IURA Neighborhood Investment Committee

Ithaca Urban Renewal Agency 108 East Green Street Ithaca, New York 14850 (607) 274-655 AGENDA IURA Neighborhood Investment Committee 8:30 AM, July 11, 2014 rd 3 Floor Conference Room, City Hall I. Call to Order II. Public comment III. Review of Minutes – May 9, 2014 IV. New Business 1. Amend funding contract with INHS for the Stone Quarry Apartments project to authorize requested modifications (project #1 2013 HOME) – resolution 2. Update on the Supported Employment Program from the Learning Web (project #22 CDBG 2013) 3. Proposed programmatic changes to NHI Bond Fund – resolution 4. 2014‐2018 Consolidated Plan – resolution to adopt. Executive Summary is included in this packet, full plan may be accessed at: www.ithacaura.org V. Old/Other Business VI. Motion to Adjourn If you have a disability and require accommodations in order to fully participate, please contact the IURA at 274‐6559 at least 48 hours prior to the meeting.  Ithaca Urban Renewal Agency 108 East Green Street Ithaca, New York 14850 (607) 274-655 Draft Minutes IURA Neighborhood Investment Committee May 9, 2014 I. Call to Order The meeting was called to order at 8:34 with members Tracy Farrell, Chair, Teresa Halpert, and Karl Graham present. Staff members Nels Bohn and Lynn Truame were present. Committee member Fernando de Aragon arrived at 9:15. II. Public comment None. III. Review of Minutes – February 14, 2014; March 14, 2014 T. Halpert moved, seconded by K. Graham, approval of February 14 and March 14, 2014 minutes. Carried unanimously. IV. New Business 1. Request for approval of lease agreement between CHI and Rescue Mission for 618 West State Street (project #7 2006 CDBG) Chuck Guttman, representing CHI, Inc., reviewed the reasons for requesting the change in tenants. N. Bohn confirmed that the Rescue Mission (RM) is providing the level of service and staffing required by the Loan Agreement. He noted that the current configuration of the facility is 15 SRO units and 9 shelter beds, however there has been a large increase in the use of shelter beds (between 20‐30 beds each night) since RM began operations at the facility. This increase appears to be attributable to RM accepting people prior to their being participants in the DSS system, whereas the American Red Cross (ARC) required completion of DSS paperwork prior to shelter admission. N. Bohn reported that RM believes they will need a larger, or additional, facility in future to meet this observed need for both shelter beds and SRO units. K. Graham moved, seconded by T. Halpert: 618 W. Court Street – Approval of Lease Agreement between CHI, Inc. and The Rescue Mission Whereas, Community Housing of Ithaca, Inc., (the Borrower) received $350,000 in Community Development Block Grant funds through the 2006 HUD Entitlement Program for the rehabilitation of IURA NIC Minutes, 5/9/14 Page 1 of 5 the property at 618 West State Street to create a 16‐bed emergency homeless shelter, 6‐bed Single Room Occupancy facility, and day‐services center for the homeless, and Whereas, operational requirements of the deferred CDBG loan requires staffing of a on‐site facility manager who shall provide overnight, on‐site, facility management from mid‐afternoon to sunrise seven days a week, 365 days a year; and Whereas, in 2011 the IURA approved a modification to the use of the building to a 9‐bed emergency homeless shelter and a 15‐bed Single Room Occupancy facility, and Whereas, the award of funds was conditioned upon the execution of a lease agreement between the Borrower and the American Red Cross (ARC) for the operation of the project property in the manner described above, and Whereas, the term of the Loan Agreement between the IURA (the Lender) and the Borrower has not yet expired, and Whereas, if, during the term of the loan, the lease between the Borrower and the ARC should be terminated or should expired and not be renewed, the Borrower is required to immediately repay the higher of the entire outstanding principal balance of the Note, and any accrued interest, OR, the current market value of the project property less any portion of the value attributable to the expenditure of non‐CDBG funds for the acquisition of pr improvement to the project property, and Whereas, at the Lender’s sole discretion, the Lender may modify the above requirement if the Borrower has secured the Lender’s approval of a Lease Agreement with another organization delivering the same services as described in the Loan Agreement, in a manner to cause no interruption of services, and Whereas, the Borrower has requested the Lender’s approval of a Lease Agreement with The Rescue Mission of Syracuse, Inc., to operate the project property as described in the loan agreement, and Whereas, the primary objective of the Ithaca Urban Renewal Agency for this project is to provide emergency shelter, SRO housing, and day‐service facilities for the homeless, and Whereas, the Neighborhood Investment Committee reviewed this request at their meeting on May 9, 2014, and recommended the following, now, therefore be it Resolved, that the Ithaca Urban Renewal Agency hereby approves the transfer of the Lease Agreement for 618 West State Street from the American Red Cross to The Rescue Mission of Syracuse, subject to receipt of delinquent annual 2013 reporting by June 9, 2014, and be it further Resolved, that the IURA Chairperson is hereby authorized, subject to advice of IURA legal counsel, to execute any and all necessary documents to implement this resolution. Carried unanimously. IURA NIC Minutes, 5/9/14 Page 2 of 5 2. Proposal to conduct Fair Housing Choice Analysis of Impediments survey – Tompkins County Office of Human Rights Karen Baer and James Douglas, Tompkins County Office of Human Rights (OHR), attended. N. Bohn explained the IURA obligation to update Ithaca’s existing Analysis of Impediments (AI) and outlined the reasons for contracting with OHR for this work. Ithaca’s last AI concluded there was not enough data available to establish or address barriers to Fair Housing Choice. This last report met minimum HUD requirements, but we have been strongly encouraged to assemble the data required to produce a more effective AI and Action Plan (AP). The timeline included in the OHR proposal for delivery of the report is acceptable to HUD as long as the effort is progressing. The committee raised, and OHR responded to, various questions about the format of, and process for, both the survey and testing portions of the AI. K. Graham asked what data was currently available on housing discrimination locally. K. Baer responded that her office does not receive nearly as many housing‐related as employment‐related complaints and she believes that may be because of a lack of knowledge regarding housing discrimination on the part of both renters and landlords. All agreed on the need for additional outreach and education. K. Baer stated that her hope is that the City and County will work collaboratively on fair housing issues going forward, both to be more effective and to attract more federal financial resources. The data acquired via this AI will be the first step in that process. T. Farrell requested a copy of the current draft of the random survey. Staff will forward this document to the committee. K. Graham asked how often an AI needs to be updated and whether this would be an ongoing cost to the agency. N. Bohn replied, every 5 years, though the Action Plan, which flows from the AI, is a living document that would be revisited more frequently. N. Bohn agreed that this would be a periodic cost and that fair housing‐related efforts must typically be funded through CDBG/HOME administrative funds. The cost in this current year, however, should be unique as it will establish the baseline AI that Ithaca currently lacks. K. Graham moved, seconded by T. Halpert: Contract for Completion of Fair Housing Choice Analysis of Impediments Survey Whereas, the City of Ithaca is subject to the requirements of the US Department of Housing and Urban Development (HUD) Entitlement Program, and Whereas, one such requirement is certification that the City is Affirmatively Furthering Fair Housing (AFFH), and Whereas, the development of an Analysis of Impediments to Fair Housing (AI) and corresponding Action Plan are required for this certification, and IURA NIC Minutes, 5/9/14 Page 3 of 5 Whereas, the Tompkins County Office of Human Rights (OHR) has submitted a Fair Housing Choice Proposal to the Ithaca Urban Renewal Agency (IURA) to complete, on a contract basis, the required AI, in a form acceptable to HUD, including the following: 1) Fair Housing Choice Survey, 2) Fair Housing Testing Program, 3) data collection and analysis, and 4) a final Analysis of Impediments to Fair Housing Choice, and Whereas, OHR will gather information both within the City of Ithaca and in the surrounding area of Tompkins County, with a 60/40 emphasis on the City, an approach which has been approved by HUD, and Whereas, as a result of this approach the County will share in the cost of preparing the AI, and Whereas, the completion of an AI on a contract basis is an eligible activity for the use of CDBG/HOME Administration Funds, and Whereas, the 2014 IURA Recommended Action Plan includes $135,108 in CDBG Administration funds and $44,177 in HOME Administration funds, and Whereas, the cost of the Fair Housing Choice Proposal, as submitted, will be divided between the City of Ithaca and Tompkins County, with the City’s share of that cost being $17,670, and Whereas, the Neighborhood Investment Committee reviewed the Fair Housing Choice Proposal submitted by OHR at their meeting on May 9, 2014, and recommended the following, now, therefore be it Resolved, that the Ithaca Urban Renewal Agency hereby approves the acceptance of the Fair Housing Choice Proposal submitted by OHR to conduct the required survey and analysis and prepare the final AI report in substantially the form described at a cost of $17,760, and be it further Resolved, that the IURA Chairperson is hereby authorized, subject to advice of IURA legal counsel, to execute any and all necessary documents to implement this resolution. Carried unanimously. V. Old/Other Business 1. 2014 Recommended Action Plan The committee reviewed the final action plan. T. Farrell suggested alerting funding recipients to the anticipated decrease in available resources next year. N. Bohn observed that the President’s proposed budget includes a 5% cut for both HOME and CDBG next year and that the cut will probably be larger than that once Congress finally acts. It was agreed that funding recipients would be notified of this situation in their commitment letters, so that organizations we have historically funded on an on‐going basis are aware of the needs to identify other sources of support. 2. Review of summary Breckinridge tenant profiles. Staff reported on an e‐mail received from Paul Mazarella describing the make‐up of the first group of Breckenridge Place tenants: IURA NIC Minutes, 5/9/14 Page 4 of 5 Race: 40‐50 yrs old: 5 American Indian: 2 50‐60 yrs old: 15 Asian: 1 60+: 15 Black or African Amer.: 17 Female Head of Household w/children: 8 Other: 4 Male Head of Household w/children: 4 White: 26 Prior Residency: Ethnicity: City of Ithaca: 41 Hispanic or Latino: 3 Tompkins County: 5 New York City: 0 Age: New York State: 3 20‐30 yrs old: 7 Outside of NYS: 1 30‐40 yrs old: 8 3. Stone Quarry Road project update N. Bohn provided an update on the Stone Quarry Road project. INHS is hoping to break‐ground in September 2014, and place in service in July 2015. The Elmira Road complete street project is bidding now; the City will also be looking at other road improvements in the area, including reconfiguration of the Old Elmira Rd/Spencer Rd intersection and the Stone Quarry Rd/Spencer Rd intersection. F. de Aragon commented on the project’s ideal location for biking and his desire that INHS be encouraged to include project components that facilitate bicycle usage. 4. Old Library Site project update K. Graham inquired about the City’s roll in reviewing plans for Old Library site. N. Bohn replied that City will have some input, but will not be a decision, though the actual development will be reviewed by the City as usual (Planning Board and ILPC.) The County is in the process of identifying preferred proposals but no decisions have yet been made. There was a general discussion of the various proposals received. 5. Neighborhood Pride site update T. Farrell asked for an update on the status of the Neighborhood Pride property. N. Bohn reported that the Salvation Army, Cornell Cooperative Extension, ScienceCenter, and INHS have all expressed interest in property, though none will pay the full price that the seller is asking. INHS and CCE are probably the two finalists. CCE would relocate entire operations there and sell current offices. INHS would be looking at housing, perhaps partnering with another civic use such as the ScienceCenter. Due to pressure from the lien holder, there should be some resolution within the next two weeks. VI. Motion to Adjourn The meeting was adjourned by consensus at 10:37. END Minutes prepared by L. Truame IURA NIC Minutes, 5/9/14 Page 5 of 5 Proposed Resolution IURA Neighborhood Investment Committee July 11, 2014 Loan Assistance to INHS for the Stone Quarry Apartments Project WHEREAS, on August 15, 2012, Ithaca Neighborhood Housing Services, Inc. (INHS) requested IURA financial assistance for the Stone Quarry Apartments project (Project), located at 400 Spencer Rd., Ithaca, NY, and WHEREAS, the IURA approved the requested financial assistance on October 25, 2012, and WHEREAS, since the time of that approval, certain changes to the project have occurred, resulting in a request from INHS to modify certain provisions of the previous approval, namely: • a change in the special needs set‐aside population from homeless veterans to persons with a mental disability, and • a change from June 1, 2013, to June 1, 2014, as the deadline for providing proof that the New York State Unified Funding application for the project had been substantially approved, and • a change from September 1, 2013, to September 1, 2014, as the deadline for INHS to certify that sufficient funding has been secured to complete the project, and • an increase in the total budget from $9.1 million to $10,017,541, and changes to specific funding sources and amounts as follows: $1,279,112 conventional loan $5,875,980 low‐income housing credit equity $2,092,449 state low‐income housing credit equity $100,000 PathStone sponsor loan $100,000 NeighborWorks loan $200,000 City/Cornell/County “housing fund” $370,000 City of Ithaca HOME $ 10,017,541 Total and, • conversion of the IURA loan from amortizing with level monthly payments, to cash flow contingent with a balloon payment at the end of the loan term, and WHEREAS, in all other respects the project remains unchanged since the IURA approved the requested financial assistance on October 25, 2012, and WHEREAS, the requested modifications were discussed at the July meeting of the IURA Neighborhood Investment Committee, which recommends the following action; now, therefore, be it RESOLVED, the IURA hereby approves a loan to INHS subject to the following terms and conditions: Loan Amount: Up to $370,000.00 Borrower: INHS, or a subsidiary entity controlled by INHS pursuant 1  to HOME regulations at 24 §92.300(a)(1) Use of Funds: Development of the Stone Quarry Apartment project, a 35‐unit affordable rental housing project at 400 Spencer Rd., Ithaca, NY. HOME funds will be earmarked to assist at least six (6) housing units. Loan Type: Construction loan that converts to permanent loan. Source of Funds: HOME funds Interest Rate: Construction ‐ 3% Permanent – 2% Term: Construction – up to 18 months Permanent – up to 30 years Amortization: Construction – no Permanent – yes Repayment: Construction – interest only payments due monthly with repayment of the full principal balance due and payable at the end of the loan term. Permanent – cash flow contingent monthly payments with the full outstanding principal balance, together with any unpaid accrued interest, due and payable at the end of the loan term. Prepayment: Borrower may repay the loan at any time during the term without penalty. Collateral: Construction – subordinate mortgage lien on the project property behind only mortgage liens securing project loans of greater than $370,000. Permanent – subordinate mortgage lien on the project property behind only mortgage liens securing other project loans of greater than $370,000. Match: At least $8,000,000 Conditions: 1. Receipt by June 1, 2014 of proof that the New York State Unified Funding application for the project has been substantially approved. 2. Receipt of certification of INHS by September 1, 2014 that sufficient funding has been secured to complete the project. 3. INHS designation as a Community Housing Development Organization at the time of loan closing. Completion of environmental review and site plan approval for the project. 2  4. Project will remain taxable for property taxation. Reporting: 1. Annual submission of audited financial statements for the project and the borrower, including balance sheet and profit/loss statement. 2. Annual reporting on HOME‐assisted units to comply with HOME regulations. 3. Submission of documentation of match funding. 4. Submission of evidence of compliance with Section 3 requirements. 5. Submission of monthly progress updates, including updated schedule, during construction. RESOLVED, that the IURA Chair is authorized to modify the interest rate, amortization, and repayment terms of this loan to satisfy the project’s tax credit syndicator or investors, provided the loan remains repayable, and be it further RESOLVED, that the IURA Director of Community Development is authorized to issue a loan commitment in accordance with the terms of this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution, including, but not limited to, executing loan agreement documents. 3  June 20, 2014 Summary of 2014 Programmatic Changes to the Neighborhood Housing Initiative Program The Neighborhood Housing Initiative was created to convert substandard, rental, residential properties negatively affecting their surrounding neighborhood into quality, owner‐occupied housing that would benefit the nearby neighborhood, increase homeownership and expand the tax base of the City. To implement the program, the Ithaca Urban Renewal Agency (IURA) used bond proceeds to acquire eligible properties; renovated them, or demolished and constructed new homes; and sold them for the highest marketable price to homebuyers with a deed restriction requiring the property to remain owner‐occupied for at least 25 years. $1,050,000 in bonds were issued to capitalize the program. As of 2014, approximately $590,000 is available to implement the program going forward. The IURA proposes the following programmatic changes: 1. Supplement the Program to Provide for a Pilot Competitive Grant Program ‐ Convert the program delivery modelto a competitive grant program to assist not‐for‐profit housing developers carry out homeownership projects for a fixed subsidy amount rather than have IURA undertake site selection, acquisition, rehabilitation/construction and resale. Payments of grants will be made upon project completion. Rationale for change: This change will enhance cost‐effectiveness of the program by transferring the risk of cost overruns from the IURA to the developer. When the IURA acted as owner and developer, the final subsidy amount necessary to complete several projects was significantly higher than the initial projection due to factors unforeseen at the time of property acquisition. As proposed, the final public subsidy amount per project will now be established at the time of grant award. 2. Expand Categories of Eligible Project Sites – Expand the categories of properties eligible for assistance under the program from solely substandard, rental residential properties to include, substandard vacant structures, properties acquired through property tax delinquency, primary structure cited as unsafe for occupancy, and vacant parcels. Rationale for change: This change will enhance effectiveness of program to better accomplish the objective to address properties negatively affecting neighborhoods, regardless of their prior tenure status. Expanding the range of properties eligible may also reduce the public subsidy by making vacant properties, where demolition and clearance may have already occurred, eligible for the program. 3. Affordability Requirement – Impose a new requirement that each new owner‐occupied residential unit assisted must be sold to homeowners earning 80% or less of the Area Median Income (AMI), and further require any resale of the home to low/mod income homebuyers during the 25‐regulatory period. Rationale for change: This change will accomplish a new goal of the program to expand affordable homeownership opportunities. The median existing home sales price in the City has increased to over $185,000, well above the amount most low‐ and moderate‐ income residents can afford, leading to less income diversity in City neighborhoods. Previously, the program was designed to sell the completed project for the highest marketable price to minimize the public subsidy required. In tandem with the other programmatic changes, and other affordable housing grant programs, creation of affordable homeownership units through the program is projected to only require a modest increase in the amount of public bond subsidy per unit. Page 2 of 5  June 20, 2014 Revised Program Design for the Neighborhood Housing Initiative Incorporating 2014 Programmatic Changes Summary The Neighborhood Housing Initiative (NHI) is a program of the Ithaca Urban Renewal Agency (IURA) to competitively award grants to not‐for‐profit housing developers undertaking projects to create quality, affordable, owner‐occupied, housing to be occupied by households earning no more than 80% of the Area Median Income (AMI) on sites within the Urban Renewal Project Area that negatively affect neighborhood stability. This program is intended to arrest and prevent conditions of deterioration and blight and expand affordable homeownership opportunities. Goal The goal of the NHI program is to increase neighborhood stability and expand affordable homeownership opportunities for low‐ and moderate‐income households. Objectives 1. Eliminate blighting conditions. 2. Expand the supply of affordable, owner‐occupied homes. 3. Physically upgrade substandard structures and new construct housing on vacant lots. 4. Convert rental properties to owner‐occupancy status. 5. Stimulate private sector investment in neighborhoods. Program Guidelines Neighborhood Housing Initiative Bond City of Ithaca Program Guidelines Eligible Activities Production of new affordable homeownership housing units in City of Ithaca neighborhoods through rehabilitation or new construction Eligible Locations Properties located within the Ithaca Urban Renewal Project Boundary Map area (see attached map) Eligible Properties • Substandard rental housing Types • Vacant structure • Vacant lot • Site containing a primary structure cited as unsafe for occupancy Site acquired via property tax foreclosure Page 3 of 5  Neighborhood Housing Initiative Bond City of Ithaca Program Guidelines (continued) Eligible Applicants 501(c)(3) not‐for‐profit organization incorporated in the State of New York Form of Assistance Grant Use of Funds Development subsidy Timing of Funds shall be disbursed upon project completion Disbursement Maximum Amount The maximum amount of assistance shall be limited to the minimum of Assistance amount necessary to close the financial gap between the cost to produce the new homeownership unit and the sales price to a low‐ and moderate‐income homeowner. Unless otherwise approved by the IURA, the target homebuyer household is assumed to earn between 70%‐80% of the Area Median Income (AMI) as determined annually by the U.S. Department of Housing & Urban Development, adjusted for household size. Eligible Homebuyers Homebuyer must earn household income at or below 80% of the AMI for the City of Ithaca Maximum Sales The sales price of the new homeownership unit must be affordable to Price an Eligible Homebuyer paying no more than 37% of their income toward housing debt (principal, interest, taxes and insurance). Project budgets should assume a homebuyer household will earn 70% of AMI unless specific homebuyers have been pre‐qualified. Owner‐Occupancy A 25‐year owner‐occupancy restrictive covenant shall be filed with the Requirement deed requiring the home to be occupied by at least one of the owners. Long‐Term An effective and enforceable mechanism acceptable to the IURA will be Affordability required to ensure assisted housing units remain affordable and occupied by low‐ and moderate‐income households for a minimum of 25 years. Application Process Open, competitive selection process as part of the annual IURA Call For Proposals for funding applications for the HUD Entitlement Grant program. The IURA may also issue additional Calls For Proposals at its discretion. Page 4 of 5  Neighborhood Housing Initiative Bond City of Ithaca Program Guidelines (continued) Selection Criteria Applications will be reviewed against the following criteria: • Need ‐ The extent of need and seriousness of the problem that the project will address. • Impact – The extent to which outcomes achieved will effectively address the need and accomplish program objectives. The effect on neighborhood stability and cost‐effectiveness of the project will be considered. • Feasibility ‐ Extent to which the project is designed to identify & manage obstacles to achieve projected outcome on a timely basis, including reasonableness of sources and uses of project funds and commitments of other funding sources. • Capacity ‐ Demonstrated ability of applicant to successfully implement the project, including administrative, technical and fiscal capacity, including past performance completing similar affordable housing projects. • Leverage – Amount and percentage of funds requested in comparison to funding from other sources. • Coordination‐ The extent to which a project implements plans or initiatives of the City and/or coordinates with other neighborhood investments. END Attachment – Urban Renewal Boundary Map j:\community development\housing initiative\2014 programmatic changes\2014 programmatic changes to nhi.doc Page 5 of 5 Proposed Resolution IURA Neighborhood Investment Committee July 11, 2014 Programmatic Changes to the Neighborhood Housing Initiative Bond Program WHEREAS, The Neighborhood Housing Initiative was created to convert substandard, rental, residential properties negatively affecting their surrounding neighborhood into quality, owner‐occupied housing that would benefit the nearby neighborhood, increase homeownership and expand the tax base of the City, and WHEREAS, to implement the program, the Ithaca Urban Renewal Agency (IURA) used bond proceeds to acquire eligible properties; renovated them, or demolished and constructed new homes; and sold them for the highest marketable price to homebuyers with a deed restriction requiring the property to remain owner‐occupied for at least 25 years, and WHEREAS, IURA bonds financing the Neighborhood Housing Initiative are guaranteed by the City of Ithaca, and WHEREAS, $1,050,000 in bonds were issued to capitalize the program, of which, as of 2014, approximately $590,000 remains available to implement the program going forward, and WHEREAS, certain changes to the structure of the program are now proposed to facilitate effective expenditure of the remaining funds, and WHEREAS, the changes have been reviewed and approved by bond counsel Orrick, Herrington & Sutcliffe LLP, and WHEREAS, the proposed programmatic changes were discussed at the July meeting of the IURA Neighborhood Investment Committee, which recommends the following action; now, therefore, be it RESOLVED, the IURA hereby approves the following programmatic changes to the Neighborhood Housing Investment program: 1. Supplement the Program to Provide for a Pilot Competitive Grant Program ‐ Convert the program delivery model to a competitive grant program to assist not‐for‐profit housing developers carry out homeownership projects for a fixed subsidy amount rather than have IURA undertake site selection, acquisition, rehabilitation/construction and resale. Payments of grants will be made upon project completion. Rationale for change: This change will enhance cost‐effectiveness of the program by transferring the risk of cost overruns from the IURA to the developer. When the IURA acted as owner and developer, the final subsidy amount necessary to complete several projects was significantly higher than the initial projection due to factors unforeseen at the time of property acquisition. As proposed, the final public subsidy amount per project will now be established at the time of grant award. 2. Expand Categories of Eligible Project Sites – Expand the categories of properties eligible for assistance under the program from solely substandard, rental residential properties to include, substandard vacant 1 structures, properties acquired through property tax delinquency, primary structure cited as unsafe for occupancy, and vacant parcels. Rationale for change: This change will enhance effectiveness of program to better accomplish the objective to address properties negatively affecting neighborhoods, regardless of their prior tenure status. Expanding the range of properties eligible may also reduce the public subsidy by making vacant properties, where demolition and clearance may have already occurred, eligible for the program. 3. Affordability Requirement – Impose a new requirement that each new owner‐occupied residential unit assisted must be sold to homeowners earning 80% or less of the Area Median Income (AMI), and further require any resale of the home to low/mod income homebuyers during the 25‐regulatory period. Rationale for change: This change will accomplish a new goal of the program to expand affordable homeownership opportunities. The median existing home sales price in the City has increased to over $185,000, well above the amount most low‐ and moderate income residents can afford, leading to less income diversity in City neighborhoods. Previously, the program was designed to sell the completed project for the highest marketable price to minimize the public subsidy required. In tandem with the other programmatic changes, and other affordable housing grant programs, creation of affordable homeownership units through the program is projected to only require a modest increase in the amount of public bond subsidy per unit. RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney and Bond Counsel, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. 2  Executive Summary ES‐05 Executive Summary ‐ 24 CFR 91.200(c), 91.220(b) 1. Introduction This document represents the third generation of Consolidated Plans for the City of Ithaca. The second five‐year Consolidated Plan, which describes program goals for federal Community Development Block Grant (CDBG) and HOME investment Partnership Programs (HOME) funds, expires this year and now is a time of looking back, evaluating changing community needs, reviewing past successes and identifying new opportunities. This document is prepared as an update to the 2009‐2013 Consolidated Plan. Our aim is to review existing conditions in the areas of housing, economic development, public facilities and public services, to consider trends and factors impacting these areas of community development, to assess the impact of past CDBG and HOME activities funded through the HUD entitlement program, and to identify new programmatic goals. CDBG funds and, more recently, HOME funds, have been awarded to the City for many years. From 1975 until 2004 the City of Ithaca received Community Development Block Grant (CDBG) funds from the United States Department of Housing and Urban Development (HUD) through an annual competitive process. The City was highly successful in these competitive grant rounds, securing over $22.6 million. Awarded funds have been used to support a variety of programs benefiting low‐ and moderate‐income (LMI) persons, and have ranged from housing programs to job creation. The investment of the CDBG funds has multiplied many times in the community as programs expand and loan funds are repaid and reinvested. An administrative rule change qualified the City for a new level of HUD programming. Designation as an ‘Entitlement Community’ allowed the City to become eligible for annual funding through a formula grant for the first time in the fall of 2003. Since then, the City has received an annual grant from HUD through the Community Development Block Grant Program and the HOME program. In 2004 this funding totaled nearly $1.6 million. That total has slowly declined to the 2013 award of just under $1.2 million. This annual funding comes with new opportunities as well as new responsibilities. A distinct and valuable implication of these ‘entitlement’ funds is that they provide both the City and agencies seeking funding the chance to do some long‐term planning. The City can now set local goals and priorities instead of responding to periodic notices of funding availability. In order to formalize this long‐term planning, HUD requires that local jurisdictions prepare and adopt a Consolidated Plan before funds are disbursed. The Plan is expected to assess the community development needs and priorities of the City and to provide a strategy for addressing those needs. This current Consolidated Plan will guide the funding decisions and action strategies of the community, as they relate to the CDBG and HOME Programs, for the next five years. 2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview The Consolidated Plan outlines goals that will be pursued over the next five years to address identified community needs. The purpose of the CDBG and HOME programs is to advance the following statutory objectives, for the principal benefit of low‐ and moderate‐income households: • Provide decent, safe, and affordable housing (CDBG) • Create suitable living environments (CDBG) • Expand economic opportunities (CDBG) • Expand the supply of decent, safe, sanitary, and affordable housing (HOME) In support of these program purposes and in light of identified needs in the local community, the City has established the following goals for this Consolidated Plan period: Improve and Expand Affordable Housing Options There is an acute shortage of affordable housing in the City of Ithaca. In 2010, 56% of all renter households were cost burdened, with 35% severely cost burdened, while 21% of Ithaca’s homeowners were cost burdened, and 10% severely so. To address this need, the City will support projects that increase the total supply of affordable units of all types and the affordability of existing units, and that improve the condition of existing affordable units. Expand Economic and Employment Opportunities Ithaca is a highly educated community with a low unemployment rate. This creates a very difficult dynamic for low‐ and moderate‐income community members who do not have specialized skills or a high educational attainment. To address this need, the City will provide direct loans and technical assistance to businesses to create jobs; support entrepreneurship training and technical assistance; and support initiatives that provide career readiness training, job placement, skill development, and on‐going post‐placement support. Strengthen Neighborhoods Ithaca is a community of neighborhoods, each with their own strong identity. For our City to thrive as a whole, each of these constituent parts must have the adequate physical resources and infrastructure to meet the needs of its residents and support their aspirations. To address this need, the City will support physical improvements to streets, parks, recreational facilities, public buildings, and transportation systems, for the benefit of low‐ and moderate‐income neighborhoods; the removal and redevelopment of vacant and abandoned properties; and programs that facilitate and support homeownership. Increase Access to Resources Leading to Physical and Economic Mobility Our community should be accessible to all its residents, regardless of their particular physical, or socio‐economic, characteristics. Where barriers to that access exist, they should be removed. To address this need, the City will undertake a Fair Housing Choice Survey resulting in an Analysis of Impediments to Fair Housing, and will provide funding for residential and public physical accessibility improvements, job creation and micro‐enterprise, job readiness and support, internships and other employment skill development opportunities, early childhood programming, and services to immigrants. Meet Essential Needs for Food, Shelter, and Safety Ithaca’s most fragile, at‐risk populations require the provision of public services that will meet the most basic human needs for food, shelter, and safety. To address this need, the City will support programs that prevent homelessness, assist immigrants and youth, improve access to affordable health care, increase food security, and/or increase awareness and utilization of existing community resources in these areas. 3. Evaluation of past performance The 2009‐2013 Consolidated Plan included fifteen specific objectives intended to address community needs that had been identified during the planning process. These objectives and their associated anticipated outcomes appear in the Table 1 below. The final column in this table shows actual outcomes for each objective. Five years later, it is evident that some of the projects that were anticipated in the last Plan did not materialize, and that areas of emphasis that emerged within some of the broader objective areas differed from projections. For the most part, however, the number of units produced or persons assisted equaled or exceeded anticipated outcomes, indicating high levels of continued need in these areas. Only in the area of Public Facilities and Infrastructure were actual outcomes uniformly equal to, lower than, anticipated. This was due in part to the failure of anticipated municipal street and sidewalk projects to move forward and reflects the sporadic nature of need in this particular area.  Specific Objectives Performance Expected Actual Measure Units Units Affordable Housing Objectives Owner occupied housing Assisted 92 318 households First‐time homebuyers Assisted 5 12 households Rental housing Assisted units 100 430 Supportive housing Assisted units 6 0 Homeless housing Assisted beds 12 34 Economic Development Objectives Job Creation New jobs 30 93.5 Job training & placement Persons assisted 36 83 Public Facilities & Infrastructure Objectives Enhance existing community centers Projects 3 3 Ensure availability and desirability of LMI Projects 4 1 neighborhood facilities; enhance pedestrian safety Mitigate impact of public improvement projects Projects 2 0 on LMI residents Remove or rehabilitate infrastructure or public As needed ‐ 0 facilities that create a blighting influence on LMI neighborhoods Public Services Objectives Improve marketing, outreach and utilization of Persons assisted 300 8,584 existing public services Expand existing public services or create new Programs 15 6 programs for focus populations assisted programs Retain existing public service programs Programs 5 5 addressing a documented need of LMI people assisted Table 1 ‐ Past Performance 4. Summary of citizen participation process and consultation process The IURA conducted significant outreach and consultation with citizens, neighborhood groups, non‐profits, and governmental agencies to determine community needs and establish Plan priorities. In accordance with the City’s approved Citizen Participation Plan, outreach consisted of both meetings with neighborhood residents and consultations with professionals and practitioners in fields related to community development. The list of agencies and organizations consulted appears in Section PR‐10 of this Plan. Neighborhood Public Input meetings were held as follows: 12/18/13, 5:00 pm, Common Council Chambers, City Hall, 108 E. Green Street 1/2/14, 5:00 pm, Greater Ithaca Activities Center, 301 W. Court Street 1/15/14, 3:00 pm, Common Council Chambers, City Hall, 108 E. Green Street 1/31/14, 6:00 pm, Greater Ithaca Activities Center, 301 W. Court Street Criteria for selecting meeting places included convenience and accessibility to the neighborhoods served by the IURA. Meetings were advertised in accordance with the Citizen Participation Plan. 5. Summary of public comments Public comments received during the citizen participation and consultation process centered primarily on the following high‐priority community needs: • Increased supply of affordable housing units of all types • Increased tenant‐based rental assistance • Utility and security deposit assistance • Improved transportation options • Increased supply of transitional housing units • Affordable childcare, pre‐school, and after‐school options • Living wage jobs • Financial and technical support to local businesses • Micro‐enterprise development and post‐start‐up assistance • Job readiness training, with a particular focus on youth • Specialized job training with placement and post‐placement support • Increased collaboration among service agencies and between agencies and schools • Improvements to the Southside Community Center • Accessibility improvements to several public buildings and areas • Need for a formal public gathering space on West Hill • Physical improvements to several recreational facilities • Homeowner repair and accessibility improvement assistance • Increased number of small and accessible or adaptable housing units • OT/RN services for home visits to keep people in their homes longer • Early childhood development programming • Food security 6. Summary of comments or views not accepted and the reasons for not accepting them All comments were accepted and considered in the preparation of this Consolidated Plan. Proposed Resolution IURA Neighborhood Investment Committee July 11, 2014 2014-2018 Consolidated Plan Adoption – HUD Entitlement Program WHEREAS, in the Fall of 2003, the US Department of Housing and Urban Development (HUD) notified the City that it qualified as an ‘Entitlement Community’ and that it would be receiving an annual allocation of HUD funds through the Community Development Block Grant Program (CDBG) and HOME Investment Partnerships (HOME) Program, and WHEREAS, in order to access these funds, the City is required to undertake a public input process and prepare a Consolidated Plan which identifies priority community development needs for the City of Ithaca every five years, and WHEREAS, it is now time to prepare an updated Consolidated Plan, and WHEREAS, under the terms of the February 14, 2013, agreement between the City of Ithaca and the Ithaca Urban Renewal Agency (IURA), the City has designated the IURA as the Lead Agency to develop and administer the Consolidated Plan on behalf of the City, and WHEREAS, the Consolidated Plan may only be adopted by the Common Council after it has undergone a 30-day public comment period and been the subject of two public hearings, and WHEREAS, the first public hearing was held before the IURA on June 26, 2014, and the second public hearing was held at the Planning and Economic Development Committee of the Common Council on July 9, 2014, and WHEREAS, following a citizen participation process to gain public input in identifying priority community development needs, the IURA issued a draft 2014-2018 Consolidated Plan for a 30-day public comment period that ends on August 5, 2014, and WHEREAS, at their July 2014 Neighborhood Investment Committee meeting the members reviewed the draft Consolidated Plan and recommended its adoption, now, therefore be it RESOLVED, that the IURA hereby adopts the 2014-2018 Consolidated Plan and further recommends its adoption by the Common Council, subject to the review and possible incorporation of any comments received.