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HomeMy WebLinkAbout2006 (2 6 z,L MINUTES COMMUNITY DEVELOPMENT BOARD MEETING December 19, 2006 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,December 19, 2006. Members present: Elsie Duncan, Mickye Johnson, Larry Oltrogge, Gary Rankin and Eric Johnson, Chairperson. Members absent: Jim Carstensen and Bernie Stroh. Also present: Rudy Jones, Community Development Director; Don Temeyer, Community Planning & Development Director;Nancy Gulick, Community Development Coordinator; Mark Boesen, Manager of Rehabilitation Services; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary;Dave Zellhoeffer,Assistant City Attorney; and Tim Jamison, Waterloo/Cedar Falls Courier. A. APPROVAL OF THE AGENDA. It was moved by Larry Oltrogge and seconded by Elsie Duncan to approve the agenda as proposed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING NOVEMBER 21,2006. It was moved by Larry Oltrogge and seconded by Gary Rankin to approve the minutes of the regular meeting held on November 21,2006. Motion carried. Mickye Johnson now present. C. OLD BUSINESS. 1. Update on sale of St. Mary's Villa—Assistant City Attorney. Rudy Jones indicated the St. Mary's Villa project was funded several years ago. Since the Villa is being closed and sold, we must recapture a portion of the funding and the city attorney, Dave Zellhoeffer, is here to provide a legal opinion. Dave Zellhoeffer indicated he had conducted some interviews with representatives of St. Mary's Queen of Peace and the city, and stated he was not ready to give a full opinion at this time. Mr. Zellhoeffer advised he should have a full opinion by the January meeting. Chairman Johnson inquired if there was a chance, depending upon the buyer,that these funds may not need to be repaid. Dave Zellhoeffer indicated this was a possibility and said he was cautiously optimistic this would be resolved. Minutes December 19, 2006 Page 2 Chairman Johnson tabled this item until the next meeting. 2. Update on Infill Construction Project for Cedar Valley Restoration and Development. Chairman Johnson indicated no update has been received from David Deeds of Cedar Valley Restoration and Development. Staff recommendation is to begin the recapture process of the HOME funds awarded under this contract. Mickye Johnson indicated he supported the staff recommendation to reallocate funds to another project. Nancy Gulick indicated approximately$29,000 has been expended to purchase property for the Cedar Valley Restoration and Development new construction projects,however, no houses have been constructed under the contract. Chairman Johnson suggested Rudy Jones contact David Deeds and ask him to voluntarily cooperate in returning the funds, and if not, then proceed with a formal process to recapture the funds. Further discussion occurred concerning the various projects underway with David Deeds and the City, some of which may be taking priority over this contract. It was moved by Mickye Johnson and seconded by Elsie Duncan to recapture funds from Cedar Valley Restoration and Development in the amount that has been reimbursed to David Deeds for reallocation to another contractor and/or project to get the houses built. On roll call: Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Request from Iowa Dept. of Economic Development to expedite ADDI expenditures. Rudy Jones referred to an email from the state concerning the IDED's American Dream Downpayment Initiative (ADDI) funds. The state is asking grantees to expedite their homeownership activities and complete a HOME Completion Report for every project funded at the local level. Rudy stated the state wants to make sure that we are doing everything necessary to put the dollars in the system. We will take this into consideration when we have our next RFP and we will do some things differently in terms of strongly encouraging, if not mandating,that the real estate profession be more involved in that entire process. Chairman Johnson asked what are ADDI funds? Nancy Gulick explained they are down payment assistance funds awarded at$10,000 per house (new construction) and its also HOME money that the state of Iowa was awarded. The City of Waterloo was allocated $200,000 and we have spent$10,000. Chairman Johnson asked why aren't we spending more? Nancy Gulick reported the new construction houses are just not getting built and these funds are to be used only for new construction. Minutes December 19, 2006 Page 3 Donna Lesyshen reported we would be closing on the second home built by W. C. Stokes in January. Donna also noted there has been some interest in the four new construction homes built by John Rooff. Numerous individuals, who have taken the Home Buyer Education classes, have been notified of the new construction homes and Donna has been working with the developers to market these homes. Chairman Johnson questioned whether the money should be returned to the state if we cannot construct 20 new homes? Rudy Jones indicated a new construction home may get more interest than an existing structure, however the current market conditions need to improve. Mickye Johnson inquired about a deadline to spend the allocation. Nancy Gulick stated the first $100,000 had a two-year time frame and the second $100,000 must be spent a year later. Rudy Jones explained we have compiled several components utilizing our various programs to benefit the homebuyer and developers,however, another key component is to involve realtors in the process to help us market these new homes. Elsie Duncan inquired about the financing for the homeowners. Rudy Jones indicated a spreadsheet could be developed by the Waterloo Housing Partnership Coordinator to give us some idea of the actual cost of a new construction home. D. NEW BUSINESS 1. Subordination Request on Forgivable Loan for 1405 West 4th Street—Eckerman, Owner. Chairman Johnson briefly reviewed the subordination request from Veridian Credit Union for a 30-year loan totaling $72,000 at 5.875%interest to Julia M. Eckerman of 1405 West 4th Street to refinance her home and purchase a vehicle. The Chairman indicated there is currently a balance of$640.00 for one year on her forgivable loan. Following discussion on the criteria for subordinating loans,it was moved by Larry Oltrogge and seconded by Gary Rankin to approve the subordination request from Veridian Credit Union on the forgivable loan for Julia M.Eckerman of 1405 West 4th Street. On roll call: Mickye Johnson,Larry Oltrogge, Gary Rankin and Eric Johnson voted Aye. Nays: Elsie Duncan. The Chairman declared the motion carried. 2. Endorse Rehabilitation Contracts for November 2006 No comments were received on the November 2006 Rehabilitation Contracts report(copy attached). Minutes December 19, 2006 Page 4 It was moved by Elsie Duncan and seconded by Mickye Johnson to endorse the November 2006 Rehabilitation Contracts. On roll call: Elsie Duncan, Mickye Johnson,Larry Oltrogge, Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Review Code of Ethics for Waterloo Housing Partnership—Home Buyer Education. Rudy Jones advised the Waterloo Housing Partnership Program must have on file a Code of Ethics. Donna Lesyshen indicated IHOEP is a funding source we would like to use to apply for some grants. This Code of Ethics policy is necessary as we would like to begin getting credit reports. Chairman Johnson inquired about the statement to respect the client privacy and confidentiality. What process does this come under, since this is part of the public process. How do you keep this confidential? Donna Lesyshen responded this relates to confidentiality with credit reports, income information, etc. With no further discussion it was moved by Elsie Duncan and seconded by Larry Oltrogge to approve the Code of Ethics for the Waterloo Housing Partnership -Home Buyer Education program. (See copy attached.) Mickye Johnson expressed concern over handling confidential information. Donna Lesyshen indicated all documents of this type would be kept securely filed or shredded at the appropriate time. Nancy Gulick noted that our application process includes a statement which the homeowner signs off on, that they acknowledge federal funds are involved and this is public information. Other questions arose concerning the wording and possible conflict of interest with city employees. The Chairman then called for a vote. The motion carried unanimously. 4. EPA Lead Grant Application. Nancy Gulick indicated we are requesting$100,000 in funding from the Environmental Protection Agency to partner with Black Hawk County for specific projects to continue our lead abatement work within the county. On another note, Nancy reported the Lead Grant we recently submitted was denied because we did not have enough points due to our numbers...ie.Number of children lead poisoned, houses built before 1978, and we cannot compete with the larger cities. They realized this is a problem and so this criteria will be reviewed for the next application process. Minutes December 19, 2006 Page 5 E. DISCUSSION ITEMS Chairman Johnson indicated the next Board meeting would be held January 23, 2007 at 4:00 p.m. with the Block Grant Public Hearing at 5:00 p.m. All applications for the CDBG and HOME Program funds will be submitted by January 3' deadline and provided for Board review prior to the hearing. This public hearing will be a time for review of the applications and an opportunity to ask questions of the applicants. Chairman Johnson inquired about funding levels. Rudy Jones indicated the current level of funding is projected to be maintained this year, $1.6 million for CDBG and$600,000 for HOME. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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Members present: Jim Carstensen; Mickye Johnson, Larry Oltrogge, Gary Rankin, Bernie Stroh, and Eric Johnson, Chairperson. Members absent: Elsie Duncan. Also present: Rudy Jones, Community Development Director; Don Temeyer, Community Planning & Development Director; Nancy Gulick, Community Development Coordinator; and Ann Northey, Administrative Secretary. A. APPROVAL OF THE AMENDED AGENDA. It was moved by Mickye Johnson and seconded by Gary Rankin to approve the agenda as proposed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING OCTOBER 17,2006. It was moved by Mickye Johnson and seconded by Gary Rankin to approve the minutes of the regular meeting held on October 17, 2006. Motion carried. C. OLD BUSINESS. 1. Discussion on how to handle Lead-Only Rehabilitation Projects (Tabled—Sept./Oct.) Rudy Jones explained General Obligation Bond funding was being utilized to complement our CDBG and Lead Grant funds. The Finance Department raised questions on limiting the amount of funds being used on individual rehabilitation cases. The Rehab Subcommittee met to discuss this issue and proposed to cap the amount of funding by utilizing$2.00 of GO bond funding for every$1.00 of grant funds. Chairman Johnson asked for an explanation and Bernie Stroh indicated the lead grant funds are being depleted and since we didn't receive a new award of funding, the concern is that we could spread the dollars further if we didn't place huge amounts of lead grant funds into a single project. The actual lead grant work on many of the projects has been significantly less than $25,000, and by utilizing the GO Bond funding,the costs can be stretched. Chairman Johnson inquired if all projects must still meet the lead abatement requirements? Bernie Stroh indicated that we must meet that requirement expense on all projects. The Lead Grant contract is still in Minutes November 21, 2006 Page 2 effect through March 2007. Rudy Jones indicated we will still request General Obligation Bond funds to address the lead issues in our rehab program. Nancy Gulick indicated the Finance Department was concerned with the amount of dollars being spent on lead abatement for the Lead Only houses. However, if this is the amount needed for lead remediation,to get the lead out of these older homes,then these costs are justified, as no other rehabilitation work is being completed on the"Lead Only"homes. One home alone cost us over $26,000 for lead abatement, and this is why the issue was brought up to staff. Further discussion continued on some of the completed lead abatement projects,noting some homeowners are able to contribute dollars toward the abatement process to help lower the cost. Staff explained they were working on recommendations to present to the Board for FY2008, in order to provide separate accounts of funding for lead abatement,roof repairs and emergency items to creatively utilize the funds available for rehabilitation issues. Rudy Jones indicated the Rehabilitation Subcommittee will revisit these issues in the coming months. Larry Oltrogge mentioned there was some discussion of low-interest or no-interest loan dialogue concerning our rehabilitation clients. If we had some funds always coming back to us that could be recycled it would help strengthen our program activity. Chairman Johnson indicated some of the past loans were not collected and we were not the best stewards on collecting the federal funds. Board members indicated some of the issues were with bad economic development loans,not just rehabilitation loans. Chairman Johnson noted he would look forward to the staff recommendations to further the use of block grant funds. D. NEW BUSINESS 1. Endorse Rehabilitation Contracts for October 2006 No comments were received on the October 2006 Rehabilitation Contracts report(copy attached). It was moved by Larry Oltrogge and seconded by Jim Carstensen to endorse the October 2006 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. 2. Set Board Meeting Dates for 2007. Chairman Johnson indicated the third Tuesday of the month is again being proposed for the Board meeting dates in 2007. The Chairman noted the January 2007 Board meeting would be held a week later than usual to avoid the Martin Luther King, Jr. holiday. It was moved by Mickye Johnson and seconded by Bernie Stroh to approve the 2007 Board Calendar as presented for the 3`d Tuesday of each month with the exception of January. Motion carried. Minutes November 21, 2006 Page 3 F. DISCUSSION ITEMS 1. New Construction Projects Update. Rudy Jones gave the Board an update on the new construction projects currently underway. Concerning the contract with Greg Glidewell of Shelter Construction,the attorney has forged ahead and filed a formal affidavit, an Entry of Judgement, regarding the lack of performance according to our contract. Bernie Stroh raised the question of Shelter Construction still working as a contractor? Rudy indicated a response should come from the Building Inspection Department, which establishes the criteria and determines who gets permits. Chairman Johnson inquired if financial solvency was one criteria for being a contractor? Chairman Johnson indicated a referral should be made to ask this question. Rudy Jones discussed the new construction work of W.C. Stokes and indicated one of his two homes have been sold. Chairman Johnson inquired as to the number of homes W.C. Stokes was required to build. Rudy Jones responded a total of five homes. Chairman Johnson confirmed the Stokes' homes were prefab and not stick built. Rudy indicated the most recent dialogue with Stokes centered around the costs involved and the size of the homes, as they had trouble selling them after they were constructed. The houses may have been overpriced for the clientele looking to purchase them. Rudy strongly suggested that we should make it a part of these future contractual arrangements to have a certified realtor as part of the process. They are not getting the full benefit of the entire program when the contractor tries to market the homes themselves. Rudy reported the state has issued a notice that HUD is putting pressure on the Iowa Department of Economic Development, concerning the ADDI funds which we are involved in, to get contracts underway and in the system. Rudy noted John Rooff of Select Homes, has constructed all four of his homes and is completing the landscape work and has begun to market his houses. There has been dialogue between Mr. Rooff and David Deeds, and we are concerned over the inactivity on the construction of homes by Cedar Valley Restoration and Development. Further discussion continued concerning the new construction contract with Cedar Valley Restoration and Development. Board members suggested recapturing funds on this project if the requirements of the contract cannot be met in a timely manner. Concern was expressed on the collaboration between Cedar Valley Restoration and Select Homes, working to change the scope of the original contract. Staff was instructed to contact the contractors for an update on the project status. Larry Oltrogge expressed concern over the lack of marketing on these new homes, as it's been three years since the new construction began and only one home has been sold. Many programs are available to Minutes November 21, 2006 Page 4 assist home buyers,but no one is really qualified to market the many programs we have available through the city. The homes we have for sale are for specific clientele and we must find realtors who are willing to serve this clientele and knows the different funding sources to get the $29,000 available within these programs. Chairman Johnson reiterated that a report from David Deeds should be provided to the Board as soon as possible. It was moved by Bernie Stroh and seconded by Jim Carstensen to notify David Deeds of Cedar Valley Restoration and Development to provide an updated report on his project to the Board by the December meeting, or we will begin the process to recapture his funds. Motion carried unanimously. 2. Update from Rehabilitation Subcommittee. Rudy Jones indicated the Subcommittee discussed the low-interest and no-interest loan consideration for the future. This will be an on-going dialogue until we determine the best course to take for the program. Rudy indicated there was discussion on the Economic Development funding in the Brownfield area. Mark Boesen is developing a couple program ideas for this area. We have monies for demolition, acquisition,new construction and roofs, but we see a need to tweak these items. Mark Boesen stated an eligible activity is an energy efficiency type of program. Mark asked to propose funding for roofs, foundations,porches, energy efficient windows, doors and insulation and start programs in these specific areas. Also a siding program, which would work with lead-based paint abatement,but would address some of the aesthetics of the area. Rudy Jones indicated these requests will be included in the information submitted to Washington,D.C. through the Cedar Valley Coalition this spring. Chairman Johnson asked if these would be funds over and above the regular CDBG funds? Mark Boesen stated we would ask for Economic Development Initiative funds for these programs. There would be no local match. The Chairman and Board encouraged staff to pursue these funding sources. Mickye Johnson asked if special deals could be arranged with contractors or if numerous siding projects could be scheduled for the same neighborhood or area, to cut costs for labor,hauling,materials, etc. to renovate the entire neighborhood and negotiate this action with local contractors and suppliers. This might be an avenue to stretch the federal dollars to do more in these neighborhoods. Mark Boesen indicated staff could look at packaging several homes to get the best prices, etc. Rudy Jones indicated this was done on some roof projects to get the pricing more in line with other costs. Rudy indicated the subcommittee also addressed an Emergency/Rehab request for 1721 Logan Avenue. This home is in the Highway 63 Corridor and it is primarily a roof emergency that is needed, but because of the extensive roof repair the entry of the home is damaged. This house will be moved and relocated in Minutes November 21, 2006 Page 5 the future through the Hwy 63 corridor plan. Following an explanation by Mark Boesen as to the extent of the repair and the fact the home is owned by an elderly couple, it was moved by Mickye Johnson and seconded by Larry Oltrogge to proceed with the roof repair to save the home from further damage. Minimal interior repairs would be made to stay under the $4,000 Emergency Repair limit. On roll call: Jim Carstensen, Mickye Johnson,Larry Oltrogge,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Rudy Jones indicated a general review of the Rehabilitation Policy was discussed with the subcommittee. We bring most of these issues to the full Board for discussion. 3. Cedar Valley Housing Fair Report. Rudy Jones stated the Cedar Valley Coalition Housing Fair was hosted by Crossroads Center. This event was well received with much traffic, dialogue and participation. Information was received from approximately 150 participants on the types of housing they are interested in purchasing,when they consider buying a home and other data to add to our files. We also produced a booklet that should be updated yearly, informing clients of the various services provided community-wide. We must thank our partners,the Waterloo/Cedar Falls Board of Realtors,for publishing this informational booklet for distribution. Rudy Jones also noted that Donna Lesyshen, Waterloo Housing Partnership Coordinator, received a scholarship to attend a NeighborWorks Training Institute in New Orleans in December, with most all expenses paid, to further her skills in Home Buyer Education. Chairman Johnson indicated the homeowner evaluations this month were mostly positive,however, there is a memo in the packet referring to two evaluations that were not positive. He thanked Mark Boesen for providing an update to the Board on these evaluations. It appears some of the problems stemmed from communications issues, and possibly the contractor was stretched too thin with other projects. Mark indicated some lead based paint certifications were coming up next week. Don Temeyer gave an update on the EPA grant application for the Chamberlain site and noted asbestos removal is being reviewed at this time. He also indicated Menards is locating to North Donald Street/ Logan Plaza Area, and we are requesting your help in supporting their decision to move to the Northeast side of Waterloo. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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E E ) } ■ o CC 2 § § >t J kLo 0s0 u C § _ / \ ) ) ° § k C . ® a 2E % J 2 m o { E .0 0E 2Ep § 2 § § k 2 O ! 7 uu co ) 3 " 7 O W k w GI � z I- � 2 § G I CC \ \ I- &-cietap MINUTES COMMUNITY DEVELOPMENT BOARD MEETING October 17, 2006 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 17, 2006. Members present: Jim Carstensen; Elsie Duncan; Mickye Johnson, Larry Oltrogge, Gary Rankin, and Eric Johnson, Chairperson. Members absent: Bernie Stroh. Also present: Rudy Jones, Community Development Director; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Louis Starks, Contracts and Grants Coordinator; Ann Northey, Administrative Secretary; Quentin Hart, Developer and Tim Jamison,Waterloo/Cedar Falls Courier. Chairman Johnson suggested that the presentation by Quentin Hart be moved to the top of the agenda as a courtesy to Mr. Hart. A. APPROVAL OF THE AMENDED AGENDA. It was moved by Mickye Johnson and seconded by Elsie Duncan to approve the agenda as amended. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING SEPTEMBER 19,2006. It was moved by Mickye Johnson and seconded by Gary Rankin to approve the minutes of the regular meeting held on September 19,2006. Motion carried. Item F.2. QUENTIN HART PRESENTATION—GROUP WORKCAMPS Rudy Jones indicated with decreasing federal funds coming into the City, any source of funding that provides dollars for the community is a benefit. Mr. Hart has been working with representatives of the Group Workcamps to bring the project back to Waterloo in the Spring of 2007. Quentin Hart, explained the project called From the Heart, Waterloo Home Enhancement Funds,which is a co-sponsored project between various Waterloo agencies, community members and the Group Workcamps from Loveland, Colorado. This program brings together approximately 500 volunteers from various church and youth groups from around the U.S.,to provide weeklong home repairs to approximately 60-80 homes for the elderly and low-income residents. This project will begin July 29th through August 4, 2007. Mr. Hart explained the process to provide transportation, lodging and food for these volunteers for the week. Central Middle School will be the location where most of the volunteers will be housed. Minutes October 17, 2006 Page 2 Mr. Hart indicated they are seeking donations of approximately$19,000 from this community toward the purchase of materials for home repairs. He noted we must identify in advance the homes that will be targeted for improvement,mostly located in the third and fourth wards of Waterloo. Mr. Hart reviewed the timeline for the plan of action on this project and stated every volunteer must be enrolled in the WorkCamp program and there is a cost of$399.00 per person to participate. Board members asked numerous questions concerning the funding of volunteers and alternate locations to accommodate the group. Rudy Jones stated this information is to keep the Board informed of other funding opportunities, and it may become a two-three year project for the community. Mr. Hart suggested Community Development staff could assist by providing technical assistance, however there are trained surveyor teams that come in to identify the homes, order materials, and provide cost estimates for each project. Chairman Johnson indicated this sounds like a great project for the community. C. PUBLIC HEARING—Discuss Economic Development Initiative Grants 1. Amendment to B-04-SP-IA-0264 project description and budget. 2. Amendment to B-05-SP-IA-0482 project description and budget, and 3. Consider Project Description and Budget for B-06-SP-IA-0280 It was moved by Mickye Johnson and seconded by Larry Oltrogge to receive and place on file the affidavit for proof of publication, of a display ad for the public hearing as published in the Waterloo/CF Courier on October 9,2006. Motion carried. Rudy Jones explained that Special Purpose Grant B-04-SP-IA-0264 in the amount of$278,343 was received for Acquisition and Demolition of 220 Jefferson Street. The amendment changes the use to Acquisition and Demolition of 203 Jefferson Street. There will be no change in the budget. Rudy explained the Special Purpose Grant No. B-05-SP-IA-0482 in the amount of$198,400 was received for Acquisition and Demolition of a structure for the Cedar Valley TechWorks Project. The amendment allows all these funds to be utilized for construction of a storm water pumping station to allow Commercial Street construction access to the Cedar Valley Tech Works. Rudy then stated the Special Purpose Grant No. B-06-SP-IA-0280 in the amount of$396,000 was received for Acquisition and Rehabilitation of the Cedar Valley Tech Works facility. This allocation will be used to acquire and rehabilitate for occupancy the building to house the offices, laboratory and training space for the Cedar Valley TechWorks facility. The budget will be $39,600—administrative costs and $356,400—mechanicals for the building, i.e. plumbing, HVAC, electrical and some structural improvements. It was moved by Elsie Duncan and seconded by Mickye Johnson to Open the Public Hearing. Motion Carried. Minutes October 17, 2006 Page 3 Chairman Johnson noted for the record that no members of the public were in attendance. It was moved by Larry Oltrogge and seconded by Mickye Johnson to close the public hearing. Motion carried. Discussion continued on the 2nd special purpose grant for the pump station. Don Temeyer explained the necessity to divert the storm water and build this pump station. He noted we have applied for additional EDA funds to help fmance this project. It was moved by Mickye Johnson and seconded by Gary Rankin to authorize staff to submit these Amendments,Project Descriptions and Budgets on the Special Purpose Grants to the City Council for approval. On roll call: Jim Carstensen,Elsie Duncan, Mickye Johnson,Larry Oltrogge, Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. OLD BUSINESS. 1. Consider Rehabilitation Waiver for Contract Sellers (Tabled—August). Rudy Jones indicated the reason this item was tabled in August was due to the fact other Board members were not present for input. Chairman Johnson inquired if the Rehabilitation Contract and Mortgage would be signed by the Contract Seller? Mark Boesen, Manager of Rehabilitation Services indicated this Rehabilitation Waiver would be the only document the Contract Seller would be required to sign. Chairman Johnson suggested staff obtain a legal opinion on the Rehabilitation Waiver. If the Seller does not sign the mortgage,then a Notary Public should probably acknowledge the Waiver. Chairman Johnson indicated we want to help contract buyers improve their homes,however, it is not our intention to create a windfall for the contract seller should the contract be forfeited. Following discussion it was moved by Larry Oltrogge and seconded by Mickye o the use of the Rehabilitation Waiver, subject to legal review from the City Attorney. tioanpprove carried unanimously. 2. Forgivable Loan Mortgage Verbiage on Death of Homeowner(Tabl ed ( September). Chairman Johnson stated this item was tabled at the last meeting. Staff member Mark Boesen, indicated there is already a policy in place to release a forgivable mortgage following the death of a homeowner, if the heirs submit a written request. The current Forgivable Minutes October 17,2006 Page 4 Mortgage format includes this statement and staff is requesting that the wording be removed from the document. Board members Elsie Duncan and Mickye Johnson confirmed the original intent for placing this statement on the document. There were some elderly homeowners who did not want to participate in the rehabilitation program because of the five-year mortgage, and their home was the only thing they could leave for their heirs. Placing this wording on the actual mortgage confirmed Board action to forgive the debt upon death. Following considerable discussion,Board members concurred that the statement should remain in our mortgage documents. 3. Discussion on how to handle Lead-Only Rehabilitation Projects (Tabled—September) Board member Bernie Stroh requested further discussion on this item following the August meeting. Since Mr. Stroh was not present, Chairman Johnson indicated the item would be tabled a final time until the November meeting. 4. Christian Community Development/House of Hope—CDBG Allocation. Chairman Johnson reviewed the letter from Mary Schmitt,Executive Director of Christian Community Development/House of Hope,to relinquish the FY07 CDBG allocation for plumbing repairs at 222 Walnut Street in the amount of$50,000. Board members discussed the reuse of these funds. Rudy Jones indicated a staff recommendation would be to use these funds for the Emergency Repair Program. Mark Boesen stated the Rehabilitation Department has already received a number of emergency furnace calls with the beginning of the heating season. Mark noted the $10,000 recently allocated from Casino Funds has been exhausted. Chairman Johnson inquired if a formal public notice must be given to change the use of these funds? Rudy Jones indicated the dollar amount does not trigger a substantial change in a budget activity, so the $50,000 could be reallocated to the Emergency Repair Program. It was moved by Mickye Johnson and seconded by Jim Carstensen to accept the receipt of$50,000 allocated to Christian Community Development and reprogram those funds toward the Emergency Repair Program. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin,and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. E. NEW BUSINESS 1. Endorse Rehabilitation Contracts for September 2006 No comments were received on the September 2006 Rehabilitation Contracts report(copy attached). Minutes October 17, 2006 Page 5 It was moved by Jim Carstensen and seconded by Elsie Duncan to endorse the September 2006 Rehabilitation Contracts. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Selection of Subcommittee Members for FY08 Funding Cycle and begin notification process. Chairman Johnson requested volunteers to serve on the FY08 Funding Cycle Subcommittee,with one Board member carrying over from last year's committee. Gary Rankin and Elsie Duncan both volunteered to serve and Mickye Johnson will remain on the subcommittee for another year. 3. Confirm Subcommittee Meeting date October 27,2006. Rudy Jones indicated the first meeting of the FY08 Funding Cycle Subcommittee would be scheduled for October 27, 2006 to meet with City Council Liaison members prior to the kick-off of our funding cycle, which is scheduled for November 2, 2006. Chairman Johnson communicated the importance of involving the city council members in the block grant process. F. DISCUSSION ITEMS 1. Board Member Solicitation/Terms Chairman Johnson reported that all Board Member terms have expired. Rudy Jones stated he has discussed this matter with the Mayor and asked for an extension to allow current Board participation through this year's funding cycle. Rudy requested that current Board members continue to serve until spring, or until new Board members could be solicited. He also requested Board input on any potential new candidates who may be willing to serve in this capacity. Chairman Johnson advised all current Board members should let Rudy know if you have interest in continuing to serve on the Board. New members will be solicited after March 2007. 3. Update on Request for Proposals—Lafayette Street Properties. Rudy Jones indicated two proposals were received, one from David Deeds, Cedar Valley Restoration and Development and one from Jeff Wolf of Brothers Construction. The 1002 Lafayette Street property purchased by the city has extensive termite damage and this property may be infeasible for rehabilitation. It has been determined this property should be demolished to make the site available for new construction. There are differing opinions on the 1010 Lafayette property. One approach is to demolish for new construction or still consider for rehabilitation. New proposals may need to be submitted. Rudy indicated the staff has expressed some concern about contractor performance on some other projects. Another property to the east of 1010 Lafayette will be added to this half block area, so the staff is still working out final details for several different options to pursue on this project. Minutes October 17, 2006 Page 6 Mark Boesen indicated the Rehabilitation Staff assessed these properties and felt the best use would be for demolition and new construction to make these lots more marketable. Rudy indicated no Board action is required at this time. 4. Homeless Coordinating Board—Campout for Homelessness 2006. Nancy Gulick reminded the Board of the campout sponsored by the Homeless Coordinating Board at Black Hawk Park on November 10, 2006. 5. Cedar Valley Housing Fair—October 31,2006. Donna Lesyshen indicated Crossroads Center is allowing us to set up the Housing Fair to provide outreach to potential home buyers. Other Discussion: Mickye Johnson recommended that on the Contractor Evaluations, all positive comments should be kept on a log for future reference. Rudy Jones advised the application for the new Lead Grant was not approved. He noted that no city in Iowa was awarded grant funding this year. The Staff is to be commended for their outstanding work in meeting, and sometimes exceeding,the benchmarks that were required on the current lead grant. Don Temeyer mentioned that 738 Mobile has been taken down next to the Stokes project, and this makes a huge difference in the neighborhood. Don also mentioned the meeting concerning the redevelopment of the Chamberlain site and invited Board members to attend that meeting coming up in December. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary • a 1 E o e• q E W c E a 7 n m o C E E me TO o El a ! 3 i i 3 6 1 EW e -0E L 0 0 a 3 8 E ^ o w o n 0 a S P. e o � E c_ •S c m la m e s' N V O O w a ¢ 6 i I g w 3 2 E m E § t -m t a n a r2 a a o 1 O O O 0 0 0 0 O O O O O O O co O O O O F- ^ N f- F F,• O O O O O O 1 00 n N O 0 O GOD CO00 N Oaf z co a00 O N M O 001 < 0. h ¢ N N N IA w w IA w w CO f0 0 O F F w 0 0 0 0 w 0 0 0 0 NO "eiN < 0N0 N N N ¢NN❑ N NI I , I- i- N)co_ a k 1- r m 0))m o) rn rn i z z z F' z U U U 0 0 y W O p p Q O a cc O p O co at K CC`0 R3 Q L m Q U U O O U 0 0 E . 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Members present: Jim Carstensen; Elsie Duncan; Mickye Johnson, Gary Rankin, and Eric Johnson, Chairperson. Members absent: Larry Oltrogge and Bernie Stroh. Also present: Donald Temeyer, Community Planning and Development Director; Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Ann Northey, Administrative Secretary; and Pattie Kuebler, St. Mary's Villa. A. APPROVAL OF AGENDA. It was moved by Mickye Johnson and seconded by Elsie Duncan to approve the agenda as mailed. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON AUGUST 15,2006. It was moved by Jim Carstensen and seconded by Elsie Duncan to approve the minutes of the regular meeting held on August 15,2006. Motion carried. C. PUBLIC HEARING—FY2006 CONSOLIDATED ANNUAL,PERFORMANCE AND EVALUATION REPORT (CAPER). It was moved by Elsie Duncan and seconded by Mickye lace affidavits for proof of publication, both legal and display ads for the public hearing as onub file the Waterloo/CF Courier on September 3, 9, 10, 11 and 12,2006. Motion carried. p fished in It was moved by Elsie Duncan and seconded by Jim Carstensen to Open the Public Hearing. Motion Carried. Chairman Johnson noted for the record that no members of the public were in attendance. Rudy Jones stated HUD is compelling us to report performance measurement systems, and Rudy commended Nancy Gulick for making these transitions as smoothly as possible with respect to our Integrated Disbursement Information System (IDIS)reporting system. Staff noted that no comments have been received to date concerning the CAPER. Minutes September 19, 2006 Page 2 With no additional comments or questions concerning the report it was moved by Mickye Johnson and seconded by Jim Carstensen to close the public hearing. Motion carried. It was moved by Jim Carstensen and seconded by Mickye to the Dehnson o authorize staff to artment of Housing and the Consolidated Annual Performance and Evaluation ReportP Urban Development before September 30,2006. Motion carried. OLD BUSINESS. 1. Forgivable Loan Mortgage Verbiage on Death of Homeowner—Tabled in August. Chairman Johnson indicated this item was tabled at the last meeting because Board member Mickye Johnson,who had strong concerns with this issue,was not available to discuss the item. Staff member Mark Boesen,who initiated discussion on this agenda item, could not attend this meeting. Therefore,the Chairman asked to table the item once again to be discussed at the October 17th meeting. It was moved by Mickye Johnson and seconded by Elsie Duncan to table this item until the next meeting in October. Motion carried. E. NEW BUSINESS 1. Request for Subordination from Black Hawk County Abstract/Wells Fargo and to waive $300 fee on forgivable loan at 1417 Bowers Street—Dawson, owner. Rudy Jones indicated this rehabilitation was recently completed,however,the file was not closed out because the property owner, Sarah Dawson had filed a grievance against us. During the timeframe of our rehabilitation assistance,the owner made arrangements to refinance her original home loan,however, did not mention our rehabilitation assistance to the bank. getrecordedWhen shortly after the refinance tookd their lien ,our place, mortgage had not yet been recorded,however, therefore placing the city's lien ahead of the bank lien on the property. Rudy indicated the staff recommendation is to subordinate, contingent upon whether the homeowner will sign off that the work is complete on the property. He noted,waiving the subordination fee is the Board's decision. Chairman Johnson reviewed information provided on the settlement statement,noting some judgments were also being paid off. Chairman Johnson indicated when we worked on this home,there was a $52,000 mortgage in front of us that got paid off and Wells $70 000 loan recorded behind ourg Fargo was not aware of the ivable Development Forgivable Loan in progress. Now there is mortgage. Rudy indicated,there is still the issue of the homeowner signing off on the project. The building department has signed off that the project is complete,but the homeowner has not agreed to sign off. The homeowner has numerous complaints about her windows,the siding, and insulation,and we were advised by her attorney that all communication had to be conducted through her attorney. ti Minutes September 19, 2006 Page 3 Chairman Johnson inquired if we have gone through the grievance procedure and Rudy indicated that we have done this through her attorney,John Holmes. All correspondence has been sent to the attorney and Rudy shared some excerpts from the letters sent to Mr. Holmes which identified specific items of concern. Chairman Johnson disclosed that he could not vote on this matter since he represents Black Hawk County Abstract Company, who is the closing agent. Elsie Duncan stated the request form indicates this loan is to pay off judgments and other debt. Chairman Johnson explained the HUD 1 pays off the Citi Mortgage 1st mortgage at$52,000 and then some towards refinancing fees and other judgments. It was moved by Jim Carstensen to subordinate to Wells Fargo on this forgivable loan. Chairman Johnson declared the motion died for lack of a second. Following additional discussion it was moved by Gary Rankin to authorize subordination to Wells Fargo only up to the original$52,000 owed on the property prior to our forgivable loan. Motion seconded by Elsie Duncan. Elsie Duncan questioned Rudy on his recommendation for subordination, since the project has not been closed out. Rudy indicated his concern of a subordination when the homeowner in essence had not signed off that the project was actually complete, and noted he wanted the Board aware of this fact. Considerable discussion continued on the subordination fee and timing on closing these loans. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson and Gary Rankin voted Aye. Nays: None. Abstain: Chairman Eric Johnson. The Chairman declared the motion carried. Chairman Johnson indicated the second issue is the waiver of the $300 subordination fee. It was moved by Mickye Johnson and seconded by Jim Carstensen not to waive the$300.00 subordination fee on this request from Black Hawk Abstract Company/Wells Fargo for the property at 1417 Bowers Street—Sarah Dawson, Owner. On roll call: Jim Carstensen, Elsie Duncan,Mickye Johnson and Gary Rankin voted Aye. Nays: None. Abstain: Chairman Eric Johnson. The Chairman declared the motion carried. Chairman Johnson indicated the third item is with regard to Ms. Sarah Dawson's failure to sign off on the repairs that have been made. Elsie Duncan indicated correspondence with her attorney has not been answered, so the ball is in her court. Mickye Johnson suggested giving the homeowner a timeframe to respond before her file is closed. Rudy Jones indicated the letter sent August 4, 2006 to Ms. Dawson's attorney gave a deadline of August 14, 2006. There has been no response to date. Minutes September 19,2006 Page 4 Chairman Johnson asked for further action, and there was no additional response from the Board. 2. Update from CDBG Subrecipient, St. Mary's Villa regarding contractual obligations. Ms. Patti Kuebler of St. Mary's Villa responded that when she reported the property was up for sale,they had hoped the Villa would be split off and not made a part of the whole campus at St. Mary's Villa. But this is not the case and the whole complex must be sold as one unit. Ms. Kuebler also noted they currently have only 13 residents,with a capacity of 22. Since they have not been able to keep up their occupancy they have reached a crisis point in their fmances. Rudy Jones indicated block grant funding was provided to the Villa for fire doors and other repair work. Chairman Johnson questioned if there was a mortgage filed, or repayment of the funds if the Archdiocese sells the property. Nancy Gulick indicated if the complex is sold, and the Villa continues to function as a residential facility, the agreement would remain in place with no repayment of funds, if that was the decision of the Board. However, if the facility is sold and used for apartments,then the Board can request repayment of funds. Patti Kuebler indicated the present concern now is that they cannot continue to function as a residential facility. They will have to close the Villa because they are financially strapped. Chairman Johnson stated financially, St. Mary's Villa made a commitment to the Community Development Board and they are a tenant in this facility. Chairman Johnson inquired if there is a lien filed against the landlord's property for actions by the tenant? Nancy Gulick indicated there is no lien filed against St. Mary's Villa. Chairman Johnson indicated if we filed something of record it would put everyone on notice, including any future buyer,that we need repayment of these funds. It is only prudent for the Board to file an affidavit of record for this agreement. Questions arose concerning the HUD regulations on repayment of funds over$25,000 and it was suggested by Chairman Johnson to get a legal opinion on the interpretation of these regulations. It was moved by Mickye Johnson and seconded by Gary Rankin to file a claim of record for the Subrecipient Agreement with St. Mary's Villa and ask for a legal opinion concerning repayment of funds. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Minutes September 19,2006 Page 5 3. Discussion on how to handle Lead-Only Rehabilitation Projects. Nancy Gulick indicated this item was requested by Bernie Stroh for additional discussion. Chairman Johnson recommended tabling this item to the next meeting since Mr. Stroh was not present. 4. Endorse Rehabilitation Contracts for August 2006 No comments were received on the August 2006 Rehabilitation Contracts report(copy attached). It was moved by Elsie Duncan and seconded by Gary Rankin to endorse the August 2006 Rehabilitation Contracts. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson, Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 5. Set date of public hearing for October 17,2006 on Amendment to Economic Development Grant Nos.B-05-SP-IA-0482 and B-06-SP-IA-0280 use of funds for construction of storm water pumping station at Commercial Street. Don Temeyer explained the plans for demolition of some buildings and road construction in the area of the Cedar Valley Tech Works. The City will be building the road to connect to Highway 63 and Commercial Street. The storm water will be rerouted so it does not contaminate any water at Deeres. Don explained these are Economic Development appropriations that we are administering for the city. It was moved by Elsie Duncan and seconded by Jim Carstensen to set the date of public hearing for October 17,2006 on the Amendment to EDI Grant No.B-05-SP-IA-0482 and B-06-SP-IA-0280 for the proposed use of funds as discussed. Motion carried. F. DISCUSSION ITEMS 1. Housing Fair—October 2006 Rudy Jones indicated the Cedar Valley Housing Fair will be held at Crossroads Center, October 31, 2006 to generate some awareness for home ownership opportunities. Nancy Gulick reported the Homeless Coordinating Board—Campout,November 10th at Black Hawk Park will be held to raise funds for public awareness for homelessness. All donations are welcome and more information will be directed to the Board. Mickye Johnson inquired whether staff conducted any follow-up investigations on negative comments received on the Rehabilitation Comment Sheets. He asked that the Board be informed of the outcome when items are investigated. Minutes September 19, 2006 Page 6 Rudy responded that the staff does address these comments. This particular case being referred to is where the homeowner alleged that the electrician cut the wires to their doorbell. The electrician installed a new doorbell and the matter was resolved. Mickye Johnson asked that staff report any resolutions to problems before the survey is sent to the Board for review, so they are aware of the outcome. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. 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Also present: Donald Temeyer, Community Planning and Development Director; Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Louis Starks, Contracts and Grants Coordinator; Mark Boesen, Manager of Rehabilitation Services and Ann Northey, Administrative Secretary. A. APPROVAL OF AGENDA. It was moved by Elsie Duncan and seconded by Jim Carstensen to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON JUNE 20,2006. It was moved by Elsie Duncan, and seconded by Jim Carstensen to approve the minutes of the regular meeting held on June 20,2006. Motion carried. C. OLD BUSINESS. 1. House of Hope Funding Request. Chairman Johnson reviewed correspondence from Mary Schmitt, Director of the House of Hope. The Chairman noted the Board approved a previous request from House of Hope to re-allocate $50,000 of their FY06 funding for the 222 Walnut Street facility toward the purchase of the Queen of Peace Church/School. Ms. Schmitt is now withdrawing that request and asked the Board to be aware of this change. Chairman Johnson indicated no dollars have actually been switched over, so the original intent of the 222 Walnut Street project remains at$50,000. No formal action is required on this request. 2. Operation Threshold Repayment of LHAP Funds. Rudy Jones indicated with delays in reporting and no designations for the Local Housing Assistance Program funds, Operation Threshold was directed to repay those funds to the City. Two installments have been made and the latest one was in the amount of$121,898.56, which was short about$1.40. Rudy indicated approximately$108,000 remains to be repaid. The state intends for these dollars to be Minutes August 15, 2006 Page 2 utilized for housing initiatives, such as rehabilitation, new construction or any other housing related activities. D. NEW BUSINESS 1. Confirm telephone/email poll for Subordination Request from U.S. Bank on Down Payment Assistance Forgivable Loan at 253 Baltimore Street—Maben,Homeowner. Rudy Jones indicated U.S. Bank cancelled the subordination request. Mark Boesen stated the window company chose to finance the window replacement project at 253 Baltimore Street. No action is required. 2. Rehabilitation Subcommittee Report a. Down Payment Assistance Agreement with Iowa Northland Regional Council of Governments (INRCOG) Chairman Johnson disclosed the fact that he is counsel for INRCOG and would not be voting on this issue. Nancy Gulick indicated staff is recommending the American Dream Down Payment Initiative(ADDI) funds received through the State of Iowa by both INRCOG and the City would be combined to provide up to $29,000 worth of Down Payment Assistance in the sale and purchase of the new construction homes. The State has agreed to this joint effort and approved the agreement preyc4L d by INRCOG. Nancy explained the ADDI funds are actually HOME funds received from the State of Iowa in the amount of$100,000 this year to be utilized at$10,000 per dwelling for new construction. We now actually have $200,000 and by combining these funds with INRCOG's funds we can provide additional assistance to 20 homes utilizing the following breakdown: $10,000 -ADDI funds from the State of Iowa $ 5,000 -City of Waterloo—Down Payment Assistance $ 6,000 -New Construction HOME Funds $ 8,000 - INRCOG's HOME Funds $29,000 - TOTAL (Possible Funds) Chairman Johnson questioned whether INRCOG understands that these funds can only be utilized on Waterloo homes? Ms. Gulick indicated they are aware. It was moved by Elsie Duncan and seconded by Bernie Stroh to approve the Down Payment Assistance Agreement with Iowa Northland Regional Council of Governments in the amount of $29,000 per new construction home. On roll call: Jim Carstensen,Elsie Duncan and Bernie Stroh voted Aye. Nays: None. Chairman Eric Johnson abstained. The Chairman declared the motion carried. Minutes August 15, 2006 Page 3 b. Mt.Village Apartments HOME funded project closeout. Rudy Jones indicated several years ago we entered into a contract with Mt. Village Apartments to repair some roofs on their rental units. We discovered over the course of time that the HOME regulations were misinterpreted and inappropriately applied to those funds. The Mt. Village project has been in foreclosure and staff has been in dialogue with HUD for technical assistance to bring the project into compliance. Our HUD representative has indicated the best way to resolve this issue is to terminate the original contract with Mt. Village and repay the funds in the amount of approximately$75,000. It was moved by Bernie Stroh and seconded by Jim Carstenson to cancel the project and repay the HOME funds out of another funding source. Rudy Jones indicated we need to know where the repayment dollars will come from and suggested the Local Housing Assistance Program(LHAP) funds. Chairman Johnson stated the $121,000 recently returned from Operation Threshold could be utilized for this purpose. On roll call: Jim Carstensen,Elsie Duncan,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. c. HOME Agreement with Shelter Construction for New Infill Construction. Rudy Jones indicated that at the last Board meeting staff was instructed to contact Greg Glidewell, owner of Shelter Construction, and proceed with the construction of another unit. Rudy reported that in meeting with Mr. Glidewell,he insisted on not taking ownership of the project as owner/developer, he only wanted to be the general contractor on the project. This was not the purpose or original intent of the Infill Construction Program. Rudy Jones suggested the best route would be to recapture the dollars allocated to Shelter Construction on the initial project. Following discussion,it was moved by Bernie Stroh and seconded by Elsie Duncan to terminate the Subrecipient Agreement with Shelter Construction for use of FY2006 HOME Program funds for New Construction activities, and initiate legal action to recapture the funds disbursed on this project. Chairman Johnson indicated he would abstain for the vote, since he had done work for Shelter Construction in the past. On roll call: Jim Carstensen, Elsie Duncan and Bernie Stroh voted Aye: Nays: None. Chairman Johnson abstained. The Chairman declared the motion carried. d. Review proposed format for Requests for Proposals (RFPs) for the Cedar River Neighborhood Rehabilitation/New Construction Housing. Minutes August 15, 2006 Page 4 Chairman Johnson stated a draft of the Request for Proposals for the Cedar River Neighborhood Rehabilitation/New Construction Housing project was included in the Board packets for review. Rudy Jones indicated this proposal is similar to the RFP we utilized on the first infill construction project, however, it has been slightly changed to include the rehabilitation needs, based on the fact the city acquired the Hedges properties in the project area. HOME funds are being utilized,therefore,we must include the affordability requirements and, of course the rehabs must include the lead-based paint requirements. The Chairman reviewed the four parcels in question. Bernie Stroh indicated the Rehabilitation Subcommittee suggested combining lots since the four lots are so small. This would make room for garages on the property. Chairman Johnson indicated,we are trying to sell older homes, in an older neighborhood and combining lots would make it a more attractive package. Rudy Jones indicated since the city owns the lots, it could easily be replatted. Following discussion on manufactured homes, Board members instructed staff to limit the number of structures on these sites. The Board concurred to change the Request for Proposals to rehabilitate two properties and possibly construct one new dwelling, for a total of two or three units. Chairman Johnson stated the developer that brings forth the best site plan would be utilized. e. Owner-occupied Single Family Rehabilitation concerns regarding ownership status (multiple deed holders). Mark Boesen, Manager of Rehabilitation Services, reviewed the contract/purchaser policy change on situations where the seller forecloses on a property and it goes back to the contract seller. Several options available would be to require the contract seller to confirm in writing that they would make the home available to another low-income person meeting our guidelines, or we can take contract sellers totally out of the program. Mark indicated we have no way of recapturing funds on a contract/purchase property. Mark Boesen stated in talking with the staff,this stipulation could be added; "if property is foreclosed on under contract purchase agreement, deed holder signs agreement saying they will only sell the property either by contract or conventional loan to person(s)who will meet the Community Development Income Guidelines based on the eighty(80%) of median income rate for the balance of the original five-year forgivable mortgage. Bernie Stroh inquired if the deed holder would sign this ahead of time? Mark Boesen indicated this would be the case. Board members indicated this would be a fair stipulation and did not want to limit rehabilitation assistance to contract purchasers. Minutes August 15, 2006 Page 5 Chairman Johnson inquired if we are treating contract purchasers different than homeowners who have bank mortgages? Mark Boesen indicated many of the low-income clients will not qualify for a conventional loan, based on past credit issues. Chairman Johnson indicated his only concern is with the contract seller who will not sign off on a property, and then the homeowner will not benefit from our assistance. Mark indicated the other item is on the current wording of our forgivable real estate mortgage. He noted there is an actual policy in place that the Board voted on to forgive the mortgage upon death of the owner, if requested by the heirs. Mark questioned, since this is a written Board policy, does this statement need to appear in the mortgage itself. Chairman Johnson stated this issue was discussed some time ago, and some Board members felt these mortgages should be dealt with on a case-by-case basis. The Chairman noted Mickye Johnson had spoken with people who would not accept the rehabilitation assistance unless they were assured the mortgage would be forgiven upon their death. Chairman Johnson asked that this matter be tabled until the next meeting, for further discussion and input from Mickye Johnson. It was moved by Bernie Stroh and seconded by Jim Carstensen to table this item until the September meeting. Motion carried. Mark Boesen reviewed the next issue of multiple deed holders on the property. The person actually living in the dwelling is a low-income person,however the other individuals/siblings on title would not qualify, yet they still have a vested interest in the property. Rudy Jones indicated we have attempted to get everyone to sign off on the mortgage, or give the deed holders time to clean up the title. If we cannot get the parties to agree,then the case is closed and no assistance provided to the owner/occupant. Chairman Johnson indicated our rehabilitation program is limited to low-moderate income persons. He questioned,if the occupant is low income, but the other titleholders, who do not occupy the home, are not considered low income, do all participants need to meet the low-income guidelines? Rudy Jones stated the HUD regulations state the owner/occupant must be low income. Chairman Johnson asked if the Board wanted to be more stringent on those guidelines? This means that all titleholders would need to be low and moderate income, not just the owner/occupant. The staff indicated it could be difficult to get income verifications from other titleholders that do not live in the property, and may reside in other parts of the country. Bernie Stroh indicated all owners should • Minutes August 15, 2006 Page 6 have to sign on the mortgage. He stated the occupant must meet the guidelines, but others should have to sign on the mortgage. It was moved by Bernie Stroh and seconded by Jim Carstensen to set Board policy that in the event there is more than one deed holder of a rehabilitation property,the owner/occupant must qualify and meet the low-moderate income guidelines,and all other titleholders on the property must sign off on the mortgage. The Chairman declared the motion carried unanimously. Chairman Johnson asked to revisit the request presented by Mark Boesen on the Contract Purchase Policy Change. He noted Mark has proposed asking the Contract Seller to sign a statement that if the property is forfeited they will acknowledge to only re-sell the property to someone who meets the low-moderate income criteria—just through the balance of the forgivable loan period. Following discussion, it was moved by Bernie Stroh and seconded by Elsie Duncan to change Board Policy on Contract Purchase properties as follows: Homeowner must own or be buying property either by recorded mortgage or contract for not less than one year. A contract purchaser is not considered to be the sole owner of a property,therefore, the Contract Seller will be required to sign an agreement stating that in the event of a forfeiture of contract,the Contract Seller will be required to sell the property to a person(s)who meet the Community Development Income Guidelines based on the 80% of median income,for the balance of the original five-year forgivable mortgage. The Chairman declared the motion carried unanimously. e. Endorse Rehabilitation Contracts for June and July 2006. No comments were received on the June and July 2006 Rehabilitation Contract reports (copies attached). It was moved by Elsie Duncan and seconded by Jim Carstensen to endorse the June and July 2006 Rehabilitation Contracts. On roll call: Jim Carstensen,Elsie Duncan,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. E. DISCUSSION ITEMS 1. Staff Certifications: Rudy Jones indicated most of the rehabilitation staff is up to speed on their necessary certifications. He noted Mark Boesen has already completed his lead training with only a few certifications yet to obtain. • Minutes August 15,2006 Page 7 2. Set date of public hearing for September 19th on Consolidated Annual Performance/Evaluation Report(CAPER). It was moved by Jim Carstensen and seconded by Elsie Duncan to set the date of public hearing on the CAPER for September 19,2006 at the regular Board meeting. The Chairman declared the motion carried. Elsie Duncan commented on the Rehabilitation Evaluation form for the property at 1003 Burton Avenue. She noted the homeowner reported it took 13 years to receive assistance. Bernie Stroh indicated,there are many individuals who wait on the list and never qualify for assistance. Rudy Jones indicated there are a number of projects going. There are some amendments to the Section 108 project concerning Lane Street that didn't make the initial documentation for approval. Don Temeyer indicated the amount of funds was correct, but the street wasn't included in the project description. He noted a change order would be required to get this information into the contract. F. ADJOURN MEETING With no further business to come before the Board,the Chairman adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary 0. E m 3 5 2 E 0 m gg • c O as rn 8C • o E • V y C C .c C 3 Wr 0 3 ° � c v (0 (fl C v+33 3 m g $ d d E a) 1m .2 00 0000 0 0 r,-0 0 0 0 00 0000 0 o no 0 0 0 • z F- •. z h (V F" O O N O t0 ~ cc; ' 0) CV M Z Z z CO N z CD CO 0) '- Z r 'cf 0) CO N. 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Um rn .0 co co aUUUUU co co000U' U' RS o t y J O a L ..... ,a Cl) to o = O a µ' C .D. 0 CD Z o C G) •vo CD 0 c O 0 L. •c a tti te) 0 J a) t o 00 �w a/ c C(Q� COcn c� Cl) V .a t0) � oI) ,c N �p CV C W -0 • E CI) W 43 O W .0 W V YO_' L N �.3 .L l0 N w., m CI 2 ' 0 E 0 • 2 0 . < C V) C Nto ` � c O c N C -) i W Z � F- W z I— 0 F- —I z 0 Lil 1- I— it Y C 0 W F`- r MINUTES COMMUNITY DEVELOPMENT BOARD MEETING June 20, 2006 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 20,2006. Members present: Jim Carstensen; Elsie Duncan; Mickye Johnson; Larry Oltrogge; Gary Rankin; and Eric Johnson, Chairperson. Members absent: Bernie Stroh. Also present: John Kincaid, Council Liaison; Donald Temeyer, Community Planning and Development Director; Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary,and Greg Glidewell, Shelter Construction. A. APPROVAL OF AGENDA. It was moved by Mickye Johnson, and seconded by Jim Carstensen to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON MAY 16,2006. It was moved by Larry Oltrogge,and seconded by Elsie Duncan to approve the minutes of the regular meeting held on May 16,2006. Motion carried. C. OLD BUSINESS. None. D. NEW BUSINESS 1. Review of HOME Agreement with Shelter Construction for New Infill Construction. Rudy Jones, Community Development Director, stated that Shelter Construction was asked to provide information for the Board to review prior to this meeting, however, no information was received to include with the Board packets. Therefore, Greg Glidewell of Shelter Construction agreed to attend the meeting to answer questions and explain his situation in person. Rudy further noted in order to remove the City from any potential association in litigation, due to legal matters involving Mr. Glidewell and another partner,Mr. Glidewell proposes to repay the HOME funds he has received to-date in the amount of$15,043 on his Quincy Street new construction project. The Board will need to amend and/or terminate his existing contract and enter into a new agreement for construction of the remaining infill structures. Minutes June 20, 2006 Page 2 Greg Glidewell addressed the Board and offered to repay the funds he had been awarded for the Quincy Street project, contingent upon the sale of a second house currently under contract through the Waterloo Housing Partnership Down Payment Assistance Program. Mr. Glidewell suggested he would repay the funds on a monthly basis, at$5,000 each month beginning in August 2006. Larry Oltrogge questioned in what form the funds would be repaid. Greg Glidewell stated he is building a custom home for a man that has completed the Home Buyer Education course, and meets the guideline requirements to purchase the home. Mr. Glidewell stated this man requires money to be advanced for this home to get built. Mr. Glidewell further stated this would allow him to pay back the $5,000 per month as this action would provide adequate cash flow to go forward on the second project and allow him to pay back the funds disbursed on the Quincy project. Mr. Glidewell stated he would like to resolve the Quincy project and keep it within the new construction program. Chairman Johnson asked for an explanation of the Quincy project. Rudy Jones stated that the Quincy project is one of the HOME funded projects we funded for Shelter Construction to build newly constructed homes for low-moderate income families. Rudy stated that Mr. Glidewell ran into some litigation problems. The home is basically built and close to being sold but there are some litigation problems between Mr. Glidewell and another partner,which brings the City into the situation. Mickye Johnson questioned what was the total dollar amount that was allocated to this project. $10,000 per house was allocated for each new house. Greg Glidewell responded that one house is completely built and site preparation work has been started on a second property. Rudy stated it is necessary for the city attorney to review the contractual agreement between the parties, because Mr. Glidewell does not actually own the house on Quincy Street, it is owned by Betty Seamans. Chairman Johnson clarified the issue, stating the Quincy project was constructed by Shelter Construction utilizing HOME funds,built on land owned by the Seamans. Board members confirmed that HOME funding was provided to assist the developer/builder only. Rudy Jones indicated the contract the City entered into was with Shelter Construction and no other party. Donna Lesyshen explained the parameters for down payment assistance on this type of new construction, making sure the home buyer qualifies for assistance and meets HOME Program guidelines. Rudy Jones stated Mr. Glidewell has offered to pay back the funds to keep the city out of the litigation and have no federal strings attached to the Quincy Street property. Mrs. Seamans brought suit against Shelter Construction for some unresolved concerns. If these matters can be resolved satisfactorily,the project could remain in the program,however,Mr. Glidewell has suggested we remove this property from the program so he can move forward on his next project. Discussion continued on guidelines for the program. Greg Glidewell requested additional funds to complete his next project. Minutes June 20, 2006 Page 3 Donna Lesyshen explained the developer funds and home buyer funds are distinctly two separate funding sources and are not to be combined. Board members discussed the cleanest way to resolve this matter would be for Mr. Glidewell to repay the funds. Gary Rankin suggested that Shelter Construction proceed with the next project that is currently half completed and include staff recommendations for the lot to be owned by the developer. Rudy Jones stated there were no construction related concerns regarding the project on Quincy. Larry Oltrogge recommended that we first deal with the Quincy project problems,prior to moving forward on any further matters with this developer. Mickye Johnson questioned what would happen if no motions were made at this time. Chairman Johnson stated that with no action from the Board, Shelter Construction would have to wait for the outcome of the Quincy project, and would probably lose the new housing project that he's currently requesting further HOME funding on in an attempt to complete. Discussion ensued regarding the best way to handle this matter. Chairman Johnson indicated if we allow the projects to move forward we stand a better chance of being repaid. Nancy Gulick explained the difference between the dollars provided for the down payment assistance program and the new infill construction program. She noted the intent of the infill program was for the developer to own the property and build his new units on it,whereby subsidizing the developer and not the buyer/home owner. Gary Rankin suggested we allow Mr. Glidewell to proceed with his next project, as long as he owns the property he is developing, as set forth in the guidelines. Rudy Jones indicated copies of all contracts should be presented for the City Attorney to review. Chairman Johnson reviewed the discussion,that we will allow Mr. Glidewell to repay the $15,000+ dollars by crediting it on his 3`d project, and when he is at a point and entitled to this payment we will credit$10,000 on this property, which will offset his account and he will owe us $5,000—plus three more houses. Following additional discussion,it was moved by Elsie Duncan and seconded by Mickye Johnson to instruct the staff to allow Greg Glidewell of Shelter Construction to repay the$15,043.00 by crediting$10,000 of the amount due at the time that he would be eligible for HOME funds for the third housing project to be built, and that any future housing construction sites be owned by him to discourage this type of problem in the future. Shelter Construction will still have an outstanding balance due of$5,043.00, and Mr. Glidewell will be required to produce three more housing projects to meet the requirements of his contract. Minutes June 20, 2006 Page 4 On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, Eric Johnson,voted Aye. Nays: None. The Chairman declared the motion carried. 2. Endorse Rehabilitation Contracts for May 2006. No comments were received on the May 2006 Rehabilitation Contracts report. It was moved by Mickye Johnson and seconded by Larry Oltrogge to endorse the May 2006 rehabilitation contracts. On roll call: Larry Oltrogge, Gary Rankin,Mickye Johnson,Elsie Duncan,Jim Carstensen,Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Re-Allocation of FY2006 CDBG Funds From Waterloo Housing Partnership Activity To Neighborhood Services Activity. Nancy Gulick, Community Development Coordinator, sent a memorandum to the Board dated June 6, 2006, requesting a funding reallocation of$2,500.00 from Fiscal Year 2006 CDBG funds to be taken from Waterloo Housing Partnership and reallocated to Neighborhood Services. Nancy stated that last summer when the allocation was determined, we needed to reduce Neighborhood Services budget to meet our 15% cap for Public Services, so they were shorted. Since we are reallocating from Waterloo Housing Partnership, also a Public Service, we will still be within our 15%allowed. It was moved by Elsie Duncan and seconded by Larry Oltrogge to approve the reallocation of funds in the amount of$2,500.00. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin,Eric Johnson,voted Aye. Nays: None. The Chairman declared the motion carried. 4. Adoption of Documents For Grant Applications: Code of Conduct,City of Waterloo Iowa; and Residential Anti-Displacement and Relocation Assistance Plan. Nancy Gulick stated,per the memorandum dated May 31, 2006,that we are required to submit specific documents for grant applications, or upon receipt of grant funds,per HUD requirements. The documents must be reviewed and approved by the Board prior to being submitted to the Waterloo City Council for their consideration and approval. The Code of Conduct has already been approved by HUD and is currently in use by the Waterloo Housing Authority. With no further discussion,it was moved by Gary Rankin and seconded by Mickye Johnson to adopt these forms and submit them to the City Council for approval. (See copies attached.) Motion carried. 5. Addition of Liberty Bank as a WHIP Participating Lender. Minutes June 20, 2006 Page 5 Donna Lesyshen, Waterloo Housing Partnership Coordinator, stated that banks are not required to provide any additional funding into the Home Buyer Education program since its inception in 1999, when minimal funds were provided for marketing purposes. Donna noted all current lenders associated with the Waterloo Housing Partnership program were contacted concerning the addition of Liberty Bank as an additional lender for the first time home buyers, down payment program. It was moved by Jim Carstensen and seconded by Elsie Duncan to approve the addition of Liberty Bank as a WHP Participating Lender. Motion carried. E. DISCUSSION ITEMS 1. Update on HUD Funding. Discussion ensued regarding the current and proposed budget for CDBG funds, with emphasis on the proposed funding allocation for FY2007 to be $834,000, down from$1,418,000 in FY2006. Chairman Johnson questioned if a skeleton plan had been discussed to address this issue with staff. Rudy Jones stated that nothing has been discussed to date, but that a staff meeting will be held during the following week to make staff aware of these possible cuts. Rudy stated that he and Don Temeyer, Community Planning and Development Director, are also planning to meet with Mayor Hurley this week to inform him of the situation and discuss possible ideas. 2. Technical Assistance for National Cattle Congress Environmental Review. Rudy Jones stated that due to Nancy Gulick's expertise in handling environmental review matters, she has been asked by the National Cattle Congress to assist them in an upcoming project. Nancy stated that we are required to be the certifying agent for any HUD funds dispersed within the City requiring the Mayor's signature,therefore, it is in our best interest to be involved in the process. Chairman Johnson questioned whether administrative costs were stipulated in the grant request to cover the cost for Nancy to perform this function for the National Cattle Congress. Discussion began regarding the relevance of including administrative costs in future grant applications to cover the costs to the City to perform this service, as CDBG funding is continually being cut. Chairman Johnson made the recommendation to create a policy stipulating a fair, standard,reimbursable amount to be charged for services provided by the City in these types of cases,unless the City Council were to waive any fees or charges. Further discussion ensued regarding this matter. Chairman Johnson stated that we should consider this matter further, and review it at the next scheduled Board meeting. F. ADJOURN MEETING With no further business to come before the Board, Chairperson Johnson adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary CODE OF CONDUCT City of Waterloo,Iowa PURPOSE The purpose of the code of conduct is to ensure the efficient,fair, and professional administration of federal grant funds in compliance with 24 CFR 85 (85.36(b)(3)) and other applicable federal and state standards,regulations, and laws. APPLICATION This code of conduct applies to all officers, employees, or agents of the City of Waterloo engaged in the award or administration of contracts supported by federal grant funds. REQUIREMENTS No officer, employee, or agent of the City of Waterloo shall participate in the selection, award, or administration of a contract supported by federal grant funds if a conflict of interest,real or apparent,would be involved. Such a conflict would arise when: • The employee, officer or agent • Any member of his/her immediate family • His/her partner or • An organization that employs, or is about to employ any of the above has a financial or other interest in the firm selected for award. The City of Waterloo's officers, employees, or agents shall neither solicit nor accept gratuities,favors, or anything of monetary value from contractors,potential contractors, or subcontractors. REMEDIES • To the extent permitted by federal, state, or local laws or regulations, violation of these standards may cause penalties, sanctions, or other actions to be taken against the City of Waterloo's officers, employees, or agents, or the contractors,potential contractors, subcontractors, or their agents. Certifying Official Date J:\NANCY-G\Code of Conduct\CODE OF CONDUCT 5 25 2006.doc Code of Conduct Waterloo,Iowa May 2006 • City of Waterloo,Iowa The Residential Anti-Displacement and Relocation Assistance Plan under Section 104(d)of the Housing and Community Development Act of 1974,As Amended The City of Waterloo will replace all occupied and vacant occupiable low/moderate-income dwelling units demolished or converted to a use other than as low/moderate-income housing in connection with an activity assisted with funds provided under the Housing and Community Development Act of 1974, as amended,as described in 24 CFR 570.496a(c)(1)and assistance to state and local governments under 24 CFR Part 92(HOME program). All replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the City of Waterloo to provide funds for an activity that will directly result in demolition or conversion,the City of Waterloo will make public by publication in a newspaper of general circulation and submit to the funding agency the following information in writing: 1. A description of the proposed assisted project. 2. The address,number of bedrooms,and location on a map of low/moderate-income housing that will be demolished or converted to a use other than as low/moderate-income housing as a result of an assisted project. 3. A time schedule for the commencement and completion of the demolition or conversion. 4. To the extent known,the address,number of bedrooms and location on a map of the replacement housing that has been or will be provided. 5. The source of funding and a time schedule for the provision of the replacement housing. 6. The basis for concluding that the replacement housing will remain a low/moderate-income dwelling unit for at least 10 years from the date of initial occupancy. 7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units(e.g.,a 2- bedroom unit with two 1-bedroom units),or any proposed replacement of efficiency or single-room occupancy(SRO) units with units of a different size,is appropriate and consistent with the housing needs and priorities identified in the funding sources Consolidated Plan or the local Consolidated Plan. To the extent that the specific location of the replacement housing and other data in items 4 through 7 are not available at the time of the general submission,the City of Waterloo will identify the general location of such housing on a map and complete the disclosure and submission requirements as soon as the specific data are available. The City of Waterloo,Community Planning and Development Department,(319)291-4366,is responsible for tracking the replacement of housing and ensuring that it is provided within the required period. The City of Waterloo Community Planning and Development Department,(319)291-4366, is responsible for ensuring requirements are met for notification and provision of relocation assistance,as described in CFR 570.496(a)(cx2),to any lower-income person displaced by the demolition of any dwelling unit or the conversion of a low/moderate-income dwelling unit to another use in connection with an assisted activity. Consistent with the goals and objectives of activities assisted under the Act,the City of Waterloo will take the following steps to minimize the direct and indirect displacement of persons from their homes. 1. Evaluate housing codes and rehabilitation standards in reinvestment areas to prevent undue financial burden on established owners and tenants. 2. Adopt policies to identify and mitigate displacement resulting from intensive public investment in neighborhood. 3. Provide a per diem stipend to families who are temporarily relocated during rehabilitation. 4. Adopt policies which provide reasonable protection for tenants faced with conversion to a condominium or cooperative. Adopted by the Council of the City of Waterloo,Iowa,this day of June,2006. Signed: Attest: Timothy J.Hurley,Mayor Nancy Eckert,City Clerk co 0 •o U) c c0 `ct o 0 C y cn CI E O •O 0. 3 0)O1 y y E E E o c c � •c 0 0 77 mo . C aaa3y 0 w 3 y O 0 (0aoaCdc C0CI' ( 3 CD c 3 c o c_ a' 3ovE ° ) O y O - 3 ,e d vi c ro 8 O p)0 75 p •r o 0 c v E ' mvc m E m 2 _J y 3 a w 4) 0 0 0 0 0 O O O O O O O O O O O O O O O O O O O O O O O F- . 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(� .0 O C� MO LI y C O/ y c to 2 > d to O co m �O Co W m Q a m Q T C'O 'c�3 p C'CD C •O N N CO C •C L ca .0 coo N N — w w +� 0 w +� lC w o C 'Ai 3 43 C� u0i aci E °) 3 03 c W Z W Z U' 0 J z (X W in I ' 3 �Ycewin H MINUTES COMMUNITY DEVELOPMENT BOARD MEETING May 16, 2006 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa, and called to order by Chairman Eric Johnson at 4:00 p.m., on Tuesday,May 16, 2006. Members present: Jim Carstensen, Elsie Duncan, Larry Oltrogge, Gary Rankin,Bernie Stroh, and Eric Johnson, Chairperson. Members absent: Mickye Johnson. Also present: John Kincaid, Council Liaison;Don Temeyer, Community Planning and Development Director;Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary and Mary Schmitt, Executive Director of Christian Community Development. A. APPROVAL OF AGENDA. Chairman Johnson indicated that Rudy Jones has removed Item D.3 from the Agenda, and asked for further changes or additions. With no further discussion,it was moved by Larry Oltrogge and seconded by Jim Carstensen to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON APRIL 18,2006. It was moved by Bernie Stroh and seconded by Elsie Duncan to approve the minutes of the regular meeting held on April 18,2006. Motion carried. C. OLD BUSINESS 1. Subrecipient Monitoring Update—Operation Threshold. Rudy Jones stated that a meeting is currently scheduled with the City Legal Department to determine the process to recapture funds from Operation Threshold, and that correspondence between Community Development and Operation Threshold has resulted in Barb Grant's response stating she will be addressing her Board to recommend they terminate the agreements with Community Development Board. This action will allow Community Development to recapture the funds. Minutes May 16, 2006 Page 2 Elsie Duncan questioned the reason Barb Grant gave to terminate the agreements. Rudy Jones stated that she did not provide a reason, but this information may be provided in the formal letter following the Operation Threshold Board Meeting. 1. Request from Christian Community Development/House of Hope To Change Scope of Their Project. Mary Schmitt, Executive Director of Christian Community Development/House of Hope referred to her proposed business plan to re-allocate funds, stating they would like to use the funds toward the purchase of Queen of Peace church and school, instead of the previous request to improve the plumbing at 222 Walnut. The proposal is as follows: Business Plan for Purchase and Rehabilitation of St. Mary's Church and School (Queen of Peace) Asking Price $300,000.00 Rehabilitation $700,000.00 TOTAL $1,000,000.00 $50,000 from CDBG Funds(funding already acquired through most recent CDBG Grant)to put down as good faith if allowed to transfer. $500,000 to be applied for through the Federal Home Loan Bank with Regions Bank being the bank to assist them in obtaining funds. $200,000 request for City HOME funding for the new grant year(can apply in January 2007- available July 1, 2007.) $200,000 request through State HOME funds (this funding cycle is December 2006, available March 2007.) $50,000 request through McElroy Trust(request to be made as soon as decision is made on present CDBG transfer funds). Writing a grant to Creative Ministries of Presbyterian Women for$650,000 with First Presbyterian of Waterloo as the endorser. This will be a back-up for any funds failed to secure otherwise. $150,000 Value of two properties located at 222 Walnut(8-plex) and 306-308 Walnut,to be sold. Ms. Schmitt stated the main purpose for this request is to provide more transitional housing units for homeless women and children, as the current waiting list stands at 81 applicants (totaling 183 homeless people). Purchasing the Queen of Peace would both allow them to serve a maximum of 30 families (rather than the maximum of 10 families currently), and provide access to the church sanctuary as a non-denominational building to assist in the service of this project. Minutes May 16, 2006 Page 3 Chairman Johnson clarified that Christian Community Development is requesting to use the $50,000 allocation of CDBG funds as earnest money toward the purchase of this property, ensuring that the funds wouldn't be lost if the sale of the property failed to proceed. Discussion ensued regarding the specific use of the building(s) located on the property,neighborhood acceptance of this requested use, zoning requirements, and availability of other similar facilities available in the Waterloo area, such as The Salvation Army. Mary Schmitt stated they provide life skills training in addition to a longer-term temporary shelter to reduce recidivism, and educate toward improvement of lifestyles and an opportunity for families in need. Discussion continued regarding the terms for the funds applied toward this purchase. Mary Schmitt stated the $500,000 from the Federal Home Loan Bank would be in the form of a grant with specific contingencies toward the use of the funds over a specific period of time. Rudy Jones stated that HUD regulations specify that CDBG funds may be used toward this type of request. Jim Carstensen indicated that the House of Hope provides a tremendous ministry in transitional housing to the homeless community. The two-year term gives individuals time to adjust back into society. Councilperson John Kincaid, 4th Ward, City of Waterloo, spoke of the positive impact that the House of Hope has provided to the community, and proposed that the neighborhood surrounding St. Mary's Queen of Peace Church would realize the asset this type of facility would provide for the area. Mary Schmitt discussed the consolidation of services that a property of this magnitude could provide toward their mission. Nancy Gulick clarified the Salvation Army runs one Emergency Shelter for women and children, and another Emergency Shelter for men,but transitional housing for men only is available at The Salvation Army, and transitional housing for women and children only is available at The House of Hope. Nancy discussed her role in processing the application for the Continuum of Care (which covers the City of Waterloo and Black Hawk County) in order to acquire funding from the federal government through the State of Iowa. Nancy shared comments that the City of Waterloo has not made much progress toward assisting homeless individuals. Nancy stated granting this re-allocation would provide both a positive effort toward improving this status, and open up another avenue of funds for Christian Community Development to pursue. It was moved by Jim Carstensen and seconded by Elsie Duncan to re-allocate the$50,000 from plumbing for 222 Walnut toward the purchase St. Mary's Queen of Peace Church and School. On roll call: Jim Carstensen,Elsie Duncan, Gary Rankin and Eric Johnson voted Aye. Nays: None. Larry Oltrogge and Bernie Stroh abstained from voting. The Chairman declared the motion carried. Minutes May 16,2006 Page 4 1. Lead Grant Update. Rudy Jones thanked the Rehabilitation Subcommittee members for their input into the lead grant process. Nancy Gulick stated since our funding has been cut, and will probably be cut again in the future, we propose to complete"lead-only" activities on houses in the City of Waterloo. Our goal will be to complete 100 housing units within a three-year period. Nancy stated the lead grant application stipulates that$8,000 of lead grant funds can be allocated toward lead abatement per property, but in Waterloo the average cost has been$12,000 per property (due to the size of the homes). To address this issue,the Rehabilitation Subcommittee has been asked to approve a total of$400,000 over the next three years as a"lead-only" allocation. Nancy stated that the Subcommittee also discussed how we would approach total rehabilitation projects,which are eligible in order to meet benchmarks. Lead abatement training would continue to be provided. Outreach and education would continue to be utilized to inform the community of lead hazards; and the Black Hawk County Health Department would continue to partner with us to provide blood lead testing on children under age 6,with lead assessments and clearances results on properties. Additionally, El Centro has requested funding for the translation of brochures from English to Spanish, with an estimated cost of services to be provided. Discussion resumed regarding the amount of funds to be requested, availability of future CDBG match funds,how those funds will be used, and the process to file the grant. D. NEW BUSINESS 1. Endorse Rehabilitation Contracts for April 2006. Rudy stated there are some additional funds available from the EDI Roof account, due to the fact that we are short a Rehab Specialist and Rehab Manager. Additionally, Rudy stated that the Mayor and City Council granted$10,000 to be used over the course of the next 30-45 days. Rudy stated that five new contracts have been entered into this month, with more forthcoming, pending application approval. It was moved by Larry Oltrogge and seconded by Bernie Stroh to endorse the Rehabilitation Contracts for the month of April 2006. (See copy of report attached.) On roll call: Jim Carstensen,Elsie Duncan,Larry Oltrogge, Gary Rankin,Bernie Stroh,Eric Johnson,voted Aye.Nays: None. The Chairman declared the motion carried. 2. Re-Allocation of Fiscal Year 2006 HOME Funds from the Neighborhood Block Project of East 8th,East 9th, Sycamore and Lafayette Streets to Down Payment Assistance. Minutes May 16, 2006 Page 5 Nancy Gulick requested the re-allocation of funds totaling $50,000 from Fiscal Year 2006 HOME funds for the Neighborhood Block Project of East 8th,East 9th, Sycamore and Lafayette Streets to Down Payment Assistance. Following discussion,it was moved by Larry Oltrogge and seconded by Elsie Duncan to approve the re-allocation of HOME funds in the amount of$50,000 from the Neighborhood Block Project of East 8th,East 9th, Sycamore and Lafayette Streets to Down Payment Assistance. On roll call: Jim Carstensen,Elsie Duncan,Larry Oltrogge, Gary Rankin,Bernie Stroh,Eric Johnson,voted Aye.Nays: None. The Chairman declared the motion carried. 3. Conflict of Interest—Rehabilitation Subcommittee Recommendation. Chairman Johnson indicated this item was removed from the Agenda. E. DISCUSSION ITEMS 1. Nancy Gulick—HOME Training Specialist Certification. Chairman Johnson congratulated Nancy Gulick for obtaining the Certified HOME Program Specialist- Regulations certification with a passing score of 90%,which is valid for five years. 2. HUD Approval as Homebuyer Education,Pre-Purchase Counseling and Post-Purchase Counseling Agency. Rudy stated that through Donna Lesyshen's assertiveness as Waterloo Housing Partnership Coordinator, we are now approved as a Housing Counseling Agency to provide Homebuyer Education, Pre-Purchase Counseling and Post-Purchase Counseling. This certification is effective for two years from April 17, 2006 and contingent upon the City's willingness and ability to comply with provisions of two documents: The Housing Plan submitted to HUD that was part of the final application, and provisions of HUD Handbook 7610.1 Rev.4. Donna stated this certification makes the City the only HUD certified Homebuyer Education Counseling Agency in the area. Donna shared that June is designated as Home Ownership Month, and she has scheduled a Home Ownership Fair to be held on Saturday, June 17, 2006,which will include homebuyer service providers. The purpose of this Fair is to provide collaboration among agencies affiliated with the First Time Homebuyer Down Payment Assistance Program. 3. Lead Grant Risk Analysis Score. Rudy Jones stated this information specifies that the City of Waterloo maintains a positive standing with regard to Lead Grant requirements. Nancy Gulick added our rating is at 27 and noted a low score is desired. This rating signifies to HUD there is no need to follow-up with monitoring to ensure benchmark achievement as specified in the Lead Grant guidelines. This assessment provides an analysis of risk and covers all grants that were both active on January 31, 2006, and awarded in FY 2005, except for grants scheduled to expire within six months of that date. Minutes May 16, 2006 Page 6 4. Introduction: Manager of Rehabilitation Services. Rudy Jones stated that the Waterloo City Council has recently approved the hiring of a Rehabilitation Program Manager, and Mark Boesen has been offered, and accepted,the position to begin on Tuesday, May 30, 2006. Other Discussion. Don Temeyer discussed the status of an application submitted by the U. S. 63 Community Development Corporation to the Office of Community Services for a$600,000+grant for the Logan Plaza area. Don noted the key to this grant is involving neighborhoods. Don also reported he is working with the Black Hawk County Board of Supervisors to localize the Tax Sale process. F. ADJOURN MEETING With no further business to come before the Board, Chairperson Johnson adjourned the meeting. 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CO CO co k< a o cu ° o.° e 2 E/ E [ K [ E C ■ Co O ® w 0.o en R $ /d 000 0 0 00d 0 c la U k ■ a "0 \k 0 \ jok k ti. � j2 ki \ ! ■ sii 0 . ) )] ] 0) § 2 o - 2 ° ` � / EE % § 2 O � "0 co to 222 \ J 2 a m ! @ = 2 < iUJ z eo w § � 2 I- _J2 / ]$ £ / IX j } 4k /1- / t�t �` '` , ,,�,�`. // / ( (dc ettr ey" 6-16 i‘174-(76M111AX.e e-Ne", MINUTES COMMUNITY DEVELOPMENT BOARD MEETING April 18, 2006 The regular meeting of the Community Development Board was held in the City Council Chambers, 715 Mulberry Street, Waterloo,Iowa, and called to order by acting Chairperson Elsie Duncan, at 4:00 p.m. on Tuesday, April 18, 2006. Members present: Jim Carstensen; Mickye Johnson; Larry Oltrogge; Bernie Stroh and Elsie Duncan, Chairperson. Members absent: Gary Rankin,Eric Johnson. Also present: Harold Getty, Council Liaison; Don Temeyer, Community Planning and Development Director;Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Louis Starks, Contracts and Grants Coordinator; and Ann Northey,Administrative Secretary; Mary Schmitt, Christian Community Development; and Chris Benning,Veridian Credit Union. A. APPROVAL OF AGENDA It was moved by Mickye Johnson, and seconded by Jim Carstensen, to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON MARCH 21, 2006 It was moved by Bernie Stroh, and seconded by Mickye Johnson to approve the minutes of the regular meeting held on March 21,2006. Motion carried. C. OLD BUSINESS 1. Subrecipient Monitoring Update—Operation Threshold. Rudy Jones stated in our last monitoring visit to Operation Threshold,they were asked to provide us with an annual update to report the progress of their new construction activities initiated last fall. They have been given a substantial amount of time to respond, with additional extensions provided, and still they have not provided the required information. This puts us in jeopardy for our reporting requirements to HUD. Mickye Johnson questioned what the most severe action would be to take at this point. Minutes April 18, 2006 Page 2 Rudy stated that recapturing the funds provided to Operation Threshold for these projects would be the most severe action. Mickye Johnson questioned where these funds were currently located, and what the process would be to recall them. Nancy Gulick stated that they have funds from re-use dollars to use totaling $152,000 of LHAP funds for new construction; $62,763.00 for HOME re-use they need to pay back; and for rehabilitation there is $121,900 of LHAP funds; and$71,333 of HOME funds. It was moved by Bernie Stroh to recapture all funds allocated to Operation Threshold,in view of the on-going problems we have experienced with this agency regarding subrecipient monitoring. The motion was seconded by Mickye Johnson. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge and Bernie Stroh voted Aye. Nays: None. The Chairperson declared the motion carried. Rudy Jones indicated the staff will proceed accordingly. D. NEW BUSINESS 1. Subordination Request from Veridian Credit Union on Forgivable Loan at 926 Williston Avenue—Vretenarevic, Owner. Veridian Credit Union is requesting a subordination for the property at 926 Williston Avenue, with a current assessed value of$84,920.00. The terms of the subordination request by Veridian are 7.75%interest rate for 7 years for$30,000 with a monthly payment of$600.00 so the property owner can purchase a semi tractor trailer. Bernie Stroh reiterated that it is Board policy that we do not subordinate for consumer debt. Chris Benning, from Veridian Credit Union,was present to answer any questions regarding this new loan request. It was moved by Bernie Stroh and seconded Mickye Johnson to deny this request. On roll call: Jim Carstensen,Mickye Johnson,Larry Oltrogge,Bernie Stroh and acting Chairperson Elsie Duncan voted Aye. Nays: None. The Chairperson declared the motion carried. 2. Subordination Request from Lending Tree Home Loan Center on Forgivable Loan at 1216 Evergreen Avenue—Bumgardner, Owner. Home Loan Center, Inc., DBA Lending Tree, is requesting a subordination for 1216 Evergreen Avenue, with a current assessed value of$85,000. The terms of the subordination request by Minutes April 18, 2006 Page 3 Lending Tree are 13.375%interest rate for 25 years for$30,000 with a monthly payment of $334.38. Board members indicated this request is the same situation for consumer debt. It was moved by Mickye Johnson and seconded by Bernie Stroh to deny this request. On roll call: Bernie Stroh,Larry Oltrogge,Mickye Johnson,Jim Carstensen and Chairperson Elsie Duncan voted Aye. Nays: None. The Chairperson declared the motion carried. 3. Request from Christian Community Development/House of Hope to change scope of their project. Mary Schmitt, Executive Director, Christian Community Development, stated their request is to change the scope of their current project for$50,000 on Walnut Street. This is due to the fact that the St. Mary's Church and School,now called Queen of Peace, is up for sale and has been offered first to their program at a discounted price. Ms. Schmitt stated they would like to use their$50,000 CDBG allocation as good faith money instead toward the acquisition of the building. This would allow them the opportunity to house approximately 30 families instead of the 10 as previously requested. They currently have 183 families on their waiting list requesting assistance. Bernie Stroh asked what the price of the property was, and Ms. Schmitt stated that she has been told by her Financial Board that the asking price is $300,000. Mickye Johnson questioned if they had the financial resources to rehabilitate the building. Ms. Schmitt stated that between HUD,the Federal Home Loan Bank and utilizing HOME funds they would be able to accomplish this goal. Mickye Johnson questioned their projected budget plans for the project to ensure that they were capable of this task. Bernie Stroh requested the Board review their business plan before making a decision to approve this change in their project funding. Mary Schmitt stated that nothing has been formally drawn up yet,but indicated she would have a business plan available for staff to review within the next two weeks. It was moved by Bernie Stroh and seconded by Mickye Johnson to table action on this request until the next meeting, and instructed Ms. Schmitt to provide a business plan as soon as possible for the staff to review their proposed project to acquire and rehabilitate the Queen of Peace property. Motion carried. Minutes April 18, 2006 Page 4 4. Endorse Rehabilitation Contracts for March 2006. Rudy Jones stated that there were no contracts entered into during the month of March. The Rehabilitation staff are currently working to catch up old cases and numerous projects are underway for April. 5. Re-allocation of Fiscal Year 2006 CDBG funds from Rehabilitation Administration line item to Single Family Rehabilitation line item. Nancy Gulick requested that$80,000 of FY2006 Rehabilitation Administration funds be re- allocated to the line item for Single Family Rehabilitation for construction costs toward completion of rehabilitation benchmarks. Following discussion,it was moved by Larry Oltrogge and seconded by Jim Carstensen to approve the re-allocation of funds,moving$80,000 of FY2006 Rehabilitation Administration funds to FY2006 Single Family Rehabilitation line item. On roll call: Jim Carstensen,Mickye Johnson,Larry Oltrogge,Bernie Stroh and Chairperson Elsie Duncan voted Aye. Nays: None. The Chairperson declared the motion carried. 6. Re-allocation of Fiscal Year 2006 CDBG funds from Administration line item to Planning line item. Rudy Jones stated the City had received a finding from the last HUD monitoring visit concerning the coding of some administrative costs, as they were not in line with federal guidelines, as stated in HUD's letter of November 15,2005, item#6. It was moved by Mickye Johnson and seconded by Larry Oltrogge to approve the re- allocation of$17,500 in FY2006 Block Grant Administration funds to the FY2006 Planning Activities line item to correct this finding per the written request of Don Temeyer, Community Planning and Development Director. On roll call: Bernie Stroh,Larry Oltrogge,Mickye Johnson,Jim Carstensen,and Chairperson Elsie Duncan voted Aye. Nays: None. The Chairperson declared the motion carried. 7. Authorize Submission of Lead-Based Paint Grant Application. Rudy Jones indicated we are requesting the endorsement of the Board to re-apply for the Lead Grant for the federal fiscal year beginning October 1, 2006. Nancy Gulick stated funds will be requested to cover personnel costs,blood testing, education,training,rehabilitation, and equipment to be used toward the elimination of lead paint hazards throughout the City. Minutes April 18, 2006 Page 5 It was moved by Jim Carstensen and seconded by Bernie Stroh to approve reapplication for the Lead Grant. Bernie Stroh questioned the number of personnel that would be affected by these grant funds, Rudy stated that these funds would cover personnel costs for one Rehabilitation Specialist, continuation of one administrative support staff, and ongoing training costs for staff and contractors. Mickye Johnson questioned Rudy what he meant by"tweaking"the program. Rudy indicated there would be a change in our benchmarks and how we calculate our matching funds. Nancy Gulick stated that CD BG funds could be used to match Lead Grant funds so that the average that HUD is providing for the Lead Grant would be $8,000. Nancy stated that she hasn't Rehabilita tion staffyet,but speculated that if we receive a finalized anything with the p continuation of these grant funds,we could separate lead activities from full rehabilitation activities,which would then allow us to accomplish remediation of more homes throughout the City, and would make it less restrictive in meeting required benchmarks. Following discussion the Chairperson called for a vote to reapply for the Lead Grant. Motion carried unanimously. E. DISCUSSION ITEMS 1. National Association of Housing and Redevelopment Officials (NAHRO) Conference— April 19-21,2006—Waterloo Rudy Jones stated the NAHRO Board has agreed to hold their annual conference in Waterloo this year,with 150 candidates currently registered to attend. Rudy stated that this will also coincide with National Community Development Week, and will take the place of any other planned activities in celebration of that fact. Mickye Johnson suggested that in the event this type of situation occurs again in the future,that NAHRO be made a part of the National Community Development Week functions. 2. Public Hearings a. 4/24/06—Council Hearing on FY07 CDBG and HOME Action Plan b. 5/01/06—Council Hearing on 2°d Amendment to Section 108/BEDI Grant c. 5/08/06—Council Hearing on Amendment to 5-Year Consolidated Plan and FY06 Action Plan Rudy Jones invited Board members to participate in the hearings to answer any questions that may arise concerning our various projects being submitted to HUD or amended. The hearings will be held during the Waterloo City Council meetings on the dates listed at 5:30 p.m. Rudy stated that a short work session is also scheduled at 5:00 p.m.,prior to the 4/24/06 Council hearing. This will provide a good opportunity to inform the council that we are administering Minutes April 18, 2006 Page 6 other grants, over and above the CDBG and HOME funds,with little or no administrative dollars provided to us. 3. Other Discussion Items Nancy Gulick stated that further information on program guidelines regarding the re-application process for the Lead Grant will be presented at the next Board meeting. Mickye Johnson raised concerns about follow-up procedures on negative homeowner evaluations? Rudy Jones stated that a response to the homeowner is initiated, and concerns are addressed with contractors to eradicate future similar problems. Don Temeyer provided an update with regard to the Highway 63 Corridor project, stating that the environmental assessment has been authorized and work with the new Community Development Corporation is moving forward. F. ADJOURN MEETING With no further business to come before the Board, acting Chairperson Duncan adjourned the meeting. Respectfully submitted, Rudy D. Jones, Secretary Pro-Tem MINUTES COMMUNITY DEVELOPMENT BOARD PUBLIC HEARING FOR CITIZEN INPUT FY2007 CONSOLIDATED PLAN February 21,2006 Chairman Eric Johnson called the public hearing to order at 4:40 p.m. in the City Council Chambers, 715 Mulberry Street, Waterloo, Iowa. The Chairman welcomed participants to the meeting, and stated the purpose of the hearing was to gain citizen input into the funding recommendations,made by a subcommittee of the Community Development Board, for the proposed Fiscal Year 2007 Consolidated Plan. Board Members present: Jim Carstensen, Elsie Duncan, Gary Rankin, Bernie Stroh, and Eric Johnson, Chairman. Members absent: Mickye Johnson and Larry Oltrogge. Also present: Mayor Tim Hurley; John Kincaid,Harold Getty, and Ron Welper Council Liaison; Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Louis Starks, Contracts and Grants Coordinator; Perry Goodman,Neighborhood Services Coordinator; Ann Northey,Administrative Secretary; Tim Jamison, Waterloo Courier and approximate 30 interested citizens. A. APPROVAL OF AGENDA It was moved by Jim Carstensen and seconded by Elsie Duncan to approve the agenda. Motion carried. B. RECEIVE AND PLACE ON FILE AFFIDAVIT FOR PROOF OF PUBLICATION FOR NOTICE OF PUBLIC HEARING Chairman Johnson indicated a notice of the public hearing was published in the Waterloo Courier on February 12, 2006. It was moved by Bernie Stroh and seconded by Gary Rankin to receive and place on file the affidavits as presented, for the notice published in the Waterloo Courier. Motion carried. C. OPEN PUBLIC HEARING It was moved by Gary Rankin and seconded by Jim Carstensen to open the public hearing. Motion carried. Chairman Johnson asked if any members of the subcommittee would like to comment about the funding requests before opening the hearing. Bernie Stroh stated that the amount of funds allocated are considerably less,year after year and we must keep that in mind while also being good stewards of the federal funds available to us. Public Hearing Minutes—Page 2 February 21,2006 Mayor Hurley asked for an explanation of the time line for City Council approval of the final submission to HUD. Rudy Jones stated that the Community Development Board establishes the deadlines to ensure that the process is maintained on schedule in accordance with procedural HUD requirements. The Action Plan will be submitted to the City Council on April 10, 2006 to set the date of public hearing. The Council hearing will be set for April 24, 2006,with the application scheduled for submission to HUD on or about May 8, 2006. The Chairman instructed the public to step up to the podium to speak about the funding allocations for FY2007, and provide name and address prior to addressing the Board. Gina Cassis,Executive Director of El Centro Latinoamericano, expressed disappointment that they were not recommended for funding this year. Ms. Cassis stated that as the only Latino resource center in the City, serving most of northeast Iowa,they were awarded$15,000 in funds annually for the past four years. However,this year they are being denied funding due to CDBG budget cuts and the late submission of their application. Ms. Cassis expressed concern that this would drastically affect their organization at the current level, as they rely on these funds to operate. The Chairman stated these allotments are initial recommendations determined by the Community Development Board Subcommittee. These recommendations will be reviewed by the full Board with a recommendation going to the Waterloo City Council. Chairman Johnson stated no specific organization is being singled out to be deleted from assistance. He noted many organizations were not recommended for funding during this initial stage of the process. The Chairman emphasized that the Board's first priority is toward housing rehabilitation in neighborhoods. He further explained that with the current budget cuts to the CDBG and HOME programs,there isn't any additional funds to distribute to outside agencies. Ms. Cassis indicated these are block grant funds given to the community to be given back to help those in need. She indicated it is completely wrong not to fund any of these agencies. Bernie Stroh stated it has never been the Board's intent to be a continuing source of revenue for any nonprofit agency. Ms. Cassis explained that ElCentro Latinoamericano has continued to expand their projects and services to the Hispanic community. She stated the uniqueness of their services is what CDBG is all about. Carol Gustafson, Board President of El Centro, stated the previous city administration initially requested this type of organization be created to provide translation services and assistance to the growing Latino population. Ms. Gustafson stated services are provided to the Latino population, City departments, and businesses in general,both locally and Northeast Iowa at no charge, in an attempt to fulfill this goal. Ms. Gustafson indicated the City committed to support this project with CDBG funds. There are over 7,000 Latinos in the community who have a language barrier and have a right to representation. We want to partner with the City and El Centro has an exemplary reputation for its service in this community. • Public Hearing Minutes—Page 3 February 21, 2006 Father Nils Hernandez,Director of Spanish Ministries and Vice President for El Centro, stated that he is present to support El Centro for all the assistance and social needs they provide to the Hispanics within the community. Gary Rankin questioned Ms. Cassis on how much the requested funding allocation represents in relation to the entire budget for the organization, and what are their other sources of funding. Ms. Cassis stated the block grant allocation is a big part of their budget, and that private funds are provided to them from businesses and other organizations. Chairman Johnson clarified that Ms. Gustafson's statement concerning negotiations for the organization of El Centro was initiated from the Mayor's Office,not with the Community Development Board. Chairman Johnson then stated it was his understanding that this year's funding request is to finance a new Media Specialist position,to be hired to maintain radio programming. It has been made clear all along that CDBG funds will not be a permanent funding stream for any project done in the past. Nora Rodriquez-Kurtovic, a resident in Waterloo for the past three years,works at the University of Northern Iowa, and supports programs dedicated to improve the conditions of refugees here in Iowa. She discussed the outstanding need for this type of assistance in the Latino community and voiced her continued support of the El Centro programs,noting they are working with other communities as far away as Postville,Marshalltown and Cedar Rapids. Bernie Stroh inquired if any other Eastern Iowa communities were contributing financially to El Centro's programs? Carol Gustafson responded that these communities do not contribute. Mayor Hurley asked if the City of Cedar Falls is contributing. Ms. Gustafson indicated they do not. Bonnie Leitz,Vice President of Lane and Fowler's(LAFNOW)Neighborhood Association of Waterloo, expressed support of El Centro in assisting the large Latino population within their neighborhood. Gayle Clark, Probation/Parole Officer with Department of Correctional Services, stated she handles a majority of the Latino clients in the system and is very grateful for the assistance that El Centro provides to their department. Chairman Johnson inquired if their department provides funds to El Centro. Ms. Clark indicated that they do not provide any funding. Father Nils Hernandez stated that Waterloo has the largest population of Latinos associated with the Archdiocese of Dubuque. The Archdiocese has five centers for Northeast Iowa that serve the spiritual needs of Hispanics,which include Dubuque, Cedar Rapids, Tama, Marshalltown, Waterloo, and Postville. All of these centers utilize the services that El Centro provides. Chairman Johnson requested a show of hands for those attending in support of El Centro. Approximately 15 individuals responded. Public Hearing Minutes—Page 4 February 21, 2006 Another employee of UNI spoke regarding the usefulness that a center like El Centro provides in the Latino community with regard to bridging the gap between longstanding citizens and newly arrived Latinos in the area. Reverend Marvin Jenkins, Executive Director of Bring Your Family To Christ Ministries, asked that the Board to reconsider funding their request for funds and questioned the block grant process. Chairman Johnson reviewed the process, and stated that the Subcommittee's recommendation was printed in the paper for public notification. No outside agency has received a recommendation for funding this year. Reverend Jenkins discussed the benefits that their program would provide if they were awarded funding. The Chairman called for further comments from the assembly. No further comments were received. It was moved by Bernie Stroh and seconded by Gary Rankin to close the public hearing. Motion carried. The Chairman stated the Board must now prepare their recommendation for FY2007 activities for submission to the Waterloo City Council. Bernie Stroh commented that this year was the first year in a long time that there was active participation by the City Council liaison in the decision making process. Elsie Duncan commended the subcommittee for their efforts to prepare a recommendation with declining funds. Jim Carstensen stated the Administrative funding allotment has not changed from the last fiscal year. Chairman Johnson referred to a historical chart he has maintained for the past 10 years with regard to funding sources and expenditures. He noted the funding allocations have gone from $2.2 million in 1998 to $1.4 million this year. He stated that over his term in serving on the Board,he has seen the Board take a more specified approach in directing funds toward housing related activities. The Chairman stated concern with the lack of needed funding for emergency repairs and demolition for FY2007. We have a demolition and rehabilitation specialists on staff. He also noted the difference in percentage of funding for administrative costs, from 25% in 1998-1999 to about 40%for the last couple of years,with the difference due to funding Neighborhood Services and Waterloo Housing Partnership staff and programs. We are paying for city staff to run the programs. We are also paying for staff positions in the Planning Department. Chairman Johnson then questioned the need for all this administrative cost for staff when there aren't enough funds to provide the services that this City department is focused on providing. Discussion ensued regarding funding allocations for El Centro, and other similar organizations and programs. Elsie Duncan questioned the lack of three items that were funded last year, and are not on the list for funding this year including sidewalk repair and demolition. Rudy Jones stated there are no funds available to pay for the sidewalk repair program or demolition. Rudy Jones stated that HUD had issues with funding positions without funding activities last fiscal year, Public Hearing Minutes—Page 5 February 21, 2006 therefore we will not be able to allocate dollars for demolition in FY2007. Rudy stated there is over $400,000 in demolition work to be done in the Rath Brownfields area alone. There are many other projects,but regulations are dictating protocol, stating that staff needs to match activity output. Rudy stated that funds for demolition are already allocated from EDI funds, causing the issue with HUD as the funds provided for the input of a staff position from CDBG is not covering the output of demolition activity. Rudy stated that the office is administrating Economic Development Initiative funds, Iowa State funds from the Department of Economic Development for homeless prevention,Iowa State funds for down payment assistance and new construction,Emergency Shelter Grant funds and the HUD Section 108/BEDI Grant funds, many of these grants have no administrative costs attached. Rudy stated that Community Development staff is providing administrative services above and beyond what Block Grant and HOME funds provide,totaling between$10 to $15 million dollars. Ron Welper and Mayor Hurley initiated additional discussion on the organization of El Centro, as they both served on the City Council at that time. Chairman Johnson stated the Board had denied funding to ElCentro that year,but due to a lot of pressure,the council amended the Board's recommendation before the Action Plan was submitted to HUD. After considerable discussion of the proposed budget and administrative costs, Chairman Johnson noted a 30-day public comment period is required to publish the Board's recommendation for FY07 funding. The comment period will begin March 1st and run through March 30,2006. These are the proposed recommendations. FY 2007 Applicants for CDBG and HOME Programs City of Waterloo/Community Planning&Development(Neighborhood Planning) $ 30,000 General Program Administration $ 253,491 Neighborhood Services(City Liaison with Neighborhoods) $ 125,000 Rehab Administration(Project Delivery) $ 130,000 Single Family Rehabilitation $ 818,962 Waterloo Housing Partnership Coordinator and Home Buyer Education $ 70,000 TOTAL CDBG REQUESTS S 1,427,453 City of Cedar Falls(Consortium) $ 75,000 Iowa Heartland Habitat for Humanity (CHDO Request) $ 178,229 Operation Threshold—Tenant Based Rental Assistance $ 20,000 Waterloo Housing Partnership-Down Payment Assistance (1st Time Homebu ers-CURA) $ 200,000 Waterloo Housing Partnership-Down Payment Assistance (New Construction-CURA) $ 100,000 Administration(10%of allocation) $ 63,359 TOTAL HOME REQUESTS $ 636,588 Public Hearing Minutes—Page 6 February 21,2006 The One-Year Action Plan includes an application for$1,417,453 in Federal Community Development Block Grant funds and$10,000 in Program Income funds. The plan also includes an application for $633,588 in Federal HOME funds and Program Income of approximately$3,000. The program year for which the funds are intended begins July 1, 2006. The funds will be used for a variety of activities including public services,neighborhood planning,housing rehabilitation,down payment assistance,new construction and rental deposit assistance. It was moved by Jim Carstensen and seconded by Bernie Stroh to authorize publication and submit the FY2007 CDBG and HOME Program recommendations to the Mayor and City Council following the comment period. Chairman Johnson specified there are no funds set forth for demolition,no emergency repairs, and no funds for El Centro. Jim Carstensen and Bernie Stroh both commented they did not want to fund El Centro for this request. Chairman Johnson asked if the city could provide assistance to fund El Centro. Chairman Johnson indicated we are funding a portion of the salary for a Neighborhood Planning Specialist,which would free up $30,000 from the budget. Mayor Hurley stated his appreciation to the Community Development Board members for their commitment to this difficult process. The Mayor stated there are no city funds available to provide assistance to El Centro. Mayor Hurley also expressed concern over the lack of funding for emergency repairs, demolition, Consumer Credit Counseling,Neighborhood Services, and the Sidewalk Repair Program. He noted these issues are all concerns to our citizens and we cannot rely on the general fund to sustain these programs. Elsie Duncan questioned the rationale of the Subcommittee to justify increases to some programs listed in this recommendation when the funding is so much less than last year. Rudy Jones stated that when the City received the Lead Grant,it was to complete"X"number of rehab units per quarter. Last year we took funds out of Rehabilitation to cover other line items. We knew this would create a deficit for the Rehabilitation Program. Community Development Block Grant funds are used as a match with the Lead Grant dollars and we must be funded at a level to meet our benchmarks. Elsie Duncan then questioned the funds for Neighborhood Services. Chairman Johnson stated that they received the same amount of funds as FY2006, as $25,000 was carryover from FY2005 and they received$125,000 from FY2006. Rudy Jones stated that$120,000 is to cover personnel costs, and $5,000 covers supplies. Discussion continued regarding staffing issues in relation to the decreased funding. Chairman Johnson questioned if any funds could be reduced from the Administrative budget at this time as a result of the two vacant positions? Rudy stated that no funds may be transferred from the $810,000 as this covers the match with the Lead Grant. Nancy Gulick stated that Community Development will not be spending these funds by December,but that these funds are to be allocated per quarter to ensure that the funds are available to complete housing rehab and lead abatement units to meet and maintain quarterly benchmarks. 1 • Public Hearing Minutes—Page 7 February 21,2006 Mayor Hurley questioned the availability of funding leftover from last fiscal year that may be used to provide some flexibility in the FY2007 budget allotments. Nancy Gulick stated that last year's allocations weren't enough to complete the number of rehabs as required per the Lead Grant. Nancy stated that the reallocation of these funds allow the program to meet the funding requirements for this fiscal year, and she will be reviewing funds in another few months to see where there may be more funds to transfer into the single family rehabilitation program. Rudy stated that previous discussion had been engaged in the requirement to make up for these funds in the future, but that it was not known at that time that funds would be decreased. Nancy stated that the amount of$810,000,was determined by the number of houses remaining to meet the Lead Grant benchmarks multiplied by the $25,000 from CDBG funds to match. Mayor Hurley questioned if this amount was mandatory or arbitrary. Nancy stated that this amount is mandatory in order to meet the benchmarks. Chairman Johnson questioned what would happen if these benchmarks aren't met. Nancy stated that the Lead Grant funds would be jeopardized, and may not be renewed in 2007 if it was shown that benchmarks could not be met. If we have allocated the funds to a housing project and do not meet our match goals,then we could be forced to pay the money back. Elsie Duncan inquired about funding for Clearance and Demolition. Rudy Jones stated the only other item that could be discussed is the Planning line item,but Don Temeyer, Community Planning and Development Director, is unavailable to discuss these funds, as twenty percent of his salary is allocated from CDBG funds. Chairman Johnson asked if Don Temeyer's salary is included in this line item, or does it fall under general administration? Nancy Gulick stated the $30,000 funds go toward the salary for both Don Temeyer and Morgan Hoosman, Assistant Planner. Nancy stated that Don has placed 20% of his funding under our administration budget, and 20%into the Planning line item, with the total amount to exceed no more than 20%of our administration budget. Discussion continued regarding the Sidewalk Program, stating that without this funding available, property owners will have to pay for their own repairs either directly or as an assessment against their property. Nancy Gulick stated that we need to make sure that the request from El Centro is actually an eligible expense for the Media Specialist before it is considered by the City Council. Nancy reminded the Board that in previous years,KBBG Radio applied for assistance,however,was deemed ineligible. It was the consensus of the Board members present that if we do not have enough dollars to fund housing related activities, ie: emergency repairs, demolition and sidewalk repairs,then we should not provide any funds to outside agencies. Public Hearing Minutes—Page 8 February 21,2006 Further discussion occurred on reducing administrative costs, and the Chairman indicated that Rudy would need to make some staffing determinations. Mayor Hurly suggested he would like to meet with Don, Rudy,Nancy and Michelle Weidner next week to discuss this issue. Elsie Duncan indicated she would like to see some funds allocated for clearance and demolition and emergency repairs. Gary Rankin asked if there are any administrative dollars earmarked on the other grants the staff is handling? Rudy stated that funds in the amount of $125,000 are received from the State to administer ESGP,with about$5,000 for administrative costs,which is currently being utilized to pay for an intern to complete the Continuum of Care Survey. Rudy stated that up to 2-3%of EDI funds are allowed to cover some legal costs, but they are not allotted for administrative costs. The Lead Grant funds are unique and temporary. It allowed for the hiring of two additional staff members to meet benchmarks,with further funding contingent upon maintaining benchmarks. Rudy stated that previous staffing levels will not be maintained, and with the recent loss of two Rehabilitation staff positions, at least one of these positions would remain vacant. We do not have funding to fill both positions. Discussion continued on using carry-over funds, if there are any available at the end of FY06,to fund the demolition and emergency programs. Chairman Johnson indicated Rudy and Nancy would work on finding some dollars to fund these projects. The Chairman called for a roll call vote on the proposed FY2007 CDBG and HOME Program budgets to be presented to the City Council: Jim Carstensen,Elsie Duncan, Gary Rankin,Bernie Stroh, and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. With no further business to come before the meeting the Chairman declared the meeting adjourned. Respectfully submitted, Elsie Duncan, Secretary MINUTES COMMUNITY DEVELOPMENT BOARD MEETING February 21, 2006 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 Chairperson Eric Johnson, at 4:00 p.m., on Tuesday,February 21, 2006. Members present: Jim Carstensen; Elsie Duncan; Mickye Johnson; Gary Rankin; Bernie Stroh; and Eric Johnson, Chairperson. Members absent: Larry Oltrogge. Also present: John Kincaid,Harold Getty, and Ron Welper Council Liaison;Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Louis Starks, Contracts and Grants Coordinator; Perry Goodman,Neighborhood Services Coordinator;Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey,Administrative Secretary, Noel Anderson, City Planner and Tim Jamison,Waterloo Courier. A. APPROVAL OF AGENDA Chairman Johnson asked to move Item D5 under New Business, "Review of Down Payment Assistance Application"to the top of the agenda following approval of the minutes. It was moved by Mickye Johnson and seconded by Jim Carstensen to approve the agenda as amended. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING AND THE PUBLIC HEARING ON JANUARY 24,2006 It was moved by Jim Carstensen and seconded by Mickye Johnson to approve the minutes of the regular meeting and the public hearing held on January 24,2006. Motion carried. Chairman Johnson noted under the amended agenda, Item D5 is the review of a Down Payment Assistance Application. Donna Lesyshen explained the process for approving applicants for the Down Payment Assistance Program,noting a social security number or INS number must be provided on each application for all members of the household. Donna reported an application has been received where the spouse does not have a social security number and has applied for an INS number. Donna indicated the spouse is not the applicant on the loan with Veridian,nor is the spouse the applicant for the down payment assistance. Staff researched that providing social security numbers is not a HUD regulation,but is a city imposed regulation that the social security numbers of all household members be provided. Bob Borcherding of Veridian Credit Union indicated the borrower has been employed within the city for eight years and his wife is not on the loan. She will sign the mortgage, as his spouse. The borrower has great credit and is a very strong member of the credit union. Minutes February 21, 2006 Page 2 Chairman Johnson inquired if there were any stipulations in the federal guidelines that would prohibit us from giving this down payment assistance based upon the spouse's status? Rudy Jones indicated there were no stipulations,only city guidelines. It was moved by Bernie Stroh and seconded by Jim Carstensen to approve the application for the down payment assistance. Mickye Johnson indicated his support for the motion,but suggested we review the process with the City Attorney to make certain we are not setting a precedent for future applications. Chairman Johnson clarified the motion,to approve the application for down payment assistance in this situation upon Rudy Jones verifying with the city legal department that no unintended legal consequences will arise. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson, Gary Rankin,Bernie Stroh and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. C. OLD BUSINESS 1. HUD Monitoring Report and Staff Responses. Chairperson Johnson referred to the letter dated February 1, 2006, from HUD directed to Mayor Timothy J. Hurley. Rudy Jones stated this letter clears up the findings raised per the last monitoring visit. Chairperson Johnson clarified that no further response is pending at this time. D. NEW BUSINESS 1. FY2006 CDBG and Home Allocations. Rudy Jones stated this information is provided to keep the Board informed of the current funding allocation, and to show historical fluctuations. The federal FY2006 allocation of Community Development Block Grant funds will be $1,417,453.00 and HOME Investment Partnership funds of $633,588.00 for FY2007. Discussion continued regarding the past,present, and future projection of these funds. 2. Endorse Rehabilitation Contracts for January 2006. A list of the January 2006 contracts entered into by the Community Development department was reviewed. It was moved by Elsie Duncan and seconded by Mickye Johnson to endorse the Rehabilitation Contracts entered into during January 2006. Rudy Jones stated the Rehabilitation Manager position was vacated in January, and since that time one of the Rehabilitation Specialists also resigned. These vacancies cause a problem with meeting HUD benchmarks. Rudy stated the benchmarks should be met this quarter,but it will be difficult to obtain them next quarter with limited staff. Rudy indicated other staff members are sharing some responsibilities of these vacant positions. Minutes February 21, 2006 Page 3 Board members questioned the direction of staffing for the department. Rudy indicated staff continues to review the increased workload and responsibilities. Interviews for the position of the Rehabilitation Manager were completed and we will need an additional week to review this position with staff. Rudy noted a report should be forthcoming at the next meeting. The Chairman asked Rudy to explain job duties between the Rehabilitation Specialist and Rehabilitation Manager. Rudy indicated the rehabilitation specialist completes the inspections,bid processes and getting the projects complete. The Rehabilitation Manager designates, assigns and reviews cases and handles the management and tough issues of the rehab program. Maintains the financial match with the lead grant dollars and oversight of the entire rehab program. Discussion continued on filling those positions and the timeframe for this process. Following discussion,the Chairman called for a roll call vote on the January 2006 contracts: Jim Carstensen,Elsie Duncan,Mickye Johnson, Gary Rankin,Bernie Stroh,Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Re-allocation of Funds for FY2005 and FY2006 Nancy Gulick, Community Development Coordinator,briefly explained a request to re-allocate some fiscal year 2005 funds that were not expended and re-allocate some fiscal year 2006 funds that are needed to complete our benchmarks in rehabilitation. Fiscal Year 2005 Funds From: Black Hawk Center for Independent Living $ 4,915 Historic Survey $50,000 Community Housing Partnership $ 1,377 Waterloo Housing Partnership Manager $ 1,211 Home Buyer Education $12,071 Renaissance Program $ 8,678 $78,252 To: Single Family Rehab $78,252 Fiscal Year 2006 Funds From: Community Housing Partnership $ 5,000 Rehab Administration $10,000 Sidewalks Zone 5 $ 3,394 $18,394 To: Single Family Rehab $18,394 Following discussion,it was moved by Mickye Johnson and seconded by Bernie Stroh to approve the re-allocation of funds as presented. On roll call: Bernie Stroh, Gary Rankin,Mickye Johnson, Elsie Duncan, Jim Carstensen and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Minutes February 21, 2006 Page 4 4. Transfer of Funds—EDI Grant No. B-04-NI-IA-0012. Nancy Gulick, Community Development Coordinator,indicated the EDI Grant was initially written to Rental Rehabilitation projects. The current funding utilize funds for Rental Rehabilitation ' source for was provided by the Waterloo Housing Authority. We have experienced many delays and complications with the rental rehabilitation program. Nancy noted discussions with the rehabilitation staff indicate that the EDI funds could be better utilized to provide an Emergency Roof Program for homes in the targeted Brownfields area. Nancy requested that half of the available funding be allocated at this time for an Emergency Roof Program in the amount of$96,525.00, and later transfer the balance into the same line item,if the program proves to be successful. This dollar amount would assist in completing about eight roof projects. Considerable discussion occurred concerning the need for continuing the Rental Rehabilitation Program. Nancy Gulick indicated there is a need,however,the program has not been easy to administer. Rudy Jones confirmed this and indicated the difficulty of following all the regulations with the Rental Rehabilitation Program. He noted we will complete those rental rehabilitation projects currently in progress,but we prefer not to engage in any more projects at this time. Following discussion,it was moved by Bernie Stroh and seconded by Jim Carstensen to transfer $96,525.00 from the EDI Grant No. B-04-NI-IA-0012 into an Emergency Roof Program. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Gary Rankin,Bernie Stroh,Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 5. Item discussed at top of agenda. 6. Subordination Request from ABC Mortgage,Inc. for property at 420 Independence Avenue, Moore,Owner. Chairperson Johnson discussed the terms of the forgivable loan to Betty O. Moore, of 420 Independence Avenue. Rudy Jones noted this is the third request for a subordination on this property to date. The last time the owner was not aware the lender was pursuing the subordination. Chairman Johnson inquired if this was a fixed rate or adjustable rate loan. The homeowner's monthly payment would be lowered, and they would also be paying off some consumer debt. After discussion,it was moved by Bernie Stroh and seconded by Elsie Duncan to decline the subordination request from ABC Mortgage on the forgivable loan to Betty Moore. Gary Rankin asked for the rationale for denying the loan. Bernie Stroh stated there is still 2.5 years left on the loan and there are ineligible items being paid off with the new loan. Chairman Johnson indicated he generally agrees with these statements,however,the new loan would decrease the owner's monthly payments by $250.00,which would be in their best interest. Chairman Johnson reiterated the motion is to deny the subordination request. Minutes February 21, 2006 Page 5 On roll call: Elsie Duncan,Mickye Johnson and Bernie Stroh voted Aye. Nays: Jim Carstensen, Gary Rankin,Eric Johnson and Jim Carstensen. Motion was denied. Chairperson Johnson requested that further information be provided with regard to the terms of the loan, and bring this request back to the Board next month. E. DISCUSSION ITEMS 1. Staff vacancies. No further discussion was initiated as this item was already discussed under Item D.2. F. ADJOURN MEETING With no further business to come before the Board,The Chairman adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary f 7/ / ,Aivt/„ /`��� �l.�C.: :>S/ MINUTES COMMUNITY DEVELOPMENT BOARD PUBLIC HEARING FOR CITIZEN INPUT FY2007 CDBG and HOME PROGRAM January 24,2006 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 FY2007 CDBG and HOME Program funding. The Chairman welcomed participants to the meeting, and indicated approximately $1,417,000 is available in CDBG funding this year. The Chairman noted there has been a consistent decline in annual funding over the last few years and he suggested that participants speak to their federal government legislators to voice concerns regarding this reduction. Chairman Johnson stated that total requests for CDBG funding this fiscal year equals approximately $2.6 million,which does include some fixed staff costs. HOME fund allocations total approximately$633,000 with$75,000 automatically being allocated to the City of Cedar Falls, as part of the HOME Consortium. Current HOME requests for funding total just over$1 million. Chairman Johnson stated that all requests have been received 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 questions. Board Members present: Jim Carstensen,Elsie Duncan, Larry Oltrogge, Gary Rankin, and Chairman Eric Johnson. Members absent: Mickye Johnson and Bernie Stroh. Also present: John Kincaid and Harold Getty, Council Liaison; Don Temeyer, Community Planning and Development Director; Rudy Jones,Community Development Director;Nancy Gulick, Community Development Coordinator; Louis Starks, Contracts and Grants Coordinator; and Ann Northey, Administrative Secretary. A. APPROVAL OF AGENDA It was moved by Larry Oltrogge and seconded by Elsie Duncan to approve the agenda. Motion carried. Minutes January 24, 2006 Page 2 B. RECEIVE AND PLACE ON FILE AFFIDAVIT FOR PROOF OF PUBLICATION FOR NOTICE OF PUBLIC HEARING Date Published Type of Ad/Section Comment January 8, 2006 Display Ad/Pulse Section Page B3 It was moved by Larry Oltrogge and seconded by Jim Carstensen to approve and place on file the affidavit for the notice published in the Waterloo Courier. Motion carried. C. OPEN PUBLIC HEARING It was moved by Larry Oltrogge and seconded by Gary Rankin 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. Dave Schumacher, Executive Director, Black Hawk Center for Independent Living, apologized that they did not get their application in on time. He requested the Board accept his late application for the wheelchair ramp program, due to the fact he had health problems that delayed preparation of the application. Chairman Johnson indicated the application would be turned over to the Subcommittee. Rick Curran, City of Waterloo Leisure Services, stated his organization has two proposals for Sullivan Park Improvements. Chairman Johnson asked if only one could be funded,which would have priority. Mr. Curran stated the proposal for the playground equipment completion would be first, and the basketball court second. Carole Gustafson, President of the Board of Directors of El Centro Latinoamericano, expressed her gratitude for previous funding. Chairman Johnson questioned if the request for a Media Specialist position was intended to promote an existing staff member. Ms. Gustafson stated it was to be a new position,to increase staff and their visibility to reach out to the Latino population of Waterloo. Ms. Gustafson stated that they have previously attempted to produce a Spanish newspaper, and have recently completed a survey,which determined that the current reading level of the majority of the adult Latino population reads at less than a sixth-grade educational level. For this reason, Ms. Gustafson indicated their organization would be more successful in reaching out to the Latino population through the medium of radio,which would be the responsibility of the requested Media Specialist. Elsie Duncan questioned which radio station they intended to utilize for airtime. Ms. Gustafson specified they were interested in contracting with Radio Bueno, located at 1250 AM out of Cedar Falls,which has been in operation for the past year. Ms. Gustafson stated that this station runs Minutes January 24, 2006 Page 3 all pre-recorded programming purchased from the west coast. El Centro would like to add local programming to provide information on events and opportunities within the metro area. Matt Boyd, President of the Highland Neighborhood Association, and Chair of the Waterloo Neighborhood Coalition, stated that he and many other members of the Neighborhood Association were attending to support Perry Goodman,Neighborhood Services Director, and the funding for the Neighborhood Services department. Mary Potter, Church Row Neighborhood Association, spoke in support of Perry Goodman, Neighborhood Services Director. She noted Mr. Goodman is a great asset to Waterloo's neighborhoods, as he provides hands-on assistance and involvement with all the neighborhoods throughout the City. Ms. Potter reiterated her request to ensure funding for this position as it is vital to the operation of the associations, stating that they constitute the lifeblood of Waterloo. Dwight Webster, with New City Ministries, located on the corner of East 4th and Newell Streets, also addressed the Board in support of Perry Goodman, stating that he had heard his name so much from the time he moved to Waterloo that he mistook Mr. Goodman as Don Temeyer's boss. Mr. Webster asked if the Board would like to hear from each individual currently in attendance to support Mr. Goodman. Chairman Johnson stated that if these individuals could just stand and make themselves known, it would not be necessary for each individual to come up to speak at the microphone. Pattie Kuebler,representing St. Mary's Villa, stated she was there to answer any questions regarding the funding request for St. Mary's Villa. Chairman Johnson questioned the usage of past funding. Ms. Kuebler indicated that previous funding was used to purchase fire resistant doors for the Villa. Mike Schweer of Cedar Valley Colonial Apartments, introduced himself. Chairman Johnson questioned if the funding request was for renovation of the apartment complex, and ensured that they were aware that use of CDBG funding created some restrictions to renter income guidelines. Karen Atwood, Consumer Credit Counseling Services, indicated her presence for any questions on their request. No questions were directed to Ms.Atwood and the Chairman thanked her for attending. Paul Huting, of Leisure Services, stepped to the microphone to answer questions regarding their funding request for Sullivan Park Improvements. With no further questions to be answered, Chairman Johnson thanked Mr. Huting for his attendance. Barb Grant, Executive Director, Operation Threshold,briefly explained their requests were for the Weatherization Program, the Tenant Based Rental Assistance and Lease-Purchase Homeownership Programs.No questions were raised concerning these applications. Minutes January 24, 2006 Page 4 Perry Goodman, City of Waterloo Neighborhood Services Director, stepped to the microphone to answer any questions regarding their funding request. Elsie Duncan questioned why the funding request was increased by $25,000 from last year's request. Nancy Gulick stated there was a carry over of$25,000 in funds from the previous fiscal year, but that there will be no more carry over of funding. Mr. Goodman stated that this funding allocation request of$150,000 is actually up $25,000 from last year, bringing the total back up to previous funding allocations. This increase in funding is for continuation of services to neighborhood residents and associations within the City of Waterloo,with special focus on the relationship the neighborhood associations maintain with faith-based and business organizations. Mr. Goodman stated that in addition to this request,the department has already reduced its newsletter service to the neighborhoods. D. CLOSE PUBLIC HEARING Chairman Johnson asked for further comments from the public. None were received. The Chairman called for a motion to close the hearing. It was moved by Gary Rankin and seconded by Larry Oltrogge to close the public hearing. Motion carried. Chairperson Johnson stated the Board Subcommitte will begin reviewing requests and make a recommendation which will be published and available on February 12, 2006. The next Public Hearing will be held on February 21, 2006. E. ADJOURN With no further business to come before the Board, Chairman Johnson adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary t _ j Y C `' MINUTES COMMUNITY DEVELOPMENT BOARD MEETING January 24, 2006 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 Chair Eric Johnson, at 4:00 p.m., on Tuesday, January 24, 2006. Members present: Jim Carstensen, Elsie Duncan, Mickye Johnson, Larry Oltrogge, Gary Rankin, and Chairman Eric Johnson. Members absent: Bernie Stroh. Also present: John Kincaid, Council Liaison; Harold Getty, Council Liaison; Ron Welper, Council Liaison; Don Temeyer, Community Planning and Development Director; Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator; Louis Starks, Contracts and Grants Coordinator; Donna Lesyshen, Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary; Rick Curran, Leisure Services; Tim Jamison, Waterloo Courier; Jason Verbraken,Rehabilitation Specialist; and Christopher Leach, Rehabilitation Specialist. A. APPROVAL OF AGENDA It was moved by Mickye Johnson, and seconded by Jim Carstensen to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING NOVEMBER 15, 2005. It was moved by Jim Carstensen and seconded by.Gary Rankin to approve the minutes of the regular meeting held on November 15,2005. Motion carried C. OLD BUSINESS 1. Update on Community Housing Initiatives—Marsh Place. Nancy Gulick, Community Development Coordinator, stated that Marsh Place was not paying on their loan because they did not have cash flow. She reported that we did receive their annual payment in January toward their interest only loan, with their next payment due January of 2007, with a balloon payment due at the end of the loan period. Minutes January 24, 2006 Page 2 2. HUD Monitoring Report and Staff Responses. Chairman Johnson directed the Board to review the HUD Monitoring Report letter, stating that it contained some issues of clarification. Rudy Jones stated that a response has been made to these items, and that we are now waiting to hear back from our reply with positive results. Rudy stated this response letter will be shared with the Board when it is received. 3. HUD Response to CAPER—2004 Program Year End Report. Rudy Jones stated that this informational letter dated December 5, 2005, specified that, according to HUD,we have met our obligations as determined by Board action. 4. Authorize Submission of Contracts for the Section 108BEDI Grant. Chairman Johnson stated this request is for the Board to authorize submission of contracts for the Section 108BEDI Grant. Rudy Jones stated information regarding these contracts was available in the office for Board review at their discretion. Don Temeyer indicated these are contracts with HUD for the BEDI Grant for$2 million dollars, but in order to qualify for this grant we needed to qualify for the Section 108 loan for$8,220,000 as outlined in the information provided. Mr. Temeyer stated the difference is that these are now the official contracts to get started,with the master agreement being the Section 108 loan for $8,220,000. The individual contracts are then to be brought back through and individually presented. Don stated that the first contract to come through is to accelerate street reconstruction in the Rath neighborhood area to be paid back with the $.01 local option street tax program. The Waterloo City Council will pledge those funds to pay back the $2 million dollar loan in three payments at a fixed interest rate to be set and begin repayment in August of 2006, 2007, and 2008. Don stated that future business loan contracts will be more of a cause for concern, as we do not want to jeopardize our CDBG program funds,therefore these loans will be primarily for expansions rather than for start-up,to ensure their reliability and security. Chairman Johnson clarified this information by stating that pending Board approval of these contracts, Section 108 funds would be freed up by Board approval and used to improve infrastructure in our targeted areas. Chairperson Johnson also stated that this aspect of the repayment for this current contract, utilizing the City's guaranteed$.01 local option tax,made him feel secure in the Board's decision to approve this contract, and that each successive contract would need to be carefully reviewed prior to approval. Don Temeyer stated that this allows for$1.00 of grant funds to be used per every $4.11 of loan funds,allowing the availability to draw down from the pot of$75,000 in grant funds to complete projects in the Rath area. Minutes January 24, 2006 Page 3 Don Temeyer stated that he is requesting that the Community Development Board make a motion recommending that the Waterloo City Council approve these loan documents. It was moved by Elsie Duncan, and seconded by Mickye Johnson, to approve the loan documents as proposed for recommendation to the Waterloo City Council. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 5. Update on Emergency Repair Program. Rudy Jones stated he has requested further funding for the Emergency Repair Program from the General Budget,per the Mayor's discretion, as we have utilized all of FY2006 funds for the Emergency Program as of November 2005. Rudy stated the Mayor requested information specifying how funds have been spent in the past, and show how additional funds would be utilized. Rudy stated that he is in the process of compiling a comprehensive Emergency Repair Waiting List to show the extent of the present need, in addition to the outcome of the specified 2007 HUD allocation of funds available July 1, 2006. Rudy anticipated that this information would be available to present to the Mayor over the next week. D. NEW BUSINESS 1. Endorse Rehabilitation Contracts for November and December 2005 A list of the November and December 2005 contracts entered into by the Community Development department were reviewed. It was moved by Mickye Johnson and seconded by Larry Oltrogge to endorse the Rehabilitation Contracts entered into during November and December 2005. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, and Chairman Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Waterloo Leisure Services Commission request for Maywood Park. Chairman Johnson reported the Maywood Park bathroom project was completed under budget. Leisure Services is requesting authorization to use the balance of funding on a water fountain at the park to further develop the area. Minutes January 24,2006 Page 4 Rick Curran,Leisure Services Department, stated neighborhood residents have requested the installation of a water fountain in the Maywood Park. Rudy Jones reported this request to utilize funds for a water fountain is an allowable expenditure for the funds, and the Board could approve the allocation for this project instead of carrying the funds over. Rudy Jones indicated the staff recommendation is to proceed with this project, utilizing the balance of funds totaling$2,289.00. It was moved by Gary Rankin and seconded by Mickye Johnson to approve the request from Leisure Services to install a water fountain at Maywood Park. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Request for loan release on property at 816 Beech Street. Chairman Johnson requested a review of Board policy on releasing forgivable loans. Rudy Jones stated the policy in place specifies that when the initial property owner dies,the Board may authorize release of the forgivable loan upon written request from the family. Larry Oltrogge noted this statement was included as part of the forgivable mortgage document. Chairman Johnson noted a letter of request was received from David L. Saddler, acknowledging the death of his mother, Eller V. Saddler, and requesting release of the forgivable loan. Following discussion it was moved by Mickye Johnson and seconded by Jim Carstensen to approve the request to release the forgivable mortgage on the property at 816 Beech Street, due to the death of the owner. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, and Chairman Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 4. Request for loan release on property at 536 Sumner Street. Frances Lacy, submitted a written request to release the forgivable mortgage on the property at 536 Sumner Street, owned by her mother,Katie Moten. Ms. Lacy's request indicated that her mother could no longer maintain the property and live alone due to failing health. Chairman Johnson verified that the five-year mortgage expires on this property in July 2006. Discussion ensued regarding the situation and outstanding amount now due as the mortgage is in the fifth year. Minutes January 24, 2006 Page 5 It was moved by Elsie Duncan and seconded by Mickye Johnson to authorize an early release of the forgivable mortgage to Katie Moten at 536 Sumner Street, due to the circumstances and limited time left on the mortgage. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. Chairman Johnson discussed Board policy to automatically release mortgages upon the death of the property owner, noting a release for this reason allows the family members to sell the property at a profit with no repayment of funds. The Chairman stated that the Rehabilitation Program was designed to assist low-moderate income property owners to provide safe and decent housing. The purpose is not to increase the value of the property by putting $25,000 to $30,000 into the home as a form of inheritance or windfall to the family members of the deceased. If a family member would continue living in the property until the mortgage expires, that would be understandable. However, when out-of-town family members sell the home and it becomes money in their pockets, then we should be reimbursed. Mickye Johnson continued discussion on the rationale for adopting the current policy. He noted some elderly homeowners would not participate in the program if they considered the mortgage a burden on their family. Board members were not interested in changing the policy at this time. Chairman Johnson stated this may be revisited at a later date. 5. Set dates for Subcommittee to Review FY07 CDBG and HOME Applications. Rudy Jones stated that the date for the first Subcommittee Meeting is to be established for Thursday, January 26, 2006, at 9:00 a.m., with subsequent dates to be determined. Chairman Johnson indicated the subcommittee members include Jim Carstensen, Mickye Johnson and Bernie Stroh, with Council liaisons to be appointed by the Mayor. E. Discussion Items. Rudy Jones stated that the initial recommendation will be available from the Subcommittee as to funding applicants for FY2007. There will be a Public Hearing on February 21, 2006, at 4:30 p.m.,following the regularly scheduled Board Meeting. F. Adjourn Meeting. With no further business to come before the Board, Chairperson Johnson adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary MINUTES COMMUNITY DEVELOPMENT BOARD MEETING November 15, 2005 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 Chairperson Eric Johnson, at 4:00 p.m., on Tuesday,November 15, 2005. Members present: Jim Carstensen,Elsie Duncan,Larry Oltrogge, Gary Rankin and Chairperson Eric Johnson. Members absent: Mickye Johnson and Bernie Stroh. Also present: Don Temeyer, Community Planning and Development Director; Rudy Jones, Community Development Director; Louis Starks, Contracts and Grants Coordinator;Donna Lesyshen, Waterloo Housing Partnership Coordinator; and Tim Jamison,the Courier. A. APPROVAL OF AGENDA It was moved by Larry Oltrogge and seconded by Gary Rankin to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON OCTOBER 18, 2005. It was moved by Larry Oltrogge and seconded by Elsie Duncan to approve the minutes of the regular meeting held on October 18,2005. Motion carried. C. PUBLIC HEARING: Citizen Input on Economic Development Initiative Grants for Fiscal Year 2006 1. Grant No.B-05-SP-IA-0071 for the Cedar Valley Tech Works Property Acquisition 2. Grant No.B-05-SP-IA-0482 for the Cedar Valley Tech Works Property Acquisition 3. Grant No.B-05-SP-IA-0078 for Acquisition/Demolition Rath Brownfields Area Chairman Johnson stated the public hearings are to discuss and receive input on three Economic Development Initiative Grants. It was moved by Jim Carstensen and seconded by Elsie Duncan to receive and place on file the Affidavits for proof of publication on October 30,2005 in the Waterloo/CF Courier for the display and legal advertisements. Motion carried. Rudy Jones explained these grants are in conjunction with the downtown renovation and Rath Brownfields redevelopment. Consideration of these grant applications would assist us in continuing this course of action. Chairman Johnson noted,these are not block grant funds. Rudy Jones stated they are additional grants awarded through the Department of Housing and Urban Development,which have been approved, MINUTES November 15,2005 Page 2 however,we must submit formal applications. It was moved by Gary Rankin and seconded by Jim Carstensen to open the public hearing. Motion carried. Chairman Johnson asked for comments from the public. No comments were received. It was moved by Larry Oltrogge and seconded by Gary Rankin to close the public hearing. Motion carried. Larry Oltrogge asked if specific properties would be acquired with these grant funds? Don Temeyer stated no specific properties have been identified,but acquisition will be in a six block area adjacent to the Tech Works expansion site. Don reviewed the boundary streets for the Tech Works project and also explained the boundaries comprising the Rath Brownfields area. Chairman Johnson inquired if these loans would be turned over to the City to administer or will the Board have the authority over the funding. Rudy Jones indicated the Board authorizes the use of the dollars,the Council approves it. Rudy stated some of the funding will be used in conjunction with our HOME funds for development, and this will help leverage the dollars in terms of acquiring and demolishing the sites to make them ready for development. Following discussion it was moved by Jim Carstensen and seconded by Gary Rankin to adopt the recommendations and submit the three EDI Grants to HUD as follows: 1. Grant No.B-05-SP-IA-0071 for the Cedar Valley Tech Works Property Acquisition in the amount of$248,000.00; 2. Grant No.B-05-SP-IA-0482 for the Cedar Valley Tech Works Property Acquisition in the amount of$198,400.00; and 3. Grant No.B-05-SP-IA-0078 for Acquisition/Demolition Rath Brownfields Area in the amount of$198,400.00. On roll call: Jim Carstensen,Elsie Duncan,Larry Oltrogge, Gary Rankin,Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. D. PUBLIC HEARING: Citizen Input on Iowa Department of Economic Development Housing Fund Application for Down Payment Assistance on New Construction Homes in the CURA. It was moved by Elsie Duncan and seconded by Larry Oltrogge to receive and place on file the Affidavits for proof of publication on October 30,2005 in the Waterloo/CF Courier for the display and legal advertisements. Motion carried. Rudy Jones indicated that Community Development would be applying for funds from the American Dream Down Payment Initiative (ADDI)in the amount of$200,000 from the Iowa Department of Economic Development. These are federal HOME funds allotted to the State and last year the City MINUTES November 15, 2005 Page 3 was awarded$100,000. He noted that to date we have not used any of these funds,but are reapplying since the first round of new construction homes are just getting completed this fall and we would like to have enough funds to assist each new construction unit. Rudy reported how the need was identified: We received$100,000 in March 2005 for new construction down payment assistance. We now have 27 homes that fit this category. 1. Stokes Development: Two now and three more funded; 2. Cedar Valley Restoration&Development: E. 8th Street—one now and three more funded and 10 units on Monroe/Madison to be funded; 3. Select Homes: four funded; 4. Shelter Construction: One now and three more funded. Rudy indicated how the activity will be funded and sources of funds: The City of Waterloo has committed$200,000 of FY06 funds for down payment assistance for homebuyers. These funds would be used in conjunction with the American Dream Down Payment Initiative (ADDI) funds. In addition, the Board committed$101,163 of HOME Community Housing Development Organization(CHDO) funds to Iowa Heartland Habitat for Humanity for new construction and$77,000 of CDBG funds towards the administration of our Home Buyer Education program and the Waterloo Housing Partnership Coordinator. No administration funds will be needed since this program will partner with our existing down payment assistance program. Rudy stated the application will be submitted to the Iowa Department of Economic Development by December 1, 2005. We are requesting $200,000 to assist the additional seventeen housing units identified and to be able to assist three additional units not yet identified. All of these funds will go to low-moderate income families and the housing units will be in the CURA. Rudy also noted there will be no displacement of persons or businesses since these units will be constructed on vacant lots. The $10,000 per housing unit will be used towards down payment assistance to lower the loan amount needed to purchase the new construction homes. Gary Rankin inquired if this was an additional$200,000. Rudy Jones stated it would be, for a total of $300,000 for this program. It was moved by Larry Oltrogge and seconded by Gary Rankin to open the public hearing. Motion carried. Chairman Johnson asked for comments from the public. No comments were received. It was moved by Larry Oltrogge and seconded by Elsie Duncan to close the public hearing. Motion carried. It was then moved by Larry Oltrogge and seconded by Elsie Duncan to adopt the recommendation for the IDED Grant Application to be submitted to the State of Iowa in the amount of$200,000 for down payment assistance on new construction homes in the CURA. Gary Rankin inquired about the timeframe to utilize the funding. Rudy Jones stated this is a two-year cycle and this award should be made in the spring of 2006. a � MINUTES November 15,2005 Page 4 Chairman Johnson commended the staff for creatively researching and drafting these grant lications,whether its been through the Washington visits or through attending conferences, so that app additional monies are secured for the city, especially when the CDBG and HOME dol azs are decreasing every year. On roll call: Jim Carstensen,Elsie Duncan,Larry Oltrogge, Gary Rankin,and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. E. OLD BUSINESS 1. HUD Monitoring ReportandfStaffRe hps n ses. Rudy Jones stated that no left response been received from HUD at this time. This item will remain on the agenda pending their response. 2. Tabled Subordination from Money Place Lending 420 Independencee for loan. Rudy Jones enue—Moore. Chairman Johnson indicated the homeowner did not know ed e state d that Ms. Bette Moore has declined to pursue this subordination and on Rudy his than drop on Board for . the additional time to follow-up and review this request. Action closed F. NEW BUSINESS 1. Endorse Rehabilitation Contracts for October 005 regarding the October monthly contract Chairman Johnson asked if any Board member had questions report. 11 gg It was moved by Larry Oltrogge and seconded by Gary Rankin to officially endorse attached.)andd approve the Rehabilitation Contracts entered into during the month of October 2005. (Copy On roll call: Jim Carstensen,Elsie Duncan, Larry Oltrogge,Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 2. Emergency Repair Funds ue to Rymore ud Jones explained that we are currently out of Emergency Repair ere abledo get he great need units d in the community. Since the Board gave us a cap on these funds, He noted that staff couldn't assisted. We do typically run out funds in March or April every year identify another source of funds to replenish this line item. Chairman Johnson asked for an explanation. Rudy Jones stted we in vhave experienced cessing the emergency cases. an overwhelming need this year and the staff has been a very ggres Rudy explained$100,000 was allocated to this line item and the individual cap was at$4,000. Gary Rankin inquired as to how many households could be assisted. Rudy indicated he would provide that information at the next meeting for review. Rudy nds toward their rep, one air p oje of the is p is that we are getting some homeowners to contribute their own Rudy stated the Rehabilitation Department has been extremely aggressive and the dollars are not available to continue the Emergency Program. MINUTES November 15, 2005 Page 5 3. IDED Grant—Housing Needs Assessment Chairman Johnson indicated a memo from Nancy Gulick explained the need to complete a Housing Needs Assessment. Rudy Jones stated that every two years we are required to identify community development and housing needs for low- and moderate-income persons and identify activities that will be undertaken to meet these needs. We are required to have Board input into this process. Chairman Johnson asked for ideas or changes to the existing Assessment Summary that was completed in 2003. Don Temeyer suggested blighted properties should be considered, as this influences the appraisals on neighboring or adjacent properties. Don also noted a comment should be included about the brownfields and especially comments on continuing to work in the Rath area to eliminate the brownfields in this area and then specifically the Chamberlain Building,to eliminate problems along East 4th Street. Don Temeyer suggested when you look at the U.S. 63 report,we need to work on neighborhood development, work force development and transportation services. These are issues that should be addressed. We need to make sure the youth stay in school and obtain advanced education to qualify for quality jobs. Don Temeyer also indicated the potential for U.S. 63 to be redeveloped in the next five years. This is a major project that will make a strategic difference in the neighborhoods along Highway 63. Chairman Johnson suggested Item 3D -Increase the number of households on the Neighborhood Services newsletter mailing list—should be reviewed since we are currently giving a copy of the newsletter to each group to distribute to its own membership. We obviously want to increase circulation of this information. Rudy Jones indicated this would be revised. It was moved by Elsie Duncan and seconded by Jim Carstensen to adopt the 2003 Summary with the added changes as our current assessment and attach it to the IDED application. Motion carried. (see copy attached) 4. Subordination Request from John Deere Community Credit Union on Forgivable Loan at 921 West 2nd Street—Boelts, Owner. This is a Down Payment Assistance forgivable loan currently in the 2n1 year or 80%would be due now in the amount of$2,842.00. The terms of the proposed new loan is $52,500 at 5%interest for 30 years in order to refinance and payoff consumer debt. Board members discussed the fact the interest rate is being lowered,however,the monthly payments will increase. Following discussion it was moved by Larry Oltrogge and seconded by Jim Carstensen to approve the subordination request from John Deere Community Credit Union on the forgivable loan for Adam Boelts at 921 West 2nd Street. MINUTES November 15,2005 Page 6 On roll call: Jim Carstensen,Elsie Duncan and Larry Oltrogge voted Aye. Nays: Gary Rankin and Eric Johnson. Motion carried. 5. Subordi nation Request from John Deere Community Credit Union on Forgivable Loan at 816 Englewood—Bauler,Owner. Chairman Johnson indicated this subordination request is also due now aDm the amouown nt of$Assi,893stance The forgivable loan, currently in the 1 year or 100%wouldoff a medical proposed new loan is $7,755.00 at 7.25%debt. interest with a seven-year balloon to pay garnishment, collections and consumer Followingdiscussion,it is apparent the owner is borrowing money to pay off debts,the first mortgage remains in the same position. It was moved by Jim Carstensen and seconded by Elsie Duncan to de loan the for subordination J.Bauler request from John Deere Community Credit Union on the of 816 Englewood. On roll call: Jim Carstensen,Elsie Duncan, Larry Oltrogge,Gary Rankin and Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 6. Set Board Meeting Dates for 2006 ro osed for the Board Chairman Johnson indicated the third Tuesday of the month is again being ed the January 2006 Board meeting would be held a week later meeting dates in 2006. Rudy Jones note d than usual to avoid the Martin Luther King, Jr holiday. It Y'3'was moved Ga Rankin and seconded by Elsie Duncan to approve the 2006 B Calendar ary. Motion as presented for the 3r8 Tuesday of each month with the exception carried. G. DISCUSSION ITEMS. ad to 13, lsie D Chairman Johnson indicated the next Board Meeting would be moved on that t date.December Johnson Elsie Duncan and Gary Rankin indicated they could not be present ntee a suggested several options, either the staff contact other Board members to guar meeting date.quote for that date, or reschedule to another day, or hold over business for the January Y Don Teme er advised there would be a public meeting at St.Paul's Methodist S yea and encouraged to discuss the Chamberlain site. Don explained the neighborhood benefits of developing Board members to attend the public meeting. F. ADJOURN MEETING With no further business to come before the Board, Chairman Johnson adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary • I to ). 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V Z Q V z tow � = oV .J < CO E ii=v °� E = v co c — 3m om _ _ -0 co cv _ (p m _ c v _ � A Q W �w fa _ E •L m � .V C m C N a O• � 3 CU 0 CD � m N � r 5 m �2 L 0 O W go F- W za = aii � o � F— U' z I- -J z :7tcmr I- *-1cnm iiF City of Waterloo Community Development and Housing Needs Assessment Summary November 2005 Community Development and Housing Needs of Low and Moderate Income Persons A. Improve existing housing B. Create new housing units C. Rehabilitate rental units u Other Community Development and Housing Needs A. Expand existing educational programs on all aspects of community B. Provide quality single and multiple family housing options within the community C. Improve the appearance and pride of the community through the neighborhoods by promoting strategic planning D. Continued demolition of blighted areas E. Removal of Chamber fain/Br6ownfields blighted areas F. Potential expansion o 3 III. Pla nned or Potential Activities to Address Housing and Community Needs A. Continue single family rehabilitation program B. Encourage new construction by offering financial incentives to developers itation C. Allocate funds for additional�holds on the NeighborhoodServices D. Increase the numbero newsletter mailing list-revise E. Address neighborhood cleanups and code enforcement for employment opportunities F. Continue economic developmentork force development G. Support education through H. Increase transportation opportunities vember The Co mmunity Development Board adopted this needs assseasssment on of the C 15, 2005. A Public Hearing for the Consolidated Plan was held2,2005. The Waterloo City Council adopted the Council meeting on May on February 3,2003. There were no public Comprehensive Plan after a PertmHearing t�grpts from each are attached to the application. comments at either hearing. J.\NANCY_G\IDED grant application HousingFund\2005 information\CD and housing needs assessment 11-2005.doc %r: c-w? '-7/5/ MINUTES COMMUNITY DEVELOPMENT BOARD MEETING October 18, 2005 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 Chairperson Eric Johnson, at 4:00 p.m., on Tuesday, October 18, 2005. Members present: Tim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, Bernie Stroh, and Chairperson Eric Johnson. Also present: Don Temeyer, Community Planning and Development Director;Rudy Jones, Community Development Director;Nancy Gulick, Community Development Coordinator,Louis Starks, Contracts and Grants Coordinator;Perry Goodman,Neighborhood Services Coordinator; Donna Lesyshen,Waterloo Housing Partnership Coordinator; Ann Northey, Administrative Secretary; Jason Verbraken, Rehabilitation Specialist;Roan Blacker and Charlotte Kirchoff American Homeownership Foundation; Tim Jamison,the Courier;Greg Glidewell and Kent Stackhouse, Shelter Construction. A. APPROVAL OF AGENDA It was moved by Mickye Johnson,and seconded by Larry Oltrogge to approve the agenda as posted. Motion carried. B. APPROVAL OF THE MINUTES FOR THE REGULAR MEETING ON SEPTEMBER 20, 2005. It was moved by Mickye Johnson,and seconded by Elsie Duncan to approve the minutes of the regular meeting held on September 20,2005. Motion carried. C. OLD BUSINESS 1. HUD Monitoring Report and Staff Responses. Rudy Jones stated that no letter of response has yet been received from HUD at this time. This item will remain on the agenda pending their response. D. NEW BUSINESS 1. Presentation from Roan Blacker on Mount Village Development. Rudy Jones stated it is critical to assist this development as the previous ownership is in the process of foreclosure on the property. He stated if we can help to maintain these housing units as affordable, then it would be to the City's advantage. Roan Blacker introduced himself and Charlotte Kirchoff as representatives of American Homeownership Foundation. Their interest is with regard to the Mt. Village Development, consisting of two properties known as Mt. Carmel Apartments(50 units), and Mt. Village Apartments(30 units) MINUTES October 18, 2005 Page 2 both located at 1640 Mt. Cannel Drive. Mr. Blacker stated these properties have sustained some difficult times with occupancy, management, and compliance issues related to the HUD direct loan guidelines. Mr. Blacker stated his organization is in a position to work with this property to turn it around, and hopes to acquire these properties in a HUD foreclosure sale to be held on Friday, October 28, 2005. Mr. Blacker stated his organization is very adept at turning difficult and distressed properties around, making them successful and stable, sharing that his orpnization has worked with HUD offices out of St. Louis,Kansas City, and Des Moines. Mr. Blacker stated that one of the successful properties they have turned around in the Waterloo community, is the property located at 610 E. 4th Street,just across from East High School. On September 7, 2005,the Iowa Finance Authority passed a resolution to provide a$2 million dollar loan to the American Homeownership Foundation to work in acquiring these properties from HUD foreclosures to stabilize and increase the properties' occupancy rates, and finance the necessary rehab of these properties. Mr. Blacker stated that his organization would like to work with the City of Waterloo in gaining HOME funds to assist in the rehab process of these properties. Discussion ensued regarding this issue. It was moved by Mickye Johnson, and seconded by Larry Oltrogge,to authorize the release of $24,000 in HOME Program funding to Roan Blacker,for the American Homeownership Foundation for its affiliate,for the Mt. Village Development Project,which includes 50 units at Mt. Cannel and 30 units at Mt. Village, contingent upon: 1)The American Homeownership Foundation being the successful bidder for the properties at the H17D foreclosure sale on October 28,2005,and,2)approval from HUD-Omaha on the project. 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. The Chairman requested moving ahead to Item D10 under New Business: 10. New Construction Request from Shelter Construction. Rudy Jones stated that Community Development staff has taken and provided some pictures of Shelter Construction's accomplishments in the field to show their progress. Nancy Gulick stated that Shelter Construction representatives have been very cooperative in providing required information when requested. Greg Glidewell of Shelter Construction stated one home is to be completed within the next 6-8 weeks, and the foundation for the second home will be ready next month. Mr. Glidewell stated his new request is to fund the building of two more homes, all including basements. Discussion ensued regarding construction styles and techniques used in the numerous projects that Community Development is funding. Specifically the inclusion of basements and garages. Greg Glidewell stated their lots are able to sustain a garage, if the homeowner decides to construct one at their discretion. MINUTES October 18, 2005 Page 3 It was moved by Bernie Stroh moved and seconded by Mickye Johnson to provide the additional request of$20,000.00 to Shelter Construction to complete two more homes. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, Bernie Stroh, and Chairperson Eric Johnson voted Aye. Nays: none. Chairman Johnson declared the motion carried. 2. Subordination Request from John Deere Community Credit Union on Down Payment Assistance Loan for 220 Western Avenue—Bradley,Owner. Chairman Johnson stated that Jesse W. and Pamela S. Bradley have requested a subordination for their down payment assistance forgivable loan that is now in its 4t'year, maintaining a balance of $1,447.00. The terms of the proposed new loan are for$6,700.00 for 84 months at 6.25%interest. Following discussion it was moved by Larry Oltrogge and seconded by Gary Rankin to approve the subordination request to John Deere Community Credit Union for Bradley's at 220 Western Avenue. On roll call: Jim Carstensen,Elsie Duncan,Mickye Johnson,Larry Oltrogge, Gary Rankin, Bernie Stroh,and Chairperson Eric Johnson voted Aye. Nays: None. The Chairman declared the motion carried. 3. Subordination Request from Money Place Lending on Forgivable Loan at 420 Independence Avenue—Moore,Owner. Rudy Jones suggested that this subordination be tabled, as the homeowner wasn't aware that this request was being acted upon. Rudy stated that the homeowner understood that the request had not been followed through with initially, and had since forgotten about it. Rudy stated the terms of the proposal are 8.9%for 30 years for$63,000. Discussion regarding these terms and the rehab work that was completed by Community Development occurred. It was moved by Bernie Stroh and seconded by Elsie Duncan to table action on this request until further information was received. Motion carried. 4. FY2006 Consolidated Plan Amendment. Nancy Gulick stated that Neighborhood Services received a bill for their copier usage totaling over $8,000.00. Nancy stated she has visited with Donna Lesyshen on her budget, and uncovered some funds for use as public service, which is the same category as Neighborhood Services. Perry Goodman and Nancy discussed how this bill would not occur again. Discussion regarding the validity of this bill. Perry Goodman stated Neighborhood Services provide 4,300 newsletters per month, in addition to inserts, plus neighborhood association newsletters,plus flyers for monthly meetings. MINUTES October 18, 2005 Page 4 The Chairman stated this was an excellent service being provided to the community, however we should consider a better plan tailored to this type of production. Perry Goodman stated they were investigating several options for better copier cost and service. Perry also stated that between now and the end of the year Neighborhood Services has decided to offer 200 copies of the newsletter to be hand delivered to the neighborhood associations distribution,with 100 copies of each neighborhood association newsletter provided each month. Perry also stated they explored the possibility of having Central Printing provide the required copies,but that cost would be even more excessive. It was moved by Elsie Duncan and seconded by Larry Oltrogge to amend the Consolidated Plan in order to pay the$8,000 copier bill for Neighborhood Services. 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. 5. Review Proposed Revision to the Loan Subordination Policy. Chairman Johnson referenced the memorandum from Nancy Gulick, Community Development Coordinator, requesting that we ask for some type of payment to process subordination requests on the rehabilitation and/or down payment assistance forgivable loans. Rudy Jones stated that the request to revise this policy encompasses the repayment of the balance of the loan,the timeframe for approval, and the paperwork involved in this process. Chairman Johnson questioned the request, stating that he would rather charge a flat fee per subordination rather than ask for repayment on balances under$1,000, as was suggested in the memorandum. Nancy Gulick stated that she concurred with his suggestion. Following discussion it was moved by Larry Oltrogge to charge a flat fee of$300.00 for each approved subordination request beginning Wednesday,October 19,2005,for the purpose of reducing the number of requests,as each subordination takes a significant amount of time and paperwork to complete. Bernie Stroh seconded this motion. Elsie Duncan moved to amend the motion to a fee of$250.00. No second was received. Chairman Johnson called for a roll call vote to revise this policy with the $300.00 subordination processing fee. On roll call: Jim Carstensen,Mickye Johnson,Larry Oltrogge,Gary Rankin,Bernie Stroh,and Eric Johnson voted Aye. Nays: Elsie Duncan. Chairman Johnson declared the motion carried. 6. Rehabilitation Low-Interest Loan Write-Offs The Chairman reviewed a request from staff to remove two uncollectible loans from the books, as these properties were both sold at tax sales. MINUTES October 18, 2005 Page 5 Rehabilitation Loan No. 953 —Principal Balance of$3,709.31 for Aldreias Campbell at 219 Lafayette Street,Waterloo,Iowa —Property was sold at tax sale in 2003. Rehabilitation Loan No. 802—Principal Balance of 1,395.02 for Don and Marlene Young at 725 W. Parker Street, Waterloo,Iowa-Property was sold at tax sale in 1997. It was moved by Bernie Stroh and seconded by Mickye Johnson to write-off the two low-interest rehabilitation loans indicated above. 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. 7. Endorse Rehabilitation Contracts for September 2005. Chairman Johnson asked if any Board member had questions regarding the September monthly contract report. It was moved by Mickye Johnson and seconded by Elsie Duncan to officially endorse and approve the Rehabilitation Contracts entered into during the month of September 2005. (Copy attached.) 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. 8. Announce Proclamation for"Lead Week"—October 23-29,2005. Chairman Johnson referred to the information regarding"Lead Week"in the Board Packet. Rudy Jones then explained that we have a very good Rehabilitation Program in place that has incorporated the lead abatement procedures. He stated the staff have been successful in assisting homeowners through creative efforts, and have achieved our required benchmarks set forth by the Lead Grant. Rudy Jones reported that Nancy Gulick has been asked to take part in a national panel sponsored by HUD which will take place next month in Washington,D.C. Nancy has been given this opportunity because of her extensive work with the Lead Grant. Rudy stated that this would be a good time to provide recognition to the program, and all those that make it work. 9. Selection of Subcommittee Members for FY07 Funding Cycle and begin notification process. Chairman Johnson requested last year's Subcommittee members to identify themselves. Larry Oltrogge stated that he served with Bernie Stroh and Mickye Johnson last year. Chairman Johnson asked if any Board member had a desire to serve on the Subcommittee this year. Mickye Johnson, Bernie Stroh, and Jim Carstensen,volunteered to serve on the Board. It was moved by Gary Rankin and seconded by Elsie Duncan to accept these Board members as FY07 Subcommittee members for the application review process. Motion carried unanimously. MINUTES October 18, 2005 Page 6 Chairman Johnson stated his appreciation for those members choosing to serve in this capacity. Rudy Jones requested that a date be set for the Subcommittee to meet before November 4, 2005 in order to review the proposed application package for FY07. Rudy indicated the subcommittee would be contacted within the week to schedule a date. 11. New Construction Updates. Chairman Johnson referenced pictures provided of the new construction homes recently built with HOME funds. Discussion ensued regarding the positive aspects of the new construction with regard to variety in both the style of homes, and the contractors funded. Discussion continued regarding the availability of garages,which are provided with the W.C. Stokes homes, and interest in observing the purchasing choices of future homebuyers. E. DISCUSSION ITEMS Rudy Jones referenced the Homeowner Evaluation forms received by homeowners that recently received rehabilitation assistance. Rudy stated that the issues at the house on Lewis Street will be addressed, and that we plan to continue working with Mr. and Mrs. Watkins. Don Temeyer stated the Community Planning and Development Department is currently in discussion with the City Council to inform the public on the importance of tax credit projects,with the schedule for these proposed projects due by November 21, 2005. Mr. Temeyer requested that prior to review of these projects by the City,the Community Development Board endorse solicitation of information from neighborhood associations for the purpose of providing a more focused objective in the determination of which projects to recommend. Rudy suggested that it would be proactive to team with Perry Goodman,Neighborhood Services, to work on obtaining support through the Cedar Valley Coalition, prior to the advent of this process,to allow the relevant issues regarding this matter to be open and available for citywide discussion well in advance of the start of this process. F. ADJOURN MEETING With no further business to come before the Board, Chairman Johnson adjourned the meeting. Respectfully submitted, Elsie Duncan, Secretary • 0, c a a 8 V C a c E ) G W m b m d c_ g c 5 c o 0 N 0 C C O m c c C c m C •§ Ba 'n Ea CA w E > > c w � a a •a s 0 o 0 U N CO C N m Vf N .-Q 0 0 000000000000 00000 0000 0 0 0 000000000000 00000 01000 (() Z � et tgOP000 (nONOtn (M ? � cO0N0 � A ZOM) N0M ID N N mi c0000 McO OOh N. 00 M n 0O to 7 N 00) 000 (D cr N C) 0 M � (D e- I,- W � WN M N 5 U) V M G M N M M V M M 0 Q n N N N Q ��N� N. 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