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HomeMy WebLinkAboutMN-IURA-2025-09-04 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY BOARD 9:00 A.M., Thursday, September 4th, 2025 (rescheduled August meeting) Common Council Chambers, Third Floor (City Hall) 108 E. Green St., Ithaca, NY 14850 Members: Robert G. Cantelmo (Mayor), Chair; Karl Graham, Vice-Chair; Shaianne Osterreich; Siobhan Hull; Donna Fleming Excused: None. Vacancies: 0 Common Council Liaison: Ducson Nguyen [virtual] IURA Staff: Nels Bohn; Charles Pyott [virtual] City Staff: Lisa Nicholas, Director of Planning & Development Guests: Delia Yarrow, Ithaca Neighborhood Housing Services, Inc. (INHS) I. Call to Order Cantelmo called the meeting to order at 9:01 A.M. II. Agenda Additions/Deletions None. III. Public Comments None. IV. Review of Meeting Minutes: July 25, 2025 Hull moved, seconded by Fleming, to approve the meeting minutes with no modifications. Carried Unanimously: 5-0 V. Economic Development Committee (EDC) A. Community Lending: Request from Urban Encore, LLC for Housing Development Action Grants (HODAG) Loan Assistance for the 115-123 S. Cayuga St. Rehabilitation Project Hull explained that the proposal is to grant a loan from HODAG funds to Urban Encore, LLC for $300,000 for the adaptive reuse project at 115 through 123 South Wiegel Street, which includes the creation of low- and moderate-income housing units for households earning 80% of Area Median Income. Approved: 10/23/25 IURA Minutes September 4, 2025 Page 2 of 15 Fleming moved, seconded by Graham: Loan Assistance to Urban Encore, LLC to Support Cayuga Street Redevelopment Project — (HoDAG Project #22) WHEREAS, on May 23, 2024, Urban Encore, LLC (“Borrower”) applied for $300,000 in loan assistance from the IURA to complete adaptive reuse of buildings at 115-123 S. Cayuga Street to include creation of 18 upper-story apartments to be rented to low- and moderate-income households at rents affordable to a household earning 80% of Area Median Income (AMI), and WHEREAS, on July 9, 2024, the IURA Economic Development Committee (EDC) discussed the loan application and following review of a credit analysis prepared by the Harrison Studio conceptually supported loan assistance for the project but were not in position to take any action on the loan until environmental review and historic preservation consultation had not been completed, and WHEREAS, on March 4, 2025, the City of Ithaca classified the project as a Type II Action In accordance with §176-5 C. (2) of the City of Ithaca Environmental Quality Review Ordinance that does not require further environmental review, and WHEREAS, on July 11, 2025, the State Historic Preservation Office concluded the project will have no adverse impact on historic resources, and WHEREAS, the IURA administers the HODAG fund, which originally derived from the 1984 Eddygate Housing Development Grant (#NY009HG401), and had an unobligated fund balance of approximately $755,583 as of July 31, 2025, and WHEREAS, per the HUD close-out agreement, HODAG proceeds may only be used to “support the construction, rehabilitation or operation of real property to be used primarily for low and moderate income residential rental purposes,” and WHEREAS, by prior IURA practice, the HODAG proceeds are primarily used to make loans to assist affordable rental housing projects that will be repaid to recapitalize the fund to enable the IURA to make additional loans for affordable housing projects, and WHEREAS, the proposed uses of project funds are: $4,000,000 Acquisition $3,561,600 Construction – hard costs $1,345,000 Construction – soft costs $935,000 Contingency $24,400 Grant administration $9,866,000 Total, and WHEREAS, the proposed construction phase sources of project funds are: $5,821,000 Community Preservation Corp. (CPC) Bridge Loan/Small Building Participation Loan (SBPLP) IURA Minutes September 4, 2025 Page 3 of 15 $2,445,000 Equity $1,000,000 Private Loan $300,000 Tompkins County Community Housing Development Fund (CHDF) grant $300,000 IURA HoDAG loan $9,866,000 Total, and WHEREAS, the proposed permanent phase sources of project funds are: $3,781,600 CPC – NYS SBLPLP Loan $1,350,000 NYS SBPLP “Non-Payment Loan” $2,445,000 Equity $1,500,000 Restore NY6 grant $489,400 NY Main Street Grant $300,000 Tompkins County CHDF grant $9,866,000 Total, and WHEREAS, positive risk factors include: 1. Developer team is experienced and have successfully renovated multiple properties in the surrounding area; 2. Loan repayment derives from Restore NY proceeds received by the City allowing for a short- term loan without long-term reliance on property performance; 3. Developer has closed on $1,000,000 private bridge loan; 4. Second mortgage on the property, corporate guarantee of Urban Core, LLC, UCC filings on Urban Core/Urban Encore LLC, and personal guarantees of both owners provide strong collateral backing; and WHEREAS, negative risk factors include: 1. The largest funding source (CPC/Small Building Participation Loan Program) has not been committed yet; 2. No construction contracts have been executed to date creating a risk that actual construction cost will exceed the construction estimate; 3. New York Main Street grant funding approval is pending; 4. Receipt of Restore NY funds to repay the IURA loan depends on compliance with all Empire State Development requirements and timely disbursements of funds; 5. If the financial guarantee is called under a default scenario, Urban Encore, LLC, Urban Core, LLC, and one of the owners lacks sufficient liquidity to repay the full loan. WHEREAS, the IURA’s independent loan analyst recommends approval of the loan with special condition for proof of financing and receipt of executed contracts with subcontractors prior to disbursement of loan funds, and WHEREAS, at its August 12, 2025, meeting, the IURA Economic Development Committee reviewed the loan application and the 2024 credit analysis prepared by Michael Thomas, Vice President, Harrison Studio, and recommend the following action; now, therefore, be it IURA Minutes September 4, 2025 Page 4 of 15 RESOLVED, the IURA hereby approves a loan from the HoDAG fund in accordance with the loan application, subject to the following terms: Borrower: Urban Encore, LLC Loan Amount: Up to $300,000 Project: Adaptive re-use project at 115-123 S. Cayuga Street, Ithaca, NY including creation of 18 upper-story apartments to be rented to low- and moderate-income households at rents affordable to a household earning 80% of Area Median Income (AMI), and Total Project Cost: $9,866,000 Projected Use of IURA Funds: Construction phase funding for the adaptive re-use project at 115-123 S. Cayuga Street, Ithaca, NY. Funds cannot be used towards any expenses, such as construction, covered by The Davis-Bacon Act that would trigger prevailing wage requirements. Term: Not to exceed 36 months, with loan due and payable in full upon receipt of Restore NY funds Amortization: Interest-only for the duration of the term. Interest Rate: 3.00% fixed for the full term. Repayment: Payment of interest-only until maturity when the full unpaid balance is due. Loan Collateral: 1. Mortgage lien on commercial property located at 115-123 S. Cayuga Street, Ithaca, NY (subordinate to CPC/SBPLP) 2. UCC security interest filing on all business assets of Urban Encore, LLC and Urban Core, LLC including equipment, inventory, furnishings, and fixtures now owned or hereafter acquired Personal Guarantor(s): John Guttridge and David Kuckuk, joint and several Loan Conditions: 1. Prior to disbursement of loan funds, Borrower shall provide IURA staff with proof of commitment for all funding sources. IURA Minutes September 4, 2025 Page 5 of 15 2. Prior to disbursement of loan funds, Borrower shall provide IURA staff with a budget of itemized construction subcontracts. 3. Prior to disbursement of loan funds, Borrower shall provide documentation of construction costs aligned with projected development costs satisfactory to the Director of Community Development such as signed contracts with select subcontractors (such as elevator, HVAC, Fire Protection) or a guaranteed maximum price from a qualified general contractor. Reporting: 1. Timely notice of any significant construction cost overruns and management’s plans to address costs to complete the project 2. Documentation of initial residential lease-up of 18 rental housing units to low- and moderate-income households at rents affordable to a household earning 80% And be it further, RESOLVED, that the Director of Community Development for the IURA is authorized to issue a Loan Commitment Letter in accordance with this resolution, and be it further RESOLVED, that the IURA Chairperson, upon the advice of IURA legal counsel, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried Unanimously: 5-0 B. HUD Entitlement Grants: Program Amendment #1 to 2024 HUD Action Plan — Reallocate $70,000 in Community Development Block Grant (CDBG) Program Funds from Economic Development Loan Fund to Cherry Street Sidewalks Hull explained that the Economic Development Committee proposed to move $70,000 from the Economic Development Loan Fund and direct the funds toward expanding the Cecil A. Malone Drive Pedestrian Improvement Project. The amendment would be beneficial to the project and help toward meeting the HUD spend-down requirements. Fleming moved, seconded by Graham: Program Amendment #1: 2024 HUD Action Plan – Cherry St. Sidewalk Segments WHEREAS, on July 25, 2025, the IURA adopted a CDBG Timeliness Work Out Plan (Work Out Plan) to ensure City of Ithaca CDBG funds are expended to comply with HUD regulations, and WHEREAS, a grantee is considered in compliance with the CDBG timeliness requirement if, 60 days prior (June 1) to the end of the program year (July 31), the balance in the grantee’s line of credit, plus IURA Minutes September 4, 2025 Page 6 of 15 the balance of program income on hand including any revolving loan funds, is not more than 1.5 times the most recent CDBG grant, and WHEREAS, the CDBG timeliness ratio as of June 1, 2025 was 1.61, approximately $70,000 short of meeting the 1.5 CDBG timeliness ratio, and WHEREAS, the Work Out Plan commits the IURA to evaluate the appropriate balance in the Economic Development (ED) loan fund to meet anticipated demand and identify back-up CDBG projects to meet the CDBG timeliness requirement, and WHEREAS, the Economic Development (ED) revolving loan fund has an unobligated balance of approximately $300,900 as of July 31, 2025, and WHEREAS, in recent years, the IURA has expended an average of $155,000 per year from the ED loan fund, and WHEREAS, unexpended ED revolving loan fund balance as of June 1st of each year counts against meeting the 1.5 CDBG timeliness ratio, and WHERAS, staff has consulted with City departments and grantee partners to identify potential back- up CDBG projects, and WHEREAS, City Engineering staff have identified a proposed time-sensitive project to expand the Cecil A. Malone Drive sidewalk project to include 664 linear feet of missing sidewalk segments on the 100 block of Cherry Street at an estimated cost of $70,000, and WHEREAS, filling missing sidewalk segments on the 100 block of Cherry Street will complete a continuous connected sidewalk network for Taber Street, the 100 block of Cherry Street, and Cecil A. Malone Drive connecting into the citywide sidewalk network, and WHEREAS, the 2024 HUD Action Plan allocates $160,000 for construction of approximately 600 linear feet of sidewalk along the 200 block of Cecil A. Malone Drive and $149,054.90 to the Economic Development Loan Fund activity, and WHEREAS, there is a time-sensitive opportunity to include the Cherry St. sidewalk into the existing construction contract for the Cecil A. Malone Drive sidewalk project at pre-defined unit prices, and WHEREAS, a Cherry Street sidewalk project is an eligible CDBG public facilities activity serving a low/mod income census block group service area (CT#1, BG#1 = 89.9% low/mod income), and WHEREAS, a reallocation of more than $25,000 of CDBG funds constitutes a substantial amendment to the Action Plan requiring a public hearing and Common Council approval per the City of Ithaca HUD Citizen Participation Plan, and IURA Minutes September 4, 2025 Page 7 of 15 WHEREAS, at its August 8, 2025 meeting, the Neighborhood Investment Committee reviewed this matter and voted in favor of using economic development funds to expeditiously complete Cherry St. sidewalks to the Cecil A. Malone Drive intersection, and WHEREAS, at its August 12, 2025 meeting, the IURA Economic Development Committee reviewed this matter and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby recommends Common Council approve a substantial amendment to the 2024 HUD Action Plan to reprogram $70,000 from the Economic Development Loan Fund activity to expand the Cecil A. Malone Drive Pedestrian Improvement project to install approximately 664 linear feet of missing sidewalk segments on the adjoining 100 block of Cherry Street to be carried out by the City of Ithaca, and be it further RESOLVED, that the IURA finds that the remaining balance of approximately $230,000 in the Economic Development Loan Fund is reasonably sufficient to meet anticipated demand for small business loans, and be it further RESOLVED, that upon Common Council approval of the above-referenced program amendment, the Director of Community Development for the IURA is authorized to issue a funding commitment letter in accordance with this resolution. Carried Unanimously: 5-0 C. Committee Chairperson Report None. VI. Neighborhood Investment Committee (NIC) A. HUD Entitlement Grants 1. Time Extension: CHT Sears Street Redevelopment (HOME 2023 & 2025) Contract Osterreich explained that the proposal was to extend the existing contract. Yarrow explained that Ithaca Neighborhood Housing Services, Inc. (INHS) is constructing modular homes for the first time on Sears Street for the purpose of building a high-quality home in a shorter time frame for less cost. The amount and timeframe of post-delivery construction work needed after delivery of the homes have been beyond what was anticipated. Fleming moved, seconded by Graham: Contract Modification – Time Extension for 2022 Project #5 & 2023 Project #4: “CHT Sears St. Development” (INHS) WHEREAS, the City of Ithaca’s HUD Entitlement 2022 Annual Action Plan (AAP) allocated $92,140 in HOME Investment Partnerships Program (HOME) funding for Project #5, “CHT Sears St. Development” and the 2023 AAP allocated $100,000 in HOME funding for Project #4, “CHT Sears St. IURA Minutes September 4, 2025 Page 8 of 15 Development,” to Ithaca Neighborhood Housing Services, Inc. (INHS) to construct a total of four permanently affordable CHT (Community Housing Trust) homes for first-time homebuyers earning <80% Area Median Income (AMI) at 117 & 119 Sears St., and WHEREAS, in a letter to the IURA Director of Community Development Nels Bohn, dated July 29, 2025, INHS requested an extension until April 30, 2026 (as revised) for both projects, due to delays arising from the financing timelines of the multiple funding sources, modular construction finish work, and the identification process for qualified homebuyers, and WHEREAS, HOME-funded projects are subject to a 24-Month Commitment Deadline requiring the Participating Jurisdiction to identify and commit funds to projects within two years of receipt of the HOME Grant Agreement, and WHEREAS, HOME-funded projects are subject to a 5-Year Expenditure Deadline, whereby the funded project must be completed within five years of the Participating Jurisdiction’s receipt of the HOME Grant Agreement, and WHEREAS, both 2022 Project #5 and 2023 Project #4 complied with the 24-Month Commitment Deadline; and WHEREAS, an extended completion date of April 30, 2026 for both 2022 Project #5 and 2023 Project 4 would comply with each project’s 5-Year Expenditure Deadline with an extended completion date, and Project HOME 24-Month Commitment Deadline IURA – INHS Contract Execution Date HOME 5-Year Expenditure Deadline IURA - INHS Contract Expiration Date (Original) INHS Contract Extension End Date (Proposed) 2022 Project #5 09/30/2024 04/12/2024 COMPLIED 09/30/2027 03/31/2025 04/30/2026 2023 Project #4 08/30/2025 08/2/2024 COMPLIED 08/30/2028 09/30/2025 04/30/2026 WHEREAS, any extension over 120 days must be reviewed and approved by the IURA Board, and WHEREAS, after review and discussion of the extension request with INHS staff at the August 8, 2025 meeting of the IURA Neighborhood Investment Committee (NIC), NIC recommended further extending the contract expiration for both 2022 Project #5 and 2022 Project #4 to April 30, 2026, now, therefore be it, IURA Minutes September 4, 2025 Page 9 of 15 RESOLVED, that the IURA hereby authorizes the Director of Community Development to modify the funding contracts by letter agreement for 2022 Project #5 and 2023 Project #4, “CHT Sears St. Development,” to extend the expiration date to April 30, 2026. Carried Unanimously: 5-0 2. Time Extension: Cleveland Avenue For-Sale Home (HOME 2022) Contract Osterreich explained that the extension is a different situation. Yarrow explained that the home is in the process of being completed. The adjacent grade to the home needed to be outside of the flood plain, so INHS had to build up the area around the house. Once the house is completed, INHS will contact FEMA to request a flood map amendment. The home will not be listed for sale until the flood zone issue is addressed. Hull moved, seconded by Graham: Contract Modification – Time Extension for 2022 Project #1: “215 Cleveland Avenue For-Sale Home” WHEREAS, the City of Ithaca’s 2022 HUD Entitlement Annual Action Plan (AAP) allocated $50,000 in HOME Investment Partnerships Program (HOME) funding for Project #1, “215 Cleveland Avenue For- Sale Home,” by Ithaca Neighborhood Housing Services (INHS), and WHEREAS, in a letter to the IURA Director of Community Development Nels Bohn, dated July 29, 2025, INHS requested an extension until September 30, 2026 (as revised) to allow for a Letter of Map Amendment (LOMA) to be approved by Federal Emergency Management Agency (FEMA) and for the homebuyer identification process to proceed, and WHEREAS, HOME-funded projects are subject to a 24-Month Commitment Deadline requiring the Participating Jurisdiction to identify and commit funds to projects within two years of receipt of the HOME Grant Agreement, and WHEREAS, HOME-funded projects are subject to a 5-Year Expenditure Deadline, whereby the funded project must be completed within five years of the Participating Jurisdiction’s receipt of the HOME Grant Agreement, and WHEREAS, 2022 Project #1 complied with the 24-Month Commitment Deadline, and WHEREAS, an extended completion date of September 30, 2026 for 2022 Project #1 will comply with the 5-Year Expenditure Deadline, and Project HOME 24-Month Commitment Deadline IURA – INHS Contract Execution Date HOME 5-Year Expenditure Deadline IURA - INHS Contract Expiration Date (Original) INHS Contract Extension End Date (Proposed) IURA Minutes September 4, 2025 Page 10 of 15 2022 Project #1 09/30/2024 04/12/2024 COMPLIED 09/30/2027 03/31/2025 09/30/2026 WHEREAS, any extension over 120 days must be reviewed and approved by the IURA Board, and WHEREAS, after review and discussion of the extension request with INHS staff at the August 8, 2025 meeting of the IURA Neighborhood Investment Committee (NIC), NIC recommended extending 2022 Project #1’s contract to September 30, 2026, now, therefore be it, RESOLVED, that the IURA hereby authorizes the Director of Community Development to modify the funding contract by letter agreement for Project #1, “215 Cleveland Avenue For-Sale Home,” to extend the expiration date for 2022 Project #1, “215 Cleveland Avenue For-Sale Home,” to September 30, 2026. Carried Unanimously: 5-0 B. Committee Chairperson Report None. VII. Governance Committee (GC) A. Independent Contractor: 1st Amendment to Minute-Taking Agreement Fleming explained that the request is to amend the contract with Express Employment Professionals to add $1,500 for additional minute-taking services and to annualize the contract. Fleming moved, seconded by Osterreich: 1st Amendment to Minute-Taking Services Agreement WHEREAS, in May 2023 the IURA authorized up to $5,000 to hire temporary staff support through Express Employment Professionals for temporary staff support for meeting management and minute-taking, and WHEREAS, IURA has utilized the service exclusively for minute-taking, and WHEREAS, IURA staff have been very satisfied with minute-taking services provided by Sarah R. Dean through Express Employment Professionals, and WHEREAS, IURA staff recommends the Agency contract for minute-taking services as an annual independent services contract with a March 1st anniversary date as is done for other independent contractor services, and WHEREAS, IURA staff projects the need to amend the existing contract to ensure sufficient funding to continue the service through to March 1, 2026, and IURA Minutes September 4, 2025 Page 11 of 15 WHEREAS, the current hourly rate for minute-taking services is $35.11, and WHEREAS, the 2025 IURA budget authorized up to $2,500 for minute-taking services, and WHEREAS, such minute-taking service is an eligible expense from CDBG and HOME administration funding, and WHEREAS, the IURA Governance Committee reviewed this matter at their July 25, 2025 meeting and recommended the following action; now, therefore, be it RESOLVED, the IURA Chairperson is authorized to execute a 1st amendment to the contract with Express Employment Professionals for up to $1,500 of additional minute-taking services, and be it further RESOLVED, staff is directed to annualize independent minute-taking services in alignment with other IURA independent contractor services that are reviewed by the IURA Governance Committee each January. Carried Unanimously: 5-0 B. City/IURA Collaboration Opportunities Fleming explained that the request is for IURA staff and City of Ithaca staff to identify and propose potential opportunities for further collaboration between the City and the IURA, such that the IURA will be compensated. Osterreich asked if a resolution is necessary. Bohn replied that in the agreement between the IURA and the City that authorizes the IURA to administer the grant program, a section was added in 2013 relating to collaboration, requiring the IURA to authorize City activities if an agreement for reimbursement or payment is made. This resolution authorizes the chair to do that as we advance, to be in fidelity with that original agreement, and provides a framework for approaching the City and working through some of these issues and seeing where there are opportunities. Fleming moved, seconded by Cantelmo: City/IURA Collaboration Opportunities WHEREAS, the IURA is experiencing a net operating deficit due to a steady erosion of federal HUD Entitlement grant funding support while facing annual inflationary increases in operating expenses, and WHEREAS, the President’s proposed FY2026 budget eliminated funding for both the CDBG and HOME program, and IURA Minutes September 4, 2025 Page 12 of 15 WHEREAS, the U.S. House Appropriations Subcommittee on Transportation and Housing & Urban Development (THUD) completed its markup of the FY26 budget that level-funds the CDBG program but allocates no funding for the HOME program, and WHEREAS, IURA management reviewed these general fiscal trends in the FY24 IURA audit and recommends a strategy to narrow the operating deficit and maintain current IURA capacity by increasing non-federal revenues derived from urban renewal projects involving the disposition of real property and seeking reimbursed fees for services rendered to the City, and WHEREAS, the City and IURA entered into a professional services agreement (City-IURA Agreement) for the IURA to administer the City’s HUD Entitlement grant program and assist in other activities that advance the IURA mission, and WHEREAS, section 12 of the City IURA Agreement states: Assistance with Other Activities 12.1 From time to time, IURA staff may have availability to assist the City with planning or other activities that are directly related to, or would support, the mission of the IURA to “improve the social, physical, and economic characteristics of the City of Ithaca by expanding access to quality affordable housing, strengthening neighborhoods and the local economy, and supporting other community development activities.” Toward that end, the IURA may offer, and the City may accept, by mutual agreement, IURA staff assistance with such activities. IURA staff will make best efforts to complete agreed upon tasks in a timely manner; however, activities related to administration of CPD funds will take priority and any consequent delay in completion of other activities will not be cause for termination of this agreement. WHEREAS, due to close alignment of City initiatives with the IURA mission and IURA skill sets, IURA staff routinely provides staff assistance on various City initiatives, and WHEREAS, IURA assistance on a variety of City-related projects is often, but not always, reimbursed for staff expenses incurred as shown in the table below: Activity/Project IURA Reimbursed Past/Ongoing City policy development regarding encampments on City property no past City implementation of encampment policy – development of navigation center and temporary camping at SW to support response protocol no ongoing City Facilities Master Planning – public safety facility acquisition no ongoing City Facilities Master Planning - General no ? Disposition of 309 College Avenue (East Hill Fire Station) yes past Disposition of 209 W. State Street yes ongoing Cayuga Garage fiscal management yes ongoing Green Garage Disposition and Redevelopment yes past IURA Minutes September 4, 2025 Page 13 of 15 Restore NY grant applications and administration (multiple rounds) no ongoing Cayuga Garage management yes ongoing Community Housing Development Fund – City support no ongoing Conference Center - Financial Oversight Committee no ongoing Continuum of Care – City representative and Co-Chair no ongoing Staff working group on 300 block of W. State Street – Mayor request no past CIITAP – IDA housing and construction labor committees no ongoing Inlet Island predevelopment Only upon sale ongoing Cherry Street urban renewal project predevelopment Only upon sale ongoing And, WHEREAS, the IURA incurs predevelopment expenses associated with urban renewal projects at Inlet Island and Cherry Street extension sites that are only reimbursed upon sale of property, and WHEREAS, the IURA Governance Committee discussed this matter at their July 25, 2025 meeting and recommended the following actions; now, therefore, be it RESOLVED, staff is directed to identify potential opportunities for City/IURA collaboration that provide IURA financial support to address the current and projected IURA operating deficit, and RESOLVED, that the IURA Chair is authorized to enter into agreements with the City to provide IURA staff assistance on City projects/activities that align with the IURA mission statement that include reimbursement of IURA staff expenses or predevelopment expenses. Carried Unanimously: 5-0 C. Committee Vice-Chairperson Report None. VIII. New/Other/Old Business A. HUD Entitlement Program: Contract Modifications — INHS CHT Homebuyer Eligibility Bohn explained that this is not a formal modification that needs approval. It would be beneficial for potential homebuyers to be defined the same in contracts and have the opportunity to apply for multiple opportunities. If approved, the definition would be that a person is income-qualified and is not on a deed as an owner of an existing home. IURA Minutes September 4, 2025 Page 14 of 15 Yarrow explained that the funding from New York State allows Ithaca Neighborhood Housing Services, Inc. (INHS) to assist those who do not meet the federal definition of a first-time homebuyer. The applicant must have first sold an existing, but does not have to wait a 3-year period to requalify. Fleming moved, seconded by Cantelmo: Contract Modifications - INHS CHT Homebuyer Eligibility WHEREAS, Ithaca Neighborhood Housing Services, Inc. (INHS) seeks to modify the definition of eligible homebuyers for IURA-assisted Community Housing Trust (CHT) homebuyer projects to remove the requirement that a homebuyer must be a “first-time” homebuyer, and WHEREAS, IURA has received IURA funding awards for the following CHT projects: • 113-119 Sears Street (4 single family units) • 215 Cleveland Ave (single family unit) • 113-115 Cleveland Ave (duplex), And WHEREAS, INHS’s funding applications to the IURA indicated homebuyers for IURA-assisted projects would be “first-time” homebuyers and IURA funding contracts include this requirement, and WHEREAS, INHS is currently marketing 14 CHT for-sale homes in the city of Ithaca and Trumansburg through a ranked choice lottery for matching homes with qualified applicants, and WHEREAS, a major funder for the Trumansburg CHT project has revised their rules to eliminate the need for an applicant to be a “first-time” homebuyer and replaced it with a requirement that “an applicant must not own a home at the time of application for assistance,” and WHEREAS, INHS seeks to market the homes with a common definition for an eligible homebuyer so applicants entering the lottery will be eligible for either City of Ithaca or Trumansburg homes, and WHEREAS, neither HOME nor CDBG regulations require homebuyers be “first-time” homebuyers, and WHEREAS, the Neighborhood Investment Committee is not scheduled to meet again to consider this matter until after the INHS lottery; now, therefore, be it RESOLVED, that the Ithaca Urban Renewal Agency hereby approves contract modifications to the INHS funding contracts for the above listed IURA-assisted Community Housing Trust projects to replace the requirement that an eligible income-qualified homebuyer be a “first-time” homebuyer with a revised requirement that an eligible homebuyer “must not own a home at the time of application for assistance,” and be it further RESOLVED, that the Director of Community Development is authorized to implement this resolution through a letter amendment agreement with INHS. IURA Minutes September 4, 2025 Page 15 of 15 Carried Unanimously: 5-0 B. Review of IURA Grant Summary: July 2025 Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule and may need attention. All loan payments are current. All lease payments are current. C. REPORTS: IURA Chair/Mayor, Common Council Liaison, & Staff IURA Chair/Mayor’s Report Cantelmo reported that on September 3, 2025, Governor Hochul announced the 9th round of the Downtown Revitalization Initiative (DRI). Common Council Liaison Report Nguyen reported that the Common Council approved the City’s portion of the Community Housing Development Fund allocation to the Sears Street Home. Overall, $1.3 million of assistance was assigned to 182 units of housing. Staff Report Bohn reported that Ithacan Residence currently has vacancies for rent at 80% of the area's median income. He added that the IURA is working on the Restore New York grant for the SouthWorks $2.9 million project, which has a revised scope and plan. Empire State Development approved an extension to December 31, 2026, and the project is moving toward financing and construction to occur in the next 12 months. IX. Adjournment The meeting was adjourned by consensus at 9:38 A.M. — END — Minutes prepared by S. Dean, edited by C. Pyott/N. Bohn.