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04/16/1996 NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD CITY OF CLEARWATER April 16, 1996 Present: Shirley Moran Chair Mayme W. Hodges Vice-Chair Rev. William Graham Board Member William Turner, Sr. Board Member - arrived 10:02 a.m. Bertha Kelley Board Member Howard Groth Board Member Mary Myhill Board Member Milly Joplin Board Member - arrived 10:13 a.m. Michael Holmes Economic Development Assistant Director Diane C. Hufford 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 Consensus was to postpone approval of the minutes of the regular meeting of March 19, 1996, until the May 21, 1996 meeting. ITEM #3 - Agency Presentation - Economic Development - Loan Officer Diane Hufford Loan Officer Diane Hufford reported the Economic Development Department offers technical assistance opportunities to small City businesses and to those relocating to Clearwater. She reviewed SBA (Small Business Administration) standard criteria used to classify a business as "small" and qualified for aid. Economic Development has available brochures listing these criteria. Qualifying small businesses apply to local lenders for guaranteed SBA loans. Staff can help a wide range of qualifying businesses develop business plans to obtain capital and tailor financing packages to meet SBA program guidelines. Ms. Hufford will provide board members with a business plan outline. The SBA 7A Program is for businesses needing working capital, etc. The SBA 504 Program is a partnership program and provides long term fixed-asset financing at below market rates. One important qualification requires the creation of a permanent job for every $35,000 of SBA funds provided. Federal funds available for businesses lacking tenure offer short term loans and require job creation for very-low or low-income persons. Last year, Economic Development leveraged over $4.5-million in private funds from local banks. In the first quarter, staff has leveraged $1.5-million in loans, resulting in 12 Clearwater businesses adding 44 employees to their payrolls. Economic Development works in partnership with CNHS (Clearwater Neighborhood Housing Services), monitoring business activities funded by the City with Federal dollars. Last year, a staff seminar covered export trading in the 90s. The May 15, 1996, seminar addresses general marketing, marketing information, etc. Loan Officers currently are part of the team staffing the CRA (Community Redevelopment Agency) office. In answer to a question, Economic Development Assistant Director Michael Holmes said NAHAB (Neighborhood & Affordable Housing Advisory Board) does not review or approve loans but sets the loan pool funding amounts. It was noted NAHAB can educate the community regarding available programs. In answer to a question regarding loans to small businesses and artisans, Ms. Hufford said an Economic Development program supported by federal funds helps businesses become "bankable" and qualify for loans. A loan committee reviews all program loans. In answer to a question, Ms. Hufford reviewed her background as a loan officer, familiar with SBA lending. In answer to a question, Mr. Holmes said Economic Development is working with Winn Dixie to open a store locally. Ms. Hufford indicated grocery stores create job opportunities. Ms. Hufford said several banks are authorized to handle SBA loans. To help expedite the process, Economic Development helps complete the extensive paperwork and contacts clients' banks to verify their status as SBA lenders. ITEM #4 - Subgrantee Reports All agencies submitted reports except CSF (Community Services Foundation) and Neighborly Senior Services. CSF has someone new responsible for this report. Neighborly Senior Services also experienced administrative difficulties. In answer to a question, Mr. Holmes said when a property has gone to official closing, money is "encumbered" by being deposited in escrow and available to the homeowner through a two-way check. A similar program that funds rehabilitation projects is payable once a City inspector approves the work. These funds come from CDBG (Community Development Block Grants) and SHIP (State Housing Initiatives Partnership). It was noted expenditures for Partners in Self Sufficiency were not posted in March. Mr. Holmes said that report was late and staff was unable to include the information in the report. Staff will continue indicating the importance of submitting reports on time and emphasizing how time lines affect agencies' rankings. It was recommended to encourage non-profits to act responsibly regarding submissions. In answer to a question, Mr. Holmes estimated CNHS has 20 outstanding loans. Repayment of one loan could result in a high month's income. Not much activity has occurred with this program. The City had allocated $50,000 to this program. It was questioned if the CRT's (Community Response Team) report reflects visits to separate clients or repeat visits. Staff is working with the CRT to list multiple visits to the same address only once. HUD requires information regarding the number of households assisted. It was noted the CRT is doing a great job. It was questioned why the City-wide rehabilitation program does not appear of the cover sheet of the board's reporting forms. It was suggested that staff add lines to the report and include this information on the cover sheet. ITEM #5 - Board Member Monitoring Reports Member Graham reported he met with Michael Boykins, Unit Director of the Condon Gardens Boys and Girls Club. It is difficult to retain older children because the club offers few activities that interest this group. The club lacks funds to purchase games of interest to teen children. To meet the needs of older children, the program needs workers, funds, four computers, and a copy machine. Participation is good but the club can accommodate more children. It was questioned if older children had expressed an interest in specific activities. Member Graham said they are interested in computers. It was suggested the children be taught chess, crafts, and carpentry. Member Graham said Girls Inc. teaches some of those skills. Member Myhill reported she spoke with Francis Cato, Director of Community Services and Human Resources for POC (Pinellas Opportunity Council). The POC, founded in 1968, has a 50 member staff and administrative offices in St. Petersburg with five satellite offices in North and South county. Last year, POC served more than 2,000 very-low income clients. The executive director is a member of a 30-member board that represents the public and private sectors and low income residents. She felt this inclusion is important. The City has funded the Chore Services program which assists frail and homebound elderly with heavy projects such as lawn care and housekeeping. City funds did not pay for any POC administrative services. The POC has an AIDs respite program, supports job development and senior employment assistance programs, and provides food baskets and subsidies for medicine, eyeglasses, utilities, rent, and mortgage payments. Referrals come from HRS, other agencies, and word of mouth. The POC is funded by federal, State, and City sources, churches and other agencies. The City funded only one of POC's programs. Member Kelley reported she spoke with the director of Neighborly Senior Services. Showers were not installed due to uncertainties regarding the program's future location. As planned renovations currently include showers, the agency plans to use the City's appropriation of $6,000 for supplies. It was questioned if the City must approve a change of use when funds were allocated for a specific purpose. Mr. Holmes said Economic Development Executive Director Alan Ferri can approve minor changes. To substantially change the use of funds, an agency is required to repeat the citizen participation process. It was questioned if a policy or procedure specifically addresses an agency independently changing direction in the use of allocated funds. ITEM #6 - Old Business a) Review NAHAB Consolidated Plan Calendar Funding applications are due April 19, 1996. Site visits are scheduled for May 3, 1996. If many applications are submitted, additional visits may be scheduled for May 4, 1996. Subgrantees will make their presentations on May 21, 1996. The Technical Review Committee will analyze applications on May 28, 1996, and NAHAB will complete their evaluations on June 4, 1996. By June 14, 1996, the Consolidated Plan will be drafted for public comment, extending until July 18, 1996. The Plan will be presented to the City Commission on July 18, 1996, and submitted to HUD on August 15, 1996. The Chair will present NAHAB's Annual Report to the Commission on June 6, 1996, shortly after 6:00 p.m. All board members are requested to attend. Members Myhill and Joplin volunteered to work with the Chair reviewing NAHAB's past year's accomplishments. ITEM #7 - New Business a) New Municipal Lobbying Ordinance Mr. Holmes reported on March 21, 1996, the City Commission adopted Ordinance #6002-96, requiring lobbyist registration. He reviewed ordinance requirements and noted NAHAB is subject to lobbying regulations. Every lobbyist must register before approaching NAHAB members. Concern was expressed a large gray area exists. NAHAB members will be required to inquire if someone who is lobbying is registered. It was suggested the City develop a registration card. ITEM #9 - Announcements a) Next Scheduled Agency Report The Chair noted no reports will be scheduled until the application process is complete. Mr. Holmes said the next report will be scheduled for October 1996, after the next Fiscal Year's funding begins. As agencies receiving funds are identified before October, it was suggested to schedule a report in September. It was noted too much time is lost due to the extended application process. Concern was expressed last year's schedule did not permit each agency to make a presentation. Mr. Holmes suggested more reports could be scheduled each meeting if each report is shorter in length. It was felt every agency should present an annual report. Reports help board members evaluate applications and understand how agencies are progressing. Consensus was to schedule each funded agency for a presentation in Fiscal Year 1996/97. Regarding subgrantee presentations, Mr. Holmes said NAHAB members will be provided copies of agency applications that meet program requirements prior to the May 3, 1996, site visits. b) Site Visits - May 3, 1996 Mr. Holmes reported the bus trip will begin in front of City Hall Annex on Friday, May 3, 1996, at 9:00 a.m. c) Consolidated Plan applicants presentations - May 21, 1996 Applicant presentations are scheduled for May 21, 1996, at 7:00 p.m. in Chambers. d) Next Scheduled Regular Meeting - May 21, 1996 In lieu of the regularly scheduled May meeting, NAHAB will meet on May 21, 1996, at 6:00 p.m. for applicant presentations. Mr. Holmes said staff will send notice regarding the location and time of the June 4, 1996, evaluation meeting and distribute copies of the rating sheet. The next regular NAHAB meeting is scheduled for June 18, 1996, at 10:00 a.m. ITEM #10 - Adjournment The meeting adjourned at 10:51 a.m.