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HomeMy WebLinkAbout10-12-16 Draft Minutes - Community Affordable Housing Advisory Board (CAHAB)Community Affordable Housing Advisory Board Wednesday, October 12, 2016 8:00am, Madison Room – 121 N. Rouse Ave. A. 08:05:00 AM (00:00:46) Call meeting to order B. 08:05:05 AM (00:00:51) Changes to the Agenda C. 08:06:01 AM (00:01:47) Public Comment – 08:06:13 AM (00:01:59) Lucy Pope Alliance for building Communities – stated that she’s excited by the agenda presented. She also mentioned as some density is starting to take place downtown, that she hopes some affordability can be incorporated in those projects. D. 08:08:35 AM (00:04:21) Special Presentation 08:08:44 AM (00:04:30) Homeword, Inc. $200,000 Grant for Larkspur (Andrea Davis) – Andrea Davis begins presentation/update on the project, beginning with background on the Homeward organization. 08:14:33 AM (00:10:19) Kevin Thane questions what the rent is for the units and what percentage arelow-income units. Ms. Davis responds that 100% are all low-income units. Half of the units are at 50% of the AMI and 50% are at 60% AMI. 08:17:35 AM (00:13:21) Kevin Thane questions how many of each apartment size there are. Applicant responds. Kevin Thane questions how townhomes differ from the apartments. Differences between townhome and apartments are further discussed. It is simply a difference in configuration, not in the ownership of those properties. 08:19:24 AM (00:15:10) Kevin Thane questions the funding sources used to make this project a success. Project presenter discusses the various sources of funding and tax credits that made Larkspur a possibility. 08:25:43 AM (00:21:29) Kevin Thane questions the qualifications to get in one of the units, specifically as it applies to using a section 8 voucher. Project presenter comments that qualification for everyone are the same in terms of background and credit check. Discussion continues regarding deposits, references, etc. Rent is targeted at 30% of income. 08:31:11 AM (00:26:57) Kevin Thane questions how far below the ideal income the property managers will go to allow housing for individuals who do not meet the ideal income numbers. Project presenters did not have solid numbers. They offered to provide that information to the board after the meeting. Kevin Thane questions what will happen as the AMI increases, but income stays stagnant. Presenter states that expenses will go up faster than the cost of rent. Conversation continues to explain that as AMI increases, rent can increase. As AMI decreases, it is less likely that rent will decrease though, because the expenses will likely increase. Discussion continues regarding how rent rates are set. 08:42:00 AM (00:37:46) Hattie Baker questions what can we do to attract this type of affordable development in Bozeman. Project presenter discusses ways that the project can be successful to offer insight on how these types of projects are possible. 08:52:12 AM (00:47:58) Sharon Southard questions how site managers calculate income – there are many individuals in Bozeman who might make more than is indicated on their paycheck (those who may have a high income of tips). Presenter responds that they can utilize tax returns to determine income. The best way to determine if you’re eligible is to speak with the property manager. 08:54:44 AM (00:50:30) Kevin Thane questions the tax process with regards to units rented at the 60% AMI. Presenter responds. Additional discussion regarding funding for the project. 08:58:49 AM (00:54:35) Kevin Thane questions the waiting time for section 8 housing. Presenter responds that they are not sure, but it is likely 12-18 months. Discussion continues regarding section 8 housing. 09:03:37 AM (00:59:23) Commissioner Pomeroy questions about the unit square footage. Presenter responds to the questions with square footages. E. 09:05:19 AM (01:01:05) Action Items 1. 09:05:35 AM (01:01:21) Recommend to the City Commission to require the developer of the property at Rouse and Tamarack to include 10% of the lots for development by Habitat for Humanity. 09:06:04 AM (01:01:50) David Magestrelli begins presentation on the Rouse/Tamarack project and suggestion to require 10% go to Habitat for Humanity for development. Clarification on where the project is located. Discussion with board about the location and that Habitat for Humanity’s biggest hurdle is acquiring land. Kevin Thane clarifies that it was his understanding that instead of putting the property up for sale, that the land would be held for affordable housing. 09:10:56 AM (01:06:42) Sean Malony questions what the conversation at the City commission was regarding the property being discussed. Mr. LaMeres reflects on the conversation and that Commissioner Pomeroy voted to save the property for affordable housing, but it was decided 4-1 to sell the land to reduce the impact of the new law and justice center. 09:12:07 AM (01:07:53) Open for public comment – public comment by Andrea Davis – she supports using public land for affordable housing. 09:12:55 AM (01:08:41) Mayor Taylor comments that the intent in voting against using the property for affordable housing was because the City is trying to maximize the income from the sale of that property. He asked the board to find a way to reduce the gap between providing the property for affordable housing and the outright market sale of the property for revenue to the City. Mayor Taylor states that it will be an important commercial corridor, and so it will be a great location for affordable housing, but in terms of valuable land, it does not seem like an ideal location. Perhaps a better approach would be to sell the land and invest more money in affordable housing elsewhere. 09:16:39 AM (01:12:25) Kevin Thane moves to recommend to the City Commission, that rather than sell the piece of land at the corner of Oak and Rouse, that they hold that land and use it for affordable housing. Second by David Magestrelli Kevin Thane comments that it was clear after the discussion at the commission meeting that the goal is to sell that land to reduce the cost of the law and justice center. However, he questions at what point does the need for affordable housing out way the dollar. He states that as it was presented, it might not seem like the best place for affordable housing, but that perhaps it should be suggested that a portion of the proceeds go to the law and justice center and another portion go to affordable housing. He questions how they get ahead of the train to be sure that funds are used for affordable housing. Mr. Thane states that he will likely vote against his motion knowing now how the land was acquired and the goals for selling, but he would like to present a new motion to suggest a portion of the proceeds from the sale of the land go to affordable housing. Acknowledging that there was never a motion on the table since David Magestreli must abstain because of his relationship with Habitat for Humanity, the board decides to present a new motion. 09:21:18 AM (01:17:04) Kevin Thane moves that the City set aside 10% of the proceeds from the sale of Rouse and Oak piece to be used to further affordable housing. Second by Sean Mallony. Discussion by board about whether it should apply to all sales of land by the City. 09:23:30 AM (01:19:16) Sharon Southard states that we have been voting for this law and justice center for a while and she feels that she cannot support 10% because she feels we need to appease the voters by not costing them so much in taxes – which will ultimately increase the cost of living. 09:24:41 AM (01:20:27) Melvin Howe presents an alternative to the proposed motion. Discussion continues regarding details of the alternative motion and whether to vote on current motion. Kevin Thane questions if it has already been decided to put all of the funding towards the law and justice center or if it was just determined to sell the property. Mayor Taylor confirms that it was included in the motion to put the proceeds towards the law and justice center. Kevin Thane states that it appears that the decision has already been made, so perhaps the board should vote on the motion and end the discussion. Discussion continues regarding what was voted on by the commission and whether there is still flexibility to consider affordable housing. Mayor Taylor states that the board can vote to criticize what the commission voted on to make a louder demand for affordable housing. He does not want to dampen the passion for affordable housing. Further discussion between board members and Mayor Taylor about appropriate motion regarding this issue and what the commission has already decided regarding this particular property. 09:36:34 AM (01:32:20) Decision to extend the meeting. Mayana Rice suggests that we word the motion so that if the land is sold for a residential purpose that 10% needs to be affordable housing. 09:37:26 AM (01:33:12) Kevin Thane comments he would like to take back his motion and replace it with a motion that any time the sale of city land is considered, that the city commission consider it for affordable housing. Sean Maloney seconds the motion. Discussion on the motion regarding wording of the motion and what that means. 09:39:14 AM (01:35:00) Vote on the motion: Board passes unanimously. 2. 09:39:30 AM (01:35:16) Recommend to the City Commission to use the City land located at 5519 Saxon Way for affordable housing as proposed by Habitat for Humanity. 09:40:10 AM (01:35:56) David Magestrelli states he does not have anything to present, but is open for questions. Mr. Magestrelli states that it takes into consideration what is already on the property and turning radius for vehicles. 09:41:19 AM (01:37:05) Public Comment – no public comment 09:41:51 AM (01:37:37) Mr. Thane moves to suggest that the city dedicate land at 5519 Saxon Way to be used for affordable housing developed in accordance with the preliminary plan that Habitat for Humanity has submitted. Second by Melvin Howe 09:42:36 AM (01:38:22) Sharon Southard questions the time frame for subdividing and building this property. Mr. Magestrelli states that it would take a couple of years. Typically they build about 2 houses per year, but they could do that faster in town. Previously they were doing 4 units per year in town. Clarification that the City would be donating the land. In return hey would be receiving real-estate taxes for the homes. 09:44:15 AM (01:40:01) clarification that there would be 9 units, 2 and 3 bedroom configurations. 09:44:45 AM (01:40:31) Mr. Lameres questions how he decided on this property and whether he has discussed this with the City yet. Mr. Magestrelli states that this was on the City owned property list that Mr. Thane provided in the past and they have not discussed it with the City yet. 09:45:06 AM (01:40:52) Mr. Thane stated that he has discussed this land with Mr. Woolard and that he stated that the unused portion of this property could potentially be used for storage. Mr. Thane feels there are better places to be used for storage, this property is in the middle of residential. 09:46:27 AM (01:42:13) Vote on the motion: board unanimously approved the motion ( David Magestrelli abstains) F. 09:47:13 AM (01:42:59) FYI/Discussion 1. 09:47:40 AM (01:43:26) Update on Tiny Homes in Bozeman (Connie Campbell- Pearson) 09:47:52 AM (01:43:38) Connie Campbell- Pearson begins presentation on Tiny Homes for chronically homeless individuals. 09:53:38 AM (01:49:24) Conclusion of presentation. 2. 09:54:19 AM (01:50:05) Discussion regarding number of affordable homes built to date with an update from Heather Grenier at HRDC. No discussion on this item because meeting has gone beyond advertised time. They will up at the next meeting. 09:54:56 AM (01:50:42) Mr. Lameres reads a comment from Anders Lewendal sent via e-mail. G. 09:56:29 AM (01:52:15) Adjournment For more information please contact Alicia Kennedy at akennedy@bozeman.net This board generally meets the second Wednesday of the month at 8:00am Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301).