HomeMy WebLinkAbout2009-03-26 Housing MIN
ASHLAND HOUSING COMMISSION
MINUTES
March 26, 2009
CALL TO ORDER
Chair Bill Smith called the meeting to order at 4:35 p.m. at the Community Development and Engineering
Services Building, 51 Winburn Way, Ashland, OR 97520.
Commissioners Present: SOU Liaison: Alexandra
Amarotico, absent
Richard Billin
Regina Ayars Council Liaison: Carol Voisin
Steve Hauck
Bill Smith Staff Present:
Aaron Benjamin Linda Reid, Housing Specialist
Alice Hardesty Carolyn Schwendener, Account
Clerk
Graham Lewis arrived at 4:40 Brandon Goldman, Long Range
Planner
Nick Frost arrived at 4:45
APPROVAL OF MINUTES AND AGENDA CHANGES
Voisin/Hauck m/s to approve the minutes of the February 26, 2009 Housing Commission meeting. Voice
Vote: Approved
PUBLIC FORUM
Reid spoke on behalf of the Homeless Task Force. The Homeless Task Force will be doing “Project
Homeless Connect” and are looking for volunteers and sponsors. This is a one day event held on June
5, 2009 for homeless people living in the Rogue Valley to receive services such as vision screening,
employment counseling, haircuts, clothing, meals etc.
Smith made a change to the agenda exchanging item number four, Sub-Committee reports, with items
five and six, CDBG application presentations and staff discussion and recommendation.
CDBG PROGRAM OVERVIEW – 2009 RFP
Reid acknowledged that the City of Ashland is an Entitlement Community and receives Community
Development Block Grant Funds to help with low income housing and different activities that serve low
income people as well as for economic development. This year the City received three applications for
the CDBG funds; this year’s allocation is estimated to be around $204,818.000 leaving a total of
$165,367.00 available to be awarded. Reid commented that in the evaluation packet the staff proposed
some potential motions. Please know that there are many potential motions that are available and the
Housing Commission is certainly welcome to propose their own, stated Reid.
Smith mentioned there has been a discussion regarding supplemental funds becoming available.
Brandon Goldman recognized that there might be additional stimulus funds in the amount of $55,000. If
that is the case then an RFP would be issued immediately as it would be a separate award process.
The city has not received the guidelines for those funds at this point.
CDBG APPLICATIONS PRESENTATION
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HABITAT FOR HUMANITY ROGUE VALLEY (requesting $164,000) - Denise James, Executive
Director for Habitat for Humanity Rogue Valley explained that Habitat builds houses for people that are
low income who are living in sub-standard conditions and who are willing to partner with them. Habitat
for Humanity looks for land to purchase or have donated to them. The houses are built from the ground
up with volunteer labor using as many professional services that are donated to them or highly
discounted. The families are required to commit to five hundred hours of sweat equity towards building
the home. When the house is complete Habitat sells them for the cost of construction with a thirty year
no interest mortgage. Habitat carries the note and uses the monthly income to reinvest into more houses
for other families. Ms. James acknowledged that Habitat has currently built thirty-three houses with zero
foreclosures in the twenty-one years they have been present in the Rogue Valley. Habitat does not go
back and regulate the buyers’ income or require them to stay at a low income level because they want to
see families do better for themselves and look at this as a “Hand up Opportunity.”
Habitat’s proposal is asking for $164,000 to acquire land off of Tolman Creek Road at the old Bud’s Dairy
subdivision. Habitat has made an agreement with Russ Dale, owner of the property, to purchase the
land at a discounted rate. The project will consist of six houses and they anticipate beginning
construction as early as March of 2010.
Commissioners Questions
The homes are targeted to 80% Area Medium Income (AMI) families. How much would you be
selling the houses for?
The target is between 30% and 60% AMI for the first owners and then 80% AMI for the second owner.
The houses would sale for the cost of construction which is averaging a little over $100,000.
Would you also be charging the owners’ for the land?
Its part of the purchase price. The cost covers both the land and the house.
Would it be deed restricted for affordability for 30 years?
It was stated in the proposal that Habitat would have a thirty year affordability which is the life of the
mortgage. Ms. James said however they do not have a problem extending that to sixty years.
Why has it taken so long to get started on the Bridge Street houses?
Ashland Community Land Trust purchased that property with CDBG funding. Habitat is working in
partnership with them. They are currently working on this project and the original time frame was to
begin work now. They did have a family in the Medford area that had severe needs consequently they
made that family a priority pushing the other project back a bit.
Mr. Dale is obligated to provide affordable housing as part of his annexation and density bonus
agreement. Do you see a possibility of him offering it to you for less or even free?
No, though they did try. They were told that he still owes $170,000 on the property.
Do you have a specific source of financing for the construction?
Thirty-eight percent of all their donations are from individuals. A Large percentage is from Foundation
and Grant money as well as community partners who donate specific services and construction
materials. Habitat has a re-store which is providing an income to them. Though they do not have specific
dollars set aside they are confident they will get the money said Ms. James.
Normally in condominiums the owner is required to maintain his own portion of land. Will this be
the case in your project or will it be collectively maintained? This is an important consideration
as it might add to the monthly cost.
Ms. James said she did not know for sure. If there is an association in existence then they might be
joining that. What the rules of the association are is not known at this time. Currently Habitat has three
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other small condominium arrangements where families do pay association fees and are responsible for
small common areas they take care of.
Is this one big building?
Originally it was going to be apartments but Habitat will be making them two bedroom condominiums.
Do you have people in mind to build?
Not at this time. Typically it takes about six months and they are just beginning the process. They would
target Ashland though they would not be able to exclude others outside the community?
How do you recruit?
They have people that come to them constantly and have a list of interested clients. Other organizations
and agencies send people to them also. When they get ready to go through the process they hold an
orientation meeting and send out invitations to all the people, churches as well as newspaper ads. Try to
get the word out to everybody.
Do you have your perspective home buyers go through home buying budgeting classes?
They do have budgeting classes as well as a home maintenance workshop. Ms. James said they will be
bringing on an Americorps/Vista person whose position will be tasked with developing stronger home
owner education programs.
Is the criterion for awarding funds that the services be rendered in Ashland or people living in
Ashland how does that affect this?
Reid stated that for land acquisition as an activity, would make it exempt. If it were a service that was
being provided then it has to service predominately Ashland people.
If you do not receive all of the funding will you still do the project?
No.
Ms. James closed the discussion by saying that because Habitat doesn’t have as strong a presence in
Ashland as they would like when they begin building on Bridge Street they plan on having some
community informational meetings to try and build some partnerships within just Ashland that they
currently don’t have.
HOUSING AUTHORITY OF JACKSON COUNTY (requesting $164,000) – Betty Mc Roberts, Director
of Development, has returned to ask for additional funds for the infrastructure to benefit a sixty unit low
income development located on Clay Street. Prior to this application the City of Ashland awarded
CDBG funds to the HAJC in the amount of $345,000. HAJC has submitted their application to the
Oregon Housing and Community Services (OHCS) for the consolidated funding cycle on February 27,
2009. Mrs. Mc Roberts believes they have a good chance of being funded. Key Community
Development Corporation (Key Banks) has been the investor for their last two projects and has agreed to
do this project mainly because they like Ashland. The Housing Authority has a letter of commitment from
both Key Bank as the equity investor and from US Bank for the financing.
Mrs. Mc Roberts stated that in their last application a total of $600,000 in Home Dollars was shown in the
pro-forma. Home Dollars are Federal Grants to the States to help build housing. Those Grants come
with more regulations then even the CDBG funds, requiring environmental reviews etc. all of which take
six to nine months to complete. The Housing Authority removed that money from the budget because
readiness to proceed is one thing that will help them get funded through OHCS. That decision was made
because the State will want to fund a project that will be on the ground in the fall and the Housing
Authority is planning to break ground on October 1, 2009.
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Mrs. Mc Roberts believes that over the next couple of years the tax credit financing will be fairly slim. A
certain block of Low Income Housing Tax Credits are awarded from the IRS to the State of Oregon and
then they are given out to projects. In order to help these projects this year the State is awarding 130%
to difficult to develop areas and Ashland is one of those. The Housing Authority will find out in May if the
State awards them the project.
There is a significant amount of infrastructure required on this project. The Housing Authority is getting
ready to receive bids on the Clay Street improvement portion that will be done with the first portion of the
CDBG funds that have already been awarded. That project should be completed by June 2009.
Goldman addressed the issue of the related Planning Action across the street known as Coming
Attractions in which ODOT conditioned that that project install a median down the center of the street. If
the median is installed it would make a right hand turn lane redundant because you could only turn right.
That projects timing and this one still is a condition of approval that one or the other be installed. If this
project is finished first then that right hand turn lane is something that would have to be permitted through
ODOT. Mrs. Mc Roberts said the HAJC will probably beat the other project as they anticipate having it
completed within a year consequently making it necessary to install the right hand turn.
Commissioners Questions
If we don’t fund this project what do you cut out?
Nothing. It puts a strain on the Housing Authority.
Are the letters from the banks letters of interest or actual letters of commitment?
Banks don’t give letters of commitment until they have underwritten the project. These letters from the
Banks are actually more then Mrs. Mc Roberts expected.
Internal Streets are not going to be finished until the end but CDBG funds need to be spent within
a year?
Reid said they didn’t necessarily have to spend all of the money within a year but that the City could not
carry more then one and a half times its allocation. A portion of the first funds that were granted to HAJC
must be spent or HUD could take them back. Mrs. Mc Roberts said it is nice for the contractors to be
able to do everything without cutting into the streets, its a lot less wear and tear on the streets.
If the HAJC were awarded this money would they be able to do full street improvements on the
South Side Street?
It’s not in their budget. Mrs. Mc Roberts’ concern was that if it’s not in the planning recommendation
doesn’t it taint the City’s property on the other side. Goldman said that the staff recommendation was
that in the event that the Housing Authority received full allocation of $164,000 it be conditioned upon
those improvements to that section of the street be done at this point so that the future phase doesn’t
have to incur those costs. The change in timing to do it now as opposed to doing it at phase two is not a
change in conditions. Mrs. Mc Roberts estimated that if they did indeed go ahead and do the street
improvements it would be around another $50,000 or $60,000.
If you only received $130,000 how would that affect the project?
The Housing Authority does not have a lot of money itself. Every time they do a development and get
developer fees they take it to the next project. That pot of money right now is being used to guarantee all
the projects, making the Housing Authority a little nervous.
How confident are you that you can complete this project within a year?
We have had no problems completing other projects in this time frame.
How many jobs will this project generate?
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This is an eleven million dollar project, seven million in construction. The State of Oregon says that for
every dollar spent at least two dollars is generated in the community. Reid recently read an article
regarding the ripple affect of construction employment into the community which says that each housing
units employs at least four people.
Define what an Equity Investor is?
A person who buys the tax credits. Maple Terrace in Medford was purchased for 97 cents on the dollar,
Scenic Heights 92 cents on the dollar and this project will be 80 cents on the dollar. Due to the economy
nobody has any profit so they don’t need any tax credits creating a lower value.
PATHWAY ENTERPRISES (requesting $30,000). – Becky Simpson, CEO of Pathway Enterprises was
present to represent the citizens of Ashland that Pathway supports. Pathway Enterprises provides
supported living and employment services to adults with developmental disabilities and or mental
illnesses. They provide 24 hour care if needed and they are the seventh largest employer in Southern
Oregon. They employ both people with disabilities and without disabilities. Pathways proposal is to use
the money as seed money to hire three new staff members in order to get their supportive living project
off the ground. They already have the certificate from the State which means they are ready to go. The
County has verbally given their support for identified funds for individuals they already support for living
in their group homes. Pathway has two group homes in Ashland, one they own and one they rent, one in
Phoenix and two in Medford.
Out of the ten individuals that live in Ashland four of them have indicated that this is their community of
choice, this is where their friends are, where they recreate and where they shop, the Ashland community
is the community that they are most familiar with. The Pathway staff does not make decisions for the
individuals they serve. Their mission is to allow individuals choices and opportunities and help them
attain their dreams and visualize what they can have in life. “We understand that human beings have
rights and when they are institutionalized their choices are taken away. When given opportunities
individuals will grow and thrive” said Ms. Simpson.
Commissioners Questions
With $28,400 for wages how many people does this cover and for how long?
It says within the body of the grant that Pathway will match 10% of the funding, but actually they are
ready to go over and above the matching to make this happen. A Director has already been hired and
three individuals will be hired who will be the Community Living Specialists. They will receive intense
training to insure that the people will be able to move from a group home to an apartment or duplex. The
money goes to salaries and they will be done spending it by the end of the year. Once the project gets
started the County’s money will then help with the on going support.
Reid commented that Marketing and Outreach are not eligible for the funds. (Pathway’s requested
$28,400 for wages and $1,600 for marketing and outreach).
Are all clients in group homes and is this your first attempt to put people into their own
apartments? How confident are you that the people will be able to make that transition?
Pathway has an entire assessment process to help them identify folks that could be successful in this
process. Part of supportive living and insuring people are successful is that you offer the support needed
to insure success. Pathway fully intends to provide the support needed.
Review the funding again.
Pathway has a separate janitorial employment service division that is growing. They service some City
buildings, SOU; Jackson County buildings etc. and make money to put back into the program. Wages
will meet the Ashland living wage requirements.
Could you explain what the Brokerage agent is?
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The County gives us money to help support someone with a disability. The County can chose to pay the
brokerage to find someone housing and employment. The brokerage would then call Pathway and
inquire if they have housing available or employment and then pay them.
You need the $30,000 this year and the projection is that the program will generate the money
next year. Why do you need the money now?
They did not have the service contracts in place until recently.
Tell us how the original group homes were established and financed.
In the 1980’s there was a deinstitutionalization across the nation at which time the State asked
individuals to take people back into the communities. The State no longer wanted to house people in
large institutions; it was a human rights issue as well as needing to become more cost effective. Ms.
Simpson does not remember where the initial funding came from though now it comes from the State
through the County.
Does the County rent facilities or buy them?
They just represent an individual. Pathway tells the County how much they need for the budget to
support that person and the County continues to pay on a monthly basis. Typically the cost is about
$3,600.00 a month to support an individual.
Do you have a place identified yet?
Not yet, but Ms. Simpson has been checking out what the community has to offer.
When the time comes to find the appropriate places for their living you’re hoping you can find
something in Ashland and that is affordable.
I’m very determined stated Ms. Simpson. Not sure how to assure you 100% that the homes will be in
Ashland but as the staff developing this project it is my intent. I have no doubt there are places around
Ashland that will be appropriate for the folks that we support. Reid acknowledged that the CDBG funds
would be taken back if a majority of the homes were not in Ashland.
What additional type of training would the Community Living Specialist receive?
The State requires training from the OAR’s, along with CPR, first aid, and Oregon intervention systems.
It’s important that all staff receive the same training to insure that each client receives the same support
no matter who helps.
CDBG Award Discussion and Recommendation
The Commissioners agreed that these are three great projects and there is not enough money to fund
them all.
Hardesty believes that it’s very important to support the HAJC at this point in time in their project
development. This project will provide housing for sixty families as well as jobs which will stimulate the
Ashland economy. Hardesty is a little concerned about the HAJC sources of funds and feels that the
City needs to support them strongly. She would recommend that they receive the entire amount of
CDBG funds.
Hauck added that the HAJC proposal meets the highest priority need ranking as outlined in the CDBG
project proposal rating criteria.
Ayars agrees with funding the HAJC also for the same reasons. She really likes the idea of the
additional employment that will be brought into the Community because of this project. All three projects
are worthy stated Ayars. The Pathway project is wonderful and she would like to see them funded
maybe with additional funds from the stimulus plan if they become available. She is supportive of the
entire amount given to HAJC.
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Hardesty acknowledged that the Habitat project is a good one and would like to see them more active in
our community. She would like to see Mr. Dale give away the Clay Street property because he has the
obligation to create affordable housing there. It would benefit the community greatly if he did so, said
Hardesty.
Frost agrees with the support of HAJC but had two concerns. He would like to see other people get a
chance next cycle at funding and is concerned in making sure the money is spent in a timely manner.
Lewis supports Habitat for Humanity as he would really like to see them in Ashland. It sounds like the
Housing Authority will be doing the project regardless though he does support their project.
Billin commented that it feels they are too far into the Clay Street project to not support them at this point.
He was concerned about Goldman’s proposal regarding the full street improvements as it seems like the
HAJC are bumping up against enough problems as it is.
Benjamin confirmed that all three proposals are worth considering positively and hopes in the future they
all will be funded. He agrees with Lewis in that he would like to see Habitat take a more active role in
Ashland. He is completely in support of the Clay Street project and feels there is no choice but to see
the project completed in a timely manner. Benjamin looks forward to future funding for the Habitat
proposals and acknowledged there is no doubt in his mind that pathways goal is a noble effort and will
do everything in their power to implement these goals.
Smith asked, “Worst case scenario, if Snowberry doesn’t happen what happens to the money.” Reid
responded that the Clay Street improvements will be started soon and some of that money will go into it
anyway so we will meet our timeliness for this year. If it didn’t come about then we would take the rest
back and quickly do another RFP.
Hardesty/Hauck m/s to recommend funding the Housing Authority of Jackson County $165,367 to
fund public facilities improvements, public right of way improvements on Clay Street and on
interior streets. Voice vote: Motion passed 8-1.
The Commissioners strongly encouraged Habitat for Humanity and Pathways to continue to submit
proposals and apply for funds.
SUBCOMMITTEE REPORTS
Sub-committee Reports
Finance – The sub-committee met and has started looking at potential funding mechanisms.
Education – No report
Land Use – No report
Liaison Reports
Council – Voisin suggested that the Commissioners begin some conversation regarding
development transfer credits during the retreat. She also stated that the budget is really bad and
services are going to have to be cut.
Parks Commission – No report
School Board – No report
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Planning Commission – Benjamin said that the Planning Commission had a lengthy discussion
on the Croman Site with a lot of confusion regarding its timeline. Some Planning Commissioners
didn’t seem aware that the project had been under consideration for over a year. Bill Molnar said
that the final presentation will probably be ready in the fall. Commissioner Dimitre mentioned that
not enough consideration had been given to workforce housing.
SOU – No report
APRIL 23, 2009 AGENDA ITEMS
Homeless discussion
It was suggested to invite Melanie Mindlin to talk about the possibility of co-housing.
UPCOMING EVENTS AND MEETINGS
Next Housing Commission Regular Meeting – Thursday, April 23, 2009 between 4:30–6:30p.m.,
Community Development Building
ADJOURNMENT – The meeting was adjourned at 6:40 p.m.
Respectfully submitted by, Carolyn Schwendener
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