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HomeMy WebLinkAbout01-08-14 Community Affordable Housing Advisory Board MinutesCity of Bozeman Community Affordable Housing Advisory Board (CAHAB) January 8, 2014 8:00 – 9:00 am City Commission Room, City Hall Attending:      Brian LaMeres, Mary Martin, Kyle Terrio, Melvin Howe, Anders Lewendal, Ann Kesting, Kris Keller, Dave Magistrelli; Commissioner Chris Mehl Absent: None Staff: Tracy Menuez, HRDC; Wendy Thomas, Community Development Director; Brian Krueger, City Planner Public: SharlaRae Stuber, Big Sky Western Bank; Bob Lee, Morrison Maierle; Kevin Spencer, Norton Homes; Greg Stratton The meeting was called to order at 8:00 am by Chair Brian LaMeres. Public Comment: None Staff/Board reports Ann Kesting reported that year-end sales figures have been released. Condos/townhomes in the Bozeman city limits increased in price by 14% from year-end 2012; detached housing has increased by 9%. Mary reported that the rental market continues to see low to no vacancy, adding that this is a time of year where you don’t see people moving as much. Action Items Approval of minutes from 12-11-13. Dave Magistrelli moved to approve the minutes; second by Melvin Howe. Kris Keller asked about the protocol for voting on minutes for a meeting when one was not present. Commissioner Mehl responded that members vote on the approval of minutes regardless of attendance. Motion approved. Norton East Subdivision Phase IIB waiver request Bob Lee from Morrison Maierle presented information to the board regarding a request by Norton East subdivision (see attached letter). Earlier phases of Norton East had included smaller lots allowed by the Workforce Housing ordinance, however; with the ordinance now suspended, there is not a mechanism in the City code that allows for lots smaller than 5000 sq ft. The developer is requesting the CAHAB’s support for 18 smaller lots. Kevin Spencer of Norton Ranch added that Norton would like to continue to provide the smaller, less expensive product that was allowed previously and that has been successful in the Bozeman market. Mary Martin asked what the expected price point would be for the proposed units. Kevin replied that the market is moving rapidly, however; to date the smaller homes sold have been for less than $200,000. They expect as the market moves upward that their prices will likely do the same, but their target is the $200,000 range. Brian LaMeres asked how large the homes will be. Kevin replied that the homes are 3 bedroom, 2 bath with a garage. Brian LaMeres asked to clarify what concession(s) the developer is requesting. Wendy Thomas replied that the developer is asking to use the dimensional incentives allowed by the Workforce Housing Ordinance (smaller lots, smaller garages, narrower setbacks), however; they do not want to incur the restrictions of the ordinance in relation to pricing, timing, long-term affordability and income restrictions. Kevin added that many of the restrictions in the original ordinance made the properties more costly to finance. However, they have been committed to providing a product within the pricing targets of the ordinance that could be financed easily. Kris Keller asked what restrictions made financing more difficult. Kevin replied that he did not remember the specific requirements, just that lenders were not willing to finance the product as they were unable to sell it on the secondary market. Commissioner Mehl asked Brian Krueger, City Planner, if there was any additional context we needed. Brian replied that there is a larger interest in the development community for smaller lots, much reminiscent of the Restricted Size Lots (RSLs) used in the City, which ended up quite marketable. Brian added that smaller lots (down to 4500 square feet) are currently allowed in Residential Mixed Use zoning. There is a likelihood that Valley West will also be replatting some of their multi-family lots for small single-family detached homes. Kris Keller asked how far the houses are from each other. Kevin replied that they are 5 feet from eave to eave, however; he pointed out to the board that the City has expressed a desire to build attached units on these lots, which would result in a distance of zero. Kris asked how large the homes are; Kevin replied that they range from 1400 to 2100 square feet. Anders asked if the homes will meet the 2012 International Energy Conservation Code (IECC). Kevin replied that they are monitoring energy costs in the already built units, as they utilize electric heat and they want to be sure that is the best long-term choice. Anders asked if they blower-door test the units. Kevin replied that they would be willing to do so, adding that they try to meet a balance between tightness and air quality. Wendy Thomas asked if there would be occupancy or income requirements, to which Kevin replied that they are requesting a waiver of those components. Anders asked the board if there was a market for this, and, if so, why wouldn’t we support the building of smaller, more affordable homes. Kris commented that this home is not affordable to a person with a minimum wage job. Kevin replied that was likely true, but, for the right purchaser, the proposed homes are cheaper than renting in Bozeman. Bob Lee commented that the RSLs have reset the idea of what a lot size needs to be in Bozeman, and have created a demand for smaller lots. Mary Martin commented that she thought narrower, smaller lots were helpful in achieving more affordable homes, and were more characteristic of neighborhoods developed in earlier years with more variation in lot sizes and home types. Kris expressed that the homes being developed are really only targeted to nuclear family types, with limited emphasis on single households who could benefit from much smaller homes on a small lot. Kevin replied that they have to consider density requirements, along with the market, which is stronger in family housing. Anders commented that if the market demand shifted to 900 square foot homes that the development community would provide them. Kevin replied that they do, in fact, provide 900 square foot homes in communities where the market has embraced them. Mary asked if there was a way to keep the home affordable past the first purchaser. Ann replied that while you could restrict purchaser #1, you cannot restrict beyond that without creating financing difficulties. Anders asked why a smaller product on a smaller lot would not always be more affordable compared to larger properties in the market. Wendy commented that the board could ask the developer to work with the Road to Home program to secure a low to moderate income customer for the first purchase. Commissioner Mehl asked Kevin if they would be open to this; Kevin responded that they would be. Mary commented that the intent of the workforce housing ordinance was to create some long-term affordability, but, if that’s not possible in this situation, we need to help find the next best option. Kevin commented that when they partner with the City of Bend, the City has 90 days to find a buyer and can assist them with down-payment assistance when available and necessary. The homes are only provided as a base model (no upgrades allowed) at the base price. After the 90 day sales period, they are allowed to sell the home to any qualified buyer. Anders Lewendal moved to recommend that the City Commission approve the request by Norton East to build smaller houses on smaller lots with the recommendation that the developer work with the HRDC for a 90-day period to sell units to low to moderate income qualified buyers. Dave Magistrelli provided a second. Motion passed. Non-action items Preparation for joint session with City Commission Tracy reviewed the draft memo for the commission work session, adding that she would send the meeting agenda to the board along with an expected start time. FYI/Discussion The CAHAB will meet with the Commission for a joint session on January 13th at 6 pm. The membership application of SharlaRae Stuber will also be considered at this meeting. The next regular meeting will be held on February 12, 2014 at 8:00 am in the City Commission room. Adjourn – Meeting was adjourned at 9:10 am.