A. APPROVAL OF AGENDA It was moved by Mickye Johnson 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 ad,published in the Waterloo/Cedar Falls Courier on Sunday,April 19, 2009 announcing the public hearing,was available for review. It was moved by Jim Carstensen and seconded by Gary Rankin to approve and place on file the affidavit for the notice published in the Waterloo Courier. Motion carried. Chairman Johnson indicated he would open the hearing,receive comments from the staff, Rudy Jones and from the consultant, Eric Fulmer, and then accept comments from the public. C. MOTION TO OPEN PUBLIC HEARING: It was moved by Bernie Stroh and seconded by Jim Carstensen to open the public hearing. Motion carried. Minutes April 28, 2009 Page 2 D. HOLD HEARING: Rudy Jones, Community Development Director,thanked Eric Fulmer and Marjorie Williams for their assistance in the process. Rudy stated the department currently has many programs and activities to administer, however, we have an opportunity to move to the next level. Rudy commended the staff for their steady efforts toward these goals. Rudy explained the importance of citizen participation in the process and thanked members of the public for attending. Consultant, Eric Fulmer, of Mullin& Lonergan Associates, Inc. reviewed a slide presentation entitled, Orientation to the Community Development Block Grant Program and HUD's HOME Program. Mr. Fulmer explained the five-year Consolidated Plan is a regulatory requirement of HUD. We go through this process so that we may continue to receive funding for the CDBG and HOME programs. This particular plan will begin in Fiscal Year 2010 and runs through Year 2014. Mr. Fulmer indicated during this process they have met, and will continue to meet with various stakeholders that play a role in community development and housing in the cities of Waterloo and Cedar Falls. Mr. Fulmer stated the elements of the Five-Year Plan include a Housing and Homeless Needs Assessment, a Housing Market Analysis, a strategic plan that establishes what the cities' priorities will be over the next five years and an Annual Action Plan that focuses strictly on Federal Fiscal Year 2010 and the activities proposed to be undertaken during that fiscal year. We are required to hold two public hearings, one to identify the housing and community development needs and a second hearing later in the process to present the five-year plan and proposed activities for the one-year action plan to the public. Mr. Fulmer noted we must make sure all activities being included in the cities' programs are eligible CDBG activities under the regulations. Housing rehabilitation is an eligible activity, providing assistance to prospective homeowners,public facilities and improvements, block grant funds can be used to remove blight, acquire and demolish property, and prepare sites for new development. Funds may be used in low-income neighborhoods to carry out code enforcement activities and on a limited basis, for economic development activities to preserve or create jobs. It may also be utilized for redevelopment activities including acquisition and disposition of real property. Lastly,public services can be utilized by health and human services agencies to address social needs of the community. Mr. Fulmer then explained the non-eligible use of block grant funds. Mr. Fulmer explained the three broad National Objectives that we must meet. 1)At least 70% of the total non-administrative portion of the cities' block grant funds must benefit low- moderate-income persons or provide direct benefit. 2) Carry out activities designed to prevent or eliminate slums and blight with only 30% of the funds. 3)Activities designed to meet Urgent Needs, such as public health and safety for low-income persons. These activities can be carried out in specific areas or on an area-wide basis. Mr. Fulmer reviewed statistics of the low-and-moderate income population in the Waterloo/Cedar Falls area, based upon 80% of the median income for the metro area. These Minutes April 28, 2009 Page 3 figures are adjusted by household size, so a one person household can earn up to $33,550 and be considered a low/moderate income resident of the city. In Fiscal Year 2010, Waterloo is expecting to receive $1,374,000 (estimated) in CDBG allocations and Cedar Falls will be receiving$305,636 (estimated). HOME funds expected is approximately $608,000 for the consortium. Mr. Fulmer stated Supplemental/Stimulus Funds will be coming to the city in a variety of forms and these programs are all new and lack regulatory substance at this time. CDBG-R funds earmarked for Waterloo in the amount of $373,000 will be added to the block grant budget. Cedar Falls will receive an additional $82,000 of supplemental funds. Stimulus programs for homelessness activities are also being awarded and Waterloo is ear-marked to receive $570,000. Another funding source coming through the Department of Energy for energy efficiency types of improvements and Waterloo qualifies for $665,000 and Cedar Falls $162,000. This information is included because we are receiving input on all those programs. Mr. Fulmer asked for citizen input on the needs of the community and how funds should be spent on housing and community development needs. Chairman Johnson indicated comments were welcome as part of the record in planning for the five-year plan. Ryan Madison expressed his concern over neighborhoods where property owners are not taking care of their property and other dilapidated buildings are eyesores and create problems for the children and families in the neighborhood. Mr. Madison urged the city staff to work hard to eliminate these blighted conditions in the neighborhoods, so homeowners who invest in a neighborhood can keep moving forward and the value of their properties can be stable. Mr. Madison indicated the importance of Code Enforcement and urged Board members to be pro-active in this area. He noted many young families want to invest in a neighborhood where they feel safe, secure and can be proud to raise their children. Chairman Johnson asked for further comments. No further comments were received. E. 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. F. MOTION TO ADVERTISE SUMMARY OF THE PROPOSED FY2010-FY2014 FIVE-YEAR PLAN AND FY2010 ONE-YEAR ACTION PLAN FOR A 30-DAY COMMENT PERIOD (JUNE 1-30,2009)AND AUTHORIZE DATE OF COUNCIL PUBLIC HEARING—JULY 6,2009. Minutes April 28, 2009 Page 4 It was moved by Bernie Stroh and seconded by Jim Carstensen to approve submission of the proposed FY2010-FY2014 Five Year Plan and FY2010 One-Year Action Plan for a 30- day comment period beginning June 1-30,2009 and request City Council hearing on July 6,2009. On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Chairman Johnson stated the consultants, Mullin and Lonergan Associates will prepare the Five- Year and One-Year Plan. This document will be available to us by June Plat which time the 30-day public comment period will begin. After the comment period expires,the plans will go before the City Council on July 6, 2009 for approval and submission to HUD. Copies of the plan may be reviewed at the Community Development office. The public is encouraged to attend the council hearing. G. ADJOURN Chairman Johnson thanked everyone for attending and with no further business adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tern • `7.-11/1/49' 641'44* MINUTES COMMUNITY DEVELOPMENT BOARD MEETING February 17, 2009 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, February 17, 2009. Members present: Jim Carstensen, Mickye Johnson, Gary Rankin and Eric Johnson. Members absent: Elsie Duncan and Bernie Stroh. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning&Development Director; Steve Schmitt, City Council Liaison; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey,Administrative Secretary; Michael Coleman and Martha Frazier, East Side Ministerial Alliance; and Tim Jamison, Waterloo/Cedar Falls Courier. Chairman Johnson stated the proposed Agenda has been amended to add Item No. 5.under New Business: a request to forgive the forgivable loan at 1050 Independence, Wyant, Owner. The Chairman also noted that representatives were present from East Side Ministerial Alliance to review a matter under discussion items. A. APPROVAL OF THE AGENDA AS AMENDED. It was moved by Mickye Johnson and seconded by Gary Rankin to approve the amended agenda. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING AND PUBLIC HEARING ON JANUARY 13,2009. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the minutes for January 13,2009 and place them on file. Motion carried. C. OLD BUSINESS: 1. Update on Black Hawk Gaming Commission application for Emergency Repairs. Rudy Jones reported an application was submitted by Community Development to the Black Hawk Gaming Commission, requesting funds to supplement the Emergency Repairs Program. This application was denied, due to the fact that the BHGC does not entertain applications two years in a row. Rudy indicated we will resubmit a similar application in the fall for the 2010 fiscal year. Minutes February 17, 2009 Page 2 2. HUD Response to Monitoring Findings. Chairman Johnson noted a response was received from HUD concerning the monitoring findings during their last visit. HUD has accepted the staff responses to those findings and no further action is needed. The file is now closed. 3. Update on Flood Recovery. Rudy Jones noted the State of Iowa has approved additional funds for flood recovery and the City of Waterloo's allocation is approximately$820,000. These funds come with additional criteria and we are working through the applicants, currently now on file. First priority will be given to area residents meeting the qualifications that have not previously received Jumpstart funding. Chairman Johnson inquired if administrative expenses come with these funds? Rudy confirmed there are some funds for administrative costs included with this allocation. Rudy called the Board's attention to an article in the Courier 2/17/09 written by Mike Tramontino, Iowa Department of Economic Development Director, stating some of the rational and why it has been so tedious working through these flood applications with all the red tape. Rudy noted staff is working aggressively to get through the process. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for January 2009. Rudy Jones stated due to the fact we have all the flood recovery dollars, we are transitioning from some of our current rehabilitation projects to the flood recovery activities. We are working diligently to complete current rehab projects so we can focus on the flood recovery applicants. Chairman Johnson inquired if all the 2009 funds for rehabilitation have been allocated. Rudy Jones indicate they have not all been utilized. Any funds not utilized can be rolled into the next fiscal year. Mickye Johnson inquired what would be the average cost of flood recovery on a flooded home. Rudy Jones stated the guidelines allow for differing allotments. On some of the emergency repairs "Jumpstart Express" cases the maximum allotment is $24,999 and the maximum for a complete rehabilitation project is up to $60,000. We are averaging anywhere from $20,000 - $30,000. An inspection must be made on each property. Mickye Johnson also asked if a total rehabilitation is performed, do we have to consider the lead issues in the home. Rudy Jones responded that we do have to complete lead remediation on each home where a full rehab is completed. Following discussion, it was moved by Jim Carstensen and seconded by Mickye Johnson to endorse the rehabilitation contracts for January 2009. On roll call: Jim Carstensen,Mickye Johnson,Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Minutes February 17, 2009 Page 3 2. Down Payment Assistance to expanded CURA area. Rudy Jones indicated within the past year the City of Waterloo has expanded the Consolidated Urban Revitalization Area. We are formally requesting that the Board align our Down Payment Assistance program to include these new boundaries. Donna Lesyshen presented and explained the map outling the expanded areas. The extended boundaries include approximately 250 more homes. Donna noted the lenders and realtors will need to be informed of these new boundaries. Donna asked the Board to confirm that the boundary lines will be considered for both sides of the street when determining eligibility. Noel Anderson indicated that on the Western edge of the map the Council approved primarily commercial areas along University Avenue and the western side of Ansborough Avenue. Because of the multiple TIF districts that we have to help business expand,they wanted to go after some of the existing commercial corridors already in place to get some incentive there for infill redevelopment and expansion. Most of this area is zoned for commercial development,however, some areas for residential housing exist. Noel explained the rational for setting the boundaries in describing the CURA. It was moved by Gary Rankin and seconded by Jim Carstensen to approve adding the expanded CURA areas to the Down Payment Assistance Program. Gary Rankin questioned whether the boundary line was meant to go down the middle of the street or include both sides? Donna indicated for CURA purposes the line goes down the middle of the street. She explained we had a homeowner who qualified for assistance and wanted to purchase a home on the opposite side of the boundary street. This issue was brought before the Board and it was decided to revise the boundary for the Down Payment Program only,to include both sides of a perimeter street. Noel Anderson commented that the CURA boundary line is adhered to for other purposes. The Chairman called for the vote. Motion carried. 3. Approve Lincoln Savings Bank as a Down Payment Assistance Lender. Donna Lesyshen indicated lender criteria must be a local, full service financial lending institution. Lincoln Savings Bank meets this criteria and wishes to participate in the Down Payment Assistance Program. It was moved by Mickye Johnson and seconded by Gary Rankin to approve Lincoln Savings Bank as a participating lender in the city's Down Payment Assistance program. Motion carried. 4. Transfer$35,000 from Rehabilitation Line Item to Emergency Repairs Line Item. Rudy Jones stated with the increasing demand for Emergency Repair assistance,we have depleted most of the CDBG allocation this year. All of the Black Hawk County Gaming Commission funds have also been depleted. Therefore, it is necessary to transfer funds from a different line item to carry out the Emergency Program to the end of the fiscal year. Approximately $5,000 remains in the Emergency Minutes February 17, 2009 Page 4 Repair line item. Following discussion, it was moved by Jim Carstensen and seconded by Mickye Johnson to authorize transfer of$35,000 from the Rehabilitation Line Item to the Emergency Repairs Line Item. On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 5. Request to forgive loan at 1050 Independence,Wyant, Owner. Chairman Johnson indicated a mortgage was recorded in October 2005. The husband recently passed away and the wife is asking the Board to forgive the mortgage. Chairman stated this was new information and gave the Board time to review it. Rudy stated,the owner mentioned refinancing her home, and staff thought this to be a subordination request,however, in conversations with the homeowner, she wants the loan forgiven due to the death of her husband. Jim Carstensen asked about the balance on the forgivable loan. Rudy Jones stated 25%of the original amount is due in the amount of$8,740.00. Chairman Johnson indicated the mortgage is written that if both parties are deceased,then the mortgage could be forgiven, unless funds were going to the state. When only one of the mortgagors dies, then it is up to the discretion of the Board whether or not to release. Presently, a year and a half remains on the mortgage and the owner still lives in the house. Rudy stated the reason he brought this before the Board is for clear direction from the Board. It was moved by Gary Rankin to deny the request. Motion was seconded by Jim Carstensen. Gary Rankin asked why would we forgive the loan when the homeowner still lives in the house. What is the rational for doing so? Chairman Johnson stated at times when there is less than one year left on the forgivable mortgage, we have used some discretion to forgive. The Chairman indicated he would not be opposed to subordinating for another loan. Mickye Johnson inquired about the need for the new loan. Is it to refinance or for bills, etc. there are questions we would need to have answered. Gary Rankin stated a subordination and completely forgiving the loan are two different things. Why have a mortgage in the first place if we are going to forgive it later on at the homeowner's request. Minutes February 17, 2009 Page 5 Mickye Johnson stated by forgiving we would be setting a precedent and the next person could ask us to forgive it two years out, depending on their circumstances. Jim Carstensen indicated there is not sufficient information for him to pass this request. Following discussion, the Board suggested the homeowner provide the appropriate information to request a subordination which could be reviewed at another meeting. Chairman Johnson suggested the homeowner be informed there is no intent to collect on the forgivable loan if she desires to subordinate to another loan. Rudy Jones indicated he would pass this information on to the homeowner. Chairman Johnson called for the vote. Four Ayes. Motion carried and the request to release the mortgage was denied. DISCUSSION ITEMS. 1. Community Development Week Recognition (April 12-18,2009) Rudy indicated CD Week is coming up in April and we should use this as an opportunity to showcase the variety of projects we are working on at this time. The stimulus dollars and other funding streams, as well as our involvement with consultant Randy Roth, in developing our housing strategy, gives us a lot of positive information to update the community. 2. East Side Ministerial Alliance (EMA) Michael Coleman,Vice President of the East Side Ministerial Alliance stated that EMA desires to become a CHDO(Community Housing Development Organization). Mr. Coleman reviewed their progress, beginning in April 2008 to get resources and build capacity to become a CHDO. He expressed his frustration with Community Development staff in getting this process underway so that EMA could become a certified CHDO organization. Chairman Johnson asked Rudy to define a CHDO and what advantages there are to be certified as a CHDO, specifically for background information. Rudy Jones explained the CHDO designation used to be with Operation Threshold,now it is through Habitat for Humanity. CHDO's are responsible for assisting in housing directives, using primarily HOME funds in the area of new construction,rentals, down payment assistance or housing activities. In 2004 we invited EMA along with other nonprofits,to take the CHDO training, at the expense of a consultant. Shortly after that time we picked up Habitat for Humanity as a CHDO because they were in the business of building homes and they met the Board's criteria. Around that same time, Operation Threshold discontinued their CHDO responsibilities. Spring of 2008 we began to pick up additional responsibilities in terms of the housing crisis and natural disaster crisis. Rudy indicated he explained to Martha Frazier, through emails that there wasn't enough time to take on additional responsibilities with all the necessary functions required by the state to process disaster clients. Additional time will be required to hand-hold or walk along side any organization to provide that type of activity. Minutes February 17, 2009 Page 6 Chairman Johnson asked what would be the advantage to EMA to become a CHDO and secondly, what advantage would there be to the city to have another CHDO? Rudy Jones indicate the advantage to EMA would make them eligible for direct HOME dollars for their CHDO activity from our source of HOME dollars,which includes not only funds for the project but also some administrative dollars. It would provide the city with another provider for housing activities of the four eligible activities. Chairman Johnson indicated we had worked with EMA in the past,were they not required to be a CHDO at that time? Rudy stated they were not required to be a CHDO because of the type of activity they provided was a pass-through service for the funding. Michael Coleman stated EMA is looking to reduce the blighted areas by rehabilitating homes. This is where they want to concentrate their efforts. He explained other areas they want to pursue to build capacity. Mr. Coleman expressed their difficulties in getting their plan done and moving forward when they cannot get assistance from Community Development. Chairman Johnson asked what would be involved. Rudy stated this is an on-going professional relationship. Recalling some new construction difficulties we experienced with the previous CHDO designation through Operation Threshold. At this point a relationship with EMA is vague, depending upon the projects they undertake. Michael Coleman indicated their primary focus would be on rehabilitation, to get blighted properties back on the tax roles. Mickye Johnson inquired what affect this would have on the current staff. Rudy explained more commitment of time, with everything else that needs to be done. All sorts of funding has been coming into the department over the past four-six months and it is critical that we spend the time to keep those funds moving. Trying to establish a professional working relationship at this time is just not feasible with our limited staff. Our rehabilitation department is overloaded and has been working overtime to maintain current projects. Hopefully in the future we could reconsider this option. Chairman Johnson asked if there was a timeline that could be worked out with EMA to help them get established. Rudy Jones indicated Community Development has more funding to administer than he has seen in his 20 year tenure. Coming soon will be approximately$800,000 for neighborhood stabilization to be spent and/or committed within two years,we must extend our Lead Grant, due to flood related activities and we are at a production crunch. Minutes February 17, 2009 Page 7 Michael Coleman stated this has been an on-going process since 2004 and EMA has been faithful in fulfilling their part. EMA is just asking for consideration to make our community a better place. Community Development should have lots of work to do and we are happy about that, but EMA should not be penalized from becoming a CHDO to help out our community. Gary Rankin asked if a certain amount of funds were specified for CHDO organizations? Rudy Jones stated there is a percentage of the HOME funds that must go toward a CHDO activity and Habitat for Humanity has been designated funds for this next fiscal year. Considerable discussion continued on CHDO requirements vs. HOME requirements and the option for EMA to apply for HOME funds like any other entity. Michael Coleman stated EMA would like to apply for funds at the state level, but cannot participate in many programs through the state because they lack the CHDO status designation. Chairman Johnson indicated this is a difficult decision,when you have a community organization that comes forward with a plan to do something it is our job to support them as best we can to the extent through their efforts and hard work could secure additional funding that we are not getting. That benefits the whole community. Secondly, I respect our staff and don't want to meet monthly and dictate to them what work must be done. These are difficult issues and we need to prepare for our public hearing at 5:00 p.m. Perhaps we can continue this discussion at the next Board meeting. Gary Rankin stated our funding cycle for FY2010 has almost been decided and there is not enough time to get another CHDO up and running before the fiscal year begins. Gary suggested the certification be considered for FY2011. Michael Coleman, indicated their main concern at this point is to get certified as a CHDO. They need to know the process to complete that end. Rudy Jones stated there is criteria to follow, and CHDO status is not easy to attain or to manage. Chairman Johnson asked if the Board was interested in working with EMA to secure CHDO status. Following further discussion,Board members agreed this matter would be placed on the March agenda for further discussion and staff was directed to work out a time line for this process. Chairman Johnson indicated this would be a matter of Old Business at the next meeting. i F. ADJOURN MEETING Chairman Johnson reminded Board members of the 5:00 p.m. public hearing. 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Also present: Steve Schmitt, City Council Liaison;Noel Anderson, Community Planning and Development Director; Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Ann Northey,Administrative Secretary; Michael Coleman and Martha Frazier,East Side Ministerial Alliance; David Meeks, Human Rights Department; Catherine Toussaint, Go Sew; Barb Grant and Clarissa Nicholson, Operation Threshold; Beth Prather,Northeast Iowa Food Bank; Kathy Thill, Sisters of Mercy, House of Mercy; Cynthia Lee and Kelly Matter, CommonBond Communities; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF AGENDA It was moved by Mickye Johnson and seconded by Jim Carstensen 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 Sunday,February 8, 2009 announcing the public hearing,was available for review. It was moved by Jim Carstensen and seconded by Mickye Johnson to approve and place on file the affidavit for the notice published in the Waterloo Courier. Motion carried. Chairman Johnson indicated the process is to allocate the federal dollars provided to the community. Public comments were heard at our last public hearing. A subcommittee of three Community Development Board members and three City Council liaison members met to review applications. CDBG requests totaling$2.2 million have been whittled down to our proposed allocation of$1.3 million and the same process has been done for HOME requests. This is a proposed budget for the FY2010 year. Further comments will be heard at this public hearing and the Board will make a recommendation to the City Council. A comment period will be held Minutes February 17,2009 Page 2 for 30 days,then the recommendation goes before the City Council for their public hearing in April. The chairman noted the City Council will make the final determination as to which projects get funded. C. Motion to Open Public Hearing: It was moved by Mickye Johnson and seconded by Gary Rankin to open the public hearing. Motion carried. David Meeks,Director of the Waterloo Commission on Human Rights presented a revised request to the Board for consideration on funding a portion of the Fair Housing Coordinator position activities. The initial request was for$10,000 and they are reducing the amount to $2,000. Mr. Meeks noted their services are community-wide and assured the Board these funds would be used wisely to help others. Catherine Toussaint, of Go Sew indicated this is a company she created which teaches people to sew and become self-sufficient entrepreneurs. Ms. Toussaint explained her teaching process and requested further consideration of her project. Barb Prather,Director of the Northeast Iowa Food Bank,thanked the Board for consideration of the Food Bank request. Barb Grant,Director of Operation Threshold, also thanked the Board for supporting their requests even though they were not fully funded. Ms. Grant stated funding to assist with the foreclosure crisis is particularly appreciated. Cynthia Lee of Common Bond Communities indicated their proposal falls under the category of Tax Credit Projects utilizing HOME funds. Ms. Lee indicated their proposal to construct 40 units of affordable housing is consistent with the local Consolidated Plan goals. They will be able to serve a number of low-income families and households with special needs,homeless and disabilities. She further explained all units will be affordable at 50%of median and a portion at 40%of median income. Ms. Lee indicated they have received funding from the Federal Home Loan Bank and have applied for tax credit funding and some State Home funds. Chairman Johnson stated$182,000 was allocated toward the tax credit projects. To clarify,we don't know which projects will be approved for tax credits, so this is allocated generically, and after the tax credit projects are approved,then we will determine who receives our HOME funds. Rudy Jones indicated this statement was correct. Jim Carstensen questioned the original amount of Common Bonds request. Chairman Johnson noted it was$282,000. Gary Rankin inquired if this amount was modified. Nancy Gulick stated the request was split into two years for the tax credit projects. Chairman Johnson asked for further comments from the public. Minutes February 17, 2009 Page 3 Rudy Jones went on record in support of the Operation Threshold Foreclosure Prevention Program request. Rudy commented he is not convinced the housing crisis has bottomed out, and hoped the Board would consider additional support to this program. No further comments were received from the public. D. CLOSE PUBLIC REARING The Chairman called for a motion to close the hearing. It was moved by Gary Rankin and seconded by Jim Carstensen to close the public hearing. Motion carried. E. MOTION TO AUTHORIZE PUBLICATION OF 30-DAY COMMENT PERIOD (MARCH 1-30,2009)AND SUBMIT RECOMMENDATION TO CITY COUNCIL FOR A PUBLIC HEARING—APRIL 20,2009. Chairman Johnson stated we have the subcommittee recommendation(copy attached) and received additional comments from the Commission on Human Rights to reduce their request to $2,000 for their housing coordinator position and Rudy Jones is suggesting more funds for the Foreclose Prevention Program through Operation Threshold. Gary Rankin asked for specifics on the use of funds for the Human Rights Coordinator position. David Meeks indicated he would use these funds to work more closely with the fair housing alliance—tenants, landlords and citizen committees to educate them on tenant/landlord issues. The funds would be earmarked for advertising and other issues to be pro-active in the neighborhoods. Chairman Johnson questioned Neighborhood Services increase from$80,000 to $85,000. Rudy indicated some additional neighborhoods have been included over the past year and they are looking at more outreach. Since the recent disasters in the local area,they have been working hard to coordinate information between the city and various agencies. Chairman Johnson asked Rudy to explain his increased allocation to the Foreclosure Prevention Program. Rudy Jones stated funds could be diverted from Single Family Rehabilitation to increase funding for the foreclosure prevention program. Discussion continued. Chairman Johnson inquired if we had been through all zones for the Sidewalk Repair program. Rudy responded that we are on the second round of completing all zones. Chairman Johnson indicated that$35,000 seems like a high figure for the sidewalk project. Gary Rankin stated Zone 9 is a very large area slated for sidewalk repair this year. Additional discussion among Board members continued on which projects could be reduced to increase the foreclosure program and fund the human rights request. Minutes February 17, 2009 Page 4 Again, questions arose on the foreclosure crisis. Barb Grant of Operation Threshold, explained they are receiving some other funding,but extra funds for foreclosures,would definitely help them manage this program. Following discussion, Chairman Johnson indicated he would make the following changes to the proposed budget from statements he has heard: Take$5,000 from Neighborhood Services and take them down to $80,000 where they were last year, increase Operation Threshold to $10,000 on the foreclosure prevention program and take $2,000 out of Single Family Rehabilitation and give it to Human Rights for the Housing Coordinator Position. Bernie Stroh indicated,there will be resistance from the Council if we reduce Neighborhood Services. Rudy Jones supported Neighborhood Services over the Engineering Sidewalk Repair requests. Engineering will get the sidewalks completed whether it is completed with our funds or through an assessment program. Following discussion it was moved by Jim Carstensen to take$5,000 from City of Waterloo/Engineering Department for the Sidewalk Repair and move it to Operation Threshold's Foreclosure Repair Program and take $2,000 from Single Family Rehabilitation and put that into the Commission on Human Rights for the Housing Coordinator position and to submit this recommendation to the City Council for approval at a public hearing on April 20,2009. To recap, Chairman Johnson indicated the City of Waterloo Engineering Department will go from$35,000 to $30,0000, Operation Threshold's Foreclosure Prevention Program will go from $5,000 to $10,000,the Single Family Rehabilitation Program will be reduced from$542,000 to $540,000 and Human Rights Commission will be included with$2,000 in funding. Board members discussed the difficult task of paring down these applications, and the subcommittee was thanked for its efforts. Bernie Stroh commented on more council input into the process this year than ever before. Following discussion the Chairman called for a roll call vote: Jim Carstensen,Mickye Johnson, Gary Rankin, and Eric Johnson voted Aye. Nays: Bernie Stroh. The Chairman declared the motion carried. F. ADJOURN Chairman Johnson thanked everyone for attending and with no further business adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tem Attachments Minutes February 17,'2009 Page 5 PROPOSED SUBCOMMITTEE RECOMMENDATION FY2010 CDBG and HOME Program — Subcommittee Recommendations CDBG Organization Recommended Activity 2-8-09 City of Waterloo/Engineering Department $ 35,000 _FY2010 Sidewalk Repair-Block Grant Program Zone 9 Clearance and Demolition $ 10,000 Demolition of Vacant Dilapidated Structures Consumer Credit Counseling Services of NE Iowa $ 4,000 Public Access to Housing Education Emergency Repairs $ 150,000 Emergency Repair for Single Family Rehabilitation General Program Administration $ 274,914 CDBG Administration(20%of Allocation) Neighborhood Services $ 85,000 City Liaison with Neighborhoods Formerly BHCenter for Independent Living-Operation Northeast Iowa Center for Independent Living $ 10,000 Accessibility Food Bank Capital Campaign- Northeast Iowa Food Bank $ 50,000 "Setting the Table of Hope" Operation Threshold $ 5,000 Foreclosure Prevention Program Operation Threshold $ 15,000 Weatherization-Plus Program Rehabilitation Administration $ 143,085 Rehabilitation Project Delivery Costs Single Family Rehabilitation $ 542,574 Single Family Owner-Occupied Rehabilitation Administrative Expenses for Waterloo Housing Waterloo Housing Partnership Coordinator and Partnership Coordinator and Home Buyer Education $ 50,000 Home Buyer Education Classes TOTAL CDBG REQUESTS $ 1,374,573 HOME Organization Recommended 2-8-09 Activity City of Cedar Falls $ 75,000 Annual Allocation-HOME Consortium Tax Credit Projects $ 182,721 HOME funds for approved Tax Credit Projects Iowa Heartland Habitat for Humanity Affordable Homes-New Construction and (CHDO Request) $ 91,203 Rehabilitation Activities Operation Threshold $ 23,000 Tenant Based Rental Assistance Program Single Family Rehabilitation $ 75,000 Single Family Owner-Occupied Rehabilitation Down Payment Assistance-First Time Home Waterloo Housing Partnership $ 100,000 Buyers in the CURA Area Administration $ 61,099 HOME Administration(10%of Allocation) TOTAL HOME REQUESTS $ 608,023 Following discussion it was moved by Jim Carstensen to take$5,000 from City of Waterloo/Engineering Department for the Sidewalk Repair and move it to Operation Threshold's Foreclosure Repair Program and take$2,000 from Single Family Rehabilitation and put that into the Commission on Human Rights for the Housing Coordinator position and to submit this recommendation to the City Council for approval at a public hearing on April 20,2009. MINUTES COMMUNITY DEVELOPMENT BOARD PUBLIC HEARING FOR CITIZEN INPUT FY2010 CDBG and HOME PROGRAM January 13,2009 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 FY2010 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, Elsie Duncan, Mickye Johnson, Gary Rankin, Bernie Stroh and Chairman Eric Johnson. Also present: Quentin Hart, Reggie Schmitt, and Steve Schmitt, City Council Liaison;Noel Anderson, Community Planning and Development Director; 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; Barb Grant, Clarissa Nicholson, Billie Allen-Williams, and LeKeisha Veasley of Operation Threshold; Rick Curran, Leisure Services Dept.; David Meeks, Waterloo Commission on Human Rights; Catherine Toussaint; Go Sew; Tim Jamison, Waterloo/Cedar Falls Courier; and Phil Thomas, interested citizen. A. APPROVAL OF AGENDA It was moved by Mickye Johnson and seconded by Elsie Duncan 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 Monday, January 5, 2009 announcing the public hearing was available for review. It was moved by Jim Carstensen and seconded by Bernie Stroh to approve and place on file the affidavit for the notice published in the Waterloo Courier. Motion carried. Chairman Johnson indicated the process is to allocate the federal dollars provided to the community. Requests come in to the Community Development Board for those federal dollars, and unfortunately they always exceed the dollar amount provided to us by the Dept. of Housing and Urban Development. The Chairman noted this hearing provides applicants an opportunity to submit their comments to the Board. A subcommittee of the Community Development Board Minutes January 13, 2009 Page 2 meets in depth to review each application and prepare a recommendation for the full Board. An additional hearing is publicized in February prior to making a final recommendation to the City Council. The Chairman noted it is the City Council's prerogative to make the ultimate decision to adopt the Community Development Board's recommendation or make changes to it. Chairman Johnson asked participants to identify themselves at the microphone,with their name, address and their project request. He noted the subcommittee may be contacting applicants for additional information during the review process. The Chairman stated the exact allocation amounts are not known as yet for CDBG and HOME funding for FY2010. Last year's CDBG allocation was over $1.3 million and we anticipate a similar allocation this year and are hopeful that the current administration will seek to increase these CDBG amounts. He noted the current economic situation may not be sympathetic to the CDBG funding. Approximately$1.3 million in CDBG funds should be available, and we now have approximately $2.2 million in requests. The Chairman indicated approximately $552,000 in HOME Program funds were received last year and we assume that amount will remain the same. This year we have received$1.69 million in requests, so approximately half of those HOME requests will need to be pared down. The Chairman noted there are many good programs and requests; however,the dollars are not available, so we hope our elected representatives will see fit to give us more dollars to fund some of those requests. C. OPEN PUBLIC HEARING It was moved by Mickye Johnson and seconded by Jim Carstensen to open the public hearing. Motion carried. Perry Goodman,Neighborhood Services Coordinator for the City of Waterloo Neighborhood Services Department,indicated he was available if there were questions concerning his application. Catherine Toussaint, owner/operator of Go Sew, indicated her business is in St. Louis Park, Minnesota where she does custom sewing, alterations and teaches basic sewing skills. Ms. Toussaint explained her desire to instruct participants in the Waterloo area and create entrepreneurs through her program. Elsie Duncan asked where the classes would be held. Ms. Toussaint indicated she would secure a location to hold the classes, for individuals age 10 through adults and seniors, as long as the participants can read and understand a pattern. Rick Curran, Waterloo Leisure Services indicated his presence to answer any questions concerning the Sullivan Park Play Structure request for East 4th and Adams Street. Minutes January 13, 2009 Page 3 David Meeks, Director of the Human Rights Department, reviewed several points on his request for the Fair Housing Outreach Coordinator position in their department. There needs to be more education and outreach about the Fair Housing Act, and this position will spearhead this effort in the community. This request ties into the CDBG funds to eliminate the barriers and impediments towards fair housing. Mr. Meeks urged the Board to consider funding this position to provide outreach, educate and eliminate discriminatory practices. David Meeks also stated this position is not funded out of the general fund. Barb Grant, Executive Director of Operation Threshold, spoke on the Tenant Based Rental Assistance Program and Weatherization Plus Program. Ms. Grant addressed the monies received back from landlords through the TBRA program, and indicated no funds have been received, however, any funds coming back would be returned to the city. Ms. Grant reviewed the other funding sources they also receive for these programs. This is a huge need in the community and the only program available to assist with rental deposits for low-income families. We are serving people who come out of shelters or those with extreme barriers to obtain affordable housing. The flood in this community had a large impact on the available housing stock. Ideally, those people close to the top of the Section 8 waiting list, we could help them get into a housing unit with their Section 8 Housing Voucher. This program meets a very large unmet need in the community. Barb Grant indicated the Weatherization Plus program started slow this year because of the flood,but projects are going and it is a great partnership between these funds and other resources they bring into the community to help low income homeowners. LeKeisha Veasley, Operation Threshold requested support for their Foreclosure Prevention Program and reported on the known effects foreclosures have on a community. Catherine Toussaint also spoke on behalf of the Sew Elderly project she submitted and explained her services for repairing items of clothing for the elderly at various locations locally. 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 Gary Rankin and seconded byBernie i Stroh to close the public hearing. Motion carried. E. PUBLISH INITIAL SUBCOMMITTEE RECOMMENDATIONS ON FEB. 8, 2009 PRIOR TO NEXT HEARING. It was moved by Bernie Stroh and seconded by Elsie Duncan to publish the subcommittee recommendation for the use of CDBG and HOME Program funding on February 8,2009 prior to the next hearing scheduled for February 17,2009. Minutes January 13, 2009 Page 4 The Chairman stated the subcommittee would be meeting in the next few weeks to finalize that recommendation. Subcommittee members indicated a 2nd meeting has been scheduled for January 26, 2009. Motion carried unanimously. F. ADJOURN Chairman Johnson thanked everyone for attending and with no further business adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary Pr MINUTES COMMUNITY DEVELOPMENT BOARD MEETING January 13, 2009 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 13,2009. Members present: Jim Carstensen,Elsie Duncan, Mickye Johnson, Bernie Stroh and Eric Johnson. Members absent: Gary Rankin. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning&Development Director; Mark Boesen,Manager of Rehabilitation Services; Steve Schmitt; City Council Liaison;Ann Northey, Administrative Secretary; Barb Grant, Operation Threshold and other interested citizens. A. APPROVAL OF THE AGENDA. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the agenda. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON DECEMBER 16,2008. It was moved by Bernie Stroh and seconded by Mickye Johnson to approve the minutes for December 16,2008 and place them on file. Motion carried. C. OLD BUSINESS: None. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for December 2008. Rudy Jones indicated we are keeping current with our lead grant benchmarks, even though the department is down one rehabilitation staff position. The Rehabilitation staff has assumed additional workloads to make this happen. Interviews for the Rehabilitation Specialist position are scheduled for the end of the month and hopefully there will be a qualified candidate to consider for this position. Following discussion,it was moved by Elsie Duncan and seconded by Jim Carstensen to endorse the rehabilitation contracts for December 2008. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Minutes January 13, 2009 Page 2 E. DISCUSSION ITEMS. 1.Update on Emergency Repairs—Black Hawk Gaming Commission. Rudy Jones indicated we were funded$85,000 last year from the Black Hawk Gaming Commission to supplement the existing Emergency Repair Program. Rudy noted$80,000 was expended for projects and $5,000 for project delivery, noting 24 total repairs were made. Rudy gave a breakdown of the projects and noted many homeowners provided additional funds to complete their roof projects. The Chairman and Board members agreed this was good use of the dollars allocated. A new application to the Black Hawk Gaming Commission was submitted last month for review, in order to continue supplementing the Emergency Repair program. 2. Washington,D. C. Coalition Trip. D.C. will be Rudy informed the Board that the annual trip for the Cedar Valley Coalition to Washington, the end of February,first of March. We are asking for a continuation of the Brownfields Initiative dollars, for continuity of the funding. Noel Anderson stated the trip to Washington would educate legislators on our various programs, including the infrastructure needs in Waterloo and how it impacts different areas of the community. This year there will be some policy write-ups for flood recovery, continuing CDBG funding and Brownfields initiative funds added to the presentation. Chairman Johnson inquired if the dollar amounts were known for CDBG and HOME funds this year? Rudy stated with the foreclosure and disaster crisis, it would make sense to increase funding, if not maintain the current levels. However,no word have been received as yet on the exact dollar amounts. F. ADJOURN MEETING Chairman Johnson 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, Elsie Duncan, Secretary Co 'o +-,. C "- C E a) N w a) E C ,_ N a) C C ' :) O CO O a) 03 E W N I� CO as I,- e- (C') • Co 63 69 3 a.) • a) L O O O O O O ' 000 O OO EO 0 Z00 j t001`0 IIII1IIIIIIII'I 69V*69 Eft 69 ,.:,.,. E9 i'wciii UDO ��,�� F- p � �ciw N 0 U OUF- C �j _ N F- ¢ N N ILI Q N H N I- N Oo N N O o N N Z O C\I Z o N, O N O 11111 I .5 E E cc ' � E 11111111 eL cc Z (o 1111116- N NQ � Q Q mOZ (CpU a • L.C �a)GO ON ¢ ina) cx E E ` w y a w a) 3cc a) ca O a) .0 U 3 CD ..;0 I o111111111 W (n O ctq 0of `.. . mao a) s •� o O> oac� cocvaU(h 0 •,-- 0ceMtn (Ow � O Oj000 �Ze- D .� CD o Z N--• i a) H I- J6111 . (Q.11 N (7).71 (o (Q (o h 11111 a CO C co 0 3 C 0 0 (o E Cad cs (a co d • M N . 03 E C:) N L� O L NS U (o O G. w N 0 w L S °) eo Z .a Q a) a 2 N ,. - c a) .0 c O3 Zcts a _ 0 as re d co =4-0 Z C a) a) 0 , 0 c) la C? U w •;_ a co U N82 I _ .J F- J CI 0 MINUTES COMMUNITY DEVELOPMENT BOARD MEETING January 13, 2009 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 13, 2009. Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson,Bernie Stroh and Eric Johnson. Members absent: Gary Rankin. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator;Noel Anderson, Community Planning&Development Director; Mark Boesen, Manager of Rehabilitation Services; Steve Schmitt; City Council Liaison; Ann Northey, Administrative Secretary; Barb Grant, Operation Threshold and other interested citizens. A. APPROVAL OF THE AGENDA. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the agenda. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON DECEMBER 16,2008. It was moved by Bernie Stroh and seconded by Mickye Johnson to approve the minutes for December 16,2008 and place them on file. Motion carried. C. OLD BUSINESS: None. D. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for December 2008. Rudy Jones indicated we are keeping current with our lead grant benchmarks, even though the department is down one rehabilitation staff position. The Rehabilitation staff has assumed additional workloads to make this happen. Interviews for the Rehabilitation Specialist position are scheduled for the end of the month and hopefully there will be a qualified candidate to consider for this position. Following discussion, it was moved by Elsie Duncan and seconded by Jim Carstensen to endorse the rehabilitation contracts for December 2008. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Minutes January 13, 2009 Page 2 E. DISCUSSION ITEMS. 1.Update on Emergency Repairs—Black Hawk Gaming Commission. Rudy Jones indicated we were funded $85,000 last year from the Black Hawk Gaming Commission to supplement the existing Emergency Repair Program. Rudy noted$80,000 was expended for projects and $5,000 for project delivery, noting 24 total repairs were made. Rudy gave a breakdown of the projects and noted many homeowners provided additional funds to complete their roof projects. The Chairman and Board members agreed this was good use of the dollars allocated. A new application to the Black Hawk Gaming Commission was submitted last month for review, in order to continue supplementing the Emergency Repair program. 2. Washington,D. C. Coalition Trip. Rudy informed the Board that the annual trip for the Cedar Valley Coalition to Washington, D.C. will be the end of February, first of March. We are asking for a continuation of the Brownfields Initiative dollars, for continuity of the funding. Noel Anderson stated the trip to Washington would educate legislators on our various programs, including the infrastructure needs in Waterloo and how it impacts different areas of the community. This year there will be some policy write-ups for flood recovery, continuing CDBG funding and Brownfields initiative funds added to the presentation. Chairman Johnson inquired if the dollar amounts were known for CDBG and HOME funds this year? Rudy stated with the foreclosure and disaster crisis, it would make sense to increase funding, if not maintain the current levels. However,no word have been received as yet on the exact dollar amounts. F. ADJOURN MEETING Chairman Johnson 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. 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