HomeMy WebLinkAbout2014 CAHAB budget discussionReview of FY12 and FY13 expenditures; and
Review AH Plan/CAHAB and recommendations for implementation; and
Craft budget recommendations in support of CAHAB objectives and AH Plan implementation
CAHAB FY 2014 Budget recommendations
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Affordable/Workforce Housing FY12/FY13 Expenditures
FY 12
$30,000 Affordable Housing Study and Plan (CDBG PI)
$40,000 Road to Home (Community Housing)
$14,400 HRDC Community Development (CDBG PI)
$48,600 WMMH (Big Box)
FY 13 (to date)
$40,000 Road to Home (Community Housing)
$14,400 HRDC Community Development (CDBG PI)
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In FYs 12 and 13 we….
Completed the City’s first affordable housing needs assessment and affordable housing plan in 10 years;
Began implementation of the adopted affordable housing plan;
Created a City process
for reviewing and supporting Low Income Housing Tax Credit Applications;
Supported the creation of 6 units of permanently affordable rental housing for very-low income households for
Western Montana Mental Health;
Supported applications for LIHTC projects proposing 53 new units (1 project, providing 11 units was funded);
Reviewed and advised City Commission regarding
PUD amendments for previous affordable housing requirements;
Crafted recommendations for affordable housing incentives;
Reviewed proposed impact fees as related to affordable housing;
Met
with potential developers of affordable housing (Staff) to facilitate development/rehabilitation/preservation of affordable housing in community; and,
Facilitated meetings with current
owners of affordable housing to preserve units in the community, particularly in mobile home parks.
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In FY 14 we want to …..
Expand and increase CAHAB outreach, activities and programs;
Expand and improve outreach to affordable housing developers and property owners;
Continue implementation of Affordable Housing
Plan;
Update rental study;
Support development of 40 future LIHTC units;
Support development of rental units/resources for very-low income households;
Continue support for programs
providing assistance to first-time homebuyers;
Support development of affordable properties for households seeking homeownership;
Support preservation of mobile home parks;
Provide
information to potential developers of affordable housing to facilitate new development and preservation of existing units;
Support HAVEN to expand capacity; and
Continue efforts to
identify and implement incentives for the development/rehab/preservation of affordable housing.
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Affordable Housing Plan Priorities and Recommendations
Increase & preserve affordable housing supply
Consider amendments to city regulations
Assure financial and organizational capacity
Share crucial market data; report on progress
Following
are the action items
Numeric goals are for 2012-2016 (five years)
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1. Increase & preserve supply
Build and sell 25 affordable homes (nonprofits)
Build and sell low-market-rate homes (builders)
Increase assistance to homebuyers - Counseling for 750, 2nd mortgages for 100
Build
and rent 200 subsidized apartments
Renovate and add to special needs housing
Repair existing affordable homes - 25 complete repairs, 25 partial repairs, 400 weatherizations
Encourage
energy efficient construction/repairs
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2. Review/change regulations
Continue suspension of inclusionary zoning - done
Defer or subsidize impact fees for some homes – new IF structure
Allow smaller lots – flexibility with dimensions – in process
Allow
more flexibility in re-platting subdivisions – in process
Review requirements for accessory units – in process
Clarify zoning status of group homes – planning dept
Review ordinances
RE: mobile home parks – planning, HRDC
Investigate ways to reduce cost impact of open space requirements – CAHAB recommendation
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3. Increase financial and organizational capacity
Maximize access to federal funds – HAVEN sponsorship, LIHTC support
Use workforce housing fund efficiently
Build capacity of local nonprofits – HAVEN, GGHAC
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4. Share crucial data and track progress
Follow new protocols for updating income and price targets
Obtain and share rental market data – update in FY14
Publish annual reports on work plan progress versus goals – in process
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Eligible Activities and Funding Criteria (Affordable Housing Plan, Appendix B)
Rental Projects serving extremely low-income renters and/or special needs clients (up to $20,000/unit)
Home purchase assistance (up to $10,000/unit)
Pre-purchase counseling program (up
to $40,000/year)
Emergency housing repairs by volunteer groups (up to $1,000/home); other emergency repairs up to $7,500/home
Coordination of CAHAB and housing plan monitoring (up to
$50,000/year)
Subsidies of development-related fees ($ amount not identified)
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FY 14 Proposed Budget for Affordable/Workforce Housing
Proposals/Contracts to Date:
$40,000 Road to Home for support of Homeownership Center
$14,400 Contract with HRDC for administration of affordable housing programs
Potential Projects:
HRDC:
Assist with the purchase and preservation of mobile home park
Other items to consider:
Updates to rental survey, approximate cost: $5,000
Other projects in support of housing plan
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FY 14 Affordable/Workforce Housing Budget
Proposed Funding Sources
Continue to fund ongoing housing operations for Road to Home and contract administration in the proposed amount of
$54,400 ($40,000 from Community Housing Fund and $14,400 from CDBG PI);
Increase the number of Mills currently levied from approximately .5 mills to 1mill to support expansion of activities
The
value of one mill is $86,226;
In 2012, City residents living in the median residential home paid approximately $3.71 for each mill levied. The same home would expect the following increases
if additional revenue was raised through mills to fund affordable housing:
1/2 Mill increase = $1.85
Utilize remaining Big Box balance and a portion of Community Housing fund balance
to support new projects
Consider a mechanism for the funding of major affordable housing expenditures
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