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HomeMy WebLinkAboutCAHAB Minutes 06-14-2017 Community Affordable Housing Advisory Board Wednesday, June 14, 2017 8:00 AM Commission Room, 121 N. Rouse Ave. A. 08:04:27 AM (00:01:43) Call meeting to order Present Were:  David Magistrelli  Brian Guyer  Kevin Thane  Kris Keller  Anders Lewendal  Chair Brian LaMeres  Commissioner I-Ho Pomeroy B. 08:04:41 AM (00:01:56) Changes to the Agenda C. 08:04:59 AM (00:02:15) 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. 08:05:16 AM (00:02:31) Minutes Approval: May 10, 2017  5.10.17 Meeting Minutes (PDF)  5.10.17 Meeting Video w/ Agenda & Minutes MOTION to approve minutes: David Magistrelli MOTION SECONDED: Chris Keller DISCUSSION: 08:05:28 AM (00:02:44) Board member Kevin Thane requested two corrections to the 5.10.17 minutes. Minutes covering discussion with developer Greg Stratton will be updated to: When asked if those savings generated by relaxing codes would be passed along to the home buyer, he responded that they would. 08:07:14 AM (00:04:30) Regarding the amended motion made by Anders Lewendal for the affordable housing ordinance, Thane requested that the change be made to include terminate, review & redesign (or replace) rather than solely terminate. Lewendal thought that when he was asked to restate the motion, which was voted on, he intended to state terminate only. CAHAB decided to table the approval of the minutes in order to review and revisit during the next meeting. VOTE to table minutes until next time: All in Favor – Motion Passes. E. 08:10:34 AM (00:07:50) Action Items: 1. Request for Impact Fee Assistance – HRDC: Hoover Way Major Subdivision (Jadin) Applicant will be requesting a variance to allow development despite the failing intersection of Baxter/Davis. 08:11:09 AM (00:08:25) Major subdivision requesting financial incentive for impact fee assessments. Applicant is proposing to split one large lot into 24 town house lots and 4 single household lots with some street improvements and two common open spaces. The parkland required has already been provided in an adjacent subdivision that has available credits available. 08:12:38 AM (00:09:54) The applicant has requested a variance from the level of service requirements concerning the Baxter / Davis intersection. 08:13:45 AM (00:11:01) HRDC is using incentives to keep the homes proposed affordable, including placing the land into a community land trust and they are also using some neighborhood stabilization programs which will offer down payment assistance, funded by the federal government. Other incentives include design elements, reduced required parkland, reduced parking requirements for each lot and utilizing reduced minimum lot sizes, concurrent infrastructure and housing construction, expedited review for affordable housing with Building division in addition to the request for the impact fee subsidy. 08:15:41 AM (00:12:57) Chair LaMeres explained the provided info sheet explaining available funds and the fact that the commission may be flexible with the amounts requested. Board member Thane explained that the board is able to request a budget amendment from the City Commission to allow for additional assistance over the current budgeted amount. 08:19:44 AM (00:17:00) Tracey Minuay stood up on behalf of HRDC to answer any questions regarding the requests presented. Tracey discussed their intentions with the funds and their goal to have the funds be utilized as a revolving loan process to continue to contribute to affordable housing. 08:20:23 AM (00:17:39) Board member Thane asked Minuay to explain how the loan program would work and how it would be paid back. Minuay explained that the loan would be repaid during the first transfer of ownership of the property. 08:23:06 AM (00:20:22) Community Land trust allows the titles to be severed between the actual land and the home and improvements. The land is maintained in perpetuity by the community land trust. The value of the home itself is what is transferred to the home owner. The owner pays a ground lease that varies in cost depending on other factors. 08:25:08 AM (00:22:24) Appreciation restrictions prevent the home from being sold to someone that does not qualify for affordable housing. Minuay explained how pricing restrictions work, typically limiting appreciation to 3-5%. Minuay also explained why the West Edge condominiums were not restricted to maintain affordability when transferred to new ownership. 08:29:24 AM (00:26:46) David Magistrelli provided some examples of other Land Trust projects and shared some other rates used by surrounding areas. 08:30:23 AM (00:27:39) Minuay explained Neighborhood Stabilization funds, using the West Edge Condominium project as an example. The group continued to discuss the logistics of the lending program. 08:39:31 AM (00:36:47) MOTION recommend approval for impact fee subsidy for Hoover Way major subdivision if it is determined that the affordable housing program meets the requirements of the City of Bozeman affordable housing ordinance: Kevin Thane MOTION SECONDED: David Magistrelli VOTE: All in Favor – Motion Carries (Board member Brian Guyer recuses himself from the vote as an employee of the HRDC.) 2. 08:40:33 AM (00:37:48) Request for Impact Fee Assistance – Summit Housing & HRDC: Timber Ridge Apartments, LP Requesting waiver of impact fees for development project. Applicant explained that their previous project, the Stoneridge apartments, were highly successful and are offered to residents at 60% AMI or below. He explained that they have a significant amount of people calling to be put on a waiting list and that there is already much interest in the Timber Ridge apartments. 08:44:19 AM (00:41:35) The lot has a Land Use Restriction for low income housing. The project will have 32 units, which was reduced from 42 due to Tax Credit pricing. The applicant is asking for as much financial support as possible. For impact fees, the amount of assistance requested is roughly $22K. Tracey Minuay explained how Bozeman allocates general funds to affordable housing where many cities only utilize the funds they received from HUD to support affordable housing in response to a question about why Bozeman is an affordable housing friendly community. 08:50:31 AM (00:47:47) Minuay explained why Tax Credit funds are so competitive and compared the Timber Ridge apartment application to another recently approved project – Larkspur. 08:51:39 AM (00:48:55) When asked how Bozeman compares to other communities in development costs, the applicant explained that it is comparable, but that the land cost is the biggest challenge. Other communities have other challenges that may increase the costs associated with development. 08:57:55 AM (00:55:11) In response to a question, the applicant explains how the regulatory environment of Bozeman compares to other communities in regards to cost. The applicant explained that the regulatory costs are not preventing development in the area, that the cost of land is the biggest draw back. 09:01:55 AM (00:59:11) The Applicant explained that Bozeman is the fastest growing population in the state of Montana at 3.4% per year, but that the senior population is growing at approximately 5% per year. 09:03:07 AM (01:00:23) The applicant explained what is causing the tax rate to change so rapidly. The rates are based on corporate tax rates, affected by the current presidential administration. Board member Thane asked about the point system and how that affects eligibility for funding. 09:06:45 AM (01:04:01) The applicant responded to a question regarding rent increases in relation to AMI. He explained that a market like Bozeman’s will result in rent being at the maximum AMI in order to interest investors. 09:09:58 AM (01:07:14) Commissioner Pomeroy asked what kind of incentives would encourage builders to produce affordable housing. The applicant responded by stating that in community with high need such as Bozeman would require something like land donation in order to make financing work. 09:15:48 AM (01:13:04) The applicant responded to a question regarding increasing AMI and how they deal with that with their residents. The applicant responded that they are willing to work with individuals to keep them in their home if the AMI increases beyond what they can afford. 09:23:59 AM (01:21:15) Chair LaMeres reviewed what the applicant is asking for.  Letter of support to MBOH  Recommendation to City Commission to support project  Impact Fee Support (estimated at $22K) 09:24:10 AM (01:21:36) Public Comment opportunity MOTION for CAHAB to provide to the Timber Ridge development a letter of support for state application process, a letter of support to the City Commissioners and to include a commitment to finance up to $25K in impact fee subsidies, should the project be approved: Kevin Thane MOTION SECONDED: Anders Lewendal Board member Hattie Baker Graham asked if the board were to approve an impact fee waiver, how that would affect the affordable housing incentives where town homes or single family homes are required to be built at 70% or below AMI to receive impact fee subsidies. Board member Thane responded that this is a separate program from the affordable housing ordinance. 09:27:33 AM (01:24:49) AMENDMENT to MOTION to include by implication the formula to calculate the amount necessary to provide impact fees subsidies for the affordable units as defined by the city. VOTE: All in Favor – Motion Carries (Board member Brian Guyer recuses himself from the vote as an employee of the HRDC.) 3. 09:28:38 AM (01:25:54) Request for Impact Fee & Down payment Assistance – HRDC: Beall Street Subdivision (WerBell) Proposal is for a two lot minor subdivision for two dwellings under the affordable housing project. Project would not work as a market rate project as it relies on reduced lot width and area. One unit would be priced at the 70% AMI rate and the other at the 90% rate. The incentives that are being requested apply only to the 70% AMI unit. The impact fee subsidy would be roughly $5200. The applicant is also requesting down payment assistance not to exceed $10,000 to be determined at a later date. The expected sales price of the units would be between $140K & $170K. 09:31:37 AM (01:28:53) WerBell spoke to how the expected sales prices for these homes were calculated in response to a question regarding updated maximum income and home pricing information. 09:34:50 AM (01:32:06) Public Comment Opportunity (none) MOTION: Having considered the request and relevant information, we recommend the approval of the Impact Fee subsidy requested for the HRDC Beall street minor subdivision if it is determined that the AHP meets the requirements of the affordable housing requirements. MOTION SECONDED: Anders Lewendal VOTE: All in Favor – Motion Carries MOTION: Having considered the request and relevant information, we recommend approval of the down payment assistance requested for HRDC’s Beall Street Minor Subdivision in an amount not to exceed $10,000, if it is determined that the AHP meets the requirements of the City of Bozeman Affordable Housing Ordinance: Kevin Thane MOTION SECONDED: Anders Lewendal VOTE: All in Favor – Motion Carries (Board member Brian Guyer recuses himself from the vote as an employee of the HRDC.) 4. 09:39:49 AM (01:37:04) Appoint CAHAB Sub-Committees to work on replacement of current Affordable Housing Ordinance(s) and CAHAB Action Plan CAHAB proposes forming two sub-committees Affordable Housing:  Brian Guyer  David Magistrelli  Kevin Thane  Anders Lewendal CAHAB Action Plan:  David Magistrelli  Kevin Thane  Anders Lewendal 5. 09:44:48 AM (01:42:04) Purchase of Land for HRDC Cabins: Board member Thane identified land that may be a good fit for affordable housing and would like these to be part of the discussion with the City Commission. a. 09:45:00 AM (01:42:16) Gallatin County Rest Home Thane met with City Commissioners regarding the 10 acres behind the Gallatin County rest home. They’re planning on retaining 5 acres and selling 5 acres. b. 09:48:06 AM (01:45:22) Davis Lane (extended) City-owned land (see map) This is an opportunity that needs to be explored, but the land is currently owned by the city. c. 09:49:39 AM (01:46:55) Other land Misc. other land available for purchase that could be explored for affordable housing. 6. 09:52:56 AM (01:50:12) Recommend City Commission approves MOU with MSU to conduct Affordable Housing Research for CAHAB. MSU students will be traveling to Boulder, CO and Missoula, MT to explore affordable housing options. MOTION for CAHAB to recommend that the City Commission approve the MOU with MSU to conduct affordable housing research for CAHAB and to provide necessary funding for fieldtrips for University students and members of CAHAB to garner more information on affordable housing: Kevin Thane MOTION SECONDED: David Magistrelli VOTE: All in Favor – Motion Carries 7. 09:57:40 AM (01:55:17) CAHAB budget recommendation to City Commission for Housing Fund. Board member Thane expressed concern regarding a budget amount of $74K to fund administrative support for an affordable housing position within the city. Thane requested to recommend that Community Development speak to CAHAB to justify this budget amount prior to the amount being implemented. Board member Anders Lewendal supported this concern. MOTION to seek clarification from Community Development on the budget item for administrative support for an affordable housing position within the city: Brian LaMeres MOTION SECONDED: Kevin Thane DISCUSSION: Board members decided that they do not need a formal vote, but asked that I-Ho bring this item to the City Commission’s attention. 8. 10:02:36 AM (01:59:52) City Commission Work Session agenda items 1. Housing Budget 2. CAHAB Goals 3. UDC Update and impact on affordable housing 4. Cemetery land to potentially be used for affordable housing. 5. Habitat for Humanity proposal for use of land at Oak Street & Flanders Mill 6. Status and future of affordable housing ordinances 1922 & 1954 7. Status and future of affordable housing action plan 2012 – 2016 8. Recommendation to use local land or in house resources for future housing initiatives as opposed to out of state consultants 9. Summary of thesis presentation by MSU student Kara Baldwin suggesting changes to cottage housing ordinance. F. FYI/Discussion 1. HRDC Monthly update (Heather Grenier) - Continued 2. GAR Gallatin Assoc. of Realtors Summary (Hattie) - Continued 3. 10:08:24 AM (02:05:40) MSU land for affordable housing Kevin Thane met with President Crusado at MSU and stressed the need to move forward with affordable housing, discovering that there is a long range plan created in 1998 that set aside land identified as “MSU West” for affordable housing. Thane stated that he charged them with seeing what they could do to move forward with this objective, despite the obstacles they listed in order to alleviate affordable housing issues city wide. 4. 10:11:23 AM (02:08:39) CAHAB Member updates and future agenda items  CAHAB discussed having a special meeting with Martin Matsen to discuss his ideas regarding the affordable housing ordinances  Board members discussed the CAHAB member’s terms that are set to expire. G. 10:13:52 AM (02:11:08) Adjournment 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. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301).