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05/09/2006 . . . NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES CITY OF CLEARWATER May 9,2006 Present: Lisa Hughes Donald Brackett Laurel Braswell John Sabatier Peggy M. Cutkomp Josephine Carbone Chair Vice-Chair Board Member Board Member Board Member Board Member - arrived 9:03 a.m. Absent: Doug Booher Board Member Also Present: Howie Carroll Michael Holmes Brenda Moses 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. 3 - Approval of Minutes - February 14. 2006 & April 11. 2006 Member Brackett moved to approve the minutes of the regular meeting of February 14 as corrected: page 2, Item 5, paragraph 3 to read "... the subrecipient application be clarified." The motion was duly seconded and carried unanimously. Member Cutkomp moved to approve the minutes of the regular meeting of April 11, 2006, as submitted in written summation to each board member. The motion was duly seconded and carried unanimously. 4 - Action Item - FY06-07 Consolidated Action Plan - Recommended Allocations Assistant Director of Housing Howie Carroll reviewed recommended allocations for the FY (Fiscal Year) 2006/07 Consolidated Action Plan. The City received 34 applications. Based on TAC (Technical Review Committee) rankings, it was recommended that the top two public service applicant agencies receive 60% of requested funding, the next two receive 50%, and the remaining applicant agencies receive 40%, until the Public Service allocation is exhausted. This year's public services allocation is $145,421,15% of the CDBG (Community Development Block Grant). The City has earmarked a total of $165,421 for Public Services, which is an additional $20,000, to include funding for the Willa Carson Health Resource Center, a community-based development organization operating in a neighborhood revitalization strategy area. The City wants to fund as many public facilities organizations as possible, and has applied the same 60:50:40 split this year. Unused funds will be reprogrammed for City- sponsored projects, such as infrastructure in the gateway, other public facilities, housing rehab, or other block grant projects. Demolition and relocation projects are listed under "other." Fair Neighborhood & Affordable Housing 2006-05-09 1 . Housing agency recipients, funded by CDBG administrative funds, will receive 50% of requested funding. In the Housing pool, $75,000 or approximately 7% of SHIP (State Housing Initiatives Partnership) funds, are in the education pool. Once those funds expire, there will be no additional ones. This year's allocation includes the Foreclosure Prevention Program and Rental Deposit and Eviction Protection Program. The City will receive no additional State SHIP funds this year. Statewide, SHIP is funded at $243 million. The $500 million remaining in the State and Local Housing Trust Fund was not folded into the State's General Revenue Fund this legislative session. It is possible that the 2007 State Legislature could increase affordable housing appropriations by appropriating the $500 million, plus whatever other funds are available. There could be as much as $1 billion available next year for affordable housing. Funds are available for homeless emergency infill housing. Funds from the HOME program include dollars for CHDO (Community Housing Development Organization). Housing Manager Michael Holmes thanked T AC for their efforts. The point spread in ranking Public Service applicants was very close. Subrecipients do a great job in meeting application objectives. . To improve applicant rankings and scores, it was recommended that public facility project applications: 1) describe agency program and objectives, not just project objectives; 2) submit a descriptive of what the project supports - the more details regarding program capabilities, the better; 3) provide specific information regarding agency history; 4) provide details of financial and administrative capabilities; 5) list agency licenses (include explanation if agency not licensed); 6) include copies of agency licenses, marketing materials, etc.; and 7) submit agency staff resumes. Extra points are awarded if staff is bilingual. Howard Latham thanked NAHAB (Neighborhood & Affordable Housing Advisory Board) for its efforts. Member Brackett moved to recommend approval of the FY 2006/07 Consolidated Action Plan - Recommended Allocations. The motion was duly seconded and carried unanimously. Mr. Carroll said the plan's text portion soon will be available for public comment and will come back to NAHAB and the City Council. Final allocation agreements will be in place by October 1, 2006. 5 - Affordable Housina Discussion Council feedback was requested regarding NAHAB's letter regarding affordable housing issues. Concern was expressed that the City had missed its opportunity to create an affordable housing trust/pool, or inclusionary zone, and have it funded by luxury beach developments. It was felt that NAHAB should be proactive on affordable housing issues. It was noted that Florida recently had adopted a workforce housing bill for public service employees. A member offered to draft a letter to the City Council outlining NAHAB recommendations regarding affordable housing. . Mr. Carroll reported the City, County, and City of St. Petersburg are funding an affordable housing nexus study that will provide an overview of Clearwater' affordable housing Neighborhood & Affordable Housing 2006-05-09 2 . . . inventory and needs, include information necessary to develop a possible inclusionary zoning ordinance, and, when completed, will be presented to the City Council and NAHAB. Should the County fund their recently created Housing Trust Fund, the City would be a beneficiary. As the County is proactive regarding affordable housing issues, many local municipalities are waiting to review the results of County efforts. A countywide dialog regarding affordable housing issues is necessary. Restraints in the regulatory process also need to be considered. Many cities are challenged with affordable housing issues. In response to a question, Mr. Carroll will report on where homeless individuals go after leaving shelters. In the last five years, 12,200 rental units in Pinellas County have been lost due to condominium conversions. The current rental unit occupancy rate of 98% has fueled rent hikes. In 2005, no rental building construction permits were issued inthe County. Concern was expressed that some landlords raise rents without improving properties. Investors are purchasing many affordable housing units. Mr. Carroll said the City strictly enforces the Code and, if necessary, will place liens on properties that violate Code. City-owned land cannot be given to nonprofit organizations. The City is working to develop incentives for the construction of affordable housing. It was remarked that due to the cost of land, construction, architectural design, etc., builders cannot produce affordable housing units without City subsidies. Concerns were expressed that high-rise luxury condominiums are replacing marinas and waterfronts, pedestrians can no longer see the beach, property taxes have increased, when they should have decreased, and that increases to land and property values affect affordability for all. Mr. Carroll said affordable housing is a City priority and will continue to be an issue as Clearwater is built-out. The City has an excellent rehabilitation program to help homeowners remain in their homes. The City also is considering an Aging in Place Program for seniors. After its completion in July, staff will share with NAHAB this year's Governor's Affordable Housing Study Commission report on the preservation of affordable housing. Staff will continue to research new tools to address affordable housing issues. 6 - New/Old Business Mr. Holmes said staff hopes to provide to NAHAB at the next meeting, a draft of their analysis of fair housing impediments, as part of the Consolidated Plan process. 7 -Next Meetina - Julv 9. 2006 The next NAHAB meeting is scheduled for July 11, 2006. 8 - Adiournment The meeting adjourned at 9:55 a.m. / l,--,- ordable Housing Chair, Neighborhood Advisory Board Neighborhood & Affordable Housing 2006-05-09 3