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HomeMy WebLinkAbout2000-06-21 Housing MIN ASHLAND HOUSING COMMISSION MINUTES JUNE 21, 2000 CALL TO ORDER – The meeting was called to order at 4:10 p.m. by Chair Larry Medinger. Other Commissioners present were Nancy Richardson, Carlus Harris, Joan Legg, and Jan Vaughn. Madeline Hill arrived at 4:25 p.m. Absent members were Joe McKeever and Gerry Sea. Staff present were Bill Molnar and Sue Yates. GUEST SPEAKER – Doug Neuman Molnar introduced Doug Neuman and explained to the Commissioners that he built a subdivision off Mountain Avenue. He built some homes in this subdivision that fell under the City’s affordable housing program. Neuman said he built 41 homes and 11 of those were affordable. The houses proved to be very popular and he quickly sold all the affordable homes. They got a lot of first-time homebuyers. Because the market has done so well, some of the affordable homeowners decided to sell their homes after owning them only a short time. In doing so, they made a windfall on their property, paid off their Systems Development Charges and were able to buy a nicer home with the money they made from their home. One person bought their home for $105,000 and sold it for $169,000. About five of the eleven homes are no longer in the affordable program. The program does not seem to be in keeping with what the City wanted to accomplish in the first place. Neuman’s idea would be to require the owner live in the house for three to five years before selling it. If they sell before the five years are up, they have to sell to someone who qualifies for the affordable program. He understands some people have to move but he would like to see a way to keep the houses in the affordable program longer. Medinger noted that when he was building developments with affordable housing and receiving density bonus points from the City, that the market had not jumped quite so dramatically. The City, is therefore giving away an irrevocable density bonus. The affect of it is lost in six months to three years. Medinger mentioned a recapture agreement drawn up by the City that never got implemented. He said the appraisers were confused and would write appraisals based on comparables not in the affordable program. Molnar said the recapture agreement came under so much fire, they got rid of it. Vaughn believes we should look at this again. Harris explained the land trust concept to Neuman. Molnar thought it might be easier for Neuman or other developers to give up one to two lots for the land trust. Harris understood Molnar and Medinger are working on a three-prong program. The developer could do something less than 25 percent affordable and call it good by giving the land trust a lot. The land trust negotiates with the buyers. The Commissioners discussed how much more difficult it would be for those at 130 percent of median to live in Ashland now. Harris said, in reality, the median income has gone up between one and four percent over the last ten years. The cost of housing has gone up anywhere as much as ten percent per year. If the housing market is going up in cost double what the median income is going up, the disparity is getting greater and greater. Legg thought the Commission needed to take a planning day and look at income groups and how they all work together. It is as important that we address the 130 percent people as land trust people. Medinger thinks, in the meantime, we should reinstate the recapture clause. He asked if Molnar could find that part of the ordinance, review it, and send it to the Council for approval. Fine thought it could happen in August if they could get it to the Council. INCLUSIONARY ZONING AMENDMENTS - Medinger and Molnar are working on this. NEW BUSINESS Fine told the Commissioners that he talked with the Council about the problem of emergency responders who cannot afford to live in Ashland. It is important to have people connected with the community they serve. Mayor Shaw thought it should be thought out for other city workers and for teachers in the community. Councilor Reid did not want to displace people at the very low end of the income scale in order to try and find housing for moderate income people who get good benefits. The sense of the Council was that it should not be considered by the Council but by the Housing Commission. Fine said the salary level for each position is in the budget document. The concern is primarily for new hires. Harris believes this requires a comprehensive study. First of all, what are we trying to get our arms around? Besides income, continue providing affordable housing through the land trust (in perpetuity). Harris thought we should discuss a number of scenarios. What happens if a police officer is no longer with the police department? How does that property get back into the affordable pool if it does at all? When the Commission presents something to the Council, all the data needs to be there in a comprehensive way. He is not sure we have the time to do this. He wondered about bringing someone in on a contractual basis to see the outcomes and the costs associated with this. This can be presented to the Council and they can decide which parts of the plan will work. Hill noted just a few scenarios too. What if a police officer gets a year or two of paid leave because of sexual abuse. Do they get to keep living in the house that the taxpayers are helping with? What about single moms who are waitresses? What about the person who has not bought the toys and have saved up for a house? Fine said although it is important to take care of these people’s needs for pure equity and moral reasons, there is also a public interest. If Fine’s neighborhood catches fire and his house is in danger, it does him very little good to call in waitresses and schoolteachers. Legg said we don’t have a comprehensive way of dealing with the citizens of Ashland. We have to sit down with the experts, union people and others. Harris said the Council is asking the Commission to look at emergency response employees. If we heap on other people, then that will not be addressing what the Council wants. It makes Medinger nervous when we talk about studies. He believes we have the brains in this committee to come up with ideas and the direction to explore. He would rather see the Commission work on it first before looking to outside consultants. The Commission wanted to continue to pursue the VISTA volunteer. After much discussion, it was decided that the next meeting will be Wednesday, July 26th from 2:30 to 5:30 p.m. Some ideas of things needed are programs from other communities, entry incomes, household size, other community subsidized programs, recapture guidelines, and what happens after people leave the city’s employment. Legg said she would go along with this only if it were a first step toward the whole process. Fine said at the end of that meeting, that hey could find a time for a broader planning retreat. ADJOURNMENT - The meeting was adjourned at 5:30 p.m. ASHLAND HOUSING COMMISSION 2 MINUTES JUNE 21, 2000