IURA Neighborhood Investment Committee

Ithaca Urban Renewal Agency 108 East Green Street Ithaca, New York 14850 (607) 274-6565 AGENDA IURA Neighborhood Investment Committee (NIC) 8:30 am, Friday, March 16, 2018 Common Council Chambers, Third Floor City Hall, 108 E. Green St., Ithaca, NY 14850 I. Call to Order II. Changes/Additions to Agenda III. Public Comment IV. Review of Minutes – Minutes for March 9 and March 16 will be reviewed at April Meeting V. 2017 HUD Entitlement Grant Program 1. Discussion of CBDO Applications 2. Action Item: Resolution – 2018 IURA Designation of Historic Ithaca, Inc. as a Community- Based Development Organization 3. Review/Discussion of Proposals for 2018 Action Plan Funding #15- #28 VI. Other Business 1. IURA Grant Summary 2. Staff Report 3. Upcoming dates: a. Public Hearing #1 for 2018 Action Plan i. Part I: Friday, March 22, 8:30 am ii. Part II: Friday, March 29, 8:30 am b. Next NIC Meeting: April 13, 2018 VII. 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) 274-6559 To: NI Committee Members From: Anisa Mendizabal, Director of Community Development Re: Application to Renew Designation of Historic Ithaca as a CBDO Date: March 15, 2018 The Board of Historic Ithaca, Inc., has applied for Community Based Development Organization (CBDO) status for the 2018 Action Plan and have submitted a funding application for the Work Preserve Job Training: Job Placements project. The following table compares the requirements for CBDO status against information submitted by Historic Ithaca, Inc.: Requirement per 570.204(c)(1) Staff Analysis Organizational Purpose: YES Organized under state law to undertake Mission is to “promote the value and community development activities enhancement of our historic buildings and neighborhoods in the City of Ithaca and Tompkins County through education, advocacy, and action.” Additionally, the adopted HI 2015 Strategic Plan identifies ‘community development” as one of two focus areas and identifies the Work Preserve program as a community development initiative. Board Composition: YES A.Maintain at least 51% of governing body either HI’s by-laws indicate there shall be no fewer than 5 LMI residents of area of operation, owners or and no more than 15 members. There are senior officers of private establishments and currently 10 members. 6 of the 10 members (60%) institutions in the service area, or meet CBDO composition requirements. representatives of LMI neighborhood organizations in the service area. B. No more than 33% of the governing body may YES be elected officials. No elected officials on board Board Membership: YES Members of the board must be nominated and By-laws, Article II, Section 5. Members elected by approved by membership or permanent governing the Board. body, except that up to 1/3 of the board may be appointed or be elected officials. Purpose of the Organization: SEE “CBDO RECOMMENDATION” BELOW Have as its primary purpose the improvement of Articles of Incorporation indicate primary purpose the physical, economic, or social environment of is improvement of physical environment of service its service area with particular emphasis on LMI area through historic preservation. There is no persons explicit statement regarding LMI persons. Organizational Status: YES Must be either non-profit or for-profit with only 501(c)(3) incidental monetary benefit for its members. Assets: YES Must not be subject to reversion of assets to the No such reversion clause included in by laws or grantee upon dissolution, except for assets related articles of incorporation to specific grants. Contracting: YES Must be free to contract for goods and services See By Laws, Articles V and XII. from vendors of its own choosing CBDO Recommendation 24 CFR Part 570.204 (c) (3) allows for designation of CBDO’s who do not qualify under paragraph (c) (1) or (c) (2) when an organization is “sufficiently similar in purpose, function and scope” to entities qualifying as CBDOs under the prior paragraphs. Although Historic Ithaca’s original 1966 Articles of Incorporation did not foresee the value of teaching traditional building and craft skills and a focus on preserving historic elements of the local community to a modern day job training program, the organization’s 2014 Strategic Plan does recognize this connection and identifies the Work Preserve program as central to the purposes of the organization. Historic Ithaca has served in a community development capacity for the past six years, developing, modifying, and ensuring the success of a job training program for a population that has not demonstrated success in other job training programs. Their provision of life skills along with employment skills is the work of community based development organizations. IURA staff believe that Historic Ithaca meets the “substantially similar” test; however, there is a certain level of risk involved in approving their CBDO status since the organization’s Articles of Incorporation does not include particular attention to the needs of LMI persons. CDBG Public Service Cap Exemption One category of eligible CDBG activity is a “special activities by CBDOs”. Under certain circumstances, a CBDO is not subject to the 15% CDBG expenditure cap otherwise applicable to Public Services. To be exempt from the Public Service cap, the CBDO must both: (1) Undertake an eligible CBDO project, and (2) Carry out a service designed to increase economic opportunities for low- and moderate-income persons through job training and placement and other employment support services (e.g., child care, peer support programs, counseling, child care, transportation and other similar services). Eligible CBDO projects include any of the following: • Neighborhood revitalization, • Community economic development, or • Energy conservation project. According to HUD’s CDBG Desk Guide, a CBDO “community economic development” project must include activities that increase economic opportunity, principally for low- and moderate-income persons, or that are expected to create or retain businesses or permanent jobs within the community. HUD has emphasized that the provision of general job readiness training is not sufficient to qualify an activity as a CBDO Community Economic Development project; job placement must be the intended and actual outcome of such an activity. The Work Preserve Job Training and Placement program appears to satisfy this criterion; therefore, it is not subject to the 15%Public Services cap. Proposed Resolution IURA Neighborhood Investment Committee March 16, 2018 2018 IURA Designation of Historic Ithaca, Inc. as a Community-Based Development Organization WHEREAS, the Board of Historic Ithaca Inc., (Historic Ithaca) 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 WHEREAS, an eligible category of CDBG activities is a “Special Activity by CBDO”, that offers certain advantages, such as exemption from the 15% expenditure cap otherwise applicable to public service activities, authorization to carry out new housing construction (normally prohibited with CDBG funds), and discretion to allow income 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 Activity 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; 1  • community economic development; • energy conservation project; and Whereas, at their March 16, 2018, meeting, the Neighborhood Investment Committee evaluated Historic Ithaca, Inc. CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Historic Ithaca, Inc. meets the requirements for eligibility as a CBDO, and that the Work Preserve Job Training: Job Placements project qualifies as an eligible CBDO activity, and be it further RESOLVED, that the IURA hereby designates Historic Ithaca, Inc. as a Community-Based Development Organization (CBDO) and their Work Preserve Job Training: Job Placements project as eligible for CDBG funding under the category of “Special Activities by CBDOs”. j:\planning\community development\entitlement grants\cdbg 2018\cbdos\cbdo - historic ithaca\reso nic hi cbdo 2018 3-16- 18.doc 2  IURA Grants Summary February 2018 ON TOTAL # SCHEDULE HUD ENTITLEMENT ACTIVITIES SPONSOR BUDGET EXPENDED UNEXPENDED % SPENT 2015 CDBG Activities 2521 complete 1.0 Hancock Street INHS 250,403.50 250,403.50 0.00 100% 2522 complete 2.0 Mini repair INHS 35,000.00 35,000.00 0.00 100% 2 2531 complete 6.0 Temporary Ramp Loan Program Finger Lakes Ind. Center 20,000.00 20,000.00 0.00 100% 2532 complete 7.0 Hospitality Employment Training Program3 GIAC 109,372.86 109,372.86 0.00 100% 2523 complete 8.0 Work Preserve Job Training Program Historic Ithaca 87,500.00 87,500.00 0.00 100% 2524 ok 9.0 Spencer Road Sidewalks City of Ithaca 100,000.00 28,106.50 71,893.50 28% 2525 complete 10.0 2-1-1/I&R Service Human Services Coalition 20,000.00 20,000.00 0.00 100% 2526 complete 11.0 Building for the Future7 Southside Community Center 21,227.76 21,227.76 0.00 100% 2527 complete 12.0 Immigrant Services Catholic Charities 16,000.00 16,000.00 0.00 100% 2528 complete 13.0 A+ Tuition Assistance BJM Enrichment Program 17,410.00 17,410.00 0.00 100% 2529 complete 14.0 ReSET Job Training Expansion Finger Lakes ReUse 23,759.00 23,759.00 0.00 100% 2530 complete 15.0 CDBG Grant Administration IURA 134,329.20 134,329.20 0.00 100% 7 2912 complete Unallocated 2015 CDBG N/A 2,349.24 0.00 0.00 100% Total 837,351.56 763,108.82 71,893.50 91% 2016 CDBG Activities 2541 ok 3.0 LKNB Homeowner Rehab Love Knows No Bounds 36,334.72 25,510.00 10,824.72 70% 2542 complete 6.0 Mini repair INHS 30,000.00 30,000.00 0.00 100% 2543 ok 8.0 Work Preserve Job Training & Placement 5 Historic Ithaca 67,500.00 46,744.88 20,755.12 69% 2544 ok 9.0 Hospitality Employment Training Program GIAC 100,000.00 99,667.61 332.39 99% 2545 ok 11.0 Heating System & Code Corrections DICC 22,489.00 21,099.00 1,390.00 94% 2546 complete 12.0 Advocacy Center Garage Renovation Advocacy Center 10,317.00 10,317.00 0.00 100% 2547 ok 13.0 Wading Pool Renovations GIAC 185,000.00 0.00 185,000.00 0% 2548 complete 1.0a Housing for School Success IURA 11,580.00 11,580.00 0.00 100% 2549 complete 14.0 A Place to Stay Case Management Catholic Charities 17,625.65 17,625.65 0.00 100% 2550 complete 8.0a Work Preserve Job Readiness Historic Ithaca 20,000.00 20,000.00 0.00 100% 2551 complete 15.0 Immigrant Services Catholic Charities 30,000.00 30,000.00 0.00 100% 2552 complete 16.0 211 Info and Referral HSC 20,000.00 20,000.00 0.00 100% 2553 complete 17.0 CDBG Admin IURA 132,274.20 132,274.20 0.00 100% Total 683,120.57 464,818.34 218,302.23 68% 2016 HOME Activities 2755 ok 1.0 Housing for School Success IURA 77,104.40 43,288.42 33,815.98 56% 2756 ok 2.0 Security Deposit Assistance Program (including Inspections Catholic Charities 44,026.00 43,651.00 375.00 99% 2757 ok 4.0 304 Hector Street INHS 100,000.00 96,380.00 3,620.00 96% 2758 complete 5.0 202 Hancock Townhouses 8, 9, 15 INHS 314,125.00 314,125.00 0.00 100% 2759 ok 7.0 Morris Ave Homes 14 Habitat for Humanity 75,000.00 53,481.17 21,518.83 71% 2760 complete 18.0 HOME Admin IURA 32,984.10 32,984.10 0.00 100% 2807 complete Unallocated 2016 HOME 11 N/A 0.00 0.00 0.00 100% Total 643,239.50 583,909.69 59,329.81 91% 2017 CDBG Activities 2561 ok 1.0 Chartwell House Tompkins Community Action 22,000.00 7,695.00 14,305.00 35% 2562 ok 2.0 2017 Homeowner Rehab INHS 75,000.00 0.00 75,000.00 0% 2563 ok 6.0 Mini Repair INHS 26,000.00 0.00 26,000.00 0% 2564 ok 7.0 Hospitality Employment Training Program GIAC 100,000.00 0.00 100,000.00 0% 2565 complete 8.0 Ithaca ReUse Center Expansion Finger Lakes ReUse, Inc. 50,000.00 0.00 0.00 100% 2566 ok 10.0 Work Preserve Job Training: Job Placements Historic Ithaca 67,500.00 0.00 67,500.00 0% 2567 ok 11.0 Food Entrepreneurship CCE of Tompkins County 36,587.00 6,428.66 30,158.34 18% 2568 ok 12.0 Urban Bus Stop Signage & Amenities TCAT 25,000.00 0.00 25,000.00 0% 2569 ok 13.0 DICC Heating & Roofing Replacement6, 7 DICC 35,500.00 16,205.00 19,295.00 46% 2570 ok 14.0 Immigrant Services Catholic Charities 30,000.00 7,500.00 22,500.00 25% 2571 ok 15.0 Work Preserve Job Readiness Historic Ithaca 20,000.00 0.00 20,000.00 0% 2572 ok 16.0 2-1-1 Info and Referral Human Services Coalition 20,000.00 18,268.90 1,731.10 91% 2573 ok 17.0 A Place To Stay: Supportive Services Catholic Charities 15,925.00 0.00 15,925.00 0% 2574 ok 18.0 Housing For School Success: Year #2 ICSD 13,280.00 6,388.79 6,891.21 48% 2575 ok 19.0 CDBG Admin IURA 128,882.00 23,997.12 104,884.88 19% ok 22.0 Economic Development Loan Fund IURA 56,886.24 0.00 56,886.24 0% ok 9.0 Harriet Gianellis Child Care Center Tompkins Community Action 84,200.00 0.00 84,200.00 0% ok Unallocated 2017 CDBG16 N/A 50,000.00 0.00 50,000.00 0% Total 856,760.24 86,483.47 720,276.77 16% 2017 HOME Activities 2767 ok 3.0 402 South Cayuga Street Habitat for Humanity 80,000.00 0.00 80,000.00 0% 2768 ok 4.0 Housing Scholarship Program11 The Learning Web 65,592.00 10,096.74 55,495.26 15% 2769 ok 5.0 Security Deposit Assistance Catholic Charities 42,750.00 28,111.00 14,639.00 66% Page 1 of 2  IURA Grants Summary February 2018 ON TOTAL # SCHEDULE HUD ENTITLEMENT ACTIVITIES SPONSOR BUDGET EXPENDED UNEXPENDED % SPENT 2770 ok 21.0 828 Hector Street (CHDO) INHS 41,378.00 0.00 41,378.00 0% 2771 ok 20.0 HOME Admin IURA 27,565.10 3,879.74 23,685.36 14% 12 2807 ok Unallocated 2017 HOME N/A 19,977.80 0.00 19,977.80 0% 15 ok Recaptured Funds (HP) N/A 5,000.00 0.00 5,000.00 0% 8 ok Unanticipated Program Income (PI) N/A 21,545.00 0.00 21,545.00 0% Total 303,807.90 42,087.48 261,720.42 14% CDBG Spend Down Ratio (must be less than 1.5 by June 1st of each year (60 days prior to program year): CDBG Spend Down Ratio = total unexpended CDBG funds/most recent annual CDBG award YES Pre-2017 Method: Unexpended CDBG Grant funds on Line of Credit: 1.349 NO Current Method: Total Unexpended CDBG funds: Line of Credit + CDBG Revolving Loan Fund: 2.008 Maximum Unexpended CDBG Funds to Satisfy 1.5 CDBG Spend Down Ratio 966,615 Amount Required to be Expended by 6/1 to Meet CDBG Spend Down Ratio of 1.5: 327,153 Total Unexpended HUD Entitlement Funds CDBG Activities 869,386.26 CDBG Program Income 141,086.24 CDBG Revolving Loan Fund Balance 565,467.54 HOME Activities 321,050.23 HOME Program Income Activites 0.00 Total Unexpended HUD Entitlement Funds 1,896,990.27 Page 2 of 2