Iowa City Neighborhood Development Services FY15

CITY OF IOWA CITY MEMORANDUM

Date: April22, 2014

To: City Council

From: Tracy Hightshoe, Neighborhood Services

Re: FY15 Annual Action Plan

The draft FY15 Annual Action Plan is attached for your review. The City Council will consider approval of the plan at their May 6, 2014 meeting.

The FY15 Annual Action Plan includes information on the proposed use of Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds for housing, jobs and services for low-moderate income persons.

l ! 1

...,y,_ -CITY OF IOWA CITY

Neighborhood Services

410 E. Washington St.. Iowa City. lA 52240

Phone: 319.356.5230 www.i Ggov .org/ Gommdev

.. .. .. .. ... . .. Iowa Cilv

FY15 ANNUAL ACTION Neighborhood and Development Services

CDBG -Communitv Development Block Grant HOME -HOME Investment Partnerships Funds

GENERAL

Fifth Program Year- Action Plan

The Annual Action Plan (Action Plan) is submitted to the U.S. Department of Housing and Urban Development (HUD) and serves as the formal appl ication for the use of entitlement funds that are received by Iowa Cit y.

The Act ion Plan defines the one-year activities in re lationship to the five-year goals and objectives of CITY STEPS, Iowa City's Consolidated Plan for Housing, Jobs and Services for Low-Income Residents, covering City Fiscal Years 2011-2015.

The Act ion Plan provides a brief description of the programs and projects of Iowa City for FY15 (J uly 1, 2014 to June 30, 2015), the f inal year of CITY STEPS 2011-2015, as well as fund ing announcements for the CDBG, HOME, ESG and other state and federal programs.

Table of Contents Standard Form 424: CDBG 8r.. HOME Program .................................................

Executive Summary 91.220(b) ...................................................................................... ! Objectives and Outcomes Evaluation of Past Performance

Citizen Participation 91.200 8t 91.220(b) ...................................................................... 3

Resources and Objectives 91.220 {c) ................................................................. 4 Federal Resources Other Resources & Leverage Annual Objectives (Table 3A)

Activities to be Undertaken & Outcome Measures 91.220 (d)( e) ................................. 7 Table 3C - Consolidated Plan Listing of Projects ... ..... ... .. ... .... ..... ................ . .... ..... ..... . 8

Geographic Distribution 91.220 (f) ............................................................................. 22 Comparison of LMI Block Groups and Minority Concentration Map .. ..... ... .. ..... ..... ....... .. 24 FY14 Project Locations .. ... .. .... . ..... ...... .... .. ... ... .. .... . ..... ...... ...... ...... ..... .. ... ... .. .... . .... 28

Affordable Housing Goals 91.220 (g) .............................................................. 29 Table 38 - Annual Housing Completion Goals

Public Housing 91.220 (h) ............................................................................. 30

Homeless & Other Special Needs Activities 91.220 (i) ................................................ 30

Barriers to Affordable Housing 91.220 (j) ................................................................... 32

Other Actions 91.220 (k) ............................................................................... 34

HOME Program Specific Requirements 91.220 (I) ....................................................... 37 Recapture/Resale Provisions Fair Housing Affirmative Marketing

Monitoring 91.230 ............................................. .......................................................... 45

Certifications 91.225 ................................................................................................... 48

Appendix A - Comments Received & Staff Response ................................................... 58

SF 424 The SF 424 is part of the CPJv.rP .Annual Acti on Plan. SF 4 24 form fiel ds are included in thi s docum ent . Grantee information is linked from the l CPJv.rP.xls document ofth e CPJviP tool .

SF 424 Complete the fillable fields (blue cells) in the table below. The other items are pre-filled with values from the Grantee Information Worksheet

V'-pplicant Identifier Date Submitted May 7,2013 142-6004805 Type of Submission Date Received by state State Identifier Application Pre-application Date Received by HUD Federal Identifier

142-6004805 Construction D Construction Non Construction D Non Construction

Applicant Information Jurisdiction: City of Iowa City, Iowa UOG Code Street Address Line 1: 410 E. Washington St. Organizational DUNS: 145409996 Street Address Line 2 Organizational Unit: Municipality City: Iowa City Iowa Department: Neighborhood Services & Com. Dev. ZIP: 52240 Country U.S.A Division: Neighborhood Services Employer Identification Number (EIN): County: Johnson 42-6004805 Program Year Start Date (MMIDD): 07/01 /2014 Applicant Type: Municipality Specify Other Type if necessary: Local Government: Township Specify Other Type

U.S. Department o Program Funding Housing and Urban Developmen Catalogue of Federal Domestic Assistance Numbers; Descriptive Title of Applicant Project(s); Areas Affected by Project(s) (cities, Counties, localities etc.); Estimated Funding

Community Development Block Grant 14.218 Entit lement Grant

CDBG Project Titles Description of Areas Affected by CDBG Project(s)

$600,387 CDBG Grant Amount Additional HUD Grant(s) !Describe HUD- STAR Program Leveraged

$0 Additional Federal Funds Leveraged $0 Additional State Funds Leveraged

$923,004 Locally Leveraged Funds $35,000 Grantee Funds Leveraged

$Anticipated Program Income Other (Describe) $75,588 Total Funds Leveraged for CDBG-based Project(s) $1,414,861 Home Investment Partnerships Program 14.239 HOME

HOME Project Titles Description of Areas Affected by HOME Project(s)

$366,620 HOME Grant Amount Additional HUD Grant(s) HUD - Rapid Leveraged Rehousing & State HOME

$3,970,657 Additional Federal Funds Leveraged $0 Additional State Funds Leveraged

$1 ,254,707 Locally Leveraged Funds $0 Grantee Funds Leveraged

$67,383 Anticipated Program Income Other (Describe)

Total Funds Leveraged for HOME-based Project(s) $5,765,364

Housing Opportunities for People with AIDS - NA 14.241 HOPWA

HOPWA Project Titles Description of Areas Affected by HOPWA Project(s)

$HOPWA Grant Amount '$Additional HUD Grant(s) Leveraged,Describe

$Additional Federal Funds Leveraged $Additional State Funds Leveraged

$Locally Leveraged Funds $Grantee Funds Leveraged

$Anticipated Program Income Other (Describe)

Total Funds Leveraged for HOPWA-based Project(s)

Emergency Shelter Grants Program -NA 14.231 ESG

ESG Project Titles Description of Areas Affected by ESG Project(s)

$ESG Grant Amount HUD Grant(s) Leveraged fescribe

$Additional Federal Funds Leveraged $Additional State Funds Leveraged

$Locally Leveraged Funds $Grantee Funds Leveraged

$Anticipated Program Income Other (Describe)

Total Funds Leveraged for ESG-based Project(s)

Congressional Districts of: Is application subject to review by state Executive Order Applicant Districts: 2nd I Project Districts: 2nd 12372 Process? Is the applicant delinquent on any federal debt? If DYes This application was made available to the "Yes" please include an additional document state EO 12372 process for review on DATE explaining the situation. Program is not covered by EO 12372 DYes I ON/A Program has not been selected by the state for review

Person to be contacted regarding this application

First Name: Thomas Middle Initia l: M. Last Name: Markus Title: City Manager Phone: 319.356.5010 Fax: 319.356.5217 eMail: Grantee Website: www.icgov.org Other Contact: Tracy Hightshoe

iowa-city .orQ Signature of Authorized Representative Date Signed

May 7, 2014

91.220 (B) EXECUTIVE SUMMARY Objectives & Outcomes The Annual Plan articulates funding decisions for the next year of Community Development Block Grant and HOME Investment Partnerships Program funds according to the long-term goals established in CITY STEPS, the cit y's 2011-2o1s Consolidated Plan. The CP was guided by three overarching goals that are applied accord ing to comm unity needs. These goals are:

To provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs and transit ion ing homeless persons and famil ies into housing.

To provide a suitable living environment through safer, more livable neighborhoods, greater integration of low and moderate income residents throughout the cit y, increased housing opportun it ies and re investment in deteriorating neighborhoods.

To expand economic opportunities through more j obs paying self-sufficient wages, homeow nership opportunities, development activities that promote long-term comm un ity viability and the empowerment of low- and moderate-income persons to achieve self-sufficiency.

Focus of the Plan As required by the federal government, the identification of needs and the adoption of strategies to address those needs must focus primarily on low- and moderate-income (LMI) individuals and households. The Consolidated Plan must also address the needs of persons with " special needs" such as the elderly, persons with disabilities, large families, single parents and homeless individuals and families.

Priorities Iowa City is committed to allocating funds that se rve the needs of low-to-moderate income residents. Households with incomes less than so% of the area med ian income, particularly those with extremely low incomes (less than 30% of area median income), are particular priorit ies. The city has also identified special needs indiv iduals as among those who face the greatest challenges and who should receive high priority in the expenditure of federal funds, including at-risk children and youth, low income families, the homeless and persons threatened with homelessness, the elderly, and persons w ith disabilities.

The Consolidated Plan planning process requ ires the city to specifically address needs and proposed strategies in the following three areas : housing, homelessness and community development.

Based upon outreach efforts, the following community development and housing needs were determined to have a high priority and will continue to be an emphasis of CDBG funding :

Housing Non-student renter households up to so% of MFI

Persons and families at-risk for homeless ness Owner-occupied housing units (e lderly, small family, special needs)

Public Services Crime prevention Child care services Youth programming Life skills Financial literacy

Substance prevention and care Mental hea lth

Transportation

Public Facilities and Improvements Facility improvements to the structures housing the public service providers

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Economic Development Micro-enterprise development

Outcome Performance Measures

Based on guidance provided by HUD, the following performance measurement system is utilized by the City of Iowa City. Simply stated, performance measurement is an organized process for gathering information t o determine how well programs and activities are meeting established needs and goals. HUD needs th is information in a common format to summarize program outcomes at the national level. For each activity that the city funds, it must determine the goal of the activity based on local intent, identify one objective and one outcome for each activity, indicate the objective and outcome in lOIS and report on applicable indicators in !DIS and the Consolidated Annual Performance and Evaluation Report (CAPER). Each activity must have an outcome statement. This outcome statement in its most basic form is the activity's objective plus outcome.

Three specific objectives are relative to each activity funded. These include:

Creating (or Enhancing) Suitable Living Environments. Applicable to activities that are designed to benefit communities, families, or individuals by addressing issues in their living environment. This objective relates to activities that are intended to address a wide range of issues faced by low and moderate income persons, from physical problems with their environment to social issues such as crime prevention, literacy, or elderly health services.

Providing Decent Housing. Applicable to housing programs where the purpose is to meet ind ividual family or community needs, and not programs where housing is an element of a larger effort (such as would otherwise be applied under the "Suitable Living Environment" Objective).

.. Creating Economic Development Opportunities. Applicable to activities that are related to economic development, commercial revitalization, or job creation.

Three specific outcomes are relative to stated objectives. These include:

Availability/Accessibility. Applicable to activities that make services, infrastructure, public services, public facilities, housing or shelter available or accessible to low- and moderate income people, including persons with disabilities. In this category, accessibility does not refer only to physical barriers, but also to making the affordable basics of daily living available and accessible to low- and moderate-income people.

Affordability. Applicable to activities that provide affordability in a variety of ways to low- and moderate-income people. It can include the creat ion or maintenance or affordable housing, basic infrastructure hook-ups, or services such as tra nsportation or day care. Affordabil ity is an appropriate objective whenever an activity is lowering the cost, improving the quality, or increasing the affordabil ity of a product or service to benefit a low-income household.

Sustainability. Applicable to activities or services that are aimed at improving communities or neighborhoods, helping t o make them livable or viable by providing benefit to low- and moderate-income persons or by removing or eliminating slums or blighted areas.

Evaluation of Past Performance

The City of Iowa City's past performance in the administration and implementation of the CDBG and HOME programs has fulfilled the spirit and intent of the federal legislation creating these programs. The city has facilitated affordability for decent housing, availability and accessibility to a suitable living environment, sustainability of a suitable living environment and accessibility t o economic opportunities. The following is a summary of Iowa City's past performance as reported to HUD in the FY2013 Consolidated Annual Performance and Evaluation Report (CAPER), the most recent report filed.

During FY2013, the City of Iowa City expended $1,778,290 in CDBG funds and $746, 224 in HOME f unds and leveraged $5,334,124 in private and publ ic funds. Leverage and beneficiary information for CDBG and HOME projects are realized when the project is closed.

In administering its CDBG and HOME programs, the city continued to implement the priorities established in CITY STEPS, the 2o11-2015 Consolidated Plan. The plan's three major priorities and the FY13 projects to address these priorities are identified below:

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1) Provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs and transitioning homeless persons and families into housing;

By the end of the fiscal year, 26 owner-occupied rehabilitation projects were completed, 64 rental units rehabilitated, 12 new affordable rental homes constructed, 22 existing homes for affordable rental or permanent supportive housing acquired, and 2 homes built and sold to income eligible households.

2) Provide a suitable living environment through safer, more livable neighborhoods, greater integration of low and moderate income residents throughout the city, increased housing opportunities and reinvestment in deteriorating neighborhoods;

FY13 funding provided needed additions and or rehabilitation to seven public facilities: Community Mental Health Center, HACAP, MECCA, Domestic Violence Intervention Program, Crisis Center, Iowa Valley Habitat for Humanity and Iowa City Parks and Recreation (Fairmeadows Park). These organizations serve the following clienteles: persons with alcohol and drug addiction, persons with mental health issues, families in crisis, homeless or at risk of being homeless and those needing employment training. A splash pad was installed at Fairmeadows Park that is in a low-moderate income census tract.

FY13 operational funding was provided to Neighborhood Centers of Johnson County and Domestic Violence Intervention Program. CDBG funds were used for operational funding to non-profit organizations that assisted 1,457 persons.

Program beneficiaries are counted in the fiscal year the project is completed.

3) Expand economic opportunities through more jobs paying self-sufficient wages, homeownership opportunities, development activities that promote long-term community viability and the empowerment of low-and moderate-income persons to achieve self-sufficiency.

The CDBG Economic Development Fund was created to stimulate private sector investment that results in the creation of permanent, private sector jobs with living wages for low-to-moderate income persons in Iowa City. All CDBG economic development activities must meet the National Objective of benefiting low to moderate income persons. The program rule requires that 51o/o of the jobs created or retained must be held or made available to low-to-moderate income persons based on family size or the business must qualify as a micro-enterprise. The City approved funding for three businesses in FY12: Trumpet Blossom Cafe, Molly's Cupcakes and !Blitz Boxing and Fitness. The businesses opened in FY13 and created 20.5 FTEs.

CITIZEN PARTICIPATION Throughout the year the Housing and Community Development Commission (HCDC) holds public hearings to oversee the operation of Neighborhood Services (formerly the Community Development Division), the Iowa City Housing Authority, monitor CDBG and HOME projects, and listen to public input into these and other programs.

The City of Iowa City's current 5-year Consolidated Plan (2011-2015 CITY STEPS) was adopted in December 2009. Numerous public meetings and hearings were held to solicit public comment regarding the development of the CITY STEPS plan in accordance with the City's Citizen Participation Plan. The city ensured broad public participation in the development of CITY STEPS. The stakeholders invited to participate in the Plan are identified on Page 12 of CITY STEPS as well as the comments and staff responses received (p. 14 & 16).

HCDC and the City Council have held a number of meetings for the preparation of the FY15 Annual Action Plan and other HUD related documents. The public has been invited to participate in all of the meetings and efforts were made to encourage and increase citizen participation. The following is a chronology of the events, meetings, public hearings and actions taken in relation t o the FY15 Annual Action Plan and Iowa City's 2011-2015 Consolidated Plan (a.k.a. CITY STEPS).

Dec. 5, 2013 Dec. 18, 2013 Jan. 6, 2014 Jan. 17, 2014 Feb.20,2014 March 6, 2014 April 4, 2014

Public notice that CDBG and HOME applications are available CDBG/HOME Applicant Workshop CDBG/HOME Applicant Workshop Applications due to City of Iowa City by 12 noon HCDC meeting question/answer discussion with applicants HCDC meeting review of rankings & average funding; recommendation on funding awards Draft Annual Action Plan- 30-day comment period begins

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April17, 2014 April 23, 2014 May6, 2014 May6, 2014 May6, 2014

Anticipated Dates May15, 2014 May3o, 2014 June 16, 2014 Ju ly 1, 2014

HCDC meeting- recommendation on the Annual Action Plan to Council Public Meeting Notice Appears in Press-Citizen Expiration 30-day comment period on the FY15 Annual Action Plan City Council: public meeting on the FY15 Annual Action Plan City Council: resolution-approving the FY15 Annual Action Plan

FY15 Annual Action Plan submitted to HUD Submission of Environmental Review Record and FONSI (as applicable) Submission of Request for Release of Funds Start FY15 CDBG and HOME projects

In accordance with Iowa City's Citizen Participation Plan, the draft Annual Action Plan was available during the publ ic comment period at the Iowa City Libra ry, Neighborhood Services and on the city's website at www.icgov.org/actionplan. Special accommodations were available for persons with physical disabilities if the request was made at least seven days prior to the scheduled meeting date. In FY15 no special requests were made.

PUBLIC COMMENTS RECEIVED A 30-day public comment period regarding the FY15 Annual Action Plan ran from April 4, 2014 to May 6, 2014. A public meeting was held on May 6, 2014. Comments received and staff response can be found in Appendix A.

RESOURCES & OBJECTIVES Federal Resources The city anticipates receiving the following funds during FY2015 to help support affordable housing projects, housing rehabilitation programs, and homeless outreach and prevention activities, along with its other CDBG/HOME initiatives.

Funding Sources, FY20l.5 Entitlement Revenue $l.,l.09,978 CDBG CDBG Annual Entitlement $6oo,387 Anticipated CDBG Program Income $7s,s88 Uncommitted/Returned Projects $0

Total CDBG $675,975

HOME HOME Annual Entit lement $J66,620 Anticipated HOME Program Income $67,383 Uncommitted/Returned Projects $0

Tot al HOME $434,003

Non-Entitlement Revenue $l.2,325,437 (Federal & Other) City General Obligation Bonds (GRIP) $200,000 City Funds (UniverCity Project) $500,000 Housing Choice Vouchers, Public Housing and Family $7,654,780 Self-Sufficiency Contracts (All sources)- ICHA LIHTC- The Housing Fellowship $3,970,657 Total Resources Anticipated $l.3,435,4l.5

Other Resources and Leverage

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Iowa City is fortunate to have active and vital organizations that provide housing and supportive services within the community. As such, multiple resources (federal, state, loca l and private) are available for activities including housing, jobs and human services. In addition to these funds, other resources li ke donations and volunteers are uti lized.

According to the applications, we have been able t o estimate that $7,180,225 in other funds will be leveraged. This amounts to $7.43 leveraged for each dollar of local CDBG and HOME funds allocated by the City of Iowa City. In addition, other municipal resources such as general fund expenditures, infrastructure improvements and tax exemptions may be used to meet the City's HOME match liabil ity.

Actual leverage and HOME match figures wi ll depend on the outcomes ofthe projects proposed in this annual action plan. Upon completion of the FY15 projects the exact amount of other resources leveraged by these projects will be known and included within the Consolidated Annual Performance and Evaluation Report. The City currently has $3,007,671 in excess HOME match carried over from previous years.

Private banks and lending institutions often provide significant capital to both Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) projects. Both the City and local organ izations recognize this mutually beneficial relationship. To promote the goals and objectives of the Consolidated Plan (a.k.a. CITY STEPS) both parties have taken steps to strengthen and expand our partnerships.

As stated above, other resources include in-kind donations, volunteers, foundations and businesses. The following is a list of organizations or groups identified as contributing to FY15 CDBG and HOME projects:

Private (donations) Private (loans) Public funds (federal and state) United Way Johnson County In-kind Donations (skilled labor, goods, materials, waived fees) Volunteers City of Iowa City Iowa Finance Authorit y (Low Income Housing Tax Credits)

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Table 3A Summary of Specific Annual Objectives- P1ogram Year 4

Obj Specific Objectives Sources of Performance Expected Actual Outcome/ # Funds Indicators Number Number Objective*

Rental Housing Objectives L Increase the capacity of nonprofit HOME Organizations 1 DH-2

organizations that develop affordable housing

2. Increase affordability of decent housing HOME Housing Units 10 DH-2 by acquiring or building new units for rental housing. Owner Housing Objectives

3. Increase affordability of decent housing CDBG Housing Units 2 DH-2 by providing direct homeownership assistance to acquire a home.

4. Increase affordability of decent housing HOME/ Housing Units 22 DH-2 by rehabilitating owner-occupied CDBG housing.

Homeless Objectives 5. Increase affordability of decent housing HOME Housing Units 25 DH-2

for special needs populations (Rental Assistance)

Special Needs Objectives 6. Increase affordability of decent housing HOME Housing Units 0 DH-2

for special needs populations

7. Provide rental assistance to special HOME Housing Units 0 DH-2 needs populations.

Community Development Objectives

Infr astructure Ob_jectives

Public Facilities Objectives 7. Assist with the renovation of a variety of CDBG Public Facility 2 SL-1

facilities that provide benefits to LMI persons. Public Services Ob_jectives

8. Address the greatest needs of the City's CDBG Persons 1,675 SL-1 LMI and special needs populations with needed services. Economic Development Objectives

9. Provide working capital, job training CDBG Businesses 1 E0-2 funds to micro-enterprises or small businesses to create jobs for LMI persons

10. Provide fmancial assistance to private CDBG Businesses 4 E0-2 business for fac;ade improvements in an URA Other Objectives

'>< u come )Jec rve o es o t ;ob r c d Availability/ Accessibility Affordability Sustaina bility

Decent Housing DH-1 DH-2 DH-3 Suit able Living Environment SL-1 SL-2 SL-3

Economic Opportunity E0-1 E0-2 E0-3 6

ACTIVITIES TO BE UNDERTAKEN & OUTCOME MEASURES The following table summarizes the FY201.5 CDBG/HOME budget for the City of Iowa Cit y . The cit y's FY201.5 program activ it ies are anticipated to specifically benefit 59 housing units/households, 2 public facilities, 1.,675 persons receiving public services, one micro-enterprise and/or business creating j obs for low-moderate persons and benefit four businesses complet ing a fa

TABLE 3C

Consolidated Plan Listing of Projects

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City of Iowa City Table 3C Consolidated Plan Listing of Projects

Project: The Housing Fellowship- Rental Housing

Priority Need: Non-Student Renter Households up to 50% Ml -High

Activity: Acquisition and New Construction of Units for Rental Housing

Project Description: Land acquisition and new construction of 28 new affordable rental units, 1 0 HOME assisted, as part of a Ll HTC application.

Local Objective: Production of new, affordable rental units

Location/Target Area: To be determined , Iowa City

Objective category: D Suitable Living Environment k8l Decent Housing D Economic Opportunity D Sustainability Outcome category: D Availability/Accessibility k8l Affordability

Objective Number Project ID See above 001

Funding Sources:

HUD Matrix Code CDBG Citation CDBG 12 Type of Recipient CDBG National Objective Subrecipient Private

HOME $200,000 Federal Funds (other) $500,000

Start Date Completion Date 07/01/2014 04/01/2017 IFA- LIHTC Funds $3,970,657 Performance Indicator Annual Units Housing Units (1 0) 5

Local Funds (private) $1 075 000

LocaiiD Units Upon Completion Applicant Equity $104 707 2015.001 10 Total $5 850 364

Staff Recommended Financial Terms: To be determined after underwriting analysis.

Period of Affordability: 10 Years

The primary purpose of the project is to help: Dthe Homeless 0Persons with HIV/AIDS 0Persons with Disabi lities 0Public Housing Needs

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Project: The Housing Fellowship- CHDO Operating Expenses

Priority Need: Other Public Services- High

Activity: CHDO Operating Expenses

Project Description: As a Community Housing Development Organization (CHDO), applicant is eligible to receive funds for operational expenses. Applicant owns and manages over 147 affordable rental units and has placed 17 owner-occupied homes in a community land trust.

Local Objective: Utilize local CHDOs to provide financial and technical assistance in developing/maintaining housing for low income households. (See CITY STEPS p. 48)

Location/Target Area: 322 E. 2nd St., Iowa City

Objective category: Outcome category:

Objective Number See above HUD Matrix Code 198 Type of Recipient CHDO Start Date 07/01/2014 Performance Indicator Organizations (9) LocaiiD 2015.002

Financial Terms: Grant Period of Affordability: NA

D Suitable Living Environment Decent Housing D Economic Opportunity D Sustainability D Availability/Accessibility Affordability

Project ID Funding Sources: 002 CDBG Citation CDBG NA CDBG National Objective HOME $15,000 Federal Funds NA (other) Completion Date 06/30/2015 State Funds Local Funds Annual Units (private) $50,000 1 Units Upon Completion Grantee Funds 1 Total $65,000

The primary purpose of the project is to help: Dthe Homeless DPersons with HIV/AIDS DPersons with Disabilities DPublic Housing Needs

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Project: Shelter House- Rapid Rehousing

Priority Need: Persons and Families At-Risk for Homelessness- High

Activity: Tenant Based Rental Assistance

Project Description: Up to six months of rental assistance , plus security deposit, for homeless persons/families transitioning to permanent housing. Supportive services provided for up to six months on issues related to housing and employment retention , money management and preparation for when assistance ends.

Local Objective: Rent and utility deposit assistance encouraged to maintain housing

Location/Target Area: Citywide


Objective Number See above HUD Matrix Code 05S Type of Recipient Subrecipient Private Start Date 07/01/2014 Performance Indicator Households (04) LocaiiD 2015.003

Financial Terms: Grant Period of Affordability: NA

D Suitable Living Environment Decent Housing D Economic Opportunity D Sustainability D Availability/Accessibility Affordability

Project ID Funding Sources: 003 CDBG Citation CDBG NA CDBG National Objective HOME $75 000 Federal Funds NA (other) $40,000 Completion Date 06/30/2015 Annual Units

State Funds Local Funds (private) $25,000

25 Units Upon Completion Grantee Funds 25 Total $140,000

The primary purpose of the project is to help: Homeless 0Persons with HIV/AIDS 0Persons with Disabilities 0Public Housing Needs

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Project: Iowa City Housing Rehabilitation Program

Priority Need: High- Owner Occupied Housing Rehab.

Activity: Rehab; Single Unit Residential

Project Description: Provide rehabilitation services to low-to-moderate income homeowners. Services include comprehensive rehabilitation , exterior rehabilitation , emergency repair, accessibility, mobile home repairs and energy efficiency.

Local Objective: Weatherization , emergency rehabilitation, rehabilitation and handicap accessibility for elderly and small family owner households. (See CITY STEPS p. 92)

Location/Target Area: Citywide

Objective category: D Suitable Living Environment Decent Housing D Economic Opportunity D Sustainability Outcome category: D Availability/Accessibility ]2l Affordability


Funding Sources:

HUD Matrix Code CDBG Citation CDBG $225 659 14A 570.202 Type of Recipient CDBG National Objective Local Government LMH Start Date Completion Date 07/01/2014 06/30/2015

HOME $99 341 Federal Funds (other)

State Funds Performance Indicator Annual Units Housing Units (1 0) 24

Local Funds (private)

LocaiiD Units Upon Completion Grantee Funds 2015.004 24 Total $325,000

Financial Terms: Various terms based on homeowner's ability to repay the loan under main rehabilitation program ($200,000 CDBG). HOME ($99,341) and CDBG ($25,659) targeted to specific neighborhoods. Within these targeted neighborhoods, 50% of loan to homebuyer shall be forgiven in 5-10 years based on amount of funding.

The primary purpose of the project is to help: Othe Homeless 0Persons with HIV/AIDS 0Persons with Disabilities OPublic Housing Needs

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Project: Iowa City Targeted Down payment Assistance

Priority Need: Medium- Homeownership Assistance

Activity: Down payment Assistance

Project Description: Provide acquisition assistance fo r homes in targeted neighborhoods and offer CDBG/HOME rehabilitation if needed after acquisition.

Local Objective: Elderly and small family owner households experience high degree of cost burden . Acquisition assistance to low-moderate income homebuyers to acquire home. CDBG/HOME owner-occupied housing rehabilitation will be offered after acquisition to maintain and preserve affordable housing stock in targeted neighborhoods. (See CITY STEPS p. 92)

Location/Target Area: UniverCity program boundaries, Towncrest, Twain and Grant Wood neighborhoods, Iowa City

Objective category: D Suitable Living Environment Decent Housing D Economic Opportunity D Sustainability Outcome category: D Availability/Accessibility Affordability


Funding Sources:

HUD Matrix Code CDBG Citation CDBG $15,000 13 570.201 (n ) Type of Recipient CDBG National Local Government Objective

LMH

HOME Federal Funds (other)

Start Date Completion Date 07/01/2014 06/30/2015 Performance Indicator Annual Units


Housing Units (1 0) 2 Grantee Funds LocaiiD Units Upon Completion 2015.005 2

Total $370,000

Financial Terms: Conditional Occupancy Loan, forgiven after five years.

The primary purpose of the project is to help: D the Homeless D Persons with HIV/AIDS 0 Persons with Disabilities O Public Housing Needs

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City of Iowa City

Project: Arc of Southeast Iowa- Playground

Priority Need: Child Care Facility - High

Activity: Public Facility

Table 3C Consolidated Plan Listing of Projects

Project Description: Acquisition and installation of a playground for afterschool program for children with disabilities.

Local Objective: Support affordable child care for children with disabilities (See CITY STEPS p. 78)

Location/Target Area: 2620 Muscatine Ave. , Iowa City

Objective category: 1Z1 Suitable Living Environment D Decent Housing D Economic Opportunity D Sustainability Outcome category: !ZI Availability/Accessibility D Affordability


Funding Sources:

HUD Matrix Code CDBG Citation CDBG $75,000 03M 570.201 (c) Type of Recipient CDBG National Objective Subrecipient Private LMC


Start Date Completion Date 07/01 /2014 06/30/2015 State Funds Performance Indicator Annual Units Public Facility (11) 1

Local Funds (private) $25 000

LocaiiD Units Upon Completion Grantee Funds 2015.006 1 Total $100 000

The primary purpose of the project is to help: Othe Homeless 0Persons with HIV/AIDS 1:8.1Persons with Disabilities 0Public Housing Needs

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Project: United Action for Youth -Facility Rehabilitation

Priority Need: Youth Center- High

Activity: Public Facility

Project Description: Rehabilitation of lower level and foundation at the Youth Counseling and Therapy bu ilding due to water issues. Agency provides services to homeless youth , children and families seeking mental health counseling.

Local Objective: Improve public facilities that house youth and mental health services (CITY STEPS p. 92)

Location/Target Area: 410 Iowa Avenue , Iowa City

Objective category: C8l Suitable Living Environment D Decent Housing D Economic Opportunity D Sustainability Outcome category: C8l Availability/Accessibility D Affordabi lity


Funding Sources:

HUD Matrix Code CDBG Citation CDBG $25,000 030 570.201 (c) Type of Recipient CDBG National Objective Subrecipient Private LMC Start Date Completion Date 07/01/2014 06/30/2015

HOME Federal Funds {other)

State Funds Performance Indicator Annual Units Public Facility (1 1) 1

Local Funds (private)

LocaiiD Units Upon Completion Grantee Funds 2015.007 1 Tota l $25,000

The primary purpose of the project is to help: O the Homeless 0Persons with HIV/AIDS 0Persons with Disabi lities OPublic Housing Needs

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Project: Crisis Center -Emergency Assistance Program

Priority Need: Other Public Services- High

Activity: Operations

Project Description: Provide operational funding (staff salaries) to operate the Emergency Assistance Program for those in crisis. Clients can receive limited financial assistance to maintain or obtain housing, utilities, birth certificates, prescriptions or other emergency services.

Local Objective: Promote programs that provide services or support to homeless or at risk populations. (See CITY STEPS p. 70)

Location/Target Area: 1121 Gilbert Court, Iowa City

Objective category: C8l Suitable Living Environment D Decent Housing D Economic Opportunity D Sustainability Outcome category: C8l Availability/Accessibility D Affordability


Funding Sources:

HUD Matrix Code CDBG Citation CDBG $38,000 05 570 .201 (e) Type of Recipient CDBG National Objective Subrecipient Private LMC


Start Date Completion Date 07/01/2014 06/30/2015 State Funds Performance Indicator Annual Units People (01) 800

Local Funds (private) $78,000

LocaiiD Units Upon Completion Grantee Funds $2,000 2015.008 800 Total $118,000

The primary purpose of the project is to help: D the Homeless DPersons with HIV/AIDS DPersons with Disabilities DPublic Housing Needs

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City of Iowa City Table 3C

Consolidated Plan Listing of Projects

Project: Neighborhood Centers of Johnson County - Aid to Agencies

Priority Need: Youth Services- High


Project Description: Agency provides licensed child care to approximately 400 low income children at their Broadway and Pheasant Ridge Centers.

Local Objective: Promote programs that provide youth services/childcare . (See CITY STEPS p. 92)

Location/Target Area: 2105 Broadway St. , 2651 Roberts Rd. , Iowa City


Objective Number See above HUD Matrix Code 050 Type of Recipient Subrecipient Private Start Date 07/01 /2014 Performance Indicator People (01) LocaiiD 2015.009

1Z1 Suitable Living Environment D Decent Housing D Economic Opportunity D Sustainability !ZI Availability/Accessibility D Affordabi lity

Project ID 009

Funding Sources:

CDBG Citation CDBG $32,000 570.201 (e) CDBG National Objective LMC


Completion Date 06/30/2015 State Funds Annual Units 400


Units Upon Completion Grantee Funds $18 000 400 Total $220,000

The primary purpose of the project is to help: O the Homeless 0 Persons with HIV/AIDS 0 Persons with Disabilities 0Public Housing Needs

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Project: Shelter House- Aid to Agencies

Priority Need: Homeless Services, Employment Training- High


Project Description: Provide operational funding for the STAR program. Shelter House clients intending more than a two-week stay at the shelter are required to participate in STAR. The STAR program addresses barriers to employment and works with the client on housing and vocational issues, mental health, substance abuse, transportation and related needs.

Local Objective: Expand availability of case workers for persons who are homeless. Support Training and Access to Resources (STAR) Program (CITY STEPS p. 93).

Location/Target Area: 430 Southgate Ave . Iowa City


Objective Number See above HUD Matrix Code 05 Type of Recipient Subrecipient Private Start Date 07/01/2014 Performance Indicator People (01) LocaiiD 2015 .010

[Z[ Suitable Living Environment D Decent Housing D Economic Opportunity D Sustainability [Z[ Availability/Accessibility D Affordability

Project ID Funding Sources: 010 CDBG Citation CDBG $30,000 570.201 (e) CDBG National Objective

HOME Federal Funds

LMC (other) $456,857 Completion Date 06/30/2015 State Funds Local Funds Annual Units (private) $69,243 475 Units Upon Completion Grantee Funds $15,000 475 Total $571 ,100

The primary purpose of the project is to help: Homeless OPersons with HIV/AIDS OPersons with Disabilities OPublic Housing Needs

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Project: City of Iowa City - Economic Development Fund

Priority Need: High- Micro-enterprise Assistance, For Profit Financial Assistance

Activity: Economic Development

Project Description: These funds will be primarily used for assisting micro-enterprise businesses and fo r small businesses creating jobs for primarily low to moderate income persons. (HUD matrix codes 18A or 18C)

Local Objective: Increase employment opportunities and assist micro-enterprise development for low-moderate income persons. (See CITY STEPS p. 79 & 92)

Location/Target Area: Citywide , Iowa City

Objective category: D Suitable Living Environment D Decent Housing Opportunity D Sustainability Outcome category: D Availability/Accessibility Affordability


Funding Sources:

HUD Matrix Code CDBG Citation CDBG $24,239 18C 570.203(b) Type of Recipient CDBG National Objective Local Government LMJ Start Date Completion Date 07/01/2014 06/30/2015

HOME Federal Funds {other)

State Funds Performance Indicator Annual Units Businesses (08) 1


LocaiiD Units Upon Completion Grantee Funds 2015.011 1 Tota l $75,000

The primary purpose of the project is to help: D the Homeless D Persons with HIV/AIDS DPersons with Disabi lities DPublic Housing Needs

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Project: City of Iowa City- Economic Development, Building Change

Priority Need: Low- Rehab. of Commercial Buildings

Activity: Economic Development

Project Description: Assist privately owned commercial buildings renovate exterior facades in an urban renewal area or buildings designated as slum and blight.

Local Objective: City will fund its Economic Development Fund annually. Undertake urban renewal activities that promote new economic, commercial and housing development such as rehabilitation and conservation of properties (p. 59)

Location/Target Area: City-University Urban Renewal Area , Iowa City


Objective Number See above HUD Matrix Code 14E

Type of Recipient Local Government Start Date 07/01/2014 Performance Indicator Businesses (08) LocaiiD 2015.012

D Suitable Living Environment D Decent Housing Economic Opportunity Sustainability D Availability/Accessibility D Affordability

Project ID Funding Sources: 012 CDBG Citation CDBG $75,000 570 .202 (a)(3)(commercial buildings) HOME Federal Funds CDBG National Objective (other) SBA/SBS Completion Date 06/30/2015


Annual Units 4 Grantee Funds Units Upon Completion Total $250,000 4

The primary purpose of the project is to help: D the Homeless DPersons with HIV/AIDS DPersons with Disabilities DPublic Housing Needs


Project: City of Iowa City- Planning & Administration

Priority Need: NA

Activity: Planning & Administration

Project Description: Successfully administer the CDBG & HOME programs. Research and plan for projects and activities designed to meet the needs of low and moderate income households.

Local Objective: Administration of the CDBG and HOME programs.

Location/Target Area: 410 E. Washington St. , Iowa City

Objective Number Project ID Funding Sources: See above 013 HUD Matrix Code CDBG Citation CDBG $136,077 21A 570.206 Type of Recipient CDBG National Objective

HOME $44,662 Federal Funds

Local Government NA (other) Start Date Completion Date 07/01/2014 06/30/2015 State Funds Local Funds Performance Indicator Annual Units (private) Organizations (09) 1 LocaiiD Units Upon Completion Grantee Funds 2015.013 1 Total $180,739

GEOGRAPHIC DISTRIBUTION Description of the Geographic Area Priority CDBG funding areas in Iowa City include those areas where there is a high rate of low and moderate income (LMI) persons. The following narrative describes the characteristics of these areas.

Between 2000 and 2010, Iowa City's population increased by 5,642 res idents, a 9.1% increase. The racial minority share of Iowa City's population rose from 12.7% to 17.5% or 7,886 to 11,858. The largest increase was in the number of Hispanics (of any race), with an increase of 1,794 persons, followed by white persons wit h an increase of 1,670 and black persons by 1,579. The largest m inority in Iowa City remains Asian/Pacific Islanders w ith 6.g% of Iowa City's population.

Population by Race and Hispanic Origin, 1990 - 2010 Indian/ Alaskan Asian/Pacific Persons of Hi spanic

Total White Black Native Islander Other Origin location Population It % It % It % It % It % It %

1990 Iowa Ci ty 59,738 54,410 91.1 1,516 2.5 116 0.2 3,341 5.6 355 0.6 1,018 1.7

Johnson Co. 96,119 89,649 93.3 1,979 2.1 176 0.2 3,837 4 478 0.5 1,435 1.5 Iowa 2,776,755 2,683,090 96.6 48,090 1.7 7,349 0.3 25,476 0.9 12,570 0.5 32,647 1.2

2000 Iowa Ci ty 62,220 54,334 87.3 2,333 3.7 191 0.3 3,536 5.7 1,826 2.9 1,833 2.9 Johnson Co. 111,006 100,051 90.1 3,223 2.9 313 0.3 4,626 4.2 2,793 2.5 2,781 2.5 Iowa 2,926,324 2,784,640 93.9 61,853 2.1 8,989 0.3 37,644 1.3 69,198 2.4 82,473 2.8

2010 Iowa Ci ty 67,862 56,004 82.5 3,912 5.8 144 0.2 4,708 6.9 3,094 4.6 3,627 5.3 Johnson Co. 130,882 112,083 85.6 6 ,305 4.8 287 0.2 6 ,870 5.2 5 ,337 4.0 6,200 4.7 Iowa 3,046,355 2 ,781 ,561 91.3 89 ,148 2.9 11 ,084 0.4 55,097 1.8 109,465 3.6 151,544 5.0

!sources: U.S. Census 1990, 20002010

Concentrations of Minority and Hispanic Persons

The follow ing table presents population by race and Hispanic origin at the census tract level. CITY STEPS defines areas of racial or ethnic concentration as census tracts or block groups where t he percentage of a specific minority group is 10 percentage points or higher than the City overall (for that group).

Based on the CITY STEPS definition for racial or ethnic concentration, there are three census tracts that meet this criterion based on the 2010 Census. Census Tract 4 w ith 21.2% Asian/Pacific Islander residents. The overall percentage of Asian/Pacific Islander is 6.g%. Census Tract 18, Block Group 1 and 2 with 16. o% and 16.7% Black residents, City overall is 5.8%, as well as Block 2 with 16.7% Hispanic origin, City overa ll is 5.3%. Census Tract 104 with 25.3% Hispanic origin, City overall is 5.3%.

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Population by Race , Hispanic Origin by Census Tract, 2010

Persons of One Race

I l lnd ian;l-aska n I Asian/ Pacific I Persons of Two I Pe rsons of Census To tal White Black Nat1 ve Islander Other o r More Races His panic Origin Tract Populatio n # % tt % # % # % # % tt % # %

1 (part) 5,816 4,846 83.3% 172 3.0% u 0.2% 358 6.2% 262 4.5% 166 2.9% 526 9.0% 4 (part) 6, 566 4,167 63.5% 704 10.7% 14 0.2% 1,394 21.2% 82 1.2% 205 3.1% 208 3.2% 5 (part) 6,134 4,929 80.4% 307 5.0% 15 0.2% 657 10.7% 70 1.1% 156 2.5% 249 4.1%

6 3,001 2,322 77.4% 171 5.7% 7 0.2% 402 13.4% 29 1.0% 70 2.3% 109 3.6% 11 3,934 3,577 90.9% 77 2.0% 9 0.2% 155 3.9% 28 0.7% 88 2.2% 140 3.6% 12 1,928 1,830 94.9% 26 1.3% 4 0.2% 39 2.0% 10 0.5% 19 1.0% 59 3.1% 13 3,006 2,753 91.6% 74 2.5% 6 0.2% 73 2.4% 31 1.0% 69 2.3% 76 2.5%

14 (part) 4,587 3,988 86.9% 329 7.2% 18 0 .4% 103 2.2% 44 1.0% 105 2.3% 146 3.2% 15 2,553 2,304 90.2% U6 4.9% 9 0.4% 35 L4% 17 0.7% 62 2.4% 73 2.9% 16 7, 267 6,631 91.2% 139 L9% 14 0.2% 288 4.0% 51 0.7% 144 2.0% 221 3.0%

17 (part) 2,814 2,480 88.1% 153 5.4% 1 0 .0% 35 1.2% 57 2.0% 88 3.1% 144 5.1% 18 Block 1 4,601 3,216 69.9% 736 16.0"/o 6 0.1% 218 4.7% 281 6.1% 144 3.1% 529 11.5% 18 Block 2 3,790 2,490 65.7% 634 16.7% 12 0.3% 210 5.5% 291 7.7% 153 4.0% 632 16.7%

21 3,784 3,299 87. 2% 102 2.7% 4 0 .1% 271 7.2% 24 0.6% 84 2.2% 159 4. 2% 23 4,510 3,943 87.4% 92 2.0% 7 0.2% 330 7.3% 48 1.1% 90 2.0% 176 3.9%

104 (part) 475 376 79.2% 28 5.9% 1 0.2% 3 0.6% 51 10.7% 16 3.4% 120 25.3% 105 (part) 3,096 2,853 92.2% 42 1.4% 5 0.2% 137 4.4% 19 0.6% 40 1.3% 60 1.9% Io wa City 67,862 56,004 82.5% 3,9 U 5.8% 144 0.2% 4,708 6.9% 1,395 2.1% 1,699 2.5% 3,627 5.3%

Source: U.S. Census 2010 Summary

Low and Moderate Income Areas

The fol lowing t able presents information regard ing low and moderate income (LMI) persons in Iowa City. LMI persons, as determined by HUD, have incomes at or below 8o% of the median family income (MFI). In its 2009 est imates, HUD determined that there were 29,895 LMI persons in Iowa Cit y, equivalent to 53.2% of the population for whom t h is rate is determined. HUD reported t hat the FY 2009 MFI in Iowa City was $]6,ooo.

In Iowa City, t he number of LM I persons includes university students w ho are living away from home w hile attending college (i.e., l iving in Iowa City for the purpose of attending col lege). The census counts these indiv iduals in the location of their " usual residence." Usua l residence is the place where a person lives and sleeps most of the time. Th is place is not necessarily the same as the person's voting residence or legal residence. A lso, non-citizens w ho are l iving in the U.S. are included, regardless oftheir immigration status.

HUD defines an LMI census tract or block group as one in which 51% or more of the population have incomes of 8o% or less of the MFI. Accord ing t o these criteria, 13 of the cit y's populated census block groups qual ify as LMI areas. Details on the LMI status of each census block group appear in the following table.

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Low /Moderate Income Persons by Block Group, 2009

Census Block Number of LMI Percent LMI Census Block Number of LMI Percent LMI Tract Gro up Per s ons Persons Tract Group Persons Persons

1 (part) 1 684 28.0% 15 2 448 38.8% 1 (part) 2 916 46.0% 16 l 1 2,874 81.6% 4 (part) 1 2,886 54.3% 16 2 2,747 96.7% 5 (part) 1 0 0.0% 17 (part) 1 340 35.0% 5 (part) 2 2,449 42.2% 17 (part) 2 279 38.4% 6 1 2,163 71 .1% 17 (part) 3 691 56.2% 11 1 1,191 74.0% 18 (part) 1 2,184 57.0% -- - -11 2 1,534 84.1% 18 (part) 2 1,866 57.4% 12 1 241 28.3% 21 1 27 100.0% 12 2 326 32.5% 21 2 1 091 90.3% 13 1 315 17.7% 23 1 354 40.1% 13 2 284 20.5% 23 2 796 50.7% 14 (part) 1 177 26.5% 23 3 0 0.0% 14 (part) 2 519 31.7% 104 (part) 4 699 60.5% 14 (part) 3 866 39.0% 105 (part) 1 188 23.4% 15 1 760 52.0% Iow a City -- 29,895 53.2% Note: Data tnc/udes all ctty rest dents. Source: U. S. Department of Housing and Urban Development

Concentrations ofLMI Persons and Minority Persons

Census tracts 4, 18 and 104 were previously identified as areas of racia l concentrat ions, t hey are also considered LMI areas with a percentage of LMI persons above 51%. The fo llowing map il lustrates this area.

2010 c.&nsua Brock Groups

D ........ a ....

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Basis for Allocating Investments

The federal CDBG and HOME funds are intended to provide low and moderate income households with viable communities, including decent housing, a suitable living environment, and expanded economic opportunities. Eligible activities include community facilities and improvements, housing rehabilitation and preservation, affordable housing development activities, public services, economic development, planning, and administration.

The system for establishing the priority for the selection of these proj ects is predicated upon the following criteria:

Meeting the statutory requirements ofthe CDBG and HOME Programs Meeting the needs of low and moderate income residents Focusing on low and moderate income areas or neighborhoods

Coordination and leverag ing of resources Response to expressed needs Sustainability and/or long-term impact, and The ability to demonstrate measurable progress and success.

Iowa City will invest its CDBG funds in areas primarily impacted by non-student LMI persons. CDBG and HOME funds will be focused in areas that are home to famil ies, the elderly, the disabled and the homeless. Several of the city's LMI census areas are located in the downtown area and include the University of Iowa and a significant rental housing stock that is predominantly occupied by students. In 2010, the City working in collaboration with the University of Iowa and several community partners, initiated the UniverCity project. The project's goal is to create a healthy balance of owner occupied and renter households within downtown/university neighborhoods. Although funds will not be used for student housing, funding wil l be available for housing in these neighborhoods for families (non-student households).

The City Counci l encourages the development of affordable housing throughout the city. With the goals of avoiding placing new rental housing in areas with a concentration of poverty and to have diverse neighborhoods in terms of a range of income levels, the City Council adopted a site location model on February 15, 2011 where city funding would be available for the acqu isition or construction of new affordable rental housing. This policy does not apply to rental housing projects for the elderly or persons with disabilities as well as the rehabilitat ion of existing rental properties. This allows the city to improve and stabilize rental housing in low income neighborhoods and provide decent, safe and affordable housing throughout the city. The Affordable Housing Location Model identifies where the city will provide funding for applicable rental housing sites.

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Funding unavailable for assisted rental housing (new construction & acquisition)* Funding available for assisted rental housing

* Restriction does not apply to assisted rental housing projects for elderly and persons with disabilities or rehabilitation of ex isting rental properties

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Obstacles to Meeting Underserved Needs The primary obstacle to meeting underserved needs is the limited resources available to address identified priorities. Iowa City will partner with other publ ic agencies and non-profit organizations, when feasible, to leverage resources and maximize outcomes in housing and community development.

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Activity + Administration/Planning 1--+------JU * Economic Develoment Q Housing ... Public Facilities

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AFFORDABLE HOUSING GOALS TABLE 38 ANNUAL HOUSING COMPLETION GOALS

Annual Resources used during the period ANNUAL AFFORDABLE RENTAL Expected HOUSING GOALS (SEC. 215) Number

Completed CDBG HOME ESG HOPWA

Acquisition of existing units 0 r ..., r Production of new units 10 r 17 r Rehabilitation of existing units 0 ..., ., r r Rental Assistance 25 r 17 r Total Sec. 215 Rental Goals 35 r .17 r r ANNUAL AFFORDABLE OWNER HOUSING GOALS (SEC. 215)

Acquisition of existing units 0 r r Production of new units 0 r r Rehabilitation of existing units 22 .17 p Homebuyer Assistance 2 p r r Total Sec. 215 Owner Goals 24 r r r r ANNUAL AFFORDABLE HOUSING GOALS (SEC. 215)

Homeless 25 r 17 r r Non-Homeless 34 17 p r 'I Special Needs 0 r r r r Total Sec. 215 Affordable 59 p Housing p r r ANNUAL HOUSING GOALS

Annual Rental Housing Goal 35 r .17 L r Annual Owner Housing Goal 24 r;1 L r Total Annual Housing Goal 59 p .17 r r For the purpose of identification of annual goals, an assisted household is one that will receive benefits through the investment of Federal funds, either alone or in conjunction with the investment of other public or private funds.

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PUBLIC HOUSING Public Housing Activities The Iowa City Housing Authority is a division of the City of Iowa City established in 1969 to administer housing assistance programs throughout its jurisdiction, including all of Johnson County, Iowa County and part of Washington County. In calendar year 2013, the Housing Authority received $7.1 million for Public Housing, Housing Choice Voucher and Family Self-Sufficiency Programs. Of the total number of vouchers available to the Housing Authority, approximately 68% are utilized in Iowa City.

The City of Iowa City owns and operates a public housing program. Public housing was established to provide affordable, decent and safe rental housing for eligible low-income families, the elderly and persons with disabilities. HUD distributes federal subsidies to the Iowa City Housing Authority (ICHA) to operate and manage the properties. The City of Iowa City owns 81 units of public housing, while the ICHA serves as the landlord for the units. In CY13, the Housing Authority paid approximately $28s,ooo to private sector contractors for the capital improvement, general maintenance and repair ofthe Public Housing properties.

The ICHA offers several programs to publ ic housing residents to encourage and promote access to homeowne rsh ip. Programs include the Affordable Dream Home Ownership Program (ADHOP), HCV Homeowners hip Program and the Family Self Sufficiency Program.

The Affordable Dream Home Ownership Program is operated, managed and funded solely by the ICHA. It offers opportunities for income eligible families to purchase newly constructed or newer homes. The families may currently be assisted through the Public Housing or Section 8 Rental Assistance programs.

The HCV Homeownership program permits eligible participants, the option of purchasing a home with HCV assistance rather than renting. Public Housing tenants are eligible for a Special Admission to the HCV Homeownership program if they have lived in a Public Housing unit longer than 1 year and their total tenant payment (TIP) is higher than $499

The Family Self-Sufficiency (FSS) Program promotes se lf-sufficiency and asset development by providing supportive services to participants to increase their employability, to increase the number of employed participants, and to encourage increased savings through an escrow savings program. This program is designed t o work with households on a five-year plan to attain financial self-sufficiency as well as provide rental assistance.

Addressing "troubled" designation The Iowa City Housing Authority is not des ignated as a troubled agency by HUD.

HOMELESS AND SPECIAL NEEDS ACTIVITIES In light of the limited amount of CDBG and HOME funds available t o the City of Iowa City, not all of the area's homeless needs can be addressed using federal funds. The city does not receive Emergency Shelter Grant (ESG) or HOPWA entitlement funds to assist with homeless needs, and it relies on a variety of community agencies to provide basic needs assistance and other support for the local homeless population.

During FY15, CDBG and HOME funding for Iowa City will support programs to provide decent and safe living environments for homeless and those at risk of becoming homeless. The City will fund operations at the Crisis Center for those in crisis. Limited financia l assistance for rent, uti lities, birth certificates, prescriptions, etc. will be provided for homeless or at-risk persons or famil ies. HOME funds will be used to transition persons who are homeless to permanent housing through the Rapid Re-Housing program offered through Shelter House. CDBG funds w ill also provide operational funds for the STAR program at Shelter House, a general use shelter.

The city maintains support for the Johnson County Local Homeless Coordinating Board, the region 's Continuum of Care (CoC) organization. Several of the nonprofit social and human service agencies that provide services to the homeless and those at risk of becoming homeless receive public and private funds that are used to operate

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emergency shelters, transitional housing facilities and permanent supportive housing facilities throughout the area. These funds are also used to provide supportive services such as case management, counseling, job training and life skills classes.

The City also contributes and supports various agencies that provide services to the homeless and special needs population through Aid to Agencies. The City contributes CDBG, general fund and uti lity revenues to help assist local service agencies provide services. Non-profit agencies apply through the United Way Joint Funding process to access these funds. Applicants can apply for United Way, Johnson County, Iowa City and Coralville f unds under one application. Each funding entity determines how they will allocate the funds they contributed. Iowa City wi ll fund 18 agencies through this fund in FY15.

The Continuum of Care (CoC) addresses the housing and supportive services needs in each stage of the Continuum of Care process to help homeless persons make the transition to permanent housing and independent living. The city wi ll continue to support the CoC strategy to meet the needs of homeless persons and those at risk of becoming homeless. Additionally, the city has identified strategies designed to address the needs of homeless persons:

Advocate human services coordination. Pursue a single application for service system entry.

Pursue the formation of a local computerized system that connect clients with services, serves as a database, and provides inter-agency referrals.

Support continued f unding of Johnson County Council of Governments (JCCOG) Human Services Coordinator.

Support the Local Homeless Coordinating Board (LHCB).

Increase understanding of issues surrounding Johnson County homeless ness. Conduct a study of rural homelessness coordinated with JCCOG to determine the level of unmet need, formulate outreach efforts and support requests for add it ional funding.

Conduct a survey to determine community attitudes surrounding affordable housing and homeless organizations and participants.

Expand/Rehabilitate Emergency Shelter. Improve and maintain existing shelter facilities.

Support expansion or addition of facilities to meet increased demand. Expand staff within existing system to provide improved service.

Support plans for improving day shelter opportunities. Expand available services such as social/case worker availability, facilities, childcare opportunities, improved public and private transportation access, showers.

Supported Training and Access to Resources (STAR) program continuation.

Improve transitional housing programs for families. Continue to develop scattered site, transitional housing programs requiring participation in supportive services.

Provide transitional housing for single individuals. Continue to develop Single Room Occupancy (SRO) type housing for persons living alone with

access to supportive services. Continue support of transitional housing for unaccompanied youth.

Provide special needs transitional housing. Continue to support the development oftra nsitional housing for persons with mental illness.

Provide services to support special needs populations in non-facility based care environments (i.e. Compeer, Buddy System, Coaches).

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As the needs of these groups are vast and numerous, Iowa City has allocated the maximum amount of CDBG fund ing possible to public services to assist human service organizations. To the extent possible, t he City provides support to the system offacil it ies and service providers described in t he homeless inventory above.

The Iowa Cit y Housing Authority locally administers efforts that assist in homelessness prevention, including the Section 8 voucher program and administration of 81 units of publ ic housing for residents who are low income, very low income and extremely low income. The Authority also administers a Tenant-Based Rental Assistance program using HOME funds.

Assistance with rent and utility deposits is available for eligible households through Shelter House, Successful Living, Inc. and the Hawkeye Area Community Action Program (HACAP). In add it ion, some private entit ies provide sma ll amounts of emergency assistance to those in need. However, access to such programs is extremely limited and often for one-time assistance only.

The city's strategy to serve the needs of persons threatened with homeless ness is as follows.

Assist low-income households in maintaining and retaining their existing housing. Establish/Improve emergency rent, mortgage and utility assistance.

Expand in-home support systems such as: living skills training; check in/on service; "buddy system" supports/mentor program. Increase accessibility t o physical/mental health care. Facilitate the development of countywide housing rehab programs.

BARRIERS TO AFFORDABLE HOUSING The following public pol icy barriers were identified in t he city's 2008 Affordable Housing Study:

Zoning There is an absence of deve lopable land zoned for multi-family housing and available for purchase in Iowa Cit y. Undeveloped land that is already zoned for multi-fami ly housing is largely controlled by developers that bring the land to market on a gradual basis. Consequently, if a non-profit developer wishes to build multi-family units, he must apply for a rezon ing and endure the public hearing process, where NIMBYism (Not in My Back Yard) can defeat the project.

Other State and federa l fu nding resources have continuously declined over the past several years with fewer resources made available to finance affordable housing proj ects.

The following recommendat ions were identif ied in the 2008 Affordable Housing St udy:

Change Public Perception There is a perception amongst some that higher density, multi-family housing proposals consist ing of affordable housing opportunities are not appropriate for single family neighborhoods. While th is rationale may be justified in some instances, multi-family housing fronting along major thoroughfares, located at street intersections, and in transition areas between residential and non-residential uses are appropriate . And, contrary to public belief, well-designed and well-managed affordable housing developments do not decrease surrounding property values.

Public Policy Recommendations

Increase the amount of land zoned for multi-family housing. Most, if not al l, of t he land currently zoned for multi-family housing in Iowa City is either developed or not on the market. Affordable housing developers are unable to make projects work f inancially on the few parcels that may be available because (1) the land is too expensive, or (2) it is not zoned to an adequate density. Proactive, selective rezoning of land within Iowa City by elected officials to expand the location of zoning districts that permit mu lt i-

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family housing by right wi ll eliminate the opportunity for NIMBYist s to object to development proposals on a case-by-case basis.

Zone concurrently with all annexation actions. Iowa City should continue to enforce its policy of zoning land upon annexation into the city, and Coralville, North Liberty and Tiffin should be encouraged to do the same. Multi-family housing should be given a high priority during these procedures.

" Adopt a mandatory inclusionary zoning ordinance. The Iowa City area is fortunate to have several highly motivated non-profit and for-profit affordable housing developers. While these organizations are highly capable, they lack the resources required to put a major dent in the region's unmet affordable housing need. Clearly, additional mechanisms are needed to expand the production of affordable housing. One way of expanding production is to capitalize on the region's dynamic real estate market by using market-rate development to create the supply of affordable housing. lnclusionary zoning is a "carrot and stick" approach to expand ing affordable housing.

Identify potential redevelopment areas. Chapter 403 of Title IX of the Code of Iowa allows a city to establish urban renewal areas to assist in the removal and redevelopment of blighted and substandard properties. Cities can also undertake urban renewal activities that promote new economic, commercial, and housing developments. These initiatives typically include the acquisition and demolition of structures, utility and infrastructure installation, new infil l housing, rehabilitation or conservation of properties, and other development assistance utilizing tax increment financing (TIF). Obtaining the designation of a Neighborhood Revitalization Strategy Area (NRSA) from HUD may be appropriate also.

The redevelopment of residential areas near employment centers and public transportation access can help families decrease housing and transportation costs and t heir commuting time to work. Increasing higher density housing in these areas can increase public transit ridership as well.

Preserve existing affordable housing units. Work with local non-profits that own and operate privately subsidized housing that is at risk for conversion to market rate units. The potential for market rate apartments occurs when HUD rental assistance contracts lapse. In a dynamic rental real estate market such as Iowa City, owners of older rental developments may be anxious to reap the rewards of higher rents. In many cases, these older affordable housing units are in need of rehabilitation. Iowa City and other local units of government should establish a preservation dialogue with the owners of these older properties in an effort to rehabilitate the units and maintain affordable rents. In many cases, these projects may require an infusion of housing tax credits and HOME financial assistance.

Preserve existing manufactured home communities. Another affordable housing resource in Iowa City that is worthy of preservation is the existing supply of mobile home parks. As a matter of public policy, Iowa City has historically placed emphasis on the rehabilitation of existing mobile homes. The City requested and received special permission from HUD to rehabilitate mobile home units with CDBG and HOME fu nds. A strategy is needed to protect this public investment in mobile homes and mobile home parks.

Encourage the development of new housing tax credit projects. New production is needed to expand the supply of affordable housing. Local units of government should play a proactive role in identifying sites for new affordable housing, including surplus property that is municipally-owned. Development teams would then be encouraged to prepare and submit proposals. Local government should be prepared to work with the development team to define an appropriate blend of expectations and incentives that will result in a high quality project.

Treat non-profit organizations that specialize in affordable housing as a special class of developer. Non-profit housing developers cannot compete on a level playing field with for-profit developers in the absence of incentives. Non-profits typically do not have ready access to capital and are dependent upon high ly competitive public resources to f inance their affordable housing projects. Incentives provided by a

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municipality can foster a higher level of commitment from and a stronger desire to produce more affordable housing units by local non-profits.

Streamline the permitting process for projects involving affordable housing. Participate in the cost of financing infrastructure improvements for projects involving affordable

housing. Waive local fees for non-profit organizations that develop affordable housing.

FY15 Actions The city is actively involved in presenting to organizations in the region to educate persons about what is affordable housing and who needs it. Presentations will continue during FY15. The city will also support the Local Homeless Coordinating Board's efforts to develop a campaign to educate the community on affordable housing and put a face on who needs affordable housing.

The city will continue to review housing to be constructed with City or CDBG/HOME assistance to ensure it meets the city's Affordable Housing Design Guidelines. Quality design and neighborhood compatibility will assist with neighborhood and community acceptance of affordable housing.

The city will support the rehabilitation of existing rental units in low income neighborhoods and work with private property owners to preserve affordable housing throughout neighborhoods in Iowa City.

The City will also work with the Human Rights Coordinator to provide Fair Housing updates to educate our local commissions and boards. The City hired a consultant to prepare the 2014 Analysis of Impediments to Fair Housing Choice (approved in March 2014). The City will report its progress addressing the identified impediments in the Fy14 CAPER.

OTHER ACTIONS Address obstacles to meeting underserved needs, foster and maintain affordable housing

Evaluate and Reduce Lead Based Paint Hazards Historically, very few children in Iowa City have been found to have elevated blood lead levels. The Iowa Department of Public Health estimates there were 147 children with elevated blood lead levels in Johnson County in 2009. When requested by parents or others, testing can be done by the Johnson County Health Department or private hospitals and clinics. Iowa City's current primary initiative is public education on the potential hazards of lead based paint. The City's rental inspectors distribute pamphlets and brochures concerning lead based paint hazards to landlords when rental inspections are conducted. ICHA will continue to ensure that all its public housing and Housing Choice Voucher rental units are lead safe.

The Housing Rehabilitation Office will continue to implement all aspects of the lead-based paint regulations. In its efforts to evaluate and reduce lead-based paint hazards in all of its CDBG and HOME funded rehabilitation projects, they provide information and outreach on the dangers of lead-based paint, as well as, guidance in the identification and reduction of lead-based paint hazards to all program partic ipants. Blood level tests may be paid through the Housing Rehabilitation program for targeted populations such as children under 7 when needed.

Two rehabilitation staff members are certified lead inspector/risk assessors and conduct visual risk assessments and clearance tests on all appl icable projects. Because the City does not own an XRF device, XRF testing is done by a third party. All rehabilitation staff continued to receive lead education and training that they pass on to all contractors, sub-contractors and others affiliated or working with the rehabilitation program. The staff continued to place an emphasis on training new contractors in lead safe work practices, and forwarded these workers and companies to a third party entity for training. Because of City-sponsored training in the past, the Rehabilitation Program has access to 1oo+ workers representing a multitude of different companies that provide all of the necessary contractor services (i.e. electrical, plumbing, painting, roofing, general contracting, cleaning companies, etc.) which enable all rehabilitation projects to be completed in a safe and responsible manner. In addition, the City now provides forgivable loans for portions of the lead costs on CDBG and HOME funded projects.

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Institutional Structure & Enhanced Coordination Form of Government- The City of Iowa City is organized under the Council-Manager form of government. Iowa City citizens elect seven Iowa City residents to the City Council for overlapping four-year terms. Four of the Council Members, known as the Council Members At-large, are nominated and elected by the eligible electors of the City at large. The other three are known as District Council Members and are nominated by the el igible electors oft heir respective districts and elected by the qualified voters ofthe City at large. The Council, in turn, selects one of its members to serve as mayor for a two-year term. The Mayor presides at the City Council meetings and has one vote on the Counci l -the same as the other six members.

Departments of the City- The City recently reorganized and combined the Planning and Community Development Department and Housing Inspection Services under one new department named Neighborhood and Development Services. Housing and community development programs will be admin istered by Neighborhood Services (formerly known as the Community Development Division) and the Iowa City Housing Authority. Neighborhood Services wi ll coordinate all Consolidated Planning initiatives of the City, including plan preparation with citizen and community partic ipation and directly manage all housing and non-housing activities funded with either CDBG or HOME funds.

The City Council is authorized to administer housing vouchers awarded by the U.S. Department of Housing and Urban Development from the Section 8 Housing Choice Voucher (HCV) Program. The Iowa City Housing Authority provides staff to administer this assistance. In addition to the HCV Program, the Housing Authority also administers a public housing program and homeownership assistance programs.

Citizen participation is integral to the ongoing management and oversight of the housing and community development programs the City provides. The Council appoints a nine member citizen commission to assess Iowa City's community development needs for housing, jobs and services for low-to-moderate income residents and to promote public and private efforts to meet such needs. The Housing and Community Development Commission's by-laws, when possible, require representation from persons with expertise in construction and finance and one member that receives rental assistance.

With respect to the consolidated plan's homeless strategy, the City undertakes extensive consultation as part of its consolidated planning effort; particularly in association with the Johnson County Local Homeless Coordinating Board (LHCB) Continuum of Care's planning process. The LHCB represents over 25 agencies in Iowa City providing services to the homeless and low-income persons in Johnson County. The City works closely with the LHCB to increase coordination between housing providers, health, and service agencies in addressing the needs of persons that are chronically homeless.

Reduce the Number of Poverty-Level families The City, Housing Authority, and the Johnson County Local Homeless Coordinating Board, work together to address homeless and poverty issues. In addit ion to the activities outlined in the Annual Action Plan, the Housing Authority provides supportive services and coordination with the agencies making up the Local Homeless Coordinating Board to support families and individuals achieve their highest level of self-sufficiency.

With respect to economic development, the City has had a long-term partnership with the Iowa City Area Development Group (I CAD) and the Iowa City Area Chamber of Commerce. ICAD is a private non-profit organization whose mission is to position the region as a quality place to work. I CAD works as a confidential advocate for expanding businesses and new industries. I CAD helps businesses pursue state and local financial assistance and serves as a liaison between the City of Iowa City, the Iowa Economic Development Authority, the University of Iowa and other entit ies. The Chamber of Commerce works to enhance the business climate in Johnson County and provides educational programs on customer service, human resources, and other issues relevant to small businesses.

Starting in FYo3, the City of Iowa City set aside CDBG funds to promote economic development. Funds primarily support gap financing or start-up capita l to micro-enterprises or small business creating j obs for low-moderate income persons. These funds are available throughout the year, instead of a once a year funding cycle to allow

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greater flexibility and attract a greater number of applicants. Since the Economic Development Fund started in July 2002, it has been successful in attracting 51. applicants. To date, the City has funded 25 economic development projects for over $946,8os. As of May 201.4, the Economic Development fund has $47,738 available.

In 201.3, the City Council expanded the use of the Economic Development Fund to be used for improvements in the City-University Urban Renewal Area as part of the Building Change program. The program meets the objectives of the Urban Renewal Plan by 1.) eliminating substandard buildings blighting influence and environmental deficiencies; 2) improving the appearance of buildings and encouraging high standards of design; and 3) encouraging the restoration and rehabilitation of structures in downtown Iowa City which are of architectural and/or historic significance. The City received 1.6 applications in FY1.4. Four received CDBG funds to complete renovations.

Minority Outreach Neighborhood Services requires that each CDBG and HOME recipient attend a City sponsored workshop just prior t o the beginning of each year to go over the CDBG and HOME regulations and reporting requirements. At that workshop minority outreach is explained. In addition, staff sits down with the applicant after the agreement has been signed, but prior to the letting of bids or the signing of contracts between the applicant and a contractor, to go over each applicable regulation requirement. Staff provides a list of the minority plan rooms and provides the website to search Iowa targeted small businesses by trade and county.

Other actions planned during the year to address obstacles to meeting underserved needs. The City created a citizen advisory group, the Housing and Community Development Commission (HCDC), in 1.995, to assess Iowa City's community development needs for housing, jobs and services for low and moderate income residents, and to promote public and private efforts to meet such needs. HCDC leads the CDBG/HOME allocation process to determine what projects will be awarded funds based on priorities established in CITY STEPS, Iowa City's Consolidated Plan for Housing, Jobs and Services for Low-Income Residents.

Each year the City and HCDC reviews applications on a competitive basis. The fact that a program or agency was funded in a prior year does not ensure funding in subsequent years. The lack of adequate financial resources, in relation to need, is the greatest obstacle facing the community. Housing and non-housing needs and services simply exceed available resources. If additional funding were available, existing services could be expanded to better address the needs of the community.

Due to limited funding and the prospect of reduced funding in subsequent years, the following considerations wi ll be made when determining to fund a project:

1.) The project must be an identified CITY STEPS priority. Applicant must document the ability of the project to address the specific need.

2) The project budget is j ustified and leverages other financial resources, including human resources. Applicant must document efforts to obtain outside funding as well.

3) The project has a measurable impact in the community. The project primarily targets low-income persons, utilizes community partnerships, and provides adequate benefits in relation to costs.

4) The applicant can maintain regulatory compliance. Applicant must demonstrate it has strong financial skills, administrative capacity to complete a federal grant, and the abil ity to complete the project within the required time period.

Iowa City has a long history of successfully implementing HUD funded programs. Serving the needs of the city's various special needs population drives the city's consolidated planning efforts. Addressing the needs of the homeless and special needs populations are high priorities for use of resources within Iowa City.

Fragmentation and duplication of services in Iowa City is a minor obstacle due to the communication and coordination of existing service providers. Service providers are members of the Johnson County Local Homeless Coordinating Board and participate in the local Continuum of Care planning.

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HOME PROGRAM SPECIFIC REQUIREMENTS Iowa City has elected to adopt the following recapture or resale provisions when HOME funds are used to create affordable housing. Recapture guidelines are used for any homebuyer activity where the client receives direct financial assistance (includ ing any assistance that reduces the purchase price from the fair market value to an affordable price) and resale is used when the homeowner does not receive direct financial assistance.

Recapture Provision A recapture provision of the HOME regulations pursuant to CFR Part 24 92.254 (a)(5)(ii) will be used when HOME f unded assistance is provided to reduce the selling price of a home from appraised va lue to one of affordability (affordability subsidy) for people at income levels of 8o% or less of Iowa City's median income. This will include an affordability period based on the amount of HOME funds used for that purpose as indicated in the following table. If down payment assistance wi ll be provided, that amount will be added to the total amount to determine the affordability period.

< $15,000 $15,000-$40,000 > $40,000

5 years 10 years 15 years

Upon the sale ofthe home, the net proceeds (sale price, minus superior loan repayment and closing costs) shall be distributed proportionately between the City, up to the Principal Amount, and the Buyer (Shared Net Proceeds). The City and/or HUD are not responsible for covering negative net proceeds. The Principal Amount shall be forgiven after the affordability period identified in the Recapture Agreement

Documents

Iowa City Neighborhood Development Services FY15