[PAGE 1] City of Oskaloosa Oskaloosa Housing Trust Fund Committee Lower Level Conference Room City Hall, 220 S. Market Street Oskaloosa, IA 52577 Agenda Wednesday, August 5, 2020 12:00 noon A physical public presence will not be permitted. Public and media access to the meeting will only be allowed electronically and residents may participate in any public hearing items on the agenda electronically, if such items are scheduled. The restriction to physical access is in accordance with Section Nine of the Iowa Public Health Emergency Declaration signed by Governor Kim Reynolds. Join Zoom Meeting https://us02web.zoom.us/j/85760107161?pwd=TDdxTmNUVFRlRXdpM2gzWUhNMm5oUT09 Meeting ID: 857 6010 7161 Passcode: 487988 Dial-in: 1 312 626 6799 US (Chicago) 1. Call to Order / Roll Call Roll Call: ______ Adams, ______ Brown, ______ Caligiuri, ______ Sauer, ______ Spoelstra, ______ Stahle, ______ Vande Ree 2. Consider Approval of Consent Agenda as Presented or Amended All items appearing on the Consent Agenda are considered routine by the Housing Trust Fund committee and shall be enacted by one motion. If discussion is desired, an item may be removed, discussed separately, and approved by a separate motion. A. Approval of Minutes Staff requests approval of the attached meeting minutes Documents: 20200702 HTFC MEETING MINUTES.PDF B. Approval of Claims Staff requests approval of the attached monthly claims Documents: HOUSING CLAIM LIST JULY 2020.PDF C. Receive and File Accounting Reports Monthly accounting reports are attached for your information Documents: ACCOUNTING REPORT-HOUSING DEPT JUNE 2020.PDF OHTF ACTIVITY JULY 2020.PDF D. ------------------------ End of Consent Agenda ------------------------ 3. Regular Agenda / New Business A. Review and consider continuance of OHTF First Time Homebuyer Forgivable Grant Program Documents: COM 20200805 OHTF PROGRAM REVIEW.PDF FIRST TIME HOMEBUYERS PLAN FINAL 08152019.PDF IFA INCOME LIMIT.PDF OHTF FIRST TIME HOMEBUYER GRANT APPLICATION REV 2-19- 2020.PDF 1ST TIME HOME BUYER CHECKLIST 2-20-2020.PDF TRUST FUND OWNERSHIP AFFD 5.4.20.PDF B. Consider dissolution of the Oskaloosa Housing Trust Fund Committee Documents: COM OHTF 20200805 DISSOLUTION.PDF 20200623_OHTF COMMITTEE RECOMMENDATION.PDF 4. Miscellaneous Business 5. Adjournment If you require special accommodations, please contact the City Manager's Office at least 24 hours prior to the meeting at (641) 673-9431. [PAGE 2] City of Oskaloosa Oskaloosa Housing Trust Fund Committee Lower Level Conference Room City Hall, 220 S. Market Street Oskaloosa, IA 52577 Agenda Wednesday, August 5, 2020 12:00 noon A physical public presence will not be permitted. Public and media access to the meeting will only be allowed electronically and residents may participate in any public hearing items on the agenda electronically, if such items are scheduled. The restriction to physical access is in accordance with Section Nine of the Iowa Public Health Emergency Declaration signed by Governor Kim Reynolds. Join Zoom Meeting https://us02web.zoom.us/j/85760107161?pwd=TDdxTmNUVFRlRXdpM2gzWUhNMm5oUT09 Meeting ID: 857 6010 7161 Passcode: 487988 Dial-in: 1 312 626 6799 US (Chicago) 1. Call to Order / Roll Call Roll Call: ______ Adams, ______ Brown, ______ Caligiuri, ______ Sauer, ______ Spoelstra, ______ Stahle, ______ Vande Ree 2. Consider Approval of Consent Agenda as Presented or Amended All items appearing on the Consent Agenda are considered routine by the Housing Trust Fund committee and shall be enacted by one motion. If discussion is desired, an item may be removed, discussed separately, and approved by a separate motion. A. Approval of Minutes Staff requests approval of the attached meeting minutes Documents: 20200702 HTFC MEETING MINUTES.PDF B. Approval of Claims Staff requests approval of the attached monthly claims Documents: HOUSING CLAIM LIST JULY 2020.PDF C. Receive and File Accounting Reports Monthly accounting reports are attached for your information Documents: ACCOUNTING REPORT-HOUSING DEPT JUNE 2020.PDF OHTF ACTIVITY JULY 2020.PDF D. ------------------------ End of Consent Agenda ------------------------ 3. Regular Agenda / New Business A. Review and consider continuance of OHTF First Time Homebuyer Forgivable Grant Program Documents: COM 20200805 OHTF PROGRAM REVIEW.PDF FIRST TIME HOMEBUYERS PLAN FINAL 08152019.PDF IFA INCOME LIMIT.PDF OHTF FIRST TIME HOMEBUYER GRANT APPLICATION REV 2-19- 2020.PDF 1ST TIME HOME BUYER CHECKLIST 2-20-2020.PDF TRUST FUND OWNERSHIP AFFD 5.4.20.PDF B. Consider dissolution of the Oskaloosa Housing Trust Fund Committee Documents: COM OHTF 20200805 DISSOLUTION.PDF 20200623_OHTF COMMITTEE RECOMMENDATION.PDF 4. Miscellaneous Business 5. Adjournment If you require special accommodations, please contact the City Manager's Office at least 24 hours prior to the meeting at (641) 673-9431. [PAGE 3] Oskaloosa Housing Trust Fund Committee Thursday, July 2, 2020 - Noon City Hall Lower Level Meeting Room 220 South Market Street, Oskaloosa, Iowa 52577 AregularlyscheduledmeetingoftheOskaloosaHousingTrustFundCommitteefortheCityofOskaloosa wascalledtoorderonThursday,July7,2020,at12:02p.m.byChairDanAdams.Thecommitteemetvia electronic meeting to restrict physical access in accordance with the March 2020 Iowa Public Health Emergency Proclamation signed by Governor Kim Reynolds Members Present: Dan Adams, Nancy Brown, Joe Caligiuri, Tammy Sauer, Royce Spoelstra, Carri Vande Ree Members Absent: Noel Stahle City Staff Present: Shawn Christ, Stephanie Faulkes Consider Approval of Consent Agenda as Presented or Amended It was moved by Vande Ree, seconded by Caligiuri to approve the consent agenda as presented: A. Approval of Minutes B. Approval of Claims C. Receive and File Accounting Reports All Ayes, motion passed unanimously. Regular Agenda A. Consider application for Demolition Grant II for a property located at 1206 High Avenue West Shane Moore applied for funds under the Demolition Assistance Grant/Loan Program II to demolish the house for greenspace. This property was previously owned by Mahaska County Habitat for Humanity and recently sold to Mr. Moore. The house is assessed at $17,460 and land assessed at $9,360, for a total of $26,820. According to the Mahaska County Assessor’s web page, the house is in “poor” condition, grade 5 (below average). Discussion: Christ explained that Moore has no immediate plans to rebuild at this time. It was moved by Spoelstra, seconded by Caligiuri to approve the request. All Ayes, motion passed unanimously. B. Consider application for Demolition Grant II for a property located at 321 North E Street Classic Living LLC has applied for funds under the Demolition Assistance Grant/Loan Program II for the above property. Dave Bower, representative for Classic Living LLC, proposes to demolish the house for greenspace. He will apply for a demolition permit after consideration of the grant application. This property was previously sold by the city to Classic Living with the stipulation that the home be demolished due to its poor condition. The house is assessed at $6,600 and land assessed at $5,920, for a total of $12,520. According to the Mahaska County Assessor’s web page, the house is in “very poor” condition, grade 5 (below average). 1 [PAGE 4] Discussion: Members agreed that this property is a good candidate for the program. It was moved by Spoelstra, seconded by Caligiuri to approve the request. Brown abstained from voting due to a conflict of interest; all other members present voted to approve, motion passed. C. Consider dissolution of the Oskaloosa Housing Trust Fund Committee At the June 4, 2020, OHTF meeting committee members and city staff discussed the history of the trust fund committee and how it has changed over the years. Members were asked to give some thought to dissolving the committee and reassigning responsibilities to staff and the Chamber’s housing committee. Discussion: A memo provided by city manager Michael Schrock outlined a plan of action and recommendation on dissolution. Committee discussed funds/donations, budget, and how the program would be managed by staff. Christ explained that the program would continue as is, that there is no proposal to redirect funds, that the demolition programs are popular and widely used, and that policy and decision making would be done by City Council at the recommendation of staff. Committee asked additional questions about donations with Adams indicating there had possibly been two fund drives after the first request. Christ shared that the original donor list was extensive although no donations have been received within at least the past two years and possibly longer. Adams asked that each representative go back to their respective companies as a courtesy to notify them of the dissolution and that Christ confirm that Clow has been notified due to not having a representative on the committee at this time. Miscellaneous Business: Christ explained that the first-time homebuyer program has received three applications in the one-year period ending June 30. The program requires an annual review and audit of the program with a recommendation to City Council; want to ensure the program is successful or make changes. Unable to accept additional applications until revised. It was moved by Caligiuri and seconded by Brown to adjourn at 12:24 p.m. Minutes by Faulkes 2 [PAGE 5] City of Oskaloosa Claims Register Jul-20 Credit Bureau Services of Iowa Recovery - Housing loan 157.35 Municode Annual administrative fee 29.17 Tyler/Samantha Wilson & RealClear Settlement 1st time homebuyer grant - 1316 9th Ave E 2,500.00 July postage 3 .00 July copies 0 .12 GRAND TOTALS 2 ,689.64 FUND TOTALS Fund 138 - Housing Donated Funds 2,500.00 Fund 140 - Housing Funds 189.64 *** 2 ,689.64 Signature Date Signature Date [PAGE 6] OSKALOOSA HOUSING TRUST FUND June 30, 2020 Fund HOUSING FUND Balance Beginning Balance YTD $229,864.71 Revenue: 140503044300 Interest $2,647.90 140503014531 Late Fees $30.00 140503014570 Processing Fees $1,654.00 140503024711 Loan Repayments $43,439.38 140503024713 Loan Repayments (unrestricted) $6,019.44 Total Revenue $53,790.72 Expenses: 14050306405 Recording Fee Expense $331.00 14050306413 Payments to Other Agencies $0.00 14050306414 Printing and Publishing Expense $74.99 14050306419 Technology Expense $0.00 14050306490 Other Professional Services $0.00 14050306495 Housing Loans/Assistance $0.00 14050306497 Demo Loan $48,000.00 14050306498 Refunds & Reimbursements $0.00 14050306507 Operating Supplies $0.00 14050306508 Postage $12.50 14050306511 Copying $4.96 14050306910001 Transfer Out $1,530.00 Total Expenses $49,953.45 Ending Balance $233,701.98 **Loan Repayments (unrestricted) 6/30/11 balance $48,464.44 **Loan Repayments (unrestricted) 6/30/12 balance $42,687.69 **Loan Repayments (unrestricted) 6/30/13 balance $31,239.18 **Loan Repayments (unrestricted) 6/30/14 balance $15,727.19 **Loan Repayments (unrestricted) 6/30/15 balance ($16,515.22) **Loan Repayments (unrestricted) 6/30/16 balance $9,539.56 **Loan Repayments (unrestricted) 6/30/17 balance ($16,569.45) **Loan Repayments (unrestricted) 6/30/18 balance $7,037.81 **Loan Repayments (unrestricted) 6/30/19 balance $12,907.20 **Loan Repayments (unrestricted) 6/30/20 balance $6,019.44 Total $140,537.84 HOUSING DONATED FUNDS Fund Program To Date Balance Revenue: 138503024705 Contributions 2007-08 $84,125 $ 8 4,125.00 Contributions 2009-10 $68,350 $ 6 8,700.00 Contributions 2010-11 $68,350 $ 6 8,250.00 Total Revenue $ 2 21,075.00 Expenses: 13850306413 Payments to Other Agencies $ 1 ,000.00 First Time Home Buyer 2008 $64,125 $ 4 0,732.00 First Time Home Buyer 2009 $48,350 $ 4 8,100.00 13850306495 Housing Loans/Assistance $ 4 4,002.26 13850306497 Demo Loan 2008 $20,000 $ 2 0,000.00 Demo Loan 2009 $20,000 $ 2 0,000.00 13850306910145 Transfer Out (2010 IFA Grant Match) $ 2 0,000.00 Total Expenses $ 1 93,834.26 Ending Balance $ 27,240.74 [PAGE 7] Oskaloosa Housing Trust-Monthly Activity Jul-20 1st time Homebuyer payments for July 1, 2020 $ 989.93 Restricted $ 989.93 Non-restricted $ - 1st Time Homebuyer Grant issued Name Amount Wilson $ 2,500.00 Issued 6-30-2020 1st Time Homebuyer Loans final payments this month Name Date completed Carolus 7/1/2020 Loans paid in full Name Date paid Payment Witzenburg 1st time homebuyer 7/6/2020 $ 583.00 Resczenko 1st time homebuyer 6/30/2020 $ 884.98 Demolition Loan approved Name Date approved Address of demolition Shane Moore 7/2/2020 1206 High Ave W Classic Living LLC 7/2/2020 321 North E St Demolition loans issued Name Address Amount C Ferree 820 7th Ave E $ 4,000.00 Issued 6-29-2020 Income Offset payments received Name Program Rcvd Outstanding M Resczenko 1st time homebuyer $ 232.00 $ - [PAGE 8] OHTF Communication Meeting Date: August 5, 2020 Requested By: Development Services Department Item Title: Review and consider continuance of OHTF First Time Homebuyer Forgivable Grant Program Explanation: The First Time Homebuyer Forgivable Grant program ran through June 30, 2020. The program plan requires a review by the OHTF committee with recommendation for modifications, continuance, or discontinuation of the program to the City Council. This program offers up to $2,500 toward down payment/closing costs. With three (3) applications received its first year and recent interest from Community 1st Credit Union to participate, extending the program seems reasonable. The Iowa Finance Authority (IFA) recently updated their income limits, so the committee may wish to update/clarify its limits to utilize the stated amount (currently $141,680) and not the 80% AMI limit for conventional loans. Budget Consideration: Up to $2,500 per home and up to ten (10) homes per year. Attachments: Program plan, IFA income limits, application form, staff checklist, ownership affidavit [PAGE 9] CITY OF OSKALOOSA HOUSING TRUST FUND FIRST-TIME HOME BUYER FORGIVABLE GRANT FUND PLAN FISCAL YEAR 2019-2020 A. GENERAL PURPOSE OF THE FUND The Oskaloosa Housing Trust Fund (OHTF) will utilize its City of Oskaloosa First-time Home Buyer FORGIVABLE Grant Fund in an effort to promote home ownership within the City of Oskaloosa. To accomplish this goal of increasing home ownership, the OHTF shall continue the successful down payment and closing cost assistance program. The assistance shall be in the form of forgivable grants. B. ELIGIBLE ACTIVITIES Eligible costs included within approved loans shall consist only of the following: 1. Down payment on the purchase of the home; and 2. Payment of closing costs and prepaid costs on a first mortgage loan. C. ELIGIBLE PROPERTY An eligible property shall be any single-family residence located within the corporate limits of the City of Oskaloosa, Iowa. Homes purchased can be either newly constructed or existing housing (including manufactured and modular housing, although purchase of manufactured housing constructed prior to 1974 will not be permitted). D. ELIGIBLE PARTICIPANT An eligible participant shall be an applicant who: 1. Has not had interest in a residential property within the City of Oskaloosa corporate limits (ownership of a property for the purpose of (re)development shall not be considered ownership of a residential property) in one of the following ways within the past three (3) years prior to making application: a. Fee title ownership; b. Fee title ownership subject to mortgage; or c. A party to a contract for purchase of residential real estate. d. A party to a divorce proceeding who utilized these funds will be eligible if the previously owned property was sold or deeded to the spouse in the settlement agreement. And; 2. Has a total household income not exceeding the Homes for Iowans Plus Program Household Income Limit as defined and established by the Iowa Finance Authority (IFA). And; 3. Is in good standing with the City of Oskaloosa Housing Trust Fund by not having any outstanding balance(s) from previous OHTF program use whether or not the debt was due to foreclosure or any other action. And; 4. Is not utilizing any other financial assistance program for the home purchase or mortgage loan. E. TYPE AND AMOUNT OF ASSISTANCE 1. Funds shall be distributed in the form of non-transferable, forgivable grants with 5-year lien agreement placed on homes approved under this program. Repayment of a grant is not expected if the home remains under ownership of the participant for a period of five (5) years or more after the closing date. If the home is sold within this five-year period, funds shall be prorated and repaid as follows: a. If the home is sold on or before 1 month of closing, the grant funds shall be repaid in full. b. If the home is sold after 1 month of closing and on or before 60 months of closing, any remaining grant funds shall be prorated over 60 months and repaid for any remaining months from closing to the end of the 60-month period. c. If the home is sold after 60 months from closing, no repayment is expected. 2. Grants will not be made for more than 5% of the purchase price of the home. An approved grant shall not exceed $2500. 3. Borrowers qualifying for other down payment assistance programs are expected to utilize those programs and resort to this program as a last resort. 4. Participants shall be required to pay a processing fee as approved by the Oskaloosa City Council on the fee schedule. All fees shall be due and payable at loan closing. F. CAPITALIZATION AND OPERATION OF THE GRANT FUND The first time home buyer grant program fund is one of several programs capitalized through the Iowa Finance Authority’s State Housing Fund Grant, fundraising dollars and recaptured loan repayments. A maximum ten (10) grants will be awarded per fiscal year, as determined by approval of applications in the order in which Revised August 2019 [PAGE 10] they were complete and received. Assistance will be paid from OHTF Fund 138 (Housing Donated Funds), until the fund balance is depleted. OHTF Fund 140 (Housing Fund), will be utilized thereafter to distribute funds G. HOME BUYER EDUCATION Attendance and participation in a qualified first-time home buyer education course will be required prior to loan closing for all borrowers that fit the definition of a first-time buyer as defined in paragraph D.1., above. Applicants can participate in qualified homebuyer education courses that may be available through Oskaloosa area lenders or other sources offering this education as approved by the OHTF staff. H. GRANT APPLICATION PROCESS Applications will be provided to the OHTF on the application form provided to participating lenders. A copy of the participant’s first mortgage loan application, loan estimate, and income documents must be provided to the OHTF as documentation of eligibility. The OHTF reserves the right to inspect and copy documentation to verify eligibility. Information obtained through the application will be kept confidential and will not be available for public review. The Department Head, OHTF Chair, OHTF Vice-Chair and City Manager shall be authorized to approve all eligible applicants. Upon approval of the application by two of the four persons authorized to approve applicants, the Department Head and Program Manager (the OHTF Chair, Vice-Chair or City Manager may approve payment in the absence of either the Department Head or Program Manager) shall be authorized to approve payment for the OHTF for all eligible applicants. I. MONITORING OF PROGRAM The OHTF committee would be charged with review of the program usage, suggesting modifications to the City Council and development of other programs to address other identified housing needs within the community. L. ADMINISTRATION OF THE FUND The city staff will administer the grant program fund. Idle funds shall be invested, to the maximum extent possible, in interest bearing accounts. The City of Oskaloosa shall be allowed to utilize interest from invested funds to help cover incurred costs for administering the program. M. AMENDMENTS TO AND REVIEW OF THE PLAN This grant program fund plan may be amended, from time-to-time, as deemed necessary and appropriate upon recommendation by the OHTF, and by a majority vote of the Oskaloosa City Council. N. OTHER REQUIREMENTS In addition to the above requirements for participation in the program, the following shall apply: 1. Lenders participating in this program shall assure the City that they shall abide by all Fair Housing laws, as they may apply. 2. No employee, agent, consultant, officer or appointed official of the City of Oskaloosa shall be eligible to participate in this program without prior approval of the Oskaloosa Housing Trust Fund Committee. O. WAIVER OF PROGRAM REQUIREMENTS Nothing contained within this Loan Fund prevents the OHTF Committee from waiving any adopted program rules and regulations, provided, however, that the waiver does not violate any applicable laws. P. PROGRAM PERIOD AND ELIGIBILITY This program shall be available from July 1, 2019 through June 30, 2020. At the end of this period the OHTF Committee shall perform an audit of the program and recommend modifications, continuance, and/or discontinuation of the program to the City Council. Revised August 2019 [PAGE 11] EffectiveJune 5,2020 [PAGE 12] First-Time Homebuyer Forgivable Grant Application PART 1 – LENDER INFORMATION First Mortgage Lender: Lender Address: Lender Contact Name: Lender Phone Number: Lender Contact Email: PART 2 – APPLICANT INFORMATION Applicant Name: Co-Applicant Name: Contact phone: Contact Email: Total persons residing in the household: Total annual household income: $ Have you owned a home in Oskaloosa’s city limits within the last 3 years? Do you have one or more outstanding OHTF program balances? Program: Are you utilizing another financial assistance program? Program: PART 3 – PROPERTY INFORMATION Address of property to be purchased: Legal Description (or attach separately): Home purchase price: $ Located within City limits? Is the property a mobile home? Year built (if a mobile home): PART 4 – ASSISTANCE AND OTHER INFORMATION Amount requested ($2,500 max): $ Not more than 5% of purchase price? Projected closing date: (continued on next page) OHTF First Time Homebuyer Forgivable Grant Program Application P age | 1 Revised March 2020 [PAGE 13] PART 5 – REQUIRED ATTACHMENTS Verification of income Legal description of property (if separate) Home purchase agreement Homebuyer course completion certificate First mortgage loan application $100 application fee or documentation Loan estimate from lender for payment PART 6 – CERTIFICATION & SIGNATURES I (we) do hereby certify that the above information is true and correct to the best of my (our) knowledge and do, also, give my first mortgage lender permission to supply the City of Oskaloosa, Iowa with any and all information necessary to verify the above and complete my application. I (we) do further certify that I (we) have read the City of Oskaloosa Housing Trust Fund First-Time Home Buyer Forgivable Grant Fund Plan and understand all applicable provisions including the expectation for repayment in the event the home is sold within five (5) years from the closing date. ______________________________________ ____________ Applicant Signature Print Name Date ______________________________________ ____________ Co-Applicant Signature (if applicable) Print Name Date CITY OFFICIALS ONLY – Review and Approvals ______________________________________ _______________________ OHTF Chair, OHTF Vice Chair, or City Manager Signature Date ______________________________________ _______________________ Development Services Director or Program Manager Signature Date OHTF First Time Homebuyer Forgivable Grant Program Application P age | 2 Revised March 2020 [PAGE 14] CITY OF OSKALOOSA FIRST-TIME HOME BUYER FORGIVABLE GRANT PROGRAM CHECKLIST Name: Address: DEVELOPMENT SERVICES - APPLICATION RECEIVED FROM BANK CITY CLERK - COMPLETION OF GRANT Completed first time home buyer application Was home sold within 5 years of closing? Verification of Income Date of sale (if applicable) Copy of purchase agreement Calculated repayment amount (if applicable) Copy of 1st mortgage application Date invoice sent (if applicable) Copy of loan estimate Date repayment received (if applicable) Legal description of property Release prepared Copy of home buyer course completion certificate Release to recorder's office Verification of no home ownership in city for 3 years Release received from recorder's office Verification source (Recorder, IA Land Records, other) Update database DEVELOPMENT SERVICES - REVIEW FOR ELIGIBILITY Participating lender? Income eligibility reviewed and is eligible--review for spouses on mortgage Loan Amount (Review application/5% of purchase price up to $2,500) Closing date Obtain application approval signatures CITY CLERK - LIEN AGREEMENT AND PAYMENT Prepare, execute, and record lien agreement Status document and check request completed and signed Date check issued to bank $100 fee and Final Closing Disclosure received from bank after closing Update 1st time homebuyers database [PAGE 15] AFFIDAVIT IN SUPPORT OF APPLICATION OF FIRST TIME HOMEBUYER GRANT STATE OF IOWA ) MAHASKA COUNTY ) ss: I the undersigned, being first duly sworn on oath, do depose and state that I am making application to the City of Oskaloosa Iowa for a First Time Homebuyer Grant through the Oskaloosa Housing Trust Fund Committee. I understand and acknowledge that as a condition thereof it is required that I have not owned a home within Mahaska County within the past three years. I do affirmatively state and represent that I have not owned a home within Mahaska County within the past three years. I acknowledge and agree that if it is discovered that I have falsely represented this fact that I will be liable to repay any funds received from the Oskaloosa Housing Trust fund. I do further state that I (we) have read the foregoing, and that it is true and correct. Dated: _______________ 20____ _____________________________ Printed name:__________________ _____________________________ Printed name:__________________ Subscribed and sworn to before me, a Notary Public by the above named person(s) on this _______ day of ______________ 20____. _____________________________ NOTARY PUBLIC [PAGE 16] OHTF Communication Meeting Date: August 5, 2020 Requested By: Development Services Department Item Title: Consider dissolution of the Oskaloosa Housing Trust Fund Committee Explanation: At the June 4th OHTF meeting committee members and city staff discussed the history of the trust fund committee and how it has changed over the years. Members were asked to give some thought to dissolving the committee and reassigning responsibilities to staff and the Chamber’s housing committee. The attached memo provides a plan of action and recommendation on dissolution for committee consideration. This item was considered at the July 2nd meeting and tabled until August to give the bank donors additional time to discuss among their boards. Budget Consideration: None. Attachments: Memo/plan of action from City Manager Michael Schrock [PAGE 17] To: Oskaloosa Housing Trust Fund Committee From: Michael Schrock, City Manager CC: Shawn Christ, Amy Miller, Stephanie Faulkes Date: June 23, 2020 Re: Oskaloosa Housing Trust Fund Committee Dissolution Item under consideration: Dissolution of the Oskaloosa Housing Trust Fund (OHTF) Committee. Programs of the OHTF shall continue, but be administered by city staff. The OHTF programs include Demolition Assistance I (rebuild); Demolition Assistance II (greenspace); First Time Homebuyer Assistance; Upper Story Housing Life/Safety; and special projects (i.e. Comprehensive Housing Needs Analysis; and project specific housing incentive grants/loans). Recommendation: Dissolve the OHTF Committee by ordinance amendment thereby permitting city staff to administer OHTF programs by the city manager or designee. More detailed action sought: Prior to action by city council, seek concurrence from the existing OHTF Committee membership to recommendthedissolutionoftheOHTFCommittee. Recommendationtoincludearequestforformal action by the city council, via Ordinance amendment. As a result of the dissolution, programs currently administered by the OHTF would be done so by city staff, using existing program guidelines that were previously approved by the OHTF and city council. Existingprogramswillcontinuetoreceiveanannualpurposeandneedevaluationaspartofthecity’s budgeting process. Recommendations on the continuation or modification of OHTF program plans, the continuation of the fund, and associated funding sources for OHTF programs will involve the city manager (or designee), Mayor, and city council. An ad-hoc committee from the community (former members)couldbeutilizedduringthisprocessifdesired. Citycouncilwillbetheauthoritytoapprove modificationsorchangestoexistingprogramplansandallocationoffunding. Performancemetricsfor programs offered by the city using OHTF funds will continue to be tracked and reported in the city’s annual activity report. If the OHTF Committee is dissolved, staff recommends current committee members continue serving on other city boards, committees, or commissions that presently have vacancies (i.e. Planning & Zoning, Historic Preservation, Civil Service, Board of Adjustment, Water Board of Trustees). If the desire is to remain connected specifically with “housing” related matters more in line with the OHTF Committee’smission,staffrecommendscontactwiththeMahaskaChamberandDevelopmentGroup (the Chamber) for the purpose of serving on that organization’s Housing Committee. City of Oskaloosa Page 1 of 3 [PAGE 18] The Chamber’s Housing Committee was formed as a result of extensive community conversations focused on developing a strategic vision and plan for the organization. The Chamber’s strategic plan concentratesonthefollowingpriorities:Workforce;Housing;Tourism/Recreation/QualityofLife;and Business Development/Business Recruitment/Infrastructure. The Chamber’s Housing Committee includes a wide array of members from the community and a vested interest in addressing housing needs in Mahaska County. The members are charged with: 1. Creating a process to report total county starts with a goal of 50 per year; 2. Exploring options for senior housing starts; 3. Identifying and addressing barriers to upper story housing for Oskaloosa Main Street; 4. Exploring county-wide Revolving Loan Fund for housing; and 5. Establishing protocol for regular open communication with builders and developers. Additional Background: TheOHTFandtheOHTFCommitteewereformedbyOrdinanceNo.1085,approvedbyCityCouncilon November 6, 2000, published November 14, 2000. This Ordinance is codified in the Oskaloosa Municipal Code as Chapter 2.90 – Housing Trust Fund. The Trust Fund. The purpose of the trust fund shall be to collect and disburse revenue to meet the housing needs of the community as defined in the city comprehensive plan and housing needs assessments. The trust fund, as a permanent and revolving source of revenue, will provide for loans, grantsandotherfinancingmechanismstofinanceprojectsincludingbutnotlimitedtotheacquisition, demolition for redevelopment purposes, rehabilitation and/or new construction of rental and owner- occupiedhousing,aswellastoprovidemoneyforrelocationassistancetoincome-qualifieddisplaced tenants. Funds deposited in the trust fund shall be deposited in a separate account from other city funds, including the general fund. The OHTF Committee Purpose. The OHTF Committee is charged with recommending policy direction andoversighttotheadministrationandoperationofthehousingtrustfundby:1.Solicitingfunding;2. Developing bylaws to govern the committee's operations; and 3. Developing policies and guidelines for acquisition and distribution of funds. Such solicitation, bylaws, policies, and guidelines shall be approved by the city council. The OHTF Committee shall also coordinate an effective mechanism for public participation in the operation of the trust fund, recommend projects to the city council for funding approval, and engage in activities providing for the efficient use of the trust fund. In addition, the OHTF Committee is granted specific powers and is assigned certain duties. The committee has the authority to do the following: City of Oskaloosa Page 2 of 3 [PAGE 19] A. Conduct and/or participate in studies for the purpose of identifying housing needs within the community. B. Shares information contained in any studies with private and/or public developers. C. In addition to the above-mentioned duties and powers specified, the committee may, with city approval: 1. Accept unconditional gifts and donations of real and personal property, including money; 2. Acquire by purchase, bequest, or donation, fee and lesser interests in real estate; 3. Preserve, maintain, operate, develop or redevelop properties under the ownership or control of the trust fund committee; 4.Lease,sell,andotherwisetransferordisposeofpropertiessubjecttorightsofpublicaccess and other covenants and in a manner that will address identified housing needs within the community; 5. Contract, with approval of the city council, with the state or federal government or other organizations; 6.Cooperatewiththefederal,stateandlocalgovernmentsinthepursuanceoftheobjectives of the housing trust fund; 7. Provide information for the purpose of the housing trust fund to the governing body; and 8. Promote and conduct educational programs related to identified housing issues within the community. OHTF Financials. The following information provides the most recent balance of funds used for the purpose of administering programs of the OHTF Committee, as of June 9, 2020. Fund 138: $ 34,741 Fund 140: $231,034 Total: $265,775 Program activity levels for the past five fiscal years: Program FY15 FY16 FY17 FY18 FY19 FY20 YTD First Time Homebuyer 8 2 6 2 0 2 Demolition I (paid) 5 8 4 4 5 4 Demolition II (paid) 1 6 3 1 2 5 City of Oskaloosa Page 3 of 3