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HomeMy WebLinkAbout2008 / 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. Respectfully submitted, Rudy D. 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U., cts E O C9 ti C7 J Q @ IL7 O. m co m Z W z H 0 0 F— --IU H C.) CC I-- -) 2 ►0— -) 2 g -) i-- / /'CI"( *ic-t7t,i //ale / MINUTES COMMUNITY DEVELOPMENT BOARD MEETING November 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, November 17, 2009. 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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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 final 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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G)� I 0 W Y ~'w �-�"- V 'Cr) � Zw m Lz ..z Ez � wz v0) CO CO 4 CO v) 0C w wcc 0 z c co 2 ct .o :? a I. m0 I;, 0 m w O 0 to dui y 0' co c O t. d w co .0 CO m 0 2 'C J O c ' . a = d E Q y .c c G m e c 0 I.s IO m a CO m E Et20 a E m a m z F-U H U In Q H I h J H C) W I- _ -.) Z 0 J fA H 62:(,(1(-vuyet.4, 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. e MINUTES COMMUNITY DEVELOPMENT BOARD MEETING November 18, 2008 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson, at 4:00 p.m., on Tuesday, November 18, 2008. Members present: Jim Carstensen, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson. Members absent: Elsie Duncan. Also present: Noel Anderson, Community Planning&Development Director;Nancy Gulick, Community Development Coordinator; Mark Boesen,Manager of Rehabilitation Services; Ann Northey, Administrative Secretary; Jim Walsh, City Attorney; and Dan Kroetz, Cardinal Capital Management. Chairman Johnson indicated the agenda was amended to add Item No. 4 under New Business, "Assisting in Foreclosures". A. APPROVAL OF THE AMENDED AGENDA. It was moved by Mickye Johnson and seconded by Bernie Stroh to approve the agenda as amended. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON SEPTEMBER 16, 2008 AND OCTOBER 21,2008. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the minutes for September 16,2008 and October 21,2008 and place them on file. Motion carried. C. PUBLIC HEARING: Section 108 Loan GuaranteeBEDI Grant Budget Amendment No. 3. Chairman Johnson indicated the public hearing was scheduled to receive input on the Section 108 Loan Guarantee/BEDI Grant Budget Amendment No. 3. It was moved by Jim Carstensen and seconded by Gary Rankin to receive and place on file affidavits for proof of publication on the Notice of Public Hearing and Notice of 30-Day Comment Period,as published in the Waterloo Courier on Wednesday,November 12,2008. Motion carried. It was moved by Mickye Johnson and seconded by Bernie Stroh to open the public hearing. Motion carried. Minutes November 18, 2008 Page 2 The Chairman asked for a staff explanation of the budget amendment. Nancy Gulick indicated the BEDI Grant was expiring toward the end of September. Communications with HUD representatives in Washington D.C. encouraged us to draw down the full $2 million of the BEDI grant funds. To accomplish that we needed to develop a new activity, which they suggested should be Debt Service. This amendment is necessary because we will go over$100,000 on a change of activity. We will put$240,000 into Debt Service and the rest of the amendment put$0 funding into the Rath Administration Building. Since the building is being redeveloped, it will not be demolished. Then make a change on the Lafayette Park and Rehabilitation activities to what was actually spent on those projects. Chairman Johnson asked for further background explanations on the Section 108 Loan Guarantee and BEDI Grant activity. Nancy stated we applied for and we were awarded the Section 108 Loan Guarantee,which included the BEDI Grant, for every $4.11 of Section 108 funds spent, we received$1.00 of BEDI grant funds. All of the activities must qualify under the CDBG guidelines. Chairman Johnson asked how the Section 108 loans were guaranteed. Nancy Gulick indicated the city guaranteed the solid waste funds or TIF monies. Hopefully they will be repaid with loan money from different companies by loaning out the money. Worst scenario is they would be repaid with CDBG funds. Chairman Johnson asked for other questions before the hearing was opened. Bernie Stroh asked about the Debt Service Reserve. Nancy Gulick indicated this was suggested by HUD,that whoever is loaned the 108 funds as a private business,if they were unable to make their payments,then money would be available to repay the Section 108. The Section 108 funds must be used up by 2009. Chairman Johnson stated, if someone is not paying their loan, are we borrowing money to pay their loan? Nancy Gulick stated we are using BEDI grant funds to pay their loan. HUD explained that the Debt Service would be available as backup for 20 years. If the funds are not utilized they will be returned. Nancy indicated a business would actually borrow the Section 108 Loan funds,then if they don't make their loan payment and we need to pay back our Section 108 allocation to the Federal Government at the time it is due, we can use the debt service to make their payment. Nancy stated no loans have been made as yet. The next step is to approve the amendment,then request a release of funds after the comment period. HUD Omaha also has their comment period, then funds should be available mid-January 2009. Minutes November 18, 2008 Page 3 Jim Carstensen inquired if a business in Logan Plaza could utilize these funds. Nancy responded the funds are only available to businesses in the Rath Brownfields area. The City Administration is gearing the program towards established businesses. Chairman Johnson asked for public comment. No comments were received. It was moved by Bernie Stroh and seconded by Jim Carstensen to close the public hearing. Motion carried. It was moved by Jim Carstensen and seconded by Gary Rankin to submit Amendment No.3 to the Section 108 Loan Guarantee/BEDI Grant Budget to the City Council for public hearing on December 1,2008. On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. D. OLD BUSINESS: 1. Update on State-Jumpstart Housing Assistance Program. Nancy Gulick indicated 202 applications were received for the State Jumpstart Housing Assistance Program. Nine applications were ineligible for the program. All funds allocated to us for Rehabilitation, Down Payment Assistance and Interim Mortgage Assistance were distributed,totaling$649,790.00. Thirty-two applicants received funding. The average rehabilitation costs for 22 households was $18,850.00. Average down payment assistance to 7 individuals was $30,122.00 and Interim Mortgage we allocated$12,000 to two individuals, so they received the total amount they were eligible for. Four others made their mortgage payments during the summer so they were eligible for reimbursement. Approximately $35,000 was available for administrative costs. Nancy stated a few payments are left to hand out and we are recording the mortgages as completed,then the State Jumpstart Program will be completed. Nancy noted we have started accepting applications now for the FEDERAL JUMPSTART Program. She noted approximately $1.2 million in federal funds are coming for the second round. Nancy responded to other questions concerning the down payment and interim mortgage requests. She noted the State Jumpstart funds were dispersed within one month,which was what the Governor had requested. Nancy noted the Federal Jumpstart program will not move that quickly,due to requirements attached to those funds. 2. Tax Credit Project—Cardinal Capital Management,Inc. Nancy Gulick indicated Dan Kroetz,Acquisitions Manager for Cardinal Capital Management was present to answer any questions concerning their application. She noted the Board had requested an update on the outstanding HOME activities. Nancy indicated the City Council recommended support to all the entities that applied,and did not prioritize any of the tax credit projects. There is approximately$58,000 Minutes November 18, 2008 Page 4 available now from last year. Dan Kroetz stated he was available to answer any questions from the Board. Chairman Johnson indicated our funding cycle is underway, and once your application is reviewed, a recommendation will be made to the City Council for the ultimate decision on which project gets funded. Their will be three public hearings and the first one will be held on January 13, 2009 to receive additional input. The Chairman noted the Subcommittee will be reviewing applications after that date and may have specific questions concerning these applications. 3. Update on Chamberlain Site. Noel Anderson distributed a map and explained the various stages of the Chamberlain project. He reviewed concerns with environmental contamination at the site. Testing is underway to find the source of the problem and the entire area may become green space,possibly utilizing some of the areas along the golf course. Noel noted Chamberlain will be covering a portion of the environmental costs with EPA. Most recent testing from EPA involved vapor testing in basements because of the types of chemicals they are finding at the site. There is concern these chemical vapors may be penetrating the ground and may cause problems. Board members asked additional questions about redevelopment of the site, and inquired about more hearings. 4. Update from Rehabilitation Staff on roof repairs. Mark Boesen reviewed the roof repair program, stating 71 requests came in during the last year. 21 cases did not get to the contract stage because they were determined infeasible due to cost and the owners could not raise the additional funds. Ten cases were over-income, over-asset or had delinquent taxes. 28 projects were completed and 8 were below the current threshold of$4,000 and 20 properties went over the $4,000 and homeowners provided the additional funds,ranging from $32 up to $5,200 that the owners provided. Basic average cost of additional funds was $1,533 per roof. Chairman Johnson indicated about two-thirds of the roof repair jobs are being cost-shared by the homeowner, and one third of the projects are being totally funded. 5. HUD Monitoring responses. Nancy indicated this was our response to the HUD findings. HUD will send a final response after their review is complete. She noted HUD is currently reviewing our annual report at this time. Further information will be provided at a later date. E. NEW BUSINESS: 1. Endorse Rehabilitation Contracts for October 2008. Bernie Stroh inquired why we are not getting more participation from the homeowners on these projects. Nancy inquired if Bernie was referencing the loan program? Bernie stated he was. Minutes November 18, 2008 Page 5 Nancy stated Rudy was working with the financial institutions on this. Chairman Johnson indicated, we will ask to have this item placed on the agenda for next month. Questions also arose concerning the lead grant and CDBG match on projects that do not exceed the $8,000 limit. Following discussion, it was moved Gary Rankin and seconded by Mickye Johnson to endorse the rehabilitation contractor for October 2008. On roll call: Jim Carstensen,Mickye Johnson,Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Select Board Subcommittee for FY2010 CDBG & HOME Funding Cycle. Chairman Johnson indicated the public notification process has begun for FY2010 funding cycle. Applications are due December 31,2008 and it is time to select the subcommittee members to review those applications. Gary Rankin, Bernie Stroh, and Elsie Duncan were selected to serve on the subcommittee. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the three-member subcommittee as noted. Motion carried. Chairman Johnson asked for an update on a replacement Board member. Nancy Gulick indicated Rudy has submitted a name to the Mayor's office to fill the position vacated by Larry Oltrogge. Chairman Johnson inquired as to when the vacancy occurred and it was noted May 2007. Chairman Johnson indicated he would contact the Mayor concerning a replacement, in hopes to have them on board during the start of this funding cycle. 3. Set Board Meeting Dates for 2009. Chairman Johnson indicated the third Tuesday of the month is again being proposed for the Board meeting dates in 2009, except for the month of January. It was moved by Mickye Johnson and seconded by Gary Rankin to approve and set the Board meeting dates for 2009 as the third Tuesday of each month, except for January. Motion carried. 4. Assisting in Foreclosures. Chairman Johnson indicated there is a current policy in place that if a homeowner is not current on their mortgage,they are not eligible for CDBG funding. The thought behind this is if the home would be lost, why improve it for another financial entity. More and more folks are falling behind on their mortgages, so does it make sense to tweak the policy if they are working with a foreclosure prevention program? Mark Boesen indicated a few emergency cases are behind one or two months and they are working with a foreclosure specialist, and working on setting up new terms and rates. Right now,they may only be a month or two behind,but our policy does not allow any leeway for delinquency. Board members discussed this in great length, but no changes were made to the policy. Minutes November 18, 2008 Page 6 F. DISCUSSION ITEMS: Nancy Gulick distributed additional information from the Common Bond tax credit project,which was provided for the Board to review. G. Adjourn Meeting. With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Nancy Gulick, Secretary Pro-Tem . 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Members present: Jim Carstensen, Elsie Duncan, Bernie Stroh and Eric Johnson. Members absent: Mickye Johnson and Gary Rankin. Also present: Rudy Jones, Community Development Director;Noel Anderson, Community Planning& Development Director;Nancy Gulick, Community Development Coordinator; Mark Boesen, Manager of Rehabilitation Services; Quentin Hart, Council Liaison; Ann Northey, Administrative Secretary; Tim Jamison,Waterloo/Cedar Falls Courier; Randy Roth; Endeavor Corporation; and Dan Kroetz, Cardinal Capital Management. A. APPROVAL OF THE AGENDA. It was moved by Elsie Duncan and seconded by Jim Carstensen to approve the agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON SEPTEMBER 16, 2008. Rudy Jones indicated the minutes for the September meeting are not available, due to extensive disaster assistance workload with the State Jumpstart Housing Assistance Program. September minutes will be available for approval at the November meeting. Action tabled. C. OLD BUSINESS: 1. Update on Jumpstart Housing Assistance Program. Rudy Jones reported the State of Iowa has set aside a pool of funds for disaster recovery assistance due to the tornados and flooding of 2008 throughout the state. The State has allocated $683,000 to the City of Waterloo,which includes a 5%administration fee. Since the allocation of those funds, staff has spent almost 110%of our time working the applications through the process. Rudy explained the completed applications that have been reviewed to date. We have processed approximately 23 for payment totaling more than$350,000. Total applications received to date are over 200. By our next meeting, we will hopefully have all these funds dispersed and expended. Board members questioned costs for Down Payment Assistance, and Rudy indicated the awards averaged over$30,000 each. The State's maximum allotment was up to $50,000 per household. Some applicants for down payment assistance also utilized the Interim Mortgage Assistance for their disaster affected Minutes October 21, 2008 Page 2 home. Most of the applications that came in are for Rehabilitation Assistance needs. Over the past month, and particularly the past two weeks,Ann and Nancy, have been putting in the extra hours to make this happen. There were a number of days where overtime has been required because of the volume of people coming in,phone calls and the amount of time spent with each application to review guidelines, and explain the process. Home owners who utilized the on-line application process needed to be contacted personally to submit their required paperwork. Many contacts had to be made after hours, due to applicant work schedules, etc. Chairman Johnson inquired if the JUMPSTART Program was limited to those citizens who just received damages from the tornados and flooding, or was it eligible to anyone? Rudy Jones responded that the home owner must be registered with FEMA and they must have received monetary assistance from FEMA to be eligible. Chairman Johnson asked if these awards are grants or loans. Rudy responded these are 10-year forgivable loans, so a lien will be filed against the property. Nancy Gulick responded that the people on the flood buy-out list will be required to pay back their loans, following the sale of their property. Rudy stated once the State Jumpstart funds are fully expended, we will be ready to move into the CDBG Supplemental Funding, also known as the FEDERAL JUMPSTART PROGRAM. Federal guidelines will be more extensive than those of the State and staff is working through the details of this program. Chairman Johnson indicated no action is needed at this time to expend dollars, and this will be an agenda item under Old Business at the November meeting. Chairman Johnson indicated we will look forward to a more detailed report. Rudy Jones reiterated that State Jumpstart funds should be put to rest and we will roll over any pending applications into the Federal Jumpstart program. Approximately$1.2 million is expected from the CDBG Supplemental Program. D. NEW BUSINESS 1. Tax Credit Projects Chairman Johnson indicated there are three tax credit projects looking for letters of support from the Board with funding from the FY2010 HOME Program allocation. These funds cannot be allocated without going through the Funding Cycle Public Hearing Review Process. Rudy gave an overview of each tax credit project. Because of the disasters experienced this year,the state has designated our county with additional tax credits. This gives us the latitude to prioritize the tax credit projects this year. We may be able to fund two or three projects, and we can submit our recommendations to them after the application deadline, which is October 31, 2008. The City Council is also reviewing some of these projects. Minutes October 21, 2008 Page 3 Chairman Johnson indicated the recommendation to IFA will come from the City Council. Rudy responded that the Council will consider any recommendations from this Board on funding the tax credit projects. The Common Bonds project requested HOME dollars last year. Recommendations from the Board should be submitted on those projects most feasible. Chairman Johnson stated the tax credit projects will be reviewed, and the City Council will make the final recommendation on which projects are selected. a. Common Bond Communities This project is off Newell Street, across from the old Zeidler's property,north of the Cunningham School. They are seeking $58,694.00 and will apply through our regular funding cycle. Budget details of the total project were not available. Quenton Hart inquired about an award already made to Common Bonds. Nancy Gulick responded that$15,725 was allocated to a Tax Credit Project,but nothing was designated specifically. Chairman Johnson inquired if anyone claimed that allocation this year. Nancy responded,no. Chairman Johnson indicated these funds could be reprogrammed should someone be eligible. Jim Carstensen asked if this was in relationship with the Wheaton Franciscan project, stating his experience in working with Catholic nuns is that they are very thorough and work well with little administrative costs. Chairman Johnson indicated this project came before Planning and Zoning, and appears to be a good project, and he is in favor of supporting it. Rudy stated they are looking for a letter of support, and Chairman Johnson indicated that we as a Board should prioritize those projects and only send out one letter of support to the Council on the projects we would like them to move forward on. b. Cardinal Capital Management,Inc. Dan Kroetz,Acquisitions Manager of Cardinal Capital Management, Inc. was present to answer specific questions concerning the Liberty Manor Senior Apartments project, ie: number of units (75), apartment size (all one bedroom), developer fees (17%) and project location(1119 Kent Circle). c. The Fortus Group Location of this project is behind the Super Target Store in Waterloo and the proposed development is for a 64 unit affordable housing rental community targeted for senior's, age fifty-five or older. No budget was provided on this project. Minutes • October 21, 2008 Page 4 Rudy Jones indicated no specific dollar amount has been requested,but they will submit a complete application once our formal funding cycle begins. Chairman Johnson stated any projects we support should leverage additional funds for the city to the greatest extent. The City Council will ultimately make the final decision,but to the extent that we make a greater return on our investment,with greater investment in the project and greater investment from the developers,those applications would be most favorable. The Chairman noted, he is probably more favorable toward the new construction projects, in lieu of the rehabilitation ones. Since our HOME funds are limited,the Council will allocate them accordingly. Rudy Jones indicated that the next agenda item concerns the developer, Randy Roth,with Endeavor Corporation, who has been meeting with staff to help us package and see what is feasible in terms of our housing projects. We have HOME dollars that we have not been able to get committed on projects with the possibility of having two or three tax credit projects funded by the state. We could use some help in determining the best route to maximize these dollars. Rudy noted,typically the problem has been waiting to see which projects the state will fund before we can determine which project gets funded, so it's a backwards type of process in determining who gets funded. Chairman Johnson inquired if there were other projects beside these three tax credit projects? Rudy stated these are the only ones who have indicated they would be requesting HOME funds. There are other tax credit projects that have not indicated their interest to us. Chairman Johnson asked how they would get their local match? Noel Anderson indicated two other projects have expressed interest and they are eligible for the enterprise zone and CURA incentives. Chairman Johnson inquired if a work session is required with the City Council for more detailed input? Is the Council studying these requests and making a recommendation to IFA? Noel Anderson indicated they are asking for a letter of support and the City Council will have a work session to discuss prioritization. Chairman Johnson indicated it makes sense to have representation from this Board at the work session, and whether it is staff or Board members will be at the council's discretion. Chairman Johnson indicated we cannot prioritize these projects without more detailed budget breakdowns and information. We can pass this recommendation on to the City Council. Further discussion occurred on the process and past procedures that have changed. The IFA deadline is October 31, 2008 for the letters of support. Chairman Johnson asked if the Board was ready to make a favorable decision on prioritizing these projects? It was the general consensus that with the lack of detailed budgets, a joint work session should be conducted to work through this process. Chairman Johnson asked Rudy Jones to contact the applicants and make sure they know what information is needed from them, especially budget Minutes October 21, 2008 Page 5 requirements. It may be beneficial to have a copy of last year's HOME funding dollars to see what we have to allocate this year. There may be carry-over dollars to expend as well. Following discussion, it was moved by Jim Carstensen and seconded by Bernie Stroh to make this recommendation to the City Council that we are available to meet in joint session, if they so choose, to discuss and prioritize the tax credit projects. Motion carried. 2. Housing Development Presentation by Randy Roth Rudy Jones introduced Randy Roth, President of Endeavor Corporation, who is currently involved with the city, assisting with the Highway 63 developments. Mr. Roth has worked extensively on housing initiatives and we would like to utilize his expertise on our housing programs. Randy Roth indicated his firm was located in Milwaukee, Wisconsin. Mr. Roth noted his firm is a retail and housing developer and indicated he assisted in the development of the HyVee Store project on Logan Avenue. Mr. Roth stated he is currently working with the Planning staff and the Highway 63 Community Development Corp. in their efforts to redevelop Logan Plaza. Mr. Roth stated he has worked with about 20 different municipalities, national and public entities, focusing on revitalizing communities, ...both on the retail perspective and a housing perspective. Mr. Roth indicated in recent discussions with Rudy and Noel on the current housing status in Waterloo, we can assist in creating a blueprint for progress in affordable housing, infill construction and utilize the resources available to the city in completing these projects. We propose a development plan that specifically provides proformas on projects that identify sites and works with property owners to get your projects done. The Action Plan was prepared and presented. This is not a traditional market study approach. Rudy Jones noted that back in March we had started a housing study,then we had the natural disasters and floods,we have gotten off track because of the necessity of taking care of immediate concerns with flood activities. Over the past 2-4 weeks our office has been working full time and over on nothing but the Jumpstart flood program. We have many projects on the back burner that we cannot work on for various reasons, and would like to enlist the assistance of Randy Roth and his company to get these housing projects off the ground. Rudy mentioned he visited some sites a number of years ago that Randy Roth sponsored in Wisconsin, and his expertise will be welcomed in this community to help with our housing initiatives. Chairman Johnson indicated he was unclear as to the end product for the $30,500.00 projected fee. Noel Anderson indicated the Hwy. 63 project will definitely play a big part in this project as we are looking for areas to develop new housing. As part of the Hwy. 63 development we will be buying up approximately 26 homes. Part of the Walgreens and Allen Hospital expansion projects,moved about 10 homes,unfortunately most of them moved outside the City of Waterloo to other communities. Of the 26 homes we will be buying, if 15 could be relocated within the city,we could utilize them to find new housing sites. Minutes October 21, 2008 Page 6 Rudy stated this action plan will help us come up with a strategy to move in other areas as well. We started some development in the 900-1000 block of Lafayette Street that has been delayed,with the loss of rehabilitation staff and the flood activities,we simply cannot keep up with all these activities and we are extremely busy. Rudy stated this will be an excellent investment for the city and we should realize a tremendous return on the end product. Randy Roth stated they will be very project specific in efforts to deliver the development plan. He noted there are opportunities in the city that can be converted with the resources you have available, you just need someone to interpret and provide help in getting the ball rolling. Mr. Roth noted their plan is similar to an action plan that calls out...here is what will work on this site,what it will cost and here is the project proforma and you will actually be on the inside of the development deals, with a better understanding of how these deals are structured. In the end,the outcome will be development projects that actually get started. Rudy explained to the Board the importance of implementing this request. The staff is already burdened with administering a variety of programs, and now with the flood relief and buyouts forthcoming, we need some breathing room for our housing initiatives. This proposal is a means to get these housing projects up and running. Nancy Gulick questioned the status of the previous $70,000 housing study that was approved last year. Rudy indicated that study never materialized. Quentin Hart indicated he could not speak for the Mayor and Council, but it would be good to get some ideas on paper to move ahead that would benefit his own ward. It will be beneficial to get some direction on land use, and other ideas for a vision in housing development in Waterloo, especially in specific areas of the city. Following considerable discussion, Board members voiced their commitment to implement this action plan,based on the report from the Community Development Director. Chairman Johnson indicated his concerns with spending city funds in this manner, and hopeful when we look back that we can say this is money well spent. We won't know until this project is completed. Rudy explained that a contract will be drawn up and we will partner with the City to determine what funding source will cover these costs. Nancy Gulick inquired who will pay for this plan. Rudy explained it may be a combination of Local Housing Assistance Plan funds, and Noel will also combine this with GO Bond funds. Bernie Stroh asked that the Board receive continuous progress reports over the six month period of the contract. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the initial contract with Randy Roth of Endeavour Corporation to provide a Housing Development Action Plan for the Community Development Board in the amount of$30,500.00. Minutes October 21, 2008 Page 7 On roll call: Jim Carstensen,Elsie Duncan,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Endorse Rehabilitation Contracts for September 2008. Rudy Jones indicated that Chris Leach, resigned his position as Rehabilitation Specialist several weeks ago. We have begun the hiring process to fill that position, but this has put an immediate burden on the remaining rehab staff,picking up extra caseloads and responsibilities in order to maintain our benchmarks with the lead grant and keep the rehab program on track. There were no questions or comments regarding the September 2008 report(copy attached). It was moved by Bernie Stroh and seconded by Elsie Duncan to endorse the September 2008 Rehabilitation Contracts. On roll call: Jim Carstensen,Elsie Duncan,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 4. Set date of November 18,2008 for public hearing on the Section 108/BEDI Amendment. Rudy stated,he had hoped Noel could explain the amendment. Bernie Stroh questioned if the entire amount was going to Crystal Ice. Rudy stated they will be making formal application for that, and it is not set in stone. Toward the end of the BEDI project time period there was still dialogue on utilizing the Section 108 funds. Staff from the Planning and Finance office overseeing the loan component thought they would be able to utilize the Section 108 dollars for loans, being that Crystal Ice experienced difficulties during the flood. Bernie Stroh stated there were also other entities that experienced damages during the flood. Why were they not considered. Rudy stated he could not answer that question. Bernie Stroh asked who made the decision. Rudy responded the decision came from Noel in conjunction with the Mayor's office. Chairman Johnson asked for a summary of the amendment. Rudy stated it allows the use of some of the remaining BEDI grant funds to be applied to a debt reserve and thus give Crystal Ice an opportunity to cover their losses if they are unable to pay. Bernie Stroh asked how this would affect the intended plans for them to develop the Rath site? Rudy said they are proposing to move ahead with it,but no formal declaration has been made to that effect. Minutes October 21, 2008 Page 8 Chairman Johnson indicated today we are simply to set the hearing date and noted his bewilderment as to actually what is going on and what will be discussed at that hearing. There is no problem setting the hearing,but I have a problem voting for something that is not understood. Bernie is voicing this same concern. If the City is advocating this amendment, those advocates need to be present to explain what they are asking this Board to approve. The Chairman noted,he would need more information. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the hearing date of November 18,2008, for the Amendment to the Section 108/BEDI Grant application budget, along with a request for more information on this amendment. Motion carried. Bernie Stroh stated for the record,this information is requested prior to the hearing. 5. Approve solicitation for consultant to provide the Five-Year Consolidated Action Plan. Rudy explained that staff is asking to solicit proposals for completion of the five-year consolidated plan. Approximately cost can range from$20,000 to $40,000, which would be a planning activity. Locally the University of Northern Iowa can provide this type of document. The last one was prepared by INRCOG, but it is my understanding their workload will not allow for completion of this in our time-frame. We may need to send out statewide or regional requests for proposals. Following discussion, it was moved by Bernie Stroh and seconded by Jim Carstensen to authorize solicitation of a consultant to provide the Five-Year Consolidated Action Plan. Motion carried. G. DISCUSSION ITEMS: 1. Waive house insurance and current taxes on CDBG Supplemental funding. Nancy Gulick noted that the state was able to get some federal waivers on the Jumpstart funding,to waive income limits and other issues. A rule...specific to Waterloo on our housing programs is that the homeowner must have household insurance and their property taxes must be current to qualify for rehabilitation assistance. With the CDBG Supplemental flood monies coming into the city, we thought the Board may be interested in waiving this requirement, in case a flood victim is determined ineligible because of this fact. Chairman Johnson stated that those folks experiencing the most difficulties with the flood and financial distress may not be current on their mortgage,pay their taxes or insurance. Questions came up about the mortgage payments and what is eligible. Nancy Gulick noted the State Jumpstart funds have three components: Rehabilitation Assistance, Down Payment Assistance and Interim Mortgage Assistance. Nancy stated the Interim Mortgage Assistance through Jumpstart is only for those folks on the buy-out list and if they are purchasing another house. This assistance is to help them keep up the payments on their disaster home until it is bought out. Nancy reported that the CDBG Supplemental funding is FEDERAL Jumpstart funds and we do not have all the guidelines. They look similar to the STATE Jumpstart program,but have more rules attached. Rudy Jones indicated this whole Jumpstart program has been an emotionally draining process, beyond just dealing with the regulatory aspects and paperwork. Minutes October 21, 2008 Page 9 Chairman Johnson asked for a staff recommendation. Do you want us to waive these conditions or is this just for discussion. Have applicants been turned away because of these facts? Nancy responded, we have not turned anyone away as yet,because we have not started the FEDERAL Jumpstart application process. The STATE Jumpstart program was more flexible. FEDERAL JUMPSTART must follow the normal CDBG guidelines, and this is a stipulation, set by our specific program. We are just asking for Board input. Bernie Stroh stated it doesn't make much sense to put money into a rehab if the owner doesn't have insurance. Mark Boesen stated,that since the disasters have occurred, many owners have utilized their FEMA awards to just simply survive and have not paid their mortgages or taxes, so many may be behind in these payments. Our normal Rehabilitation Program requires mortgages, taxes, etc. to be current with insurance on the property. Flood circumstances may need us to provide special considerations for these issues. Rudy Jones stated,would it be acceptable if the homeowners were current in their payments at the time of the disaster. Chairman Johnson indicated,perhaps it would be best to review this issue on a case-by-case basis, if this becomes a concern with the CDBG Supplemental FEDERAL Jumpstart Program. Board members agreed. No formal action was taken. 2. FY2010 Application Process Rudy indicated the complete schedule will be presented at the November meeting. Chairman Johnson asked for complete City Council participation, either with a council representative or with a Council work session, so that we are all working together to in the same direction. Nancy Gulick circulated information on the Homeless Campout activities and indicated she would accept any donations. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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(9 m m E — = m — 4) i E Q 0 co a) p L t O t9 .0 O 0 z N .0 O O d aa) I W zCaI � HWI- 0 0E- 1- 0 00 I— = F- J a IO- • U LC L,`(1,/,girds e /-.J- j_ MINUTES COMMUNITY DEVELOPMENT BOARD MEETING September 16, 2008 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 acting Chairman Mickye Johnson, at 4:00 p.m., on Tuesday, September 16, 2008. Members present: Jim Carstensen, Elsie Duncan,Mickye Johnson, Gary Rankin and Bernie Stroh. Members absent: Eric Johnson. Also present: Rudy Jones, Community Development Director; Mark Boesen, Manager of Rehabilitation Services; Quentin Hart, Council Liaison; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. Acting Chairman Mickye Johnson indicated Board members were asked to bring their August Board packets for review at this meeting, due to "no quorum"for the August meeting. It was moved by Jim Carstensen and seconded by Elsie Duncan to approve the agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JULY 15,2008. Jim Carstensen indicated one correction to the July minutes, as he was not present for the meeting. It was moved by Elsie Duncan and seconded by Gary Rankin to approve the minutes of the regular meeting on July 15,2008 as amended. Motion carried. C. PUBLIC HEARING: Review of FY2008 Consolidated Annual Performance and Evaluation Report(CAPER). It was moved by Elsie Duncan and seconded by Jim Carstensen 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 August 31,2008. Motion carried. It was moved by Gary Rankin and seconded by Jim Carstensen to open the public hearing. Motion carried. The acting Chairman noted there were no citizens present to provide input. Rudy Jones stated the CAPER provides data on the projects completed the past fiscal year. More focus has been on housing related activities, so there seems to be little citizen input, due to the fact we are not funding as many non- profit organizations. City staff is handling the bulk of the housing programs we are conducting. Rudy thanked staff for compiling the information and especially Nancy Gulick for processing this report. Minutes September 16, 2008 Page 2 Elsie Duncan inquired if programs were being cut. Rudy responded that with the declining dollars, many nonprofits the Board used to fund, are no longer receiving assistance through the block grant program. Mickye Johnson noted the report stated how the disasters of 2008 had affected programming and inquired if additional funds would be redistributed to areas where there is greatest need. Rudy Jones indicated we would still receive our primary entitlement allocation on schedule,but there is also some federal supplemental dollars coming to Waterloo for disaster assistance. We are currently engaged in dialogue with the State on those funds, and the State will front-end some of the dollars to aid disaster victims. Our department will be handling the bulk of the monies channeled through the state. Rudy also noted additional federal dollars will be coming through a housing initiative bill(3221) coming from the President and Congress to resuscitate some of the housing markets. This will be above and beyond our entitlement and flood dollars. Jim Carstensen inquired about leveraging resources and questioned the Northeast Iowa Food Bank operations, as he had reports of discrimination issues that he wanted to bring to light. Rudy Jones indicated we did not provide direct dollars to this program,but they are involved through our programs because of the large number of clientele they receive. All agencies that we do fund,must abide by the same regulations we do. Jim Carstensen also noted that Jesse Cosby Center has been going through some hard times, and hopefully they will be sustainable in their operations. Their financial situation has been tenuous and they are trying to work their way through this difficulty. Rudy noted, staff has let the Board,the Council and community know that what we look for is how do they provide for on-going services, above and beyond what the block grant program provides for them. Jim Carstensen also wanted to express kudos to the Salvation Army for their service to the community. It was moved by Gary Rankin and seconded by Jim Carstensen to close the public hearing. Motion carried. It was moved by Gary Rankin and seconded by Bernie Stroh to submit the Consolidated Annual Performance and Evaluation Report(CAPER)to the City Council and to HUD. On roll call: Jim Carstensen, Elsie Duncan, Gary Rankin,Bernie Stroh and Mickye Johnson voted Aye. Nays: None. The acting Chairman declared the motion carried. D. PUBLIC HEARING: EDI Special Purpose Grants: B-08-SP-IA-0568 (Neighborhood Revitalization) and B-08-SP-IA-0569 (Chamberlain Demolition Project). Minutes September 16, 2008 Page 3 It was moved by Bernie Stroh and seconded by Jim Carstensen 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 August 31,2008. Motion carried. It was moved by Bernie Stroh and seconded by Elsie Duncan to open the public hearing. Motion carried. Rudy Jones noted the funds allocated for the Chamberlain site would help demolish buildings that remain at the site. Some work has been done and these additional dollars will help complete this project. Rudy noted the Neighborhood Revitalization is for additional work in the Rath area to assist homeowners in the area with projects to stabilize their homes,with emergency repairs and rehabilitation. The EDI funds allow us to perform work on properties without bringing the whole dwelling up to City Code and addresses the energy efficiency needs of the home. Acting Chairman Johnson inquired if all the buildings at Chamberlains will now be demolished with these funds. Rudy Jones stated a couple buildings will remain for redevelopment use, and details of this will come from the Planning Department. Board members requested an update from the Planning staff on the use of this property and the projected plans for the salvaged buildings. No additional comments were received from the public. It was moved by Jim Carstensen and seconded by Gary Rankin to close the public hearing. Motion carried. It was moved by Elsie Duncan and seconded by Bernie Stroh to submit the EDI Special Purpose Grants B-08-SP-IA-0568 (Neighborhood Revitalization) in the amount of$343,000 and B-08-SP-IA- 0569 (Chamberlain Demolition Project) in the amount of$343,000 to the City Council for approval. On roll call: Jim Carstensen,Elsie Duncan, Gary Rankin,Bernie Stroh and Mickye Johnson voted Aye. Nays: None. The acting Chairman declared the motion carried. E. OLD BUSINESS: 1. Emergency Repair Loan Program—Lending Institution Update. Rudy Jones stated staff and the Rehabilitation Subcommittee members have been meeting over the past few months to discuss responsibility for facilitating a loan program. We spoke with several financial institutions to provide these services. Rudy indicated several entities might be able to provide staff to facilitate the review of applications periodically. They were receptive to assisting in a loan program. Further meetings will be scheduled,however, since the flood we have been sidetracked on many of our activities. Rudy explained that many unscheduled meetings for disaster recovery have been taking priority over some of our regular projects. Minutes September 16, 2008 Page 4 The Board discussed the Wall Street crisis and how this will affect the housing/loan markets. Rudy shared additional facts on foreclosures, savings and loan issues and adding in the natural disasters, stating our department is working continuously to keep ahead of these housing issues. The upside is we will be receiving State and Federal dollars to assist those in need. 2. Contract with INRCOG for Acquisition/Relocation Activities. Rudy Jones indicated communications have taken place with INRCOG staff to assist us with the acquisition/relocation activities for some structures in the Rath area. HOME funds were set aside for this purpose several years ago in the 900 block of Lafayette. This will be a continuation of that process. INRCOG would only handle the relocation activities. Rudy indicated we may also be involved in the flood buyouts as well. F. NEW BUSINESS 1. Endorse Rehabilitation Contracts for July and August 2008. Board members reviewed the report. There were no questions or comments regarding the July and August 2008 reports (copies attached). It was moved by Elsie Duncan and seconded by Gary Rankin to endorse the July and August 2008 Rehabilitation Contracts. On roll call: Jim Carstensen,Gary Rankin,Elsie Duncan,Bernie Stroh and Mickye Johnson voted Aye. Nays: None. The acting Chairman declared the motion carried. 2. Housing Counseling Recertification. Rudy Jones indicated the Waterloo Housing Partnership program was monitored several months ago,with some findings reported. Since that time we have resolved these findings and submitted the necessary responses to HUD. This is to notify you that we have been reinstated with our certification. Bernie Stroh inquired if changes were made so these issues did not occur again. Rudy Jones confirmed that these issues have been cleared and changes made in processing in order to comply with HUD requirements. Donna Lesyshen indicated she had been doing the required documentation, but had not listed it as counseling as required by the HUD HOME reporting system. Corrections have now been made to the on line reporting process to meet HUD requirements. Acting Chairman Johnson questioned whether there was an operational/procedural manual to follow, so these issues do not reoccur, so we meet all qualifications. Donna Lesyshen confirmed there is a Housing Counseling HUD Manual that is utilized for standard operating procedures and reporting. We were reporting that group counseling was being conducted, but they wanted individual counseling as well. Minutes September 16, 2008 Page 5 Rudy explained that with our HUD reporting, we may actually fulfill an activity,but if we don't enter the information into the HUD system correctly,that creates a problem. Donna Lesyshen reported that training on the Housing Counseling Reporting System leaves much to be desired, and ongoing training is offered on line. 3. Report on Price Increase of Roofing Materials. Mark Boesen indicated roofing materials have taken a dramatic increase over the past few months. He stated the average cost of roof repair in 2007 was $4,600 and when he put the report together the present average costs are up to $5,400. The last five roof bids that have come in ranged from $7,000 to $9,000 per roof. This is putting an undue burden on low income homeowners with the $4,000 cap on emergency roofs. With our current program homeowners are required to cover any costs over $4,000. Rudy explained we would like to try and ride out the increases, especially since we have just started a new fiscal year,we don't want to give the appearance of being fiscally irresponsible, we want to see if it is going to level off or scale back, or look like its going to keep ratcheting up for whatever reason. Acting Chairman Johnson asked how many people are not getting their roofs done because of these cost factors. He asked for a report next month,that would give an indication if we don't act soon what will be the outcome, or where we need to go with the costs. Mark Boesen indicated some people have been able to come up with$1,000 or$1,500 to replace their roof, but now with the higher costs, it is becoming a financial burden for some households. Mark stated this was for Board information only and the fact we may need to address this issue in the near future. 4. HUD Monitoring Report. Board members asked Rudy to explain the differences between a finding, concern and an observation. Rudy Jones explained a fording is a statutory/regulatory no-no, something that you have to correct. A concern is like a yellow light, HUD suggests you tweak to avoid a finding, and an observation is something that looks good, something that is above and beyond what is required in your program or something that is a necessary minor tweak in your program. Rudy stated we had 3 findings and with minor tweaks we can be brought into compliance. We will be well able to accommodate these corrections within our programs. Mickye Johnson indicated it appears the first findings relate to documentation. He questioned if there was an operating procedure manual so everyone knows what needs to be done. Rudy Jones indicated there are applicable requirements within the Housing Monitoring Report, as well as the HUD Monitoring report, so issues will work themselves out with both reports. Mickye Johnson asked for clarification on the HOME rental limits finding No. 3. Minutes September 16, 2008 Page 6 Rudy explained that when HOME funds are distributed to a developer,they agree to hold their rents at a certain level. Several of the places, it was apparent that the rents exceeded what was allowed, and we must make sure that is corrected so the rents remain affordable. Rudy stated a full response will be completed for HUD in the time allocated and we will report the same for our Board at the next meeting. G. DISCUSSION ITEMS: 1. Review Emergency Repair Program—One-Year Warranty on Roofs. Mark Boesen stated back in 1996, our policy on roof repairs was changed from a one-year warranty to a 10-year warranty on shingled roofs. All other warranties on our programs are at one year. Mark suggested that a 10 year warranty on workmanship for the contractor is over and beyond what is needed. All work is inspected by our staff and the building department. If there is defective workmanship it is going to show up within the first year. Mark requested that the roof warranty be changed back to a one year guarantee. Discussion occurred on poor quality of materials, workmanship and labor costs. Bernie Stroh indicated he thought the ten years was adequate warranty period and a way to protect our clients, and he felt it was not a burden for the contractor,who should be doing quality work. He also noted a roof should last for that period of time and longer. Board members were in agreement that the roof guarantee period should remain at 10 years. 2. Home Program Reports. Rudy Jones indicated the HOME reports are included in your packets. Any questions should be reviewed with Nancy Gulick upon her return next month. 3. Section 108BEDI Update. Rudy indicated the Brownfield Economic Development Initiative portion of the Section 108BEDI Grant is quickly coming to a close. Rudy commended the Rehabilitation Staff for utilizing as much of the dollars as possible in the time allotted. Approximately $400,000 was spent in this area since March 2008. The Rath Administration project, originally started out as a demolition project,then turned into a redevelopment project, and is still moving along with asbestos removal,historic designation and should become a good project over time. Rudy also noted the Lafayette Park project actually became a reality following the flooding delays this summer. Rudy noted that on the Section 108 Loan side, interest has been generated by Crystal Ice, due to flooding issues, and they are working with the Planning staff to access some of these Section 108 dollars. Further discussion on the development of Brownfield areas continued. Minutes September 16, 2008 Page 7 4. Adapting Our HOME Homebuyer Program to Current Market Conditions. 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It was moved by Elsie Duncan and seconded by Bernie Stroh to approve the agenda as submitted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JUNE 17,2008. It was moved by Bernie Stroh and seconded by Elsie Duncan to approve the minutes of the regular meeting on June 17,2008. Motion carried. C. PUBLIC HEARING: Adopt recommendation on Economic Development Initiative Grant No. B-08-SP-IA-0163 for renovation, construction and build out of the Cedar Valley Tech Works Technology Center. It was moved by Bernie Stroh and seconded by Elsie Duncan 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 July 3,2008. Motion carried. It was moved by Elsie Duncan and seconded by Gary Rankin to open the public hearing. Motion carried. The Chairman asked for comments from the public. There were none. It was moved by Gary Rankin and seconded by Elsie Duncan to close the public hearing. Motion carried. Bernie Stroh questioned the term"build out" for the Tech Works project. Chairman Johnson indicated this is for the two Deere Buildings that were donated to the nonprofit group to generate some business start-ups in that vicinity. This has been a nice transformation of the area. Minutes July 15, 2008 Page 2 Noel Anderson explained a typical build out, means included with the renovation and construction there may be other minor portions associated with the larger construction items. Chairman Johnson indicated Lockard is the general contractor and federal funds are combined with local match dollars. General HVAC work is being done to prepare the property for new tenants. Gary Rankin indicated build out means you are finishing out the building to a users specs. Following discussion it was moved by Bernie Stroh, seconded by Elsie Duncan,to recommend to the City Council the use of$196,000 in grant funds for renovation, construction and build out of the Cedar Valley Tech Works Technology Center utilizing EDI Grant No. B-08-SP-IA-0163. On roll call: Elsie Duncan, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. D. OLD BUSINESS: 1. Emergency Repair Loan Program—Subcommittee Recommendation. Chairman Johnson indicated the Rehabilitation Subcommittee members include Bernie Stroh, Gary Rankin and Mickye Johnson. The purpose of this discussion is to obtain fmancial contributions from the homeowners toward their individual repairs to leverage as many funds as possible. Subcommittee members indicated the biggest issue is who will service the loans and the dollar amounts required for owner participation. Nancy Gulick indicated we would like to work with a lending institution to make the loan applications and collect on the loans without a service fee. Rudy Jones stated he has contacted Regions Bank to set up a meeting and discuss these options. Currently,no action is required,but we hope to provide further details at the August meeting. E. NEW BUSINESS 1. Request to release forgivable loan at 410 Vinton—Amos, Owner. Chairman Johnson noted the owner of 410 Vinton Street, Gerald Amos, passed away April 27, 2008. His son has requested in writing that the Board release the forgivable loan on the property. Chairman Johnson read an excerpt from the original mortgage indicating..."the mortgage will become null and void on July 31, 2011 and the mortgagee (City) agrees to release in full said mortgage upon the death of the mortgagor(Gerald Amos) at the written request of the heirs should death occur prior to the five year expiration date, unless doing such would not result in any gain or benefit to the deceased mortgagors heirs." Chairman Johnson indicated we are bound to release the forgivable mortgage if it would benefit them. Minutes July 15, 2008 Page 3 Considerable discussion concerning the secured and unsecured creditors and/or whether an estate had been opened. It was determined the Board needed more facts to make a final determination and the Chairman suggested Rudy Jones communicate with Randy Amos to obtain additional information. Chairman Johnson indicated he would speak to the attorney, Steven Daniels concerning this file. Chairman Johnson noted we are bound by the terms of our agreement. If they can prove the money is going to heirs and not other creditors, then we should release the mortgage. Continued discussion on homestead exemptions, and other exempt assets, improvements to the homestead, and pre-existing debts. It was moved by Gary Rankin and seconded by Bernie Stroh to comply with the terms of the mortgage,with receipt of proof that by releasing said mortgage there is gain or benefit to the heirs. On roll call: Elsie Duncan,Bernie Stroh, Gary Rankin,Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried and indicated he would speak with Mr. Steve Daniels, attorney for the deceased. 2. Endorse Rehabilitation Contracts for June 2008. Board members reviewed the report. There were no questions or comments regarding the June report (copy attached). It was moved by Gary Rankin and seconded by Elsie Duncan to endorse the June 2008 Rehabilitation Contracts. Motion carried. On roll call: Gary Rankin,Elsie Duncan,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. F. DISCUSSION ITEMS: 1. HUD Monitoring Visit. Rudy Jones reported a team of HUD representatives are in the office this week, monitoring the CDBG and HOME programs, specifically the Home Buyer Education/Down Payment Assistance Program. We also have the Environmental Representative from St. Louis here monitoring the files for compliance. They are also reviewing the Section 108 BEDI Grant project. The monitoring teams will be in the office until Friday, July 18,2008. They bring to our attention findings that may be out of compliance with the regulatory or statutory regulations. They either recommend how to change our program or offer strong suggestions in ways to improve our programs. Nancy will be taking the monitoring team on several tours of our current and past projects. Chairman Johnson inquired if there were any areas of concern. Rudy Jones indicated that historically they have brought to our attention some aspects of our programs that need to be corrected. It will be rare if there isn't some matter to correct. He noted their visit is to help us improve our programs. Minutes July 15, 2008 Page 4 2. Quarterly Lead Grant Report Nancy indicated this was an overview of the full report, which is on file in the office. Four houses have been completed at this time under the lead grant. Gary Rankin advised there was a news story on Black Hawk Center for Independent Living. The Center received extension flood damage to their building, office records and equipment. They have moved to Falls Avenue because they could not return to their building. Nancy Gulick advised that Operation Threshold was also flooded out of their building and has set up business on Chestnut Street. Nancy indicated that both organizations called to advise us their records were lost in the flooding. Nancy reported that we have copies of any reimbursements they have asked for in our files, so we can provide that information if required. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary y y c a 7 C w O L Q) L c c 0 0 0 0 rn v 00 0 r- 0 69 M 69 0 HO 00 0 0 0 0111111 00 . 000 00 .MIIIIIIIIII �P c0 .a .- 111100011 g 0 �;t0 tf1a '(O N �,Nr Mc)40 U OU111111 i w OF 0FF NCC Fw- NQ w 0Q w 0 0 0 II � ¢ � 1- aD � NWZ 0 liii Z O 2 0 M0 ap N N N OU O O III O CDC) O p M M r U � 0 0 NIIf x 111111 a.U0 �" oF y rO¢ V aQIh1II e- 1111,:,,.<3 U 0 I— ° Fo- UmI- Fo- F- io U T.N fn L fA p TO0 � a ct a 'D ' o_ " i41 cc a. ce c y c .3 °0 3 • vi - � 3 o i a mweau N 3 °omaoi 3 3 a1 > > c m >wNL �y i N � H Qu) m mQ Oa o c woac pw N O eQm ' of rn N �O ^ a = a s. 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Members present: Jim Carstensen, Elsie Duncan,Mickye Johnson, Gary Rankin, and Bernie Stroh. Members absent: Eric Johnson. Also present: Rudy Jones, Community Development Director;Noel Anderson, Community Planning & Development Director; Quentin Hart, Council Liaison; Mark Boesen, Manager of Rehabilitation Services; Ann Northey,Administrative Secretary; Dave Zellhoefer, Assistant City Attorney; Dean Bass, Colonial Apartments; and Tim Jamison, Waterloo Courier. Acting Chairman Johnson indicated the agenda would be amended to add another item under New Business,D5: Farmer's State Bank request to become a participating lender for the Down Payment Assistance Program. A. APPROVAL OF THE AMENDED AGENDA. It was moved by Elsie Duncan and seconded by Gary Rankin to approve the agenda as amended. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON APRIL 15,2008. It was moved by Elsie Duncan and seconded by Jim Carstensen to approve the minutes of the regular meeting on April 15,2008. Motion carried. C. OLD BUSINESS. 1. Rehabilitation Subcommittee update on Colonial Apartments Project. Rudy Jones indicated several meetings and phone calls have taken place with Mr. Dean Bass to discuss the terms of the agreements and contract for the Colonial Apartments project. Some necessary corrections will be made to the contract, and Mr. Bass is here to discuss the terms on this project and requests changing the terms from 15 to 10 years for the period of affordability. Dean Bass, owner of the Cedar Valley Colonial Apartments reviewed the funding process from the state and the initial commitments from the city of$69,000. Mr. Bass noted the state funding is based on a 10 year compliance and he asked the Board to consider changing the terms of the city HOME funds to a 10 year period of affordability. Mr. Bass explained the many restrictions already placed on this building for tenants and rents and he felt it would be fair to reduce the number of years for compliance. Acting Chairman Johnson indicated the request is to revisit the terms of the contract agreement to change the period of affordability from 15 years to 10 years. The Chairman inquired if contracts were signed. Minutes June 17,2008 Page 2 Mr. Bass indicated he has not signed the contract. Rudy Jones noted that this was the first project we have ever given a grant to, as other projects were funded as loans. The terms were negotiated in June 2007 and this information was submitted to Mr. Bass. Conversations began in February 2008 to change the affordability terms to 10 years. Rudy stated our funding cycle conflicts with the state's funding cycle, but we were able to utilize LHAP (Local Housing Assistance Program)funds to make a partial grant/loan for this project. Rudy Jones indicated a draft contract was submitted to Mr. Bass for review. There would be opportunity to make changes or adjustments, and nothing was questioned until February 2008 about the terms. The Subcommittee recently discussed the terms and considered the possibility of a zero interest loan to reduce the affordability term. Since we did not use federal funds, we were not subject to federal standards. Rudy noted the main concern of this Board is to provide affordable housing for 15 years. Acting Chairman Johnson questioned Mr. Bass and stated, as a member of the Rehabilitation Subcommittee, I thought all terms were resolved after our last telephone conference. What provisions are you asking for at this time? Dean Bass indicated he would like the terms to be changed to match those of the state, or a 10-year period of compliance for affordability. Mr. Bass indicated he was not aware of the 15 year compliance until he saw the draft contracts in January. There may have been discussion along those lines along with a five year delay on repayment of the loan. Acting Chairman Johnson stated it would be challenging for us to change from 15 to 10 years,especially in light of the present economy. Being good stewards of the dwindling funds we have to allocate each year,the number of foreclosures,the higher need for affordable housing, so it becomes a challenge to vote in favor of changing the affordability period from 15 to 10 years. This was the agreement proposed, and in order to receive the state money you needed the city to support your proposal. The Board subcommittee agreed in April to stay with the 15 year term and move forward. Dean Bass indicated he was caught off guard and not prepared to discuss terms during the subcommittee's phone conversation. He noted the city had indicated problems with SHPO and with the City's building permits. Rudy Jones indicated those were not problems,but technical matters that needed to be resolved before the project could get started. SHPO clearance has been received, but we are not sure the certified plans and specifications have been submitted to the Building Inspection Department. Dean Bass noted his electrical contractor is working with the Building Inspection Department at this time. Acting Chairman Johnson indicated the Rehabilitation Subcommittee recommendation was to keep the term of affordability as is at 15 years for the Cedar Valley Colonial Apartments project. The need for affordable housing is very high. If we change to a 10-year contract, after the 10 years the rents can be raised and the units no longer must remain affordable for low-income tenants. Minutes June 17,2008 Page 3 Mr. Bass indicated he will be required to rent to tenants that meet the income levels defined by HUD as low and very low income. A percentage of the units must adhere to these conditions. This could involve some Section 8 tenants. Considerable discussion followed concerning other projects and their affordability requirements. Acting Chairman Johnson reiterated the challenges to combine a no-interest loan and grant to make this project work. The subcommittee recommended the 15-.year period of affordability remain in place. He noted the subcommittee also suggested if we would change to 10 years of affordability,then the no-interest loan should be changed to include interest. Following discussion, it was moved by Elsie Duncan and seconded by Jim Carstensen to approve the recommendation of the Rehabilitation Subcommittee and leave the term of affordability at 15 years for the Cedar Valley Colonial Apartments Project. On roll call: Jim Carstensen,Elsie Duncan, Gary Rankin,Bernie Stroh and Mickye Johnson voted Aye. Nays: None. The Acting Chairman declared the motion carried. Rudy Jones indicated a revised contract will be prepared and submitted to Mr. Dean Bass early next week. 2. Discussion on Emergency Loan Program—Subcommittee Recommendation. Rudy Jones stated the subcommittee has reviewed potential ways to strengthen the resources of the Emergency Repair Program by creating an Emergency Repair Loan Program. Mark Boesen reviewed the loan proposal as follows: Emergency Repairs Program-Loan Proposal Each housing unit over the 50 percent median income level will be required to contribute to the cost of the repair. For the 51-60%median, one-fourth will be loan, three-fourths will be grant. For the 61-80%, half will be loan, half grant. If more than $4,000 is needed, the owner can contribute that up front, or it can be negotiated into the loan product. NO SUBORDINATIONS ON EMERGENCY LOANS Income level Grant maximum Loan maximum Total 0-30%median $4,000 NA $4,000 31-50%median $4,000 NA $4,000 51-60%median $3,000 $1,000 $4,000 61-80%median $2,000 $2,000 $4,000 Income level Maximum Loan Loan Terms Monthly payment Total Return 0-30%median NA NA NA NA 31-50%median NA NA NA NA 51-60%median $1,000 0% 2 years $41.67 $1,000.80 61-80%median $2,000 2% 2 years $85.08 $2,041.92 Minutes June 17, 2008 Page 4 Income level 1 person 2 person 3 person 4 person 5 person 6 person 7 person 0-30%median $12,100 $13,850 $15,550 $17,300 $18,700 $20,050 $21,450 31-50%median 20,150 23,050 25,900 28,800 31,100 33,400 35,700 51-60%median 24,180 27,660 31,080 34,560 37,320 40,080 42,840 61-80%median 32,250 36,900 41,500 46,100 49,800 53,500 57,150 Rudy Jones indicated some homeowners have already contributed to their projects over a certain dollar amount. This proposal is for discussion and a meeting with the Rehabilitation Subcommittee will be scheduled before the next Board meeting to prepare a draft for the full Board. Discussion must include processing the loans, collection and how to handle defaults. The loan program will assist in providing administrative program income funds for the department. Acting Chairman Johnson asked Board members to review the information and make their recommendations to the Rehabilitation Subcommittee. Considerable discussion was held on putting the program in place to handle the process. Rudy Jones asked to briefly suspend discussion to move to the next agenda item. 2. Update on St.Mary's Villa. Rudy Jones indicated this project was funded with CDBG funds in the amount of$50,000 a number of years ago. Technical language in our agreement did not enable us to recoup all of the funding,however, St. Mary's Villa agreed to reimburse $10,000. Correspondence from HUD requires the city to repay the CDBG account$37,707.88. Dave Zellhoefer, Assistant City Attorney indicated Queen of Peace created a separate non-profit corporation for the sole purpose of running St. Mary's Villa. Unfortunately, the Community Development agreement was entered into with St. Mary's Villa, who was basically a corporation with no assets,that could be attached. Queen of Peace agreed to reimburse $10,000 toward this debt,however this amount has not been recovered. Acting Chairman Johnson questioned how the funds would be repaid to HUD? Rudy Jones indicated the amount must be paid back into the CDBG account. This will include the $10,000 from Queen of Peace and a combination of other funds,possibly GO Bonds. We could possibly request the additional funds come out of the LHAP account. Dave Zellhoefer indicated he would contact Jim Glaza to inquire about the $10,000. He noted,the Board must make a recommendation to the City Council to accept the $10,000 and request the balance to be recovered from LHAP funds. Mickye Johnson inquired how this affects our ratings with HUD. Rudy Jones indicated we must take care of this obligation, and it is a lesson learned, and there have been others over the years. Rudy noted the City Attorney is now reviewing all of our contracts before we enter into agreements. Minutes June 17,2008 Page 5 It was moved by Bernie Stroh to recover the$10,000 from Queen of Peace and authorize the use of LHAP funding in the amount of$27,707.88 and request the City Council to accept same. Motioned seconded by Jim Carstensen. On roll call: Jim Carstensen,Elsie Duncan,Gary Rankin,Bernie Stroh and Mickye Johnson voted Aye. Nays: None. The acting Chairman declared the motion carried. Returning to Item No. 2 - further discussion on the Emergency Loan Program. Gary Rankin indicated he would like to see a decision come before the Board at the next meeting. If this was the recommendation of the subcommittee, then we need to implement it and see if it works. Following further discussion about the income limit charts, the acting Chairman asked Rudy to receive input from Board members and get the Subcommittee together to formalize a program draft for review at the next meeting. 4. Confirm poll on Subordination Request for 1417 Bowers Street—Dawson, Owner. Bernie Stroh indicated he would like to discuss this issue, as he thought the Board had a policy in place regarding subordination of consumer debt. Bernie stated we should stick with our decision to deny requests,because we rarely do anyone a favor by subordinating for debt. It was moved by Bernie Stroh and seconded by Elsie Duncan to confirm the Board poll on May 28, 2008 to subordinate the forgivable loan at 1417 Bowers Street. Ayes: Jim Carstensen, Gary Rankin,Mickye Johnson and Elsie Duncan. Nays: Bernie Stroh. Motion carried. 3. Confirm poll on Subordination Request for 929 Lincoln Street—Gosse/Uhlenberg, Owners It was moved by Bernie Stroh and seconded by Elsie Duncan to confirm the Board poll on May 28, 2008 to subordinate the forgivable loan at 929 Lincoln Street. Ayes: Jim Carstensen, Gary Rankin, Mickye Johnson and Elsie Duncan. Nays: Bernie Stroh. Motion carried. D. NEW BUSINESS 1. Request from Ideal Financial Services to subordinate the forgivable loan on property at 201 Dawson Street—Jackson, Owner. Rudy Jones indicated this request is to subordinate the forgivable loan to Florida Jackson for consumer debt. It was moved by Bernie Stroh and seconded by Elsie Duncan to deny the request. On roll call: Elsie Duncan,Bernie Stroh,Jim Carstensen,Mickye Johnson voted Aye. Nays: None. The Acting Chairman declared the motion carried. 2. Review Housing Counseling Monitoring Report. Rudy Jones reviewed the monitoring report on the Waterloo Housing Partnership Down Payment Assistance Program /Home Buyer Education Program. There have been several communications with Ms. Waller of the HUD Milwaukee Office and we are working to alleviate the findings noted in the Performance Review Report. We are also working with Dennison and Associates in Washington to strengthen our Down Payment Assistance and Home Buyer Education Programs. Minutes June 17,2008 Page 6 Several Board members expressed their concern with the findings and were surprised these things were not being done. Rudy noted procedure manuals are being prepared with all staff to include processes to avoid these findings in the future. It has been noted that we will not receive the designation as a Housing Counseling Agency if we cannot correct these findings. There will be another monitoring visit during August. Acting Chairman Johnson inquired as to what has been implemented to correct these matters and asked for an explanation. Rudy Jones stated this is a new designation we applied for in 2006. Most of the compliance items were covered,but documentation required at the beginning of the process was not done. Our questions are, is the program actually"Counseling" or are we just working persons through a process. People are assuming that Donna is a counselor when that is not what is taking place, according to HUD. Bernie Stroh noted,that is not her job. Rudy stated when the program was monitored, and they found out Donna was not doing those things,then they said either you do them or you lose your designation as a Housing Counseling Agency. Acting Chairman Johnson inquired, do we want to be a Housing Counseling Agency or not? Rudy Jones stated, in light of the housing market, if we could provide the best education and best types of services to our clients it is to their benefit. However,we must understand what the standard is and follow it. Board members questioned if Donna was prepared to do this. Rudy stated that he hopes she is, and if we find out differently we will forfeit that designation. We will still need to follow some standards,with or without HUD's designation to be a housing counseling agency. Bernie Stroh inquired if the Waterloo Housing Partnership Coordinator position is a full time job? Rudy Jones indicated this has been full time, but the way the housing market is going the next 6-18 months will be critical in determining this,but I cannot say for sure now. The housing market is in crisis from foreclosures to lack of funds to maintain these homes. If it wasn't for the collective wisdom of this Board my job would be ten times more difficult. We give her the tools,here is the standard to adhere to and if not we lose the designation and consider the possibility of whether this is a job that warrants being full time. Discussion turned toward training for this position and to inform the Board of the measures being taken to assess the fmdings. Rudy noted the housing industry is moving so fast and some agencies have separate positions for down payment and home buyer education. We are juggling both of those with one position. Minutes June 17,2008 Page 7 3. Endorse Rehabilitation Contracts for April and May 2008. Rudy Jones noted we are applying some of the BEDI funds for projects in the Brownfields area. We will not be able to utilize all the funds because of the time constraints. Flooding of the Lafayette Park area and neighborhood has hampered efforts. Board members inquired about extensions due to flooding conditions. Rudy noted this may be a possibility. No further questions or comments regarding the April and May 2008 Rehabilitation Contracts report (copies attached). It was moved by Elsie Duncan and seconded by Jim Carstensen to endorse the April and May 2008 Rehabilitation Contracts. Motion carried. Discussion on the Homeowner Evaluations placed in the Board Packets. Acting Chairman Johnson requested a written explanation on those comments from homeowners when they raise a question or concern so the Board is aware of what action has been taken on each issue. 4. Set date of Public Hearing for July 15,2008 on the EDI funds B-08-SP-IA-0163 "For Renovation, Construction and Buildout of the Cedar Valley TechWorks Technology Center in the amount of$196,000. It was moved by Bernie Stroh and seconded by Elsie Duncan to set the date of Public Hearing for July 15,2008 on the EDI project B-08-SP-IA-0163. Motion carried. 5. Farmers State Bank request to become a participating lender for the Down Payment Assistance Program. Rudy Jones indicated the Farmers State Bank offers a comparable financial package to the other lenders and we recommend adding them to our list of participating lenders for the down payment assistance program. It was moved by Elsie Duncan and seconded by Bernie Stroh to approve the request from Farmers State Bank to become a participating lender for the Waterloo Housing Partnership Down Payment Assistance Program. Motion carried. E. DISCUSSION ITEMS: 1. Information from CHDO Training. Rudy Jones indicated Linda Morgan, Executive Director of Iowa Heartland Habitat for Humanity attended CHDO workshop training in Minnesota, entitled Non-Profit Affordable Housing Agencies, and submitted notes concerning the training. Minutes June 17,2008 Page 8 2. Quarterly HOME Report Rudy Jones stated the quarterly report includes allocations for HOME funded projects. Questions arose concerning the involvement of FEMA for flood victims. Jim Carstensen expressed that if the federal government is going to send any funds to us, our congressional leaders need to know rather than disburse them from Washington,D.C.,that we need to be involved locally. Rudy Jones noted in 1993 our department was extensively involved in the allocation process. When the dollars came through,we did what we could in terms of relocation, demolition, and damaged houses in the Sherwood Park area. 3. Application to Iowa Finance Authority on Infrastructure for Waterloo Housing Authority Units. Rudy reported on the grant Nancy Gulick secured for the Waterloo Housing Authority for $16,400 to assist in infrastructure development for four new single-family homes. E. DISCUSSION ITEMS Gary Rankin expressed his concerns with the subordination requests approved and denied today and questioned taking a hard line one way or the other. Several other Board members commented on the policies of the Board. F. ADJOURN MEETING With no further business to come before the Board,the Acting Chairman adjourned the meeting. 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The Chairman noted a quorum was present, and stated we are still short one member on the Board and asked the Council Liaison present to bring this matter to the Mayor's attention. Members present: Jim Carstensen, Elsie Duncan, Gary Rankin, Bernie Stroh and Eric Johnson. Members absent: Mickye Johnson. Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Quentin Hart, Council Liaison; and Mark Boesen,Manager of Rehabilitation Services. A. APPROVAL OF THE AGENDA. It was moved by Elsie Duncan and seconded by Jim Carstensen to approve the agenda as proposed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON MARCH 18,2008. It was moved by Bernie Stroh and seconded by Elsie Duncan to approve the minutes of the regular meeting on March 18,2008. Motion carried. C. OLD BUSINESS. 1. Update on Tax Credit Projects—Reallocation of Funds. Rudy Jones indicated the Board historically makes a commitment to fund potential developers on projects that qualify for tax credits. Unprogrammed HOME funds were set-aside for this purpose in the amount of$42,377.00. Unfortunately,this year the city/county did not receive any projects where tax credits were awarded so we need to reallocate those funds to other projects. Chairman Johnson inquired whether there were recommended uses for these funds? Rudy Jones stated typically these funds would be reallocated to the Single Family Rehabilitation line item and we would like to utilize these funds for this purpose. Nancy Gulick also indicated information was received from HUD concerning a one day Community Housing Development Organization(CHDO)training available in Minneapolis for our subrecipient, Iowa Heartland Habitat for Humanity. Our Administration funds are not eligible to finance this expense for our CHDO subrecipient to attend,but we can set aside CHDO Operating Funds so the Director of Iowa Heartland Habitat for Humanity, Linda Morgan, can attend this training. Nancy Gulick suggested that $2,000 of the tax credit funds be set aside in a CHDO Operating Fund to utilize for this training and any future training events. Nancy stated,the training is free, however we Minutes April 15, 2008 Page 2 must pay the travel expenses for gas and the hotel room. The balance of the tax credit funds could be allocated toward Single Family Rehabilitation. It was moved by Bernie Stroh and seconded by Jim Carstensen to reallocate the available HOME funds as follows: $2,000 to the CHDO operating and $40,377.00 to Single Family Rehabilitation. Nancy Gulick stated she would prepare an agreement with Iowa Heartland Habitat for Humanity for the use of these funds, indicating the purpose is for training. On roll call: Jim Carstensen,Elsie Duncan,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Gary Rankin now present. 2. Rehabilitation Subcommittee update on Colonial Apartments Project. Chairman Johnson referenced the summary attached to the Board minutes and correspondence from Cedar Valley Colonial Apartment, LLC, explaining specific changes to the Subrecipient Agreement to shorten the affordability period from 15 to 10 years. Rudy Jones stated the change could be made,however staff is recommending that the 15-year term remain effective, based on the favorable financial package Mr. Dean Bass received on this project. Chairman Johnson questioned why IDED was on a different page. Nancy Gulick responded the HOME affordability is based on how much money is put into each unit. Apparently Mr. Bass is putting less than$40,000 into each unit, so that is why it is 10 years. Mr. Bass set up the original terms that included 15 years. Rudy noted a couple other matters are being worked through because there is historical significance with the building, so authorization from the state historic preservation office is required for certain improvements. We are waiting upon a certified set of plans and specifications that will meet the criteria of the Building Inspection Department. Gary Rankin initiated discussion on the$44,000 loan and$25,000 grant(forgiven over 15 years) and noted Mr. Bass is asking for the affordability period to be rewritten for 10 years. Bernie Stroh indicated the loan is at 0%interest and one option the subcommittee mentioned would be to move to 3%on the loan if affordability was reduced. Bernie Stroh stated this was Mr. Bass' plan and it was okayed,however, some of the other things that he was required to do,have not yet been done. Chairman Johnson expressed his thoughts in that he would rather agree to 10 years of affordability and have the project go forward with state funds assisting in the rehabilitation, than to jeopardize the transaction and lose the project altogether.