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HomeMy WebLinkAbout01-20-11 Community Affordable Housing Advisory Board minutes.docx City of Bozeman Community Affordable Housing Advisory Board (CAHAB) Meeting Minutes January 20, 2011 12:00 pm – 1:30 pm Madison Room, Bozeman City Hall Attending: Brian LaMeres (City of Bozeman Finance Department), Dave Magistrelli (Community Representative), Mary Martin (Community Representative), Jan Bergman (Community Representative), Daniel Simonich (Community Representative) via telephone, Carson Taylor (City Commission) arrived at 12:45 Absent: Kris Keller (Community Representative) Staff : Tracy Menuez (HRDC), Tim McHarg (City Planning Department), Doug Riley (City Planning Department), Brian Krueger (City Planning Department), Dave Skelton (City Planning Department) Public: Scott Keiper, Summit Housing Group; Nathan Richmond, Summit Housing Group; Patty Kent, Western Montana Mental Health; Jason Leep, Realtor; Chris Budeski, Meadow Creek Representative A.Call to Order Chairman LaMeres called the meeting to order at 12:05 pm. B.Changes to Agenda - none C.Approval of Minutes – The minutes of the 2, 2010, December 28, 2010, and January 6, 2011 meetings were reviewed. Motion to approve the minutes as written provided by Mary Martin, second by Dave Magistrelli. Motion approved unanimously. D.Public Comment There was no public comment. E.Action Items 1.Presentation by Summit Housing Group regarding LIHTC application Scott Keiper and Nathan Richmond from Summit Housing group presented information to the CAHAB regarding their application to the Montana Department of Commerce for the LIHTC program. They provided a brief overview of the LIHTC application process, followed by a presentation on their project. Mary Martin questioned the rents proposed for the 60% units; she felt they were above market-rate rents in the area. Nathan replied that they would likely discount the 60% units; their pro-forma built in an approximate 20% discount from market. Nathan informed the CAHAB that the project would likely request impact fee reimbursement at some point in the future, which would allow them to provide lower rents as well. Tracy explained to the board that this was their first opportunity to gather information regarding the project and provide feedback to the developers. Daniel asked what would happen if they did not get the LIHTC funding; Nathan responded that they would be forced to renegotiate the option on the property and apply in 2012. Nathan also mentioned that Summit Housing is working on a rental rebate program with the HRDC to help solid, long-term customers enter homeownership. Scott informed the CAHAB that MBOH will receive comment on projects through the end of February. Tracy added that if the board chooses, she can draft a letter to send to MBOH. 2.Funding request from Western Montana Mental Health for Housing project Mary Martin, Community Representative, declared a conflict of interest for this agenda item as in her role as Housing Director for the HRDC she provides services to WMMH. Patty Kent, representing WMMH and the HOMEStead project, presented their request for impact fee reimbursement and a short-term loan for their rental housing development. She explained that WMMH is applying to the HOME program for grant funding to construct 6 units of rental housing that rent for approximately $225 per month. This rent is affordable to an individual earning as little as 12% of the Area Median Income. She reviewed the funding request that had been submitted to the board (attached). Brian asked what the impact of debt service is to the project. Patty responded that their goal is to complete each project without long-term debt, which allows them to maintain very low rents without being dependant on HUD rental subsidies. Doug asked if the impact fee estimates were from the planning department; Patty replied that they were. Brian asked if there were other facilities like the proposed project in Bozeman. Patty replied that other than Eck house (which was also developed by WMMH) that there were not. Brian asked about the source of funding for the request. Tracy replied that they source would ultimately be decided on by the Commission if they decided to fund the request. Possible sources would include mill funds for the impact fee reimbursement request; the loan fund request could come from a variety of sources including: mill funds, Big Box, or CAHAB RLF. Tracy asked how the funds are leveraged. Patty replied that they are leveraged by the HOME grant ($500,000) and nearly $5 million in development on the mental health campus. Daniel asked how much funding would be left if this request were to be funded; Brian replied that he didn’t have exact numbers but that it was roughly $300,000. Dave Magistrelli made the motion to approve the request for $75,090 in impact fee reimbursement and a low interest loan of up to $46,800, with the sources to be determined by the commission. Jan Bergman provided a second. The motion carried with 4 votes for, none opposed, and Mary Martin abstaining from the vote. Tracy will send a letter to Doug Riley to outline the CAHAB’s decision. 3.Request for waiver from Workforce Housing requirements by Meadow Creek Planner Dave Skelton reviewed the request by Meadow Creek for a waiver of workforce housing requirements. The original WFH requirements would require 8 lots (3 detached and 5 attached) be placed for sale according to the formula outlined in the ordinance. It is generally agreed that these lots would not likely sell, creating a loss of parkland without creating affordable housing. Chris Budeski, representative of Meadow Creek discussed with the board the developer’s attempts to arrive at another solution, either cash in lieu or donated land. Both have proven difficult. Brian asked what happened with the original lot that had been proposed for donation. Tracy clarified that the original proposal was to do an offsite lot, but not as a donation, rather for sale under the ordinance guidelines. The offsite lot would also not likely sell in result in housing under current pricing guidelines. Mary asked why not present an individualized plan with donated land? Chris responded that the owners were unable to do this. Options available at this time are the waiver, full compliance, or the offsite lot. Dave asked why they don’t donate the offsite lot. Chris replied that this was cost prohibitive. Carson stated that if you provide the waiver, you don’t lose the parkland. If you require compliance, you lose the parkland and likely the deed restricted lots as well. There is just too much lot supply at prices lower than outlined in the ordinance. Dave replied that while there is a surplus of lots, most are still too expensive for low-income people to purchase. Lot donation for the purposes of developing affordable housing makes sense. Tim reminded the group that whenever land or monetary donation to a non-profit is discussed, it is important for those non-profits represented at the group to refrain from advocating for their non-profit to avoid conflict of interest. Chris asked what types, number of donated lots the CAHAB would be willing to accept. Mary stated 4 lots or $120,000 cash in lieu. Dave stated that the CAHAB could make a recommendation that no waiver be required and that it be reviewed as a requirement of final plat. Tim replied that he would prefer to settle the questions now and not put them off. Mary added that this is a policy discussion that is not specific to this development; however that is being brought up by this development. Jan added that she would prefer the pursuit of an individualized plan to a waiver as well. rd Tim asked if this item could be continued to the February 3 meeting. Chris asked what the board would look for in an individualized plan. Mary responded that it should meet the intent and provide affordability. Mary Martin moved to table this agenda item until the February 3, 2011 meeting. Second by Jan Bergman. Vote unanimous. 4.Approval of recommendations for Workforce Housing amendment process It was moved by Dave Magistrelli and seconded by Mary to continue the item until the February 3, 2011 meeting. Vote unanimous. F.FYI/Discussion Tracy Menuez reminded board members to complete the City Ethics training by March 1, 2011. The next CAHAB meeting will be held on February 3, 2011 from 12:30 – 2:00 pm at City Hall (room will be announced later). G.Adjourn Chairman LaMeres adjourned the meeting at 1:35 pm.