Full Agenda
AGENDA
JANESVILLE COMMUNITY DEVELOPMENT AUTHORITY
REGULAR MEETING
WEDNESDAY, JULY 15
5:30 P.M.
COUNCIL CHAMBERS
MUNICIPAL BUILDING
18 NORTH JACKSON STREET
JANESVILLE, WISCONSIN
1.Roll Call.
2. Minutes of the Regular Meeting Held on June 17, 2009. “C”
3. Questions and Comments from the Public on Matters Not on the Agenda.
4. Identification of priorities and criteria for CDBG and HOME funding.
5. Action on a Request from Applicant (09-124) to exceed the loan maximum for a housing rehab project.
6. Invitations for project completions.
a. 08-113
b. 08-303
7. Report: Second Quarter Fair Housing Report
8. Neighborhood Services Directors Report
9. Matters Not on the Agenda.
“C” Indicates an item that the Community Development Authority will take up under Consent
NEXT MEETING
REGULAR MEETING
WEDNESDAY, AUGUST 19, 2009
5:30 P.M.
COUNCIL CHAMBERS
AGENDA
JANESVILLE COMMUNITY DEVELOPMENT AUTHORITY
REGULAR MEETING
WEDNESDAY, JULY 15
5:30 P.M.
COUNCIL CHAMBERS
MUNICIPAL BUILDING
18 NORTH JACKSON STREET
JANESVILLE, WISCONSIN
1.Roll Call.
2. Minutes of the Regular Meeting Held on June 17, 2009. “C”
3. Questions and Comments from the Public on Matters Not on the Agenda.
4. Identification of priorities and criteria for CDBG and HOME funding.
5. Action on a Request from Applicant (09-124) to exceed the loan maximum for a housing rehab project.
6. Invitations for project completions.
a. 08-113
b. 08-303
7. Report: Second Quarter Fair Housing Report
8. Neighborhood Services Directors Report
9. Matters Not on the Agenda.
“C” Indicates an item that the Community Development Authority will take up under Consent
NEXT MEETING
REGULAR MEETING
WEDNESDAY, AUGUST 19, 2009
5:30 P.M.
COUNCIL CHAMBERS
Minutes of the Janesville Community Development Authority (CDA) Regular Meeting
June 17, 2009
Present: CDA Members: Jana Vegge, Michael Bachmeyer, George Fenn, Duke Ellingson, Russ Steeber
Also present: City Staff: Jennifer Petruzzello, Carrie Clark.; Others: Andreah Briarmoon
Absent: CDA member(s) Sylvia Moore , Tom McDonald
The meeting was called to order by Chairperson Bachmeyer at 5:30 p.m.
The minutes of the May 27, 2009 meeting were approved by consent.
Under Questions and Comments from the Public on Matters Not on the Agenda, Andreah Briarmoon appeared to update the CDA on
the status of the Case Feed Building.
Clark presented the staff report and recommendation to incorporate current loan servicing practices into the Home Improvement
Manual.
Vegge suggested that staff modify the verbage 90-day letter to eliminate the word ‘proactive’ and replace with ‘contact’.
A motion was made by Steeber, seconded by Ellingson, to approve the inclusion of the practices into the Home Improvement
Program manual with changes made as suggested by Vegge. The motion passed unanimously.
Petruzzello presented a proposal to amend the Home Improvement manual to include current practices related to the lead safe
housing rule.
A motion was made by Steeber, seconded by Fenn, to approve the inclusion of the lead-safe housing rule practices into the Home
Improvement manual. The motion passed unanimously.
Under agenda item #6, Petruzzello made a request to the CDA that they consider altering the Consolidated Plan Timetable and
Citizen Participation process to allow for citizens to participate in an open house and public hearing regarding the Consolidated Plan.
The change would result in the CDA meetings scheduled for September 16 and October 14 to begin at 6 p.m.
Petruzzello indicated that a steering committee had been formed and met for the first time and would meet periodically throughout
the planning process.
After brief discussion, a motion was made by Steeber, seconded by Fenn to approve of the schedule change. The motion passed
unanimously.
Petruzzello informed the CDA that the City was recently awarded $1.7 million dollars in flood relief funding which would be used to
reimburse the local share of flood damages, the local match of hazard mitigation and approximately $1 million would be available to
local businesses that suffered flood damage.
Steeber inquired what the million-dollar share to local businesses consisted of. Petruzzello indicated that it could be applied toward
physical damages, economic impact, and/or flood prevention. She also indicated that the specifics of any program for local
businesses have not been determined.
Petruzzello also informed the CDA that the City Council approved the CDBG-R application and that it was now at the HUD-level
awaiting final approval. NS is also in the process of acquiring our first NSP-funded property at 414 N Washington Street.
There being no further business, Steeber motioned, seconded by Ellingson to adjourn the meeting. Motion passed unanimously.
The meeting was adjourned at @ 6:03 p.m.
These minutes are not official until approved by the CDA.
Respectfully submitted, Carrie Clark, Housing Financial & Rehabilitation Specialist
NEIGHBORHOOD SERVICES MEMORANDUM
July 9, 2009
TO: Community Development Authority
FROM: Sarah Elliott, MSA Professional Services
Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Item #4 – Identification of priorities and criteria for CDBG and HOME funding
Executive Summary:
Each year, the CDA receives input from the community regarding the use of CDBG and HOME
funding. In addition, the CDA accepts applications from non-profit organizations who wish to
complete a project or offer programming under these grant programs. In the past, the CDA has
made a pre-application available to organizations and then invited some of those organizations
to submit a full application. This year, the CDA chose to forgo the pre-application process, and
instead expressed a desire to establish funding priorities to be shared with interested
organizations, so those most aligned with the CDA’s goals would be encouraged to submit
proposals.
Staff recommends that the CDA identify three to four housing and public service activities to be
identified as funding priorities for 2010.
Background:
MSA Professional Services (the consultant assisting the City with the preparation of its
Consolidated Housing and Community Development Plan) has recently completed a series of 5
focus groups intended to garner increased public participation for the City’s CDBG and HOME
Consolidated Planning process. The focus groups were conducted on June 23 and June 25. In
total, there were 31 participants, including 6 persons who identified themselves as consumers
of one or more of the programs funded through the CDBG and HOME programs.
During each focus group, participants were asked to define the Strengths, Weaknesses,
Opportunities, Threats, and Gaps in the housing and community development programs
offered within the City of Janesville and Rock County. At the culmination of each session,
participants were given three stickers that they placed next to the three things they felt were
the highest priorities.
On July 7, the Steering Committee heard a presentation from MSA on the results of these
th
focus groups. MSA defined the “top ten” priorities identified during the focus groups, and the
Steering Committee privately ranked their top five priorities. The following list displays the
priority objectives, in order of ranking:
-Create affordable, quality, housing stock for LMI
-Improve Existing housing stock
-Job Training
-Rent assistance
-Healthcare
-Increased Home-ownership Opportunities
-Transitional Housing for the general population
-Transportation
-Self-Sufficiency programs (responsible renting, etc.)
-Subsidized housing
-Education/training on HUD requirements
The goals of the CDBG program are to provide decent housing, a suitable living environment,
and expanded economic opportunities. The goal of the HOME program is to buy, build, or
rehabilitate affordable housing for rent or homeownership or to provide direct rental
assistance to low-income individuals.
Eligible activities include a wide variety of acquisition, rehabilitation, construction, and
demolition activities associated with residential building, low-income housing, urban
redevelopment, and public facilities. Only 15% of the CDBG funds may be used for public
services. Public services include, though are not limited to, those concerned with employment,
crime prevention, child care, health, drug abuse, education, fair housing counseling, energy
conservation, welfare, homebuyer down-payment assistance, or recreational needs.
Analysis:
It is beneficial to both the CDA and interested organizations to have a discussion of program
priorities prior to preparing and submitting funding requests. One comment frequently heard
during the focus group sessions was that there ought to be an increased transparency to the
allocation of CDBG and HOME funds. Establishing clear priorities and narrowing the list of
public service and housing activities the CDA identifies as priorities will give organizations a
better understanding of the direction the CDA is heading.
Through the establishment of clear goals, the CDA will be positioned to award funding where it
will have the greatest impact in achieving those goals. The CDA may wish to establish
minimum allocations for their top priorities to have a larger impact on addressing need in
their top priority areas.
CDA members are encouraged to compare the eligible activities and program goals to the
priorities identified by the focus group and steering committee.
Recommendation:
Staff has compared the program goals with the priorities identified by the focus groups and
recommends the CDA select 3-4 housing priorities and 3-4 public service activities to be
identified as priorities:
Housing Priorities: Create affordable, quality, housing stock for LMI
Improve Existing housing stock
Increased home ownership opportunities
Transitional Housing for general population (infrastructure)
Subsidized Housing (infrastructure)
Public Service Priorities: Job Training or employment services
Rent assistance
Healthcare
Transitional Housing for the general population (services)
Transportation
Self-Sufficiency programs
Education / Training on HUD requirements
Staff also recommends a minimum grant request of $5,000. This amount will allow for a more
meaningful contribution to the selected organizations.
NEIGHBORHOOD SERVICES MEMORANDUM
To:
Community Development Authority (CDA)
From:
Randy Zwieg
Housing Rehabilitation Specialist II
Date:
July 13, 2009
Subject:
Agenda Item #5
Consideration of a request for Applicant (09-124) to exceed
the loan maximum for a housing rehabilitation project.
Request:
A request is being made on behalf of the owner for the CDA to exceed the maximum funding limit
of $24,999 for a recently purchased loan. A preliminary cost estimate to complete the housing
rehabilitation project is calculated to be approximately $96,000.
A breakdown of the proposed $96,000 loan funding is as follows:
Roofing and Exterior Painting 18,000.00
Mechanicals (HVAC, Elec. & Plumb.) 32,000.00
Windows and Insulation 15,000.00
Interior Renovation 29,000.00
Other (Contingency) 2,000.00
Total Improvements: $96,000.00
Analysis calculation of the available equity would be as follows:
Estimated Fair Market Value 125,400.00
Recently Purchased Loan Factor x 1.20
Maximum Loan Available 150,000.00 (120% LTV)
Existing Property Liens -54,000.00
Available Equity: $96,000.00
1
Overview:
The property is a 2,750 square foot home located on Terrace Street. It is a contributing historic
Queen Ann home in the Look West Neighborhood. The property had been previously converted to
a two-unit rental property before being purchased by this applicant. Neighborhood Services has
responded to seven nuisance and code complaints over the last ten years. The applicant has
undertaken interior demolition work and intends to restore the property to a single family owner
occupied home.
Based upon our initial inspection of the property; the project involves extensive interior and
exterior improvements. Present condition of the property is substandard and deteriorating due to
deferred maintenance and lack of timely repairs. The roof leaks, the siding, trim and overhang
needs painting. Windows are original and in generally poor condition. Numerous mechanical
plumbing and electrical do not exist. Wall covering has been removed and insulation is
nonexistent.
Neighborhood Services, is unable to grant the funds needed to complete this project to bring the
property into compliance with minimum Housing Quality Standards under the loan limit. Under the
Recently Purchased Home Improvement Program guidelines, the maximum loan amount any
combination zero percent installment payment and forgivable loan shall not exceed $24,999. In
order for the property owner to rehabilitate the property to a sound and readily maintainable (decent,
safe and sanitary) condition, preliminary cost estimate of improvement work needed to put the
property into compliance with federal guidelines would exceed the loan limit. The Community
Development Authority reserves the right to determine loan amount on an individual basis.
Without additional funding the property is uninhabitable. Attempts by the borrower to seek
conventional financing have failed. Other alternative financing or nonconventional financing
would be economically infeasible or create an economic burden (i.e. high interest loan).
Recommendation:
CDA authorize a loan of $96,000.00 which would be structured into two (2) separate loans:
?
$48,000.00 would be half forgiven/half pay-back with the installment portion at a higher
payment so as not to exceed a 120 payment amortization.
?
$48,000.00 would be structured as a deferred payment loan for 10 years, after which time it
would convert to an interest bearing loan (5%) with a payment not to exceed a 120
payment amortization.
This loan would address the goals currently established for the home improvement program,
including improving the quality of housing stock for low to moderate income families, promoting
attractive neighborhoods with a variety of housing units, preventing housing stock from becoming
blighted or vacant, preserving historic structures, improving energy efficiency, and promoting the
revitalization and stability of neighborhoods.
2
NEIGHBORHOOD SERVICES MEMORANDUM
July 13, 2009
TO: Community Development Authority (CDA)
FROM: Randy Zwieg, Housing Rehabilitation Specialist II
SUBJECT: Item #6a, Client #08-113
Invitation to attend the CDA meeting to explain project completion status.
Summary:
Project has seriously exceeded the time limits set forth under the Home Improvement
Program for a recently purchased loan which states; “The borrower must agree to
complete all work funded by the Home Improvement loan proceeds no later than six (6)
months from the date of the closing of the loan.” As of the above date this project is
approximately seven (7) months past the scheduled date of completion.
Background/Analysis:
The City closed on a $24,999 recently purchased loan with the Client on June 6, 2008 to
complete window and siding replacement. At this point the main portion of the project has
been completed, however final cleaning and painting of windows is needed to pass final
lead clearance and three housing quality standard issues need to be addressed.
The Client was notified of issues remaining in December of last year and again in a letter
sent by the Neighborhood Services Director dated May 8, 2009. A second copy of the
th
letter followed at the clients request on June 12. No further response has been made by
the client to the department as of the above date.
It is essential that the Home Improvement Program manual guidelines be followed and
deadlines met to ensure compliance with funding rules and regulationsTherefore,
.
Neighborhood Services has requested a meeting before the CDA board to give the client
an opportunity to discuss the status of their project and explain why completion has not
occurred and to set a firm date of completion.
Recommendation:
If the client refuses to attend or is unable to complete the project that Neighborhood
Services be given direction and authority to take whatever action necessary, within its
- 1 -
legal means to ensure compliance and completion.
- 2 -
NEIGHBORHOOD SERVICES MEMORANDUM
July 13, 2009
TO: Community Development Authority (CDA)
FROM: Randy Zwieg, Housing Rehab Specialist II
SUBJECT: Item # 6b, 08-303
Invitation to attend the CDA meeting to explain project completion status.
Summary:
Project has seriously exceeded the time limits set forth under the Home Improvement
Program Rental Rehabilitation Loan which states; “The borrower must agree to complete
all work funded by the Home Improvement loan proceeds no later than six (6) months from
the date of the closing of the loan.” As of the above date this project is approximately five
(5) months past the scheduled date of completion.
Background/Analysis:
The City closed on a $74,995 rental rehabilitation loan in August 2008 to complete a major
renovation of a five-unit rental property (including windows, doors, painting, lead
remediation issues, masonry repairs, front porch). At this point four of the five units did not
pass the final lead clearance testing and four housing quality standard issues are
remaining.
The Client was notified of issues remaining in December of last year and again in a letter
sent by the Neighborhood Services Director dated May 8, 2009. A project extension with a
May 15, 2009 deadline was administratively granted due to weather circumstances. A
medical situation further delayed project completion. The contractor has been unable to
obtain access to the units to complete the necessary work.
It is essential that the Home Improvement Program manual guidelines be followed and
deadlines met to ensure compliance with funding rules and regulationsTherefore,
.
Neighborhood Services has requested a meeting before the CDA board to give the client
an opportunity to discuss the status of their project and explain why completion has not
occurred and to set a firm date of completion.
Recommendation:
If the client refuses to attend or is unable to complete the project that Neighborhood
Services be given direction and authority to take whatever action necessary, within its
legal means to ensure compliance and completion.
- 1 -
Agenda #7
NEIGHBORHOOD SERVICES DEPARTMENT
FAIR HOUSING ORDINANCE ACTIVITY REPORT
April 1, 2009-June 30, 2009
KL
07/08/09
Formal Complaints:
Appears to be discrimination; Filed Investigated Pending Closed
complaint filed with City
0 0 0 0
Informal Complaints:
May be Received Did not Referred Referred Referred No Referred
discrimin-pursue or to Fair to State-to HUD Basis Elsewhere
ation; no filed Housing Equal for
(Legal
complaint elsewhere Council Rights Com-
Action,
filed Div. plaint
etc.)
0 0 0 0 0 0 0 0
Protected Class Involved:
Sexual Religion
Race/ Age Handicap Marital Sex Family
Orientation
Status Status
Ethnicity
0 0 0 0 0 0 0 0
Types of Action:
Refusal to Rent or Sell Termination/Eviction Differing Terms Refusal to Accommodate
0 0 0 0
Inquiries Received:
Total Security Refusal Termination/ Code Related Differing Other
Received Deposit to Rent Eviction Terms
0 0 0 0 0 0 0
____________________________
Kelly Lee
Neighborhood Development Specialist
CC: Jennifer Petruzzello