IURA Neighborhood Investment Committee

Ithaca Urban Renewal Agency 108 East Green Street Ithaca, New York 14850 (607) 274-655 Minutes IURA Neighborhood Investment Committee March 14, 2014 I. Call to Order The meeting was called to order at 8:35 AM with members Fernando de Aragón; Tracy Farrell, Chair; Karl Graham and Teresa Halpert present. Staff members present were Nels Bohn and JoAnn Cornish. II. Public comment None. III. Review of Minutes – February 14, 2014 Minutes were unavailable for review. IV. New Business 1. 2014 Re‐Certification of Greater Ithaca Activities Center, Inc. (GIAC) as a Community Based Development Organization (CBDO) Members reviewed GIAC’s CBDO application and staff’s comparison with the CBDO requirements contained at 570.204(c)(1). Staff noted that Board membership had increased from last year and that GIAC identified 8 of the 15 member as satisfying CBDO requirements and that additional information has been requested to verify qualifications of several members. Committee members reviewed the Board composition table and agreed that the Board appeared to satisfy CBDO Board membership requirements, subject to receipt of additional information to verify qualifications. Halpert moved, seconded by Graham: 2014 IURA Designation of the GIAC, Inc. as a Community‐Based Development Organization WHEREAS, the Greater Ithaca Activities Center, Inc. (GIAC) seeks designation by the Ithaca Urban Renewal Agency (IURA) as a Community‐Based Development Organization (CBDO), and WHEREAS, the City of Ithaca has designated the IURA to administer the City’s HUD Entitlement Program that oversees Community Development Block Grant funds awarded to the City, and IURA NIC minutes, 3/14/14 Page 1 of 5 WHEREAS, an eligible category of CDBG activities are “Special Activities by CBDOs”, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities under certain circumstances, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow revenue generated by a CDBG‐funded activity to not be considered CDBG program income, and WHEREAS, the following four tests established at CFR Title 24 §570.204 must be met to qualify under a category of “Special Activities by CBDOs”: 1. The entity qualifies as a CBDO, including the 51% board membership test; 2. The CBDO will undertake an eligible project; 3. That the CBDO will carry out the funded activity directly or with an entity other than the grantee; 4. That the CBDO will not carry out a prohibited activity, and WHEREAS, a CBDO must maintain at least 51% of its governing body’s membership to be made up of any combination of the following: • Low‐ and moderate income residents of its area of operation • Owners or senior officers of private establishments and other institutions located in its area of operation • Representatives of low‐ and moderate‐income neighborhood organizations located in its area of operation, and WHEREAS, a CBDO must have as its primary purpose the improvement of the physical, economic, or social environment of its geographic area of operation, with a particular emphasis on the needs of low‐ and moderate‐income persons, and WHEREAS, the project undertaken by the CBDO must qualify as one or more of the following project types: • neighborhood revitalization; • community economic development; • energy conservation project; and Whereas, at their March 14, 2014 meeting, the Neighborhood Investment Committee compared GIAC’s application against CBDO eligibility requirements and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that the Greater Ithaca Activities Center, Inc. meets the requirements for eligibility as a CBDO subject to receipt of information to verify Board composition qualifications, and be it further RESOLVED, that the GIAC‐proposed Hospitality Employment Training Program and the Gateway Local Diverse Suppliers activities qualify as an eligible CBDO community economic IURA NIC minutes, 3/14/14 Page 2 of 5 development project(s), and are therefore exempt from the 15% CDBG expenditure cap on Public Services, and be it further RESOLVED, that the IURA hereby renews its designation of Greater Ithaca Area Activities Center, Inc. as a Community‐Based Development Organization (CBDO) and finds their Hospitality Employment Training Program and the Gateway Local Diverse Suppliers activities as eligible for 2014 CDBG funding under the category of “Special Activities by CBDOs”. Carried Unanimously 2. Amend Funding Contract with the Learning Web for the Housing Scholarship Program to Authorize use of Funds for Security Deposits (project #4 2013 HOME) D’Aragon moved, seconded by Halpert: 2013 HUD Entitlement Program Amendment #1 to Funding Contract for Housing Scholarship Program (2013 project #4) Whereas, on March 11, 2014, The Learning Web requested a modification to their funding agreement for the Housing Scholarship program to authorize use of funds for security deposits, and Whereas, on October 23, 2013 the IURA executed a $78,000 funding agreement with Learning Web, Inc. for the Housing Scholarship program, and Whereas, per the funding agreement HOME funds are being used to assist at least 6 low‐ and moderate‐income households in accessing affordable rental housing by paying solely for rent and utilities for a period not to exceed 18 months while the household works toward achieving independence, and Whereas, use of HOME funds under the agreement is limited to tenant based rental assistance for rent and utility payments only, and Whereas, in the past, tenants in the program have secured security deposit assistance through the IURA‐funded Catholic Charities’ Security Deposit Assistance Program, and Whereas, The Learning Web’s landlord won’t accept a security deposit through Catholic Charities and, Whereas, Catholic Charities projects it will exhaust its 2013 allocation of security deposits in the next 30 days, and IURA NIC minutes, 3/14/14 Page 3 of 5 Whereas, The Learning Web projects they will still meet their program objectives if funds are authorized for security deposits, and Whereas, there is no change to the scope, beneficiaries or authorized location of the project, therefore no public hearing or Action Plan program amendment is required, and Whereas, the Neighborhood Investment Committee reviewed this proposal at their meeting on March 14, 2014 and recommended the following; now, therefore be it Resolved, that the funding agreement with The Learning Web, Inc. for the 2013 Housing Scholarship program (2013 project #4) be amended to permit use of HOME funds to pay security deposits in addition to rent and utilities, and be it further, Resolved, that the IURA Chairperson, upon advice of IURA legal counsel, is hereby authorized to execute any necessary and appropriate documents to implement this resolution. Carried Unanimously V. Old/Other Business 1. Development of 2014 Action Plan, Review of Funding Applications – Recommendation to IURA A. HOME‐Eligible Projects Members reviewed and discussed housing applications. The following projects were recommended for funding, pending additional information received at the upcoming public hearing: • Community Housing Trust New Construction • Homeowner Rehabilitation 2014 • Mini‐Repair Program 2014 • Security Deposit Assistance Program • Housing Scholarship Program • Housing First Members noted the following: • The homeowner rehabilitation project was scalable by increments of $25,000. • Only $50,000 of the $80,000 funding request for Housing First is eligible from HOME funds. The support services component is only eligible as a Public Service CDBG activity. Partial funding was suggested unless funding for support services is secured. • Delivery expenses for the Security Deposit Assistance program are only eligible as a Public Service CDBG activity. Graham excused himself from the meeting citing a conflict of interest to discuss any CDBG funding applications as his employer, AFCU, is sponsoring the Business CENTS CDBG application. IURA NIC minutes, 3/14/14 Page 4 of 5  B. CDBG‐Eligible Projects Members reviewed Public Service activities and recommended the following projects for funding, pending additional information received at the upcoming public hearing: • 2‐1‐1/I&R Service • Learning By Doing Supported Employment • Immigrant Services • ReSet Job Training Expansion • Housing Stability Support Members recognized that the CDBG expenditure cap on Public Service activities would not allow full funding of all of the Public Service activities recommended for funding. Members also sought more information on performance of the Learning By Doing Supported Employment program that began operations in January. Members reviewed projects in the Economic Development category. Staff noted that the Economic Development Committee will review projects in this category, but it is appropriate for the NIC to also review job training applications and projects that impacts neighborhoods and infrastructure. The NIC recommended funding for the following projects, pending additional information received at the upcoming public hearing: • Hospitality Employment Training Program • Work Preserve Job Training Program The Lake Street Bridge Public Plaza Enhancement project under the Public Facilities category was discussed as desirable, but members suggested seeking funds from alternative funding sources such as Tompkins County Strategic Tourism Grant program. VI. Motion to Adjourn The meeting was adjourned by consensus at 10:30 AM. ― END ― Minutes prepared by N. 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