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05/01/1997 - SpecialNEIGHBORHOOD AND AFFORDABLE HOUSING SPECIAL PUBLIC HOUSING MEETING CITYOF CLEARWATER May 1, 1997 Present: Alan Ferri Director, Clearwater Housing and Urban Development Michael Holmes Asst. Director, Clearwater Housing and Urban Development Bertha Kelley Neighborhood and Affordable Housing Board Nick Masters Nick Masters Realtor Jerry Spilatin CSF Sylvia Castle PSS Tom Smith General Home Development Jeff Daines General Home Development Gregory Schwartz Tampa Bay CDC Randy Harvey Homebuyer Club Ron Mores Lyon Mortgage Brenda Moses Board Reporter The meeting was called to order by Director of Clearwater Housing and Urban Development, Alan Ferri at 10:15 a.m. at Condon Gardens, Clearwater. In order to provide continuity for research, the items listed were not necessarily discussed in that order. Mr. Ferri noted that the City holds 4 public information meetings a year. Today’s meeting is important to identify which programs should be scrutinized, and how to effectively modify what is currently being done for housing needs. Attendees were encouraged to share information regarding the affordable housing crisis so that infomation may be incorporated into the consolidated plan. He explained the consolidated plan, which is a vehicle used to allocate funds under the Community Development Block Grant Program, the SHIP Program (State Housing Incentive Partnership), and HOME??? The HOME and SHIP programs are geared exclusively to housing. The Community Development Block Grant is also frequently used for housing. Last year the City had $2.3 million to allocate. Of those funds, $1.5 million was allocated to housing and $800,000 of the funding had to be allocated to housing from SHIP and HOME funds. In the first consolidated plan submission to HUD 2 years ago, it was projected that the City had a 350-unit demand for new affordable rental housing and a 400-unit demand for new home ownership due to anticipated population shifts and growth. Over the last 2 years 10% of the new home ownership goal has been accomplished. Later this year, one project alone will help accomplish 80% of the County’s rental needs. The Wilson Company in Tampa is developing a 356-unit housing complex. Under the low income housing tax credit program, 246 units will be made available to low to moderate income tenants with income ranges between $16,000 and $24,000 a year. It will have a 3,800 square foot clubhouse, an outdoor swimming pool and daycare facilities on site. This is the second development ever to be done in Pinellas County. The program in Pinellas Park only had 48 units. It was noted that turnover in the Housing Authority’s Section 8 Federal Assistance Program is high because of one bedroom units for the elderly population. Turnover is minuscule on the 2 and 3 bedroom units. There has not been a new allocation under the Section 8 Housing Program from HUD in years. It is estimated that a national loss of upwards of 50,000 affordable rental units may occur in coming years. The President’s budget submission to Congress beginning this year and extending over the next 5 years, calls for a 26.6% reduction in the Community Development Block Program. That means the City’s entitlement allocation will be reduced to $750,000 from $1,035,000. Under the Home Program, the current allocation is $408,000, and the President is proposing a reduction to 46.6%. This diminishment of resources will prompt everyone to look for more resources and diversify. Mr. Ferri will be submitting a request to the City Commission to join forces with the NDC (National Development Council). The NDC is a not-for-profit agency which has 200 client communities across the country and charges a fee to become a member of their organization. The member benefits include sharing of 2 funds, one of which is called ProAmerica. This fund has 1 of 6 SBA small planning business licenses, which means they are not required to go through the debenture process of the SBA and federal credit banks. They can go directly to secondary banks with Federal guarantees on their loans through the SBA to raise money. They have been raising rather sizable sums of money to finance business development loans for communities at 7 to 15 year terms with competitive rates. This funding vehicle will open new doors for the housing market. The NDC has another national nonprofit subsidiary which offers direct access for 203K mortgages, which are HUD-insured programs. This program allows buyers to acquire properties that may have functional defects and allow rehab of properties at approximately 2 points below conventional rates. Residents who have owned property for 20 to 30 years and cannot maintain them can obtain 203K loans to avoid any further property deterioration. Investor-owners are able to obtain loans easily because banks look at financing cash flow, not the condition of the property. Investor ownership further stresses the market value of properties in a depressed community. By diverting some of those properties from this negative spiral, the HUD 203K Program can provide a good resource for the first-time home buyer. The National Finance Organization is able to issue direct tax exempt housing bonds under their portfolio. Their rates are competitive, offered at the tax exempt rate, and they bring lots of technical and financial expertise for housing opportunities. Annually, the City of Clearwater allocates from its resources $30 million in (CIP) Capital Improvement Projects. The City Commission is holding public meetings on May 21, 1997 at 7:30 p.m., May 27, 1997 at 7:00 p.m. and May 29, 1997 at 7:00 p.m. The meeting sites have not been identified at this time. One will be held at the Morningside Recreation Center, the Main Clearwater Library, and the Countryside Recreation Center. The public is encouraged to attend the public hearings, share information, and offer suggestions regarding public housing needs in the community. On May 6, 1997 at 10:00 a.m., there will be a special public meeting at the Chamber of Commerce on economic development. On May 10, 1997 a special needs public meeting will be held at the Salvation Army on North Belcher Road. Mr. Ferri urged those attending today’s meeting to attend these special meetings, or submit in writing before June 6, 1997, their suggestions and observations regarding housing needs and trends in the community. In 3 years the City must report their progress to HUD. It was noted that the affordable housing development for rentals will be at 80% of original goals. Hopes are to obtain more diversified product and more resources to enhance the mix that is currently available in order to attain home ownership goals. Under the Community Development Block Grant Program, the City will submit a neighborhood redevelopment strategy. Elements of the Weed and Seed Program and the Brownfield Redevelopment Initiative will be incorporated into the neighborhood redevelopment strategy that will be submitted to HUD. The boundaries are Ft. Harrison on the west, Stevenson’s Creek on the north, Betty Lane and Missouri Avenue on the east, and Belleair Road on the south. There are 100 potentially contaminated sites in that area, and through the Penny for Pinellas, the City will have $5 million for assessment and remediation on those sites. Thanks to the State Legislature, the City will receive an additional $500,000 for a variety of items related to the Brownfield Initiative. Over $150,000 of the $500,000 will be dedicated to employment development resources. Under the Weed and Seed Program next year there will be another half million dollars in federal money for Clearwater to address crime and crime prevention. Discussion ensued regarding the high price of land for new housing projects, tax credit recipients, and other methods of funding. Mr. Ferri re-emphasized the importance of everyone attending the upcoming special public informational meetings, as well as the City Commission meetings to voice their opinions and offer suggestions to the current public ousing problem. The meeting adjourned at 11:00 a.m.