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09/11/2001NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING CITY OF CLEARWATER September 11, 2001 Present: Stephen Jefferies Chair Joyce L. Smith Board Member Laurel Braswell Board Member William Turner, Sr. Board Member Rev. William Graham Board Member Peggy M. Cutkomp Board Member Vacant Seat Board Member Vacant Seat Board Member Absent: Warren Hunt Board Member Also Present: Nina Bandoni Assistant Housing Director Brenda Moses Board Reporter The Chair called the meeting to order at 10:03 a.m. at City Hall, followed by a moment of silent prayer for the victims and families of the World Trade Center and Pentagon tragedies. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 – Approval of Minutes – June 19, 2001, Meeting Member Smith requested that page 4, paragraph 4, sentence 1 read “Member Smith …”. The motion was duly seconded and carried unanimously. The Board Reporter will instruct Nina Clark, Staff Assistant II to correct same. ITEM #3 – Announcements – Resignations – Awards Ms. Bandoni said Howard Groth has moved outside the City and is no longer on the NAHAB (Neighborhood and Affordable Housing Advisory Board). Chair Jefferies presented Mr. Groth with an award for his service. Mr. Groth said it was a difficult decision to move out of the City. He said he will miss the challenges and the people with which he has worked. He thanked the NAHAB for their support and wished them well. Ms. Bandoni stated she has resigned as Assistant Director of Housing effective September 14, 2001. The City has asked her to stay on an interim basis until a replacement can be found. She will continue to manage staff on an abbreviated work schedule. ITEM #4 – Citizens to be Heard – None. ITEM #5 – Performance Reports Ms. Bandoni reviewed the subrecipient reports through September 4, 2001. She said some subrecipients have not turned in reports since March 2001. She suggested that lack of subrecipient reporting should be one of the NAHAB’s concerns during the scoring process next year. She said some subrecipients have exceeded their goals and others did not meet theirs. Staff has received extension requests from agencies that could not spend their allocated funds including Grace House, Community Pride Childcare and Clearwater Stars. Ms. Bandoni said staff will become more strict when subrecipients fail to turn in performance reports as required. HUD (Housing and Urban Development) recommends suspending payment to subrecipients. One agency representative expressed concern the City would allow any agency to fail to submit a report for any length of time. He felt a “no activity” report should be required. Item #6 – Old Business a. Verbal Update on Fulton Apartments Ms. Bandoni said the City has owned the 16-unit Fulton Apartment complex built in the 1970s since 1991. It has slowly deteriorated and is in need of repair. The City has budgeted $460,000 over multiple years for extensive renovations. The City also is looking for new management. Plans include adding more social activities on site, providing a homeownership facility for those transitioning to homeownership, budgeting classes, etc. The process would put the City in a position to accept residents whose income is at 120% of the median. These changes would greatly improve the property and the opportunities for the residents of the complex. She requested the NAHAB’s input regarding the plans. In response to a question, Ms. Bandoni said the new management company would handle the process of scheduling budgeting and homeownership classes, etc. Hopes are to involve residents in establishing a sense of community, helping one another, and offering them a variety of on site services to improve their lifestyle. Member Smith moved to recommend the Commission purchase the property for use as a community center. The motion was duly seconded and carried unanimously. Verbal Update on Greenwood Apartments Ms. Bandoni said the Greenwood Apartments were built in the 1950s. The last known renovations were made in 1959. Residents are living in deteriorated conditions. The owner had no mortgage for years and had no incentive to improve or sell the property. When cited for Code violations, the owner would seek the cheapest means to comply. Last Spring, the Bank of America purchased the property and is partnering with CNHS (Clearwater Neighborhood Housing Services) to renovate the property. Plans are to include a computer lab and after school programs for children. They have asked the City for $700,000 of SHIP funds for the renovations and are working closely with staff to make the project work. Once completed, it is anticipated that over $10 million in renovations would be made. This project will be a significant improvement in North Greenwood, along with the new library and other planned improvements. She requested the NAHAB support the terms of the contract with the Bank of America for a deferral period of 10 years and repayment of funds at 3% over the next 5 years. In response to a question, Ms. Bandoni said the building will have the same floor as the current building. CNHS agreed to provide Section 8 vouchers for anyone having difficulty with stairs. Eight of the units will be ADA (Americans with Disabilities) accessible. Member Smith moved to support the renovations. The motion was duly seconded. In response to a question, Ms. Bandoni said occupancy will drop monthly since vacant units will not be re-leased. Residents will be moved to other buildings while renovations take place, then moved back in after renovations are complete. Upon the vote being taken, the motion carried unanimously. Spending/performance Process for CDBG Fund Recipients Staff is proposing that excess funds, unused funds, and program income available in the first quarter should be made available to qualifying subrecipients. Staff also is proposing the NAHAB award the funds at 50% of the applicant’s initial request to the next successive scoring applicant until the money is depleted. In the event that an agency fails to turn in monthly reports, funding will be suspended until reports are turned in. If the agency goes two quarters without turning in reports, the funding will be suspended and awarded to the next qualifying applicant within the scoring category. In the event that full funding for the category has been achieved, the excess funds will be moved to the City of Clearwater Funding Category to be used toward housing activities. In the event an agency fails to achieve goals set forth in their applications by the second quarter, their funding will be withdrawn and they will be required to provide an explanation before the NAHAB prior to reinstatement. It was suggested this item be continued to the next meeting until further information regarding subrecipient scoring is provided. ITEM #7 – New Business Modification of Ordinance #5770-95 Establishing the NAHAB and Governing the NAHAB Ordinance #5770-95 was established to govern the activities of the NAHAB. Staff is proposing several changes. Staff is proposing the following seats be made available to non-Clearwater residents: 1) residential building industry; 2) banking or mortgage industry; 3) labor as associated with home building; and 4) provider of affordable housing. Staff also proposes that 1) each NAHAB member’s term begins in September and ends in August, and embers are eligible for no more than two 4-year terms. Concern was expressed about permitting non-Clearwater residents on the NAHAB, as they would not be familiar with the City’s goals and needs, or the agencies that apply for funding. In response to a question, Ms. Bandoni said the head of an agency receiving funding through CDBG, HOME, and SHIP would not be eligible to serve on the NAHAB. She said she has experience working regionally and has served 7 counties and felt that a non-Clearwater resident may have great ideas that could help support the City’s programs. She said the City has had great difficulty filling the “neighborhood” seats. Member Graham moved to approve 1) amending the “labor” seat as associated with homebuilding industry, and 2) NAHAB member’s terms are to begin in September and end in August. Member Smith moved that members are to be eligible for no more than two 4-year terms. The motion was duly seconded and carried unanimously. It was requested that language be added to the terms that if a member is off the board for one term, she/he can return to serve on the NAHAB again. It should be noted that the portion of the Ordinance related to residency was tabled for further discussion at a later date. Amendments to SHIP Plan Ms. Bandoni reviewed the proposed amendments to SHIP Plan: 1) amend maximum purchase price of new single family housing from $88,679 for new construction to $143,585 and from $83,491 for existing housing to $108,216. These changes reflect the market conditions; 2) amend the Housing Strategies to include participation in the Pinellas County bond Program (already approved by NAHAB); and 3) amend the budget to reduce spending from the demolition/reconstruction program to $70,000 per 1 unit and increase the budget in 80 – 120 to $200,000 to allow for more mixed incoming housing in our target neighborhoods. She said currently, participants in the SHIP Plan cannot purchase new homes for more than $88,000 and existing house for more than $83,000. Annually, the County establishes these maximums. The City is proposing to take 90% of those maximums and use them for new purchase prices. Through the CDBG and HOME programs, HUD has a maximum of $108,000 for both new and existing housing. Ms. Bandoni said she feels strongly the City needs to raise purchase prices due to increased property costs, however people at certain medians can only afford a specific dollar amount. She anticipates that homebuilders would ask the City for increased subsidy levels. In response to a question, she said the City participates with all jurisdictions in the County to provide a uniform program for downpayment and closing cost assistance. Increasing downpayment assistance as purchase prices increase would need to be evaluated by all jurisdictions and then be brought back to the NAHAB for approval. In response to a question, Ms. Bandoni said the household median income for a family of 4 is $38,000 - $39,000. Concern was expressed that a 4-person household could not maintain a home at those levels along with utilities and other expenses. Ms. Bandoni said as with any loan application, applicants for these loans would be required to obtain credit approval and apply to a bank for the loan. She said the City only awards up to $7,000 for downpayment and closing cost assistance. Ms. Bandoni said the City has adopted a code for new construction. HUD requires property be constructed with specific types of materials which in turn governs the purchase price of the home. The objective is to construct an easily maintained, attractive and efficient home that would add value to a community. Member Braswell moved to accept and recommend the amendments to the SHIP Plan as presented by staff. The motion was duly seconded and carried unanimously. Allocation Process for Extra CDBG Funds Ms. Bandoni said$41,000 in excess CDBG funds is available for use in the Public Service Category. Staff proposes the following two agencies receive funding: 1) Pinellas Opportunity Council, which only received 50% of their original request ($29,773), and 2) Girls, Inc. which received $12,000. These two agencies are at the bottom of the list of agencies that have not already been funded. She said a budget amendment will be brought to the Commission. Member Graham moved to approve awarding the excess $41,000 in CDBG funds to the Pinellas Opportunity Council and Girls, Inc. as proposed by staff. The motion was duly seconded and carried unanimously. ITEM #8 – Adjournment The meeting adjourned at 11:26 a.m. _________________________ Chair Neighborhood and Affordable Housing Advisory Board Attest: ________________________ Board Reporter