IURA Neighborhood Investment Committee

In-Person Hybrid Meetings: The IURA no longer conducts Public Meetings exclusively remotely. Meetings must be conducted in person, complying with NYS Open Meeting Law (OML), which applies to all IURA Board and Committees. Members of the public 108 E. Green St. who would like to deliver VERBAL comments at a meeting (3-min. max.) are strongly encouraged to do so using the Zoom link and Ithaca, NY 14850 log-on credentials listed on the agenda, although they are welcome to do so in person at City Hall. WRITTEN public comments (607) 274-6565 may be submitted before the meeting, using the instructions listed on the agenda. Pls. refer to the IURA Public In-Person/Hybrid Meetings Policy for more detailed information and further instructions. LIVE-STREAM VIDEO: A non-interactive YouTube live- stream of the meeting can also be viewed at: https://www.youtube.com/channel/UC7RtJN1P_RFaFW2IVCnTrDg. Because of a slight delay in launching the live-stream, the video may begin a few minutes before the meeting is formally convened. SPECIAL MEETING AGENDA IURA Neighborhood Investment Committee (NIC) 12:00 p.m., Thursday, January 19, 2023 (public, staff, & presenters may join remotely) Common Council Chambers (Third Floor) │ 108 E. Green St. │ Ithaca, NY 14850 Join Zoom Meeting: https://us02web.zoom.us/j/86544854910?pwd=S1FEVkZlWlVWS2tGRlFSdHdKMWk0QT09 Meeting ID: 842 0867 5492 ↖ different Zoom log-in credentials from standing meetings Passcode: QB1L3z Dial By Your Location: +1 646 558 8656 US (New York) Meeting ID: 842 0867 5492 Phone Passcode: 355642 I. Call to Order PUBLIC COMMENTS II. Changes/Additions to Agenda WRITTEN public comments may be e-mailed until 3:00 p.m., the day before the meeting to: amendizabal@cityofithaca.org. Members of the public who would prefer to deliver VERBAL comments at the meeting (3-min. max.) should III. Public Comments (if any) either appear in person or use above Zoom link and log-in credentials (for video) or dial-in number and log-in credentials (for telephone). IV. New Business A. ACTION ITEM: Application for Designation of Community-Based Development Organization (CBDO) Status — Black Hands Universal (BHU) 1. Discussion 2. Proposed Resolution: 2023 Designation of Black Hands Universal as Community-Based Development Organization (CBDO) V. Motion to Adjourn If you have a disability and require specific accommodation in order to fully participate, please contact the CITY OF ITHACA CLERK’S OFFICE at 274-6570 or clerk@cityofithaca.org at least 72 hours prior to the meeting. 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 To: IURA Board & NI Committee Members From: Anisa Mendizabal, Community Development Planner Re: Application to Designate Black Hands Universal (BHU) as a CBDO Date: January 10, 2023 The Board of Black Hands Universal (BHU) has applied for Community Based Development Organization (CBDO) status for the 2023 Action Plan. Black Hands Universal intends to submit a proposal(s) to the 2023 Action Planning Process which may require CBDO status. The following table compares the requirements for CBDO status against information submitted by BHU: Requirement per 570.204(c)(1) Staff Analysis Organizational Purpose: YES Organized under state law to undertake Mission Statement: “The mission of Black Hands community development activities Universal is to provide services and programs that address the needs and concerns of disenfranchised people in the City of Ithaca and Tompkins County. Black Hands Universal is a BIPOC led grassroots’ organization whose strength lies in community connection, community voice, and community action.” Article 2 (Purpose, Objectives, and Governing Instruments) of BHU’s Bylaws states “Black Hands Universal’s purpose is to create opportunities for those who are disenfranchised by the system by providing them with job placement and training, financial literacy, mental health resources, health and wellness, as well as cultural and educational resources for children and adults.” Board Composition: YES A. Maintain at least 51% of governing body either BHU’s Articles of Incorporation indicate there shall LMI residents of area of operation, owners or be no fewer than 3 and no more than 15 senior officers of private establishments and members. institutions in the service area, or representatives of LMI neighborhood The organization’s Board is currently comprised of organizations in the service area. four (4) members. All four members (100%) meet a CBDO composition requirement. Note: BHU’s Chief Executive Officer also serves as a Board Member for the organization.  IURA staff’s research indicates that while it is unusual for an employee of a non-profit organization to serve as a voting board member, it is not illegal. A 2015 report by BoardSource found that 12% of nonprofits included their executive director or chief executive officer as a voting board member, more commonly among large organizations. 1 Some professional organizations in the nonprofit sector suggest that when an executive director is on a nonprofit board that they be a non-voting member 2 and/or there be an “effective” conflict of interest policy. 3 Some sources caution that board members who are employees may have a greater influence over other board members than non-employees. Since boards take action that may directly affect employees, and such decisions should be made “at arm’s length.” 4 B. No more than 33% of the governing body may BHU’s Conflict of Interest Policy describes the be elected officials or employees/appointees of process by which the Board may determine the City of Ithaca. whether officers or directors of the Corporation stand to benefit from any transaction. Article V (a) (Compensation) states of this policy states “A voting member of the governing board who receives compensation, directly or indirectly, from the Corporation for services is precluded from voting on matters pertaining to that member’s compensation.” YES As of January 9, 2023, none of the board members are elected officials or employees/appointees of the City of Ithaca. Board Membership: YES Members of the board must be nominated and As evidenced by list of Board of Directors and BHU approved by membership or permanent governing Bylaws, Article 4. 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 BHU Bylaws, Article 2 the physical, economic, or social environment of 1 BoardSource, https://blog.boardsource.org/blog/2016/01/05/should-your-ceo-serve-as-a-board-member/ 2 Council of Nonprofits, https://www.councilofnonprofits.org/tools-resources/board-roles-and-responsibilities 3 Candid Learning, https://learning.candid.org/resources/knowledge-base/executive-director-on-board/ 4 JCRS, “Nonprofit Board of Directors, The Legal Basis for Good Governance,” https://www.nyc.gov/html/nonprofit/downloads/pdf/Nonprofit%20Board%20of%20Directors%20the%20Legal%20 Basis%20for%20Good%20Governance.pdf its service area with particular emphasis on LMI persons Organizational Status: YES Must be either non-profit or for-profit with only Certificate of Incorporation, NYS Department of incidental monetary benefit for its members. State, Division of Corporations, Under Section 402 of the Not-for-Profit Corporation Law 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. See “Reviewer Note” at the bottom of this chart. Contracting: YES Must be free to contract for goods and services The organization’s Procurement Policy does not from vendors of its own choosing require use of certain vendors. The Policy describes a number of considerations in the organization’s selection process. Reviewer Note: When documents submitted contained a discrepancy between a written number and a numeral, the written number was used. CBDO Recommendation Black Hands Universal’s vision for future projects and desire to eventually lead implementation of economic development and new construction activities led the organization to determine that CBDO status could facilitate such activities. BHU initiated its CBDO application process in Fall 2023 and submitted its final application on January 9, 2023. BHU has remained in contact with IURA staff to provide any necessary follow-up documentation. Community development aims are central to BHU’s mission. BHU’s 2021 CDBG-CV “Health and Wellness” project included job readiness components for its youth workers. BHU’s 2022 CDBG “Pre- Apprenticeship Program Work Services,” has not yet been implemented but similarly proposes to include employment readiness and training. IURA staff notes that the inclusion of BHU’s Chief Executive Officer on its Board of Directors is not a standard practice for most nonprofits, though neither is it illegal. Nonprofit governance literature cautions taking care against perceived or actual undue influence or personal benefit. BHU’s Bylaws and Conflict of Interest Policy contain procedures for addressing governance questions. After reviewing its Mission Statement, Bylaws, Certificate of Incorporation, and Board Member Self-Certification Forms, it is the opinion of IURA Staff that Black Hands Universal meets HUD’s standards and requirements for certification as a Community-Based Development Organization (CBDO). CDBG Public Service Cap Exemption One category of eligible CDBG activity is “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. Black Hands Universal does not currently operate a CDBO-required project (such as any in the bulleted list above) but it may apply for one in the future. CBDO certification does not assure approval of proposed CDBG-funded projects. If a certified CBDO organization is awarded CDBG funding to carry out a Special Activity by a CBDO, IURA will administer a point-in-time (“snapshot”) test at the time of contract execution to ensure continued compliance. Proposed Resolution Ithaca Urban Renewal Agency (IURA) Neighborhood Investment Committee (NIC) January 19, 2023 2023 IURA Designation of Black Hands Universal (BHU) as a Community-Based Development Organization WHEREAS, the Board of Black Hands Universal (BHU) 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; ● community economic development; 1  ● energy conservation project; and Whereas, IURA evaluated BHU’s CBDO application and recommended the following; now, therefore, be it RESOLVED, that the IURA determines that Black Hands Universal meets the requirements for eligibility as a CBDO, and be it further RESOLVED, that the IURA hereby designates Black Hands Universal as a Community-Based Development Organization (CBDO). 2