Ithaca Urban Renewal Agency. I. Call to Order. Changes/additions to Agenda. Public comment. IV. Review of Minutes January 12, 2017

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1 18 East Green Street Ithaca, New York 1485 (67) Ithaca Urban Renewal Agency I. Call to Order AGENDA IURA Neighborhood Investment Committee (NIC) 8:3 am, Friday, February 9, 218 Third Floor Conference Room City Hall, 18 E. Green St., Ithaca, NY 1485 II. III. Changes/additions to Agenda Public comment IV. Review of Minutes January 12, 217 V. New Business 1. Proposal for 42 S. Cayuga Street site 2. Employer Assisted Housing (EAH) Overview and Examples 3. Review AFH Data on Labor Market Engagement and Proximity to Work VI. VII. Other Business 1. IURA Grant Summary 2. Staff Report a. HUD Updates b. Program Updates 3. Next meeting date: March 9, 218 Motion to Adjourn If you have a disability and require accommodations in order to fully participate, please contact the IURA at at least 48 hours prior to the meeting.

2 18 East Green Street Ithaca, New York 1485 (67) Ithaca Urban Renewal Agency DRAFT MINUTES IURA Neighborhood Investment Committee (NIC) 8:3 am, Friday, January 12, 218 Third Floor Conference Room City Hall, 18 E. Green St., Ithaca, NY 1485 Present: Karl Graham, Chair; Tracy Farrell; Vice Chair; Fernando de Aragón; Teresa Halpert; Paulette Manos Staff: Anisa Mendizabal Excused: None Guests: None I. Call to Order Chair Graham called the meeting to order at 8:35 a.m. II. III. Changes/additions to Agenda None Public comment None IV. Review of Minutes December 8, 217 Moved by Farrell, seconded by de Aragón. Approved as written. Carried unanimously. V. New Business 1. Discussion of Request for Proposals City of Ithaca 218 HUD Entitlement Program Mendizabal distributed a chart with expected outcomes through the end of Program Year 217. Discussion ensured regarding affordable housing goals. Outcomes as reported to HUD do not reflect the power of leveraged funds. IURA s early commitment to many affordable housing projects that have occurred within the Con Plan cycle has proven beneficial in gaining further financial support for these projects.

3 Mendizabal pointed to out that Lakeview Mental Health s affordable housing development was a funded project for PY217, however, due to insurmountable burdens in meeting some federal regulations, Lakeview ultimately declined the award. This project is proceeding and will ultimately produce affordable units, albeit without entitlement funding. The Committee directed staff to provide information regarding the actual number of affordable housing units built in Ithaca during the Con Plan cycle and the number of projects that utilized HUD Entitlement Funding. Discussion turned to the City s low homeownership rates and high housing costs. The benefits and possible unintended consequences of inclusionary zoning were discussed. Halpert reported that nationally, 5 7 return on investment is seen as good by developers. Mendizabal circulated and analysis City of Burlington, VT inclusionary zoning program published in January 217, which includes scenarios for adjusting its IZ policies. Halpert and de Aragón noted the value of employer sponsored workforce housing. Mendizabal will look for current examples of employer sponsored workforce housing for transferrable lessons. 2. Resolution Technical Correction to Promissory Note for 215 Action Plan Project #1 21 Hancock Street Project #1 21 Hancock (Action Plan 215) Technical Correction to Promissory Note WHEREAS, Ithaca Urban Renewal Agency (IURA) provided Ithaca Neighborhood Housing Services (INHS) with $12, in financial assistance in the form of a construction loan on June 3, 216 to support Action Plan 216 Project #1 21 Hancock, and WHEREAS, an error in the language of the Promissory Note between IURA and INHS results in incorrect calculation of the late fees imposed as five percent (5) of total annual payment instead of five percent of total monthly payment, and WHEREAS, this matter has been reviewed and by the Neighborhood Investment Committee of the IURA who recommends the following; now therefore, be it RESOLVED, that the Neighborhood Investment Committee of the IURA hereby recommends the IURA approve a correction to the executed promissory note for the construction loan of Project #1 21 Hancock (Action Plan 216) to establish late fees that are calculated at 5 of the total monthly payment. Moved by Farrell, seconded by Manos. Carried Unanimously 5. VI. Other Business 1. IURA Grant Summary The Committee reviewed progress of projects to ensure all were on track to meeting HUD s spend down requirements.

4 2. Staff Report a. HUD Updates The Committee discussed HUD s suspension of the AFFH Rule. Mendizabal reported the goals articulated in the City of Ithaca s Assessment of Fair Housing (AFH) will be incorporated into the Consolidated Plan, as planned. Mendizabal has verified with HUD Buffalo that the Con Plan cycle is due June 16, 219, not 218, as previously stated. Therefore, Con Planning will begin in earnest in Fall 218. Mendizabal reported that starting January 1, 218, the HUD CPD Field Representative to our community will be Alex Velardo. Mr. Velardo replaces Elizabeth McClam. Mr. Velardo is familiar with Ithaca, having been its Field Rep previously. The Committee reviewed the 216 Annual Community Assessment (ACA) from HUD. b. Program Updates Mendizabal notified the Committee of communication from TCAT Staff regarding AP217 Project #12 Urban Bus Signage and Amenities Upgrades. Due to ongoing infrastructural improvements being made by the City at Chestnut and Elm Streets, the proposed use of funding there will be significantly delayed. TCAT has submitted some alternative uses for the funds, including improvements to Chestnut Hill bus shelter to make it ADA compliant or put funding toward the LCD TCAT messaging screen at Salvation Army. The Committee discussed and feels ADA compliance is a more urgent and important use (bus stop at Chestnut Hill Apts). Mendizabal shared the subsidy layering analysis for 828 Hector Street (AP217 #21 CHDO Reserve). In the future, the Committee will review analysis when/if the project has encountered difficulty. Mendizabal reported that Love Knows No Bounds (AP216 #3) is on track for fulfilling commitment, and has requested and received a 9 day extension. Another townhome at 21 Hancock (AP216 #5), making the total 5 of 7. Harriet Giannelis CCC closing has been delayed until 1/25/ Next meeting date: February 9, 218 VII. Motion to Adjourn Moved by Farrell; seconded Halpert. Carried Unanimously 5. Adjourned at 9:43 am.

5 EMPLOYER ASSISTED HOUSING (EAH): TYPES & EXAMPLES BENEFITS TO EMPLOYER: Aids in recruitment, especially at a time of potential labor shortage (Baby Boomer retirement wave)/competitive advantage Improves retention; decreases turnover o Turnover costs as portion of annual salaries 3-5 of entry level employee 15 mid-level employee 4 of specialized employee 1 Addresses inefficiencies due to long commutes to work (decreases absenteeism and tardiness) Increases to morale and loyalty Builds positive public perception of employer/community relations ITHACA CONTEXT: In 26, 46 of renters nationwide were cost-burdened (paying more than 3 of income to rent). 2 In 29, 55 of renters nationwide were of City of Ithaca households are cost-burdened and 37 are severely cost-burdened (paying more than 5) 4 Median home value $255, 5 Median listing price $29, 6 OTHER CONSIDERATIONS TO DISCUSS: Responses to 9/11, Hurricane Katrina: Recognized need for housing for first responders/proximity to community served in case of disaster Anticipate success; structure program to benefit low-wage workers to avoid gentrification and displacement 1 Homes for Working Families, Metropolitan Planning Council, American Community Survey (ACS), 26, 3 The Humphrey School, Assessment of Fair Housing for the City of Ithaca, Zillow, 2/1/218 6 Zillow, 2/1/218

6 TYPE TOOL LOCATION EMPLOYER UPS DOWNS Homebuyer Down Payment/Closing Costs Assistance Grant Down Payment Assistance Forgivable Loan Columbus, GA AFLAC Assistant amounts vary. $1,5- $5, plus additional incentives (see below) of $1,- $3, Long Island; Buffalo Northrop Grumman; Canisius College + Incentive for locating near transit Chicago University of Chicago Lower taxes than grants (new tax structure makes this uncertain) Neighborhood stabilization, furtherance of employer s environmental vision + Walk-to-Work Radius Incentive Milwaukee, WI Harley-Davidson Neighborhood stabilization Gap Financing Assistance CA and MN EMPLOYER Multiple CONSORTIUMS: employers Silicon Valley contribute. Leadership Group (Housing Trust of Santa Clara County); Greater Minnesota Housing Fund Amounts available may not realistically aid low-income employees. Avoid gentrification and displacement by targeting lowincome workers. More impact in lower-cost markets (or higher-wage employees). Housing costs vary by location. Unlike other employee benefits, i.e. health insurance; housing (esp. homebuyer) involves capital investment that may not be recouped if employee moves.

7 Construction (Sale or Rental) Renovation Financing Assistance Partner w/ Nonprofit for Variety of Homebuyer Discounts (home inspections, broker commissions, refi fees.) Mississippi Gulf Coast Santa Barbara, CA Northrop Grumman Hatch and Parent (small law firm) Allows employee to receive fee reductions nonprofit has access to but private partner does not. Homeownership Education/Counseling Most of the above Various Construction Financing MN Works well in communities where there is a nonprofit builder. 1. Loan Guarantee Various Low Income Tax Credit (Purchase) Hormel Foods Pelican Rapids, 11. MN 12. Charitable/Corporate Contribution Ithaca Cornell University 13. Low Interest or Deferred Loans Various Equity Contribution (Investment) or Employer-Owned Housing Marshall, MN; Schwan Food 14. Grand Portage, Company; Grand MN Portage Tribal Council 15. Land Donation Aitkin, MN Kellar Foundation 16. Rental Rental Subsidies Seattle Reduction on market rent on new Santa Barbara, CA leases 17. Hatch and Parent (small law firm)/santa Barbara Coastal Housing Partnership Partner with landlords to secure rent reductions ($5-$1 c._) ; some employers sign master leases Related Assistance Employer-operated shuttle Silicon Valley Apple, Google Van Pool (employer subsidized) Los Angeles; Rochester, NY UCLA;?

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10 IURA Grants Summary December 217 ON TOTAL # SCHEDULE HUD ENTITLEMENT ACTIVITIES SPONSOR BUDGET EXPENDED UNEXPENDED SPENT 215 CDBG Activities 2521 complete 1. Hancock Street INHS 25, , complete 2. Mini repair INHS 35, 35, complete 6. Temporary Ramp Loan Program 2 Finger Lakes Ind. Center 2, 2, complete 7. Hospitality Employment Training Program 3 GIAC 19, , complete 8. Work Preserve Job Training Program Historic Ithaca 87,5 87, ok 9. Spencer Road Sidewalks City of Ithaca 1, 28, , complete /I&R Service Human Services Coalition 2, 2, complete 11. Building for the Future 7 Southside Community Center 21, , complete 12. Immigrant Services Catholic Charities 16, 16, complete 13. A+ Tuition Assistance BJM Enrichment Program 17,41 17, complete 14. ReSET Job Training Expansion Finger Lakes ReUse 23, , complete 15. CDBG Grant Administration IURA 134, , complete Unallocated 215 CDBG 7 N/A 2, Total 837, , , HOME Activities 2511 ok Hancock Street INHS 26, , , complete 3. Security Deposit Assistance Program (including Inspection Catholic Charities 44, 44, complete 4. Housing Scholarship Program Learning Web 24,6 24, complete 5. Housing First 1, 13 TCAction 15, , complete 16. HOME Grant Administration IURA 36, , complete 18. First Time Home Buyers-515 W Clinton 4, 14 INHS 15, 15, complete Unallocated 215 HOME 4, 13, 14 N/A 71,115.4 Total 413, , , CDBG Activities 2541 ok 3. LKNB Homeowner Rehab Love Knows No Bounds 36, , , ok 6. Mini repair INHS 3, 27, , ok 8. Work Preserve Job Training & Placement 5 Historic Ithaca 67,5 34, , ok 9. Hospitality Employment Training Program GIAC 1, 82, , ok 11. Heating System & Code Corrections DICC 22, ,699. 3, complete 12. Advocacy Center Garage Renovation Advocacy Center 1,317. 1, ok 13. Wading Pool Renovations GIAC 185, 185, 2548 complete 1.a Housing for School Success IURA 11,58 11, ok 14. A Place to Stay Case Management Catholic Charities 17, , , complete 8.a Work Preserve Job Readiness Historic Ithaca 2, 2, complete 15. Immigrant Services Catholic Charities 3, 3, complete Info and Referral HSC 2, 2, complete 17. CDBG Admin IURA 132, , Total 683, , , HOME Activities 2755 ok 1. Housing for School Success IURA 77, , , ok 2. Security Deposit Assistance Program (including Inspection Catholic Charities 44,26. 41,251. 2, ok Hector Street INHS 1, 96,38 3, complete Hancock Townhouses 8, 9, 15 INHS 314, , ok 7. Morris Ave Homes 14 Habitat for Humanity 75, 75, 276 complete 18. HOME Admin IURA 32, , complete Unallocated 216 HOME 11 N/A 1 Total 643, , , CDBG Activities 2561 ok 1. Chartwell House Tompkins Community Action 22, 22, 2562 ok Homeowner Rehab INHS 75, 75, 2563 ok 6. Mini Repair INHS 26, 26, 2564 ok 7. Hospitality Employment Training Program GIAC 1, 1, 2565? 8. Ithaca ReUse Center Expansion Finger Lakes ReUse, Inc. 5, 5, 2566 ok 1 Work Preserve Job Training: Job Placements Historic Ithaca 67,5 67, ok 11. Food Entrepreneurship CCE of Tompkins County 36, , ok 12. Urban Bus Stop Signage & Amenities TCAT 25, 25, 2569 ok 13. DICC Heating & Roofing Replacement 6, 7 DICC 35,5 35,5 257 ok 14. Immigrant Services Catholic Charities 3, 3, 2571 ok 15. Work Preserve Job Readiness Historic Ithaca 2, 2, 2572 ok Info and Referral Human Services Coalition 2, 7, , ok 17. A Place To Stay: Supportive Services Catholic Charities 15, , ok 18. Housing For School Success: Year #2 ICSD 13,28 13, ok 19. CDBG Admin IURA 128, ,882. ok 22. Economic Development Loan Fund IURA 56, , ok 9. Harriet Gianellis Child Care Center Tompkins Community Action 84,2 84,2 Total 86, , , Page 1 of 2

11 IURA Grants Summary December 217 ON TOTAL # SCHEDULE HUD ENTITLEMENT ACTIVITIES SPONSOR BUDGET EXPENDED UNEXPENDED SPENT 217 HOME Activities 2767 ok South Cayuga Street Habitat for Humanity 8, 8, 2768 ok 4. Housing Scholarship Program 11 The Learning Web 65,592. 5, , ok 5. Security Deposit Assistance Catholic Charities 42,75 14,57. 28, ok Hector Street (CHDO) INHS 41, , ok 2 HOME Admin IURA 27, , ok Unallocated 217 HOME 12 N/A 19, ,977.8 ok Recaptured Funds (HP) 15 N/A 5, 5, ok Unanticipated Program Income (PI) 8 N/A 21, ,545. Total 33,87.9 2, , CDBG Spend Down Ratio (must be less than 1.5 by June 1st of each year (6 days prior to program year): CDBG Spend Down Ratio = total unexpended CDBG funds/most recent annual CDBG award NO Pre-217 Method: Unexpended CDBG Grant funds on Line of Credit: NO Current Method: Total Unexpended CDBG funds: Line of Credit + CDBG Revolving Loan Fund: Maximum Unexpended CDBG Funds to Satisfy 1.5 CDBG Spend Down Ratio 966,615 Amount Required to be Expended by 6/1 to Meet CDBG Spend Down Ratio of 1.5: 428,264 Total Unexpended HUD Entitlement Funds CDBG Activities 987,42.32 CDBG Program Income 16, CDBG Revolving Loan Fund Balance 567, HOME Activities 4,463.9 HOME Program Income Activites Total Unexpended HUD Entitlement Funds 2,115, Page 2 of 2

12 SNAPSHOT of HOME Program Performance--As of 12/31/17 Local Participating Jurisdictions with Rental Production Activities Participating Jurisdiction (PJ): Ithaca State: NY PJ's Total HOME Allocation Received: $6,791,919 PJ's Size Grouping*: C PJ Since (FY): 24 Category Program Progress: of Funds Committed Nat'l Ranking (Percentile):* PJ State Average State Rank Nat'l Average Group C Overall PJs in State: of Funds Disbursed Leveraging Ratio for Rental Activities of Completed Rental Disbursements to All Rental Commitments*** of Completed CHDO Disbursements to All CHDO Reservations*** Low-Income Benefit: of -5 AMI Renters to All Renters of -3 AMI Renters to All Renters*** Lease-Up: of Occupied Rental Units to All Completed Rental Units*** Overall Ranking: HOME Cost Per Unit and Number of Completed Units: Rental Unit Homebuyer Unit Homeowner-Rehab Unit TBRA Unit 1 $51,984 $39,436 $1, $66,851 $18,965 $5,4 In State: 1 / $35,443 $17,549 $3,558 Nationally: $2,711 $11,563 $21, Units Units Units Units * - A = PJ's Annual Allocation is greater than or equal to $3.5 million (15 PJs) B = PJ's Annual Allocation is less than $3.5 million and greater than or equal to $1 million (11 PJs) C = PJ's Annual Allocation is less than $1 million (454 PJs) ** - E.g., a percentile rank of 7 means that the performance exceeds that of 7 of PJs. ***- This category is double-weighted in compiling both the State Overall Ranking and the National Overall Ranking of each PJ. Source: Data entered by HOME Participating Jurisdictions into HUD s Integrated Disbursement and Information System (IDIS) Page 1

13 Program and Beneficiary Characteristics for Completed Units Participating Jurisdiction (PJ): Ithaca NY Total Development Costs: (average reported cost per unit in HOME-assisted projects) PJ: State:* National:** Rental Homebuyer Homeowner CHDO Operating Expenses: PJ: $24,933 $138,753 $26,33 ( of allocation) National Avg: $165,736 $117,627 $16,157 $13,18 $86,491 $25,97 R.S. Means Cost Index: RACE: White: Black/African American: Asian: American Indian/Alaska Native: Native Hawaiian/Pacific Islander: American Indian/Alaska Native and White: Asian and White: Black/African American and White: American Indian/Alaska Native and Black: Other Multi Racial: Rental Homebuyer Homeowner TBRA HOUSEHOLD TYPE: Single/Non-Elderly: Elderly: Related/Single Parent: Related/Two Parent: Other: Rental Homebuyer Homeowner TBRA Asian/Pacific Islander: ETHNICITY: Hispanic HOUSEHOLD SIZE: 1 Person: 2 Persons: 3 Persons: 4 Persons: 5 Persons: 6 Persons: 7 Persons: 8 or more Persons: SUPPLEMENTAL RENTAL ASSISTANCE: Section 8: 78.1 HOME TBRA: Other: 3.1 No Assistance: 18.8 # of Section 54 Compliant Units: # * The State average includes all local and the State PJs within that state ** The National average includes all local and State PJs, and Insular Areas # Section 8 vouchers can be used for First-Time Homebuyer Downpayment Assistance. Source: Data entered by HOME Participating Jurisdictions into HUD s Integrated Disbursement and Information System (IDIS) HOME Program Performance SNAPSHOT Page 2

14 HOME PROGRAM SNAPSHOT WORKSHEET - RED FLAG INDICATORS Local Participating Jurisdictions with Rental Production Activities Participating Jurisdiction (PJ): Ithaca State Rank: 2 28 PJs Summary: Of the 5 Indicators are Red Flags State: NY Group Rank: (Percentile) Overall Rank: (Percentile) FACTOR DESCRIPTION THRESHOLD* PJ RESULTS RED FLAG 4 OF COMPLETED RENTAL DISBURSEMENTS TO ALL RENTAL COMMITMENTS < OF COMPLETED CHDO DISBURSEMENTS TO ALL CHDO RESERVATIONS < OF RENTERS BELOW 5 OF AREA MEDIAN INCOME < 7** OF OCCUPIED RENTAL UNITS TO ALL RENTAL UNITS < "ALLOCATION-YEARS" NOT DISBURSED*** > * This Threshold indicates approximately the lowest 2 of the PJs ** This percentage may indicate a problem with meeting the 9 of rental units and TBRA provided to households at 6 AMI requirement *** Total of undisbursed HOME and ADDI funds through FY 213 HOME and ADDI allocation amount. This is not a SNAPSHOT indicator, but a good indicator of program progress. Source: Data entered by HOME Participating Jurisdictions into HUD s Integrated Disbursement and Information System (IDIS) HOME Program Performance SNAPSHOT Page 3

15 HOME Investment Partnerships (HOME) Program Program Progress Dashboard Cumulative as of 12/31/217 Participating Jurisdiction (PJ): Ithaca, NY PJ Since: 24 (1) Status of Funds Total HOME Allocations Received: $6,791,919 Commitments Only Uncommitted 3 2 Disbursements* 95 * "Disbursements" include previously committed funds. (2) Unit Production - Completions Last Quarter (October 1 - December 3, 217): Net Increase: Cumulative Since: 24 Total: 19 No net increase in reported units. Rental 29 Homebuyer 41 Homeowner Rehab 3 New Tenant-Based Rental Assistance (TBRA): 25 Households Tenant-Based Rental Assistance (TBRA) Total: 972 Households Source: Data entered by HOME Participating Jurisdictions into HUD s Integrated Disbursement and Information System (IDIS) Page 1

16 Ithaca, NY (3) Production Detail Racial/Ethnic Breakout Rental Projects Homebuyer Projects Am Indian/Alaska Asian 6.3 Asian/P.I. Black 21.9 Hawaiian/P.I. Hispanic 15.6 Other 6.2 White Am Indian/Alaska Asian 11.4 Asian/P.I. Black 13.6 Hawaiian/P.I. Hispanic 2.3 Other White Avg. Total Dev. Cost (TDC)* Per Unit: $24,933 Avg. Total Dev. Cost (TDC)* Per Unit: $138,753 Homeowner Rehabilitation Projects Am Indian/Alaska Asian 6.1 Asian/P.I. Black 9.1 Hawaiian/P.I. Hispanic Other 3 White Avg. Total Dev. Cost (TDC)* Per Unit: $26,33 * TDC - Includes all sources of funds Source: Data entered by HOME Participating Jurisdictions into HUD s Integrated Disbursement and Information System (IDIS) HOME Program DASHBOARD Page 2

17 Ithaca, NY b. Income Range Breakout c. Family/Size Breakout Rental Homeow ner Homebuyer Rental Homeow ner Homebuyer Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 or More Persons d. Household Type Breakout Rental Homeow ner Homebuyer Single/Non Elderly Elderly Related/Single Parent Related/Parent Other Source: Data entered by HOME Participating Jurisdictions into HUD s Integrated Disbursement and Information System (IDIS) HOME Program DASHBOARD Page3