HomeMy WebLinkAboutHousing Working Group Summary Notes June2019
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Summary Notes
Housing Working Group Meeting #2
Date: June 11, 2019
Location: Bozeman Fire Station #3
Attendees:
Brian Popeil, SWMBIA
Connie Campbell-Person, Gallatin Valley Interfaith Association
David Magistrelli, Habitat for Humanity
Desiree Smith, Bank of Bozeman
Ellen Beck, Gallatin Association of Realtors
Erik Nelson, Real Estate Development
Jason Smith, Bozeman Health
Karin Jennings, Manufacturing
Kathi Thorson, Property Management
Kevin Thane, CAHAB
Brian Guyer, Missing Middle (Alternate)
Pat Strauss, Bozeman School District
Rob Pertzborn, Architect
Susan Riggs, Downtown Partnership
Terry Cunningham, City Commission
Heather Grenier, HRDC (Alternate)
Tracy Ellig, MSU
Mathieu Menard, County Planner
Scott McFarlane, Gallatin County Commissioner
Penny Zacharisen , Chamber of Commerce
City Staff:
Loren Olsen, Affordable Housing Program Manager
Marty Matsen, Community Development Director
Consultant Team:
● Christine Walker, Project Manager, Navigate
● Seana Doherty, Freshtracks Collaboration (Facilitator)
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Meeting Agenda
1. Welcome, Introductions, agenda, meeting agreements, process review
2. Feedback review
3. Introduction to Community Housing Toolbox
4. Workgroup Tool Identification/Prioritization
5. Close/Next Steps
Meeting Agreements
The group reviewed the following agreements to kick-off the session:
Outside Meeting Agreements
1. Be prepared: Review pre-reading materials and show up to Working Group
meetings ready to engage.
2. Show up + Engage: Work to make as many meetings as possible during the
process including: working group meetings, public workshops, and City Council
meetings. Voice your opinions at meetings and throughout the process.
3. Commit to the process: Agree to engage in the full housing action planning
process from start to finish. Consider being involved during the implementation
phase as well.
4. Serve as an ambassador: Outside of Working Group meetings, I will serve as an
ambassador of the process in the community to help build support for our
collective goals.
5. Follow meeting agreements: I agree to follow, to the best of my abilities, the
meeting agreements, established by the Working Group, at meeting #1.
In Meeting Agreements
1. Be ACTION focused: How do we address community needs, NOT should we
2. Be OPEN MINDED: No idea is a bad idea
3. Be COLLABORATIVE: Work together, listen, learn, and contribute
4. Disagreement welcome, interruption is not
5. Be CREATIVE: Focus on what can be done; don’t let current barriers be an
excuse to do nothing
6. Actively represent your organization/role, not your personal views
7. Stay on agenda, wrap up actions at the end of each meeting
8. Be PRESENT and prepared
9. Be INCLUSIVE: Allow all opinions
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Action Plan Process Review--Where we are in the Action Planning Process
The group reviewed the Action Plan Process graphic to understand where we are in the
Action Planning Process.
Feedback Review
An overview of feedback collected via May Community Workshops and through an
online questionnaire was shared with the Working Group. The purpose of the feedback
at this stage in the process is get a pulse on community opinions on four areas to make
sure that the work group is building a plan that aligns with opinions in the community.
Following are the areas that feedback was sought in:
1. Jobs/housing relationship
2. Number of units to be developed/preserved
3. Income targeting and pricing
4. Own/rent ratio
In summary, the feedback in the workshops and questionnaire pointed to the following:
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1. Jobs/housing relationship: build at a faster rate than job growth to keep up
with demand
2. Number of units to be developed/preserved: No metrics determined
3. Income targeting and pricing: All income levels should be the focus of the
housing action plan with a priority to the lower income levels
4. Own/rent ratio: Increase the housing ownership portion of the pie
Additionally, questionnaire feedback confirmed that housing was a top priority - 44% of
respondents – with another 36% ranking housing as a high priority.
A full summary of questionnaire feedback will be posted on the website at the end of
June.
Summary
Workshops
●Two Workshops -May 23,
Feedback: Guiding Principles, goals,
and objectives
●80+ community members
attended
○Thanks Housing Working Group
and CAHAB (Community
Affordable Housing Advisory
Board) members!
Questionnaire
¤525 Responses
1.Feedback from community on goals, objectives, priorities
2.Help WG stay in sync with community values as create plan moving forward
3.Future questionnaires
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Introduction to Community Housing Toolbox
The Working Group was sent the Community Housing Toolbox prior to the meeting and
were expected to read the packet prior to the meeting. About 40 tools were organized
into six categories:
1. Incentives
2. Regulations
3. Partnerships
4. Preservation/Rehabilitation
5. Housing Programs/Initiatives
6. Funding
Tools currently utilized in Bozeman were in bold and the housing consultant team
recommended about 25 tools, identified with an asterisk (*), for enhancement or
utilization based on Bozeman housing needs to-date, experience in other communities,
and what may be most effective to help produce more community housing in the near
and longer term. In doing this, the housing consultant team focused on certain criteria
that have defined the most successful housing plans:
Term of implementation (near, mid- and long-term): incremental approach
considering current capacity, building blocks, stepping stones, growth in
capacity: the need for near-term progress and longer-term
stability/effectiveness.
Variety of housing: multiple tools to address multiple needs; carrots and sticks to
ensure and assist production.
Range of contributors/community involvement: fairness
Sources of funds to bridge the capital gap
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Workgroup Tool Identification/Prioritization
The components of a successful Community Housing Action Plan were reviewed to
inform tool identifiation and prioritization.
The Working Group then reviewed the Community Housing Toolbox briefly, focusing on
the tools that were identified with an asterisk (*) as being the most relevant and
promising for Bozeman.
After reviewing the top Tools in each category, the Working Group was asked to walk
about the room and provide comments at six stations and identify tools of their own
that they felt should be considered. Participants were then asked to “vote” on the
tools. The following columns in the below tables summarize this input:
Green “Yes”: shows the number of YES dots placed next to the specific tool. This
represents participants that feel this tool should be considered.
Yellow “No”: shows the number of NO dots placed next to the specific tool. This
represents participants that feel this tool should NOT be considered or needs
enhancement.
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Comments: These were written comments received at the session from
participants.
New tools identified by participants are noted as such in their title.
Incentives
Green
“Yes”
Yellow
“No”
Tools Definition Comments
4 0 Density
Bonus
Providing addition density or floor area
in exchange for restricted community
housing. Must be large enough to
entice development yet small enough for livability and compatibility. Can be
used with impact fees or inclusionary
zoning.
Would need more restrictions on other
densities to be effective
6 0 Fee Waivers*
Water/sewer tap fees, impact fees,
building permit or other fees waived in
part or whole to reduce cost to build
and encourage the construction of
restricted community housing. General
funds or other source needed to cover
cost of fees waived.
Include all types of housing with the fee
waivers “condos, rentals, etc.
Include condos and townhomes
Include condos and rentals
0 0 Fast Track
Processing
Gives priority to development
applications with restricted community
housing.
3 0 Accessory
Dwellings*
Allowing/encouraging accessory
dwellings if used by residents and
employees. Appropriate in many
neighborhoods yet compliance
monitoring is needed.
Allow in house ADU within R-1
Increase the supply of ADU units
Decrease the cost of ADUs (i.e.
permitting, impact fees, parking
regulations)
Provide incentives and release
restrictions for ADUs in new subdivisions
Provide incentives and remove
restrictions for ADUs in new subdivisions
18 6 Removal of
Regulatory
Barriers*
Updating/modifying code provisions
and procedures that impede
community housing development.
Complex PUD requirements can be
barriers to building a variety of dwelling
types. Complete code review and
rewrite might be required.
Up-zoning, by right duplex and tri-plex
development in all R zones
Up-zoning
Prohibit 1-story in commercial
Change PUD points to allow more
options for affordable projects to meet
points (i.e. LEED-ND or Enterprise Green
Communities.
Remove regulatory barriers
Bad to say “removal”, adjust is better
(x2)
Reduction in Park Dedication
requirement (city gets benefit, not
developer) – x2
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5 0 Flexible
Development
Standards*
Reductions in parking, setbacks, open
space, height limits, road widths, etc. to
reduce the cost to build and
encourage a variety of dwelling types,
including small lots for modest/tiny
homes, live/work units, and mid-size
multi-family (duplex to 4-plex).
Add code section for tiny homes on
wheels
Flexible development standards – x4
Remove code restrictions on residential
building except for life/safety codes – x2
Allow for greater height
Allow tiny homes on wheels state statute
Provide significant incentives
4 1 STR (Short
Term Rental)
Restrictions
Prohibitions in zones where employees
and residents reside, limiting the
number in defined areas, requirements
that dwelling units be occupied as
primary residences part time,
prohibiting STR of restricted community
housing.
Short-term rentals to condos
Regulations
Green
“Yes”
Yellow
“No”
Tools Definition Comments
1 4 Inclusionary
Zoning (IZ)*
A percentage of residential units in new
subdivisions/ PUDs are restricted
community housing. Market homes
support below market units. Only
effective if new subdivisions/PUDs are
developed.
Expand to rental – x4
Inclusionary zoning
Tie with incentives (park)
Yes, include rentals in all
1 0 Residential
Linkage
(also called
Impact Fee)
Requiring new residential development
to contribute to restricted community
housing relative to employee demand
generated by the new residential units.
Mitigation rate often increases with
house size. The fees in lieu provide a
revenue stream that fluctuates with
building activity. Nexus required.
All new employers contribute $1,000 per
employee to go to HRDC for rental
assistance program
10 4 Commercial
Linkage*
Requiring new commercial
development to provide restricted
community housing for a portion of
employees generated. Nexus required.
Alternatives in application and
compliance methods (on site, off site,
land, fees in lieu) create flexibility yet
complexity.
Employers
Incentives to help with commercial
linkage
This would drive business “jobs” away from
Bozeman
Unintended consequence
0 0 Annexation
Policies*
Negotiating restricted community
housing as part of annexation
agreements. Policy based.
Municipalities have discretion in
negotiations.
Annexation Policies!
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Partnerships
Green
“Yes”
Yellow
“No”
Tools Definition Comments
23 0 Public/Private/Institutional
Land*
Partnering with developers
to build homes on a publicly-
owned site. Competes with
other uses for public land.
RFQ/RFP process effective
for selecting development
partners. Public ownership of
land can be retained with
long term leases.
Be aggressive in approaching non-
profits and philanthropic
organizations about $$
Difficult for school district = current
growth and limits on legal ability
Land acquisition via funded
partnership with employers,
government, etc.
Public/private/institutional (school
district)
12 0 Employer Assisted
Housing*
Master leasing,
development, mortgage
assistance, units for
temporary relocation. Public
sector can provide TA and
develop projects. Housing
for emergency services
personnel and seasonal
workers often provided by
employers.
How is this different from
“commercial linkage”
Absolutely develop community
inventory of land ownership
Provide employers with tools to
evaluate possible programs
Make employer programs more
incentive based not mandatory
Open up financing options
Target to larger employers
Create workforce housing
workshop for employers
Employer assisted housing
Continue to link housing with transit
opportunities
More employer programs through
Urban Renewal Districts
0 3 Property Management Contracting to manage
rental units. Could work both
ways – public sector hires
private firm or private sector
hires public/non-profit.
Could be used with
Employer Assisted Housing.
10
Preservation
Green
“Yes”
Yellow
“No”
Tools Definition Comments
5 0 Housing
Rehabilitation and
Weatherization*
Repairing, updating, enlarging,
improving energy efficiency, and
providing handicapped
accessibility, typically with Federal
or State grants. Staff/time intensive.
Tiny homes with potential to own
Low interest loans to rehab homes
0 0 Condominium
Conversion Policy
Limiting or prohibiting conversion of
apartments to condominiums to
retain rental housing. May require
some portion of converted units to
be restricted community housing or
provide first right of refusal of sales
to apartment occupants, among
other conditions.
0 2 Acquisition of
Market Units
Usually involves investing public
funds to lower the sales price in
exchange for restricted community
housing. Inability to obtain condo
mortgages can result in units being
rented. Public sector purchases
can drive up prices for low-end
market units.
8 3 No-Net
Loss/Replacement
Policy*
Requiring replacement of below-
market dwellings occupied by
residents when redevelopment
occurs. Similarly-priced units should
be replaced on site or another site,
or a fee-in-lieu of replacement
could be allowed. Demolition tax
used to fund replacement.
No net loss similar restrictions as TIF
projects
Provide similar plan for displaced
individuals as TIF regulations
No net loss replacement particularly
lower income
Must define substandard/unsafe
housing that is best removed/redex
Ordinance requiring replacement of
low-income housing when it is
removed for more expensive
development
Likely to disincentivize redevelopment
of existing low-value developments,
neighborhoods
Expand to rentals to help lower
income renters afford rent
11
Housing Programs/Initiatives
Green
“Yes”
Yellow
“No”
Tools Definition Comments
0 1 Public Sector
Development
Initiating, designing, financing and
constructing dwelling units by
municipalities, counties and/or housing
authorities. Less cost, greater quality
control and similar developing other
public infrastructure. More financial risk
and specific expertise required.
None
0 0 Home Buyer
Assistance*
Down payments or second mortgages
for purchasing units. Can be used for
restricted or market units.
None
7 0 Land
Banking*
Acquiring land through purchase, USFS
trades, donation (non-profits) for
eventual community housing
development when specific project
not known.
Land banking! Proactive approach
Land banking
Land banking with deed restrictions x2
Who should do it?
HRDC/City of Bozeman x 2
How? Taxation, grants and regulation
Where? Infill areas current mobile parks
Buy land during downturns from banks.
1 0 Habitat for
Humanity*
International organization with local
chapters that use volunteers and
donations to build modest homes.
Inventory of homes may not be
permanent.
None
0 0 Self Help
Build
Home buyers receive low interest loans
and technical assistance for their
construction of homes. Requires large
time commitment.
Include the very low
3 0 Co-op or Co-
Housing
Common ownership and
management of purpose-built
communities. Co-op ownership can be
used to share large homes by multiple
employees and to preserve mobile
home parks.
Expand income to include all income
levels
All income levels all on one piece of
property
12 0 Community
Land Trusts*
Non-profit, community-based
organizations that develops housing
and ensures stewardship and
perpetual affordability by maintaining
ownership of the land and leasing it to
those who own the homes built on the
land.
Create umbrella CLT organization
CLT x3
Make it community wide
Who – HRDC or Habitat
12
6 0 Senior
Housing*
High density, smaller, low maintenance
units designed for retiring residents.
Can free up housing stock for
employees, esp. if strategy prevents
purchase by second-home buyers or
STR conversion.
Can senior housing be co-op housing?
13 0 Deed
restricted
housing
(permanent)*
Dwelling units permanently restricted
by occupancy (local
employee/resident), income level, and
with rent/resale restrictions to retain
affordability in rising housing cost
markets.
Deed restricted housing (permanent)
maintains volume of entry level housing
Permanent deed restrictions x2
Deed restricted housing
12 - Permanent
supportive
housing (PSH)
and
Transitional
housing*
PSH is a model that pairs housing
assistance with case management
and supportive services to help
chronically homeless individuals and
families lead more stable lives and
help them transition from homelessness
to home security.
Transitional housing refers to a
supportive – yet temporary – type of
accommodation that is meant to
bridge the gap from homelessness to
permanent housing by offering
structure, supervision, support, life skills,
and training.
None
New Idea: Create aging in place units. How? Creating Incentives for building disability
accessible units and units with caregiver apartments. Create model like Dudley Street in
Boston where all income and age live on one property.
FUNDING
Green
“Yes”
Yellow
“No”
Tools Definition Comments
9 0 General Funds* An annual or occasional budget
allocation primarily to support
staffing, pre-development and gap
financing.
Increase general fund and city wide
affordable housing Mil levy
Increase funding in city wide manner
Develop loan fund for construction
and land acquisition
1 0 Impact (or
linkage) Fees*
A fee directly linked to the need for
community housing generated by
new development through jobs
created. Nexus required.
None
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11 2 Taxes*
Sales, property, lodging, real estate
transfer, excise tax. Voter approval
required in most states. Revenue
stream can be used for most
housing-related activities. Recent
ballot initiatives have had mixed
results. Approval requires extensive
public education.
Sales tax x5
Sales tax on non-necessary items
Vacancy tax implemented in
Vancouver – 1% of assessed property
value or rent to income qualified
tenant long-term
Float a bond (open space bond etc.)
Do no harm
3 0 LIHTC
(Low Income
Housing Tax
Credits) *
Provides project equity for public,
non-profit and private developers.
Widely used nationwide. Often done
through public/private partnerships.
Multifamily sites needed.
Be proactive in identifying properties
for development
Reduce buyout options
0 0 Special
Improvement
District (SID)*
Special Improvement Districts (SIDs)
are typically formed to fund public
improvements, typically
infrastructure (roads, sewer, etc.) or
maintenance of City facilities or
services. Costs are distributed across
the properties within the SID that
benefit from the improvements. Use
specifically for housing is not
common.
None
0 0 Tax Increment
Financing
(TIF)*
Allocation of new property and/or
sales tax in urban renewal districts
(URD). Usually supports economic
development projects; use for
community housing is not common.
Authorized to improve economic
conditions with or connecting to an
URD in MT. (see §7-15-4288 MRA)
TIF
0 0 Debt Financing
with Favorable
Terms
Low interest loans, tax exempt
bonds, certificates of participation,
HUD multifamily loan insurance and
other forms of development
financing available to housing
authorities, cities, counties and some
non-profits.
Debt financing with favorable terms –
100% LTV, 30 – 40 amortizations
0 0 Private
Donations/Grants*
Tax deductible contributions to a
non-profit organization, which
purchases or develops housing.
Competes with other charitable
causes.
Donations to non-profit builders
Philanthropic grants
14
1 0 Federal and State
Grants/Loans –
CDBG. HOME,
USDA/Rural
Development,
Section 8*
Can only serve households earning
<80% AMI. Competitive and
complicated grant application and
administration process. Entitlement
City if population reaches 50,000.
None
6 0 Opportunity Zones The Opportunity Zones investment
incentive was established in 2017 to
encourage long-term private
investments in low-income
communities. Two Opportunity Zones
are eligible to receive private
investments through opportunity
funds in the Bozeman area. The
program does not explicitly address
below-market community housing but may be designed to do so.
Didn’t Bozeman get one of these?
New Ideas (Implementation/management)
Community Housing Fund (1 green dot)
Community Housing Fund – local investments
Revolving loan fund for acquisition and preservation
Build on connection schools to construction career track
Local preference – Big Sky affordable housing requires 1590 hours of employment in
community
Next Steps
Summary of next steps:
1) Send summary notes from meeting to the Working Group
2) Post Questionnaire and Workshop Summary on website—send links to Working
Group and to community members signed up
3) Research strategies based on tools prioritization and send to Working Group prior
to July work session