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Home My WebLink AboutCAHAB Minutes 02-13-2019 Community Affordable Housing Advisory Board February 13th, 2019 | 8 AM | City Hall Commission Room: 121 N. Rouse Ave A. 08:01:33 AM (00:03:14) Call meeting to order Present Were:  Steve Wheeler  Noel Seeburg  Greg Stratton  Kevin Thane (Board Chair)  David Magistrelli  Jodi Bartz  Dulaney Collins  Marty Matsen (Staff Liaison) B. 08:01:41 AM (00:03:23) Changes to the Agenda C. 08:02:07 AM (00:03:49) 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. 08:03:00 AM (00:04:41) Minutes for Approval  1.9.19 Minutes (PDF) o 1.9.19 Video Link 08:02:55 AM (00:04:37) MOTION to approve minutes – David Magistrelli 08:03:01 AM (00:04:43) MOTION SECONDED: Noel Seeburg 08:03:09 AM (00:04:51)VOTE: Motion Carries 7-0 E. Action Items 1. 08:03:40 AM (00:05:21) HRDC Boulevards Presentation (Tracy Menuez) Tracy Menuez, Associate Director of HRDC, provided updates regarding two affordable housing projects that the organization is working on in connection with the MT Board of Housing Low Income Tax Credit Program. Ms. Menuez announced that they will be submitting a letters of intent in April for the Timber Ridge Apartments and The Boulevard Apartments. Ms. Menuez provided a brief overview of the proposed affordable housing projects. She explained that their objective is to convert these projects from a Section 8 MOD rehab subsidy, at risk for market redevelopment due to the contract being renewed annually, over to a Rental Assistance Demonstration (RAD) conversion which would provide a 20 year Housing Assistance Payment Contract (HAP). Ms. Menuez stated that they’ve been working closely with Summit Housing in order to attempt to combine these projects in an application and asked the board to consider a letter of support and a future request for funding. 08:09:00 AM (00:10:42) Ms. Menuez responded to questions from board members regarding funding and the project timeline. 2. 08:15:12 AM (00:16:54) GMD Development Update on the Affordable Housing Development near Lowe’s (Steve Dymoke) Steve Dymoke returned to the board to make a formal request for funding for the project. The site is 16 acres along Tschache Lane and would provide 240-280 affordable units. Half of the units would target households at less than 50% AMI and the remaining half would target 60-70% AMI. 08:23:10 AM (00:24:52) Mr. Dymoke explained the income requirements in response to a question regarding income averaging. 08:25:51 AM (00:27:32) Mr. Dymoke summarized the initial 90 day due diligence period and requested $500,000 or $1,850 / unit stating that this would provide a critical funding gap that would leverage approximately $32 million in tax exempt bonda in addition to $20 million in tax credit equity. 08:33:02 AM (00:34:43) MOTION for affirmation of the project: Steve Wheeler 08:33:06 AM (00:34:48) MOTION SECONDED: Jody Bartz 08:33:13 AM (00:34:55) VOTE: Motion Carried 7-0 08:33:49 AM (00:35:31) Board Chair, Kevin Thane and board member Jody Bartz disclosed their involvement in the project outside of their roles on the Community Affordable Housing Advisory Board. 08:36:37 AM (00:38:19) Architect, Rob Pertzborn of Intrinsik Architecture, spoke to the project in regards to some of the requirements and design challenges they’ll be seeking support for as the project progresses. 08:41:42 AM (00:43:24) Chair, Kevin Thane and Director Matsen discussed how CAHAB can support the project in discussion without interfering with related boards’ duties. 08:43:46 AM (00:45:28) Commissioner Cunningham asked Mr. Dymoke about his preference regarding project funding versus a low interest loan. Following, board members and Mr. Dymoke discussed ways in which the project could be supported financially. 08:51:32 AM (00:53:14) Public Comment Kevin Sylvester, Executive Director of Family Promise, a resource for homeless families, made comments regarding the challenges of child care and affordability within Bozeman. Mr. Sylvester stated that their organization is interested in working with GMD development to provide a child care facility on the site to provide a more affordable option for parents in need. 08:57:40 AM (00:59:22) Tracy Menuez of HRDC voiced support of the project in order to provide more affordable housing in the community. 08:57:51 AM (00:59:33) Chair Thane read an email from Buck Taylor, Director of Community Development Administration for Community Health Partners. The letter voiced support of a joint model for permanent supportive housing that could be developed in conjunction with their new health center space, proposed at the GMD development site. 09:28:25 AM (01:30:07) Board members return to the discussion regarding a recommendation of funding for the GMD Development project on Tschache Lane. Mr. Dymoke provided more information regarding their timeline and need for funds as related to the due diligence period. 09:29:11 AM (01:30:53) Board member, Greg Stratton voiced his 100% support of the project, but he asked whether the board was comfortable with depleting the affordable housing fund in order to meet the funds request. Mr. Stratton continued by saying that he’d be more comfortable if they were able to spread the funding request over more time and that he would not like to drop below $100,000 in the affordable housing fund. 09:31:32 AM (01:33:14) Chair Thane suggested that they select a number for funding to recommend to the City Commission so that they can put together a letter of support for approval at the next board meeting. 09:33:37 AM (01:35:19) MOTION to move the project forward with a recommendation of 100% of the funding request: Steve Wheeler 09:34:19 AM (01:36:01) MOTION SECONDED: Jodi Bartz 09:35:12 AM (01:36:54) Discussion: Mr. Stratton explained that the ‘bang for the buck’ aspect of the project in that $1,800 per unit cost for the city is much better than the $15,000 contribution per house for his previous affordable housing projects. Following, board members discussed how they could better make the numbers work, but that they support the project in principal. 09:36:12 AM (01:37:54) Chair Thane clarified that the board provides a recommendation for the full funding request of $500,000 and that the details of whether the funds will be worked out over multiple fiscal years and the structure, loan vs. grant, would be worked out in the future, but that they wanted to provide GMD Development with the encouragement necessary to move forward. 09:37:26 AM (01:39:08) VOTE: All in Favor – Motion Carries 7-0 3. 09:01:12 AM (01:02:53) Cont’d Discussion of CAHAB Goals and Priorities for 2019 09:00:50 AM (01:02:32) Board members continued discussing the goals and priorities of CAHAB for 2019 beginning with funding. Board member, Steve Wheeler explained that banks do not have specific funds available for Community Reinvestment Act (CRA) loans, but rather they seek ways in which they can provide funds to be used for this purpose. Mr. Wheeler explained that banks receive credits when they’re involved in projects that use CRA eligible loans and investment opportunities. Following, Mr. Wheeler offered to arrange to have a banker present to the board and educate members on the topic of Community Reinvestment Act funds. 09:10:07 AM (01:11:49) Board members discussed a possible short term goal of pushing for reengineering on an extension of Fowler to provide an affordable housing opportunity. F. Non-Action Items 1. 09:13:40 AM (01:15:21) Affordable Housing Fund Status Update (Brian LaMeres) City of Bozeman Controller, Brian LaMeres provided an update regarding the Affordable Housing Fund. Following, the group held a general discussion regarding potential fund revenues from cash- in-lieu payments, which are due upon final plat approval. 2. Affordable Housing Needs Assessment and Action Plan Update (Marty Matsen) 3. 09:22:25 AM (01:24:06)Status Update on the Search for a New Affordable Housing Program Manager (Marty Matsen) Director Matsen provided a status update on the efforts to fill the Affordable Housing Program Manager position. Director Matsen stated that they expect to do interviews within the next several weeks and they hope to have the position filled in early April. G. FYI/Discussion 1. 09:38:08 AM (01:39:49) HRDC Monthly update (Menuez) o Warming Center Update o Willow Springs Update (Previously Hoover Way) 2. 09:39:44 AM (01:41:26) GAR Gallatin Assoc. of Realtors Summary (Seeburg) 3. 09:44:21 AM (01:46:03) Date Selection for Ethics Training H. 09:49:17 AM (01:50:58) Adjournment For more information please contact Lacie Kloosterhof at lkloosterhof@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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