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03/08/2022 Neighborhood and Affordable Meeting Minutes March 8, 2022 Housing Advisory Board City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 m s Meeting Minutes Tuesday, March 8, 2022 9:00 AM Main Library - Council Chambers Neighborhood and Affordable Housing Advisory Board Page 1 City of Clearwater Neighborhood and Affordable Meeting Minutes March 8, 2022 Housing Advisory Board Roll Call Present 7 - Chair Camille Hebting, Vice Chair Kevin Chinault, Board Member Peter Scalia, Board Member Gaby Camacho, Board Member Lindsay Dicus-Harrison, Board Member Carmen Santiago, and Board Member Robyn Fiel Also Present - Denise Sanderson — Economic Development & Housing Director, Chuck Lane — Economic Development & Housing Assistant Director, Patricia O. Sullivan — Board Reporter 1. Call To Order The Chair called the meeting to order at 9:00 a.m. at the Main Library followed by introduction of Board Member Robyn Fiel. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. 2. Approval of Minutes 2.1 Approve the December 14, 2021 NAHAB Meeting Minutes Member Chinault moved to approve minutes of the December 14, 2021 Neighborhood & Affordable Housing Advisory Board meeting as submitted in written summation. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda: None. 4. New Business Items 4.1 Recommend City Council approval of the Economic Development and Housing Department Lot Disposition Program. According to Section 2.01 of the Clearwater City Charter, "... the City Council may approve the donation or sale for less than fair market value of city-owned property of not more than five acres in size for Workforce Housing. Workforce Housing means housing affordable to persons or families whose total annual income does not exceed 120 percent of the Area Median Income, adjusted for household size, as published by the U.S. Department of Housing and Urban Development (HUD) for Pinellas County or metropolitan area. "From time to time, the city may acquire real property suitable for development of single-family homes that may be transferred to Workforce Housing developers. Pursuant to Section 166.0451, Florida Statutes, the city is required to maintain a Council-approved list of these properties. These properties are usually not acquired with the use of General Page 2 City of Clearwater Neighborhood and Affordable Meeting Minutes March 8, 2022 Housing Advisory Board Funds; they are more commonly acquired through foreclosure of municipal code liens or through the escheatment process for nonpayment of taxes. Most typically, these properties are located within Clearwater's more vulnerable neighborhoods and new construction on these lots is an effective strategy to reduce blight and to increase the availability of decent, affordable homes. Under the program, Economic Development and Housing staff will solicit, evaluate, and maintain a list of interested developers (LIDs) who meet predetermined criteria. LIDs will be notified when a property is available for disposition and will be asked to submit an application to acquire the property. Developer applications to acquire available property will be reviewed and scored by the Property Disposition Committee (PDC) comprised of representatives from the Economic Development and Housing Department, the Planning Department and the Chair of the Neighborhood and Affordable Housing Advisory Board (NAHAB). The PDC will submit a recommendation to the NAHAB who will either endorse the PDC's recommendation or will submit a separate recommendation for City Council consideration. Per City Charter, the transfer of property requires approval by City Council. The PDC's scoring criteria is intended to consider a developer's experience and level of commitment to completing construction. It also gives preference to a developer who will commit to constructing additional homes in Clearwater and to those that will incorporate environmental features into the home. Properties approved for disposition by Council will be transferred by special warranty deed containing a reverter clause whereby the developer will be required to transfer the property back to the City upon failure to construct and sell the home to a qualified buyer within a predetermined period of time. Assistant Economic Development & Housing Director Chuck Lane said City Council approval of the Lot Disposition Program was not required. Every 3 years, as a recipient of SHIP (State Housing Initiatives Partnership) funding, the City is required to update its City Council approved inventory of City- owned property that may be available for affordable housing; 2 properties suitable for development of single-family residences are listed on the City's website. Mr. Lane said previously properties on the list were available for developers on a 1st come 1st served basis. He reviewed the Property Disposition Program and draft of Property Disposition Program scoring criteria: 1. Are you a registered Non-profit Organization? Y- 2 points N- 0 points 2. Have you received a lot through the City of Clearwater's Lot Disposition Program within the past 12 months? Y- 0 points N- 1 point 3. From date of acquisition, within how many months do you anticipate commencing vertical construction? 6 mos. - 2 points 3 mos. - 3 points 4. From date of acquisition, within how many months do you anticipate selling the completed home to a qualifying homebuyer? Page 3 City of Clearwater Neighborhood and Affordable Meeting Minutes March 8, 2022 Housing Advisory Board 18 mos. - 0 points 15 mos. - 1 point 12 mos. - 2 points 9 mos. - 3 points 5. Do you have experience assisting homebuyers in obtaining financing for homes limited by income eligibility? Y- 2 points N- 0 points 6. Do you have experience providing future%xisting homeowners with homebuyer/homeowner education? Y- 2 points N- 0 points 7. Does your organization work specifically within, or own any other property within 2 miles of the subject lot? Y- 1 point N- 0 points 8. Has your organization constructed any other homes within 2 miles of the subject lot within the last 2 years? Y- 1 point N- 0 points 9. Does your organization own other property within City limits that it will commit to develop concurrently with development of the site offered for disposition (commencement or completion, respectively, within 6 months)? Additional site cannot be one acquired through the City's Lot Disposition Program, however, acquisition or construction may be assisted by the City through other means. Y- 2 points N- 0 points 10.Does your organization own or control property adjacent to the site offered for disposition that you are willing to combine with the site to provide for a more desirable development opportunity? Property Disposition Committee and NAHAB will evaluate this criterion and determine the appropriate number of points. 11. Will you include rooftop solar panels or other features to substantially reduce energy costs for homeowner? Y— Solar- 2 points N- 0 points Y— Other features to substantially reduce energy costs - 1 point 12. Will you install an electrical vehicle charger or rough wiring for an electric vehicle charger? Y- 1 point N- 0 points Mr. Lane said successful applicant organizations that fail to comply with answers to questions 3, 4, 9, 10, 11 and 12 will be disqualified from the program for 12 months. Staff may consider mitigating circumstances for failure to comply with answers to questions 3 and 4. Projects must be completed and sold within 18 months of property acquisition. Mr. Lane said the Committee could meet virtually, reviewing applications should take an hour or less. The Committee will present their recommendations to NAHAB which may accept them or present other recommendations to the Council. The process can be modified over time. Discussion ensued with concerns expressed under 1) Criterion 3— 3 months is insufficient time to obtain necessary permits and 2) Criterion 4 — selling to qualified buyers takes more time. In response to questions, Mr. Lane said he would clarify language for Criteria 2 and 8, the intent was to engage additional community development organizations. He monitors developments to verify application goals are met. Keeping the process moving is important. Developers on the list will be emailed each time a property becomes available, developers can be added or removed from the list. Developer contracts include a reverter clause. Page 4 City of Clearwater Neighborhood and Affordable Meeting Minutes March 8, 2022 Housing Advisory Board Staff was thanked for designing a streamlined efficient process. Member Chinault moved to approve the Economic Development and Housing Department Lot Disposition Program. The motion was duly seconded and carried unanimously. 4.2 Discuss City Council Presentation by NAHAB Chairperson Mr. Lane recommended the Chair present an annual report to the City Council re board activities and to obtain City Council feedback. Suggestions were made to establish affordable housing programs for single people and for the report to 1) recap board activities including challenges of an increasingly expensive housing market, 2) review the board's role, evolution of board responsibilities and what the board and City are trying to accomplish re homelessness and affordable housing, 3) review accomplishments, and 4) request input on how best to work with the City Council and focus on organizing the network of local providers to create a synergy that best serves the homeless and affordable housing recipients. As the direction of affordable housing has changed, it was recommended an informal Board-lead annual workshop be scheduled in the next few months with professionals such as Realtors, lenders, and homeless and affordable housing service providers to discuss the efficacy of City programs, solutions, improved efficiencies, and to develop strategies that coordinate countywide efforts and resources to better serve clients with an expedited and simplified process. A workshop participation incentive was suggested that would award points to Community Development Block Grant funding applicants. 4.3 Election of Officers Member Scalia moved to reappoint Camille Hebting as Chair. The motion was duly seconded and carried unanimously. Chair Hebting moved to reappoint Kevin Chinault as Vice Chair. The motion was duly seconded and carried unanimously. 5. Old Business Items: None. 6. Director's Report Mr. Lane said a County housing compact was recently signed. Affordable housing construction costs have escalated and down payment assistance amounts may need to be increased. Staff sends eligible residents reminders re the City managed homeowner rehab program. Mr. Lane serves on the Page 5 City of Clearwater Neighborhood and Affordable Meeting Minutes March 8, 2022 Housing Advisory Board countywide tactical committee and will push for a standard local form for all countywide housing programs. A countywide plan should be in place this summer. It was commented that increased down payment assistance in Largo only qualified buyers to purchase condos. Discussion ensued re the housing shortage, properties receiving multiple offers and selling above appraised values, home inspection and homeowners insurance difficulties, and the inability of buyers in City programs to negotiate required repairs or closing dates. It was noted that supply chain problems have delayed building projects, increasing construction costs by up to $40,000 per unit since the pandemic began and making it harder for developers to build affordable housing. Suggestions were made to expedite home inspections to prevent loan disqualification near the end of the process due to last minute repair requirements and to task a single local organization with preapproving loans and helping homebuyers who are distracted by each government entity's separate rules, maximum loan values, and city border restrictions. It was recommended the City generate an affordable housing program pamphlet for grant applicants to distribute to buyers to review at home. Mr. Lane discussed the City's foreclosure program, a tool of last resort. Economic Development & Housing Director Denise Sanderson said the of the City's 400 active loans approximately 12 were late or non-payment. She did not anticipate more foreclosures beyond a single egregious case. In response to concerns, Mr. Lane said rents have increased by 24% - 31% in the last year, demand exceeds supply. The County is working on emergency rental relief. He did not think regulations would solve the problem, rather they more likely would discourage construction of more units. Discussion ensued with comments that rental assistance served as a delay tactic and instituting moratoriums on rent increases would encourage evictions resulting in higher rental rates. It was commented that an increased supply of affordable housing was crucial unless substantial local wage increases occur. It was stated employers need to be involved and bear some responsibility as companies benefit when employees live locally in affordable housing. Ms. Sanderson said a review in 2009/10 indicated many low skilled, low-wage employees commuted from distant Citrus County and Lakeland. With high gasoline prices, it was questioned if these employees could afford to continue working in Pinellas County. It was suggested a State of Emergency be declared for affordable housing. It was stated affordable housing is imperative for employees who provide essential services necessary to support the local economy. Page 6 City of Clearwater Neighborhood and Affordable Housing Advisory Board 7. Board Members to be Heard: None. Meeting Minutes 8. Adjourn The meeting adjourned at 10:40 a.m. March 8, 2022 Chair Neighborhood Affordable Housing Advisory Board Page 7 City of Clearwater