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03/11/2008NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER March 11, 2008 Present: Lisa Hughes Donald F. Brackett Laurel Braswell Josephine Carbone Kip Corriveau Vacant Seat Absent: Peggy M. Cutkomp Chair Vice-Chair Board Member Board Member Board Member Board Member Board Member Also Present: Geri Campos Lopez Economic Development & Housing Director Michael Holmes Housing Manager Brenda Moses Board Reporter The Chair called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 3. Approval of Minutes - February 12, 2008 Member Brackett moved to approve the minutes of the regular Neighborhood and Affordable Housing Advisory Board meeting of February 12, 2008, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 4. Community Land Trust Presentation Economic Development & Housing Community Development Coordinator Tammy Vrana provided a PowerPoint presentation regarding CLTs (Community Land Trusts). She said CLTs have existed for a number of years in the private sector. The CLT program separates land costs from housing costs and preserves long-term affordability through resale restrictions. In response to a question, Ms. Vrana said depending upon how CLT programs are established, real estate taxes could be paid by homeowners or the CLT. The CLT is a tax-exempt nonprofit organization that provides and preserves affordable housing. CLTs are member-based organizations that may consist of homeowners and renters in a service area, CLT leaseholders, employers, local governments, etc. CLTs acquire and hold land, develop homes, transfer ownership of homes to buyers, arrange ground leases, ensure property is maintained, and participate in home resales. CLTs deed homes to homeowners under a secured 99-year ground lease. The housing subsidy is exchanged for the homebuyer's agreement to the resale terms. She said the CLT service area could include single-family neighborhoods, municipalities or counties, disinvested areas, growing areas, etc. She said the benefits of CLTs to homebuyers include affordable homeownership, paying down a mortgage versus paying rent, deductible mortgage interest, return of equity share upon resale, and financial stability. She said CLT programs benefit communities by providing more residents the opportunity to own their own homes. She said 38 of 50 states have CLTs. The Housing Finance Authority of Pinellas County serves as the CLT in this area. Ms. Vrana reviewed CLT goals for sales and rentals in Pinellas County. She said although the concept of a CLT in Clearwater has been discussed with City Council, no definite conclusions or decisions regarding a CLT program have Neighborhood & Affordable Housing 2008-03-11 been made. However, the County is looking for opportunities to accept donated land for CLTs. In response to a question, Ms. Vrana said CLT sales should not negatively impact existing neighborhoods, as the value of homes and land combined would be comparable to typical home values. She said CLT parameters regarding homeownership, equity, resale values, property taxes, etc. can vary. She said while some CLTs may purchase homes for resale, others might require homebuyers to find qualified buyers. She said CLT programs are flexible, and can be set up in any fashion. She said there generally is a fee involved in setting up the program. Economic Development & Housing Director Geri Campos-Lopez said the City’s contribution to a CLT most probably would be in the form of donated land. Garden Trail Apartments Presentation Mary Thurman, Southport Financial, said the proposed Garden Trail Apartments is an affordable housing project on N. Garden Avenue with 75-units consisting of 40 two-bedroom units and 36 three-bedroom units. Southport Financial is applying to Florida Housing for tax credits and to the City of Clearwater for a $400,000 loan. She said 10% of the units would be for applicants with incomes that are at or below 33% of the area low median income. The balance of the units would be rented to applicants with incomes at or below 60% of the area median income. She said the project includes a clubhouse, amenities, and various social services. In response to a question, Peter Leach, Southport Financial, said only tenants listed on the lease application are permitted to live in the units. Should a familial status change or incomes increase during the lease period, a tenant’s rent could increase. He reviewed rental charges for the units. Ms. Thurman said as tenants would be required to pay their own utility bills, rents were determined to ensure the units remain affordable. Credit and background checks, including criminal background checks, will be done for all potential tenants. She said Southport Financial would not be able to fund the project without Florida Housing tax credits. In response to a question, Housing Manager Michael Holmes said 2008/09 SHIP funds are available for this request. Member Corriveau moved to approve the request by Southport Financial for $400,000 in 2008/09 SHIP funds. The motion was duly seconded and carried unanimously. 5. Action Item – Approve Revised FY 08/09 Meeting Schedule Housing Manager Michael Holmes reviewed the revised FY 08/09 meeting schedule. A bus tour of subrecipients and an April meeting were the only additions to the schedule. It was requested that other means of transportation be used for this year’s bus tour. It was felt that a Councilmember should be invited to take this year’s bus tour, and that the tours are very educational for board members. Member Braswell moved to approve the revised FY 08/09 meeting schedule as presented by staff. The motion was duly seconded and carried unanimously. 6. Action Item – Approved Proposed FY 08/09 Consolidated Action Plan Mr. Holmes reported this item was inadvertently included on the agenda. No action is necessary. 7. New/Old Business Neighborhood & Affordable Housing 2008-03-11 2 Mr. Holmes provided an update on Habitat for Humanity programs. He said although the board approved Habitat for Humanity's request for funding, the request was not submitted in time to meet City and County deadlines. However, Habitat has obtained a priyate loan and has acquired the property they needed. Mr. Holmes said under their agreement with the Housing Authority, Pinellas County's equity share was not favorable, as the County had changed their housing funding program. However, funds could be allocated to Habitat for use for other purposes such as demolition or downpayment assistance. Any allocations requested would be brought back to the board for review and approval. In response to a question, Mr. Holmes said Kimberly Home recently acquire two sites that meet their needs. Election of Chair and Vice-Chair Mr. Holmes reported that although a motion is needed to confirm it, the board's rules provide that the Vice-Chair automatically becomes the Chair. He said a Vice-Chair could be elected at a future meeting when all board members are present. Member Braswell moved to elect Member Brackett as Chair. The motion was duly seconded and carried unanimously. 8. Next Meetinq - April 15. 2008 9. Adiournment The meeting adjourned at 9:46 a.m. YJN/1f~,~ Board Reporter Neighborhood & Affordable Housing 2008-03-11 3