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03/19/1996 NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD CITY OF CLEARWATER March 19, 1996 Present: Shirley Moran Chair Mayme W. Hodges Vice-Chair Rev. William Graham Board Member William Turner, Sr. Board Member Bertha Kelley Board Member Howard Groth Board Member Mary Myhill Board Member Milly Joplin Board Member Alan J. Ferri Economic Development Director Michael Holmes Economic Development Assistant Director Linda Byars Economic Development Loan Officer Patricia O. Sullivan Board Reporter Absent: George Konstantinidis Board Member The Chair called the meeting to order at 10:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM # 2 - Approval of Minutes Member Joplin moved to approve the minutes of the regular meeting of February 27, 1996, as recorded and submitted in written summation to each member. The motion was duly seconded and carried unanimously. ITEM #3 - Agency Presentation - Economic Development - Loan Officer Linda Byars Loan Officer Linda Byars said Economic Development is concerned that moderate and low income residents live in safe, sanitary housing. Funding is provided by CDBG (Community Development Block Grants), HOME, and SHIP (State Housing Initiatives Partnership). Last year, the City assisted in rehabilitating 40 homes, helped provide closing costs to 40 low to moderate income families, and provided emergency aid for electrical, plumbing and roof replacement for 15 homes. Local lending partners helped moderate income residents refinance their homes. The City helped negotiate rehabilitation contracts and worked with those about to lose their property. Since 1991, 74 new infill houses were financed in North Greenwood. CHA (Clearwater Housing Authority) has started rehabilitating a 28 unit project for low-income home ownership. Ms. Byars introduced clients attending the presentation: Mildred Henderson; Mrs. Lloyd; Todd Wright; Altamese Bryant; and read a letter of thanks from Pamela Fuller who valued Construction Manager Dixie Walker-Duncan's expertise regarding construction matters. Problems addressed for those in attendance included: roof replacement; handicapped access installation; unsafe window replacement, heating and electrical system repair; and a balloon mortgage. Judith McKeever, whose income is limited to SSI, had thought her situation was hopeless. She thanked Ms. Byars and Construction Specialist Jeff Daines for their help in repairing her roof and electrical problems and correcting her legal ownership problem. Economic Development Director Alan Ferri said the septic system of one home, owned by low-income, elderly, enclave residents, no longer operated properly. After the property was annexed into the City, the residents qualified for funding to cover annexation impact fees, hook up fees, and lateral construction costs. He spoke of the Economic Development Department's success at leveraging public dollars with local lending partners. Construction management protects clients from unscrupulous contractors, inspects work, and identifies project costs and work required to address safety and health priorities. Production numbers have increased fourfold in the last two years. Appreciation was expressed to the large number of people who attended today's meeting demonstrating their support. It was acknowledged that none of the mortgages on the 74 infill houses had defaulted. It was felt it was particularly gratifying for a group to take the time to recognize the City for doing a good job. Economic Development has helped residents secure more than $2-million in loans. Single parent, Virginia Board, wished to express gratitude for the program which was "like a miracle" for her and her four children. She said the emergency plan implemented by staff kept her children safe and out of an emergency shelter. Ms. Byars said Ms. Board had lived in her house for 10½ years as a tenant. Economic Development helped her acquire the house. ITEM #4 - Subgrantee Reports Mr. Ferri said the Subgrantees have improved compliance. Only one report was late. In answer to a question, he said agencies must accommodate the City's fiscal year schedule. NAHAB (Neighborhood & Affordable Housing Advisory Board) does not review applications for agencies that cannot meet this requirement. Subgrantee reports help with fiscal monitoring. Staff contacted the director of Tampa Bay CDC (Community Development Corporation) when they noticed the numbers were depressed. He indicated funds reserved for down-payment assistance were not being used as rapidly as projected. Agencies can shift funds to similar projects automatically to meet changing market conditions. Tampa Bay CDC also purchases HUD foreclosures, repairs them to meet code, and markets them to first time homeowners. Unused funds remain in the City-wide pool within their existing categories. It was felt all available funds should be used to help those in need. Mr. Ferri agreed receiving a credit for unused funds wasted taxpayer money. Mr. Ferri said funding is moving into the community more efficiently and cost effectively. He expressed concern the program faces a large potential cut. Two years ago, the City received $3.3-million. Last year, the City received $2.2-million. This year's grant is estimated at $1.6-million. The department has drawn down old money as demand for services grows. In answer to a question, he said the Mustard Seed Foundation had no activity but has begun marketing the program and hiring staff. ITEM #5 - SHIP (State Housing Initiatives Partnership) - Local Housing Assistance Plan SHIP, passed in 1992 to create a funding package for State and local affordable housing programs, is funded by documentary stamps on deeds. The program supplements the Florida housing finance agency programs and acts as a local match for federal housing grants and programs. Allocations are based on population but strategies are designed locally. NAHAB, the City Commission, and staff determine local fund allocations. To qualify for funding, the City must have a local affordable housing assistance trust fund, a local housing assistance program, an affordable housing advisory committee (NAHAB), and designate responsibility for implementing and administering the program. SHIP requires 65% of the funds be allocated for home ownership, that 30% of all assisted families must be very low income, and 30% must be low income. The balance of funds can be used for moderate income families. SHIP requires 75% of the funds be used for construction, rehabilitation, or emergency repair. Down-payment assistance is limited to homes priced lower than 90% of the area's medium purchase price. Loan terms cannot exceed 30 years and mortgages must be affordable to the income group served. Ownership units are subject to subsidy recapture provisions. This year's plan is similar to the one Florida accepted and approved last year. The act sunsets in four years. The City's annual allocation of SHIP funds is $572,384. Mr. Ferri predicted no spare FY (fiscal year) 1995/96 SHIP funds will remain. Any leftover funds must be spent according to the original plan. SHIP covers shortcomings of the City's housing program not assisted by HOME and CDBG (Community Development Block Grant) funds. Federal programs do not address the needs of medium income residents. SHIP is the only source that pays impact fees for infill housing. In answer to a question, Mr. Ferri said the $56,500 administration fee covers hours worked by the assistant director, loan officers, construction managers, and himself. Staff catalogs every hour for each program funding source. SHIP funding is limited to rehabilitation, new construction, and down-payment financing because those categories mirror existing CDBG and HOME programs. Before a subgrantee allocates money, a loan officer acts as a monitor and chooses a funding source to fit the client's eligibility and program requirements. City-wide pools combine CDBG, HOME, and SHIP funds. As the program is streamlined, well marketed, and well monitored, demand grows and temporary funding shortages are predicted. Ms. Byars said gap financing is rarely used or requested. Most homebuyers qualify for the house they buy unless they have extremely low income. Funding is targeted mostly for down-payment and closing cost assistance. Mr. Ferri said Community Services Foundation trains up to 80 families a year on budgeting, property maintenance, etc. Banks find this training valuable. The Homebuyers Club of Tampa Bay complements Community Services' efforts by providing one-on-one counseling and organizing a peer support group of Community Service graduates for monthly meetings to support each other in budgeting capital necessary to purchase a house. More than 100 families belong to the club. In answer to a question, Ms. Byars said marketing these programs on C-View TV's bulletin board has generated many calls. Her mailing list targets realtors who deal specifically in low income housing. She also meets with bank loan officers to advise them of the program. Mr. Ferri said the City's new interactive kiosks will list information regarding the City's housing and economic development programs. Broadcasting NAHAB meetings also generates responses. Distributing brochures to human service agencies was suggested. Ms. Byars said brochures on the program had been drafted for distribution to banks, mortgage companies, realtor offices, etc. Final copy is delayed until Economic Development moves into new quarters. Mr. Ferri reported the Community Response Team generated more than 40 rehabilitation client leads for the program and CNHS (Clearwater Neighborhood Housing Services). In answer to a question, he said the Tampa Bay Community Development Corporation spent $6,292.67 to assist four clients buy homes. Mr. Ferri requested comments on the SHIP plan and for NAHAB to recommend the City Commission approval. The report is due May 1, 1996. Member Groth moved to adopt the SHIP (State Housing Initiatives Partnership) local housing assistance plan for July 1, 1996 through June 30, 1997, and recommended its passage by the City Commission. The motion was duly seconded and carried unanimously. ITEM #6 - Board Member Monitoring Reports Member Turner reported he spoke with CNHS Assistant Director Jerry Spilatro who indicated the agency's main problem is obtaining lots for their in-fill housing program. CNHS' rehabilitation program is close to their target. Clarification was made that the Neighborhood Partnership resulted from a Neighborhood Reinvestment Corporation recommendation to CNHS to create a major marketing initiative for that neighborhood. In answer to a question, Mr. Ferri said CNHS' economic development loan has committed $50,000 as a direct loan to one new area business. Two other businesses have had to go to the State for variances to address problems related to the small lot sizes in the North Greenwood commercial district. A loan for a neighborhood beauty shop will be finalized soon. He reported Central Permitting developed a district parking plan for the North Greenwood commercial district that removes some on-site parking requirements. This change should help businesses accommodate zoning requirements. The City plans to develop another parking lot nearby. Chair Moran reported on the Salvation Army Homeless Intervention. She expressed concern the agency acted irresponsibly when they did not return her telephone calls to schedule an appointment. She recommended reviewing this issue in the future. The project operates out of double-wide trailer donated by the Police Department and located by Everybody's Tabernacle. The program has 20 beds and usually houses 15 - 20 persons each night. The average stay is seven days. Most residents are male. The program will move to new premises at the corner of Pierce and Franklin in approximately five weeks. Renovation costs for the new location are double those anticipated. Chair Moran said Mustard Seed still is not operating. They are unable to occupy their new facilities until the City issues a Certificate for Occupancy. Everybody's Tabernacle is moving forward with their renovations and seems to be on target. Mr. Ferri said all applications for the consolidated funding programs are due April 19, 1996. He recommended members complete all monitoring visits before that date and requested members then go on hiatus until after they complete the applicant agency evaluations on June 4, 1996. ITEM #7 - Old Business a) North Greenwood Community meeting with the City Commission, March 26, 1996, at 7:00 p.m. at the Martin Luther King Center It was recommended that board members attend this meeting. Consolidated Planning Process Calendar of Events Mr. Ferri reported technical assistance meetings are scheduled at 10:00 a.m. and 6:00 p.m. at the City Hall Annex auditorium on March 20, 1996. Staff is available for all applicant agencies until April 19, 1996, to provide technical assistance in the preparation of applications. The City must make special efforts in the planning process to solicit public and program provider input regarding homelessness, economic development, persons with special needs, and housing. Homeless service providers and homeless individuals are invited to the first meeting for comments on existing programs and suggestions for improvements. The schedule is: 1) March 26, 1996 - Homelessness - 1:00 p.m. - Everybody's Tabernacle; 2) March 29, 1996 - Housing - Condon Gardens; 3) April 2, 1996 - Economic Development; and 4) April 4, 1996 - Special Needs Population. A schedule will be forwarded to members. He urged members to attend all meetings possible. Members can meet and ask questions of agency staff during the scheduled May 3, 1996, tour of applicant agencies. NAHAB will complete evaluations at the June 4, 1996 meeting. The Consolidated Plan will be drafted for public comment by June 14, 1996. ITEM #8 - New Business Mr. Ferri reported Everybody's Tabernacle Homeless Emergency Project presented a Lifetime Achievement Award to the City of Clearwater CDBG in appreciation for the establishment of a dormitory to provide shelter to the homeless. ITEM #9 - Announcements a) Next Schedule Agency Report Loan Officer Diane Hufford will report on Economic Development's loan program. b) Next Scheduled Meeting - April 16, 1996 ITEM #10 - Adjournment The meeting adjourned at 11:29 a.m.