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HomeMy WebLinkAbout12-11-13 Community Affordable Housing Advisory Board Minutes, draftCity of Bozeman Community Affordable Housing Advisory Board (CAHAB) December 11, 2013 8:00 – 9:00 am City Commission Room, City Hall Attending:      Brian LaMeres, Mary Martin, Kyle Terrio, Melvin Howe, Anders Lewendal, Ann Kesting; Commissioner Chris Mehl Absent: Dave Magistrelli, Kris Keller Staff: Tracy Menuez, HRDC; Wendy Thomas, Community Development Director Public: SharlaRae Stuber, Big Sky Western Bank The meeting was called to order at 8:00 am by Chair Brian LaMeres. Public Comment: None Staff/Board reports Tracy welcomed Sharla Rae Stuber to the meeting. Ms. Stuber has expressed interest in joining the board as a community member with experience in real estate financing. The board members introduced themselves and welcomed Ms. Stuber to the meeting. Tracy reported to the board that the Montana Board of Housing completed the funding allocations for Low Income Housing Tax Credits, and the project submitted by Summit Housing (Stoneridge Apartments) was not selected for funding. Wendy informed the board that the planning department has been approached by the developers of Norton East as they proceed with Phase IIB of their development. The first phase of the development contained 9 narrower-than-typical lots with smaller houses, which were priced below $200,000. The demand for the homes was substantial, and the developers would like to build 18 of these smaller homes in the next phase, however; without the Workforce Housing Ordinance (which is currently suspended), the current development code does not allow for the smaller lots and other incentives provided under the ordinance. The planning department has instructed the developer to request a waiver that would allow them to build smaller homes on lots smaller than allowed. Chris Mehl asked Wendy to clarify the current standard. Wendy responded that we currently require 5000 square foot lots; the developer is also requesting parking relaxations. Ann asked what they would be requesting; Wendy responded that she was not sure what the final request would be, but that we could expect that it would be in front of the group at our January 2014 meeting. Sharla Rae asked how much smaller the lots will be; Wendy replied roughly 4500 square feet. Ann disclosed that the listing agent for the previously built homes was in her office, as she recalled, one issue she encountered with potential buyers was unknown energy efficiency of the homes; she would curious to see information now that time has passed. Wendy instructed the board to be prepared for a January discussion regarding the waiver, and be prepared to address questions regarding income restrictions. Anders asked if placing income restrictions would reduce the incentive to provide these smaller homes in the market. Chris Mehl noted that this is a good segue into our planning for the commission meeting, and that we should be prepared to address this issue in January. Ann informed the board that she will have end of year figures for real estate sales next month. Mary reported that the rental market continues to be very tight. Action Items Approval of minutes from November 13, 2013 – Motion to approve by Mary Martin, seconded by Melvin Howe. Approved. Non-action items Preparation for joint session with City Commission The board began with a review of the affordable housing plan and progress to date, starting with those areas where plan outputs are on track to meet or exceed expectations: Homeownership production Housing Counseling (homeownership education, pre-purchase counseling and foreclosure prevention) Special Needs Housing – Amos House expansion, Warming Center expansion, HAVEN progress Regulatory progress – updated impact fee schedule Rental housing survey in progress We then discussed the areas of the plan that are lagging behind expectations. Generally, the areas where performance has lagged are those where the City and its partners are dependent on outside funding sources (HOME, Community Development Block Grant, LIHTC). Across most programs, funding is down, restrictions are tightened, and competition is fierce. Down-payment assistance: more restrictive, less funding Owner-occupied rehabilitation: no funding allocated, no contracts Section 8 housing choice rental vouchers: frozen Low Income Housing Tax Credit/other subsidized rental housing: lagging well behind targets despite strong City support, including financial incentives. The board the proceeded to discuss the areas of the plan that remain to be addressed, recognizing that we will always take advantage of funding when available, but that these items represent those where the City can make the biggest difference regardless of available funding. Strategies discussed include: reviewing minimum lot sizes; open space requirements; maintain mobile home parks in the housing stock; amending the workforce housing ordinance; and, exploring methods to reuse or create value added use in existing structures. The board also discussed the overall need for increased public education and communication to elevate understanding of the affordable housing needs in our community, particularly among the private development sector. The board then discussed what they saw as their greatest need from the Commission. Ultimately, the board decided that they would ask the commission to allocate additional staff resources to address the regulatory reforms suggested in the plan, including an overhaul of the Workforce Housing Ordinance, a review of minimum lot sizes, and open space requirements. The board will also ask the commission to weigh in on the proposed funding application and process and to solidify the CAHAB’s role in the review process. The board asked Tracy to prepare a memo providing context on the affordable housing plan and progress to date, along with the primary discussion points for the session. The meeting is tentatively set for January 13th, meaning that the memo will need to be at the City Clerk’s office by January 2nd. Tracy will get a draft memo to board members by December 30th for review and comment. The January meeting can be used to further prepare for the meeting if necessary, however; all materials will be in the commissioner’s read file by that time. Goals of the Commission meeting: Receive guidance from the Commission on the issues of affordable housing incentives, priorities, and regulatory reforms; Receive Commission support for the allocation of staff resources to meet affordable housing priorities; Receive feedback on the proposed application, funding priorities, and process. FYI/Discussion The next meeting will be on January 8th at 8 am in the City Commission room. The CAHAB is tentatively set to meet with the Commission for a joint session on January 13th at 6 pm. Adjourn – Meeting was adjourned at 9:10 am.