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11/14/2023 DocuSign Envelope ID:A6D997B1-21 D8-44DD-84E0-EA4B05279C52 Neighborhood and Affordable Meeting Minutes November 14, 2023 Housing Advisory Board City of Clearwater Main Library- Council Chambers 100 N. Osceola Avenue Clearwater, FL 33755 e P y s 4 Meeting Minutes Tuesday, November 14, 2023 9:00 AM Main Library - Council Chambers Neighborhood and Affordable Housing Advisory Board Page 1 City of Clearwater DocuSign Envelope ID:A6D997B1-21 D8-44DD-84E0-EA4B05279C52 Neighborhood and Affordable Meeting Minutes November 14, 2023 Housing Advisory Board Roll Call Present 5 - Chair Kevin Chinault, Vice Chair Robyn Fiel, Board Member Camille Hebting, Board Member Linda Byars, and Board Member David Harder Absent 2 - Board Member Lindsay Dicus-Harrison, and Board Member Carmen Santiago Also Present— Denise Sanderson — Economic Development & Housing Director, Chuck Lane — Economic Development & Housing Assistant Director, and Rosemarie Call - City Clerk To provide continuity for research, items are listed in agenda order although not necessarily discussed in that order. Unapproved 1. Call to Order— Chair Chinault The meeting was called to order at 9:20 a.m. 2. Approval of Minutes 2.1 Approve the August 8, 2023, NAHAB Meeting Minutes. Board Member Hebting moved to approve the August 8, 2023, NAHAB meeting minutes. 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 Real Property Transfer Agreement for the donation of Real Property by the City to Habitat for Humanity of Pinellas County, Inc. (Habitat). In response to a question, Real Estate Services Coordinator Dylan Mayeux said the restricted covenant requires the property be sold to an income eligible buyer. Board Member Harder moved to recommend City Council approval of the Real Property Transfer Agreement for the donation of Real Property by the City to Habitat for Humanity of Pinellas County, Inc. (Habitat). The motion was duly seconded and carried unanimously. Page 2 City of Clearwater DocuSign Envelope ID:A6D997B1-21 D8-44DD-84E0-EA4B05279C52 Neighborhood and Affordable Meeting Minutes November 14, 2023 Housing Advisory Board 4.2 Recommend City Council approval of the Substantial Amendment to City of Clearwater's Fiscal Year 2021/2022 Annual Action Plan, which includes the HOME-ARP Allocation Plan, and authorize the City to modify existing agreements and enter into new agreements with organizations approved for funding. (APH) The U.S. Department of Housing and Urban Development (HUD) provided a one-time allocation of$1,637,567 in HOME-ARP (America Rescue Plan) funding to the City of Clearwater. HUD requires HOME-ARP funding to be used to assist Qualifying Populations defined as populations experiencing homelessness or at-risk of homelessness and others requiring supportive services or assistance for homelessness prevention. A Substantial Amendment is required to reprogram funds in excess of 25% of the HOME-ARP allocation. In June 2022, the first Substantial Amendment (SA-1) was approved by Council to add HOME-ARP funding to the City's FY 2021/2022 Annual Action Plan by inclusion of the required HOME-ARP Allocation Plan. Previously, the HOME-ARP Allocation Plan allocated funding to Tenant-Based Rental Assistance (TBRA), Development of Affordable Rental Housing, and Administration and Planning by means of multiple specific project categories. This second Substantial Amendment (SA-2) is to allocate HOME-ARP funding to a new Supportive Services project category and to reprogram funding across several new and existing consolidated project categories. SA-2 also eliminates multiple project specific categories and consolidates the HOME-ARP funding into four (4) broader project categies: Supportive Services, Tenant-Based Rental Assistance (TBRA), Affordable Rental Housing, and Administration/Planning. SA-2 amendments to the FY 2021/2022 Annual Action Plan and HOME-ARP Allocation Plan are summarized as follows: 1. Supportive Services - Add new project category and allocate $691,938; 2. Tenant-Based Rental Assistance (TBRA) - Add new project category and allocate $200,000; 3. Affordable Rental Housing - Add new project category and allocate $500,000; 4. Administration/Planning - Retain existing project category and increase from $139,137 to $245,629 (+$106,492) which is equivalent to approximately 15% of the HOME-ARP allocation; 5. Blue Sky Communities/Blue Dolphin Housing Project- Eliminate specific project name and corresponding Development of Affordable Rental Housing category funding from the HOME-ARP Allocation Plan and FY 2021/2022 Annual Action Plan and reprogram funding to new project names by category (-$875,000); and 6. Pinellas Opportunity Council, Homeless Empowerment Program, Homeless Leadership Alliance, Hope Villages of America, and St. Vincent de Paul Community Kitchen and Resource Center- Eliminate specific project names and corresponding Tenant Based Rental Assistance (TBRA) category funding from the HOME-ARP Page 3 City of Clearwater DocuSign Envelope ID:A6D997B1-21 D8-44DD-84E0-EA4B05279C52 Neighborhood and Affordable Meeting Minutes November 14, 2023 Housing Advisory Board Allocation Plan and FY 2021/2022 Annual Action Plan and reprogram funding to new project names by category (-$623,430). Deadline for expenditure of HOME-ARP funds is September 30, 2030. This item will be presented to City Council on November 16, 2023. 2.4 - Supports equitable housing programs that promote household stability and reduce the incidence of homelessness within Clearwater. Board Member Hebting moved to recommend City Council approval of the Substantial Amendment to City of Clearwater's Fiscal Year 2021/2022 Annual Action Plan and authorize the City to modify existing agreements and enter into new agreements with organizations approved for funding. The motion was duly seconded and carried unanimously. 4.3 Discuss the option to increase the maximum sales price of a single-family home up to $481,176 as authorized by the State Housing Initiatives Partnership Program. The Board recessed from 9:32 a.m. to 9:33 a.m. In response to a comment, Mr. Lane said for a 2-person household, based on the income, the maximum monthly payment they can make is $1,390, providing the ability to purchase a $173,462 home through a conventional loan. Habitat for Humanity has access to zero-interest loans, allowing individuals to afford a home at a higher value. He said Habitat now provides 40-year mortgages. Ms. Sanderson said Habitat does not currently provide loans over 80%AMI. Discussion ensued with concerns expressed that it is difficult for people to find affordable housing in Clearwater, that individuals who need affordable housing cannot afford more than $350,000, and that the income requirements for SHIP are not being modified. A comment was made that a large family with a greater income may be able to afford $400,000 house. In response to a question, Habitat representative Sean King said if there is any governmental funding involved, there will be a land use restriction, which restricts the resale of the property. Habitat also includes a shared equity provision that does not allow the buyer to flip the home or acquire an equity mortgage immediately. He said these provisions ensure the land remains affordable. Page 4 City of Clearwater DocuSign Envelope ID:A6D997B1-21 D8-44DD-84E0-EA4B05279C52 Neighborhood and Affordable Meeting Minutes November 14, 2023 Housing Advisory Board Discussion ensued regarding financing options available to individuals seeking affordable housing with a comment made that if increasing the home sale price helps non-profit affordable housing organizations continue their work to help the community and create more affordable housing in Clearwater, it is worth considering. Concerns were expressed that the community may get the impression that the Board believes $481,000 is affordable and that selling property at a lower value will impact the appraisals of other properties. It was stated that buyers can accept gifts from family members to leverage their financing and reduce the amount being mortgaged. A comment was made that if a buyer secures a 0% mortgage, the principle is being paid form the beginning, no matter the term of the mortgage. Ms. Sanderson said at the maximum purchase price, the city's downpayment assistance to get to 20% will be $92,500. Given the limited funding, the Department wants to make sure it is producing and preserving as many units as possible. She said staff will need to take a look at the unintended consequences for adjustment the downpayment assistance. When looking at housing costs, staff is looking at principle interest, taxes, and insurance. She said as it relates to creating policy that influence the affordability to buyers, the City cannot influence taxes or insurance; and in some cases, the City cannot influence the interest rate. Ms. Sanderson said staff will share comments heard today with other jurisdictions and come back to the Board at a later date to look at real numbers. The numbers provided today considered presumptions in the current market, such as escrow, median sales price, and conventional mortgage rates. It was stated that other jurisdictions in Pinellas County provide higher downpayment assistance than Clearwater; St. Petersburg provides a maximum of$60,000 and Largo and Pinellas County provide $75,000. Ms. Sanderson said some of the information provided showed how household size may change the purchasing power because of the different income caps. She asked is there is board interest in exploring tiered system based on household size. There was no board consensus on the matter as more information on the proposed system was needed to make a determination. One individual spoke in opposition and suggested letting the market decide. 5. Director's Report Page 5 City of Clearwater DocuSign Envelope ID:A6D997B1-21 D8-44DD-84E0-EA4B05279C52 Neighborhood and Affordable Meeting Minutes November 14, 2023 Housing Advisory Board Mr. Lane said the Board will meet in December and stressed the need for quorum as the Board will approve the year-end report for HUD. The report is due to HUD by December 31, 2023. Members who are unable to attend were advised to contact staff as soon as possible. Ms. Sanderson said there was a recommendation earlier this year for staff to report the performance of the public services and facilities projects. She said the report will be included in the CAPER. Staff will present the performance of the individual non-profits at the December meeting. She said staff hopes to review the changes being implemented to the competitive grant cycle for public services and public facilities. 6. Board Members to be Heard Board member Hebting asked what can NAHAB and former AHAC members do to make sure the Department is fully staffed. Mr. Lane said there is an open recruitment for a Housing Specialist, which was approved by Council this fiscal year. Ms. Sanderson said the Department is blessed with retaining wonderful employees. Since 2020, the Department has added a Senior Real Estate Services Coordinator and a Housing Coordinator. Many of the AHAC recommendations include increasing the Department's marketing and outreach efforts; NAHAB and former AHAC members can advocate for additional staff when the request is presented by the Department. Chair Chinault thanked staff for their efforts through the AHAC process and said the next meeting will be on December 12, 2023 at 9:00 a.m. 7. Adjourn The meeting adjourned at 10:24 a.m. DocuSigned by: E70AA329859A48F... Attest: Chair °S Neighborhood &Affordable Housing Advisory Board �f Ek DocuSigned by: .4'ti / 620DD5FEQFFE4QF... City Clerk Page 6 City of Clearwater