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10/21/1997 NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING CITY OF CLEARWATER October 21, 1997 Present: Mary Myhill Chair Rev. William Graham Board Member Milly Joplin Board Member Bertha Kelley Board Member Mayme W. Hodges Board Member Shirley Moran Board Member Warren Hunt Board Member Alan J. Ferri Housing & Urban Development Director Michael Holmes Housing & Urban Development Assistant Director Patricia O. Sullivan Board Reporter Absent: Howard Groth Vice-Chair William Turner, Sr. Board Member The Chair called the meeting to order at 10:03 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 the Minutes Member Moran moved to approve the minutes of the regular meetings of September 16, 1997, as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. ITEM #3 - Agency Presentations a) CNHS (Clearwater Neighborhood Housing Services) CNHS (Clearwater Neighborhood Housing Services) Executive Director Isay Gulley noted board concerns regarding unspent funds. Of $521,329 funded for home ownership, CNHS will return $86,839.54 to the City. Of $288,089.74 funded for housing rehabilitation, none will be returned. With prior permission from Housing & Urban Development Director Alan Ferri, CNHS spent an additional $20,546.04 on this item, using funds budgeted for in-fill housing. Of $174,692.60 funded for economic development, CNHS will return $32,367.12, or 25%. Ms. Gulley said CNHS had used City money to leverage other funds, such as neighborhood investment, Pinellas County, and the private sector. For home ownership, CNHS was able to stimulate $951,347.04 worth or reinvestment, even though the agency fell short of their goal due to delays related to 3 subdivisions consisting of 37 units. Morton Plant Hospital has chosen to locate a clinic on one of the proposed subdivision sites for the highest and best use of the land. Money set aside for another parcel could not used as CNHS could not negotiate a fair price with the owner. Infrastructure funds were not available to build the 3rd subdivision on Betty Lane property CNHS had purchased last year. Adequate funding now is available and all the lots have been pre-sold. Ms. Gulley reported CNHS was affected by a turnover of key staff last Spring in the areas of housing and economic development. The City provided technical support to the new staff for two months,. Difficulties in reaching goals for affordable housing were due to boundary limitations on funding. Suitable lots are difficult to locate. She reported CNHS has built more than 115 new houses. Approximately 5 houses are nearing construction. Ms. Gulley was commended for CNHS constructed in-fill housing, which has improved neighborhoods dramatically. The substantial increase in applications for small business loans submitted to CNHS’ Economic Development Committee was noted. It was felt the new person in that position does a good job. It was questioned if CNHS had considered constructing cluster homes or townhouses due to scarce land resources. CNHS has requested its parent corporation, Neighborhood Investment, for a consultant to begin development of an aggressive housing plan. Cluster homes will be considered. She said several months ago, the community did not support a plan to build townhouses as condominium units. b) Community Services Foundation Mr. Ferri reported Community Services Foundation is unable to attend today’s meeting. Another date will be scheduled. c) HEP (Homeless Emergency Project) Barbara Green, of HEP (Homeless Emergency Project), reported groundbreaking for the new facility will occur soon. The building will be completed in March 1998. The project was delayed due to poor response to the first request for bids. The low bid received during the second request was approximately $882,000. The lower price also is due to a Central Permitting rules change regarding the minimum number of required stairways. She said unspent funds will be used before the six-month extension deadline. Ms. Green expressed concern HEP must turn away homeless persons during construction as the new facility is being built on land where 12 deteriorated housing units previously stood. In response to a question, she said HEP addresses the current needs of homeless people seeking aid at the agency’s emergency shelter, off-site housing, or through referrals. Coalition of Homeless agencies work together so no family must spend the night on the street. In response to a question, Mr. Ferri said the project was delayed due to unforeseen site problems which required a change of scope. Ms. Green announced an upcoming benefit will raise more funds for this project. In response to a question, Ms. Green said the number of homeless families has remained steady over the past year, with between 10 and 12 families seeking aid each day. The numbers increase when children are out of school. In response to a question, she said HEP has been doing warrant checks on all clients for 15 years. Ms. Green indicated the new facility will be able to house approximately 76 persons in 16 units: 1) 12 3-bedroom units and 2) 4 2-bedroom units. In response to a question, she said HEP has arranged a $50,000 bank credit should fund-raising efforts fall short prior to project completion. d) Tampa Bay Community Development Corporation Greg Schwartz, Director of Tampa Bay CDC (Community Development Corporation), reported the agency spent 101% of the funding acquired from the City last year. This figure does not include the $90,000 loan from the City for the CDC to acquire land at the corner of Pierce Street and Evergreen Avenue. Last year, the CDC assisted 21 households benefiting 30 - 35 individuals for the down payment closing costs assistance program. The CDC acquired 2 sites through foreclosures, rehabilitated them, and is now marketing them for sale. The CDC has exceeded its stated goals. The biggest barrier facing the CDC relates to difficulty in finding houses worth rehabilitating. The CDC’s down payment, closing costs assistance program is ongoing. The agency plans to construct 8 single family houses on the Pierce/Evergreen site. Three lots have been reserved but not sold. The City has not yet approved the final site plan. In response to a question, he said the DRC (Design Review Committee) had reviewed a proposal for cluster homes on this site but had decided the site warranted single family homes instead. The change reduced the number of units by one and increased individual lot costs. In response to a question, Mr. Ferri said several organizations have expressed interest in developing the site. City housing programs are beginning to attract national recognition. General Home Development is the proposed builder. In response to a question, Mr. Schwartz said site development costs and impact fees will affect the price of the homes which are projected to sell for the low $70,000s. In response to a question, Mr. Schwartz said the CDC continues to administer the Home Buyers Club which has 900 enrolled members, 600 active. He said 186 members have purchased homes and no longer are counted as members. In a 2-year post-closing program, these individuals receive a newsletter listing helpful tips, information, and telephone numbers for advice and suggested remedies. In response to a question, he said the percentage of members who become homeowners is relative to individual members’ income and personal and credit problems. The average client who purchases a home has been a club member for 13 months. Not all members purchase homes. No former member has experienced a foreclosure. In response to a question, Mr. Schwartz said the CDC’s Home Buyers Club follows each client through the entire home purchasing process and provides monthly newsletters and follow through to make certain clients stay on task. He said the Community Service Foundation provides classes on obtaining a mortgage and certificates of completion. Not all members need those classes. In response to a question, Mr. Schwartz said CDC expanded to Hillsborough County in 1994 and to Tampa in 1995. Next month the agency will open a branch office on West Shore Boulevard to continue those efforts. ITEM #4 - Member Subgrantee Monitoring Reports Mr. Ferri reported NAHAB (Neighborhood & Affordable Housing Advisory Board) members must complete their monitoring visits by February 1998. Visits provide an opportunity to ask questions and review an agency’s operation and reports. It was noted agency presentations have improved. Mr. Ferri expressed concern the City’s allotment of Federal funds will be reduced by 26.6% due to the federal balanced budget legislation. Applicants for these funds are required to attend City sponsored instructional meetings prior to submitting their applications. It was recommended standard questions and guidelines for monitoring visits be developed. Mr. Ferri will prepare a draft. It was suggested members question subgrantees regarding current problems and barriers, if City technical assistance is needed, and an explanation and review of the agency’s ability to meet established goals. In response to a question, Mr. Ferri said information regarding ways agencies leverage City funds is included in grantee performance reports. ITEM #5 - Subgrantee Reports Mr. Ferri reported the subgrantee reports will be distributed prior to the next meeting. On October 16, 1997, the City Commission approved the City’s contract with the NDC (National Development Council). Though NDC the City will be able to provide businesses and home buyers with new financing sources with less rigid requirements than our existing programs. Mr. Ferri reviewed the program. In response to a question, Mr. Ferri said the implementation schedule included in the program activity reports are based on each agency’s proposed time table. ITEM #6 - Old Business a) CHIP (Clearwater Homeless Intervention Project) It was noted CHIP (Clearwater Homeless Intervention Project) had not requested funding for FY (fiscal year) 1997/98. Mr. Ferri said construction of the new homeless facility had been delayed until an appeal was resolved. The City granted the project a 6-month extension to use its funds as the delay was beyond the agency’s control. The project’s groundbreaking occurred in September 1997. The project’s cost increased by $45,000 due to unforeseen infrastructure costs related to soil conditions. The project is expected to be completed by the March 31, 1998, deadline. Consensus was to invite a CHIP representative to address NAHAB. It was recommended the board also invite a Paint Your Heart Out Clearwater representative for a presentation. Consensus was to so schedule. ITEM #7 - New Business a) Brownfield Update Mr. Ferri reported Florida had approved designation of the City’s Brownfield area as one of 5 pilot sites in the State. In addition to $100,000 in Federal funds, the City’s Brownfield area now qualifies for an additional $500,000 in State funding. The designation also means those who finance redevelopment of Brownfield sites will not be held liable for existing contamination. The City Commission will appoint a Brownfield advisory board. NAHAB will provide input regarding acceptable contamination levels and developing standards acceptable to the community. In response to a question, Mr. Ferri said the State statute requires the formation of a new board. City law prohibits people from serving on 2 City boards at the same time. He recommended NAHAB members contact interested parties to apply for a position on the new board. In response to a question, he said the State designation does not alter the City’s Brownfield boundaries. In response to a question, he said another grocery store chain may be interested in the formerly proposed Winn-Dixie site. Mr. Ferri noted the Consolidated Plan addresses revitalization of neighborhoods contiguous to the Brownfield area. He noted the need to provide area residents with job training. The proposed one-stop job centers are designed to meet this need. The City has set a goal of helping to create 25 new jobs a year for 5 years. b) Evaluation and Application Form Changes Mr. Ferri said the TRC (Technical Review Committee) will review the current forms and submit recommendations to be distributed prior to the December meeting. In response to a question, Mr. Ferri said Federal and State regulations cap the portion of allocated funds an agency can spend on administration and salaries at 15%. He noted disagreements with HUD (U.S. Department of Housing & Urban Development) regarding the classification of programs applying for funds. c) Off Site meeting Consensus was to schedule the February meeting off-site at 7:00 p.m. It was recommended the March meeting be scheduled at Ross Norton Park in the evening. Mr. Ferri said the meetings can be advertised on C-View TV. The station is unable to tape meetings outside Chambers. City Manager presentation The City Manager noted NAHAB members represent many areas of the City and work well to find solutions. He said residents seem to want constructive solutions. Staff will be requesting City board feedback regarding a variety of issues. All City projects relate to each other. In response to a question, the City Manager said staff is in discussion with SWFWMD (Southwest Florida Water Management District) regarding local water issues and is considering if the City should remain in the water business. Concern was expressed new buildings are being constructed on Sand Key even though current condominium residents have complaints regarding low water pressure. The City Manager said area growth is expanding rapidly into Pasco County. He noted the importance of addressing the enclave issue. Proposed legislation includes a requirement for a date-certain removal of septic tanks that will reduce aquifer contamination. It was stated NAHAB’s accomplishments and success are due to Mr. Ferri’s leadership, experience, and knowledge. The City Manager agreed Mr. Ferri is an asset to the City, noting he has accomplished a great deal. ITEM #6 - Announcements a) Next Scheduled Regular Meeting The next meeting is scheduled on November 18, 1997. North Greenwood Task Team The public was invited to a North Greenwood Task Team meeting at the Martin Luther King Jr. Center at 7:00 p.m., on October 27, 1997. ITEM #7 - Adjourn The meeting adjourned at 11:26 a.m.