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05/13/2008NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER May 13, 2008 Present: Donald F. Brackett Josephine Carbone Laurel Braswell Lisa Hughes Kip Corriveau Vacant Seat Absent: Peggy M. Cutkomp Chair Board Member Board Member Board Member Board Member Board Member Board Member Also Present: Geri Campos Lopez Economic Development & Housing Director Michael Holmes Housing Manager Patricia O. Sullivan 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 - April 15, 2008 Member Carbone moved to approve the minutes of the regular Neighborhood and Affordable Housing Board meeting of April 15, 2008, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 4 - Presentations Verizon/Country Club Town Homes On May 8, 2008, Peter Leach, Vice President of the SP Country Club Homes LLC, submitted an application to fund acquisition costs, not to exceed $700,000, for vacant real property to build 36 affordable townhomes. The application was part of the City's Consolidated Planning Process and requested funds from previous years' CDBG (Community Development Block Grant). The project will front Drew Street, Betty Lane, and Fredrica Drive and feature 1,312 to 1,468 square-foot, three-bedroom, 2.5-bath units, each with a two-car garage. The sales price for each unit will approximate $170,000 for standard units and $180,000 for premium ones. Units will be sold: 1) 19 to families with incomes of 80% or less of AMI (Area Medium Income) and 2) 17 to families with incomes from 81 % to 120% of AMI. For families of four, incomes will range from $45,200 at 80% or less of AMI up to $67,800 for 120% of AMI. Amenities include a pool, hot tub, and clubhouse, office, and exercise room with handicap accessible bathrooms. The ability of Pinellas County residents to afford local housing is measured by the percentage of income spent for housing. USHUD (U.S. Department of Housing & Urban Development) set the affordability standard at 30% of gross income spent for total housing Neighborhood & Affordable Housing 2008-05-13 costs, i.e. rent or mortgage payment, utilities, insurance, and real estate taxes. Households spending more than 30% of income for housing are termed "cost burdened," and those spending more than 50% of income are "severely cost burdened." In 2005, before housing prices increased more than 20%, 69,700, or 38% of Pinellas County homeowners spent more than 30% of income for housing. More critically, 14.6% spent more than half of income for housing and 7.2% spent 40% to 49% of income for housing. This project will invest more than $7.5 million in the East Gateway District in the CRA (Community Redevelopment Agency) and will develop a vacant 2.07-acre parcel that will provide improved access to high-quality affordable homeownership opportunities for families at or below 120% of AMI. The developer, Southport Financial Services, Inc., its owners, officers, and affiliates have developed and operated more than 13,000 dwelling units and more than 135 projects in 17 states. Southport principals have extensive experience in developing for-sale projects, with 21 two-family homes recently completed and sold in Newark, New Jersey, and 10 units, Ewing Place Townhomes, in Clearwater. The developer entered into a conditional purchase agreement in March 2008 and currently is under the due diligence period that will end in mid June. The developer anticipates site plan approval by July. If all goes according to plan, the developer will purchase the property in June, begin construction in August, with project completion anticipated by August 2009. Mary Thurman of Southport Financial reviewed the project. Homeowner fees will finance a management firm to maintain the property and public spaces. Member Corriveau moved to recommend approval of funding acquisition costs, not to exceed $700,000, with CDBG funds for vacant 2.07-acre real property fronting Drew Street, Betty Lane, and Fredrica Drive to construct 36 affordable townhomes. The motion was duly seconded and carried unanimously. Habitat for Humanity of Pinellas - Demolition On April 15, 2008, Habitat for Humanity of Pinellas County, Inc. submitted an application for $200,000 in funds to demolish former Homer Villas rental units at 1884 Betty Lane. The request calls for a deferred payment loan with no interest. Funds will be forgiven when Habitat builds housing units. Staff proposes to use prior year CDBG funds. CHA (Clearwater Housing Authority) previously owned the approximate 8.81-acre site. Acquisition is subject to Habitat Pinellas building affordable housing units for mixed-income families. A minimum of 50 units must be for families with income less than 80% of AMI. Property acquisitions costs were $1,189,350, or $20,158 per unit. Habitat Pinellas will raze all structures on the property; rental units are vacant and show signs of deterioration. The project will provide affordable housing for families with incomes between 30% and 80% of AMI. To retain affordability, Habitat Pinellas proposes to use volunteers and partner with a general contractor to perform some work. Habitat also will provide reduced mortgages to homebuyers. According to a recent Nexus Study, Pinellas County faces a crisis in affordable housing with the loss of affordable rental units and mobile homes, an increase in the price of ownership housing, and significant increases to construction costs. The City's dwindling supply of Neighborhood & Affordable Housing 2008-05-13 2 developable land exacerbates the problem by forcing up land costs and requiring expensive redevelopment of properties with structures. Now considered a statewide crisis, costs for high insurance premiums and real estate taxes are burdening all households with those costs exceeding mortgage payments for some. Only 26% of County households can afford the median priced home ($199,900) and only 52% can afford the median priced apartment ($960/month). Approximately 42% of Pinellas County households spent more than 30% of their gross household income on housing in 2005, exceeding the USHUD affordability standard. By providing affordable homeownership, Habitat Pinellas hopes to improve the housing stock in a neighborhood, raise property values, and create economic incentives for additional public and private investment in housing in areas targeted by the City for revitalization. Building affordable units will help the City reach goals identified in its Five-Year Consolidated Plan by providing new single-family homes. To ensure a mixed-unit development, Habitat Pinellas will work with a developer to build nine units for families with incomes between 80% and 120% of AMI. Habitat Pinellas provides struggling households an opportunity to own a home. Habitat Pinellas built 140 homes in 23 years and sold the units sold at no profit, financed with 0% interest. Habitat Pinellas's experienced staff has a solid history in housing development. Habitat Pinellas recently purchased the subject property from CHA. Habitat Pinellas has met with local development officials for initial review of the project. While results have been favorable, the Planning Department has not officially approved the project. Following demolition, Habitat Pinellas will develop site plans and submit them to the City. Habitat Pinellas anticipates the bid solicitation process and construction will begin in July 2009. Units will be built in phases, with project completion scheduled for February 2013. Project homebuyers will be required to attend 11 classes to prepare for homeownership and contribute between 250 and 350 hours of sweat equity volunteering at Habitat Pinellas in some capacity, mostly at the construction site. They also will be required to make nominal monthly payments toward closing costs for the future home. Ron Spoor, of Habitat for Humanity Pinellas, reviewed the request and reported significant interest in the bidding process. Member Carbone moved to recommend approval of $200,000 in CDBG funds to demolish former Homer Villas rental units at 1884 Betty Lane, with a deferred payment loan with no interest to be forgiven when Habitat builds the housing units. The motion was duly seconded and carried unanimously. HOPE SRO - Development Project Catholic Charities Foundation of Tampa Bay, Inc. has prepared a Permanent Special Needs Housing Grant application to submit to the State on May 27, 2008. If approved, the State would provide $3 million to Catholic Charities, subject to a local government match of $1 million. Catholic Charities requests $120,000 as the City's local match to build a SRO (Single Room Occupancy) complex for the homeless. The agency requests the funds as a local grant. Funds will be used to construct a 50-unit, 80-bed efficiency apartment complex on 10 acres owned by the Diocese of St. Petersburg, directly south of the Pinellas Hope facility. The Neighborhood & Affordable Housing 2008-05-13 3 facility will serve persons who are homeless or have special needs. Over the past two years, Pinellas County has disbursed funding to a Housing Trust Fund program that allocated funding based upon a share of the population. The City received $944,456 in FY (Fiscal Year) 2006 and $472,228 in FY 2007. The program requires each local government to contribute 15% of annual allocations for projects that benefit special needs populations. This contribution will meet the City's obligation. Frank Murphy, of Catholic Charities, reviewed the Pinellas Hope facility, its history, and the request for funds from Pinellas County and local municipalities. Catholic Charities intends to apply for a Florida emergency grant that requires a match. The Dioceses of St. Petersburg in- kind donation of the land provides a significant portion of the match. The dioceses also provides insurance. The project will add restrooms and a community building for social service agency personnel. Mr. Murphy said Catholic Charities had met with 20 nearby residents regarding the project. He said 10 did not object to the project, five hoped the County will add sidewalks and fencing, and two or three opposed it. Catholic Charities needs to work with the City of Pinellas Park for a permanent water and sewer connection. Economic Development & Housing Director Geri Campos Lopez said the City had set aside the special needs portion of the Consolidate Plan for this project. City support of the project is unusual as it is not located in the City. The project requires a collaborative effort by all local cities. Once the grant is approved, the City will negotiate issues such as require a percentage of beds for Clearwater residents. Discussion ensued with comments regarding the importance of SRO units as transitional housing and support for requiring that Clearwater residents are served. Member Carbone moved to recommend approval of the contribution of the City's local match of $120,000 towards the project to build a SRO complex at the Pinellas Hope facility. The motion was duly seconded and carried unanimously. Blue Chip Bar Acquisition Project The Blue Chip Commercial Acquisition Project at 1317 and 1321 N. Martin Luther King Jr. Avenue and 1104 Tangerine Street includes two vacant lots and one commercial structure with a bar and closed restaurant. Second floor boarding rooms are unoccupied. Johnnie Blunt owned the fee simple property. The Martin Luther King Jr. Avenue property, Lots 17 and 18, is zoned Commercial General Land Use and the Tangerine Street property, Lot 19, is zoned Medium Density Residential. The project purchase price will approximate $525,000, with $466,900 paid by CDBG funds and the balance from the Brownfields Program and non-federal funds. The project will improve the North Greenwood community by removing a deteriorating structure. The City has not determined redevelopment uses for the property. Ms. Lopez said negotiations are underway for this property, which historically has generated a significant number of police calls. When the property went on the market, staff began negotiating its purchase as a benefit to the community. Neighborhood & Affordable Housing 2008-05-13 4 Member Corriveau moved to support the Blue Chip Commercial Acquisition Project at 1317 and 1321 N. Martin Luther King Jr. Avenue and 1104 Tangerine Street. The motion was duly seconded and carried unanimously. 5 - FY 2007/08 Consolidated Action Plan Amendments Through the Economic Development & Housing Department, the City will amend its FY 2007/08 Consolidated Action Plan by changing the intended use of $1,366,900 in CDBG funds previously budgeted for other activities: 1) Real Property Acquisition - $466,900 to purchase real property at 1317 and 1321 N. Martin Luther King Jr. Avenue and 1104 Tangerine Street (Lots 17, 18, and 19, Block C, Greenwood Park Subdivision). Property reuse not determined; 2) Real Property Acquisition - $700,000 loan to SP Country Club Homes LLC (Developer) to purchase approximately 2.07 acres of real property at 290 feet on Drew Street with E/W boundary of 310 feet on North Betty Land and Fredrica Drive. Developer will build 36 affordable housing units; and 3) Demolition - Approximately $200,00 to Pinellas Habitat for Humanity to raze former Homer Villas rental community on 8.81 acres at 1884 N. Betty Lane. Pinellas Habitat for Humanity proposes to build a minimum of 50 single-family affordable housing units. Member Hughes moved to recommend approval of amendments to the FY 2007/08 Consolidated Action Plan. The motion was duly seconded and carried unanimously. 6 - FY 2008/09 Proposed Consolidated Action Plan Mr. Holmes reviewed the proposed FY 2008/09 Consolidated Action Plan. Concerns were expressed that Directions for Mental Health is subject to significant fines, as its handicap parking spaces do not comply with ADA (Americans with Disabilities Act). Photographs of the parking lot were submitted. Opposition to agency plans to install a rubberized parking lot surface were reviewed. Staff will follow-up on the complaint. Jerry Spilatro, representing CSF (Community Services Foundation), requested that the proposal to grant only 60% of requests be reconsidered as it causes significant difficulty for agencies to budget and staff programs when only partial funding is provided. Member Hughes moved to recommend approval of the FY 2008/09 Proposed Consolidated Action Plan. The motion was duly seconded and carried unanimously. 7 - New/Old Business State of Florida SHIP Program Affordable Housing Advisory Committee As a result of 2007 legislation, revisions to SHIP (State Housing Initiatives Partnership) rules are in effect. Clearwater is required to re-establish NAHAB (Neighborhood & Affordable Housing Advisory Board) and its new duties. This 11-member advisory committee must be established and appointed by June 30, 2008. Neighborhood & Affordable Housing 2008-05-13 5 the City's comprehensive plan and report to the City Council, including recommended changes. Initial reports must be submitted to the City Council by December 31, 2008. Consensus of members was to participate in the new committee's activities. Vice Chair appointment Member Hughes moved to appoint Kip Corriveau as Vice Chair. The motion was duly seconded and carried unanimously. 9 - Next Meeting - June 10, 2008 10 - Adjourn The meeting adjourned at 9:51 a.m Chair, Neighbor ood & Affordable Housing Advisory Board Neighborhood & Affordable Housing 2008-05-13 6 'W.w 40 1 ,-? ?. \,\. _-- ?„ ._? . ?? .?':' '. - ;,`y O' }