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HomeMy WebLinkAboutMN-IURANI-2015-04-10 108 East Green Street Ithaca, New York 14850 (607) 274-655 MINUTES IURA Neighborhood Investment Committee April 10, 2015 I. Call to Order The meeting was called to order at 8:29 by Chair T. Farrell. Present were: T. Farrell, K. Graham, T. Halpert, and L. Truame (staff). J. Cornish (staff) and F. deAragon arrived at 8:34. II. Public comment None. III. Review of Minutes – February, 2015; March 2015. T. Halpert moved, K. Graham seconded. Approved as written. IV. New Business 1. INHS request for increased bond funding, 203 Third Street P. Mazzarella attended to present the request and respond to questions. He walked through the budget and discussed which lines had increased and the reasons for the increases. The largest change is the approximately $50,000 increase in construction cost. The full $60,000 increase in bond funds that is requested is not critically necessary for the project to go forward, INHS will find a way to fill the remaining gap, but they do need some increase in the bond funds to keep the project affordable. K. Graham asked about the demographics of the typical buyer of a 2 bedroom house. P. Mazzarella replied that most often the buyer would be a female in her 30s, with or without a child; sometimes a couple. Recently, they have also sold units to older single who have been long time renters. INHS is having a great deal of trouble finding contractors to build these houses at a cost they can afford. It’s unclear why this is the case, but it may simply be because the market is so active and contractors (both large and small) are so busy. There was a discussion of the developer fee amount. INHS has a board-adopted standard for this (12% of construction cost), to ensure the organization’s financial viability over the long term. Developer fees are INHS’ biggest source of income. T. Halpert moved, F. deAragon seconded: NHI Bond Program Assistance to INHS for 203 Third Street Project WHEREAS, on September 5, 2014, Ithaca Neighborhood Housing Services, Inc. (INHS) received a commitment of up to $49,417 in Neighborhood Housing Initiative Bond Program (NHI) funds from the Ithaca Urban Renewal Agency Ithaca Urban Renewal Agency for the construction of a single-family Community Housing Trust home at 203 Third Street, Ithaca, NY, (the Project) and WHEREAS, since the time of that commitment, certain changes to the project have occurred, namely: • The receipt of three qualified bids for construction of the project, each of which exceeds the amount budgeted for construction; and • An increase in the total project budget from $210,752 to $274,052, as detailed on the attached line-item budget comparison, and, WHEREAS, as a result of these cost increases, INHS has requested that the IURA increase its subsidy to the project from the original amount of $49,417, to $109,417; and WHEREAS, in all other respects the project remains unchanged since the IURA committed the requested financial assistance on September 5, 2014; and WHEREAS, the NHI source currently has an available balance of funds totaling $252,048; and WHEREAS, the IURA wishes to support the 203 Third Street project to the extent necessary, while minimizing the NHI subsidy to the extent possible; and WHEREAS, INHS’ request for additional NHI funding was discussed at the April meeting of the IURA Neighborhood Investment Committee, which recommends the following action; now therefore be it resolved RESOLVED, the IURA hereby approves an increase in NHI funding to INHS for the 203 Third Street project in an amount not to exceed $50,000, resulting in a total NHI award to the project of an amount not to exceed $99,417. RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried unanimously. K. Graham asked if there were asset limits on INHS’ homebuyer program. P. Mazzarella replied that INHS has turned people down for the program who have large assets but low income. 2. Request for assignment of mortgage, 401-403 Adams Street and 636, 638, 640 Spencer Road (CHI) S. Staniford, R. Marcus (Mr. Staniford’s attorney), and C. Guttmann attended to present the proposal. S. Staniford discussed his motivation for pursuing the project as part of his Viridius Properties portfolio; he is seeking to help address climate change through conversion of rental properties (both commercial and residential) to utilize renewable energy. Viridius has been in discussions with CHI for about 6 months and recently arrived at agreeable terms for the acquisition. S. Staniford acknowledged that he has no experience with managing affordable housing, so he has contracted with CHI to provide him with consulting assistance for six months. T. Farrell asked about the technology of mini splits, which S. Staniford explained. T. Farrell asked about pellet boilers and her concerns about potential emissions. S. Staniford explained that pellet boilers differ significantly from wood burning stoves, running much cleaner and producing very little ash. Pellet boilers are a new technology in this area – Viridius put in the first one in Tompkins County (on Snyder Hill Road). They have one at their Aurora Street property now. J. Cornish asked about the maintenance requirements of pellet boilers. S. Staniford indicated that ash must be removed every 3 weeks. Viridius has a maintenance staff of four; they also have one office manager. F. deAragon asked whether Viridius has the management capacity that CHI admits they do not themselves have. S. Staniford responded that they are well set up for financial management. L. Truame offered to have IURA Contract Monitor Rene Funke train their office manager. S. Staniford replied that he would welcome that. C. Guttmann indicated they only rent to Section 8 because it’s easier to ensure they are in compliance with affordability requirements. Moved by K. Graham, seconded by T. Halpert: Assignment of Mortgages: 401, 403 Adams Street and 636, 638, 640 Spencer Road WHEREAS, in 2005, 2006, and 2009, Community Housing of Ithaca (CHI) received funding from the Ithaca Urban Renewal Agency to develop certain affordable housing units to be located in the city of Ithaca, NY, as follows: • 2005 HUD HOME Entitlement Program, Project #4, Adams Street Housing, 401 and 403 Adams Street o Amount: $180,000 o Interest rate: 0% o Term & repayment: twenty-one (21) year term deferred loan with no principal or interest payments due, provided borrower remains in compliance with terms and conditions of loan o Collateral: 2nd lien mortgage on subject property • 2006 HUD HOME Entitlement Program, Project #2, Spencer Road Affordable Housing, 634 and 636 Spencer Road o Amount: $250,000 o Interest rate: 0% o Term & repayment: minimum twenty (20) year deferred loan with no principal or interest payments due, provided borrower remains in compliance with terms and conditions of loan o Collateral: 2nd lien mortgage on subject property • 2009 CDBG-R, American Recovery and Reinvestment Act, Spencer Road Affordable Housing Project, phase II, 638 Spencer Road o Amount: $196,868.70 o Interest rate: 0% o Term & repayment: fifteen (15) year term deferred loan with no principal or interest payments due, provided borrower remains in compliance with terms and conditions of loan o Collateral: 2nd lien mortgage on subject property and, WHEREAS, pursuant to Section 6.02 of the loan agreements for each of these projects, CHI has requested approval to assign its rights, interests, and obligations under these loans, including its obligations with respect to low- and moderate-income benefit, to Mr. Stuart Staniford or an LLC established by Mr. Staniford for purposes of this project, and WHEREAS, this request to assign was discussed at the April meeting of the IURA Neighborhood Investment Committee, which recommends the following action; now, therefore, be it RESOLVED, the IURA hereby approves the requested assignment, subject to the terms and requirements of Section 6.02 of the loan agreements, with the following conditions: • IURA approval of customary background and credit information regarding the prospective assignee • Agreement by the assignee to assume all of CHI’s obligations under the Agreement including, but not limited to, the obligations with respect to low- and moderate-income housing, and be it further RESOLVED, that the IURA Chairperson, upon the advice of the IURA Attorney, is hereby authorized to execute all necessary and appropriate documents to implement this resolution. Carried unanimously. 3. Draft Action Plan T. Farrell discussed the differences between the Draft Action Plan as adopted and the plan recommended by the NI Committee. The Youth Farm Project presentation was weaker than their application had been, and the ED Committee strongly supported the FL ReUse proposal. There was a general discussion of the YFP and how their application might be strengthened for next year’s round. J. Cornish suggested we ask YFP to track outcomes for their graduates – where have they gone, what have they done. L. Truame will make that suggestion to the YFP. 4. Introduction of housing stability program idea L. Truame presented the BJM Housing Stability Program idea and recapped discussions she’s had about the idea to date. A general discussion ensued. The Committee expressed support for the program. K. Graham suggested linking up with the Village at Ithaca. T. Farrell will report on the proposed program to the full Agency at their April 23 meeting. V. Old Business 1. SSCC security camera project L. Truame reported that SSCC received the updated proposal for the system, which came in within the available funds. She will pursue two additional quotes and get the procurement process started. There was a brief discussion of issues on West State Street related to the emergency shelter. VI. Motion to Adjourn The meeting was adjourned by acclamation at 10:00.