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HomeMy WebLinkAbout03-12-14 Community Affordable Housing Advisory Board MinutesCity of Bozeman Community Affordable Housing Advisory Board (CAHAB) March 12, 2014 8:00 – 9:00 am City Commission Room, City Hall Attending:      Brian LaMeres, Mary Martin, Kyle Terrio, Ann Kesting, SharlaRae Stuber, Melvin Howe Absent: Dave Magistrelli, Kris Keller, Anders Lewendal, Carson Taylor Staff: Tracy Menuez, HRDC Public: Jeff Rupp, CEO/President HRDC The meeting was called to order at 8:00 am by Chair Brian LaMeres. Changes to Agenda: Board Chair LaMeres requested to move Action Item #3 to #1. Approval of Minutes from 2-12-14 Melvin Howe moved to approve the minutes from 2-12-14; Mary Martin provided the second. Motion was approved unanimously. Public Comment: None Action Items Request for funding support for West Edge Condominiums by HRDC Mary Martin stated that she has a conflict of interest as an employee of the HRDC and stepped away from the discussion table. Tracy Menuez reminded the group that she is an employee of the HRDC. Jeff Rupp, CEO/President of the HRDC presented the request (application attached) for funding for Phase 3 of the West Edge Condominiums. He reviewed the history of the development and its roots in the American Recovery and Reinvestment Act, which provided the Neighborhood Stabilization Program funding which facilitated the purchase of the first building and land for the remaining two buildings. At this time, all available units in Phases 1 and 2 have been sold. There are four units in Phase 1 that still have the original renters in them; once those renters move, the units will be sold. Proceeds from Phase 1 and 2 sales are being used to construct Phase 3, which provides 24 units and completes the development. Mr. Rupp told the board that the budget for the final building is very tight, and the HRDC seeks City assistance to help extend affordability to low-income households. The HRDC is partnering with the Montana Board of Housing and local lenders to provide first mortgage financing, and the HRDC provides a silent second mortgage to assist low-income households in the purchase. The HRDC requests $10,000 for each unit selling to households earning less than 60% AMI, up to $160,000 to provide a deeper level of affordability to those households targeted in the City’s Affordable Housing Plan. Mr. Rupp requested that the CAHAB provide a recommendation to the City Commission in favor of this request. SharlaRae Stuber if the Montana Board of Housing (MBOH) was involved in earlier phases, and at what level. Mr. Rupp replied that MBOH committed to financing 50% of the units in Phases 1 and 2, and have renewed that commitment for Phase 3. SharlaRae followed up with a question regarding why the budget was so tight. Mr. Rupp replied that the HRDC has a project manager that has worked to keep construction costs low, but those costs are still higher on this building than on Phase 2. Additionally, unlike a private developer that sells the unit and receives all of the proceeds net of costs, the HRDC defers a significant amount of the proceeds of sale in the form of the silent second mortgage, which upon repayment, must be used for affordable housing. SharlaRae asked what the selling prices will be. Mr. Rupp replied that the selling prices will not be finalized until the appraisal is completed, but the estimates provided in the application are $115,000 for the two-bedroom units and $130,000 for the three-bedroom units. Ann Kesting asked how many of each unit type will be constructed; there will be 12 two-bedroom units and 12 three-bedroom units. Brian LaMeres asked about owner occupancy requirements. Mr. Rupp replied that the financing provided by both the first mortgage lenders and the HRDC require owner occupancy. SharlaRae asked if the financing partners were in place; Mr. Rupp replied that they are. Brian LaMeres commented that he liked the application process that the board was using and thought it provided useful information for decision making. SharlaRae Stuber commented that she believes the project has proven itself as a success, and moved to support the HRDC’s request with an affirmative recommendation to the commission. Melvin Howe seconded the motion. The motion carried with 5 aye votes, 0 nay votes, and 1 abstaining (Mary Martin). Mr. Rupp thanked the board. Adoption of Model Rules of Procedure Mary Martin rejoined the discussion table. Tracy referred the group to the Model Rules that had been sent for review, pointing out that she had changed the purchasing section as requested by the City Clerk. Mary Martin moved to adopt the Model Rules of Procedure as recommended by the City. Ann Kesting seconded the motion. There was no discussion. The motion carried unanimously. Election of Chair and Vice Chair As required in the Model Rules of Procedure, the Board acted to elect a Chair and Vice Chair. Melvin Howe nominated Anders Lewendal as Vice Chair and Brian LaMeres as Chair. Mary Martin seconded the nomination. SharlaRae Stuber asked what the board would do if Anders declined upon his return. Tracy responded that Anders could decline and a new Vice-Chair would be nominated at the next meeting. The slate was elected unanimously. FYI/Discussion Tracy called the board’s attention to the Quarterly Housing Affordability report, which she sent via email. The report was on the Commission’s Consent agenda at the March 3, 2014 meeting and was accepted. She also let the board know that she sent a link to housingpolicy.org to begin preparations for the April policy discussions, and reminded the board that budget discussions would be coming up as well. Tracy updated the board on the rental housing survey. A consultant has been selected and Tracy is just working on getting the contract signed. Ann Kesting asked when Norton Ranch would be appearing in front of the commission with their request. Tracy replied that she did not know, but would check with the planning department and get back to the board. Adjourn – Meeting was adjourned at 8:45 am, motion by Mary Martin.