HomeMy WebLinkAbout2015-0720 Study Session PACKET
CITY OF
-ASHLAND
CITY COUNCIL STUDY SESSION
AGENDA
Monday, July 20, 2015
Siskiyou Room, 51 Winburn Way
5: 30 p.m. Study Session
1. Public Input (15 minutes maximum)
2. Look Ahead review
3. Discussion of Housing Trust Fund (request of Councilor Marsh)
Immediately following the Study Session the City Council will hold an Executive
Session for performance evaluation of a public officer or employee pursuant to ORS
192.660(2)(i)
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1).
COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9. STARTING APRIL 15, 2014,
CHARTER CABLE WILL BROADCAST MEETINGS ON CHANNEL 180 OR 181.
VISIT THE CITY OF ASHLAND'S WEB SITE AT WWW.ASHLAND.OR.US
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CITY OF
ASHLAND
Council Communication
July 20, 2015, Study Session
Housing Trust Fund Discussion
FROM:
Linda Reid, Housing Program Specialist, Planning Department, reidl@ashland.or.us
SUMMARY
Ask the Council to authorize the Housing and Humans Services (H&HS) Commission to develop a
plan for creating a sustainable funding stream for the existing Affordable Housing Trust Fund (AHTF).
BACKGROUND AND POLICY IMPLICATIONS:
In 2003 the City approved the Affordable Housing Action Plan which identified the establishment of
an Affordable Housing Trust Fund as a key strategy for supporting the development of affordable
housing. Starting in 2006 the City undertook a planning and citizen input process for establishing a
Housing Trust Fund. In September of 2008 the City Council adopted an ordinance establishing an
Affordable Housing Trust Fund and a resolution that provided a limited amount of funding to the
AHTF from 1985 CDBG home rehabilitation loan repayments. In 2012 the City dedicated $125,000
from the sale of the Chitwood property to the AHTF. Currently the AHTF has a balance of $166,350
with no further revenue source beyond the remaining $65,000 in outstanding rehabilitation loan
repayments identified to continue to provide funding.
• Ordinance 2966 was approved by the Council on October 7, 2008. The ordinance established
the Affordable Housing Trust Fund and defined the general purpose of the AHTF as:
A. The purpose of the City of Ashland's Affordable Housing Trust Fund is to support the
creation or preservation of housing that is affordable to people with incomes that do not exceed
120% of the Area Median Income, as defined by the Department of Housing and Urban
Development for the Medford-Ashland Metropolitan Service Area.
B. AHTF funds will support activities that create, preserve or acquire housing within the
Ashland Urban Growth Boundary. AHTF finds may also be used for permanent or
transitional housing for homeless families and individuals, and for the modernization,
rehabilitation and repair of public housing.
C. The AHTF is not intended to be the sole source of funding for affordable housing and any
activity or project eligible for support from the AHTF is expected to develop additional sources
of funds.
• The Council also adopted Resolution 2008-34 which established the policies and procedures for
how AHTF funds would be used and awarded, and Resolution 2008-33 which dedicated the
Page 1 of 2
~r,
CITY OF
-ASHLAND
repayments from a 1985 Housing Rehabilitation program funded with Community
Development Block Grant Funds to the support of the AHTF.
The AHTF was created to address several barriers to the development of affordable rental and
ownership housing in Ashland. Barriers such as; the high cost of housing, the disparity between
housing costs and the incomes of Ashland residents, and to offer a more flexible funding source to
developers to allow them to be more responsive to development opportunities, and to serve a larger
population than traditional affordable housing funding sources such as Tax Credit financing, CDBG or
HOME funding. The AHTF is available to a variety of applicants from for profit entities, and private
employers to Community Action Agencies. The uses of the AHTF are broad and include activities not
otherwise eligible for funding under traditional affordable housing financing mechanisms including;
predevelopment costs such as engineering and architectural costs, environmental clearance costs,
bridge loans, land banking, and such direct benefit activities as down payment assistance, emergency
housing vouchers and homeowner education. In all AHTF granting of financial awards
the City Council acts as the final decision making body.
The H&HSC has been evaluating the AHTF over the last year and have presented their analysis in the
attached memo.
COUNCIL GOALS SUPPORTED:
5. Seek opportunities to enable all citizens to meet basic needs.
5.2 Support and promote, through policy, programs that make the City affordable to live in.
5.2a Pursue affordable housing opportunities, especially workforce housing. Identify specific
incentives for developers to build more affordable housing.
13. Develop and support land use and transportation policies to achieve sustainable development.
13.1 Create incentives and ordinances for energy-efficient buildings.
FISCAL IMPLICATIONS:
N/A
STAFF RECOMMENDATION AND REQUESTED ACTION:
The Housing and Human Services Commission is requesting that the Council authorize the
Commission to research and develop a plan for creating a sustainable funding stream for the existing
Affordable Housing Trust Funds.
SUGGESTED MOTION:
I move to direct the Housing and Human Services Commission to research and identify potential
sustainable funding sources for the Affordable Housing Trust fund, and to bring a proposal back to the
Council.
ATTACHMENTS:
Housing and Human Services Commission Memo dated July 20, 2015
Ord-2966 Establishment of an Affordable Housinp, Trust Fund
Reso-2008-34 Policies and Procedures for Administration of the Affordable Housing Trust Fund
Reso-2008-33 Dedication Loan Repayments from the Ashland Rehabilitation Program to the AHTF
Page 2 of 2
R
InA
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CITY OF
ASHLAND
Housing and Human Services
.Commission Memo
TITLE: Council Study Session on the HTF
DEPT: Community Development
DATE: July 20, 2015
SUBMITTED BY: Linda Reid, Housing Program Specialist
Housing and Human Services Commission Housing Trust Fund Subcommittee
Regina Ayars, Heidi Parker, Rich Rohde, Connie Saldana
Purpose
Ask the council at the May 18, 2015 study session to authorize the Housing and Humans
Services (H&HS) commission to develop a plan for creating a sustainable funding stream for
the existing Housing Trust Fund (HTF).
Background
2003 Approval of the Affordable Housing Action Plan which identifies the HTF as "a key
strategy" for the city to undertake to support the development of affordable housing
2006 Interviews with regional affordable housing providers for input on funding gaps that HTF
could address
2007 Public survey of Ashland citizen for input on the development of the HTF
2008 June, HC finalizes recommendations and submits them to the council for approval
2008 September, council signs ordinance 2966 creating HTF and resolution funding it with
rehabilitation loan repayments of approx. 99k
2012 Proceeds, $125,000, from the sale of the Chitwood property added to the HTF.
2015 Current balance in the HTF is $166,350 with no sustainable revenue stream
What are the Financial Benefits?
Housing trust funds are unique in that they benefit from a dedicated source of ongoing
revenue. That revenue is committed to producing and preserving housing affordable to lower
income households. The key is having a public source of revenue that is committed through
legislation or ordinance. Housing trust funds are extremely flexible and thus can be used to
support innovative ways of addressing many types of housing needs. They exist in small towns
of about 1000 people as well as in the largest states in the country.
On average, each dollar spent by a housing trust fund leverages seven dollars in additional
funding for housing, such as loans from banks. These funds are usually administered by
government entities, such as a city housing department, which award funds through a
competitive application process.
Examples of Ongoing Sources of Funding for Housing Trust Funds
Lodging or Hotel Tax [Ashland's Transient Occupancy Tax]: Hotel or Lodging Tax
generates significant income for local jurisdictions and can be dedicated to affordable housing.
Recent changes to the Short Term Rental ordinance will generate additional revenue that can
be dedicate to the HTF. An increase in short term rentals are known to reduce the availability
of long term rental housing and increase rental rates.
Restaurant Tax [Ashland's Meal Tax]: As a luxury or tourist tax on dining out, a Restaurant
Tax charges diners a small tax on the total bill. The tax can be limited to large restaurants
grossing a certain level of sales and with a liquor license.
In Lieu Fees and Fractional Payments for Inclusionary Zoning (Ashland's Annexation
Ordinance): Some Inclusionary Zoning ordinances allow developers to opt out of constructing
affordable housing units by paying an in-Lieu Fee equal to the value of the required affordable
housing units. Some ordinances require Fractional Payments for the value of un-built portions
of required housing units. While these fees generate modest revenue, Inclusionary Zoning
policies are most successful when they create affordable housing development, not revenue.
Ashland's inclusionary Zoning requirement for newly annexed lands was grandfathered in
when the Legislature voted to ban the strategy several biennia ago. Currently, legislation is
pending to permit the use of inclusionary zoning to create affordable housing in all
communities.
Linkage Fees and Systems Development Charges [Ashland's SDCs]: Systems
Development Charges are imposed by local governments on new development (commercial
and residential) for the cost of providing new public services and infrastructure such as
sidewalks, schools, parks and affordable housing. Linkage Fees are a type of development
impact fee charged specifically for the cost of affordable housing, often based on jobs and
housing nexus studies. This is the most common revenue source dedicated to affordable
housing and services.
Business Registration Fee (Ashland's Business License): An annual Business
Registration Fee can be charged for the permission to do business within a particular
jurisdiction. The fees can range according to the size and type of business. While all
organizations must register, organizations with income tax exemption do not pay the fee.
Recent addition of property owners with more than 2 rental units will generate some additional
revenue that could be dedicated to the HTF.
City Housing Trust Funds are effective:
There are 73 city housing trust funds in twenty-seven states, bolstered by another 148
jurisdictions participating in Massachusetts' Community Preservation Act, and 250
communities certified in New Jersey by the Council on Affordable Housing-a total of 471 city
housing trust funds. Two good examples
Examples
The Affordable Housing Fund in Bend, Oregon was established to develop affordable
housing for families at or below 80% AMI. The fee of 1/5 of 1 percent of the building permit
valuation for all building permits raises the funding. Established in 2006, and extended in
~r,
2011, the housing program has preserved or created 371 affordable homes and apartments.
To date, the housing program has loaned more than $5.8 million to affordable housing
developments. This funding leveraged an additional $39.6 million in federal, state and private
funds-a ratio of nearly 1:7.
Tucson Housing Trust Fund Citizens Advisory Committee (THTFCAC) was created by
ordinance November 14, 2006 to identify sources of funds and allocate them in support of
affordable housing. From 2006 until 2011 the fund allocated $546,344: 70% to home-
ownership and down payment assistance, 25% to rental and rental rehabilitation projects, and
5% for housing repair projects.
CLOSING COMMENTS
As was clear from the number of applicants and monetary size of the recent requests for
CDBG funds, the Ashland Community will not be able to realize its goals of developing "decent
and affordable housing, transitional housing and shelters for low and moderate-income
persons, as well as provide services for the homeless" with CDBG funds alone. There simply
isn't enough money to go around.
Establishing a dedicated funding source for the existing Housing Trust Fund is vital if we are
to meet the housing goals that have been re-stated with each Strategic Plan since 2003. That
is why the Housing & Human Services Commission is asking the City Council to take the
following steps:
1. Identify and authorize a sustainable funding source for the existing Housing
Trust Fund.
2. Authorize the Housing & Human Services Commission to set up parameters for
utilization of the HTF monies, with the Council having final approval.
In memory of two, now deceased, Housing Commissioners; Steve Hauck and Aaron Benjamin,
who actively advocated for the Housing Trust Fund, we respectfully request the Council's
immediate attention to this very important issue.
~r,
ORDINANCE NO. a (0
AN ORDINANCE AMENDING THE ASHLAND MUNICIPAL CODE,
ADDING A NEW CHAPTER 4.36, PROVIDING FOR THE ESTABLISHMENT OF AN
AFFORDABLE HOUSING TRUST FUND
Annotated to show deletions and additions to the code sections being modified.
Deletions are lined and additions are in bold.
WHEREAS, Article 2. Section 1 of the Ashland City Charter provides:
Powers of the City The City shall have all powers which the constitutions,
statutes, and common law of the United States and of this State expressly or
impliedly grant or allow municipalities, as fully as though this Charter specifically
enumerated each of those powers, as well as all powers not inconsistent with the
foregoing; and, in addition thereto, shall possess all powers hereinafter
specifically granted. All the authority thereof shall have perpetual succession.
WHEREAS, the above referenced grant of power has been interpreted as affording all
legislative powers home rule constitutional provisions reserved to Oregon Cities. City of
Beaverton v. International Ass'n of Firefighters, Local 1660, Beaverton Shop 20 Or.
App. 293,531 P 2d 730, 734 (1975); and
WHEREAS, the City Council of the City of Ashland has determined that in order to
protect the health, safety and welfare of existing and future residents of Ashland who
are adversely impacted by the lack of housing available to all income types, specifically
very low, low, and moderate income households, it is necessary to establish a fund to
support the development, preservation, and rehabilitation, of needed housing types
within the City; and
WHEREAS the City of Ashland City Council recognizes that for a healthy community
the provision of a range of affordable housing opportunities and funding mechanisms for
affordable development is a top priority for the City of Ashland; and
WHEREAS, the City Council of the City of Ashland has determined that neither the
private market, nor the public sector, has yet provided the levels of housing affordability
necessary to maintain a balanced community, local government must take an active
lead to ensure an adequate supply of housing for residents and working people of all
income levels;
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1. Anew Chapter 4.36 [AFFORDABLE HOUSING TRUST FUND] is hereby
added to the Ashland Municipal Code to read as follows:
Chapter 4.36 AFFORDABLE HOUSING TRUST FUND
Section 4.36.010 Purpose
Section 4.36.020 Definitions
Section 4.36.030 Dedication of Revenue
Page 1 of 3
Section 4.36.040 Establishment of Policies and Procedures
4.36.010 Purpose
A. The purpose of the Affordable Housing Trust Fund fAHTFI is to support the
creation or preservation of housing that is affordable to people with incomes that
do not exceed 120% of the area median income, as defined by the Department of
Housing and Urban Development for the Medford-Ashland Metropolitan Service
Area.
B. AHTF funds will support activities that create, preserve or acquire housing
within the Ashland Urban Growth Boundary. AHTF funds may also be used for
permanent or transitional housing for homeless families and individuals, and for
the modernization, rehabilitation and repair of public housing.
C. The AHTF is not intended to be the sole source of funding for affordable
housing and any activity or project eligible for support from the AHTF is expected
to develop additional sources of funds.
4.36.20 Definitions.
The following words and phrases whenever used in this chapter shall be
construed as defined in this section unless from the context a different meaning
is intended.
A. Affordable Housing Trust Fund (AHTF) means a separate account
created by the City Finance Department established by this ordinance and
used exclusively for AHTF purposes as set forth in this Ordinance and
implementing Resolutions of the Council.
B. Administrative Procedures mean the procedures for administration of
the AHTF established by Resolution of the City Council, including but not
limited to procedures which outline application, evaluation, and all other
associated procedures for administration of the AHTF.
C. Affordable Housing means residential housing primarily for households
or persons earning less than 120% the area median income where housing
costs including principal, interest, taxes, insurance, and homeowners
association dues, or rent, do not constitute more than 30% the household
income, and as more fully defined per Council Resolution 2006-13.
D. Eligible uses and Activities mean those uses for the AHTF which are
set forth an implementing Resolution of the City Council, such uses
including but not limited to uses and activities which facilitate the
production and preservation of affordable housing within Ashland's Urban
Growth Boundary.
E. Affordable Housing Priorities means priorities. established from time to
time by the City Council by Motion, Order or Resolution, to -guide the
allocation of funds from the AHTF.
4.36.030 Establishment of Affordable Housing Trust Fund / Use of Funds
Page 2 of 3
A There is hereby established and created an Affordable Housing Trust Fund,
fAHTFI, a separate account established by the City of Ashland Finance
Department for purposes consistent with this ordinance and to provide a discrete
account for earmarked affordable housing funds and dedicated affordable
housing funds.
B The AHTF allows for dedicated funds to be used in support of Affordable
Housing Priorities through receipt of donations and dedicated revenue streams,
including but not limited to donations, grants, sale of surplus City Property, or
any other revenue sources approved by the Ashland City Council or the People of
Ashland.
C. Distribution of funds hall be in accordance with the policies and procedures
per Resolution 2008-
4.36.040 Establishment of Policies and Procedures
The Administrative Procedures associated with the AHTF, including fund
administration, determination of eligible applicants, eligible uses and activities,
award preferences, eligibility criteria, award process, and selection criteria are
initially approved by the City Council per establishment of Resolution 2008-~?~
SECTION 2. Severability. The sections, subsections, paragraphs and clauses of this
ordinance are severable. The invalidity of one section, subsection, paragraph, or clause
shall not affect the validity of the remaining sections, subsections, paragraphs and
clauses.
SECTION 3. Codification. Provisions of this Ordinance shall be incorporated in the
City Code and the word "ordinance" may be changed to "code", "article", "section", or
another word, and the sections of this Ordinance may be renumbered, or re-lettered,
provided however that any Whereas clauses and boilerplate provisions (i.e. Sections 2-
3) need not be codified and the City Recorder is authorized to correct any cross-
references and any typographical errors..
The foregoing ordinance was first read by title only in accordance with Article X,
Section (C) of the City Charter on the day of , 2008,
and duty PASSED and ADOPTED this day of , 2008.
Zi" 4 a~e~~
Barbara M. Christensen, City Recorder
SIGNED and APPROVED this S' day of 200
Jo n W. Morn n, Mayor
e ie ed a o or
ichard Appicell ity Attorney
Page 3 of 3
RESOLUTION NO. 2008- 3
A RESOLUTION ESTABLISHING POLICIES AND PROCEDURES FOR
ADMINISTRATION OF THE AFFORDABLE HOUSING TRUST FUND
RECITALS:
A. WHEREAS, the City of Ashland City Council approved the establishment
of the Affordable Housing Trust Fund (Ordinance to keep our
community diverse by facilitating the production and preservation of
affordable housing throughout Ashland; and
B WHEREAS, The policies and procedures for administration of the
Affordable Housing Trust Fund establish eligible uses, eligible applicants,
the method by which funds are awarded, and selection criteria; and
C. WHEREAS, the City Council understands the changing nature of the
housing market and corresponding housing needs, and therefore has
established the policies and procedures for administering the Ashland
Housing Trust Fund (AHTF) to remain flexible to respond to changing
market conditions and opportunities; now therefore
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Purpose
1.1 The purpose of the City of Ashland's Affordable Housing Trust
Fund (AHTF) is to establish a dedicated source of revenue to
provide ongoing funding for housing projects or programs that
address the housing needs of Ashland residents. To this end the
AHTF is established to address the primary purpose of encouraging
the creation of housing for homeownership or rent, at a cost that
will enable low and moderate income families to afford quality
housing while paying no more than thirty per cent of gross
household income on housing.
1.2 To promote the rehabilitation, preservation and production of
quality, well designed rental and ownership housing the AHTF will
award funds to community development partners that are furthering
the AHTF mission. It is expecting that the local contributions made
through Ashland's Affordable Housing Trust Fund will assist in
maximizing the leveraging of State and Federal funds, as well as
encourage private sector investment in affordable housing.
1.3 Understanding the high cost of housing regionally, it is evident that
low and moderate income households are not being served by the
housing market. To address the disparity between the cost of
housing and the means of resident households to afford housing,
the Affordable Housing Trust Fund aims to provide direct financial
support to projects that retain or increase the supply of needed
housing for households earning less than 120% the Area Median
Income as defined by HUD.
1.4 The Administrative Procedures associated with the Affordable
Housing Trust Fund, including fund administration, determination of
eligible applicants, eligible uses and activities, award preferences,
eligibility criteria, award process, and selection criteria are hereby
established.
Section 2. Eligible Applicants
2.1 The Affordable Housing Trust Fund is structured to ensure that
many different types of organizations are eligible to receive
financing.
2.2 Eligible applicants include governmental subdivisions, community
development corporations, local housing authorities, community
action agencies, community-based or neighborhood-based non-
profit housing organizations, other non-profit organizations, for-
profit entities, and private employers.
Section 3. Eligible Uses and Activities
3.1 Affordable Housing Trust Funds shall support the creation or
preservation of housing that is affordable to households with
incomes that do not exceed 120% of the area median income, as
defined by HUD for the Medford-Ashland metropolitan service area.
3.2 Affordable Housing Trust Funds will be focused on those activities
that create, preserve or acquire housing within the Ashland Urban
Growth Boundary.
3.3 Housing developments financed by the Affordable Housing Trust
Fund (AHTF) which receive subsidy, financing, tax credits or other
assistance under a State or Federal housing program, may contain
market rate units insofar as permissible under those programs
and/or to the extent that they are necessary to support the creation
of and/or on-going sustainability for the affordable housing units in
the development. However, Affordable Housing Trust Funds may
not be used to support such market rate units.
3.4 Affordable housing units developed utilizing subsidy from the
Affordable Housing Trust Fund shall comply with the income, rent
and purchase housing cost limits established by Resolution 2006-
13, as amended, and as restricted by a covenant prepared by the
City of Ashland.
3.5 The Affordable Housing Trust Funds can be provided as either a
grant or a loan depending on the project or program receiving
funding. To retain a significant degree of flexibility the eligible uses
have a broad application including the following:
3.5.a Acquisition and Construction of new affordable housing.
Eligible acquisition and construction costs include
reasonable costs associated with building or land purchase,
including but not limited to:
• Purchase price
• Option costs
• Financing fees
• Appraisal costs
• Closing costs
• Interest
• Inspection fees
• Title insurance
• Relocation costs
• Architectural/engineering fees
• Construction costs
3.5.b Conservation of energy through the use of "green"
technologies provided that the benefits of the energy savings
is passed on in the form of reduced costs to the qualified
occupants of the affordable housing.
3.5.c Land Banking: the purchase of land to be dedicated toward
the development of affordable housing in the near or long
term.
3.5.d Predevelopment activities undertaken by a community
development organization in support of the development of
affordable housing including planning, architectural
services, engineering services, landscape design, legal
services, surveys, appraisals, site clearance and demolition,
environmental clearance, permit application fees and system
development charges.
3.5.e Bridge loans to assist in development of low-income
housing (for rental or owner occupancy). Bridge loans are
intended to provide funding to permit housing projects to
proceed in advance of the availability of permanent project
funding. Bridge loan funding is available for acquisition or
construction activities.
3.5f Capacity Building for non-profit affordable housing
providers in the form of direct grant awards to fund
administration of an affordable housing project or program.
3.5.g Rehabilitation and Emergency Repairs as part of an
established program to secure units as affordable or to
provide direct benefits to existing low-moderate income
households. Eligible rehabilitation and emergency repair
costs include but are not limited to:
• Architectural/engineering fees
• Construction costs
• Relocation costs
• Hazardous materials abatement including lead based
paint noticing consistent with The Federal Lead Safe
Housing Regulations HUD requirements at 24 CFR
§35
3.5.h Direct benefits to low-moderate income households through
an established program including down payment assistance,
rental assistance, mortgage foreclosure prevention,
emergency housing vouchers, homeownership training,
renter education, or other programs intended to increase
housing opportunities for Ashland's low-moderate income
residents.
3.5.i Transitional and Emergency Housing for homeless
individuals and families through an established program to
move people toward self-sufficiency.
3.5.j Other uses as deemed appropriate by the Ashland City
Council as supporting the development or preservation of
affordable housing within the City of Ashland.
Section 4. Preferences
4.1 The general criteria of selection are found in Section 8 and may be
modified through the annual Request for Proposals, however the
following preferences are provided as general guidance for future
applicants for Affordable Housing Trust Funds.
4
4.1.a Developments that produce "new" affordable housing units.
New affordable housing units shall include housing units
constructed where none had existed previously, abandoned
or fire-damaged residential units to be returned to residential
use, and non-residential or non-residentially-zoned property
converted to residential use. Any designated new affordable
housing units shall be secured as affordable through
recorded Resale Restriction Covenants.
4.1.b Developments that provide new affordability. New
affordability refers to existing housing where a new level of
affordability is provided that does not currently exist. This
could occur in rental or ownership housing where the
number of affordable units is increased; where a portion of
existing units will be made affordable to households at
income levels substantially lower than the units previously
served; or where the term of affordability on the units will be
extended for a period beyond thirty (30) years.
4.1.c Developments of housing utilizing the Land Trust model to
secure property and perpetual affordability.
4.1.d Developments that include joint ventures between multiple
non-profit developers and or for-profit developers, working in
partnership, to complete an affordable housing project
4.1.e Developments that include a joint venture between service
providers and non-profit affordable housing developers to
create projects that contain additional benefits to low income
individuals in the development of the project, or additional
services for the residents upon completion.
4.1.f Developments that incorporate the use of "green" building
materials, use of energy-efficient appliances, low-water use
landscaping, and incorporation of building design and
operational factors that minimize energy use and resource
consumption as well as avoid indoor health impacts to
achieve Earth Advantage Certification.
4.1.g Developments that include affordable units for the disabled
and the homeless.
4.1.h Projects that propose long term affordability.
4.1.11 Projects that are sponsored by non-profit organizations.
4.1J Projects that use private funding sources and State funding
sources to leverage the least amount of Ashland's Affordable
Housing Trust Funds.
Section 5. Fund Administration
The Affordable Housing Trust Fund (AHTF) originated through the direction of the
Ashland City Council and Ashland Housing Commission.
5.1 The City of Ashland acts as fiduciary agent and administrator of the
funds.
5.2 Funds dedicated to the Ashland Housing Trust Fund shall be
exclusively reserved to support the eligible uses activities identified in
Section 3, and shall not be used for the general operation of the City.
5.3 The City of Ashland shall issue a request for proposals (RFP) to
announce the availability of funds. The Affordable Housing Trust
Fund RFP issuance shall be timed to run concurrent with the
Community Development Block Grant Program award process.
5.4 The City may issue a Notice of Funding Availability (NOFA) to
specifically target up to 10% in available Affordable Housing Trust
Funds to undertake eligible uses and activities identified in Section 3.
5.5 The City of Ashland Housing Commission, and City Staff as
designated by the Director of Community Development, shall review
applications for Affordable Housing Trust Funds to determine project
eligibility and evaluate the applications based on the selection criteria
provided in the issued Request for Proposals. The Housing
Commission, and City Staff, shall provide recommendations to the
City Council who shall make final award decisions.
5.6 The City aims to administer the Affordable Housing Trust Fund in a
manner consistent with other affordable housing programs such as
the Ashland Community Development Block Grant Program. The
implementation of a comparable application, application evaluation,
and approval process will provide housing developers with a
consistent and coherent method for securing housing funds from the
City. Coordination of the grant allocation process with other local and
state funding application timelines, will help ensure that AHTF funds
are best applied to leverage additional resources in support of the
housing projects.
5.7 Affordable Housing Trust Funds will be allocated in a manner
consistent with the threshold criteria provided Section 8, and
consistent with State and Local Public Contracting law.
Section 6. Match Requirements
6.1 The Ashland Housing Trust Fund is intended to support the
development of needed housing, but is not intended to provide the
sole source of funding for any development project or housing
program. To ensure that affordable housing providers, and
organizations that assist individuals and families in obtaining
needed housing, do not rely exclusively on AHTF to support their
activities, it has been determined that;
6.2 The Affordable Housing Trust Fund contribution shall not exceed
more than 50% of the total project, or program, cost. Required
Match can be met utilizing Community Development Block Grants,
State or Federal Funding, direct contribution from the applicant,
private donations, and the contribution of land, materials or labor to
the project.
6.2.a In the case that land previously owned by the applicant is
considered as required match, the value of the land shall be
determined by a City approved certified appraisal completed
by the applicant, unless otherwise directed in Oregon
Revised Statute or City Municipal Code.
6.2.b The valuation of land, and available equity to be considered
as matching funds, shall be verified by the City prior to the
disbursement of an AHTF grant when its value is considered
as required matching funds.
6.2.c Donated materials and labor which are proposed as required
match through the development of a project shall have their
value estimated at the time of application. The actual value
of these contributions is subject to verification by the City at
completion of the project.
6.2.d Award recipients shall provide verifiable accounting for
donated labor and materials, when such was necessary to
satisfy the AHTF match requirements.
6.3 A recipient of an AHTF grant that fails to verify the match
requirements have been satisfied at the conclusion of a project
would be considered cause for the City to require full or partial
repayment of any AHTF grants awarded to a project.
Section 7 - Allocation of Funds
The Affordable Housing Trust Fund is structured to allow the flexibility for the
City, and housing providers, to be responsive to opportunities that arise that
require an immediate expenditure of a relatively small amount of funds to secure
property, or financing, as well as to ensure the majority of Affordable Housing
Trust Funds are allocated through a annual competitive award process.
Establishment of two distinct and separate award processes is intended to
provide for both consistency and flexibility. The issuance of a Request for
Proposals (RFP) which will allocate 90% of the available allocation of Affordable
Housing Trust Funds will be coordinated with other local and State funding cycles
to allow applicants to best structure their project financing. Additionally a Notice
of Funding Availability (NOFA) may be announced, as funds permit, to allocate
up to 10% of the annual funding available. A NOFA is primarily intended to be
responsive to immediate needs for a limited grant or loan if needed for
predevelopment activities which will further the mission of the AHTF.
The distribution of any and all AHTF funds through Competitive or Non-
Competitive awards as described in Sections 7.1 and 7.2, will be in accordance
with State and Local Public Contracting laws.
7.1. Competitive Awards - Request for Proposals (RFP)
The City of Ashland has a limited amount of Affordable Housing
Trust Funds to use each year in comparison to the scope of the
housing needs within the community. As a result, it is essential that
the funds are used to meet the City's priorities in an efficient and
cost-effective manner. To this end a competitive award process
has been established and a set of award criteria shall be developed
to evaluate proposals received through a Request for Proposals
(RFP) process in terms of how they address the specific priorities
outlined in the annual RFP.
The steps for making the competitive grant awards or loans is
outlined below.
7.1 a. The City of Ashland may issue a Request for Proposals on an
annual or intermittent basis depending on availability of funds,
providing applicants with a minimum of 45 days to respond to the
request.
7.1 b City Staff shall assess the project proposals to determine if the
eligibility criteria are met and shall develop a recommendation to
provide to the Ashland Housing Commission and the City Council.
7.1 c The Ashland Housing Commission will provide applicants the
opportunity to make a presentation on their project proposal and
provide community members the opportunity to comment by
holding a public meeting.
7.1 d The Ashland Housing Commission will develop a grant award
recommendation to the City Council using the AHTF criteria to
determine which projects best meet the City's spending priorities.
Each application will be rated on a numeric scale as established in
the annual RFP for each criterion of selection (Section 8).
7.1 a The Ashland City Council shall make a final decision on the award
of Affordable Housing Trust Funds.
7.1 f The City of Ashland shall prepare an agreement between the City
and the award recipient. The Agreement shall outline the conditions
of award and shall be executed prior to the disbursement of any
Affordable Housing Trust Funds.
7.2. Notice of Funding Availability (NOFA)
Upon electing to initiate a Notice of Funding Availability (NOFA) the
City shall issue a notice of funding availability through publication in
the Ashland Daily Tidings and on the City's Website providing 30
days for eligible applicants to submit qualifications for funding. The
City shall review all applications received to determine if the
applications meet the City's threshold criteria. If the criteria are met
then the funds are awarded to, or reserved for, the applicant. Funds
available through the NOFA process are awarded on a first come,
first served basis, until reaching the annual funding cap. A reserve
award granted to an applicant may be rescinded by the City if the
applicant does not undertake the activities identified in response to
the NOFA in advance of the City's issuance of another RFP or
NOFA.
7.2.a On an annual basis the City shall determine the amount of funds
available to be distributed through a NOFA procedure
7.2.b In no case shall the amount disbursed through the non-competitive
process exceed 10% of the annual AHTF revenue in a given
program year.
T -
7.2.c The City of Ashland recognizes that the nature of affordable
housing development acquisition of property is often opportunity
dependant. Further many nonprofit housing developers lack the
resources to undertake feasibility studies, due diligence
inspections, preliminary drawings and other activities required to
evaluate potential projects as well as apply for project financing.
7.2.d To enable non-profit organizations, community development
organizations, the Housing Authority of Jackson County, and the
City of Ashland, to be responsive to opportunities outside of the
annual Request for Proposals timeline, the City may reserve a
portion of Affordable Housing Trust Funds to support pre-
development activities.
7.2.d.1 Predevelopment activities undertaken by a community
development organization in support of the development of
affordable housing including planning, architectural
services, engineering services, landscape design, legal
services, surveys, appraisals, site clearance and demolition,
environmental clearance, and payment of permit application
fees may be supported through a non-competitive award of a
predevelopment grant that may be required to convert to a
loan if the project receives full funding.
7.2.d.2 For-profit developers are not eligible to apply for Ashland's
Affordable Housing Trust Funds to assist with
predevelopment costs.
7.2.e The City of Ashland is eligible to utilize the funds reserved for the
NOFA process to conduct eligible activities as described in Section
3.
7.2.f The City may fund through a NOFA process an ongoing down-
payment assistance program, rental assistance program, education
program, rehabilitation program, or other programs intended to .
increase housing opportunities for Ashland's low-moderate income
residents which are administered by a non-profit or governmental
organization.
Section 8 AHTF Grant or Loan Award Threshold and Selection Criteria
8.01 The project is considered an eligible use or activity under Section 3,
and benefits households earning less than 120% the Area Median
Income.
(threshold verification)
8.02 If the project is related to the provision of technical assistance to
affordable housing providers, the use of Ashland Housing Trust
Funds functions to increase the capacity of the organization to
specifically address the mission of the AHTF.
(threshold verification).
8.03 Affordable Housing Trust funds shall be limited to the minimum
amount necessary to complete the project. The lower the
percentage of AHTF funds requested, relative to the full project
costs, the higher ranking the project shall be given.
8.04 The project addresses the unmet housing needs as identified in the
Ashland Housing Needs analysis or Consolidated Plan.
8.05 The lower the income level that is targeted for the benefiting
households, the higher the ranking the project shall be given.
8.06 The project provides new affordable housing, or new affordability,
through retention or rehabilitation of existing housing, within the
City. The greater the number of units provided, the higher the
ranking the project shall be given.
8.07 The project retains the affordable housing units as affordable. The
longer period of time the units remain affordable, the higher ranking
the project shall be given.
8.08 The project addresses energy conservation through the integration
of green building technologies in new construction, or achieves
greater energy efficiency through rehabilitation of existing housing.
8.09 The project maximizes partnerships in the community (volunteers,
in-kind contributions, cash contributions, multiple organizations
involved, etc.).
8.10 The project utilizes already existing resources in effective and
innovative ways. The project shall not duplicate service provided
by another organization.
8.11 The agency submitting the proposal has the capacity to carry out
the project and has had demonstrated successes completing
projects of similar scope.
8.12 The budget and time line are thorough and realistic.
8.13 The project is ready for implementation.
^.1
8.14 If the project includes the acquisition of property, the identified
property is currently available for acquisition and the applicant has
secured either a purchase option or letter of interest from the seller.
If the applicant is also applying for federal funding (Community
Development Block Grants or HOME) they should carefully review
procurement requirements and limitations before obtaining a
purchase option.
8.15 That relocation of existing residents will be minimized, and when
necessary the applicant has included accurate relocation
assistance costs as part of the project pro forma.
8.16 The proposal demonstrates that Ashland Housing Trust Funds are
the most appropriate funding source, and necessary, for the
project.
8.17 Additional selection criteria may be developed and included in the
annual RFP to best direct Affordable Housing Trust Funds toward
an identified priority need. Numeric Rankings for each of the
selection criteria shall be incorporated into the annual RFP.
SECTIO 9. his resolution was duly PASSED and ADOPTED this
day of , 2008, and takes effect upon signing by the Mayor.
Barbara Christensen, City Recorder
SIGNED and APPROVED this day of 2008.
David Chapman, Coun -I Chair
Reviewed as to fornyl
L
icha d Appic II , City Attorney
RESOLUTION NO. 2008-923
RESOLUTION DEDICATING LOAN REPAYMENTS FROM THE ASHLAND
REHABILITATION PROGRAM DEFERRED PAYMENT LOANS TO THE
AFFORDABLE HOUSING TRUST FUND
RECITALS:
A. WHEREAS, in 1985 the City of Ashland utilized a one-time Community
Development Block Grant in the original amount of $478,968 to provide rehabilitation
loans to homeowners for needed repairs to homes throughout the City; and
B. WHEREAS, twenty-one (21) individual outstanding loans remain, averaging
$4754 each, for a cumulative total of $99,843 remaining to be repaid to the City; and
C. WHEREAS, the Ashland Rehabilitation Program Deferred Loan funds originating
from the 1984 -1985 State of Oregon Community Development Block program are de-
federalized upon repayment of the loans, and can be applied to uses as the City of
Ashland deems appropriate; and
D. WHEREAS, the City.of Ashland is re-paid the entire loan amounts, without
interest, upon sale, transfer, or refinancing of homes that originally received assistance
per the agreements executed at the time of the loans; and
E. WHEREAS, the City desires that repayments of the loans outstanding as of July
1, 2008 continue to address the Ashland's housing needs through their dedication to the
Affordable Housing Trust Fund established by Ordinance ; now therefore
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Loan Repayments received by the City as payoffs for outstanding 1985
loans provided through the Ashland Rehabilitation Program, and originally funded with
Community Development Block Grant funds, shall be dedicated to the Ashland
Affordable Housing Trust Fund.
SECTION 2. All repayments of 1985 Ashland Rehabilitation Program loans that are
received by the City after July 1, 2008 are subject to this resolution.
SECTION 3. EFFECTIVE DATE. This Resolution
,
This solution was PASSED and ADOPTED this day of de~
20 and takes effe t upon signing by the Mayor.
Barbara Christensen, City Recorder
SIGNED and APPROVED this day of 40zz4e,*_~ '2008.
Reviewed as to for
Rich rd Appic I City Attorney David Chapman, C uncil Chair