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01/16/2001NEIGHBORHOOD & AFFORDABLE HOUSING ADVISORY BOARD MEETING CITY OF CLEARWATER January 16, 2001 Present: Warren Hunt Chair Howard Groth Board Member Milly Joplin Board Member William Turner, Sr. Board Member Mayme W. Hodges Board Member Rev. William Graham Board Member Peggy M. Cutkomp Board Member Joyce L. Smith Board Member Howard Groth Chair Absent: Stephen Jeffries Vice-Chair Also Present: Nina Bandoni Assistant Housing Director Patricia O. Sullivan Board Reporter 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 the Minutes Member Groth moved to approve the minutes of the meeting of September 19, 2000 as recorded and submitted in written summation to each board member. The motion was duly seconded and carried unanimously. ITEM #3 - Citizens to be Heard Lois Cormier complimented Habitat for Humanity for their efforts in constructing two houses in the South Greenwood neighborhood. CSF (Community Services Foundation) Executive Director Jerry Spilatro said his agency’s grant funding for its Fair Housing Program was eliminated from this year’s City budget. He said the termination of CSF’s program was not discussed at NAHAB (Neighborhood &Affordable Housing Advisory Board) meetings, nor at the City Commission meeting when this year’s funding was approved. He said he did not learn of this change until October, after his agency’s budget was finalized. Assistant Housing Director Nina Bandoni said the City previously had funded CSF’s fair housing program from the City’s administrative budget. Last year, the City eliminated three positions due to budget cuts. Pinellas County has a comprehensive program that will commit to meet the City’s fair housing needs for $500 annually. This program meets the Consolidated Plan’s fair housing component. Discussion ensued regarding training opportunities and other benefits of the County’s program. Mr. Spilatro recommended that housing service participants be required to attend budget classes. RCS (Religious Community Services) Haven Executive Director Linda Amadei reported her agency had its groundbreaking for a new shelter on January 12, 2001. ITEM #4 – Sub-Recipient Activity Reports Ms. Bandoni said the sub-recipient activity reports cover two months, beginning October 1, 2000. Many agencies have had activity since then. She explained HEP (Homeless Emergency Project) recently used funds budgeted during the previous year. Lockheed Martin Pinellas Works, funded by the City with $18,000, one-tenth of the agency’s request, is closing its operations and will not use those funds. She reported even though Clearwater Stars had added a job creation activity, USHUD (U.S. Department of Housing & Urban Development) had determined the program is a Public Service and cannot be categorized as Economic Development. Staff is working with the agency to identify other funding sources. Staff will distribute a summary of the programs, indicating the number of clients served. ITEM #5 – Staff Presentations a) Amend SHIP Plan to include participation with Pinellas County in Single Family Bond financing program Ms. Bandoni reviewed the bond-financing program, available for first time homebuyers at a borrowing rate 1% to 2% below the market rate. The City’s contribution will allow participants to purchase homes in Clearwater, which meet Code. She recommended funding the program with $150,000 of SHIP (State Housing Incentive Partnership) money. While the City’s Housing Pool totals almost $1-million, local agencies are spending less than $300,000 annually. Allocated funds are not reaching qualified recipients quickly enough. In response to a question, she said $44,000 in CDBG funds is allocated to the City for rehabilitation. That money is not part of the Housing Pool. In response to a question, she said the City will negotiate its SHIP plan. Staff has concerns regarding several matters. The process includes this presentation to NAHAB, modification of the budget and SHIP plan, and negotiations with Pinellas County and the State regarding the modifications. Member Groth moved to recommend negotiations move forward related to the Single Family Bond financing program with Pinellas County. The motion was duly seconded. In response to a question, Ms. Bandoni said if the City does not participate in the program, its contribution would be returned. Discussion ensued. Member Groth moved to amend his motion to add that the item is to be brought back to NAHAB for final approval. The seconder agreed. Upon the vote being taken, the motion carried unanimously. b) Add provision to City’s FY 2001/02 grant funding cycle & all future cycles, Identifying organizations to be funded if initially selected organizations cannot be funded & Setting time line Ms. Bandoni suggested a process to rank sub-recipients, which are not funded. Should a selected agency fail to meet its goals and spend its allocated funds, the process automatically would transfer the grant to the next ranked agency. After staff determines an agency is falling short of its goals, that agency would have an opportunity to explain program delays to NAHAB. In response to a question, she suggested social service agencies primarily would be affected. She will prepare related language and present it to the board for comment. c) Recommendation regarding transferring $400,000 from Housing Pool to Rental Category to fund prospective rental project, if necessary Ms. Bandoni reported negotiations are underway regarding housing projects: 1) for profit – apartments and 2) non-profit – single-family residences. The 70-unit downtown rental housing project would have a 50% set-aside for low- and moderate-income residents. The other project will construct 12 houses in South Greenwood. The projects meet City goals to create low and moderate income housing opportunities downtown. She requested the board approve the transfer of $400,000 from the Housing Pool to the rental category for the rental project. The City previously has supported two similar rental projects. In response to a question, she said staff is unable to budget for projects presented by developers after the budget process is complete. Discussion ensued regarding the Housing Pool. In response to a question, Ms. Bandoni said after the transfers, approximately $0.5-million would remain in the Housing Pool. Regarding the apartment project, the City would hold the second mortgage and a bank would hold the first mortgage. The City would charge a lower interest rate than the bank. Based on a deed restriction, the developer would be required to charge low- and moderate-income residents in set-aside units as much as 50% less rent than market rate apartments, for the first 15 to 20 years. The owner is responsible for maintenance and landscaping. It was suggested further development should be curtailed until the drought has eased. Concern was expressed the developer may not maintain the complex. The City’s Consolidated Plan calls for additional affordable rental housing. In response to a question, Ms. Bandoni said City Charter rules restrict the City from selling houses or properties without City Commission approval. Member Groth moved to recommend transferring $400,000 from the Housing Pool to the rental category to fund a prospective rental project, if necessary. In response to a question, Ms. Bandoni said the builder must meet all infrastructure requirements before a construction permit is issued. The City’s CRT (Community Response Team) enforces the Code, which includes minimum maintenance requirements. She said it is important for the City to have a variety of housing alternatives and to spend Housing Pool funds. It was suggested staff aid non-profit agencies to meet their construction goals. The motion was duly seconded. It was suggested the City step in when buildings are abandoned and rehabilitate the properties. Ms. Bandoni said legal staff is working to modify City requirements to sell property to the highest bidder in order to provide more lots for affordable housing. In response to a question, she said additional information will be forthcoming once the project is under contract. Approval of this project would not establish a precedent. Upon the vote being taken, Members Groth, Turner, Hodges, Cutkomp and Smith, and Chair Hunt voted “Aye”; Members Joplin and Graham voted “Nay.” Motion carried. ITEM #6 – Old Business a) February 1, 2001 - NOFA (Notice of Financial Availability) for CDBG (Community Development Block Grant)/HOME (Housing Opportunity Made Equal)/SHIP funding to open. In response to a question, Ms. Bandoni said the schedule meets deadline requirements for City Commission approval in July and receipt by USHUD by August 15, 2001. b) March 20, 2001 – NAHAB meeting – All Day Bus Tour of Sub-Recipient Applicants c) May 15, 2001 – NAHAB meeting – Score Sub-Recipient Applicants ITEM #7 – New Business – None. ITEM #8 - Announcements – None. ITEM #9 - Adjournment The meeting adjourned at 11:35 a.m.