05/01/1997 - Special (2)
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. NAHAB
Neighborhood & Affordable Housing
Advisory Board
MINUTES.
Date
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NEIGHBORHOOD AND AFFORDABLE HOUSING
SPECIAL PUBLIC HOUSING MEETING
CITY OF CLEARWATER
May 1, 1997
-
Present:
Alan Ferri
Michael Holmes
Bertha Kelley
Nick Masters
Jerry Spilatin
Sylvia Castle
Tom Smith
Jeff Daines
Gregory Schwartz
Randy Harvey
Ron Mores
Brenda Moses
Director, Clearwater Housing and Urban Development
Asst. Director, Clearwater Housing and Urban Development
Neighborhood and Affordable Housing Board
Nick Masters Realtor
CSF
PSS
General Home Development
General Home Development
Tampa Bay CDC
Homebuyer Club
Lyon Mortgage
Board Reporter
The meeting was called to order by Director of Clearwater Housing and
Urban Development, Alan Ferri at 10: 15 a.m. at Condon Gardens, Clearwater. In
order to provide continuity for research, the items listed were not necessarily
discussed in that order.
Mr. Ferri noted that the City holds 4 public information meetings a year.
Today's meeting is important to identify which programs should be scrutinized, and
how to effectively modify what is currently being done for housing needs.
Attendees were encouraged to share information regarding the affordable housing
crisis so that information may be incorporated into the Consolidated Plan. He
explained the Consolidated Plan, which is a vehicle used to allocate funds under the
CDBG (Community Development Block Grant) Program, the SHIP Program (State
Housing Incentive Partnership), and HOME The HOME and SHIP programs are
geared exclusively to housing. The CDBG is also frequently used for housing. Last
year the City had $2.3 million to allocate. Of those funds, $1.5 million was
allocated to housing and $800,000 of the funding had to be allocated to housing
from SHIP and HOME funds. In the first Consolidated Plan submission to HUD 2
years ago, it was projected that the City had a 350-unit demand for new affordable
rental housing, and a 400-unit demand for new home ownership due to anticipated
population shifts and growth. Over the last 2 years 10% of the new home
ownership goal has been accomplished. Later this year, one project alone will help
accomplish 80% of the City's rental needs. Using the low income tax credit
program, the Wilson Company will develop 246 units for low to moderate income
tenants with income ranges between $16,000 and $24,000 a year. It will have a
3,800 square foot clubhouse, an outdoor swimming pool and daycare facilities on
site. This is the second development ever to be done in Pinellas County. The
program in Pinellas Park only had 48 units. It was noted that turnover in the
Housing Authority's Section 8 Federal Assistance Program is high because of one
bedroom units for the elderly population. Turnover is minuscule on the 2 and 3
bedroom units. There has not been a new allocation under the Section 8 Housing
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Program from HUD in years. It is estimated that a national loss of upwards of
50,000 affordable rental units may occur in coming years.
The President's budget submission to Congress beginning this year and
extending over the next 5 years, calls for a 26.6% reduction in the CDBG Program.
That means the City's entitlement allocation will be reduced to $750,000 from
$1,035,000. Under the HOME Program, the current allocation is $408,000, and the
President is proposing a reduction to 46.6%. This diminishment of resources will
prompt everyone to look for more resources and diversify. Mr. Ferri will be
submitting a request to the City Commission to join forces with the NDC (National
, Development Council). The NDC is a not-far-profit agency which has 200 client
communities across the country and charges a fee to become a member of their
organization. The member benefits include sharing of 2 funds, one of which is
called Grow America. This fund has 1 of 6 SBA small business lending licenses,
which means they are not required to go through the debenture process of the SBA
and federal credit banks. They can go directly to secondary markets with Federal
guarantees on their loans through the SBA to raise money. They have been raising
rather sizable sums of money to finance business development loans for
communities at 7 to 15 year terms with competitive rates. This funding vehicle will
open new doors for the housing market. The NDC has another national nonprofit
subsidiary which offers direct access for 203K mortgages, which are HUD-insured
programs. This program allows buyers to acquire properties that may have defects
and allow rehab of properties at approximately 2 points below conventional rates.
The NDC can issue tax exempt housing bonds under their portfolio. Their rates are
competitive, and they offer technical and financial expertise for housing programs.
Under the CDBG, the City will submit a neighborhood redevelopment
strategy. Elements of the Weed and Seed Program and the Brownfield
Redevelopment Initiative will be incorporated into the neighborhood redevelopment
strategy that will be submitted to HUD. The boundaries are Ft. Harrison on the
west, Stevenson's Creek on the north, Betty Lane and Missouri Avenue on the east,
and Belleair Road on the south. There are 100 potentially contaminated sites in that
area, and through the Penny for Pinellas, the City will have $5 million for
assessment and remediation on those sites. Thanks to the State Legislature, the
City will receive an additional $500,000 for a variety of items related to the
Brownfield Initiative. Under the Weed and Seed Program next year there will be
another half million dollars in federal money for Clearwater to address crime and
crime prevention, However, over $150,000 of the $500,000 will be dedicated to
employment development resources.
Discussion ensued regarding the high price of land for new housing projects,
tax credit recipients, and other methods of funding. Mr. Ferri re-emphasized the
importance of everyone attending the upcoming special public informational
meetings, as well as the City Commission meetings to voice their opinions and offer
suggestions to the current public housing problem.
The meeting adjourned at 11 :00 a.m.
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