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11/22/2011 NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER November 22, 2011 Present: Peggy M. Cutkomp Chair Laurel E. Braswell Vice-Chair Lisa Hughes Board Member William R. Griffiths Board Member Linda Kemp Board Member Vacant Seat Board Member Absent: Kip Corriveau Board Member Also Present: Geri Campos Lopez Economic Development & Housing Director Michael Holmes Housing Manager Rosemarie Call City Clerk 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 – October 11, 2011 Member Hughes moved to approve the minutes of the regular Neighborhood and Affordable Housing Advisory Board meeting of October 11, 2011, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 4 – Homeless Emergency Project HEP (Homeless Emergency Project) plans to construct permanent supportive housing for homeless veterans with special needs. A February 10, 2010 appraisal valued vacant property, owned by Pinellas County Board of Public Instruction at 1250 Palmetto Street, at $558,000. HEP submitted an application to the City regarding the 2.9-acre property; the City gave HEP a $372,340 loan to acquire the property at the agreed sales price. Phase one is a two-story 16,248 square-foot residential building with 32 one-bedroom apartments for male and female veterans, a 2,336 square-foot Clubhouse/Community Center, and all required parking spaces. City funds only will be used to construct housing units. Residents, including sub-populations of disabled veterans, will be provided a full array of services necessary to achieve self-sufficiency. Construction is estimated to begin in January 2012, with completion by January 2013. The total project cost is budgeted for $3,497,144, with Pinellas County contributing $1,800,000, the City contributing $1,097,340 (including prior loan of $372,340), and HEP contributing $599,804. To ensure project cash flows, staff recommends Pinellas County and the City forgive an equal share of the loan ($299,250) at the end of the 30-year affordability period. Neighborhood & Affordable Housing 2011-11-22 1 The proposed loan modification will place all HEP loans under a single mortgage and restructure terms to become a $1,097,340 total loan, with a $299,250 loan forgiveness at the end of the 30-year affordability period. The balance of the loan will be a three-year deferred payment loan with a 3% per annum interest rate amortized over 30 years. Housing Director Michael Holmes reviewed the recommendation. HEP is requesting additional construction funds. Member Braswell moved to recommend approval of a loan modification to HEP as proposed for the construction of affordable rental housing units for veterans at 1250 Holt Avenue. The motion was duly seconded and carried unanimously. 5 – Low Income Housing Tax Credit Program Applications Update On October 27, 2011, the Economic Development & Housing Department issued a RFP (Request for Proposals) for projects needing a local contribution of funds to apply for the FY (Fiscal Year) 2011 State of Florida Low Income Housing Tax Credit Program (LIHTC). The selection committee, made up of Economic Development & Housing and Planning & Development staff, met and ranked the four submitted proposals: 1) Vestcor Fund XL, Ltd., (up to 120 elderly units at Woodlawn Avenue near Martin Luther King Jr. Avenue; 2) SP Chestnut Trail LP, (50 elderly units at Chestnut Street and East Avenue; 3) Carlisle Group II, Ltd., (97 elderly units at Laura Street and Martin Luther King Jr.); and 4) Clearwater Prospect Lake Reserve, LLC (69 family units at Martin Luther King Jr. Avenue and Pierce Street. The top recommended project, Vista Grand at Woodlawn, is estimated to cost $16,727,181 and proposes up to 120 one- and two-bedroom units in one building on an 8-acre site in the Lake Belleview neighborhood. Amenities include a library, computer lab, crafts and community rooms, fitness center, movie theater, swimming pool, hair salon, and laundry facility. The second-ranked project, Chestnut Trail Apartments, proposes 50 one- and two- bedroom apartments. The 0.72-acre site in the Downtown Core will feature covered parking, community room, computer work stations, and shuffle board court. The development is estimated to cost $12,334,500. Staff recommends a commitment to Vestcor as the top-ranked project for use of a $100,000 grant from HOME/matching funds. As the LIHTC program limits the number of housing units it funds in a county through each tax credit cycle, it is unlikely more than one project will receive a tax credit allocation. Staff recommends the City support two projects to increase the likelihood that a project in Clearwater will be funded. Staff does not recommend commitments to the third- and fourth-ranked projects. If the Council chooses to support the two-project rationale, staff recommends committing General Fund Reserves to support the SP Chestnut Trail application. Should Vestcor not receive a tax credit allocation and SP Chestnut Trail does, HOME funding committed to Vestcor would be transferred to the Chestnut Trail project and the commitment for General Fund reserves would be released. LIHTC scores will be issued on March 28, 2012 with final board approval set for June 8, 2012. Any project funded by the City will need to sign a Declaration of Restrictive Covenants that ensures affordability of the units for a 30-year period. Neighborhood & Affordable Housing 2011-11-22 2 Mr. Holmes reviewed the item. In response to questions, Economic Development & Housing Director Geri Campos Lopez said it is highly unlikely that both projects would be approved. St. Petersburg is supporting five projects. Member Griffiths moved to recommend the City support applications by Vestcor Fund XL, Ltd. and SP Chestnut Trail LP for the FY 2011 Florida Low Income Housing Tax Credit Program. The motion was duly seconded and carried unanimously. 6 - Neighborhood Stabilization Program 3 Rental Housing Project Update Mr. Holmes reviewed rental housing proposals submitted by Boley Centers, Inc. and Catholic Charities for NSP3 (Neighborhood Stabilization Program) funds. Staff reviewed the proposals and ranked the Boley Centers, Inc. project highest. Ms. Campos Lopez said the site for this project may not meet NSP3 requirements; the process may need to start over. 7—Old/New Business 8— Next Scheduled Meeting — December 6, 2011 The CAPER (Consolidated Annual Performance and Evaluation Report)will be discussed. 9—Adjourn The meeting adjourned at 9:26 a.m. Attest: VI C Chair, Neighborhoo•: Affordable C:;337:7-1:e /Ir..- ,e--ii-o--;-/o'l �`/ Housing Advisory Board :oard Reporte Neighborhood &Affordable Housing 2011-11-22 3