HomeMy WebLinkAboutMN-IURANI-2017-03-10Approved: 4/7/17
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MEETING MINUTES
ITHACA URBAN RENEWAL AGENCY (IURA)
Neighborhood Investment Committee (NIC)
8:30 AM, Friday, March 10, 2017
Third Floor Conference Room, City Hall, Ithaca, NY
Present: Karl Graham, Chair; Tracy Farrell; Vice‐Chair; Fernando de Aragón; Teresa Halpert
Staff: Nels Bohn; Charles Pyott
Excused: Paulette Manos
Guests: None
I. Call to Order
Chair Graham called the meeting to order at 8:35 a.m.
II. Public Comment
None.
III. Review of Minutes – January 13, 2017
Moved by Farrell, seconded by Halpert. Unanimously approved as written. Carried
Unanimously 4‐0.
IV. 2017 HUD Entitlement Grant Program
1. Community‐Based Development Organization (CBDO) Certification Applications
A. Historic Ithaca, Inc.
Bohn referenced members to the evaluation memo and explained the application is very
similar to Historic Ithaca’s 2016 application. The aspect of the application with potentially
the greatest risk associated with it is that Historic Ithaca’s 501(c)(3) articles of
incorporation do not explicitly list community development as a goal of the organization;
they reflect more of an historic preservation focus. The organization’s strategic plan,
however, does include many specific community outreach and development activities,
including job training and placement. He noted in past years the IURA has found HI to
meet the “substantially similar” test for meeting the CBDO organizational purpose
requirement.
Ithaca
Urban
Renewal
Agency
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Moved by Farrell, seconded by de Aragón:
2017 IURA Designation of Historic Ithaca, Inc. as
Community‐Based Development Organization (CBDO)
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;
community economic development;
energy conservation project; and
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WHEREAS, at their March 10, 2017, 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”.
Carried Unanimously 4‐0
B. Greater Ithaca Activities Center, Inc. (GIAC)
Graham disclosed that Alternatives Federal Credit Union (AFCU) has staff who are paid to
provide financial education services to GIAC’s Hospitality Employment Training Program
(HETP).
Bohn noted that in recent years GIAC struggles to meet CBDO board membership
requirements. The GIAC application identifies five of nine board members meeting the
CBDO qualifications. He explained that the GIAC bylaws require a minimum of 11 board
members, so 6 qualifying board members are required to meet the 51% CBDO board
composition requirement. He noted that GIAC is actively recruiting board members.
Farrell recommended that the applicant be asked for additional information regarding
Board members being recruited prior to making a CBDO determination.
Halpert suggested the Committee consent to approving the application, contingent on
Bohn and Graham being satisfied with the GIAC board’s composition.
De Aragón recommended Bohn report back to the Committee at its next meeting. No
objections were raised.
2. Review of 2017 IURA Funding Applications
Bohn indicated Committee members should disclose any potential conflicts of interest
regarding the applications, at this time.
De Aragón disclosed he is an Ithaca Carshare board member. His employer, the Ithaca‐
Tompkins County Transportation Council, also works regularly with TCAT. He is co‐chair of the
Latino Civic Association of Tompkins County, which is donating funds to the Food
Entrepreneurship program.
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Graham reiterated his aforementioned potential conflict of interest with HETP. In addition,
AFCU may be providing financial and entrepreneurial services to the Food Entrepreneurship
program; and it also provides funding for the 2‐1‐1 program’s tax preparation activities.
Bohn indicated Committee members should identify any questions and issues they may have
regarding the applications for the IURA Board.
Farrell observed the Economic Development applications ask applicants if they operated the
same program in prior years and what the outcomes were. She suggested other types of
applicants should be asked the same questions.
(1) Lakeview Ithaca ― Lakeview Health Services: Housing Application
De Aragón observed there appears to be a budget table missing from the application. Bohn
replied he will ask the applicants to provide it.
Bohn indicated the IURA could conceivably commit HODAG funds to the project, contingent
on it being funded with HOME funds within a couple of years. HOME or HODAG funds could
also potentially be disbursed as a repayable loan. Alternatively, the IURA could fund the
project through a combination of HOME and HODAG funding sources; however, that would tie
up those HODAG funds for one or two years.
Farrell indicated she would be in favor of funding the project, although the IURA should ask
the applicants if funding the project as either a loan or a grant would affect their funding
applications to other potential funders.
Halpert noted affordable housing is a high priority for the IURA.
De Aragón suggested, if the applicants only need to show local financial support, perhaps the
IURA could only fund $150,000, rather than $250,000.
(2) Chartwell House ― Tompkins Community Action: Housing Application
Bohn explained that he had encouraged the applicants to apply, but he had been expecting to
see some matching funding. He noted since it is a rehabilitation project, it would be eligible
for either CDBG or HOME funding.
De Aragón noted it is a large amount of money; perhaps the project could be divided into
several smaller projects (e.g., HVAC portion would probably be the most critical). Graham
agreed.
Farrell agreed. She remarked it is important to help preserve the building, since it is one of
the few SRO facilities in the city.
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Bohn indicated the IURA could ask the applicants what their funding priorities are.
(3) Homeowner Rehab ― Ithaca Neighborhood Housing Services (INHS): Housing
Application
Bohn noted the IURA funds the program almost every year. There always appears to be a
need for homeowner rehab services in the city.
Halpert asked what the consequences would be if the IURA skipped funding the program for
one year. Bohn replied the IURA has done that before. INHS appears to be adept at
identifying other funding sources.
Farrell remarked the program both serves to keep homeowners in their homes and preserve
the city’s housing stock. It is also scalable, since funds go towards construction and not
administrative overhead. It seems an effective way for the IURA to spend its money.
(4) 402 S. Cayuga Street ― Habitat for Humanity: Housing Application
Graham indicated he strongly supports the project.
Halpert asked if there were any way to make the project long‐term affordable, like INHS
projects. Bohn replied that Habitat employs deed restrictions with its projects; and it expects
the duplexes will sell at an affordable price.
(5) Housing Scholarships ― The Learning Web: Housing Application
Bohn noted the IURA skipped funding the program in 2016 as unexpended funds were
sufficient to carry the program through October 2017. The applicant will need the funding to
continue the program.
Farrell noted the project appears to be scalable, to some extent. Bohn replied the IURA
should ask the applicants to what extent that may be the case.
(6) Security Deposit Assistance ― Catholic Charities: Housing Application
Bohn explained that IURA staff asked the applicants to include funding for five Housing for
School Success program beneficiaries this year, so the requested funding amount is a little
higher than last year.
De Aragón observed this application appears to be one of the most scalable.
(7) Mini‐Repair ― INHS: Housing Application
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Bohn noted this program could potentially be something INHS could find funding for itself,
though it aligns closely with IURA objectives to maintain homeownership as it assists low‐
income homeowners age in place.
Farrell asked how many program beneficiaries are repeat beneficiaries. Bohn replied, he
believes none within any given year; however, over the years a certain proportion could be
expected to be repeat beneficiaries. He added the program caters primarily to elderly,
independent‐living single people.
Farrell and Graham both expressed support for the program. Farrell suggested possibly
funding it at a lower level this year.
(8) Hospitality Employment Training Program (HETP) ― GIAC: Economic Development
Application
Farrell noted the program appears somewhat scalable.
Bohn explained the application establishes an entirely new cohort of beneficiaries this year,
for administrative jobs.
Farrell expressed uncertainty about how many cohorts the program would be training. Bohn
replied the IURA could ask the applicants for clarification on that point.
Farrell indicated the applicants should probably be at a point in the development of the
program where they can rely more on other sources of funding.
Graham observed it does appear to have been improving in that respect, from year to year.
Bohn noted the program has done well in terms of job placements, which is important. It is
particularly good at intake and recruitment and placement.
De Aragón expressed support for the program, which seems to be working well.
(9) Ithaca ReUse Center Expansion ― Finger Lakes ReUse: Economic Development
Application
De Aragón indicated he would like to see if the applicants will receive funding from other
sources, before committing IURA funds.
Bohn replied that the project is probably the furthest from securing other funding sources, of
all the applications.
Farrell suggested funding only a portion of the project.
Halpert remarked that for the IURA to fund even only 1% of the project would represent a
considerable amount of this year’s available IURA funds.
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Bohn noted it would be very helpful if the IURA could ascertain from the applicants what the
anticipated timeline is for securing the other funding sources.
De Aragón wondered if the IURA’s funding $100,000 of the project would genuinely make a
significant difference in facilitating the entire project.
(10) Gianellis Child Care Center ― Tompkins Community Action: Economic Development
Application
Halpert observed that creating childcare is actually relatively low on the IURA’s list of Priority
Needs. Bohn agreed, but noted that job creation is a high priority.
Bohn explained that the funding could be in the form of a repayable loan, which is a desirable
way to utilize program income. He added that, while the application only lists 3 jobs created,
the project would actually probably create 21 jobs.
(11) Work Preserve: Job Placements ― Historic Ithaca: Economic Development Application
Bohn explained that the application is paired with another application for job readiness, like
last year. It is not entirely clear if either part of the program could function independently of
the other. It receives referrals from other local organizations for people who need
considerable more job‐readiness training than most, so it is beginning from a baseline that
requires a large amount of time and labor. The program has been reasonably successful,
although it is a fairly expensive program, weighed against the outcome.
Farrell observed the funding request goes mostly towards salary costs, so it is not scalable.
Halpert noted the program benefits people who are very difficult to employ, which is
impressive.
(12) Food Entrepreneurship ― Cornell Cooperative Extension:‐ Economic Development
Application
Halpert expressed strong support for the application.
Bohn noted the program should be viewed as augmenting its beneficiaries’ income, not
serving as their exclusive source of income, in most cases. Working with low‐income
entrepreneurs can be particularly challenging, but the applicants certainly appear have
identified how to solve many of those kinds of problems.
Graham expressed support for the application.
Farrell expressed some ambivalence about the application.
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De Aragón expressed support for the application. The applicants appear to have lined up a
considerable number of resources to ensure the program’s success.
De Aragón noted, if the applicants plan on returning to the IURA for more funding in 2018,
they should be asked to develop a robust program evaluation process.
(13) Urban Bus Stop ― TCAT: Public Facilities‐Infrastructure Application
Farrell expressed reluctance to fund the project.
De Aragón suggested the applicants modify their application to target it to a more limited area
of the city.
Bohn remarked he has been searching for ways to benefit residents of the West Village and
lower West Hill, since there are considerable numbers of low‐income people in those areas of
the city, and yet CDBG funding has generally not reached them in the past. He added the City
Sidewalk Improvement Program’s 2017 workplan includes Chestnut Street and Elm Street,
which are also a focus of the application, so there would be some advantage to coinciding the
two projects.
(14) Heating & Roofing ― Downtown Ithaca Children’s Center (DICC): Public Facilities‐
Infrastructure Application
Farrell expressed support for funding a portion of the project. De Aragón agreed; perhaps the
roofing portion of the project would make the most sense to fund.
(15) Conley Park Pavilion ― Daniel Krall: Public Facilities‐Infrastructure Application
Farrell expressed support for the application.
(Farrell departed at 10:31 a.m.)
V. Other Business
1. IURA Grant Summary Report: February 2017
(No discussion.)
2. Staff Report
Bohn reported the final set of interviews was conducted for the vacant Community
Development Planner position, with two candidates rising to the top.
Bohn reported there is a growing financial question as a result of the draft 2018 Federal
budget, which appears to eliminate CDBG funding and some HOME funding, representing 40%
of the IURA’s budget.
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3. Next Meeting Date
It was agreed to schedule a special Committee meeting on Friday, March 17, 2017, to review
the remaining funding applications.
VI. Motion to Adjourn
The meeting was adjourned by consensus at 10:43 a.m.
Prepared by C. Pyott, edited by N. Bohn.