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MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
October 16, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday, October 16, 2007.
Members present: Jim Carstensen,Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson,
Chairperson.
Members absent: Elsie Duncan.
Also present: Nancy Gulick, Community Development Coordinator;Don Temeyer, Community
Planning&Development Director; Mark Boesen, Manager of Rehabilitation Services; Arm Northey,
Administrative Secretary; Lori Miller and Clarissa Nicholson, Operation Threshold; Rick Curran, Leisure
Services Department; Adam Bennett, Remington Farms; and Tim Jamison,Waterloo/Cedar Falls Courier.
A. APPROVAL OF THE AMENDED AGENDA.
Chairman Johnson indicated the mailed agenda was amended to add Item No. D2b under New Business;
Tax Credit Projects—Ridge Village Apartments.
It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the amended agenda.
Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON SEPTEMBER 18,
2007.
It was moved byGaryRankin and seconded
o ed by Bernie Stroh to approve the minutes of the regular
meeting on September 18,2007. Motion carried.
C. OLD BUSINESS:
1. Update on Sale of Homes Cedar Valley Restoration and Development.
Chairman Johnson noted this item was discussed last month and some question arose concerning the sales
price on theses home. Nancy Gulick indicated they were listed at $99,900. and the one we have sold
with our down payment assistance was sold at this price. Gary Rankin indicated the information he
picked up at the property indicated a different price.
D. NEW BUSINESS:
1. Grant Extension—Waterloo Leisure Services for Spring View Park Restroom.
Nancy Gulick indicated Waterloo Leisure Services received a grant in the amount of$25,000 from Fiscal
Year 2006 for the restroom project at Spring View Park.
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Minutes
October 16, 2007
Page 2
Rick Curran of Leisure Services explained the unforeseen construction delays which have hampered their
progress on the restroom project. Rick Curran explained they should be able to complete the project by
June 2008.
Following discussion, it was moved by Mickye Johnson and seconded by Jim Carstensen to approve
the request for an extension on the Spring View Park Restroom project. Motion carried.
2. Tax Credit Projects: Remington Farms and Ridge Village Apartments
Chairman Johnson inquired if either project was dependent upon the other ?
a. Remington Farms
Nancy Gulick indicated each entity will apply separately to the State for Tax Credits. The Remington
Farms project,which is new construction, needs a local match of$175,000. Nancy noted the other
project, Ridge Village Apartments, is asking for$6,400 for rehabilitation of rental apartments. Nancy
indicated her understanding was there must be 1% local contribution on these projects. The Remington
Farms request is slightly over that percent and Nancy indicated she would check on this fact.
Nancy indicated there is a third tax credit project associated with the Crossroads area, however we have
not received any information for this project.
Further discussion continued on the location of these projects and the best leveraging of funds. Chairman
Johnson indicated these two requests are seeking the Board's commitment to their projects, should they
benefit from the tax credit application process. If their projects are not approved for tax credits, then
these funds may be utilized for other projects.
Following discussion, it was moved by Bernie Stroh to authorize a commitment of 1% local match
for the Remington Farms project, contingent upon their award of tax credits from the State and
additional financing. Mickye Johnson seconded the motion.
Discussion continued on the percentage and whether the project would meet our low-moderate income
housing needs. Gary Rankin also noted there are some huge fees and developer costs associated with this
project, and expressed concern that the project would provide a benefit to our community.
On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
b. Ridge Village Apartments
Adam Bennett explained the proposed rehabilitation for the Ridge Village Apartments project at 1261
Downing Court in Waterloo. Many interior improvements and updates will be made as well as
resurfacing the parking lot and other aesthetic improvements to the property.
It was moved by Bernie Stroh to authorize a commitment of 1% local match for the Ridge Village
Apartments. Motion seconded by Jim Carstensen.
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Minutes
October 16, 2007
Page 3
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. Re-Allocate Recaptured HOME Funds from Fiscal Year 2007.
A memo from staff indicated $42,377.00 in HOME funds were not expended last fiscal year. Nancy
Gulick indicated the total amount could be placed in an Unprogrammed line item until a decision was
made on the tax credit projects.
Chairman Johnson inquired about the deadline for the tax credit projects. Nancy stated they would be
reviewed and approved on or about March 15, 2008. Nancy noted since these are HOME funds they can
be utilized for Housing Rehabilitation,Down Payment Assistance, Tenant Based Rental Assistance or
Tax Credit Projects.
It was moved by Bernie Stroh to place the$42,377.00 in HOME funds in an "Unprogrammed" line
item until March. Motion seconded by Mickye Johnson.
Discussion on utilizing these funds for rehabilitation assistance if needed before the end of the year.
Nancy indicated this amount could complete two homes,if we do not use it for the tax credit projects.
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. Request from Rooff Development LLC.
Nancy Gulick explained that John Rooff built a new construction home utilizing $10,000 of HOME funds
for the developer fee. John Rooff has an interested purchaser for this property that does not meet the
income guidelines. Therefore,he is requesting that he build another house without getting any funding so
that he can meet his four (4) house requirement.
Chairman Johnson inquired if there was a time frame to complete the construction of the additional house.
Nancy noted Mr. Rooff would plan to have the house completed by spring. The house would have to
meet all the requirements for an income eligible person. Rooff has a buyer now for the property,but
they do not meet the low-income guidelines. Therefore, John Rooff wants to sell this house and put up
another one, without utilizing the $10,000 fee.
It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the request from
Rooff Development,LLC to sell the house at 433 Beech Street to a non-income eligible buyer, and
build another house for completion by June 30,2008 without utilizing any additional grant funds.
Considerable discussion took place on the selling price of the house and whether the developer should
repay the $10,000 on this house,then sell it to a buyer that did not meet the eligibility requirements.
Minutes
October 16, 2007
Page 4
Chairman Johnson indicated we are trying to stimulate building with infill construction. Our goal is that
any of these developers would be successful.
The Chairman called for a roll call vote: Bernie Stroh, Gary Rankin, Jim Carstensen,Mickye
Johnson and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried.
5. Endorse Rehabilitation Contracts for September 2007
Chairman Johnson asked the Board to review the spreadsheet for September. (See copy attached.)
It was moved by Mickye Johnson and seconded by Gary Rankin to endorse the September 2007
Rehabilitation Contracts 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.
6. Campout for Homeless Awareness
Lori Miller from Operation Threshold indicated that Governor Culver announced the month of November
as National Hunger and Homeless Awareness month. She noted there are homeless men and women in
the community, so we need to be aware and get the message out. This is also a fundraiser for the shelters
in the area. Lori Miller noted that last year Nancy Gulick was one of the top fund raisers for the program.
E. DISCUSSION ITEMS. None.
F. 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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MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
August 21, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday,August 21, 2007.
Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson, Gary Rankin*, Bernie Stroh and
Eric Johnson, Chairperson.
Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development
Coordinator; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative
Secretary; and Chris Western,Associate Planner.
A. APPROVAL OF THE AMENDED AGENDA.
Chairman Johnson indicated the mailed agenda was amended to add Item No. 5 under New Business;
HOME Consortium Renewal—2008-2009-2010.
It was moved by Mickye Johnson and seconded by Elsie Duncan to approve the amended agenda.
Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JULY 17,2007.
It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the minutes of the
regular meeting on July 17,2007. Motion carried.
C. OLD BUSINESS:
1. Sidewalk Application Report.
Rudy Jones indicated the City Engineering Department requested funding for sidewalk repair activities
during the block grant process. The subcommittee initially did not recommend funding for this project,
however,the City Council, at their public hearing allocated $15,000 of block grant funds toward sidewalk
repairs. Applications were reviewed by Community Development staff and 49 properties have met the
qualifications for assistance in Zone 7. Since there was limited funding for this project the City
Engineering Department determined that$80.64 per panel reduction in the assessment cost for each
property owner would be granted. The final public hearing with the City Council is scheduled for
September 4, 2007.
Rudy Jones indicated that in the future the Board may wish to encourage the use of other funding streams
to complete the sidewalk repairs, such as the Option Tax or gambling proceeds. Rudy noted this was for
information purposes only, as bids for the repair work will be coming in during September.
Discussion continued on the cost estimates provided for the sidewalk repairs and whether staff time was
considered. Chairman Johnson indicated this should be discussed further after the bids are received.
Minutes
August 21, 2007
Page 2
D. NEW BUSINESS:
1. Re-Allocate Recaptured Funds from Fiscal Year 2007.
Rudy Jones indicated some activities did not utilize all of their funding allocations from last fiscal year.
These dollars must be reallocated. Rudy noted he met with the Mayor and these recommendations were
proposed to utilize the $87,247.80 in carry-over funds:
$18,860.00 from Planning line item to remain in the Planning BG20 line item;
$44,298.00 from Neighborhood Services to be reallocated to Rehab BG14A line item, and
$24,088.00 from Waterloo Housing Partnership/Home Buyer Education reallocated to Emergency
Repairs.
Chairman Johnson asked for an explanation why these funds were not utilized.
Rudy Jones indicated he did not know why the Planning allocation of$18,860 was not utilized.
Rudy stated the Neighborhood Services carry-over of$44,298.00 was mostly due to the decrease in staff
costs for that department. The $24,088 carry-over from Waterloo Housing Partnership/Home Buyer
Education was due to utilizing carry-over from FY06 in FY07.
Mickye Johnson asked for an explanation or justification why the funding for the Planning line item had
not been utilized. Mickye noted there were other organizations we had to turn down for funding and
HUD has stressed the timely use of these funds. Mickye noted from his experience with grants from
Washington, if you don't use the funds allocated they are recaptured.
Chris Western,Associate Planner indicated that Don Temeyer would be able to address this question.
Chairman Johnson reviewed the allocations and asked for any additional questions.
Rudy Jones added the comment that by leaving the $18,860.00 in the Planning line item,this will press up
against our 20%administrative costs. He noted this issue was brought to the attention of the Mayor and
Don Temeyer, and we will monitor this so we are not in jeopardy of going over our cap.
Chairman Johnson indicated the amount allocated to Planning this fiscal year was a lower amount at
$10,000, so in combining these funds they will likely be utilized this year.
Board members again questioned the use of these funds and Chairman Johnson indicated we will ask for
an explanation from Don Temeyer. The Chairman noted the Board can make recommendations, however,
the Mayor and Council are the elected officials who have the authority to make changes in order to
balance their budget.
Rudy Jones indicated staff will monitor the administrative costs closely over the next 6-9 months to make
certain we do not exceed our 20%cap. If we do, we will be paying those funds back.
Minutes
August 21, 2007
Page 3
Chairman Johnson called for a motion to approve the re-allocation of funds as presented, and directed
Rudy Jones to receive clarification from Don Temeyer, Community Planning &Development Director, as
to where the Planning money will be used and to monitor this activity to make certain we do not exceed
the 20% cap.
It was moved by Bernie Stroh and seconded by Jim Carstensen to authorize the re-allocation of
recaptured funds from Fiscal Year 2007 with stipulations noted above.
On roll call: Jim Carstensen, Elsie Duncan, Mickye Johnson, Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
2. Review Down Payment Assistance at 430 Quincy Street.
Rudy Jones explained this is the new construction property built by Greg Glidewell and owned by Betty
Siemans. Rudy indicated there is a perceived conflict of interest with the sale of this property at 430
Quincy Street as the buyer indicated to staff that Larry Oltrogge was the realtor. Affidavits were
submitted from Larry Oltrogge and Michael Meaney of Cortright Realtors that no compensation or
remuneration would be received on the sale of this property.
It was moved by Elsie Duncan and seconded by Bernie Stroh to approve the down payment
assistance at 430 Quincy Street. Motion carried.
3. Endorse Rehabilitation Contracts for July 2007.
Chairman Johnson asked the Board to review the spreadsheet for July and noted the larger print on the
report, as requested. (See copy attached.)
Elsie Duncan questioned the total amount listed under CDBG Rehab. Nancy Gulick indicated this was
an error and would be corrected for the record.
It was moved by Elsie Duncan and seconded by Mickye Johnson to endorse the July 2007
Rehabilitation Contracts as presented,with the CDBG Rehab total corrected as noted.
On roll call: Jim Carstensen,Elsie Duncan, Mickye Johnson, Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
4. Set date of public hearing for September 18, 2007 on the Consolidated Annual Performance and
Evaluation Report(CAPER).
Chairman Johnson indicated the hearing is scheduled to review the activities for Fiscal Year End 2007.
Public comments may be heard and incorporated into the final CAPER document before submission to
HUD.
It was moved by Jim Carstensen and seconded by Mickye Johnson to set the date of public hearing
for September 18, 2007 for the Consolidated Annual Performance and Evaluation Report
(CAPER). Motion carried.
*Gary Rankin now present.
Minutes
August 21, 2007
Page 4
5. HOME Consortium Renewal—2008-2009-2010.
Rudy Jones indicated we were informed by our HUD representative that the timeframe to renew the
HOME Consortium with the cities of Waterloo and Cedar Falls is now due.
Nancy Gulick indicated the Consortium is a three-year grant period which begins July 1, 2008. The
renewal must be authorized and approved by the Board and City Council. Nancy noted that Waterloo is
an entitlement city which gives us a certain percentage of HOME funds. Registering as a Consortium
with the City of Cedar Falls provides additional HOME dollars to be utilized between both cities.
Following discussion, it was moved by Bernie Stroh and seconded by Mickye Johnson to authorize
submission of the HOME Consortium Agreement with the City of Cedar Falls. Motion carried.
E. DISCUSSION ITEMS
1. EPA Grant Agreements.
Nancy Gulick reported we received the award of$100,000 from the Environmental Protection Agency for
the grant we applied for last January. Our application requested funds for assessments and clearance
testing for lead, blood lead level testing, education and out reach and contractor training. Some personnel
costs are also included in this two-year grant. Nancy noted we will again partner with the Black Hawk
County Health Department for the use of these funds.
F. ADJOURN MEETING:
With no further business to come before the Board, the Chairman adjourned the meeting.
Respectfully submitted,
Elsie Duncan, Secretary
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MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
July 17, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday, July 17, 2007.
Members present: Jim Carstensen, Elsie Duncan, Gary Rankin,Bernie Stroh and Eric Johnson,
Chairperson.
Members absent: Mickye Johnson.
Also present: Rudy Jones, Community Development Director;Don Temeyer, Community Planning&
Development Director;Nancy Gulick, Community Development Coordinator;Mark Boesen, Manager of
Rehabilitation Services; Tim Jamison, Waterloo Courier; Gurna Garcia, Jason Garcia; and Josephine
Johnson.
A. APPROVAL OF THE AMENDED AGENDA.
Chairman Johnson indicated the mailed agenda has been changed to remove Item No. 3 under New
Business. This item is the Allocation of Carry-Over Funds—CDBG and HOME Programs, which will be
discussed at a later date.
It was moved by Bernie Stroh and seconded by Elsie Duncan to approve the agenda as amended.
Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JUNE 19, 2007.
It was moved by Elsie Duncan and seconded by Bernie Stroh to approve the minutes of the regular
meeting on June 19,2007. Motion carried.
C. OLD BUSINESS:
1. Executor's request to release forgivable mortgage on property at 324 Butler Avenue—Maybry,
deceased owner.
Chairman Johnson indicated this item was tabled at the June meeting for more information. A letter was
received from Ms. Josephine Johnson, the daughter and executor of Ms. Martha Mabry's estate.
Ms. Johnson indicated she has six siblings and has been appointed executor of the estate. John Harris is
the attorney. Ms. Johnson indicated she is living in the property and does not intend to sell the property.
Chairman Johnson indicated if a member of the family remains in the home,the forgivable loan will run
it's course and expire after the five year period is fulfilled. There will not be any funds due if a family
member remains living in the property.
Minutes
July 17, 2007
Page 2
Following discussion it was moved by Bernie Stroh and seconded by Gary Rankin to acknowledge
Ms. Johnson as an heir living in the property at 324 Butler Avenue through the balance of the five-
year forgivable loan period.
On roll call: Jim Carstensen, Elsie Duncan, Gary Rankin,Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
D. NEW BUSINESS:
1. Request to release forgivable mortgage on property at 1810 Mulberry—Garcia, deceased owner.
Chairman Johnson reviewed the status of the forgivable loan, which covers a$9,000.00 plus roof
replacement on the home at 1810 Mulberry Street.
Mrs. Gurna Garcia indicated she has a current mortgage on the property, with considerable consumer debt
against the property and stated she wishes to move to an assisted living facility. She noted her home is up
for sale at $59,900, and they intend to pay off outstanding credit card debt, due to her husband's illness.
Rudy Jones indicated because the roof repair was well over$4,000,this triggered a mortgage against the
property.
Considerable discussion took place concerning the benefit to the property with the new roof to justify the
$9,000 lien against the property. Emergency repairs under $4,0000 never carry a lien.
Board member Jim Carstensen indicated this was a hardship letter, which makes the circumstances easier
to forgive the loan.
Following discussion, it was moved by Gary Rankin and seconded by Bernie Stroh to wait until
after August 2007,when the loan moves to being in a position that 25% of the total is forgiven.
Then agree to forgive the difference between the amount left and$4,000, or giving the homeowner a
$4,000 credit.
On roll call: Jim Carstensen,Elsie Duncan,Bernie Stroh, Gary Rankin and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
2. Request from Veridian Credit Union to subordinate forgivable loan at 1626 Franklin Street—
Stickley, Owner.
Chairman Johnson indicated this is a revised request from Veridian Credit Union on the Stickley
forgivable loan that was reviewed last month and denied.
Rudy Jones indicated the lender has negotiated with the Stickley's to refinance and their interest rate may
be higher but the monthly payment is lower.
ti
Minutes
July 17, 2007
Page 3
Following discussion it was moved by Gary Rankin and seconded by Jim Carstensen to approve the
request to subordinate the forgivable loan at 1626 Franklin Street for Bennie and Martha Stickley
to Veridian Credit Union.
On roll call: Elsie Duncan, Gary Rankin,Bernie Stroh,Jim Carstensen and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
3. Select Homes—Single Family In-Fill Housing Request.
Rudy Jones reported John Rooff met with staff and requested additional resources to continue building
new construction homes.
John Rooff commented that he has built four homes utilizing HOME New Construction funds. One home
has been sold and the second is under bank financing. Mr. Rooff requested Board authorization to
support the construction of another four homes.
Chairman Johnson stated the project carried out by Select Homes has fulfilled the commitment set forth
by the Board for new construction homes.
Rudy Jones indicated the last commitment was for $10,000 per home.
Nancy Gulick noted the Stokes contract was terminated with$30,000 remaining. The Franklin/Gateway
project did not materialize, which totals $45,000. Also there are the Deeds' properties that have not been
completed.
Rudy emphasized Mr. Rooff would like to get started this fall for Spring completion on four new homes.
John Rooff further explained the construction process, marketing the homes and all the programs
available to assist the home buyer.
It was moved by Elsie Duncan and seconded by Jim Carstensen to provide $40,000 ($10,000 per
home) to Select Homes for construction of four(4) new homes.
On roll call: Elsie Duncan,Jim Carstensen, Gary Rankin, Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
4. Discuss Policy on Assistance to Clients - Proof of Citizenship.
Rudy Jones indicated some of our clients do not have social security numbers or INS numbers. We
would like to have a formal policy to address this issue.
Chairman Johnson inquired if there was a HUD policy in place.
Nancy Gulick stated there is no policy and it is up to the local jurisdiction to determine. She indicated
staff proposes a policy that states "Applicants and all household members must be able to demonstrate
proof of legal residency with a Social Security Number or INS Number. This information must be
present in the clients' file."
Minutes
July 17, 2007
Page 4
Following considerable discussion, it was moved by Bernie Stroh to adopt the policy as proposed by
staff. The motion was seconded by Gary Rankin.
Elsie Duncan questioned what if the head of the household has a social security number but other
household members do not.
Rudy Jones indicated the intent is to have all household residents classified as legal residents in order to
receive our assistance, or be in the process of becoming citizens.
Chairman Johnson inquired if any assistance has been denied,based on this criteria? Rudy Jones
responded that we have not denied anyone as yet,but we have had several instances come up with both
the down payment assistance program and during the current sidewalk application process.
The Chairman called for a vote to adopt the language as proposed. Ayes: Jim Carstensen, Gary
Rankin,Bernie Stroh and Eric Johnson. Nay: Elsie Duncan. The Chairman declared the motion
carried.
5. Endorse Rehabilitation Contracts for June 2007
Chairman Johnson asked the Board to review the spreadsheet for June. (See copy attached.)
It was moved by Bernie Stroh and seconded by Elsie Duncan to endorse the June 2007
Rehabilitation Contracts as presented.
On roll call: Jim Carstensen,Elsie Duncan, Gary Rankin,Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
Elsie Duncan requested larger print on future reports.
6. Acceptance of Larry Oltrogge's Resignation.
Chairman Johnson indicated that Larry Oltrogge turned in his resignation as a Board member after the
meeting in July. The primary reason is because, as a realtor, he has a conflict of interest with selling
homes utilizing the down payment assistance program.
It was moved by Gary Rankin and seconded by Jim Carstensen to accept Larry Oltrogge's
resignation as a Community Development Board member, and express gratitude for his years of
service to the Board. Motion carried.
Don Temeyer indicated there is a one-year waiting period before Larry Oltrogge can be involved with the
sale of any homes utilizing the down payment assistance program. This information has been transmitted
to Mr. Oltrogge in writing.
Minutes
July 17, 2007
Page 5
E. DISCUSSION ITEMS
Don Temeyer indicated the City has been awarded $1.6 million in EDA funds for the Cedar Valley Tech
Works project.
Don also reported the Section 108 drawdown makes$500,000 available for rehabilitation work in the
Rath neighborhood area.
Don stated the CMC cleanup is progressing and we are working on the first phase of demolition for the
Chamberlain building, utilizing the Iowa Brownfields grant.
F. ADJOURN MEETING:
With no further business to come before the Board,the Chairman adjourned the meeting.
Respectfully submitted,
Elsie Duncan, Secretary
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MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
June 19, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday, June 19, 2007.
Members present: Jim Carstensen,Elsie Duncan, Mickye Johnson, Larry Oltrogge and Eric Johnson,
Chairperson.
Members absent: Gary Rankin and Bernie Stroh.
Also present: Rudy Jones, Community Development Director;Don Temeyer, Community Planning &
Development Director; Mark Boesen, Manager of Rehabilitation Services and Ann Northey,
Administrative Secretary.
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 MAY 15,2007.
It was moved by Mickye Johnson and seconded by Larry Oltrogge to approve the minutes of the
regular meeting on May 15,2007. Motion carried.
C. OLD BUSINESS:
1. Updates on Infill Construction Projects:
a. Cedar Valley Restoration and Development
b. Select Homes
c. W. C. Stokes Development
Rudy Jones reported on the Cedar Valley Restoration and Development projects with David Deeds. Mr.
Deeds has been working with John Rooff of Select Homes and they are finalizing the sale of one home in
the next 30-60 days. The housing market is being reviewed to see if they will build additional units. The
market has been difficult.
Rudy indicated John Rooff of Select Homes has built four homes, which are being marketed and listed.
There is a potential buyer for one of these properties.
Rudy noted correspondence was received from W.C. Stokes concerning his retirement. He will not be
constructing any more homes. Mr. Stokes did fulfill a portion of his contractual commitment with the
city,but he does not intend to complete the contract.
Minutes
June 19, 2007
Page 2
Chairman Johnson inquired if the contract with W. C. Stokes should be amended and would the funds be
reprogrammed.
Rudy Jones stated we would need to terminate the contract with W. C. Stokes and reprogram the funds
committed. This comes at the beginning of our new funding cycle and we have some other funds ready
to come on line with regard to the Section 108 /BEDI Grant.
Chairman Johnson indicated John Rooff of Select Homes is the only contractor who has fulfilled his
obligation to build four homes.
Rudy Jones indicated that Select Homes is now on hold until his new homes are sold.
2. Update on funding the Colonial Apartments project.
Rudy Jones indicated the State of Iowa awarded Dean Bass of Colonial Apartments, funding in the
amount of$700,000 contingent upon a 10%match from the city in the amount of$69,000. This came
about after our funding process and the Board did approve an award of$70,000 with a zero interest loan
with a 10 or 15 year term to coincide with the state funding. Mr. Bass expressed concern with the
Board's decision, in that this loan would adversely affect his proforma and he had preferred the funding
be in the form of a grant or forgivable loan. At that point the staff began researching other funding
possibilities for the project. LHAP funding (Local Housing Assistance Program fund) are available to
use as grant/forgivable loan funds. The possibility to use GO Bond funds was also discussed.
Rudy Jones indicated LHAP funding was selected in the form of a zero interest forgivable loan in the
amount of$25,000 with a balance of$44,000 in the form of a loan with beginning repayment in year six.
Further discussion was held concerning the location of the 24 Colonial Apartment units and leveraging of
funds from the state.
It was moved by Jim Carstensen and seconded by Elsie Duncan to provide funding to the project in
the amount of$69,000 for the Colonial Apartments project at 801 West 4th Street, utilizing LHAP
funds. Terms are for a 15 year loan - $25,000 as a forgivable loan with the balance of$44,000
made repayable with no interest due, beginning in year six of the loan.
On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge and Eric Johnson
voted Aye. Nays: None. The Chairman declared the motion carried.
D. NEW BUSINESS
1. Executor's request to release forgivable mortgage on property at 324 Butler Avenue—Maybry,
deceased owner.
Chairman Johnson reviewed the request to release the forgivable loan for Martha Maybry and noted there
is not enough information provided, whether an estate has been opened,who the heirs are and what is the
balance owed on this loan. The Chairman suggested this item be tabled for more information.
Minutes
June 19, 2007
Page 3
It was moved by Mickye Johnson and seconded by Larry Oltrogge to table action on this request
until further information has been received. Motion carried.
2. Subordination Request from Veridian Credit Union on forgivable loan at 1626 Franklin—
Stickley, Owner.
Chairman Johnson reviewed the request from Veridian to subordinate the forgivable mortgage at 1626
Franklin for Ben and Martha Stickley. We are approximately three years into the forgivable loan. The
owners wish to pay off their first mortgage with Community National Bank and use additional cash to
purchase a motor home.
Following discussion it was moved by Mickye Johnson and seconded by Jim Carstensen to deny the
request for subordination, due to cash out for the motor home.
On roll call: Jim Carstensen, Elsie Duncan,Mickye Johnson,Larry Oltrogge and Eric Johnson
voted Aye. Nays: None. The Chairman declared the motion carried and the request is denied.
3. Prioritizing lead poisoned cases referred by Black Hawk County Health Department.
Mark Boesen, Manager of Rehabilitation Services, indicated we are targeting 70% of our rehabilitation
funds in the Brownfields area and 30%city-wide. Although we no longer have funds from the lead grant,
we request making those households with children who have elevated blood levels a priority.
Rudy Jones indicated there were no substantial number of referrals from the county,but we would like to
make any received a priority.
It was moved by Mickye Johnson and seconded by Elsie Duncan to authorize staff to prioritize lead
poisoned cases that are referred by the Black Hawk County Health Department. Motion carried
unanimously.
4. Discuss Mortgage on EDI Agreement for Tech works Project.
Rudy Jones indicated this is a large Economic Development Grant for the Cedar Valley TechWorks
project. The Board, in previous meetings, discussed mortgages on large projects. Recent meetings
were held with TechWorks representatives and they are comfortable with placing a mortgage on their
project for 15 years. Staff will be monitoring the project during this time frame.
Community Development staff will be administering this grant with approximately $46,000 in
administrative budget costs.
5. Endorse Rehabilitation Contracts for May 2007.
Chairman Johnson asked the Board to review the spreadsheet for May. (See copy attached.)
Mark Boesen indicated a number of projects are ready to release after July 1st, once new funding is
available and there are approximately 10 projects to finalize. Emergency Repair projects are also being
scheduled and processed, pending new funding.
Minutes
June 19,2007
Page 4
Mickye Johnson requested more detailed information to give a better picture of the need. Mark Boesen
indicated the report can be revised to indicate the number of projects in progress.
It was moved by Larry Oltrogge and seconded by Mickye Johnson to endorse the May 2007
Rehabilitation Contracts as presented.
On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge and Eric Johnson
voted Aye. Nays: None. The Chairman declared the motion carried.
6. Confirm City Attorney opinion on Down Payment participation at 723 Denver Street.
Rudy Jones indicated there was a perceived conflict of interest on one of the down payment assistance
cases through the Waterloo Housing Partnership. This conflict involved Board Member, Larry Oltrogge.
City Attorney, Jim Walsh was notified and we were advised to obtain a written statement from Larry
Oltrogge and his associates that they would receive no compensation or remuneration from the sale of 723
Denver Street. This documentation was received and provided for Board review and the file.
Chairman Johnson inquired about the listing or whether Larry Oltrogge represented the buyer.
Larry Oltrogge indicated he did represent the buyer,who applied for down payment assistance funds.
Chairman Johnson stated Larry Oltrogge's involvement in the sale makes this a conflict of interest, due to
Larry's position on the Board.
The opinion from Attorney, Chris Wendland,was read by Chairman Johnson and the letters complying
with the attorney's request are on file from Larry Oltrogge and his broker, Michael Meaney.
It was moved by Elsie Duncan and seconded by Mickye Johnson to approve the opinion of the City
Attorney as presented.
On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson and Eric Johnson voted Aye. Nays:
None. Abstain: Larry Oltrogge. The Chairman declared the motion carried.
F. DISCUSSION ITEMS: None.
G. ADJOURN MEETING:
With no further business to come before the Board,the Chairman adjourned the meeting.
Respectfully submitted,
Elsie Duncan, Secretary
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MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
May 15, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday,May 15,2007.
Members present: Larry Oltrogge, Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson,
Chairperson.
Members absent: Elsie Duncan and Jim Carstensen.
Also present: Rudy Jones, Community Development Director; Don Temeyer, Community Planning &
Development Director; Ann Northey, Administrative Secretary; and interested citizens.
A. APPROVAL OF THE AGENDA.
It was moved by Mickye Johnson and seconded by Larry Oltrogge to approve the agenda as
proposed. Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON APRIL 17,2007.
It was moved by Larry Oltrogge and seconded by Mickye Johnson to approve the minutes of the
regular meeting on April 17,2007. Motion carried.
C. PUBLIC HEARING: AMENDMENT FOR THE FIVE-YEAR CONSOLIDATED PLAN
(FY2005-FY2009)AND FY2007 ONE-YEAR ACTION PLAN.
Chairman Johnson announced the public hearing for an amendment to the five-year consolidated plan and
FY2007 One-year Action Plan.
It was moved by Mickye Johnson and seconded by Larry Oltrogge to receive and place on file the
affidavit for proof of publication for Notice of Public Hearing as published in the Waterloo/Cedar
Falls Courier on April 29,2007. Motion carried.
It was moved by Mickye Johnson and seconded by Larry Oltrogge to open the public hearing.
Motion carried.
Chairman Johnson requested a staff update on the hearing process.
Rudy Jones explained the amendment of the five-year consolidated plan was necessary in order to adopt
some new regulatory provisions. The amendment to the FY2007 One-Year Action Plan is to 1)transfer
$50,000 of CDBG funds from Christian Community Development House of Hope to the Emergency
Repair Program; and 2)transfer $50,000 of HOME funds from Cedar Valley Restoration and
Minutes
May 15, 2007
Page 2
Development new construction and $77,000 of HOME funds from Unprogrammed to Single Family
Rehabilitation(total of$127,000).
Chairman Johnson indicated these items were reviewed last month and approved,however the public
hearing is necessary to reallocate the funds.
No public input was received.
It was moved by Mickye Johnson and seconded by Bernie Stroh to close the public hearing. Motion
carried.
It was moved by Mickye Johnson and seconded by Gary Rankin to adopt the proposed Amendment
to the Five-Year Consolidated Plan (FY2005-FY2009) and FY2007 One-Year Action Plan.
On roll call: Bernie Stroh, Gary Rankin,Larry Oltrogge,Mickye Johnson and Eric Johnson. The
Chairman declared the motion carried.
D. OLD BUSINESS.
1. Shelter Construction and request from Betty Seamans for developer fee on new construction.
Chairman Johnson reviewed the request from Betty Seamans for an additional $10,000 in funds to aid in
the sale of the property at 430 Quincy Street. This item was tabled at the last meeting to determine
whether the $10,000 already expended on the project was utilized for construction costs.
Staff advised that Payment No. 1 - $7,500 was for plumbing costs with Jackson Plumbing and Payment
No. 2 - $2,500 was for kitchen cabinets and countertop with Imperial Design Cabinetry.
Chairman Johnson indicated this house has already benefited from$10,000 worth of funds.
Bernie Stroh stated in lieu of the fact the money has already been spent on this project, he would
move to deny the request from Mrs.Betty Seamans for an additional$10,000 toward this project.
Motion seconded by Mickye Johnson.
Ayes: Mickye Johnson,Bernie Stroh, Gary Rankin and Eric Johnson. Abstain: Larry Oltrogge.
The Chairman declared the motion carried.
2. Re-affirm Board poll on CDBG match commitment for the Lead Grant application.
The Chairman reviewed a memorandum submitted by Nancy Gulick concerning match dollars for the
Lead Grant application. Nancy's letter stated a letter was prepared for the Application with Eric
Johnson's signature showing a match of 2 percent of Rudy Jones' time ($4,568), health insurance for the
rehab staff($173,649), and lead remediation for 96 units ($384,000) for a total CDBG match of$562,217
for the three years.
Minutes
May 15, 2007
Page 3
Following discussion it was moved by Bernie Stroh and seconded by Mickye Johnson to approve the
match commitment as proposed.
On roll call: Mickye Johnson, Larry Oltrogge, Gary Rankin, Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
E. NEW BUSINESS
1. Waterloo Housing Partnership Loan No. 418WHP—Death of Recipient.
Chairman Johnson reviewed the request from Michelle Christensen concerning a home purchased by her
son, Andrew Pearce at 711 Burton Avenue as a first time homebuyer. Andrew died unexpectedly after a
brief illness and the house is being sold. The family is asking that the forgivable loan be released or
forgiven.
Chairman Johnson stated Veridian Credit Union is in first loan position and we are in second position
with the down payment assistance forgivable loan. The family has turned the house back to Veridian,
however they cannot accept the deed unless the Board releases our mortgage on the property.
Following considerable discussion on a possible foreclosure, it was the consensus to allow the property to
revert back to Veridian to complete their foreclosure and the Board will be scraped off.
Bernie Stroh agreed and suggested the family should be reassured they have no liability in this property
and Veridian will handle the matter.
Chairman Johnson addressed the family and indicated our forgivable mortgage will be attached to the
property, second to Veridian and we understand there will be no funds returned to us. Veridian will have
to open up the estate and pay the costs,or they will do a foreclosure procedure just to clear the title and
get it back in their name. We will not pursue any liability from the family.
2. Endorse Rehabilitation Contracts for April 2007.
Chairman Johnson asked the Board to review the spreadsheet for April. (See copy attached.)
It was moved by Bernie Stroh and seconded by Mickye Johnson to endorse the April 2007
Rehabilitation Contracts.
On roll call: Mickye Johnson,Larry Oltrogge, Gary Rankin, Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
Board members questioned the balance of funding for rehabilitation projects. Rudy Jones indicated we
are currently out of funds to enter into new contracts, but there are a number of contracts still under way.
We are conducting meetings with the Council and administration for the use of GO Bond funds for single
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family rehabilitation. It is possible that we may be able to utilize some HOME funds for rehabilitation.
Minutes
May 15, 2007
Page 4
3. Colonial Apartments Funding.
Chairman Johnson indicated the Colonial Apartments received IDED funds for improvements to the
apartment building.
Rudy Jones indicated the allocation from the state requires a 10%match or $69,000. Colonial
Apartments applied for CDBG funding,but they were not considered, due to time constraints with the
state's funding cycle. HOME dollars could have been considered, however, for the amount being
utilized, it is not worth the reporting hassle. LHAP funds are available and qualify as eligible funds for
the project. Rudy noted, if these sources are utilized,we will be responsible for some level of
Administration on the project.
Rudy Jones indicated the project is located at 801 West 4th Street and there are 25 one and two bedroom
units.
Larry Oltrogge questioned the issue of lead abatement, due to the fact Waterloo ranks high in lead
poisoned children. Rudy Jones indicated there will have to be an HQS Inspection process on this
property.
Following further discussion it was moved by Gary Rankin and seconded by Larry Oltrogge to
provide$70,000 in LHAP funds toward the project in the form of a 10-year,no interest loan. This
action would provide good leverage for other development.
On roll call: Bernie Stroh, Gary Rankin,Larry Oltrogge,Mickye Johnson and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
4. Subordination request from Veridian Credit Union on down payment assistance forgivable loan
at 1031 Independence Avenue—Chamberlin, Owner.
The Chairman reviewed the request from Veridian Credit Union on the forgivable loan for Stephanie
Chamberlin of 1031 Independence Avenue. Loan proceeds in the amount of$57,529.15 are for home
improvements to the property.
It was moved by Bernie Stroh and seconded by Larry Oltrogge to approve the subordination
request.
On roll call: Mickye Johnson,Larry Oltrogge, Gary Rankin,Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
5. Subordination request from Citi Financial on forgivable loan at 108 E. Parker Street, Gamblin,
Owner.
The Chairman reviewed the subordination request from Citi Financial for Michelle and Perry Gamblin of
108 E. Parker Street. The owner is requesting the loan to pay off a delinquent mortgage and purchase a
vehicle.
Minutes
May 15, 2007
Page 5
Following discussion, it was moved by Bernie Stroh and seconded by Larry Oltrogge to deny the
request for subordination.
On roll call: Bernie Stroh, Gary Rankin,Larry Oltrogge,Mickye Johnson and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
F. DISCUSSION ITEMS: None.
G. ADJOURN MEETING:
With no further business to come before the Board,the Chairman adjourned the meeting.
Respectfully submitted,
Rudy D. Jones, Secretary Pro-Tern
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MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
April 17, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday, April 17, 2007.
Members present: Jim Carstensen, Larry Oltrogge, Mickye Johnson, Gary Rankin, Bernie Stroh and
Eric Johnson, Chairperson.
Members absent: Elsie Duncan.
Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development
Coordinator; Don Temeyer, Community Planning &Development Director; Donna Lesyshen, Waterloo
Housing Partnership Coordinator; Mark Boesen, Manager of Rehabilitation Services,Ann Northey,
Administrative Secretary; Betty Seamans, Bob Hummel and Dawn Ferrie.
A. APPROVAL OF THE AGENDA.
It was moved by Larry Oltrogge and seconded by Mickye Johnson to approve the agenda as
proposed. Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON MARCH 20,2007.
It was moved by Mickye Johnson and seconded by Larry Oltrogge to approve the minutes of the
regular meeting on March 20,2007. Motion carried.
C. OLD BUSINESS.
1. HOME and CDBG Affordability Period for Owner Occupied Rehabilitation.
Mickye Johnson indicated the Board was informed that the affordability period for all HOME projects
must be 10 years. Nancy Gulick responded that after a thorough review of the HUD regulations, she
discovered there is no affordability period required for owner occupied rehabilitation projects utilizing
HOME funds.
A motion was made by Mickye Johnson to move the forgivable period back to five years to be
consistent with the CDBG forgivable loans.
Gary Rankin suggested if we had homeowner participation financially, some of the monies could be paid
back, then possibly a ten year mortgage should be attached to those projects to spread out the payments
for the homeowner.
Larry Oltrogge agreed, if there is owner participation,then use the 10 year forgivable,
rgivable, but we should be
consistent and make all forgivables 10 years.
Minutes
April 17, 2007
Page 2
Rudy Jones indicated in the subcommittee discussions,the very low-income homeowners would benefit
from the complete grant, and those with higher incomes would participate in the 10-year forgivable and
pay a portion of the loan back.
Mickye Johnson indicated he would like to move back to a five-year forgivable loan. Once the
subcommittee has a plan of action to move toward repayment,then the term can revisited at that time.
Larry Oltrogge stated with the shrinking dollars we are receiving from HUD, we need to move toward
getting more dollars to work with on these project. If that means participation from the homeowners, then
we must be consistent with everyone and say it is a 10-year program.
Bernie Stroh suggested to curb the subordination requests, if the Board had hard and fast rules on not
subordinating for consumer debt, and other items,we would eliminate most of these requests.
Chairman Johnson stated there are no repayment programs at this time. Many old loans from the past
have been difficult to collect. Chairman Johnson indicated he approved going back to the five year
forgivable,until we have a plan in place for creating a loan program. The Chairman noted getting
participation from the homeowners would be desired, but getting back into lending and the problems
associated with collectability is a concern.
Larry Oltrogge expressed concern over the proposed Mayoral recommendation for the CDBG budget
where yet another $100,000 has been cut from the Rehabilitation line item. This will be the lowest point
of single-family rehabilitation we have ever been. We must require participation to keep the program
viable.
Chairman Johnson indicated this item would be discussed toward the end of the agenda.
Mickye Johnson indicated his motion was to move back to the five-year requirement on HOME and
CDBG forgivable loans. Motion seconded by Gary Rankin.
On roll call: Jim Carstensen,Mickye Johnson, Gary Rankin and Eric Johnson voted Aye. Nays:
Bernie Stroh and Larry Oltrogge. The Chairman declared the motion carried.
2. Cost Sharing on Single Family Rehabilitation Projects.
Rudy Jones indicated discussion has evolved with local lenders to review their programs. We wish to
dialogue with the Board to structure this change in the rehabilitation program. Some questions would be
the type of interest rate for the loans,maximum monthly payments, 50%vs. 80% eligibility, and
combination grant/loans depending upon income, minimum grant amounts, collections and whether we
will provide these services in-house, etc.
Chairman Johnson recalled other discussions about the delinquent loans we still have on file. It has not
been the practice of the Board to foreclose on people's houses and we do not have the skill or the
manpower to be a collection service. Chairman Johnson noted leveraging of the funds we receive would
be beneficial to the program, but do we want to be making the loans? Perhaps by going to another
Minutes
April 17, 2007
Page 3
financial institution and borrowing the funds to match our block grant dollars would assist the
homeowner, and leverage the dollars we have available. Collection will then be up to the lenders.
Bernie Stroh suggested treating these loans as an assessment, similar to the sidewalk program.
Rudy Jones indicated we currently utilize homeowner funds in our Emergency Repair Program when the
project goes over our dollar limit. The owner must provide the additional funds to complete the project.
Mickye Johnson indicated there is still much to be discussed with the lenders and suggested tabling
action pending further direction from the Rehabilitation Subcommittee.
Rudy Jones reviewed for clarification that the loans should be handled through a financial institution to
take the collection burden off of staff.
Chairman Johnson suggested the model used for Emergency Repairs would apply. If you set an income
level and the project goes over that amount, and the homeowner has ability to participate at a certain
percentage,then they must provide a portion of the cost. Part of the reason for this is because our
allocations are dwindling. We will be able to reach more households if they participate in the cost. How
they provide the funds, whether from a friend,neighbor, or someone from our list of financial partners,
they will be investing in their property with a home equity loan. We can subordinate our forgivable
mortgage to the lender at this point.
Chairman Johnson noted this item would be tabled until more information is received from the
subcommittee.
3. Re-allocate$50,000 of HOME funds from Cedar Valley Restoration and Development to Single-
Family Rehabilitation Program.
Chairman Johnson indicated these funds were recaptured from Cedar Valley Restoration and
Development and staff is requesting they be reallocated to the Single-Family Rehabilitation line item.
Gary Rankin inquired about the rehabilitation program balance and Mark Boesen indicated the funds are
98% committed and will be utilized before the end of May.
It was moved by Jim Carstensen and seconded by Mickye Johnson to approve the reallocation of
HOME funds in the amount of$50,000 from Cedar Valley Restoration and Development to Single-
Family Rehabilitation.
On roll call: Jim Carstensen,Mickye Johnson,Larry Oltrogge, Gary Rankin, Bernie Stroh and
Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried.
4. Request from Betty Seamans for developer fee on new construction.
Chairman Johnson indicated this request concerns the Greg Glidewell/Shelter Construction new
construction project that was awarded $10,000 to develop the lot. It was discovered that Mr. Glidewell
did not own the property.
Minutes
April 17, 2007
Page 4
Rudy Jones indicated the city attorney filed suit against Glidewell Enterprises. Rudy indicated we do not
foresee these funds being returned. This request from Ms. Seamans is to put another$10,000 into the
project as a developer incentive, which in essence would put$20,000 into the project.
Betty Seamans referred to a letter dated April 12, 2007 sent to the Board. Ms. Seamans indicated that she
and her partner, Robert Hummel own the lot at 430 Quincy Street and hired contractor Greg Glidewell to
build the house utilizing the $10,000 developer incentive. Ms. Seamans now has a buyer, Carl
Culpepper, for the property and without the $10,000 award, they will not be able to offer this property at
an affordable price.
Rudy Jones indicated $10,000 was awarded to Greg Glidewell to construct one unit on this property. Mr.
Glidewell represented himself as the owner of the property, which has created the problem.
Ms. Seamans indicated she paid Greg Glidewell approximately $125,000.00 and secured a loan at
MidwestOne Bank. Some of the subcontractors were not paid. This price did not include the $10,000
awarded by the city.
Chairman Johnson asked if we knew what the $10,000 was used for and Rudy indicated the money went
to Mr. Glidewell for construction of the dwelling. Nancy Gulick stated a receipt for the work is in the
file.
Chairman Johnson indicated Ms. Seamans benefited from the $10,000 on items we paid for on the
property.
Bernie Stroh indicated there are too many unresolved issues. We did pay$10,000 for this project already
and we need a report from staff what was paid.
Rudy Jones indicated that Chris Wendland, attorney, suggested garnishment. Bernie Stroh indicated we
will not get anything now unless we do. The question is there $10,000 worth of benefit from the funds
paid to Mr. Glidewell?
Rudy indicated when the request for payment came through the work was performed.
Larry Oltrogge indicated Mr. Glidewell received the funds upon false pretenses as the owner of the
property.
Chairman Johnson indicated a judgment has been filed against Mr. Glidewell to recoup the funds. Was
there a mortgage filed against the property?
Rudy indicated no mortgage has been filed and the funds were awarded before the project was finished.
No occupancy permit has been issued and Ms. Seamans indicated there still is some work to be done, and
another contractor has to complete the project.
i
Minutes
April 17,2007
Page 5
It was suggested by Bernie Stroh to table discussion and he directed staff to report where the $10,000
funds were spent.
Chairman Johnson questioned whether Glidewell got paid $10,000 from us and then charged her the
$10,000 for work on the project, or whether she was credited that amount. Is it within our authority to
award an additional $10,000 since we originally did a request for proposals for these funds.
Mickye Johnson asked for an explanation from Rudy as the $10,000 was already awarded toward this
house,therefore we cannot add more funds into the same property.
Rudy indicated the $10,000 has already been reported on the IDIS financial system with HUD, even
though it was under false pretenses, it will be difficult to put an additional $10,000 into the same project.
Following discussion it was moved by Bernie Stroh to table action until additional information is
received, i.e.where the money was spent,what attachable assets Glidewell has available and
guidance from HUD in putting additional funds toward the project.
Further discussion occurred with Ms. Seamans concerning the developer agreement she had with Mr.
Glidewell. A finished product was to be furnished,with all mechanicals completed, stove, refrigerator,
dishwasher, carpeting, etc. for a complete price tag of$85,000. However, she ended up paying $125,000
to Glidewell.
Chairman Johnson indicated additional information has been requested by Bernie Stroh so we will
table this item until the next meeting.
NEW BUSINESS:
1. Request from Veridian Credit Union to subordinate forgivable loan at 1117 West 6th Street—
Ferrie, Owner.
Chairman Johnson reviewed the request to subordination the forgivable loan at 1117 West 6th Street,
Dawn Ferrie, Owner. The request is for home improvements to the property and bids were reviewed.
The furnace has already been installed.
Chairman Johnson inquired if these home improvements will be monitored? Rudy Jones indicated a
member of the rehabilitation staff inspects the property, before and after the work is done and the
homeowner is required to provide receipts totaling the amount requested.
Chairman Johnson also noted the Board is in 3rd position, with Operation Threshold also holding a
mortgage on the property. Donna Lesyshen indicated, if the Community Development Board
subordinates a loan,then Operation Threshold also will subordinate their position.
Following discussion, it was moved by Larry Oltrogge and seconded by Gary Rankin to approve
the subordination request from Veridian Credit Union for the property at 1117 West 6th Street
owned by Dawn Ferrie.
Minutes
April 17, 2007
Page 6
On roll call: Jim Carstensen,Mickye Johnson,Larry Oltrogge, Gary Rankin, Bernie Stroh and
Eric Johnson voted Aye. Bernie Stroh indicated a 2" bid should have been turned in for the
furnace improvement. Nays: None. The Chairman declared the motion carried.
2. Endorse Rehabilitation Contracts for March 2007.
Chairman Johnson asked the Board to review the spreadsheet for March. (See copy attached.)
It was moved by Gary Rankin and seconded by Larry Oltrogge to endorse the March 2007
Rehabilitation Contracts.
On roll call: Jim Carstensen, Mickye Johnson,Larry Oltrogge, Gary Rankin,Bernie Stroh and
Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried.
3. Targeting the Residential Rehabilitation Waiting List.
Rudy Jones indicated it's been several years since a formal Board approved target area has been selected.
We are asking to remain in the Rath Brownfield's area and modify the ratio to pick up other projects
citywide. Historically, it has been 80% in the target area and 20% city-wide. When the lead grant came
in we changed those numbers,but we want to pick up some older names that have been on the waiting list
for quite a while. Rudy noted, if we are awarded the new lead grant, these percentages will need to
change again.
Mark Boesen asked to utilize Rehabilitation funds with 70% in the target area and 30% citywide .
It was moved by Bernie Stroh and seconded by Jim Carstensen to target 70% of the Rehabilitation
funding toward the Rath Brownfields Area and 30% citywide.
Mickye Johnson questioned the percentages given to target areas,until all work was accomplished in that
area, then the percentage would decrease and another area would be selected.
Mark Boesen noted because of the lead grant,we were working 100%citywide to address homes with
children under the age of six. He noted additional Economic Development Initiative funds have been
applied for to complement efforts in this area.
Rudy Jones indicated, when we were in the Unity/WeCare Neighborhood that is how the percentages
worked, but once we got into the Rath Brownfields area,this was a whole different area.
Bernie Stroh indicated, these figures were diluted because of the lead grant going out citywide in order to
combine funds with the rehabilitation projects not in the target area.
Mickye Johnson asked if we met the need or decreased the need in the Unity/We Care Neighborhood?
Rudy Jones stated additional strings of funding gives us more dollars to spend outside that area. There are
some EDI funds available to spend in this area. Our representatives in Washington may help us to secure
additional funding. BEDI/Section 108 funds will be available for the Brownfields area.
Minutes
April 17,2007
Page 7
Mark Boesen indicated we have closely met the needs of the areas targeted in the past as we moved along
and decreased funding to move to another neighborhood. Some homes may pop up that need assistance,
and they will be put on the waiting list, but overall we have met the needs in former target areas.
Chairman Johnson called for a vote on the motion to target 70/30 funding with Rehabilitation
Dollars. Six Ayes and the motion carried.
4. Decrease Down Payment Assistance from 7% to 5%, not to exceed $5,000.
Rudy Jones indicated discussion at a lenders meeting several months ago centered around funding for
down payment assistance, as each year funds are depleted before fiscal year ends. The lenders wanted to
come up with a way to extend the funding out for 12 months and this would be one way to accomplish
that goal. They also discussed increasing the amount of HOME funds for down payment program.
Donna Lesyshen indicated the lenders were concerned with funding. This year we are down 10 closings
and down 16 closings from the year before. Money-wise, we still have about $80,000 in the program.
We are in better shape this year, because of fewer closings and applications, but the purchase price of the
homes are up and the average cost of down payment assistance is up. Since the price of homes has gone
higher,people cannot afford them. Donna stated she is torn with the idea of reducing the percentage.
This will reduce the average down payment assistance by about $1,000 per person. This year is unusually
slow for the program.
Mickye Johnson suggested approving the percentage reduction to spread out the resources. Bernie Stroh
stated if the interest is not there,perhaps these funds should be moved to the Rehabilitation line item.
Larry Oltrogge reviewed the Down Payment Assistance report through March 2007. $128,594.00 in
down payment assistance has been expended. This amounts to 28 closings or an average of$4,600 per
closing. If we reduce it to get down to 5%, that means our down payment assistance would then become
an average of$3,215.00. With the Mayor's proposal in dollars and utilizing this percentage, we will need
to have 70+buyers, and this becomes an impossible target to reach. The low-moderate income people
that need our assistance the most will be hurt by this reduction. What will be gained, as less people will
be applying, so the program will be defeated.
Jim Carstensen indicated that EMA down payment assistance has declined this year also.
Mickye Johnson indicated it appears we need to reassess the program or do a better job of marketing it to
the public.
Discussion on the current loan products continued. Chairman Johnson inquired who initiated this
request. Rudy stated it came from the lenders meeting, as funding is declining each year and this might
be a way to stretch the dollars.
It was moved by Bernie Stroh to deny the request to lower the percentage to 5% on the Down
Payment Assistance forgivable loans and leave the percentage at the present 7% limit, not to exceed
$5,000. The motion was seconded by Jim Carstensen.
Minutes
April 17,2007
Page 8
On roll call: Bernie Stroh, Larry Oltrogge, Mickye Johnson,Jim Carstensen and Eric Johnson
voted Aye. Nays: Gary Rankin.
5. Set date of Public Hearing for May 15,2007 to Amend the Five-Year Consolidated Plan and
One-Year Action Plan.
Nancy Gulick explained a public hearing is necessary to amend the Five-Year Consolidated Plan and
One-Year Action Plan in order to reallocate $50,000 of CDBG funds from Christian Community
Development House of Hope to Emergency Repairs and transfer $50,000 of HOME funds from Cedar
Valley Restoration and Development new construction and $77,000 of HOME funds from
Unprogrammed to Single Family Rehabilitation. There is also an amendment that the HUD office
requires a verbiage change in the FY06 One-Year Action Plan.
It was moved by Mickye Johnson and seconded by Larry Oltrogge to set the date of May 15,2007
for the public hearing. Motion carried.
DISCUSSION ITEMS:
Chairman Johnson indicated a two-year grant might be awarded to the city from the EPA for lead-based
paint removal.
Chairman Johnson reviewed the CDBG/HOME Program budget recommendations that will be going to
the City Council. The public hearing will be on April 23, 2007 at 5:30 p.m.
Don Temeyer indicated there should be carry-over balances available to put into rehabilitation and
possibly some HOME fund balances for that purpose.
Larry Oltrogge questioned the dollar amounts listed and Nancy Gulick noted the Mayor's
Recommendation is the actual dollar amount that will be our allocation,plus program income.
Responding to a question from Gary Rankin,Rudy Jones noted no funds will be set aside this year for
new construction, due to the lack of interest in our present projects. The Mayor is forming a coalition of
individuals with lenders and realtors to find out what needs to happen to spur on the sale of new
construction homes.
Don Temeyer indicated the city will be receiving a$150,000 Iowa Development Grant to demolish the
Rath Administration Building. Don estimated the cost could be around one million to clear the site.
ADJOURN MEETING:
With no further business to come before the Board,the Chairman adjourned the meeting.
Respectfully submitted,
Rudy D. Jones, Secretary Pro-Tern
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MINUTES -
COMMUNITY DEVELOPMENT BOARD MEETING
March 20, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m. on
Tuesday,March 20, 2007.
Members present: Elsie Duncan,Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson,
Chairperson.
Members absent: Jim Carstensen and Larry Oltrogge.
Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development
Coordinator; Don Temeyer, Community Planning&Development Director; Donna Lesyshen, Waterloo
Housing Partnership Coordinator; and Ann Northey,Administrative Secretary.
A. APPROVAL OF THE AGENDA.
It was moved by Bernie Stroh and seconded by Elsie Duncan to approve the agenda as proposed.
Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING AND THE PUBLIC
HEARING ON FEBRUARY 20,2007.
It was moved by Gary Rankin and seconded by Elsie Duncan to approve the minutes of the regular
meeting and the public hearing held on February 20, 2007. Motion carried.
C. OLD BUSINESS.
1. Rehabilitation Subcommittee Report on use of recaptured HOME funds.
Rudy Jones indicated the Rehabilitation Subcommittee met to discuss the use of recaptured HOME funds.
In light of decreasing CDBG dollars and winding down our lead grant program, we would like to utilize
recaptured HOME dollars for the Rehabilitation Program. The following recommendations are being
brought to the Board:
1. All CDBG and HOME rehabilitated housing units will have a ten(10) year mortgage recorded on
the property.
2. During years 1-8, subordination will be approved to refinance the property for a lower interest rate
or home improvements only.
3. Re-allocate $77,000 from HOME unprogrammed(was for new construction developers)to single-
family rehabilitation.
4. Re-allocate $50,000 from HOME funds for Cedar Valley Restoration and Development to single-
family rehabilitation, if needed before July 1, 2007.
Minutes
March 20, 2007
Page 2
Rudy Jones indicated the number of rehabilitation projects would decrease, if we do not transfer these
HOME dollars.
Chairman Johnson indicated there are several components to the subcommittee's recommendation. The
financial component to reallocate funds and a procedural recommendation to secure mortgages and the
time frame for release. The Rehabilitation Subcommittee members are Larry Oltrogge, Mickye Johnson
and Bernie Stroh.
Chairman Johnson indicated with CDBG and HOME rehabilitation of housing units,we will now hold a
10-year mortgage on the project. Chairman Johnson inquired if this would just apply to housing units or
to any funds given, i.e. St. Mary's Villa.
Rudy Jones stated when utilizing the HOME dollars there is a minimum amount that initiates the
affordability, so that is why we have a minimum of 10 years.
Bernie Stroh indicated the subcommittee's intent was to make this stipulation apply to all funding awards,
not just rehabilitation.
Nancy Gulick noted at the last Board meeting it was suggested to follow the HOME guidelines, which is
five years for less than $15,000 and ten years for$15,000-$40,000. This will only apply to housing
units, but Public Facilities such as Pathways,will receive $5,000 for furnace replacement this year and a
five-year mortgage would apply. These are the current HOME guidelines and it goes up to 15 years for
funds over$40,000.
Chairman Johnson confirmed there was a schedule to forgive 10% of the loan each year.
Mickye Johnson also noted subordinations would not be approved within year 1-8 of the loan period,
unless it is for a better interest rate or home improvements.
Some discussion began among Board members on the terminology for releasing mortgages upon death of
the homeowner. A policy is currently in place to release the mortgage upon request of the heirs, or allow
a family member to reside in the property until the mortgage period expires, however,this was to be on a
case by case basis. Board members questioned the wording noted in the Question and Answer section of
the Residential Rehabilitation Guidelines booklet. Mickye Johnson and Bernie Stroh both indicated this is
not what the Board adopted.
Chairman Johnson indicated since this is not the policy,then these words need to be stricken from the
document, or indicate the loan"may be forgiven" in the event of the owners death at the discretion of the
Community Development Board,therefore, not specifically indicating yes or no.
Chairman Johnson indicated approval was necessary to incorporate the first two recommendations into
our policy and procedures.
It was moved by Bernie Stroh and seconded by Gary Rankin to approve recommendations 1 and 2
from the subcommittee:
Minutes
March 20, 2007
Page 3
1. All CDBG and HOME rehabilitated housing units will have a ten (10)year mortgage
recorded on the property.
2. During years 1-8,subordination will be approved to refinance the property for a lower
interest rate or home improvements only.
Roll call: Elsie Duncan, Gary Rankin, Mickye Johnson,Bernie Stroh and Eric Johnson voted Aye.
Nays: None. The Chairman declared the motion carried.
Chairman Johnson indicated Items 3 and 4 deals with the reallocation of HOME funds in the amount of
$77,000 from Unprogrammed Funds set aside for new construction, and $50,000 recaptured funds from
Cedar Valley Restoration and Development. These funds will now be reprogrammed into the Single-
Family Rehabilitation line item. The Chairman questioned the use of HOME funds for single-family
rehabilitation.
Nancy Gulick indicated we only wish to reallocate the $77,000 at this time into the single-family
rehabilitation line item before year-end, and then reallocate the $50,000 later if needed for rehabilitation
projects.
Chairman Johnson asked if other builders were available to utilize these HOME funds?
Rudy Jones indicated that John Rooff had requested additional funding through our annual allocation
process. Lenders requested additional dollars be placed in the Down Payment Assistance Program. We
will be putting out Requests for Proposals for New Construction in the next 30-60 days and we believe
there might be interest. The need for down payment assistance is on-going and we typically run out of
funds in this program. New construction has not been as aggressive as we had hoped.
Following discussion it was moved by Elsie Duncan and seconded by Bernie Stroh to reallocate
$77,000 from HOME Unprogrammed Funds to Single-Family Rehabilitation.
Gary Rankin inquired about any discussion on cost sharing for the single-family rehabilitation program.
Rudy Jones indicated this still needs to be determined and could be an agenda item for the next meeting.
Rudy noted he has met with some lenders and final details need to be worked out.
Discussion continued on the new construction properties,marketing these houses and planning housing
fairs to inform the public. Rudy noted Donna Lesyshen has been working with Michelle Temeyer to
partner with the schools by utilizing the down payment program as a teacher-recruiting tool.
On roll call: Elsie Duncan,Mickye Johnson, Gary Rankin, Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
Chairman Johnson indicated he received an email about the CDBG and HOME funding levels and asked
for an explanation. Nancy Gulick responded that our FY08 allocation includes more CDBG funding than
last year and less HOME dollars.
Minutes
March 20, 2007
Page 4
NEW BUSINESS:
1. Request from AAC Home Services to subordinate forgivable loan at 417 Oaklawn Avenue—
Palmer, Owners.
Chairman Johnson reviewed the request to subordination the forgivable loan at 417 Oaklawn,by owner,
Edward J. Palmer. The request is to consolidate consumer debt and to purchase a car.
Following discussion, it was moved by Bernie Stroh and seconded by Mickye Johnson to deny the
subordination request from AAC HOME Services.
On roll call: Bernie Stroh, Gary Rankin,Mickye Johnson,Elsie Duncan and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried and the request was denied.
2. Endorse Rehabilitation Contracts for February 2007.
Chairman Johnson indicated the spreadsheets indicate the majority of work this month is Emergency
Repairs. (See copy attached.)
It was moved by Mickye Johnson and seconded by Gary Rankin to endorse the February 2007
Rehabilitation Contracts.
On roll call: Elsie Duncan,Mickye Johnson,Gary Rankin,Bernie Stroh and Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
3. Reaffirm re-allocation of HOME funds in the amount of$77,000 from Unprogrammed to Single
Family Rehabilitation.
Chairman Johnson noted this was discussed and voted upon under old business.
4. Request authorization to apply for the Lead Based Paint Hazard Control Grant Program.
Nancy Gulick indicated she was beginning to work on the application for another Lead Grant,based on
the fact that several program changes were made to make it worth the effort to apply.
It was moved by Elsie Duncan and seconded by Mickye Johnson to authorize staff to apply for the
Lead Based Paint Hazard Control Grant.
Gary Rankin inquired if administrative dollars are identified and awarded with this grant. Nancy
indicated there is a 10% administration cap and 65%must go toward eliminating lead hazards and the
balance can be utilized for education, testing, etc. Rehab staff costs are considered program delivery and
not part of the 10% administration cap.
The Chairman called for a voice vote,five ayes. The Chairman declared the motion carried.
5. Notice of 2007 HOME Fund Award to Cedar Valley Colonial Apartments,LLC from the Iowa
Department of Economic Development.
Minutes
March 20, 2007
Page 5
Rudy Jones indicated Cedar Valley Colonial Apartments, LLC in the 800 block of West 4th Street, did
receive state funds for improvements to their building, contingent upon a local contribution. Rudy noted
he has been communicating with Dean Bass of Cedar Valley Colonial Apartments and Al Collett from the
Iowa Department of Economic Development for guidance on how we can contribute toward this project.
Funding does not need to come from HOME funds, but could be CDBG, TIF proceeds or general
revenue, so we are reviewing the possibilities. If we had more CDBG dollars this year we would have
considered funding the project from this source. The project will entail the rehabilitation of
approximately 24 units at the Cedar Valley Colonial Apartments.
Chairman Johnson inquired about the contribution amount. Rudy indicated it was $69,000. Rudy
indicated no action is required at this time,but wanted the Board aware of this project.
6. National Community Development Week 2007—April 9-15,2007.
Rudy informed the Board a proclamation will be presented by the Mayor, and we will try to get some
articles in the paper on our down payment assistance program.
DISCUSSION ITEMS:
Chairman Johnson asked for an update on the CDBG/HOME budget for FY2008 and the Mayor's view
on which projects to fund. Rudy indicated he hoped to meet with the Mayor to discuss these items before
going before the full council.
Chairman Johnson asked that the Mayor's proposal be forwarded to the Board as soon as it is available.
We will meet again before the Council approves the final submission of the budget.
Chairman Johnson indicated he received a comment letter from James Wilson, which states too much
money has been spent on administration costs for over 40 years.
ADJOURN MEETING:
With no further business to come before the Board, the Chairman adjourned the meeting.
Respectfully submitted,
Elsie Duncan, Secretary
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MINUTES
COMMUNITY DEVELOPMENT BOARD
PUBLIC HEARING
FOR CITIZEN INPUT
FY2008 CDBG and HOME PROGRAM
February 20,2007
Chairman Eric Johnson called the public hearing to order at 5:00 p.m. in the City Council
Chambers, 715 Mulberry Street, Waterloo, Iowa. The Chairman stated the purpose of the
hearing is to gain citizen input into the application process for FY2008 CDBG and HOME
Program funding. The Chairman welcomed participants to the meeting and stated the Board
will hold the hearing, then make a recommendation to the City Council following the 30-day
public comment period. The City Council has the ultimate responsibility to decide which
projects will be funded.
Board Members present: Jim Carstensen, Mickye Johnson, Larry Oltrogge, Gary Rankin,
Bernie Stroh and Chairman Eric Johnson.
Board Members absent: Elsie Duncan
Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community
Development Coordinator; Don Temeyer, Community Planning&Development Director; Mark
Boesen, Manager of Rehabilitation Services; Ann Northey, Administrative Secretary and
approximately 30 interested citizens.
A. APPROVAL OF AGENDA
It was moved by Mickye Johnson and seconded by Bernie Stroh to approve the agenda.
Motion carried.
B. RECEIVE AND PLACE ON FILE AFFIDAVIT FOR PROOF OF PUBLICATION
FOR NOTICE OF PUBLIC HEARING
Chairman Johnson indicated copies of the display ad for the notice of public hearing that was
published in the Waterloo/Cedar Falls Courier on February 11, 2007 were available for review.
It was moved by Jim Carstensen and seconded by Mickye Johnson to receive and place on
file the affidavit for the notice of public hearing published in the Waterloo Courier.
Motion carried.
C. OPEN PUBLIC HEARING
It was moved by Mickye Johnson and seconded by Larry Oltrogge to open the public
hearing. Motion carried.
Minutes
February 20, 2007
Page 2
Chairman Johnson requested that participants interested in addressing the Board step to the
microphone at the front of the room, stating both their name, and the name of their organization.
David Meeks, Executive Director of the Waterloo Human Rights Commission stated that the
Human Rights commissioners would be leaving the room as a vote of no confidence in the
Board's ability to allocate the funds. He stated the commission is disappointed in the Board's
decision not to fund their request, stating it is a travesty and a mistake. Mr. Meeks also spoke on
behalf of supporting the request from ElCentro Latioamericano.
Gina Cassis, Executive Director of El Centro Latioamericano Center, reviewed the importance of
their presence in the Latino community and distributed emails and correspondence in support of
their program. Ms. Cassis noted their request is for funding to help their clients obtain a home,
walk them through the application process, credit counseling and educating them throughout the
process. She explained the growing Latino population and the need for their services in the
community.
Lisa Munoz, Hawkeye Community College, spoke on behalf on El Centro's application for
funding and asked the Board why they were failing to assist the Latino community, when this
assistance is so desperately needed. She reminded the Board of the importance of diversity in
our community and encouraged them to support this request.
Ellen Laughlin, City Engineering Department, asked for additional consideration of their request
for CDBG funding to continue the 2nd phase of the sidewalk repair program to complete Zone 7
of the city. She distributed a letter from Eric Thorson, City Engineer estimating the cost of
repairs this year at$25,300.
Danita Gadson, Program Manager for ISED Ventures thanked the Board for funding received
last fiscal year and asked them to keep ISED in mind for any available funding. They provide
services to low-moderate income people and many people who are interested in buying homes in
the CURA area.
Mike Shubert, asked the Board to consider funding for the Cedar Valley Colonial Apartments.
Ruben Carrion, Hawkeye Community College, spoke on behalf of ElCentro. Mr. Carrion
indicated he has been in the community over 30 years and has seen the Latino community grow
and bring their families to Waterloo. ElCentro is vital for the community to survive and
develop. He urged the Board to reconsider funding for their request.
Dwight Webster also requested reconsideration of the El Centro application.
D. CLOSE PUBLIC HEARING
The Chairman called for additional comments from the public. No additional comments were
received.
• `
Minutes
February 20, 2007
Page 3
It was moved by Bernie Stroh and seconded by Mickye Johnson to close the public hearing.
Motion carried.
Chairperson Johnson stated the Board will now review the Subcommittee's recommendations
and recommend approval to the City Council, or make some changes to the funding levels and
send it to the City Council for approval.
Chairman Johnson distributed a spreadsheet of funding levels dating back to 1998. He noted
funding over the years have decreased by almost a million dollars. This is upsetting to the
community and the Board has a difficult job trying to allocate the reduced amounts. The
Chairman asked the audience to channel some of their comments for increased funding toward
the legislators in Washington.
The Chairman noted administrative costs are of concern in the various line items. We are
paying about 40%-50% to city employees?? He noted he cannot support funding this amount
of administrative cost. The Chairman also explained that staff has been asked to pick up other
duties to administer other city grants and suggested some of these costs should come from the
general fund and not the CDBG fund. The Chairman indicated he is opposed to the current
recommendation unless some administrative dollars are reduced. The City will need to decide if
they will fund some of the administrative costs out of their general budget.
Further discussion continued among the subcommittee members concerning the allocation and
percentage cuts that could take place. It was suggested the percentage cuts be reflected in the
FY08 allocations. Rudy Jones indicated there may be a 2-5%reduction in funds this year, as it
is a continuing resolution and we are adding a few more entitlement cities to the HUD budget.
Chairman Johnson suggested taking $140,000 off the administrative line items. He questioned
whether the Neighborhood Services position should be funded with city dollars instead of CDBG
dollars. The Rehablitation program is our premiere program and should receive the bulk of our
funding. All requests received have merit.
Jim Carstensen indicated El Centro has made a huge effort to make their voice heard and he
suggested some funding be given to their project.
Further discussion continued on the administrative budget. Nancy Gulick indicated three
positions were funded out of the lead grant and we are required to still perform lead remediation,
whether or not we have a lead grant.
Mickye Johnson indicated the staff still needs to be certified to deal with the lead based paint
issues. He noted, one program of greatest need is the Emergency Repair Program and he would
like to see additional dollars placed in that line item for furnaces, roofs and other emergency
repairs.
Minutes
February 20, 2007
Page 4
Chairman Johnson recommended taking Rehab Administration down $90,000 to $187,000. He
recommended General Program Administration be deducted $50,000 to $218,997 and the
Neighborhood Services should be absorbed into the General Administration.
The Chairman noted this would give us$140,000 to allocate $15,000 to Emergency Repairs,
$25,000 to ElCentro and$100,000 to the Rehabilitation Program. This is a suggestion to absorb
Neighborhood Services coming under the auspices of the Director. When funding is cut 25%
difficult choices sometimes need to be made and this is one consideration.
Gary Rankin asked how you would accomplish a$90,000 reduction in Rehab Administration.
Rudy Jones replied it sounds like it could be a person or two real quick. Rudy noted there is a
Rehab Manager,two specialists and a secretary or a person from somewhere else to continue to
fund this.
Rudy asked for direction in expected production in terms of the amount of funding allocated for
rehab with less staff. The Chairman stated this is not an easy decision.
Bernie Stroh suggested taking $5,000 from ElCentro and give to the Human Rights position.
The Chairman indicated this position is very important,however,the city should fund it from
their General Administration if they are in favor of the position. We are trying to keep our
adminsitative costs at 40%. We could pay for an engineer in the engineering department that
would work in the CURA area or a planner, but the funds are just not available.
Gary Rankin indicated the allocation for the City of Waterloo Community Planning&
Development Director was reduced from$30,000 to $10,000.
Mickye Johnson suggested $20,000 should be allocated to ElCentro and$15,000 to Black Hawk
Center for Independent Living (Ramps). The aging population makes this a growing need for
the community. Chairman Johnson indicated some of these ramps are recyclable. Rudy Jones
stated they do not recycle very quickly,however,the Renaissance Program also helps to build
handicap ramps.
Gary Rankin stated more funds in Single Family Rehabilitation is a good idea,but questioned
reducing staff.
Rudy Jones stated he would have difficulty making this work.
Chairman Johnson suggested eliminating the Neighborhood Services position and make it a sub-
component of someone else's position to provide $80,000,then take $30,000 from Rehab
Administration and $30,000 from General Administration,however, do we want to dictate how
Rudy runs his office?
Gary Rankin stated he hoped Neighborhood Services could continue, as reducing this position
was an issue a number of years ago when we had another large contingency of folks at a hearing
in support of this program. Gary noted the public comments we received in our subcommittee
Minutes
February 20, 2007
Page 5
notebook clearly spoke to the fact that clearance, demolition and neighborhood services were
programs the public supported.
Chairman Johnson noted nobody ever wants to eliminate programs, and new programs are
proposed, however,the funding does diminish, so we can only do the best we can do for the
community and make our recommendation to the City Council. Ultimately,the elected officials
who should have the final say will make those decisions.
Bernie Stroh indicated he would approve the recommendation Chairman Johnson proposed.
Mickye Johnson emphasized he would like to see some funding provided to the Black Hawk
Center for Independent Living and expressed concerns with eliminating the Neighborhood
Services program.
Chairman Johnson indicated he made different recommendations and he does not want to see the
program eliminated. Either the funding needs to come from somewhere else, or the
responsibility transferred to someone else already in the department.
Mickye Johnson stated the Neighborhood Services department is helping to organize the
community to move forward and develop change. If the money is not there, what is the
likelihood these services will remain available. Mickye agreed the administrative costs
presented a challenge for the subcommittee.
Jim Carstensen recommended some less drastic cuts by rounding General Program
Administration from $268,000 down to $250,000 and took Rehabilitation Administration from
$277,000 down to $250,000, that would be a savings of$46,000....giving $19,000 to ElCentro
and the balance to the Rehabilitation Program.
Chairman Johnson indicated the reduction of$140,000 could be a decision of the staff, as long as
it came out of the administration line items. These are difficult decisions, but as stewards of
these funds, it is our Board's fiduciary duty to get as much bang for the dollar as possible to get
money into the community to help those who need it.
Larry Oltrogge agreed that administration costs need to get back down to the 40%range.
Rudy Jones stated he is hearing more dollars need to be provided for Rehabilitation and some
dollars to ElCentro, Black Hawk Center for Independent Living and Emergency Repairs.
Chairman Johnson asked the citizens to show some interest and compassion in speaking to the
federal representatives that are funding these programs. This would make the allocation process
much easier.
Following considerable discussion, it was moved by Larry Oltrogge and seconded by
Bernie Stroh to add $5,000 to Black Hawk County Center for Independent Living for
$15,000 total, add $25,000 to ElCentro Latinoamericano, add $15,000 to Emergency
Repairs to make it$100,000 total; and add $95,000 to Single Family Rehabilitation to make
Minutes
February 20, 2007
Page 6
it$663,233 total and allow the Director, Rudy Jones to decide the breakdown of where the
$140,000 comes from in the general program administration or rehabilitation
administration line items,which includes Neighborhood Services,Waterloo Housing
Partnership and Planning.
On roll call: Jim Carstensen,Mickye Johnson,Larry Oltrogge,Bernie Stroh and Eric
Johnson voted Aye. Nays: Gary Rankin. The Chairman declared the motion carried.
The Chairman noted this budget will be set for a City Council public hearing on April 23, 2007.
The 30-day public comment period will beginning March 1 and run through March 30, 2007.
Rudy Jones indicated what you see published will not be finalized until the City Council gives
their approval in April.
E. ADJOURN
Chairman Johnson thanked the public for attending and with no further business adjourned the
meeting.
Respectfully submitted,
Rudy D. Jones
Secretary Pro-Tem
y \
NOTICE OF COMMENT PERIOD
CITY OF WATERLOO
COMMUNITY DEVELOPMENT FY2008 CONSOLIDATED PLAN
A Consolidated Plan One-Year Action Plan will be submitted to the U.S. Department of Housing and
Urban Development (HUD) by the City of Waterloo, on or about May 15, 2007. The One-Year Action
Plan includes an application for about $1,389,104 in Federal Community Development Block Grant funds
and $6,000 in Program Income funds. The plan also includes an application for about$620,916 in
Federal HOME funds and Program Income of approximately$3,000. The program year for which the
funds are intended begins July 1, 2007. The funds will be used for a variety of activities including public
services, neighborhood planning, housing rehabilitation, down payment assistance, new construction,
rental deposit assistance, handicap ramps and public facilities improvements.
FY 2008 Applicants for CDBG and HOME Pro•rams
ry •
-er+ = ' ter . •s�_ 3 ao:"':i' ,�`."�-ri;
Black Hawk Center for Independent Living—Ramps $ 15,000
City of Waterloo/Community Planning & Development(Neighborhood Planning) *$ 10,000
Clearance and Demolition $ 20,000
El Centro Latinoamericano $ 25,000
Emergency Repairs $ 100,000
General Program Administration (20%of Allocation) *$ 268,997
Neighborhood Services(City Liaison with Neighborhoods) *$ 80,000
Pathways Behavioral Service, Inc.—Furnaces $ 5,000
Rehabilitation Administration (Project Delivery) *$ 277,754
Single Family Rehabilitation $ 663,233
Waterloo Housing Partnership Coordinator and Home Buyer Education *$ 70,000
TOTAL CDBG REQUESTS $ 1 534 984
City of Cedar Falls (Consortium) $ 75,000
Iowa Heartland Habitat for Humanity (CHDO Request) $ 93,578
Operation Threshold—Tenant Based Rental Assistance $ 20,000
Single Family Rehabilitation $ 147,892
Waterloo Housing Partnership- Down Payment Assistance
(1st Time Homebuyers-CURA) $ 185,000
Administration (10%of Allocation) $ 62,386
New Construction for Developer $ 40,000
TOTAL HOME REQUESTS $ 623,856
*The Community Development Board recommended staff reduce $140,000 through a combination
of these administrative activities. This reduction has yet to be determined and could impose a
decrease in some services.
None of the activities will cause displacement of persons or businesses from their present location. In the
event such displacement would occur, an Anti-displacement and Relocation Assistance Plan has been
developed outlining assistance available. This plan will also be available for public review in the
Community Development Office.
A 30-day public comment period will begin March 1, 2007 and end on March 30, 2007. The comments
will then be incorporated
0 orated into the t e final document submitted to HUD. Comments and/or questions may be
directed in writing to Rudy D. Jones, Community Development Director, Community Development Board,
Carnegie Annex-Suite 202, 620 Mulberry Street, Waterloo, Iowa 50703 or phone 291-4429.
e,t(dah,ri
MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
February 20, 2007
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 Board Chairman Eric Johnson, at 4:10 p.m., on
Tuesday, February 20, 2007. The Chairman announced Mickye Johnson would be arriving late and
Bernie Stroh is scheduled to attend.
Members present: Jim Carstensen, Larry Oltrogge, Gary Rankin and Eric Johnson, Chairperson.
Members absent: Elsie Duncan, Mickye Johnson* and Bernie Stroh.
Also present: Rudy Jones, Community Development Director;Nancy Gulick, Community Development
Coordinator; Mark Boesen,Manager of Rehabilitation Services; Donna Lesyshen, Waterloo Housing
Partnership Coordinator; Ann Northey, Administrative Secretary; David Zellhoefer, Assistant City
Attorney; and several interested citizens.
A. APPROVAL OF THE AGENDA.
It was moved by Larry Oltrogge and seconded by Jim Carstensen to approve the agenda as
proposed. Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING AND THE PUBLIC
HEARING ON JANUARY 23,2007.
It was moved by Larry Oltrogge and seconded by Gary Rankin to approve the minutes of the
regular meeting and the public hearing held on January 23,2007. Motion carried.
C. OLD BUSINESS.
1. Confirm Board Action on Repayment of Funds from St. Mary's Villa.
David Zellhoefer, Assistant City Attorney, explained the original subrecipient contract was executed with
St. Mary's Villa, who leased the real estate from Queen of Peace Parish for$1.00 per year. Therefore, we
have the wrong party signed on to our agreement for the $50,000. The Subrecipient Agreement stated if
they, St. Mary's Villa, lost their 501c3 status or did not utilize the building for the housing purposes
intended und
er our contract agreement,
ment,they would have to refund the $50,000 we gave them for
structural repairs to the building. Mr. Zellhoefer indicated Queen of Peace has sold the building and
technically we cannot hold them responsible, as they were not the original signatures on the agreement.
Mr. Zellhoefer indicated he has negotiated with Queen of Peace and they will repay the sum of$10,000,
which is the best we can hope for under the present circumstances.
Nancy Gulick indicated the Board was polled via email on February 6, 2007, and the majority vote was to
accept the $10,000 repayment from Queen of Peace (St. Mary's Villa).
Minutes
February 20, 2007
Page 2
Additional discussion occurred on when the settlement would be received and where the funds would be
deposited. David Zellhoefer stated he had discussed this matter with the City's Finance Director, and it
was unclear if the funds should go into the General Fund.
Nancy Gulick indicated these funds were originally CDBG dollars and there is no question that they
should be reprogrammed back into block grant activities. Board members agreed and Chairman Johnson
indicated these dollars recovered would need to go back into the block grant budget.
It was moved by Gary Rankin and seconded by Jim Carstensen to accept the repayment offer of
$10,000 from Queen of Peace for settlement on the$50,000 grant originally awarded to St.Mary's
Villa, and instructed the Assistant City Attorney to accept this amount on behalf of the Community
Development Board.
On roll call: Jim Carstensen,Larry Oltrogge, Gary Rankin and Chairman Eric Johnson voted
Aye. Nays: None. The Chairman declared the motion carried.
2. Amend Cedar Valley Restoration and Development Infill Construction Agreement.
Rudy Jones indicated staff met with David Deeds to work out the details concerning his new construction
activities. An amendment was drafted to extend the time frame to complete the work on five housing
units instead of ten. The amendment also provides for recapture of$50,000 of grant funds and extends
the construction time frame to June 30, 2009. (See copy of Amendment No. 2 attached).
Rudy Jones explained that marketing strategies are being reviewed and we anticipate that new
construction will pick up. Meetings have been scheduled with lenders and we are also meeting with the
realtors to promote these new houses.
It was moved by Larry Oltrogge and seconded by Gary Rankin to approve Amendment No. 2 to
Cedar Valley Restoration and Development's Infill Construction Agreement as presented,reducing
the number of units to five, reducing the dollar amount to $50,000 and increasing the time frame
for project completion to June 30,2009.
Gary Rankin expressed concern that the funding source was understood to be $10,000 per house and not
to spend $50,000 to purchase land to build on and only gain one house. Gary questioned the amount of
funds already drawn down on the Deeds' project?
Chairman Johnson stated the amendment requires that five houses be built, or we will recapture the
remaining dollars.
Rudy Jones indicated approximately$30,000 has been drawn to date on the Deeds' account to acquire
parcels, of which one is ready for construction. Rudy responded that a red flag has been raised and no
additional dollars will be granted to the Deeds' project until we see construction progress.
Chairman Johnson emphasized that no additional dollars will be awarded until some houses are built, and
reminded staff to communicate this factor up front to David Deeds.
Minutes
February 20, 2007
Page 3
Following discussion the Chairman called for a roll call vote: Jim Carstensen,Larry Oltrogge,
Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion
carried.
3. Proposed Use of Recaptured HOME Funds.
Rudy Jones stated the recaptured HOME dollars could be utilized in conjunction with the Rehabilitation
Program. A Rehabilitation Subcommittee meeting is necessary to work out the details of affordability on
utilizing the HOME dollars. How will we blend our current program of CDBG funds in with the HOME
dollars and manage the guidelines and time lines for the forgivable loans? Rudy noted our lead grant
would be expiring in March; however,there are Capital Improvement dollars that we have access to for
rehabilitation projects.
Mark Boesen mentioned we have plans to submit another Lead Grant application in June. We hope to
continue as we are now with the same funding levels for lead and rehabilitation. Mark noted,that most
of this year's funding has already been committed to rehabilitation projects.
Nancy Gulick pointed out that HOME funds must be used for certain items and must bring the house up
to certain codes. The CDBG funds offer more flexibility, and we can designate a program, such as the
Emergency Repair Program, to utilize those funds. We could have a lead only program, but we have
chosen to complete total rehabs on the houses in our program. When you utilize CDBG funds, you are
not required to bring the house up to code, however, HOME guidelines require it.
Chairman Johnson reiterated the staff recommendation is to turn this matter over to the Board's
Rehabilitation Subcommittee to work out the details utilizing the HOME funds for rehabilitation project.
Subcommittee members are Mickye Johnson, Bernie Stroh and Larry Oltrogge. Rudy indicated a
meeting would be scheduled as soon as possible.
*Mickye Johnson now present.
D. NEW BUSINESS
1. Endorse Rehabilitation Contracts for January 2007.
Mark Boesen, Manager of Rehabilitation Services indicated the low number of contracts awarded in
January was due to the fact the rehab staff is winding down the lead grant and matching up projects to
utilize these funds. Most of the rehabilitation dollars are already committed to projects for this fiscal
year. See copy of report attached.
It was moved by Larry Oltrogge and seconded by Mickye Johnson to endorse the January 2007
Rehabilitation Contracts. Motion carried unanimously.
2. Discuss Mortgages in lieu of Grants for Public Facilities.
Chairman Johnson stated discussion on this item was brought about by the St. Mary's Villa situation.
Historically when grants have been issued to the subrecipients, no mortgage has been filed. He noted the
question remains, should we begin placing mortgages against these grants and would we look at five years
Minutes
February 20, 2007
Page 4
with an automatic release of the mortgage? Rudy Jones indicated the percentage breakdowns should be
similar to our rehabilitation loans.
Nancy Gulick asked the Board to consider the dollar amount awarded to each subrecipient and adjust the
scale accordingly. She noted Eastside Ministerial Alliance was awarded $200,000 and if they defaulted,
we would have been out the total amount, since we do not have a mortgage against them. Pathways asked
for$5,000 this year for furnaces and she noted a 5-year mortgage on that amount would seem adequate.
Larry Oltrogge suggested the scale should be similar to the homebuyer mortgages, when we give out
grant money to buy a house. If the amount is less than$10,000 awarded, it is a five year forgivable
mortgage, if the amount goes over$15,000 and up to $40,000 it is a 10-year forgivable mortgage.
Amounts greater than$40,000 will carry a 15-year mortgage. Larry stated we should not deviate from
the guidelines already established by HUD for HOME funds.
Nancy Gulick stated for new construction/rental,HUD puts a 20-year mortgage against the property.
Chairman Johnson asked if the agreements would be changed to include a statement explaining that 20%
would be forgiven each year?
Nancy Gulick indicated yes,this would be part of the new agreements and the subrecipients would need
to agree to the terms of placing a mortgage against their property. She also noted all agreements will be
sent to the City Attorney for review, prior to executing them this year.
Following discussion, Chairman Johnson received a consensus from Board members that the HOME
guidelines should be utilized to implement a repayment scale for the new subrecipient agreements
beginning July 1st.
It was moved by Gary Rankin and seconded by Larry Oltrogge that all new subrecipient
agreements awarded utilizing CDBG and HOME grant funds will include a mortgage and
repayment scale. The repayment scale will coincide with HUD HOME guidelines as follows: If the
amount is less than $15,000 awarded, it is a 5-year forgivable mortgage,if the amount goes over
$15,000 and up to $40,000 it is a 10-year forgivable mortgage. Amounts greater than $40,000 will
carry a 15-year mortgage.
On roll call: Gary Rankin, Larry Oltrogge,Jim Carstensen,Mickye Johnson and Chairman Eric
Johnson voted Aye. Nays: None. The Chairman declared the motion carried.
DISCUSSION ITEMS: None. The Chairman reminded Board members that the Public Hearing for
FY2008 CDBG and HOME Program funding would begin at 5:00 p.m.
ADJOURN MEETING: With no further business to come before the Board,the Chairman adjourned
the meeting.
Respectfully submitted,
Rudy D. Jones, Secretary Pro-Tem
AMENDMENT TO SUBRECIPIENT AGREEMENT
Amendment#2
The following changes are to be made as an Amendment to the Subrecipient Agreement between the City of
Waterloo,Community Development Board and Cedar Valley Restoration and Development for the use of F.Y.2006
HOME funds originally executed on July 1,2005:
Change Part I.1.A.1.from ten(10)single-family homes for sale to low income families to five(5)single-family
homes for sale to low income families.
Change Part I.1.A.2.from ten.(10)units of affordable housing for homeownership opportunities for low
income persons for a minimum period of five(5)years to five(5)units of affordable housing for
homeownership opportunities for low income persons for a minimum period of five(5)years.
Change Part I.I.F.from up to ten(10)units may be constructed utilizing this grant to five(5)units will be
constructed utilizing this grant.
Change Part I.2.A.7.Project completion date-ten(10)homes to Project completion date-five(5)homes by
June 30,2009.
Change Part 1.3.Proposed project budget Total project costs from$1,000,000.00 to$500,000.00 total,Total
subrecipient grant from$100,000.00 total to$50,000.00 total,and Match required from$25,000.00 to
$12,500.00.
Change Part I.4.Compensation and Method of Payment from"....one hundred thousand dollars and no/100
($100,000.00)to Fifty thousand dollars and no/100($50,000.00).
Change Part I.5.E. date from December 31,2008 to June 30,2009.
Delete Part I.5.K.If construction of the first unit has not commenced by December 1,2005,the parties to this
Agreement shall be released from the agreement without further obligation.
Change Part H. 1.C.date from December 31,2008 to June 30,2009.
All other remaining grant agreement stipulations and requirements are still applicable.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement on this 8th day of February 2007.
CITY OF WATERLOO CEDAR VALLEY RESTORATION
COMMUNITY DEVELOPMENT BOARD AND DEVELOPMENT
620 Mulberry Street 922 Mulberry Street
Waterloo,Iowa 50703 Waterloo,Iowa 50703
BY: BY:
Eric W.Johnson David Deeds
Community Development Chairperson Developer/Owner
ATTEST: ATTEST:
Rudy D.Jones Notary Public
Community Development Director Commission Expires
J:\NANCY-G\Subrecipient files FY05\Cedar Valley Restoration and Development-Deeds\Subr Agr Amendment 2 Feb 8 2007 units date
changes.doc
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MINUTES
COMMUNITY DEVELOPMENT BOARD
PUBLIC HEARING
FOR CITIZEN INPUT
FY2008 CDBG and HOME PROGRAM
January 23,2007
Chairman Eric Johnson called the public hearing to order at 5:00 p.m. in the City Council
Chambers, 715 Mulberry Street, Waterloo, Iowa. The Chairman stated the purpose of the
hearing is to gain citizen input into the application process for FY2008 CDBG and HOME
Program funding. The Chairman welcomed participants to the meeting, and indicated the
allocations have not yet been awarded from HUD, however we anticipate the same level of
funding as last fiscal year, which was approximately$1,417,000 in CDBG funding.
Board Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson, Larry Oltrogge,
Gary Rankin, Bernie Stroh and Chairman Eric Johnson.
Also present: Mayor Tim Hurley, John Kincaid and Ron Welper, Council Liaison; Don
Temeyer, Community Planning and Development Director; Rudy Jones, Community
Development Director; Mark Boesen, Manager of Rehabilitation Services; Ann Northey,
Administrative Secretary and 12 interested citizens.
A. APPROVAL OF AGENDA
It was moved by Larry Oltrogge and seconded by Bernie Stroh to approve the agenda.
Motion carried.
B. RECEIVE AND PLACE ON FILE AFFIDAVIT FOR PROOF OF PUBLICATION
FOR NOTICE OF PUBLIC HEARING
Chairman Johnson indicated copies of the display ads published in the Waterloo/Cedar Falls
Courier on December 5, 2006 and January 14, 2007 were available for review.
It was moved by Mickye Johnson and seconded by Elsie Duncan to approve and place on
file the affidavits for the notices published in the Waterloo Courier. Motion carried.
The Chairman recognized and thanked Mayor Tim Hurley and City Council members John
Kincaid and Ron Welper for attending the meeting.
Chairman Johnson offered a few comments before opening the public hearing. The federal
government usually gives us our funding amounts in October each year so we can plan
accordingly. We still have not received word on the FY2008 allocations, so we are operating on
the basis that our funding will be approximately the same level as last year. The Chairman
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Minutes
January 24, 2006
Page 2
noted Nancy Gulick, Community Development Coordinator, is in Washington D.C. this week
with a delegation from Iowa and we may have a better understanding of our CDBG and HOME
allocations by next week. CDBG funding last year was about$1.4 million and HOME funds
were approximately $576,000. The Chairman stated we are optimistic as we have not heard of
any drastic cuts, so again,this is an estimate of funding for this fiscal year, until a firm
confirmation is made to Waterloo as an entitlement city.
C. OPEN PUBLIC HEARING
It was moved by Jim Carstensen and seconded by Mickye Johnson to open the public
hearing. Motion carried.
Chairman Johnson requested that participants interested in addressing the Board step to the
microphone at the front of the room, stating both their name, and the name of their organization.
Chairman Johnson stated the Board members received copies of each application that was
submitted for funding this fiscal year and urged participants not to read their requests. He noted
any new or additional information could be presented at this hearing, and added this gives the
Board members an opportunity to ask additional questions.
Dave Schumacher, Black Hawk Center for Independent Living,requested consideration for their
application on building handicap ramps, and noted they were not funded last fiscal year. He
asked when recommendations would be forthcoming.
Chairman Johnson indicated the subcommittee will review all the applications. Assuming our
funding levels will be the same as last year, we currently have about$450,000 more in requests
than we have in available funds. The subcommittee will meet regularly over the next few weeks
in order to have a recommendation ready to publish by February 11t'. The next public hearing
has been scheduled for February 20, 2007, when we will review the subcommittee
recommendations. At that time, applicants and the public will receive notice and may come to
the hearing and offer additional comments.
Warren George, Human Rights Commissioner and Jerome Amos, Chairman of the Human
Rights Commission indicated their ordinance with HUD states that the commission should be
receiving 1% of the city's HUD CDBG administrative allocation. Mr. George stated,this
ordinance is not clear and we are curious and would like an explanation about those funds.
Rudy Jones stated he has asked David Meeks,Human Rights Director, to show us these
regulations to strengthen this case,however,we have not received this information to date. We
are basing each application upon its own merits. We need this information.
Warren George indicated the information had been sent to Mr. Meeks by email, and noted he
would speak to him again and provide the information for Community Development staff to
review.
Minutes
January 24, 2006
Page 3
Rudy Jones indicated he has discussed this issue with Mr. Meeks and the HUD representative
regarding the regulatory language. We understand this is an eligible item, but it is up to the city
to decide how we implement the use of these dollars.
Warren George stated it was the city's responsibility through Community Development to
further fair housing issues and to report this to HUD in order to receive funds. He questioned
how this was being accomplished, and what are you utilizing for a document to do this, because
the Human Rights office does the fair housing mortgages.
Rudy Jones stated, historically this has been contracted out through requests for proposals, and
we have advertised with 30 day comment periods. There have been no violations or red flags
1
noted on this issue by HUD or we would have been informed.
Warren George questioned the document sent in to HUD to verify and further fair housing.
Rudy Jones noted the last Fair Housing Analysis was conducted by the University of Northern
Iowa, and we followed all protocol for public notification.
Jerome Amos commented on the importance of having a fair housing specialist on staff and
asked for consideration to support their request.
David Meeks stated part of the commission's purpose is to promote fair housing and investigate
complaints. Currently, a part-time coordinator fields concerns with impediments to fair housing,
discrimination and by ordinance, we are the only entity with this expertise in the community.
Mr. Meeks stated it is imperative that a portion of the block grant dollars awarded to the city are
utilized to assure the enforcement of the civil rights act of 1964 and fair housing issues are being
addressed. The $20,000 requested will barely scratch the surface of our complaint mechanism
to ensure an eradicating presence, carry out investigations, and monitor progress and resolutions.
Mayor Tim Hurley spoke in support of the Human Rights Commission request to fund a fair
housing specialist, not just for enforcement but being a proactive participant with the city. The
Mayor encouraged the Board to give due consideration to their request.
Barb Grant, Executive Director of Operation Threshold, requested support for two applications
they submitted this year. One for Tenant Based Rental Assistance and the other a
Weatherization Plus program.
Chairman Johnson inquired about their weatherization request, which is for $60,000. Barb Grant
indicated approximately $12,000 would be utilized for five homes. These funds will be used
strictly for homes that are in severe need of weatherization. Some state weatherization funds
may also be applied to make the homes more energy efficient.
Gina Cassis, Executive Director of El Centro Latinoamericano, explained the importance of their
organization in the community and asked for consideration of their application.
Minutes
January 24, 2006
Page 4
Gary Heinick, City Engineering Department,requested consideration of their request for CDBG
funding to continue the 2" phase of the sidewalk repair program to complete Zone 7 of the city.
He explained the various costs involved with the repair and assessment program.
Chairman Johnson indicated all zones were funded the first time through the Sidewalk Program.
The Board funded Zones 1-5 a second time, and last year Zone 6 was not funded, due to the
drastic cut in funding that occurred last year.
Chairman Johnson asked for further comments from the public. None were received.
D. CLOSE PUBLIC HEARING
The Chairman called for a motion to close the hearing.
It was moved by Mickye Johnson and seconded by Bernie Stroh to close the public hearing.
Motion carried.
Chairperson Johnson stated the Board Subcommittee will begin reviewing requests and make a
recommendation which will be published and available on February 11, 2007. The next Public
Hearing will be held on February 20, 2007.
E. ADJOURN
Chairman Johnson thanked everyone for attending and with no further business adjourned the
meeting.
Respectfully submitted,
Elsie Duncan, Secretary
1 1, --
MINUTES
COMMUNITY DEVELOPMENT BOARD MEETING
January 23, 2007
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 Board Chairman Eric Johnson, at 4:00 p.m., on
Tuesday, January 23, 2007.
Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson, Larry Oltrogge, Gary Rankin,
Bernie Stroh and Eric Johnson, Chairperson.
Also present: Rudy Jones, Community Development Director; Don Temeyer, Community Planning &
Development Director; Mark Boesen, Manager of Rehabilitation Services; Donna Lesyshen, Waterloo
Housing Partnership Coordinator; Ann Northey, Administrative Secretary; Tim Jamison, Waterloo/Cedar
Falls Courier and several interested citizens.
A. APPROVAL OF THE AGENDA.
It was moved by Larry Oltrogge and seconded by Bernie Stroh to approve the agenda as proposed.
Motion carried.
B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING DECEMBER 19,2006.
It was moved by Larry Oltrogge and seconded by Mickye Johnson to approve the minutes of the
regular meeting held on December 19,2006. Motion carried.
C. OLD BUSINESS.
1. Update on sale of St. Mary's Villa—Assistant City Attorney.
Chairman Johnson stated there were some issues on recapture or transfer of funds with this subrecipient's
allocation, depending upon the new ownership. The Chairman recommended this item be tabled since
the Assistant City Attorney was not present to report.
2. Update on Infill Construction Project for Cedar Valley Restoration and Development.
Chairman Johnson indicated David Deeds of Cedar Valley Restoration and Development had another
meeting and would try to get to this meeting by 4:30 to address the Board.
Rudy Jones indicated David Deeds has pre-sold one unit, however the details are in progress for financing
the construction.
Chairman Johnson tabled this item until Mr. Deeds' arrival. Rudy Jones indicated that Mark Boesen,
Manager of Rehabilitation Services has requested the use of HOME funds to further the Rehabilitation
Program. HOME fund guidelines require a 10-year commitment of the dollars, which would increase
the time frame for forgivable loans. Rudy noted the Rehabilitation Subcommittee would be contacted
within the next 30-60 days to discuss these details.
Minutes
January 23, 2007
Page 2
Mark Boesen indicated we would maintain the $25,000 cap for full abatement of lead issues and keep the
funding thresholds the same. However, any HOME funding for a single-family/owner-occupied rehab
over $15,000 requires a 10-year mortgage, as this is a federal requirement.
Rudy Jones indicated new Requests for Proposals are being prepared for Spring and some of the HOME
dollars will be available for interested developers.
Larry Oltrogge commented on the two-year time frame to utilize the $100,000 in state funds. He
reviewed the various options available to the buyers and developers. We are trying to limit the new
construction developers into our target area and it is apparent these homes are not selling. Larry
indicated we cannot restrict these funds to our targeted area otherwise we will not be able to utilize all the
funding. He noted that perception is the reality in many cases, and we may need to build some of these
houses in other areas to get this program going and off the ground.
Rudy Jones indicated there is opportunity to visit with the contractors to help spur this result.
Bernie Stroh indicated our intent was to provide infill housing in the areas that are depressed. We should
do a better marketing job with our realtors.
Larry Oltrogge indicated we must do a better job of identifying the purchaser who wants to become a
homeowner. We have access to people taking the classes,plus the Section 8 people and we should be
working our market to develop this program.
Mickye Johnson expressed reservations, as we are looking to serve the greatest need. Moving into this
venture has not been easy, but homes are selling. What can we do to make our target area more
accessible to receive the mortgage loans? Moving to another area, doesn't address the changes we
intended to complete within our target area.
Larry Oltrogge indicated we need to expand in order to serve more people. If we cannot find enough
qualified prospects interested in those homes,where will we turn? We cannot lead individuals into
predatory lending. The problem begins with credit reports and these people need help to get qualified. In
order for this to happen we must make a real commitment to get people qualified to buy a home.
Donna Lesyshen indicated that Fannie Mae has approved us with a Mortgage Ready Certification. Donna
noted she would like to obtain credit reports, as this would assist both the home buyers and the lenders.
Mickye Johnson stated there is definitely a need and we cannot abandon these areas. We must strengthen
the educational aspects of our program and stay focused in our target area. These areas have really
changed and with the new developments taking place,this will only strengthen our overall plan.
Larry Oltrogge agreed, however, we have over-saturated the area with new homes that are currently not
selling.
Bernie Stroh agreed, and stated we must do a better job of marketing the homes. Credit worthy
candidates can easily lower their costs, if we can get a marketing plan in place. Many folks may not want
Minutes
January 23, 2007
Page 3
to come to these target areas, which will be something to look at in the future. We must stick with this
program and make it work.
Rudy Jones indicated areas with the greatest need have been targeted with a great deal of success. He
stated, if we apply this to the core areas and provide incentives with more dollars in a larger boundary, we
may not need the same level of resources.
Rudy reported a lenders meeting is coming up in February and we should be able to make some strides.
Affordable housing is our priority and we will address the marketing, credit and realtor issues, all of
which will be incorporated into the next Request for Proposals.
David Deeds now present to discuss the Cedar Valley Restoration and Development infill project. Mr.
Deeds reported his concerns with credit issues, folks not ready to buy or not familiar or comfortable with
the area. Mr. Deeds could not promise 10 homes would be built by next December. He noted a new
home going up on Madison and Arizona should spark some additional interest, as the developers have a
great deal invested in these properties.
Chairman Johnson stated $100,000 was programmed for the Cedar Valley Restoration and Development
new construction projects. He noted the Board has an obligation to use these funds in a timely manner
and the question is that you may not be able to spend these funds as rapidly as planned if the market
continues on the current course.
Following considerable discussion, and responding to questions from the Board, David Deeds indicated
he could realistically utilize $50,000 of the funds this year and would relinquish the other$50,000 to be
reprogrammed.
Larry Oltrogge indicated 2006 was the second best year in history for real estate, however it was not as
good as 2005. The housing market is still active,particularly with buyers interested in the affordable
housing range. Larry noted there seems to be no indicators in Waterloo that there will be an economic
downturn,noting the upper end markets over $300,000 may be tougher sales.
David Deeds mentioned many indicators determine the affordable housing market such as high gas
prices....all this trickles down and creates problems for people to maintain their bills and leads them to
develop poor credit. This is not as easy as the general market.
Donna Lesyshen indicated building affordable housing is the key issue.
Chairman Johnson asked for the details of the Cedar Valley Restoration and Development agreement.
Rudy Jones indicated staff would meet with Mr. Deeds in the next 30 days and review his agreement to
create an amendment to the contract and continue the partnership.
Gary Rankin stated another issue to utilize these HOME funds in a timely manner would be to reprogram
them and supplement the Rehabilitation Program, where CDBG dollars are readily utilized for
improvements and emergencies.
Minutes
January 23, 2007
Page 4
Chairman Johnson indicated staff would meet with David Deeds and a proposed amendment will be
drafted for review and approval at the next meeting.
Chairman Johnson directed staff to review the recaptured $50,000 HOME funds and provide a
recommendation for reprogramming those funds at the next meeting.
Board members asked for staff input concerning better marketing techniques and ideas for more
coordination between the Home Buyer Education and Down Payment Assistance programs. Possibly
utilizing the expertise of the local realtors.
D. NEW BUSINESS
1. Endorse Rehabilitation Contracts for December 2006.
No comments were received on the December 2006 Rehabilitation Contracts report(copy attached).
It was moved by Mickye Johnson and seconded by Jim Carstensen to endorse the December 2006
Rehabilitation Contracts.
On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin,Bernie
Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried.
2. Set Public Hearing date for FY2008 CDBG and HOME Program Recommendations.
Chairman Johnson indicated the next Public Hearing would be on February 20, 2007 at 5:00 p.m. Rudy
Jones explained the subcommittee would be meeting several times within the next few weeks to finalize
their recommendations. A hearing notice will be published on February 11, 2007 with the
subcommittee's recommendations.
It was moved by Mickye Johnson and seconded by Gary Rankin to set the date of Public Hearing
for FY2008 CDBG and HOME Program Recommendations for February 20,2007. Motion carried.
D. DISCUSSION ITEMS: None.
The Chairman reminded Board members that the FY2008 CDBG and HOME Programs Public Hearing
would begin at 5:00 p.m.
F. ADJOURN MEETING
With no further business to come before the Board,the Chairman adjourned the meeting.
Respectfully submitted,
Elsie Duncan, Secretary
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