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HomeMy WebLinkAboutCAHAB progress report to City closing 2012-2016 planAffordable Housing Goals Closeout Report 2012-2016 Goals and outcomes: Increase and preserve the supply of affordable housing: 1. Build 240 affordable rental units. Outcome: 184 multi-family affordable housing units - Stoneridge Apartments (48) funded via the Montana Board of Housing Low Income Housing Tax Credits (partnership between the City of Bozeman, HRDC, and Summit Housing Group). Construction completed October 2016. - Larkspur Commons (136) funded via the Montana Board of Housing Low Income Housing Tax Credits (partnership between the City of Bozeman, Homeword, and GMD Development). Construction completion estimated in 2017. 2. Construction of subsidized homes for sale – only 28 homes—and that number to be built only if the market strengthens. Outcome: 24 condominium units constructed and sold with subsidy, completion date October 2014 (West Edge Condominiums, Phase III). 3. To help strengthen the for-sale home market, the plan calls for providing down payment assistance to 100 low- and moderate-income buyers of modestly priced existing and new homes. Outcome: Through December 2015, 84 low and moderate-income buyers have been provided with down payment assistance through HRDC’s Homeownership Center. 4. The plan also calls for helping 125 low-income Bozeman homeowners repair their homes. Outcome: Since April 2012, 54 homes have received safety improvements to their homes through the Fix Up Festival operated by the Bozeman Sunrise Rotary (in partnership with HRDC and many other community partners) and 25 homes have received safety improvement repairs to their homes through Habitat for Humanity. 5. Weatherize 350 homes and rental units in the tri-county area. Outcome: Since April 2012, 581 homes have been weatherized in the tri-county area (HRDC Energy Programs). 6. Bozeman’s first-ever green building guidelines for affordable housing are included in this plan. Outcome: Green building guidelines for affordable housing have been accepted and adopted. Further, anyone requesting city support to meet affordable housing needs is required to meet the guidelines. Consider amendments to City regulations. This plan endorses a continued suspension of the City’s Workforce Housing Ordinance, but sets out criteria for considering reinstatement of the ordinance when the for-sale housing market strengthens. The plan also calls for consideration of other regulatory changes: (1) deferring or subsidizing impact fees for affordable housing, (2) allowing the creation of smaller lots with narrower frontage, (3) re-platting of existing subdivisions that have requirements that builders consider burdensome, (4) reviewing current ordinances regulating accessory dwellings, (5) clarifying the zoning status of group homes and (6) studying possible ordinance changes to encourage preservation of mobile home parks. Outcome: The City contracted with Werwath and Associates to evaluate the suspended ordinance and make recommendations regarding changes to the ordinance. The recommendations were presented to the City Commission on February 9, 2015 (see attached, 2015BozemanAffordableHousingStudy (1).pdf). These recommendations were integrated into the City’s Affordable Housing Program, adopted on November 16, 2015 (Ordinance 15-1922). A coinciding Affordable Housing Program Manual was created to assist the development community in taking advantage of the incentives provided in the Program (Resolution 4659), adopted on February 8, 2016. Ordinance 1954, the Cottage Housing Ordinance was adopted on July 11, 2016, creating an innovate Housing Program, to help supplement the Affordable Housing Program. An amendment to the Affordable Housing Program, Ordinance 1954 (adopted on July 25, 2016) – amending the contingency date of Section 3 of Ordinance 1922 – moving the first deadline to June 12, 2017. Assure financial and organizational capacity. To carry out the goals of this plan, local nonprofit housing organizations will need to access a substantial amount of currently-available federal funds managed by the State of Montana. The federal Low-Income Housing Tax Credits are a major resource for building affordable rental housing but have not been used in Bozeman for seven years; a goal was set to encourage the development of 200 rental units using this program, as well as funding from other sources to build 40 affordable apartments for seniors. Another goal is to maximize the effectiveness of the City’s Workforce Housing Fund, by establishing new requirements and priorities for distributing funding. The plan also calls for an increased effort to provide technical assistance to nonprofit housing organizations in Bozeman, to increase their capacity. Outcomes: 1. Low Income Housing Tax Credit funds were awarded for construction of 48 rental units (Stoneridge Apartments) with construction completed in October 2016. The City of Bozeman supported the application and awarded $37,437 in funding to the project (in waived impact fees) from the Workforce Housing Fund. 2. Low Income Housing Tax Credit funds were awarded for construction of 136 rental units (Larkspur Commons) with construction completion anticipated in 2017. The City of Bozeman supported the application and awarded $200,000 in funding to the project (from the Workforce Housing Fund). 3. The City of Bozeman supported a Low Income Housing Tax Credit Application for 24 units of affordable senior housing (Rose Park) in 2016. The Project was not awarded credits. Share crucial market data and report on progress. Lastly, to better assure that the plan is successfully implemented, several other goals are established: (1) following new, definitive protocols for updating targets for affordable home prices and rents; (2) implementing, if feasible, an annual rental market survey to better inform developers and nonprofits about demand; and (3) publishing an annual report on progress versus the goals of the action plan. Outcomes: The City conducted the latest annual rental market survey in 2014. Report compiled on: April 28, 2017 Affordable Housing Plan Goals 2012-2016 Adopted from Appendix A of Housing Plan Affordable Housing Activities Sponsor Outcomes through 2011 2012-2016 Goals for additional units 2012-2016 To date actual production HOMEOWNERSHIP PROGRAMS Build and sell new homes HRDC 20 24 24 Build and sell new homes Habitat 59 1 0 Acquisition and sales of homes HRDC 15 0 2 Homeowner rehab assistance* Habitat 37 50 25 Down-payment assistance* HRDC 104 100 84 Weatherization of homes and rentals* HRDC 431 350 581 Weatherization/repairs for homeowners (with volunteers) Rotary Not avail. 50 54 Emergency repairs HRDC Not avail. 25 22 Pre-purchase counseling* HRDC 1779 750 1,440 Foreclosure counseling* HRDC 200 200 48 SUBSIDIZED RENTAL HOUSING LIHTC rentals built – seniors HRDC 161 40 0 LIHTC rentals built – families Multiple 344 200 195 Other rental housing built HRDC 24 0 0 SPECIAL NEEDS HOUSING Transitional housing provided HAVEN/Family Promise 0 9 2 Transitional housing provided HRDC 2 16 15-Amos House Permanent rental – behavioral health Western MT Mental Health 4 0 0 Transitional housing – development disabilities REACH 16 16 Replace 3 new 0 Supportive Housing – developmental disabilities REACH 25 Replace or repair 0 Emergency Shelter/warming center beds HRDC 24 0 40 Emergency Shelter beds – families Family Promise 12 0 0 Domestic Violence shelter beds HAVEN 13 13 Replace 3 new 0 OTHER PROGRAMS Section 8 rent subsidies* HRDC 273 0 450 Transitional rent subsidies HRDC/HAVEN/ Family Promise 0 10 6 Note: Unless indicated otherwise, service area for programs is Bozeman; programs with * serve tri- county area (Gallatin, Park, Meagher). The Rotary repair program serves Bozeman and Belgrade. A zero under 2012-2016 goals indicates that no additions are considered feasible at this time. AFFORDABLE HOUSING PLAN GOALS/ISSUES SUMMARY TABLE Highlighted text denotes issues where CAHAB is seeking City Commission input/direction Strategy 1: Increase and preserve the supply of affordable housing PROGRAM GOAL ACHIEVEMENT PERCENTAGE COMPLETE FORECAST ISSUES IDENTIFIED Rental Housing Production 200 Low Income Housing Tax Credit (LIHTC) Units & 40 Senior Low-Income Units 11 units (2012) 48 Units (2016) 136 Units (2016-construction in progress, some phases leased) 98% 24 units of senior housing was applied for via Low Income Housing Tax Credits in 2016, the application was not funded Due to funding philosophies of the Montana Board of Housing, it is challenging to obtain tax credit funding more frequently than every 2-3 years Homeownership Production 1. 25 Units 2. Review City Regulations & Impact Fee Structure to Encourage Construction of more Affordable Homes 1. HRDC 24 Units (2014) 2. Affordable Housing Program implemented, creating incentives for affordable homeownership development 96% 26 units planned in 2017. Down-payment Assistance and Housing Counseling Road to Home Program- Counsel 750 Prospective Buyers, Assist 100 with Down-Payment Assistance (DPA) Counseled 498 (2013) Counseled 265 (2014) Counseled 299 (2015) Counseled 231 (2016) DPA 2012-2015 (84) 172% Counsels 84% DPA Repair Existing Affordable Homes Owner Occupied Rehabilitation - 25 Emergency repairs -25 Weatherization - 400 units Owner occupied rehab 25 (2012-2015, Habitat) Home Improvements 54 (2012-2015, Rotary) Weatherized 581 in the tri- county area (2012-2015, HRDC) 100% Rehab 145% Weatherization Special Needs Housing & Transitional Units 1. Create 10 “transition in place” units 2. Complete expansion of Amos House 3. Continue operation of Warming Center 4. Construct 9 family-appropriate transitional units of Behavioral Health Supportive housing 5. Rehabilitate/Replace 13 units of emergency domestic violence shelter while increase total beds by at least 3 1. 6 units created 2. Amos House expansion created 15 beds with supportive services 3. Warming Center relocated, expansion of male and female dormitory, separate space for families 60% 100% 100% 0% 0% Funding is a key issue, HAVEN worked with the City, HRDC, Gallatin Valley Land Trust and other partners to secure land for construction of a new domestic violence shelter and is amidst a capital campaign. Encourage Energy- Efficient Residential Construction and Retrofits Green Building and Renovation Guidelines were adopted. Costs, benefits, and implementation considerations of these guidelines are to be reconsidered by year end 2014 for possible amendments. Projects accepting City support have accepted guidelines. NA None Strategy 2: Consider amendments to City regulations PROGRAM GOAL ACHIEVEMENT PERCENTAGE COMPLETE FORECAST ISSUES IDENTIFIED Consideration of Amendments to Workforce Housing Ordinance Hire consultant to evaluate and make recommendations for amendments to Ordinance Ordinance 1922 adopted 2015, Resolution 4569 adopted 2016, Resolution 1952 adopted 2016, Resolution 1954 adopted 2016 NA 54 affordable homes, 12 lower priced homes Deferring and/or Subsidizing Impact Fees for Affordable Housing Process for prioritizing incentives provided for affordable housing developers Ordinance 1922 includes impact fee waiver and other incentives for affordable housing development NA Allowing Creation of Smaller Lots with More Flexible Dimensional Standards Increasing interest from developers in building on smaller lots than allowed by City Code 18 - Norton East Ranch 24 - Valley West NA 2 units proposed 2017 Consider More Flexible Requirements for Re- platting Subdivisions Create an expedited process for development of Affordable Housing Affordable Housing Program offers 3 day building permit review, concurrent NA infrastructure and construction, expedited review Review Current Ordinances Regulating Accessory Dwelling Units (ADUs) Many participants in focus groups indicated support for increased flexibility in promoting ADUs ADU regulations are being redrafted with the new UDC NA Clarifying Zoning Status of Group Homes Review ordinance for group homes and possibly propose appropriate amendments to clarify where and conditions of approval. UDC amended in August, 2012 NA Studying Ordinance Changes to Encourage Preservation of Mobile Home Parks Mobile home parks provide substantial supply of affordable homes and preservation will require cooperation between City, park owners, and multiple funding sources Strategy is yet to be implemented. By 2016, City will review ordinance requirements and work with partners to address the vulnerability of City’s mobile home park housing stock, consider housing condition, location, affordability level, and infrastructure needs. Strategy 3: Assure financial and organizational capacity PROGRAM GOAL ACHIEVEMENT PERCENTAGE COMPLETE FORECAST ISSUES IDENTIFIED Maximize Bozeman’s Access to Federal Funding and Private Grants for Affordable Housing Collaboration between non-profit service providers and support from City to increase funds in our community NA Non-profits and City will continue to explore opportunities to leverage funds and maximize access to federal and private funds Maximize Effectiveness of Workforce Housing Fund Use of City’s funds to provide gap financing for projects that meet the housing plan, and suggested a funding process for applications Fund used to support Homebuyer Education, Allocated to Stoneridge Apartments, and approved for Larkspur Commons NA Build the Capacity of Local Non-Profit Housing Organizations Program development, grant writing and subsidy layering Supported HAVEN, providing technical assistance and also worked with Habitat to assess potential of submitting a CDBG planning grant NA Strategy 4: Share crucial market data and report on progress PROGRAM GOAL ACHIEVEMENT PERCENTAGE COMPLETE FORECAST ISSUES IDENTIFIED Update Target Rent and Ownership Amounts Update affordability calculations as they relate to changes in Area Median Income (AMI) Update is done annually No charges are expected. Rental Market Survey Conduct a rental market survey on an annual basis Annual Rental Market Survey completed 2014 Annual Report on Action Plan Progress City staff will prepare a report annually showing the housing plan’s progress versus goals set Annual reports have been made as outlined. The 2016 report is included in this memo. No changes are expected. Complete a New Needs Study and Housing Plan in 2016 Update plan CAHAB will request that the Commission allocate funding for an updated needs assessment and housing plan to be adopted by 2017.