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, October 12, 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 September 14, 2018 V. New Business 1. Action Item: Resolution – Amendment to 2016 Action Plan Project #5 (202 Hancock Townhomes) to Increase HOME Funding by $2,600 to Cover Bond Gap 2. Discussion: Small Cities Funding, Part II: Proposed Projects 3. Discussion: 2018 Consolidated Plan/Action Plan VI. Other Business 1. IURA Grant Summary 2. Staff Report 3. Next Meeting: November 9, 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) 274-6565 DRAFT MINUTES IURA Neighborhood Investment Committee (NIC) 8:30 am, Friday, September 14, 2018 Common Council Chambers, Third Floor City Hall, 108 E. Green St., Ithaca, NY 14850 Present: Karl Graham, Chair; Tracy Farrell, Vice Chair; Teresa Halpert; Fernando de Aragón. Excused: Paulette Manos (on leave) Staff: Anisa Mendizabal Guests: Lynn Truame, Sr. Real Estate Developer, Ithaca Neighborhood Housing Services. I. Call to Order Chair Graham called the meeting to order at 8:34 am. II. Public Comment None. III. Changes/Additions to the Agenda Action Item – Resolution was moved to follow discussion on the same topic. IV. Review of Minutes – Minutes for July 13, 2018 De Aragón moved, Farrell seconded. Approved 4-0. V. New Business 1. Discussion: 2018 Action Plan Project #7 (Lynn Truame) Chair Graham welcomed Lynn Truame of Ithaca Neighborhood Housing Services (INHS) to discuss INHS’s development process of Project #7, which has led to a request by INHS for reallocation of funds to a revised version of the project. Ms. Truame began by explaining that the IURA deadline for Action Plan funding (late February) is almost a year earlier than State’s tax credit deadline, which occurs in December. Assembling a tax credit-eligible project so early can be challenging. In this case, the leadership structures of the partners involved (Salvation Army and INHS) move at different rates. Salvation Army has a regional and national structure within which to operate. Locally, the Salvation Army Major charged with administration (in Ithaca) has retired. New local leadership will be great, but the turnover plus the Salvation Army’s internal structure of decision makes it too late to get architectural drawings approved – moving this portion of Project #7 to 2019. The latest (revised) iteration of the project comprises fifteen rental units on Elm Street units plus four other INHS properties that have been identified for rehabilitation brings the revised total number of units to 29 units. This number is small for tax credit, but INHS ran it by Enterprise, which was comfortable with it. So, it will go to HCR. Farrell noted that the Committee was aware of the need for rehabilitation of the Elm Street units, but are not necessarily familiar with the needs at the other four properties. Truame responded that the additional four properties are the last ones in INHS’ scattered site portfolio that need rehabilitation. . Halpert commented that she wasn’t aware that INHS has commercial properties. Truame replied, yes, 501 State Street is the frame shop. At the time it that property was acquired, INHS’ practice was to acquire the “worst” property on the block in order to stabilize to neighborhood. At that time, there were people moving out of Ithaca and there were many properties in decline. Now, it’s the opposite. Discussion moved to the total numbers of units involved in the project. In this iteration, there are to be 29 units affected vs. the 42 units at Salvation Army site [alone]. This revised project still includes set-asides—5 special needs units. INHS is in discussion with Unity House to provide supportive services for the individuals who live in the set-aside units. So, these units will possibly serve a different population vs. the originally-proposed 15 set asides for homeless households. The Unity House folks could be homeless, but don’t have to be to qualify for these units. Farrell asked about 412 W. Seneca Steet. Truame explained that was the glass company. This property was proposed for inclusion in a previous map and iteration, but is now not included. 402 S. Plain Street is included. Truame continued. The level of rehab is quite large. Currently none of the properties have a regulatory period. So, the proposed tax credits would put a 50-year affordability period on them (currently INHS keeps those affordable per policy, but isn’t required to by regulation). Farrell asked whether any of these could go to homeownership. Truame explained that they probably would not, unless any were side-by-side duplexes. Farrell shared a news story about CHN Housing partners in Ohio (Cleveland and Cayahoga Counties). This organization linked affordable rental housing to affordable home ownership after 15 years of renting with a high success rate. Truame noted that Cedar Creek is set up with that intent. Bohn commented that such a plan requires careful advance planning due to utilities and common wall issues, for example. The State used to give incentives for this type of program. Farrell asked Truame whether there could be any more changes at this time; Truame replied “no”. and Action Item: Resolution – Program Amendment #2: INHS Scattered Site 2 (Project #7) 2. Action Item: Resolution - 2018 Action Plan - Program Amendment #2, INHS Scattered Site 2 (project #7) Moved by Farrell, de Aragón seconded. Carried 4-0. 2018 Action Plan - Program Amendment #2, INHS Scattered Site 2 (project #7) WHEREAS, the City adopted 2018 Action Plan allocated $100,000 in HOME funds to assist the Scattered Site Phase 2: New Construction project (Project) sponsored by Ithaca Neighborhood Housing Services, Inc. (INHS), and WHEREAS, the Project included redevelopment of the site located at 150 N. Albany Street, owned by the Salvation Army, for new construction of an approximately 42-unit affordable housing project, and WHEREAS, on September 6, 2018, the IURA received notice from INHS that the 150 N. Albany Street project will not be ready for submission for the annual NYS Unified Funding in December 2018, and requested re-allocation of the HOME funds to a substitute affordable housing project including reconstruction and rehabilitation of 29 rental housing units at the following locations: • 203-209 Elm Street • 111 W. Clinton Street • 406 S. Plain Street • 227 S. Geneva Street • 502 W. Green Street, and WHEREAS, development of the 150 N. Albany Street project is now projected to be submitted for State funding in December 2019, and WHEREAS, the HUD Citizen Participation Plan requires a public hearing and Common Council approval for substantial amendments to the Action Plan, and WHEREAS, a change in the location of the original Project and a change in the use of funds from new rental housing construction to reconstruction and rehabilitation of existing rental units qualifies the requested action as a substantial program amendment, and WHEREAS, at their September 14, 2018 meeting, the IURA Neighborhood Investment Committee considered this matter and recommends approval of funding for the proposed substitute INHS affordable housing project; now, therefore, be it RESOLVED, that the IURA hereby recommends that the Common Council for the City of Ithaca adopt program amendment #2 to approve the following revised project in the FY18 HUD Action Plan: REVISED PROJECT – Program Amendment #2, 2018 Action Plan Sponsor: Ithaca Neighborhood Housing Services, Inc. Project Name: Scattered Site 2 Funding Amount: $100,000 Funding Source: HOME Project Locations: 203-209 Elm St. 111 W. Clinton St. 406 S. Plain St.  227 S. Geneva St. 502 W. Green St. Project Type: Reconstruction and Rehabilitation of Rental Housing Number of Housing Units: 29 ORIGINAL PROJECT – To be Defunded in the 2018 Action Plan Sponsor: Ithaca Neighborhood Housing Services, Inc. Project Name: Scattered Site Phase 2: New Construction Funding Amount: $100,000 Funding Source: HOME Project Location: 150 N. Albany St. Project Type: New Construction of Rental Housing Number of Housing Units: 42 An informal discussion of the Immaculate Conception site followed. 3. Discussion: NYS Small Cities Program Income Bohn explained that in the years 2000-2003, the City of Ithaca was part of a state-administered Small Cities Program. When the City became a HUD Entitlement Community in 2004, it went from being monitored and overseen by the Small Cities Program back to HUD Buffalo. The one major loan made by the IURA-administered loan fund during this time was that of the Hilton Garden Inn. The Hilton Garden Inn is working on paying down that loan, which is Program Income (PI). Now, the State has made a major change. The state will now recapture all (accrued) PI unless it is used by March 2019. New PI will go immediately to state. The impetus for the change was that the State was monitored and cited for not monitoring this program. Since making the loan, the IURA has continued tracking its PI, which is held in a separate account. There is 6-8 years left of loan repayment and approximately $500,000 in PI to use for future loans. It has been a “safety fund” in some regard. It can be used for community development loans, for example. However, now the money must be expended or a binding agreement for its use by March 2019. The question for the Committee is whether it has ideas for uses of the funds. Halpert suggested the proposed Aurora Street sidewalk project could be considered. Bohn responded: “There are a lot of what if questions that have not been settled and probably could not be settled by March. March is soon; we need not just solicitation but signed contract.” Bohn discussed possible activities for use of the funds: 1.Cherry Street road extension could use up to $300,000. This money is tied to job creation. Emmy’s has thus far committed to 5 jobs. 2. Wading pool – This would be a reimbursement to the City for funds it has expended on the project. Bohn explained another part of these regulatory changes to consider: If a (Small Cities participant) receives $35,000 or less a year, it’s considered “de minimus” and community can keep it. Right now the loan is structured for $40,000 a year. This could be restructured. IURA has been treating this account (Small Cities PI) as part of a revolving loan fund. This account has never been fully drawn down because IURA had enough in the federal pot. Chair Graham asked if there are any possible new uses of funds, and if so, what would the process be. Bohn replied that IURA would have to get it approved by the State of NY, eligible as the State’s program currently exists For example, the State doesn’t currently have job training activity in that category—it’s only micro enterprise and small business. The Agency would submit a proposed project to the State, and they would vet it for eligibility. The State has about $50 million in this category to expend. De Aragón asked about an inter-city bus stop. Bohn replied, such a project could be a public facility, yet, timeline-wise, it might not work. The money needs to be committed by March. This is why taking debt load off other projects might be a good use to free up future use for something like this. Chair Graham wondered about the decision-making chain in the City: Does the Agency recommend and Common Council approve? Bohn believes so. It doesn’t appear to be funding that can simply be approved by the Mayor. Graham observed there are lots of ideas likely to come forward. Farrell sees the real problem being it must be spent quickly. De Aragón wondered what assurances there would be that “freed up money” would later be able to be used for a desired project. Bohn replied that there probably is no certainty, but the Agency could specify that it should be used for a low-mod community. The Mayor is Chair of IURA, which could lend support to this specification; however, Bohn doesn’t think there is any way to contractually assure this would occur. Farrell concluded that it’s not as if [anyone] is going to write an IOU to IURA. Chair Graham observed that there seem to be many microenterprise loans currently being offered, some people in the community are having difficulty obtaining them for business purposes. Bohn said it would send Graham information about the “test” the State uses. The State will not let us create a pool of funds to be used as a loan-- that’s what we have now, and what we are being told we must change. Chair Graham charged the Committee with thinking about possible projects, and going beyond brainstorming at the next meeting. By next month, we should be trying to work through list of possible projects. Bohn will be putting Cherry Street forward, as one possibility. Bohn will talk to the City’s Sidewalks Coordinator what possibilities exist. The short list for consideration includes the following: Sidewalks Microenterprise loans Amenities to enhance the bus station and stops Halpert asked whether it was possible to create an MOU for whatever project is chosen eventually try to do. Bohn replied there is no history of doing that. For example, there are no MOUs between Common Council and Public Works. Halpert replied that the intention behind such an idea is to at least acknowledge it’s IURA that is putting money toward a project; at the end of the day, however, IURA administers these funds for the City. VI. Other Business 1. IURA Grant Summary 2. Staff Report Mendizabal reported on a recent meeting with Food Entrepreneurship Project. Farrell wanted to know how many gigs Food Entrepreneurs have gotten, how much income this has grossed and netted, and how many are on track for business licenses. How do those in the community locate the Food Entrepreneurs should they wish to hire them? Mendizabal will investigate and report back. Bohn reminded the group that Finger Lakes ReUse has an balloon payment of $1 million due early next year. 3. Next Meeting: October 12, 2018 Farrell shared the website: CHNHousingpartners.org for information/ booklet on homeowner opportunities for renters. VI. Motion to Adjourn Adjourned by consensus at 10:12 a.m.  IURA Grants Summary August 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% 2531 complete 6.0 Temporary Ramp Loan Program 2 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 NO 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% 2912 complete Unallocated 2015 CDBG7 N/A 0.00 0.00 0.00 100% Total 835,002.32 763,108.82 71,893.50 91% 2016 CDBG Activities 2541 complete 3.0 LKNB Homeowner Rehab 18 Love Knows No Bounds 34,074.00 34,074.00 0.00 100% 2542 complete 6.0 Mini repair INHS 30,000.00 30,000.00 0.00 100% 2543 complete 8.0 Work Preserve Job Training & Placement 5 Historic Ithaca 67,500.00 67,500.00 0.00 100% 2544 complete 9.0 Hospitality Employment Training Program GIAC 100,000.00 100,000.00 0.00 100% 2545 complete 11.0 Heating System & Code Corrections 20 DICC 21,099.00 21,099.00 0.00 100% 2546 complete 12.0 Advocacy Center Garage Renovation Advocacy Center 10,317.00 10,317.00 0.00 100% 2547 NO 13.0 Wading Pool Renovations GIAC 185,000.00 34,974.00 150,026.00 19% 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% 1913 ok Unallocated 2016 CDBG 18, 20 N/A 3,650.72 0.00 3,650.72 0% Total 683,120.57 529,443.85 153,676.72 78% 2016 HOME Activities 2755 complete 1.0 Housing for School Success21 IURA 43,288.42 43,288.42 0.00 100% 2756 complete 2.0 Security Deposit Assistance Program (including Insp Catholic Charities 44,026.00 44,026.00 0.00 100% 2757 complete 4.0 304 Hector Street INHS 100,000.00 100,000.00 0.00 100% 2758 complete 5.0 202 Hancock Townhouses 8, 9, 15 INHS 314,125.00 314,125.00 0.00 100% 2759 complete 7.0 Morris Ave Homes 14 Habitat for Humanity 75,000.00 75,000.00 0.00 100% 2760 complete 18.0 HOME Admin IURA 32,984.10 32,984.10 0.00 100% 2807 ok Unallocated 2016 HOME 11, 21 N/A 33,815.98 0.00 33,815.98 0% Total 643,239.50 609,423.52 33,815.98 95% 2017 CDBG Activities 2561 ok 1.0 Chartwell House Tompkins Community Action 22,000.00 0.00 22,000.00 0% 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 11,285.64 14,714.36 43% 2564 ok 7.0 Hospitality Employment Training Program GIAC 100,000.00 97,104.06 2,895.94 97% 2565 cancelled 8.0 Ithaca ReUse Center Expansion Finger Lakes ReUse, Inc. 0.00 0.00 0.00 100% 2566 ok 10.0 Work Preserve Job Training: Job Placements Historic Ithaca 67,500.00 19,155.63 48,344.37 28% 2567 ok 11.0 Food Entrepreneurship CCE of Tompkins County 36,587.00 18,923.21 17,663.79 52% 2568 ok 12.0 Urban Bus Stop Signage & Amenities TCAT 25,000.00 0.00 25,000.00 0% 2569 complete 13.0 DICC Heating & Roofing Replacement6, 7, 19 DICC 49,000.00 49,000.00 0.00 100% 2570 ok 14.0 Immigrant Services Catholic Charities 30,000.00 25,000.00 5,000.00 83% 2571 ok 15.0 Work Preserve Job Readiness Historic Ithaca 20,000.00 6,607.54 13,392.46 33% 2572 complete 16.0 2-1-1 Info and Referral Human Services Coalition 20,000.00 20,000.00 0.00 100% 2573 ok 17.0 A Place To Stay: Supportive Services Catholic Charities 15,925.00 3,981.25 11,943.75 25% 2574 ok 18.0 Housing For School Success: Year #2 ICSD 13,280.00 10,005.09 3,274.91 75% 2575 ok 19.0 CDBG Admin IURA 128,882.00 116,873.10 12,008.90 91% ok 22.0 Economic Development Loan Fund IURA 56,886.24 0.00 56,886.24 0% complete 9.0 Harriet Gianellis Child Care Center Tompkins Community Action 84,200.00 84,200.00 0.00 100% ok Unallocated 2017 CDBG16, 19 N/A 36,500.00 0.00 36,500.00 0% Total 806,760.24 462,135.52 344,624.72 57% 2017 HOME Activities 2767 cancelled 3.0 402 South Cayuga Street17 Habitat for Humanity 0.00 0.00 0.00 100% 2768 ok 4.0 Housing Scholarship Program11 The Learning Web 65,592.00 34,789.82 30,802.18 53% 2769 ok 5.0 Security Deposit Assistance Catholic Charities 62,700.70 53,249.50 9,451.20 85% Page 1 of 2  IURA Grants Summary August 2018 ON TOTAL # SCHEDULE HUD ENTITLEMENT ACTIVITIES SPONSOR BUDGET EXPENDED UNEXPENDED % SPENT 2770 ok 21.0 828 Hector Street (CHDO) 23 INHS 41,378.00 34,219.63 7,158.37 83% 2771 ok 20.0 HOME Admin IURA 27,565.10 13,954.38 13,610.72 51% 2807 ok Unallocated 2017 HOME12, 17, 23 N/A 104,286.88 0.00 104,286.88 0% ok Home Admin (PI)22 N/A 2,217.30 2,217.30 0.00 100% ok Recaptured Funds (HP)15 N/A 5,000.00 0.00 5,000.00 0% ok Unanticipated Program Income (PI)8 N/A 21,545.00 0.00 21,545.00 0% Total 330,284.98 138,430.63 191,854.35 42% 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 YES Pre-2017 Method: Unexpended CDBG Grant funds on Line of Credit: 0.785 YES Current Method: Total Unexpended CDBG funds: Line of Credit + CDBG Revolving Loan Fund: 1.272 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: -82,182 Total Unexpended HUD Entitlement Funds CDBG Activities 505,613.70 CDBG Program Income Activities 64,581.24 CDBG Revolving Loan Fund Balance 378,819.13 HOME Activities 225,670.33 HOME Program Income Activites 8,880.70 HOME Program Income Unassigned 5.00 Total Unexpended HUD Entitlement Funds 1,183,570.10 Page 2 of 2