HomeMy WebLinkAbout09-11-13 Community Affordable Housing Advisory Board MinutesCity of Bozeman
Community Affordable Housing Advisory Board (CAHAB)
September 11, 2013
8:00 – 9:00 am
City Commission Room, City Hall
Attending:
Brian LaMeres, Ann Kesting, Kyle
Terrio, Kris Keller, Melvin Howe, Chris Mehl, Dave Magistrelli
Absent:
Mary Martin
Staff:
Tracy Menuez
Public:
None
The meeting was called to order at 8:00 am by Chair Brian LaMeres.
Public
Comment:
None
Board Member reports
Ann Kesting reported that recent sales figures show an increase in number of sales of 13% for condos and townhomes, and 28% for single family homes.
Inventories have steadily decreased and prices are moving up. One problem encountered recently is a lag in appraisals and buyers need to bring additional funds to the table to make up
the difference between appraisal and price. Land inventory is down 55%, while number of land sales is up 41%. Ann commented that the market feels reminiscent of the 2005-06 period, however;
some owners are still in their 07-08 purchased homes that remain underwater. The median sales price for a single family home is $277,805; for an attached home (condo or townhome) the
median is $169,000. All figures referenced are for the Bozeman City limits. Kris Keller asked what happens in situations with homes that cannot be sold because the owners are still underwater.
Ann replied that, when they can, buyers will bring extra funds into the deal to make up the difference. Ann also discussed the concerns in the market with the recent increase in interest
rates.
Chris Mehl informed the board that the commission approve Summit Housing’s request for a letter of support and an impact fee contribution. He recommended that the board schedule
a time in the upcoming months for a work session with the commission regarding incentives for affordable housing.
Action Items
Approval of minutes from August 14, 2013 – Motion to
approve by Melvin Howe, seconded by Dave Magistrelli. Approved.
Application Criteria and Process
Tracy provided the board with a brief background on the criteria and asked for feedback.
Chris Mehl noted that the document should be consistent with the plan language, using the terms “equal or less than”. Also, he questioned if the plan itself should treat rental unit
pricing more
consistently, as most of the plan discusses units at less than or equal to 30% AMI, but the development fee reimbursement section applies to units priced at 40% AMI or less. The criteria
presently refer to units at less than or equal to 30% AMI. Ann responded that she was alright with the 30% target staying in the funding criteria. Chris recommended that the board consider
a work session with the commission to discuss incentives and target levels. A quick polling of the group resulted in a general consensus to keep the language at 30% AMI or less.
Kris
Keller asked how we can serve households that are above the income limits targeted by HUD, particularly as they apply to households purchasing (80% AMI by household size). Tracy replied
that the City has committed funding for nearly 10 years to provide households earning up to 100% AMI, and the NSP-funded project completed by the HRDC serves households earning up to
120% AMI. While not all households can meet these criteria, these programs demonstrate that City is already doing a lot to serve households earning more than HUD guidelines but not enough
to purchase. Income limits for the HRDC’s homeownership program down-payment assistance are attached.
Dave made a motion to check the criteria language for consistency and then forward
it to the commission with our recommendation for implementation. Kyle seconded the motion. The motion passed unanimously.
FYI/Discussion
Chris Mehl reiterated his recommendation that
the CAHAB schedule a work session with the commission. This will be an opportunity to discuss the application process and criteria recommended today. There are also questions from commissioners
regarding the affordable housing incentives, such as those recently recommended to Summit for their LIHTC project. Brian asked how we could best prepare for this. Chris said that we
should provide the commission with some context of where the community is both in plan implementation and housing market, then talk about our recommendations.
Adjourn – Motion to adjourn
made by Ann Kesting. Meeting was adjourned at 8:40 am.
Gallatin County Limits
Family Size
% AMI
1
2
3
4
5
6
7
120% AMI
57,300
65,450
73,650
81,850
88,400
94,950
101,500
100% AMI
47,800
54,600
61,400
68,200
73,700
79,200
84,600
80% AMI
38,200
43,650
49,100
54,550
58,950
63,300
67,650
50% AMI
23,900
27,300
30,700
34,100
36,
850
39,600
42,300
Note: For down-payment assistance, Federal Homeownership Programs use 80% AMI limit, City of Bozeman uses 100% AMI limit, West Edge limit is
120% AMI.