HomeMy WebLinkAboutMN-IURA-2017-07-27Approved: 9/28/17
108 E. Green St.
Ithaca, NY 14850
(607) 274-6565
MINUTES
ITHACA URBAN RENEWAL AGENCY
Common Council Chambers, City Hall
8:30 A.M., Thursday, July 27, 2017
Members: Mayor Svante Myrick, Chair; Tracy Farrell; Karl Graham; Chris Proulx; Graham Kerslick
(Common Council Liaison)
Excused: Eric Rosario
Staff: Nels Bohn; Charles Pyott
Guests: None
I. Call to Order
Chair Myrick called the meeting to order at 8:32 A.M.
II. Agenda Additions/Deletions
No changes were made to the agenda.
III. Public Comment
None.
IV. Review of Draft Meeting Minutes: June 21, 2017
Graham moved, seconded by Proulx, to approve the June 21, 2017 meeting minutes, with no
modifications.
Carried Unanimously 4‐0
V. Neighborhood Investment Committee (NIC) Report
A. Request from Ithaca Neighborhood Housing Services (INHS) to Discharge 356 Floral Ave. Mortgage
Graham explained that INHS asked the IURA to formally discharge the 2004 mortgage on the 356 Floral
Avenue property. The original loan agreement between INHS and IURA required that the property
remain affordable until at least 2021, so INHS will maintain that period of affordability. The Committee
has no objections to the discharge.
Ithaca
Urban
Renewal
Agency
IURA Minutes
July 27, 2017
Page 2 of 8
Moved by Graham, seconded by Farrell:
HUD EnƟtlement Grant Program ― Discharge of INHS Mortgage at 356 Floral Ave.
(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” 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 convey the property to an affiliated entity
to 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 356 Floral Avenue upon the closing of financing for INHS
Scattered Site Rental Housing Preservation Project, and be it further
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 4‐0
IURA Minutes
July 27, 2017
Page 3 of 8
B. Ithaca Neighborhood Housing Services (INHS) Application for CHDO Designation
Graham explained that this the annual CHDO re‐designation for INHS. The Committee reviewed the
application, which appears to be in order and meets all the requirements. The only question that arose
at the Committee meeting was related to how some neighborhoods were classified as low‐income,
when it seemed they should perhaps not be. The Committee recommended approval of the
application.
Bohn emphasized that INHS complied with all the requirements of the process, even though it used a
different formula for identifying low‐income neighborhoods.
Moved by Graham, seconded by Farrell:
HUD EnƟtlement Grant Program ― 2017 DesignaƟon of INHS as 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 annually identify CHDOs 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 non‐profit 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
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
IURA Minutes
July 27, 2017
Page 4 of 8
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 and 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 4‐0
C. Amendment #1 to FY2017 Action Plan
Graham explained that the initial adopted version of the FY2017 Action Plan has now been amended to
reflect the withdrawal of the Lakeview Ithaca project (Lakeview Health Services, Inc.), the subsequent
reallocation of funds, and reduced HUD funding levels, which were less than the IURA anticipated
(especially for HOME funding). The Committee recommended adopting the amended Action Plan.
Bohn noted that he confirmed with both INHS and Habitat for Humanity of Tompkins & Cortland
Counties that they believe they have the capacity to implement their 2017 projects with the current
proposed IURA funding levels. INHS also confirmed it has been developing a proposed CHDO set‐aside
activity for the acquisition and rehabilitation of a foreclosed home at 828 Hector Street for
approximately $41,000.
Moved by Graham, seconded by Farrell:
2017 AcƟon Plan ― Program Amendment #1: Reallocate HOME Funds
Declined by Lakeview Health Services, Inc.
WHEREAS, the City adopted 2017 Action Plan allocated $50,000 in HOME funds to assist the
Lakeview Ithaca project, a 50‐unit affordable rental housing sponsored by Lakeview Health
Services, Inc., (Lakeview), and
WHEREAS, on June 22, 2017, Lakeview declined the HOME funding award for the project due to
regulatory requirements triggered by receipt of HOME federal funds, which are projected to
create both a financial and administrative burden far in excess of the $50,000 funding award,
and
WHEREAS, on June 26, 2017, the City received formal notice that its FY17 HOME award declined
by 16% from the anticipated amount, thereby requiring a pro‐rata funding reduction in all
HOME‐assisted projects, and
IURA Minutes
July 27, 2017
Page 5 of 8
WHEREAS, the Lakeview award declined to $43,708.16 from $50,000, and
WHEREAS, the HUD Citizen Participation Plan requires a public hearing and Common Council
approval for substantial amendments to the Action Plan, such as reallocation of over $25,000,
and
WHEREAS, at their July 7, 2017 meeting, the IURA Neighborhood Investment Committee
considered this matter and recommends reallocating funds awarded to Lakeview to restore
funding cuts to HOME‐assisted projects; now, therefore, be it
RESOLVED, that the IURA hereby recommends that the Common Council for the City of Ithaca
adopt program amendment #1 to the FY17 HUD Action Plan to reallocate HOME funding as
follows:
Project Name Sponsor Funding Change Final Funding
Lakeview Ithaca Lakeview Health Services Decrease:
$43,708.16
$0.00
402 S. Cayuga Street Habitat of
Tompkins/Cortland
Counties
Increase:
$10,066.95
$80,000.00
Housing Scholarship
Program
Learning Web Increase:
$8,253.89
$65,592.00
Security Deposit Assistance
2017‐18
Catholic Charities of
Tompkins/Tioga
Increase:
$5,379.52
$42,750.00
Unallocated HOME
Funds
Increase:
$20,007.80
$20,007.80
Carried Unanimously 4‐0
Approved: 9/28/17
Approved: 9/28/17
D. Committee Chairperson Report
Graham reported that IURA staff continues to move forward with its work on the City’s Assessment of
Fair Housing report. It has been meeting with various local stakeholder/advocacy and community
groups.
Graham indicated INHS submitted the application for its 828 Hector Street project (alluded to earlier in
the meeting) for the property’s acquisition, rehabilitation, and resale as an affordable home to first‐
time low‐to‐moderate income homebuyers. Graham disclosed that his employer, Alternatives Federal
Credit Union (AFCU), was the original mortgagee on loan, which was initially proceeding to foreclosure,
before the INHS proposal was developed.
VI. Other New/Old Business
A. Review of IURA Financials: June 2017
Bohn reported that the grants summary does not yet include 2017 projects, since the IURA has only
just recently submitted its 2017 Action Plan for HUD approval. All projects are generally on
schedule.
Bohn added that the IURA recently received a letter from HUD, notifying the IURA that it cannot
hold more than 150% of its grant ward as unexpended funds, which the IURA has now been
informed includes it Revolving Loan Fund (RLF) balance. The result is that the IURA now needs to
spend $251,000 by June 1, 2017. It does have a pending $200,000 loan disbursement, which will
help in that regard; but IURA staff is also trying to ensure its major public facilities projects will have
spent their funds by that time. The Economic Development Committee (EDC) has also been
examining the IURA’s loan policies to developing some strategies to expand and expedite the IURA’s
loan program.
Bohn reported that both IURA loan repayments and lease payments are generally on schedule.
B. IURA Chairperson Report
Myrick reported he attended the United States Conference of Mayors conference, which adopted a
resolution opposing the proposed 2018 Federal government budget (similar to a resolution passed
by Common Council). He also received a letter from U.S. Representative Tom Reed expressing
support for the CDBG program. Myrick noted that Common Council approved a resolution in favor
of restructuring the City’s boards and committees, which be placed on the ballot as a referendum in
the Fall.
C. Common Council Liaison Report
Kerslick remarked that City officials should ideally make an organized effort to explain to the public
the merits of restructuring the City’s boards and committees, prior to the referendum.
IURA Minutes
July 27, 2017
Page 8 of 8
D. Staff report
Bohn reported that the potential sale by Cayuga Green, LLC and The Lofts on Six Mile Creek, LLC of
their interests in the Cayuga Street parking garage, Cayuga Place, and The Lofts at Six Mile Creek has
now been placed on hold. The potential purchaser backed out; however, the sellers have now
identified another potentially interested buyer.
Bohn reported that the City recently presented its application for a $10M NYS Downtown Revitalization
Initiative (DRI) grant. The City should have some indication of the leading candidate by the end of July
2017. Another grant application is being submitted by the Downtown Ithaca Alliance (DIA) to the New
York Main Street Grant Program.
VII. Adjournment
The meeting was adjourned by consensus at 9:11 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.