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HomeMy WebLinkAbout9 10 14_cahab DRAFT minutesCity of Bozeman Community Affordable Housing Advisory Board (CAHAB) September 10, 2014 8:00 – 9:00 am Stiff Professional Building Conference Room Attending: Brian LaMeres, Mary Martin, Anders Lewendal, Ann Kesting, Kevin Thane, Dave Magistrelli, SharlaRae Stuber, Kris Keller Absent: Melvin Howe, Commissioner Carson Taylor Staff: Tracy Menuez, HRDC; Jeff Rupp, HRDC; Wendy Thomas, Community Development Director; Valerie Sutton, City Planner Public: Erin Schattauer The meeting was called to order at 8:05 am by Chair Brian LaMeres. Changes to Agenda: None Approval of Minutes from 8-13-14 Dave Magistrelli moved to approve the minutes from 8-13-14; Kevin Thane provided the second. Motion was approved unanimously. Public Comment: None Action Items None Non-Action Items 1) Presentation by Open Window Consulting of Rental Housing Study findings Julie Cerenzia of Open Window Consulting presented the rental housing study draft report to the board. She first reviewed the survey methodology, noting that larger properties were easier to capture for information, whereas smaller, non-professionally owned properties were more difficult to find for the purposes of information gathering. About ½ of the properties studied were market rate and ½ were subsidized, again as subsidized properties tend to be among the larger developments. The majority of units in the survey were two-bedroom and three bedroom units. Kevin Thane asked what types of properties and units were less responsive. Julie responded that all property managers noted that summer was a busy time for them, which made responding difficult, but it’s hard to guess what types of units those choosing not to respond manage. She also noted that she did not survey any units outside of the city limits, which include large numbers of mobile home units. Julie noted that the units surveyed had an effective vacancy rate of 0%, with large waiting lists in subsidized properties. However; many families are on multiple waiting lists, and without name information it’s difficult to extrapolate demand simply from the list. Kevin asked if we found out how long people had been on waiting lists. Julie responded that most management companies did not have that information readily available. Julie added that there is definitely an unmet demand in the subsidized market that can be assumed from the presence of the waiting lists. In the market side, it is less typical to see waiting lists in a strong market, as properties fill almost immediately. In a week rental market it would be more common to see companies keeping wait lists to have the ability to fill properties faster – at this time the companies have no need to keep those lists. Julie discussed the use of weighted averages in some properties where the managers were uncertain as to the number of each type of unit, and differing prices even within properties for similar units. Brian LaMeres asked if the managers were simply unwilling to provide more detailed information. Julie replied that there were a couple of factors at play: 1) managers were in the busy summer season and had limited time to look into these questions, and 2) most do not have the software (or knowledge of how to use the software) to provide information at that level of detail. Julie commented that companies know exactly what is available at any given time and had a good general sense of the management portfolio. Mary Martin asked if a paper, rather than phone survey would allow companies to provide better information. Julie replied that a paper survey would likely result in a lower response rate; additionally, the issue for many companies was that lacked a method to easily access and compile the information, which would not have changed with paper. Kevin Thane asked about an estimated margin of error. Julie was hesitant to quantify a figure, but commented that she found the managers to have a very good sense of their properties and she felt the information received was generally sound. Julie commented further on how to capture properties that are not professionally managed and/or smaller properties, as even large property management companies did not have readily available information about their smaller properties. Unfortunately, to get this kind of data, the City would have to require registration of rental properties, which would provide great market information, but would be administratively burdensome and would likely be unacceptable to property owners. This would also ignore any properties outside of the city limits. Valerie Sutton asked if a survey of larger employers and employee zip codes could be used, however; it was pointed out that zip code areas are quite large – 59718 for example spans from 19th to past Four Corners. Julie pointed out a few more points of consideration. In market rate properties, some charge additional fees for additional tenants. Brian asked if square footage was collected. Julie responded no, mostly because it would be so hard to gather. Kevin asked about age of properties. Julie conceded that information, like square footage would be nice to have, but again, it was difficult to gather. Kris Keller asked if the City’s volunteer rental inspection program could assist with providing information. Julie replied that this list could be helpful for some data collection, however; the properties that self-select into the program may of higher quality and lower-end properties may not be represented. Kevin asked if the fire department was planning to do outreach on the rental inspection program. Brian replied that the program just kicked off about 3 weeks ago. Wendy Thomas added that most requests have come from large property management companies with units in good condition. To date, non-compliant units have not made requests. Kevin asked if tenants could make requests for inspections. Wendy replied that they could, however; landlords will still be notified before an inspection. Dave Magistrelli asked if landlords can refuse. Wendy responded that yes, they may refuse to participate in the voluntary program. Mary asked if newspaper and Craiglist listings were reviewed. Julie responded she that reviewed both sources, and found that they offered a sample potential, but would require extensive data cleaning to get rid of duplicate postings. It is also hard to gather extensive property information from those sources without creating an administratively burdensome task, and the scope of work was to create a methodology that could be easily replicated in future years. Ann Kesting noted that Craiglist also has a lot of rental scams and asked if they could be detected. Julie noted that the only way to do so would be to cross check against MLS data, which would add significant work. Wendy asked Julie if it was reasonable to say that even though every unit was not counted that the results are consistent. Julie replied that yes, particularly in the large properties. This may not extrapolate perfectly to individual or accessory units, however; there is not a readily available method to sample those units, and the large properties do give us a good sense of the market. Brian thanked Julie for the presentation and information. Wendy informed the board that the report will be posted on the Community Development page and will be forwarded to the commission. FYI/Discussion Kris Keller requested the CAHAB be mentioned in the subject line of emails to make searches more efficient. Brian LaMeres asked Jeff Rupp what his preference for taking minutes would be – would he like to record meetings? Jeff answered that he will think about it and decide how to handle minutes for future meetings. Wendy Thomas asked if everyone had met Valerie Sutton, the newest City Planner. Valerie discussed the RFP released by the city for consulting services for the review of affordable housing ordinances. Adjourn – Meeting was adjourned at 9:15 am with a motion by Mary Martin.