03/13/2007
NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING MINUTES
CITY OF CLEARWATER
March 13, 2007
Present: Lisa Hughes Chair
Donald Brackett Vice Chair
John Sabatier Board Member
Kip Corriveau Board Member
Laurel Braswell Board Member
Peggy M. Cutkomp Board Member
Josephine Carbone Board Member
Also Present: Michael Holmes Housing Manager
Patricia O. Sullivan Board Reporter
The Chair called the meeting to order at 9:07 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 13, 2007
Member Sabatier moved to approve the minutes of the regular meeting of February 13,
2007, as corrected: page two, paragraph three, first sentence to read, “Discussion ensued
”
regarding difficulties in documenting residency for services to Clearwater residents.The
motioncarried
was duly seconded and unanimously.
4 - Garden Trails Apartments
Housing Manager Michael Holmes reported as part of the City’s Consolidated Planning
Process, Peter Leach, Vice President of SP Garden Trail LLC, had submitted an application on
October 11, 2006, for funding, not to exceed $350,000 in FY (Fiscal Year) 2007/08 SHIP (State
Housing Initiatives Partnership) funds, toward construction costs for a 75-unit apartment
complex at 609 Seminole Street. The exact amount of funding has not been determined due to
current underwriting. The note would not exceed 30 years with interest rates: 1) 0.0% for years
1 – 5; 2) 1.0% for years 6 – 10; 3) 2.0% for years 11 – 20; and 4) 3.0% for years 21 – 30.
As proposed, the project will have 15 one-bedroom, 52 two-bedroom, and 8 three-
bedroom units. All units will feature dishwashers and washer/dryer hook-ups. On-site
amenities will include but not be limited to a swimming pool, community room, and playground.
According to the application, monthly rents will be very affordable to low- to moderate-income
families, with all units rent-restricted: 1) 15% for families at 35% of AMI (Area Medium Income)
and 2) 85% for families at or below 60% of AMI.
HUD’s (Housing & Urban Development) Department CHAS-2000 Housing Needs
Tables, based on the 2000 census, identified a need for additional rental housing units in
Clearwater. Of 3,182 rental households at the poverty level (<30% of AMI), 71% (2,259
households) had housing problems and 57% (1,817 households) paid more than 50% of their
Neighborhood & Affordable Housing 2007-03-13 1
income for housing, which is considered severely cost-burdened. Of the City’s 2,636 very-low
income households (31% - 50% MFI), 84% (2,220 households) had housing problems and 41%
(1,073 households) also paid more than 50% of their income for housing.
The Bay Area Economics Nexus Study reported during a significant tightening of the
market, Pinellas County rents had increased 12% in two years, from $716 in 2004 to $801 in
2006. During those years, vacancy rates fell from 7% to 3.8%, partly due to a reduction in rental
housing stock (including apartment to condo conversion) and an increase in the rental
population due to the lack of affordable housing for homeownership.
The project is anticipated to inject more than $13 million into the North Greenwood
neighborhood. The applicant has proposed that a portion of the project will be financed by an
allocation of Low Income Housing Tax Credits from the Florida Housing Finance Corporation.
The cost breakdown is approximately $8 million in hard costs, $1 million in soft and financial
costs, $1.5 million in developer’s fees, and $2.275 million land cost. Financial sources include a
first mortgage (lender to be determined) of approximately $1.7 million, a SHIP loan not to
exceed $350,000, tax credit equity (investor to be determined) of approximately $10.4 million,
and deferred developer’s fee of approximately $566,000.
Southport Financial Services, Inc., an experienced tax credit developer, will develop the
project. The firm has built or rehabbed over 2,700 affordable housing units on the east coast
and in Florida. The applicant must apply for Low Income Housing Tax Credits by the March 20,
2007, deadline. Awards will be announced by this fall. If approved for credits, the developer
proposes to complete architectural plans, obtain site plan approval, and begin construction of
the 15-month project in May 2008. SP Garden Trail LLC operates under the Southport
Financial Services, Inc. umbrella.
Per the City’s Loan Approval Policy, approved in January 2005, loans greater than
$300,000 require approval by the Assistant Director of Housing, Director of Housing, Assistant
City Manager, and City Manager. NAHAB (Neighborhood & Affordable Housing Authority
Board) is requested to approve the tentative commitment of funds from FY 2007/08 SHIP
proceeds. Formal approval will occur in July 2007 during City Council review of the FY 2007/08
Consolidated Action Plan.
Mr. Holmes will report on proposed rental rates, which should be similar to Palmetto
Park rates, less utility allowances. It was noted that the developer fee averages $20,000 per
unit, or between 16% and 18% of the project. It was stated the request is small when compared
with total project costs. Concern was expressed that the NAHAB had received little information
on this item. Mr. Holmes said if the project is not awarded tax credits, the City would invest the
SHIP funds in another project. The City anticipates it will receive $2.8 million next year from
SHIP, HOME (Housing Opportunity Made Equal), and CDBG (Community Development Block
Grant) funding sources. In response to a question, Mr. Holmes said should the development be
unable to meet its obligation to repay the loan as contracted, the City may defer payments.
Isay Gulley, of CNHS (Clearwater Neighborhood Housing Services), requested
information regarding proposed rental rates and noted that the project had changed radically
from the high-end units originally proposed. Mr. Holmes said the development was modified
due to changing market conditions.
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Member Corriveau moved to approve a tentative commitment of funds, not to exceed
$350,000, from FY 2007/08 SHIP proceeds toward construction costs for the 75-unit Garden
Trails Apartment complex at 609 Seminole Street, once evidence is presented to the City that
the project has been awarded Low Income Housing Tax Credits from the Florida Housing
Finance Corporation. The motion was duly seconded and carried unanimously.
5 - New/Old Business
Mr. Holmes encouraged non-profit agencies to attend the FY 2007/08 Consolidated
Action Plan application conference.
6 - Next Meetinq-
Consensus was to approve the amended 2007 NAHAB (Neighborhood & Affordable
Housing Authority Board) meeting schedule: April 20, May 8, July 10, October 9, and December
'11,2007.
The Bus Tour is scheduled for April 20, 2007.
7 - Adiourn
The meeting adjourned at 9:30 a.m.
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Board Reporter
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