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Home My WebLink AboutMN-IURAGOV-2019-10-22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY GOVERNANCE COMMITTEE (GC) 8:30 A.M., Tuesday, October 22, 2019 Third Floor Conference Room, City Hall, Ithaca, NY Present: Eric Rosario, Chairperson; Kathy Schlather, Vice‐Chairperson; Susan Cummings Excused: David Whitmore Vacancy: 1 Staff: Nels Bohn; Charles Pyott Guests: None I. Call to Order Chairperson Rosario called the meeting to order at 8:36 A.M. II. Agenda Additions/Deletions None. III. Public Comments (3‐minute max. per person) None. IV. Review of Meeting Minutes: July 19, 2019 Schlather moved, seconded by Cummings, to approve the July 19, 2019 meeting minutes, with no modifications. Carried Unanimously: 3‐0 V. New Business A. Proposed IURA 2020 Budget Bohn explained the vast majority of the proposed budget (85%) comprises personnel expenses. Bohn is recommending increasing the legal services budget, in anticipation of an upcoming Low‐Income Housing Tax Credits (LIHTC) project, which generally incur $5,000‐$10,000 in legal costs due to their complexity. Another budget increase is a 6% increase in healthcare premiums, along with a 2% increase in staff salaries, in line with the Consumer Price Index (CPI), which also happens to align with the City’s standard practice. Approved: 1/31/20 IURA GC Meeting Minutes October 22, 2019 Page 2 of 11 2 IURA GC Meeting Minutes October 22, 2019 Page 3 of 11 3 IURA GC Meeting Minutes October 22, 2019 Page 4 of 11 4 (continued on next page) IURA GC Meeting Minutes October 22, 2019 Page 5 of 11 5 IURA GC Meeting Minutes October 22, 2019 Page 6 of 11 6 Cummings asked if any progress had been made in the IURA’s joining the Greater Tompkins County Municipal Health Insurance Consortium. Bohn replied, unfortunately, the most recent bill did not get adopted by the New York State Assembly, but it will be resubmitted in 2020. Bohn added that the “#05 Non‐CDBG” account has remained stable, which will be important in case there are any unanticipated costs. The IURA is always looking for further revenue‐producing opportunities, like future urban renewal projects (e.g., Inlet Island). The IURA is also exploring the possibility of applying for an EPA brownfields planning grant, which could provide as much as $200,000 for environmental studies and related planning activities for certain projects. IURA GC Meeting Minutes October 22, 2019 Page 7 of 11 7 Schlather moved, seconded by Cummings: Adoption of FY2020 IURA Administrative Budget WHEREAS, the IURA desires to annually adopt an administrative budget to guide expenditures and manage financial resources of the IURA, and WHEREAS, New York State law governing public authorities requires submission of a proposed budget 60 days prior to the start of the next fiscal year, and WHEREAS, the IURA budget is due to be submitted to the New York State Authorities Budget Office (ABO) by November 1st of each year, and WHEREAS, the IURA Governance Committee reviewed this matter at their October 22, 2019 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby adopts the FY2020 IURA Administrative Budget, dated 10/15/19. Carried Unanimously: 3‐0 B. 2019 Action Plan ― CDBG Program Amendment #1: Adjust Funding Sources & Funding Amount for Immaculate Conception School Redevelopment Project Bohn explained that the proposed Program Amendment is minor. It was necessitated by an unanticipated $1,291.86 funding shortfall in the 2018 HOME CHDO Reserve fund. Cummings moved, seconded by Schlather: 2019 AcƟon Plan ― Program Amendment #1: Immaculate Conception School Redevelopment Project (Project #3) WHEREAS, the City‐adopted 2019 Action Plan allocated $200,000 in funding assistance to the Immaculate Conception School Redevelopment Project (“Project”) sponsored by Ithaca Neighborhood Housing Services, Inc. (“INHS”), and WHEREAS, the 2019 funding commitment is derived from the following sources: $97,022.70 – 2018 HOME CHDO Reserve funds $98,668.22 – 2019 HOME funds $4,309.08 – 2017 HOME CHDO Reserve funds $200,000.00 And, IURA GC Meeting Minutes October 22, 2019 Page 8 of 11 8 WHEREAS, only $95,730.84 is available from the 2018 HOME CHDO Reserve funds, creating a $1,291.86 funding shortfall, and WHEREAS, INHS recently remitted recaptured HOME funds from a 2009 Homeowner Rehabilitation Project #1 (604 S. Albany St.), which can provide $1,191.86 to make up for the funding shortfall for the Project, and WHEREAS, INHS supports total Action Plan funding for the Project at $199,900, and WHEREAS, a change in funding sources and a minor adjustment of $100 in total Project funding is a Minor Program Amendment that does not require a Public Hearing or Common Council approval, and WHEREAS, at its October 22, 2019 meeting, the IURA Governance Committee considered this matter and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby adopts Program Amendment #1 to the 2019 HUD Action Plan to revise funding sources and amounts for the Immaculate Conception School Redevelopment Project (2019 Project #3) as follows: $95,730.84 – 2018 HOME CHDO Reserve funds $98,668.22 – 2019 HOME funds $4,309.08 – 2017 HOME CHDO Reserve funds $1,191.86 – Recaptured Funds from 2009 Project #1 $199,900.00 Carried Unanimously: 3‐0 C. Amendment #1 to 2019 Legal Services Contract with Levene, Gouldin, & Thompson Bohn explained that the Cayuga Flats project received Low‐Income Housing Tax Credits (LIHTC), which required extensive IURA legal services. The resolution would ensure enough funding for legal services. Cummings moved, seconded by Schlather: Amendment #1 to 2020 Legal Services Contract with Levene, Gouldin, & Thompson, LLP WHEREAS, the IURA executed a contract for up to $2,000 of legal services from Richard Ruswick of Levene, Gouldin & Thompson, LLP that expires on February 28, 2020, and WHEREAS, Richard Ruswick is assigned to represent the IURA on loan financing for the Cayuga Flats project (formerly known as INHS Scattered Sites 2), and IURA GC Meeting Minutes October 22, 2019 Page 9 of 11 9 WHEREAS, the Cayuga Flats project has been allocated Low‐Income Housing Tax Credit which requires syndication and extensive IURA legal services, and WHEREAS, the borrower is required to fully reimburse IURA legal expenses for the project, and WHEREAS, the actual cost of IURA legal services will exceed the contract amount, and WHEREAS, the projected cost of IURA legal services on the Cayuga Flats project is projected to range between $5,000 and $10,000, and WHEREAS, at their October 18, 2019 meeting, the IURA Governance Committee reviewed this matter and recommends the following action; now, therefore, be it RESOLVED, that the 2019 legal services contract with Levene, Gouldin & Thompson, LLP be amended to increase the contract amount by $10,000 to account for legal services incurred on the Cayuga Flats project, and be it further RESOLVED, that IURA legal costs on the Cayuga Flats project be fully reimbursed by the borrower, and be it further RESOLVED, that the IURA Chair, subject to review by IURA legal counsel, is authorized to execute a contract amendment to implement this resolution. Carried Unanimously: 3‐0 D. Pilot IURA Rental Housing Affordability Monitoring Services ― Community Development Housing Fund (CHDF) Bohn explained the project would involve rehabbing the property and renting it to a household at an affordable rent. The owner would need to comply with the terms of a monitoring agreement to verify the eligibility of the tenant household. Cummings moved, seconded by Schlather: IURA Affordable Housing Monitoring Agreement WHEREAS, a for‐profit developer, Jerame S. Hawkins, was conditionally awarded grant funds through the Community Housing Development Fund (CHDF) to undertake a project to rehabilitate a three‐bedroom house located at 622 W. Clinton Street for use as affordable rental housing, and WHEREAS, the conditions for CHDF grant approval are:  the grantee must provide rental affordable housing for a minimum of 49 years to a household earning 80% or less of Area Median Income, and IURA GC Meeting Minutes October 22, 2019 Page 10 of 11 10  the grantee must enter into and comply with the terms of a monitoring agreement to verify eligibility of tenant household income levels and affordable monthly rental and utility costs, and WHEREAS, the IURA conducts similar income and rent verification of HOME‐assisted projects, and WHEREAS, without a IURA monitoring agreement the project will not move forward as a dedicated affordable housing project, and WHEREAS, facilitating expansion of the supply of affordable housing advances the City of Ithaca HUD Consolidated Plan and the IURA mission “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,” and WHEREAS, IURA staff time incurred to conduct annual monitoring can be offset by charging the grantee a fee for each application reviewed, and WHEREAS, the IURA is responsible to report results of income and rent verification to the funder, but is not responsible to enforce compliance, and WHEREAS, operational experience to conduct affordable housing monitoring will inform the IURA on whether an expansion of IURA monitoring services is a wise use of staff resources, and WHEREAS, at their October 22, 2019 meeting, the IURA Governance Committee considered this matter and recommends the following action; now, therefore be it RESOLVED, that the IURA hereby authorizes entering into an affordable housing monitoring agreement with the Jerame S. Hawkins to conduct income and rent verification for one rental housing unit located at 622 W. Clinton Street, and be it further RESOLVED, that the IURA Chair, subject to review by IURA legal counsel, is authorized to execute a contract to implement this resolution. Carried Unanimously: 3‐0 VI. Other Business A. Review of IURA Financials: September 2019 Bohn reported virtually all HUD Entitlement Program projects are progressing well, including prior slow projects. Only the following two projects are experiencing (temporary) delays at this time:  2018 Project 1: Neighbor to Neighbor Homeowner Rehab (CDBG)  2018 Project 18: Domestic Violence Center Renovation (CDBG) IURA GC Meeting Minutes October 22, 2019 Page 11 of 11 11 Bohn reported all loan repayments are current, except for the Finger Lakes School of Massage, which has been delinquent since the school’s recent much‐publicized management crisis. Bohn has asked for an update on the situation from the school. Bohn reported all lease payments are now current. B. IURA Strategic Planning Report ― Economic Development Loan Fund Unobligated Balance Bohn reported the Economic Development Loan Fund’s unobligated balance is lower than usual, mostly because the IURA is being required to return NYS CDBG Program Income funds to the State; however, it should be gradually replenished with loan and interest payments (e.g., forthcoming $400,000 GreenStar loan). C. IURA & Common Council Actions of Interest to Committee None. D. Staff Report Bohn reported the City audit was completed on time for the third year in a row. VII. Adjournment The meeting was adjourned at 9:30 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.