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10/11/2005 . . . NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER October 11, 2005 Present: John Sabatier Lisa Hughes Donald Brackett Josephine Carbone Doug Booher Chair Vice-Chair Board Member Board Member Board Member Absent: Laurel Braswell Peggy M. Cutkomp Board Member Board Member Also Present: Howie Carroll Michael Holmes Patricia O. Sullivan Assistant Director of Housing Housing Manager 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. 2 - Approval of Minutes - 7/19/05 Member Brackett moved to approve the minutes of the regular meeting of July 19, 2005, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 3 - Update on FY04-05 Action Plan Year Assistant Director of Housing Howie Carroll discussed extensions approved for sub- recipients due to program delays. Housing Manager Michael Holmes reviewed staff efforts to monitor sub-recipients. While most agencies achieved their goals, staff is working with the remainder by providing technical assistance to help establish accurate reporting and performance standards. USHUD (U.S. Department of Housing and Urban Development) has expanded its goals. 4 - Update on FY05-06 Action Plan Year Mr. Carroll anticipated that all sub-recipient agreements soon will be submitted. In the past year, State funding was decreased again, representing half of what the funding level should be. He expressed concern that the Congress had not adopted this year's appropriations package yet and budgeted CDBG (Community Development Block Grant) and HOME Investment partnership funds could be diverted to hurricane recovery. If funding is reduced substantially, across the board cuts will be necessary and sub-recipients will be notified. He cautioned sub-recipients to be aware of this possibility. Neighborhood & Affordable Housing 2005-10-11 1 . . . 5 - Discussion on Affordable Housina Mr. Carroll reported affordable housing is a challenge in Florida, with a reduced inventory of available affordable homes and significant increases to housing costs while salaries have remained flat. Well-constructed homes in quality neighborhoods receive multiple bids. At the same time, construction costs have increased substantially, with rehabilitation costs increasing by 40% in the past year. With decreased revenues to address Affordable Housing needs, there is less the City can do. The rental supply has decreased as many area apartments have been converted to condominiums, at prices that are unaffordable for many residents. While an $80,000 annual income is needed to afford the average Clearwater home, which sold for $259,000 during the first half of 2005, the average family of four has an annual income of $52,150. The board has prepared a letter for the City Council, requesting that they focus on the issue, keep it in the forefront, and support affordable housing. Mr. Carroll reported the Homeless Policy Group's 10-year plan should be completed by December. A County ad hoc committee, reviewing trust funds, inclusionary zoning, and other regulatory measures, will present its report to the Board of County Commissioners on October 18, 2005. This year, the Governor's Affordable Housing Commission issued an interim report, as the issue of preserving affordable housing is so large. A full report will be completed by July 2006. Upcoming problems include the expiring of affordable housing agreements. Many project-based Section-8 housing and other housing programs are scheduled to expire in the next 10 years. The loss of tens of thousands of affordable units in Florida is anticipated during the next decade. Discussion ensued with concerns expressed that razing Homer Villas will further diminish the local supply of affordable housing, and at the same time Jasmine Courts is 12 to 18 months from beginning construction. Mr. Carroll reported previous Jasmine Court residents are being tracked and the majority has remained in the County. Staff will provide board members with tracking information details. Sylvia Costello, of Partners In Self-Sufficiency, said the City has not stopped the decline in local affordable housing, which severely impacts the poor. She criticized the loss of emergency public housing, which is essential to those in serious situations, including immigrants, those subjected to spousal abuse, etc. If affordable housing is defined as being affordable to those who earn 80% to 100% of the median income, she said the City no longer will have any last-resort housing. She said NAHAB (Neighborhood & Affordable Housing Advisory Board) has a significant responsibility to protect low-income residents. 6 - New/Old Business Mr. Carroll reported the City Council will be asked to approve incorporating an equity sharing provision in documents for homes purchased with some City funds. In escalating markets, the FHA approves the process. The City's policy will provide seven-years of equity sharing, will help stabilize neighborhoods, will prevent borrowers from flipping their property in a couple of years and capitalizing at City expense, and will provide a new revenue stream for City affordable housing efforts. Neighborhood & Affordable Housing 2005-10-11 2 . . . 7 - Next Meetina The next meeting will be held in December for NAHAB to approve the FY (Fiscal Year) 2004/05 CAPER (Consolidated Annual Performance and Evaluation Report). A copy of the report will be forwarded to board members prior to the meeting. Adiournment The meeting adjourned at 9:30 a.m. Chai Neig borhood & Affordable Housing Advisory Board Neighborhood & Affordable Housing 2005-10-11 3