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Home My WebLink AboutCAHAB Minutes 05-10-2017 Community Affordable Housing Advisory Board Wednesday, May 10, 2017 8:00 AM, Commission Room, 121 N. Rouse Ave. A. 08:08:33 AM (00:05:31) Call meeting to order Present Were:  Chair Brian LaMeres  Anders Lewendal  Kevin Thane  Brian Guyer  Sean Maloney  Hattie Baker Graham B. 08:08:44 AM (00:05:42) Changes to the Agenda (Item 5 was moved in front of item #2) C. Public Comment – Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. D. 08:08:45 AM (00:05:43) Minutes Approval:  4.12.17 Minutes PDF  4.12.17 Meeting Video w/ Agenda & Minutes MOTION to approve minutes as amended: All in Favor – Motion Passes E. 08:16:28 AM (00:13:26) Special Presentation: Public Works Director Dr. Craig Woolard presentation of development & housing “pinch points” within City of Bozeman. Director Woolard explained the infrastructure limitations, including failing intersections, Bozeman is facing with its current growth and the solutions they’re working on in order to alleviate these issues so that development can continue. 08:18:12 AM (00:15:10) Infrastructure elements/challenges include: treated water storage, water conservation, developing new water sources, waste water lift station for West side growth and storm - water management compliance from development community. 08:35:09 AM (00:32:07) Director Woolard reviews the ‘pinch points’ of failing intersections. He used the intersection at Baxter and Davis as an example of exactly how significant these failing intersections are in slowing down development. 08:40:21 AM (00:37:19) Director Woolard continued to explain that projects are able to be authorized (waiving the level of service requirement), if the failing intersection is on the 3 year capital plan for funding for improvement and the City has the right of way to put the infrastructure into place. He continued to explain that it is common for the issue to be with gaining the right of way, which may include annexing a property into the City. 08:47:03 AM (00:44:01) Director Woolard reviewed the previous method of determining where to make improvements vs. the current method. In the past, the capital plan was driven by where Developers were building. Now, the capital plan is driven by need and opportunities to partner with Developers to share the cost of improvements. 08:52:34 AM (00:49:32) Director Woolard discussed Special Improvement Districts (SIDs) and estimated that they add 15-20% to the overall cost of a project due to the time it takes to get everything in place from an administrative perspective. F. Action Items: 1. 08:59:52 AM (00:56:50) Discussion of Affordable Housing Ordinances 1922 and 1954 and plan CAHAB course of action with regard to impending target dates. (Matsen)  Ordinance 1922  Ordinance 1954 Under Ordinance 1954, if certain requirements are not met by the deadline of June 30th, it will place into effect Ordinance 1922, which is a mandatory Ordinance on July 12th. 09:01:50 AM (00:58:48) Director of Community Development Martin Matsen spoke to the board and let them know that currently, they are looking at what it means to the Community Development Department administratively and staff-wise to put Ordinance 1922 into place. Director Matsen was asked whether the mandatory ordinance would encourage or halt development with a mandatory contribution to affordable housing. Matsen answered that he has seen this in other communities and that he believed that the other unit’s costs would pay for the affordable housing. 09:09:05 AM (01:06:03) Director Matsen was asked what the net benefit would be with the mandatory affordable housing ordinance. He estimated that the net benefit would be small and that the affordable units would be back at market rate before too long. 09:15:57 AM (01:12:55) MOTION to recommend to the City Commissioners to review, terminate and redesign the inclusionary zoning ordinances: Anders Lewendal MOTION SECONDED: Kevin Thane 09:19:11 AM (01:16:09) Public Comment/Discussion: Greg Stratton from Kilday & Stratton provided public comment that as a developer, his goal was to sell homes between $200,000 and $400,000 as two years ago 85% of the homes sold in Bozeman were within this price range. He explained that it is becoming increasingly difficult to keep home prices down and that there is not one strategy that fits all issues. Stratton stated that there is not a one size fits all strategy and that as a developer, they need flexibility so that they can mold ideas into something that could benefit the affordable housing situation. 09:27:14 AM (01:24:12) In response to a question regarding building ten houses and being forced to sell one at a loss of $50,000, Stratton stated that in order to lower risk for investors and make the project possible, they would increase prices elsewhere. 09:30:21 AM (01:27:19) Stratton stated that the city has been very flexible with them so far and that they’ve received an estimated 20 variances from the Municipal Code that resulted in lower development expenses. When asked if those savings would be passed along to the home buyer, he responded that they would. 09:32:54 AM (01:29:52) When asked how long the variances took to be approved, Stratton responded that it took an estimated 6 months. Stratton provided an example for Valley West Subdivision explaining that the interest rate costs about $1,000 per day. 09:38:53 AM (01:35:51) AMENDED MOTION to move that CAHAB recommends to the City Commission to terminate Ordinance 1922 in order to find a better solution: Anders Lewendal 09:40:36 AM (01:37:34) Discussion 09:43:05 AM (01:40:03) Director Matsen explained that currently it is too late to go through the normal process to put a moratorium on the ordinance and recommended that they may ask the Commission to deal with the ordinance on an emergency basis. VOTE: Motion Carries (5:1) For: o Chair Brian LaMeres o Anders Lewendal o Kevin Thane o Sean Maloney o Hattie Baker Graham Opposed: o Brian Guyer 5. 09:54:53 AM (01:51:51) Unified Development Code UDC Final Adoption schedule: update and CAHAB course of action. Director of Community Development, Martin Matsen reviewed the UDC adoption scheduled and demonstrated where to find the information on the City of Bozeman website. Director Matsen offered to go in front of any regularly scheduled board who would have them in order to discuss the UDC code update. He continued to explain that the schedule is aggressive because this is an adoption schedule, not the creation of the UDC.  10:02:03 AM (01:59:01) Planning and set Agenda for CAHAB meeting / roundtable discussion with the City Commission to discuss open Affordable Housing issues (meeting will most likely occur in late May or early June). 10:02:29 AM (01:59:27) Items that CAHAB plans to discuss with the City Commissioners includes  Budget and Goals for CAHAB  Expectations of CAHAB from City Commissioners  List of supported items/changes with Unified Development Code  Cemetery Land for Affordable Housing  Open land at Oak and Laurel Parkway  Affordable Housing Ordinance  …more to be determined 10:03:52 AM (02:00:50) Sean Maloney recommended that CAHAB invite someone with experience with this type of City growth to be present at the Commission round table.  CAHAB budget recommendation to City Commission for Housing Fund. Will be discussed with the City Commission Roundtable  10:05:12 AM (02:02:10) 2012 – 2016 City of Bozeman Affordable Housing Goals – update, discussion, and course of action for 2017 and beyond. G. 10:06:25 AM (02:03:23) FYI/Discussion  HRDC Monthly update (Heather Grenier)  HRDC will be working on the affordable housing manual to make it more usable for developers, etc.  HRDC Project on 24th & Beall will hopefully be ready to participate in the Parade of Homes  HRDC’s Hoover Way project is on hold pending Baxter/Davis intersection  GAR Gallatin Assoc. of Realtors Summary (Hattie)  Kevin Thane has been in touch with Commissioner Skinner and is on an agenda to discuss some land that may be utilized for affordable housing.  Kevin Thane also has an appointment scheduled with MSU President Crusado to discuss affordable housing land opportunities.  CAHAB Member updates and future agenda items H. 10:08:26 AM (02:05:24) Adjournment (LaMeres) For more information please contact Brian LaMeres at blameres@bozeman.net This board generally meets the second Wednesday of each month at 8:00 AM Committee meetings are open to all members of the public. 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