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HomeMy WebLinkAbout02-11-13 Community Affordable Housing Advisory Board MinutesCity of Bozeman Community Affordable Housing Advisory Board (CAHAB) February 11, 2013 12:00 pm – 1:00 pm City Commission Room, City Hall Attending:      Brian LaMeres, Melvin Howe, Chris Mehl, Dave Magistrelli Absent: Kris Keller, Margaret Boardman, Kyle Terrio, Mary Martin, Ann Kesting Staff: Tracy Menuez, Anna Rosenberry Public: none The meeting was called to order at 12:05 pm by Chair Brian LaMeres. Public Comment: None Action Items – no quorum present Approval of minutes from January 14, 2013. No quorum present; item moved to March meeting. Non-Action Items – Discussion regarding budget process and affordable housing funds Anna Rosenberry, Director of Administrative Services presented information regarding the City’s budget process and affordable housing funds. The handouts used in her presentation are attached. The City’s fiscal year begins on July 1st, with a budget adopted in late June. Typically, the City manager’s recommended budget comes out in the spring. During May and June, the commission will work through the recommended budget to arrive at a final budget. The best way to get a project funded is to get it into the City manager’s recommended budget; requests should be made by April. Anna reviewed the handouts. The most recent, regular source for affordable housing funds has been the funds levied to the community housing fund, commonly referred to as the workforce housing fund. The fund was originally for non-CDBG housing funds, but is now the holding fund for workforce housing mills. Spending from the fund is at the commission’s discretion; the current fund balance is $356,824. It receives just under ½ of a mill per year; at its peak it received 2 mills. Brian asked why it was reduced. Anna replied that the budget process is geared to meet immediate needs, rather than save rainy day funds. As such, the commission levies the work that is being done (Road to Home at $40,000/year). Chris Mehl agreed that there was a goal to have a healthy balance, but only fund current needs, in the absence of any proposed projects it is difficult to justify taxing to build a bigger balance. Anna mentioned that the fund, in addition to Road to Home, has also been used to assist Habitat for Humanity, Workforce Housing Staff (when the program was in use), owner-occupied rehabilitation, and the housing needs assessment. The next source of funding Anna reviewed was the pre-1993 CDBG program income revolving loan fund. This fund is used to pay the HRDC for affordable housing and community development activities performed on behalf of the City. Anna went on to review the Big Box funds. Big Box funds were received from two large retailers to offset the economic impacts of their location in the City. The funds were evenly split between affordable housing and economic development. Housing funds have been used to fund down-payment assistance programs, subsidize LIHTC projects, and support other affordable housing projects. There is a small balance in the fund. Brian asked if Chris Mehl had any input on the mill funds. He replied that he was looking to the CAHAB for input. If we have any ideas to put forward, now would be a good time. He assumes that the budget will continue to fund Road to Home at $40,000 and will only add enough to fund that. As such, any new ideas will come from the balance. However, if they prove successful, they would have the chance to be added in future years. Anna added that there is always a lot of competition at the City budget level for funding. The commission has worked hard to avoid additional taxes, which means that new funding is hard to secure. Brian asked if the Streamline funds were tied to the affordable housing fund. Chris Mehl replied that Streamline’s funds do not come from the housing fund, and are not related per se, but the commission recognizes that transportation and housing are intrinsically related. Anna asked for a review of the incentives discussed in the December and January meetings. Tracy reviewed the list for her and the board. Anna reiterated that any recommendations from the CAHAB should be made within the next couple of months. Chris Mehl asked Tracy to write a brief staff report reviewing the changes in housing policy made in this year, and stating the CAHAB’s intent to weigh in on the budget. The group thanked Anna for her very informative presentation. The March meeting will be the board’s opportunity to discuss potential projects and costs that may be submitted for the budget. Given the number of absences, it was decided not to review the affordable housing plan, but acknowledged that it will provide our framework for budget recommendations. FYI Dave Magistrelli mentioned that he will not be able to attend the March meeting. He will be presenting at a national conference regarding Habitat’s work in West Yellowstone. Congratulations Dave and Habitat! The meeting was adjourned at 1:10 pm by Chair LaMeres.