HomeMy WebLinkAboutMN-IURANI-2017-07-14Approved: 8/11/2017
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, July 14, 2017
Third Floor Conference Room, City Hall, Ithaca, NY
Present: Karl Graham, Chair; Tracy Farrell, Vice‐Chair; Fernando de Aragón; Teresa Halpert; Paulette
Manos
Staff: Nels Bohn; Anisa Mendizabal
Excused: None
Guests: Joe Bowes, Director of Real Estate Development, Ithaca Neighborhood Housing Services
(INHS)
I. Call to Order
Chair Graham called the meeting to order at 8:32 a.m.
II. Public Comment
None.
III. New Business
1. Request to Discharge Mortgage at 356 Floral Avenue
The INHS Mortgage Discharge Request was discussed as the first item of business. Mr. Bowes
described the reason for the request: INHS plans to rehab several units that INHS owns
around the City, including the property at 356 Floral Ave. This property has HOME mortgage
that is to be forgiven in three years. INHS has applied for financing for the rehabilitation work,
but cannot close on financing with a HOME mortgage on the Floral Avenue property. Thus,
INHS has made the request to discharge the mortgage early while keeping affordability and
rent restrictions on the property. Bowes further explained that the State of New York, which
would finance the rehabilitation projects, will put its mortgage on the property. The State’s
mortgage has an affordability period of 50 years. De Aragón asked what “discharge” means in
this context and Bowes responded that “discharge” means “forgive.” Bohn stated that the
property’s deed and other restrictions would still be in effect. Halpert asked if affordability,
under the HOME mortgage was going to end in 3 years. Bohn responded that yes, it would, so
this new situation allows longer affordability.
Ithaca
Urban
Renewal
Agency
2
Graham asked if IURA’s attorneys had reviewed the request. Bohn responded that IURA
attorney(s) would review the request if the committee approves the request and refers it to
them. Manos stated she would like additional language added to the resolution, indicating
that the regulatory agreement on the property would remain 9/26/21.
Moved by Halpert, with changes indicated, seconded by de Aragón.
HUD Entitlement Grant Program – Discharge of INHS Mortgage
at 356 Floral Avenue
(2004 HOME, Project #3, Floral Avenue Rental Housing Rehabilitation)
WHEREAS, the Ithaca Urban Renewal Agency (IURA) has been designated by the City of
Ithaca as the Lead Agency to develop, administer and implement the HUD Entitlement
grant program, including funds received through the Home Investment Partnerships
(HOME) program, and
WHEREAS, Ithaca Neighborhood Housing Services, Inc. (INHS) was awarded HOME
funding for IURA Project #3, “Floral Avenue Rental Housing Rehabilitation” #M‐04‐MC‐
36‐0515 in the City of Ithaca’s 2004 Action Plan, and
WHEREAS, on 12/22/05 the IURA issued a HOME deferred loan of $300,000 to INHS to
convert a vacant building located at 356 Floral Avenue into a six‐unit affordable rental
housing project subject to a 15‐year HOME affordability period that expires on
9/26/21, and
WHEREAS, on July 7, 2017, Ithaca Neighborhood Housing Services, Inc. (INHS)
submitted a request to discharge of the mortgage associated with 356 Floral Avenue as
a necessary step in order to begin its Scattered Site Rental Preservation Project, which
will renovate the apartments and retain affordability for 50 years, and
WHEREAS, discharging the mortgage does not release INHS from continuing to comply
with the affordability requirements contained in the loan agreement or terms of the
promissory note that will remain in place until 9/26/21, and
WHEREAS, at its July 14, 2017 meeting, the IURA Neighborhood Investment
Committee reviewed this matter and recommends the following; now, therefore be it
RESOLVED, that the IURA hereby authorizes the IURA Chair, subject to review by legal
counsel, to discharge the IURA mortgage held on t 356 Floral Avenue upon the closing
of financing for INHS Scattered Site Rental Housing Preservation Project , and be it
further
3
RESOLVED, the existing regulatory agreement, promissory note and deed covenant
contained in the IURA loan agreement requiring affordability shall remain in effect
through the remaining affordability period that expires on 9/26/21, and be it further
RESOLVED, that INHS shall be responsible for any 3rd party costs incurred by the IURA to
implement this resolution.
Carried Unanimously 5‐0.
2. INHS CHDO Application
The Committee reviewed the INHS Community Housing Development Organization (CHDO)
application. There were questions about the format of CDHO Board Composition Chart and
about whether the income range of some neighborhoods had changed. Bohn stated that
according to the American Community Survey (ACS) FY 2016 Low/Mod. Income Individuals
Estimates by Block Group, Fall Creek and the Northside Triangle qualify as low‐moderate
income, though since the requirement is 51%, Southside/Titus Flats/Lower West Hill at
.5099% no longer does. ACS is collected annually from 2% of the population. Ferrell
requested staff bring a map indicating neighborhood income levels to next meeting. Graham
noted the questions about the chart format notwithstanding, the Board Certification included
met the criteria.
Moved by Manos moved, seconded by Halpert:
HUD Entitlement Grant Program – 2017 Designation of INHS as a CHDO
WHEREAS, the Ithaca Urban Renewal Agency (IURA) has been designated by the City
of Ithaca as the Lead Agency to develop, administer and implement the HUD
Entitlement grant program, including funds received through the Home Investment
Partnerships (HOME) program, and
WHEREAS, grant recipients under the HOME program are termed Participating
Jurisdictions (PJs), and
WHEREAS, PJs must reserve not less than 15% of their HOME allocation for
investment in housing to be developed, sponsored, or owned by Community Housing
Development Organizations (CHDOs), and
WHEREAS, each PJ must identify annually CHDOs that are capable of carrying out
projects to address priority housing needs identified in the Consolidated Plan, and
WHEREAS, a CHDO is a specific type of community‐based nonprofit organization as
defined in 24 CFR §92.2, and
WHEREAS, a CHDO automatically qualifies as a Community Based Development
Organization (CBDO) per 24 CFR §570.204(c)(1)(iii), and
4
WHEREAS, a PJ may use HOME funds to provide special assistance to CHDOs,
including:
Project pre‐development loans;
Operating assistance;
Use of HOME project proceeds;
Capacity‐building assistance; and
WHEREAS, on July 11, 2017, Ithaca Neighborhood Housing Services, Inc. (INHS)
submitted materials documenting their qualification and requested renewal of their
designation as a CHDO and CBDO by the IURA, and
WHEREAS, at its July 14, 2017 meeting, the Neighborhood Investment Committee of
the Ithaca Urban Renewal Agency compared submitted materials against CHDO &
CBDO criteria and recommends the following; now, therefore be it
RESOLVED, that the IURA, acting in its capacity as the Lead Agency for the Participating
Jurisdiction of the City of Ithaca, hereby renews its designation of Ithaca Neighborhood
Housing Services, Inc. as a CHDO and CBDO for the 2017 Action Plan.
Carried unanimously, 5‐0.
IV. Review of Minutes: June 9, 2017
Moved by Halpert, seconded by De Aragón. Unanimously approved as written. Carried
unanimously 5‐0.
V. Other Business
A. IURA Grant Summary
The City received HUD’s FY17 award letter at the end of June, which included reductions to
anticipated funding. Materials created by Bohn to reflect changes to the 2017 Action Plan
Funding Projects were distributed. The CDBG award was 2.6% lower than anticipated while
the HOME award was 16% lower than anticipated. Additionally, Lakeview Ithaca notified IURA
staff to decline the awarded funding for 2017. As discussed in June, the Lakeview Ithaca
housing project encountered obstacles associated with the Uniform Relocation Assistance and
Real Property Acquisition Act requirement associated with the HOME funding for the project.
Lakeview Ithaca found the financial and administrative burden of complying with this rule and
timeframe too great, though Lakeview plans to continue with the project without IURA funds
and also intends to assist tenants with relocation. A substantial amendment to the 2017
Action Plan is necessary to redistribute funding awarded to Lakeview Ithaca (originally
$50,000; revised $43,708.16) among the other awardees.
5
Farrell moved to propose the substantial amendment to reallocate funding awarded to
Lakeview to restore anticipated funding to other HOME‐assisted projects included in the
Action Plan. De Aragón seconded. Carried unanimously 5‐0.
B. Assessment of Fair Housing (AFH)
Mendizabal reported on progress on AFH: The 2nd Amendment to the Citizen Participation
Plan was passed by the Planning and Economic Development Committee of Common Council
on 7/12/2017. The AFH Mapping Tools where posted to IURA website on 6/30/2017.
Mendizabal distributed a list of Stakeholder Consultations and outreach completed to date.
Karen Baer of the Tompkins County Office of Human Rights, Kathy Schlather of Tompkins
County Continuum of Care, and Alicia Plotkin of Law‐NY have agreed to join the Stakeholder
Advisory Group. Mendizabal is recruiting for other members. Graham offered to forward her
request to Community Leaders of Color (CLOC). Mendizabal has sent preliminary materials to
Stakeholder Advisory Group for feedback. Mendizabal has identified models from other
communities to draw questions from for focus groups and online survey. The online survey is
considered a form of consultation, it is not scientific. Committee Members requested
information about questions; Mendizabal will forward models to them. Halpert commented
that it would useful to develop a question regarding service animals. Mendizabal replied that
she would look for models and ask the Stakeholder Group. Mendizabal had anticipated
holding a public meeting the week of July 10; instead this will be scheduled when questions
are finalized. A pop‐up survey/resident interview opportunity has been scheduled for the
Spencer Road Neighborhood Association Block Party on Sunday, 7/13/2017. Committee
Members were interested in whether other Neighborhood Associations had been contacted.
Mendizabal reported, that yes, Fall Creek had also been contacted but she had not heard back
from them, and that the list of Neighborhood Associations on City’s website seemed to
include several that seemed to be defunct. Committee members offered suggestions.
C. Staff Report
1. CHDO Set‐Aside Proposal
INHS has submitted a proposal to purchase and renovate an existing home at 828 Hector
Street for sale to a low/mod income homebuyer. This project would qualify for CHDO set‐
aside funding. The proposal was distributed. De Aragón noted that the proposal included
boiler replacement. He wondered if INHS has considered heat pump technology, which can
reduce utility costs dramatically and be upgraded to solar. Halpert asked if it was known
whether asbestos or other HAZMAT would need remediation and whether there had been an
inspection. Other repairs itemized on the Scope of Work were discussed. Bohn explained that
the project aims to complete high‐cost repairs to ensure that a low‐to‐moderate income
homeowner does not need to incur them. Once completed, the property would go into the
Community Housing Trust. Graham disclosed that he is an employee of Alternatives Federal
Credit Union (AFCU) from which INHS would acquire the property, where it is in foreclosure.
This is the first he has learned of the project; he will determine whether there is a need for
him to recuse himself from decision‐making on it.
6
The Committee directed staff to seek answers from INHS to the questions asked. Committee
Members indicated they would visit the property independently and continue discussion at
the August meeting.
2. 2017 Action Plan
Manos asked about time frames for the Action Plan, AFH, and Consolidated Plan, given the
reduction of available funding. The AFH must be completed by November 4, 2017, 270 days
before the submission of the next Consolidated Plan, which is due in 2018. Bohn also
explained that HUD notified PJs that they must wait for award letters before submitting
Action Plans and, once distributed, further notified PJs that they could not extend the
deadline of 8/16/2017 for Action Plan submission. Staff will submit the 2017 Action Plan next
week, which will be followed up with a proposed substantial amendment to Common Council.
The amendment will then also be submitted to HUD.
3. Miscellaneous
a. Farrell commented that she would like to hear a brief report on 1‐2 funded projects per
meeting, in order for the NI Committee to stay updated on how programs are progressing.
Mendizabal stated that she visited the job readiness and placement programs supported
by IURA recently. HETP held graduation in June and thanked IURA for funding; HETP has
opened application process for its next cycle. Mendizabal will prepare brief program
reports in the future.
b. Amendment to Staff Report: Bohn reported that the City submitted its application for the
Governor’s Downtown Revitalization Initiative (DRI). Graham asked how proposed
projects were identified. Bohn replied that Downtown Ithaca Alliance (DIA) took the lead
updating last year’s proposal, with input from City staff. Director of Planning and Building
Joann Cornish and IURA brought in Green Street Parking Garage and HETP.
VI. Motion to Adjourn
The meeting was adjourned by consensus at 9:52 a.m.
Prepared by A. Mendizabal, reviewed by N. Bohn.