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09/09/2008 NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER September 9, 2008 Present: Donald F. Brackett Chair Kip Corriveau Vice-Chair Jordan Behar Board Member – arrived 6:03 p.m., departed 7:09 p.m. Laurel Braswell Board Member Josephine Carbone Board Member Peggy M. Cutkomp Board Member Samuel Davis Board Member Tony Langhorne Board Member Peter Leach Board Member Nick Pavonetti Board Member Absent: Lisa Hughes Board Member Also Present: Geri Campos Lopez Economic Development Housing Director Jim Donnelly Assistant Director of Econ. Dev./Housing Michael Holmes Housing Manager Terry Malcolm-Smith Housing Coordinator Brenda Moses Board Reporter The Chair called the meeting to order at 6:00 p.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Introduction of Members Board Members introduced themselves. 3. Neighborhood and Affordable Housing Advisory Board (NAHAB) – Affordable Housing Advisory Committee (AHAC) Schedule Economic Development Housing Director Geri Campos Lopez said although the City already has a NAHAB (Neighborhood and Affordable Housing Advisory Board), its membership has been expanded to comply with State requirements to develop a local housing incentive strategy. The expanded NAHAB will be referred to as the AHAC (Affordable Housing Advisory Committee) for now and will serve as the State mandated committee. Ms. Lopez said AHAC meetings are scheduled for October 7 and October 28 at City Hall in Room 222, and on November 19 at 6:00 p.m. in Council Chambers. The November 19th meeting will be a public hearing. Meetings of the original NAHAB members are scheduled for October 14 and December 9 at 9:00 a.m. at City Hall in Council Chambers. The regularly scheduled November 20 NAHAB meeting has been cancelled. She said at the NAHAB meetings, board members will discuss their normal course of business, and although it is not necessary, all AHAC members are welcome to attend. In response to a question, Ms. Lopez said the AHAC will discuss strategies and barriers to affordable housing. A revised meeting schedule and a committee and staff contact list will be distributed to all members. Neighborhood & Affordable Housing 2008-09-09 1 4. Presentation of the Local Housing Incentive Strategy Development Process by Wade Trim, Inc. – Mr. Jose Fernandez, Ms. Amanda Warner Jose Fernandez and Amanda Warner of Wade Trim reviewed: 1) Role of the AHAC; 2) Schedule to complete the Local Housing Incentive Strategy; 3) Explanation of the desired development process; 4) Explanation of the State regulations; 5) Review of the affordable housing principles; 6) Explanation of the agents involved; 7) Explanation of the difference between the incentives and barriers; and 8) Review of the main directives of the housing element. Mr. Fernandez said State statute requires that the AHAC analyze: 1) Expedited permitting; 2) Impact fee waivers or modifications; 3) Flexible density; 4) Reservation of Infrastructure; 5) Accessory dwelling units; 6) Parking and setbacks; 7) Flexible lot configurations; 8) Street requirements; 9) Oversight (ongoing); 10) Proximity/transportation; and 11) Other issues. He said the committee will go beyond those requirements. Mr. Fernandez said affordable housing needs to be attainable and mix with other uses, should be in close proximity to activity centers, employment, recreation, and shopping, should be accessible to multimodal transportation, should have adequate infrastructure, should be near green/open space, should be safe and functional, and should meet minimum design standards to protect the character of the surrounding area. He said there is a fine line between incentives and barriers. Ms. Warner said Wade Trim will perform an inventory and assessment of the City’s best practices/incentives to provide affordable housing and evaluate the land use and housing elements of the City’s Comprehensive Plan for the promotion of affordable housing. Strategic areas of improvement will be identified and an action plan developed to help implement affordable housing strategies. After strategies are developed, Wade Trim will review them to ensure they are consistent with the Comprehensive Plan. Upon completion of the review, the committee will recommend a course of action to Council. 5. Exercise: Potential Affordable Housing Barriers by Wade Trim, Inc. Ms. Warner reviewed the top ten common affordable housing barriers: 1) Supplier expertise; 2) Information access; 3) Public perception; 4) Land availability; 5) Cost of Production; 6) Financing; 7) Code/regulations; 8) Process; 9) Infrastructure capacity; and 10) Other items. Board members prioritized the top ten barriers to affordable housing. The top three barriers chosen from the list were financing, land availability and Code/regulations, and cost of production. Discussion ensued with comments: 1) That even if infrastructure, land, and tenants are in place, tax credits and other funds are necessary to ensure rents are low enough to make housing affordable; 2) That land is getting scarce; 3) That the School Board has more land than anyone else that could be used to benefit the community, especially teachers; 4) That there is very little subsidy support at the 120% of AMI (adjusted area median income) level; 5) That hardworking professionals such as teachers are included in the lower income brackets; 6) That although financing is available for low income borrowers with little or no credit, very little information is readily available to the public; 7) That public perception always affects an affordable housing project. Many residents are concerned that affordable housing projects such Neighborhood & Affordable Housing 2008-09-09 2 as Section 8 housing means a potential increase in crime and negatively affects property values; 8) That transportation options in the U.S. should be reviewed instead of spending money to send representatives to other countries; 9) That the Code in coastal areas should not be applied throughout the City, 10) That building materials for Florida’s climate differ from those needed in other climates, and the cost to test building materials is high; 11) That an architect with local knowledge can affect a project’s success; 12) That there are many vacant parcels that were to be developed and are now vacant and unattractive due to the lack of financing; 13) That although the City allows land assembly, time constraints, the parcel size and price, and the density allowed on a parcel greatly affects its development potential and profitability; 14) That parking is a major barrier, and sometimes the “killer” of reasonably-priced real estate; 15) That government-imposed landscaping, drainage, etc. increase project costs; 16) That density bonuses are a myth; 17) That land is available for development; 18) That the cost of materials is a static cost, however public perception, zoning, infrastructure capacity, convenient access by tenants to the local area, housing credits, etc. play a larger part in costs of production; 19) That some nonprofit organizations have a lack of expertise in the affordable housing arena; 20) That the City should foster joint ventures between nonprofit organizations and private developers to provide affordable housing; 21) That many barriers and variables affect affordable housing and are inter-related; 22) That a mix of different types of housing and incomes result in diverse neighborhoods; 23) That affordable housing developments can be attractive and affordable on small footprints if appropriate elements such as natural lighting, energy efficiency, and overall good design is achieved; 24) That it takes forward thinking from a Code/regulation perspective for mixed use developments to be successful and attractive; 25) That economic conditions prevent private developments from taking risks; 26) That financing options for commercial and residential purposes have become limited due to the current economic conditions; 27) That the City needs to quickly develop a policy that resurrects blighted properties, as CDBG (Community Development Block Grant) funds will soon be available for rehabilitation of existing apartment buildings, etc. As blighted properties are being sold for much less than the cost to produce new housing projects, that renewal of existing stock is an excellent affordable housing opportunity; and 28) That City lobbyists need to lobby the County, State, and Federal government regarding affordable housing opportunities. Consensus was that discussion regarding financing issues be divided into commercial versus homeownership. 6. New/Old Business 7. Next Meeting Mr. Fernandez said affordable housing alternatives and strategies to get to the next level will be discussed at the next two meetings. He said committee members are welcome to e-mail him regarding any ideas, specific strategies, why they feel the current process does not work, what they feel would work, etc., for discussion at future meetings. Ms. Lopez requested that the committee also consider specific issues they have tripped over and areas that need improvement so that they can be translated into process improvements. Housing Manager Michael Holmes encouraged committee members to review the Land Development Code on the City’s web site. Neighborhood & Affordable Housing 2008-09-09 3 It was requested that as very low income people need the CHA (Clearwater Housing Authority) and it has pulled out of having its own housing and apartments, that the committee consider ways to engage CHA to help create and provide affordable housing. The next AHAC meeting is at 6:00 p.m. on October 7,2008. 8. Adiournment The meeting adjourned at 7:38 p.m. ~~ Chair, Neighborhood & Affordable Housing Advisory Board Attest: C ~ Neighborhood & Affordable Housing 2008-09-09 4