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Home My WebLink About05-14-18 City Commission Packet Materials - A2. Affordable Housing Program Update and Work Plan Approval - SUPPLEMENTAL MATERIALS ` l 5/14/2018 AHO Successes Partnerships for the Closing � �a t,. of Homes &li` r.;y t+" o Kllday/5)ratton I' o HRDC o Slockmon's Banl: (1-1,of the West o American The Company o Home-Buyers • 3 homes moved into o Realtors • 4 more going under contract o City of Bozeman Affordable Housing • Projects o Larkspur Commons—136 Units o West Edge Condos—84 Units o Stone Ridge Apartments—40 Units Affordable Housing • HRDC o Warming Center—287 Individuals(over 7500 nights) o Housing First Village—Partnership with MSU,City&HRDC to develop model units that meet all code standards. o Concept Plan submitted for Griffin Village 0 M'A fA 2 5/14/2018 Affordable Housing • HRDC o Homeownership Willow Springs-PUD 24 Townhomes in a land trust model "Humble Homes"-West Beall Homebuyers Education-340 households Down payment Assistance o HOME,Big Box Fund&City AHO Affordable Housing • Community Conversations o LeadersRlle Company o Won-profits(HRDC,Thrive, o MSU—class and staff Mountain Top Arts,Habitat for o Gallatin Association of Realtors Humanity( o ERA Landmark o Bozeman Area Community o Chamber of Commerce(Exec Foundation Board&Full Board) o Bozeman's Livable Communities F3 OX F. r Strategic Plan 4.5.1a Develop a Comprehensive Affordable Housing Action Plan that includes but is not limited to: 1. Mandates the creation of affordable housing across otl dwelling unit types. 2 Provides the prescribed fle*ibiitty in the manner in which the mandate can be accomplished. 3. Provides a substantial,broad-based and reliable source of funding for the construction of affordable housing and for affordable housing loans. 4. Actively encourages Bozeman's major employers to develop workforce housing programs far their employees. BOZEMAN- 5/14/2018 Median Home Sale Price Q1 2016-18 Rentals Rental Rates o$1022 per month 2 bedroom •Rates continue an upward trend c,Vacancy Rates •Continue to sit around 0-1% PO-I, IAl,4" Rentals • Affordable Units •Wait Lists o HRDC-40 persons/households o Larkspur-136 Units o Stone Ridge-18 persons/households o Legion Villa-12 persons/households o Alliance Property Management-All Full no wait list maintained •Haggerty Ln,Comstock Apartments,Bridger Apartments,Baxter Apartments,Pond Row Apartments F�0 Z E-,M A N! air 5/14/2018 Affordable %of MonthlyIncome 3 Housing • When You Pay t ®.Housing more than 33%of W Food i3 your ncome io Health Care housing it effects ys other areas. IS Transportation 111 Childcare M Other i i Affordability Housing Costs as a Percent of Household Income,2016' 60% 50%L- 50.1 4t.4% 40%T 30.0% 30.0% 30% —... 20% — 10% 0%+- -- Breeman city,MT Montana .Monthly cost>30%of household income •Gross rent>30%of household income B 0 Z E FiAN"r _ Residential Construction Trends Housing Starts by Type I.of Dwellings) i l l t t i r t r Single Household 143 161 247 388 283 266 296 350 ADU 2 10 11 6 13 14 9 29 Tmvnim— 21 4 38 74 i 77 24 72 53 Duplex 8 8 28 14 40 35 74 112 Multi(3) 68 33 111 332 495 443 282 272 5 5/14/2018 Affordable Housing Ordinance Updates Affordable Housing Ordinance 1 B Numberof persons in Household:ism ' 1 2 3 4 5 i' $39,788 $45.472 $51,156 $56,840 $61,387 :1 $45,472 $51,968 $58,464 $64,%0 $70,157 '1 $51,156 $58,464 $65,772 $73,080 $78,926- rl $56,840 $64,960 $73,080 $81,200 $87,696 Affordable Housing Ordinance 1 Studio 12Bedmom 3t-Bedmom.(AMI Mlf nri (Alpeison(AM1 for 2•pemn': for4-person household) Household) household) $151,346 $173,291 $216518 1' 1, S204S58 $235,936 $292,297 D,(3f(:1`Il.71 Mn. 6 5/14/2018 Affordable Housing Ordinance I Y 1-2 Bedroom 3+Bedroom $229,374-$173,291 $314,407-$216,518' $55,453 $97,889 Affordable Housing Ordinance Refinement of application,plan and forms for developers/builders Refinement of closing documents Affordable Housing Ordinance Tracking of affordable homes built and sold,down payment assistance utilized and other AHO incentives Working with partners to improve the process 7 5/14/2018 Affordable Housing Ordinance Ideas for Consideration o Adding a pricing tier for 3-person households o Revisit whether the city's long-term goal is(should It be creating a stock of Affordable Homesl •Affordability Period far Dwellings o Incentives •Impact Fees&Down Payment Assistance—budget if lots of projects me through •Review incentives for effectiveness Current Pricing Structure • 4t t�1j';fd°F • Add a tier for 3-Person Household Affordability Period Current ordinance requires owners to live for 2 years and then the home can be sold off at market rate. The non-cash subsidy lien will be recaptured but the house will be lost as affordable stock. 8 5/14/2018 Alternative Means of Compliance Land Donations o Develop a program for land donations and how we can advance the development of Affordable Housing projects. Cash-in-Lieu o Develop a program for cash-in-lieu payments. • Down payment&impact fee assistance •Affordable rental opportunities for residents at or below 60`y AMI •Other uses approved by the city commission The Housing Continuum Nee•Single Faintly&'I—Homes Provided by the&-larer • For Sale Units f E+ne., SehiJizN �,.•',. SN« H�fng /Alen ngk .,;•Q^'!�'lP,' HaLLdng Sevonal lfarkel Market ! r,.r amkea rate rate t 0 E?`�:°A h-! mntals rentals -hip .�._ Strategic Plan 4.5 b.Develop a Comprehensive Affordable Housing Action Plan that includes but is not limited to: 1. Mandates the creation of affordable housing across all dwelling unit types. 2. Provides the prescribed flexibility in the manner in which the mandate can be accomplished. 3. Provides a substantial,broad-based and reliable source of funding for the construction of affordable housing and for affordable housing loans. 4. Actively encourages Bozeman's major employers to develop wakforce housing programs for their employees. 9 5/14/2018 Work Plan Short-Term 2018/19 Community Affordable Housing Advisory Board(CAHAB) Revisit the CAHAB duties to emum consistency vnlh the City's Strotegc Plan Devetop processes for the dfferent components of the Affordable Housing Program os they relate to CAHAB CAHAB membersop requrements State of Montana Community Development Block Grant Planning Grant Application(4.5.b3) M.0"to help offset the cost of o housing needs os—o—nt and action p".an development Work Plan Short-Term 2018/19 Continued Community Conversations-build a community based process and build engagement for action plan development and implementation c Nonp ofit community Inter Neighborhood Council Bozeman Library City Sloff Business cc,, r mity Rea'Estate Community iq Work Plan Short-Term 2018/19 Comprehensive Housing Needs Assessment(4.5.1b) The Housing Contiraxnn-data around all.spec, (Emergency/Iramitton l/Rentoh/OvmensNp) o Infrastructure Rransportotion o Economics Regidafiom(MINn Bozeman and what are other communities doing?) Create a RFP for the process Coord-fe with other juriscgctions(County&City of Bekyade) Coordrwte with nonyoverronentol agencies doing hooting work U0r EY`3 f't Y'{w. 10 5/14/2018 Work Plan Short-Term 2018/19 Refine the Affordable Housing Planning Processes within the Community Development Department o Affordable Home Plans/Applications/Impact Fees o Reimbursement Processes o Working with Planners o Development Review Committee o Outreach Material(flyers and forms) o Website Updates o Partner Processes Work Plan Long-Term - 2019 Development of a Comprehensive Housing Action Pian(4.5.b) Pert"City of Bowman',Affordo',e Housing Strategc Action Pian Ordinance updates to strengthen and improve (4.5.bl/2) Consider condomnZun,and rental stmctue Cash-in-Lieu and Land Donations(4.5.b3) c Oty support for LIMC project app5a io How much funding wou'd be needed Ea E.f Z t.:.t'tAPw Strategic Plan Develop a Comprehensive Affordable Housing Action Plan that includes but is not limited to: 1. Mandates the creation of affordable housing across all dwelling unit types. 2. Provides the prescribed flexibility in the manner in which the mandate can be accomplished. 3. Provides a substantial,broad-based and reliable source of funding for the construction of affordable housing and for affordable housing bans. 4. Actively encourages Bozemon's major employers to develop workforce housing Programs for their employees. B 9Z 1`u'f ESA.IN 11