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HomeMy WebLinkAbout1999-09-22 Housing MIN ASHLAND HOUSING COMMISSION MINUTES SEPTEMBER 22, 1999 CALL TO ORDER - The meeting was called to order by Vice Chair Jan Vaughn at 4:10 p.m. Other members present were Joe McKeever, Joan Legg, Steve Hauck, Larry Medinger, and Carlus Harris. Absent members were Gerry Sea and Madeline Hill. Staff present were Bill Molnar and Sue Yates. ASHLAND COMMUNITY LAND TRUST - The ACLT has filed the Articles of Incorporation and is ready to file for the tax exempt status under 501(3)c. Harris and Cindy Dyer of ACCESS met with Russ Dale, developer of Chautauqua Trace Subdivision and negotiated for three properties at a cost of $113,808 each. This price is lower than the affordable rate and lower than the market rate. Harris feels this is a good deal considering the market value is about $135,000. Harris stated a qualifying person will pay $89,000 for a unit and be at 80 percent of median income which for Ashland is pretty substantial. Because of the tax exposure being higher than in some areas, it will be relatively tight for a person at 80 percent of the area median. Buyers of the land trust houses can apply for loans at Washington Mutual and Key Bank both of which are familiar with the land trust. The ACLT lease has been submitted to these two organizations for review. Buyers can apply anyplace they want and they will be counseled on how to educate their lenders, if necessary. Legg asked if Harris has considered having a workshop with prospective lenders to discuss what is involved in a land trust. Harris said they have considered it but have not done it. They have, however, talked to a number of lenders about the land trust model with varying degrees of interest. They have talked to some of the federal credit unions too. He believes the land trust orientation coming up in October will be a good forum for lenders to be able to get a look at what a land trust is and ask their financial questions at that time. They plan to give a special invitation to the lenders. The orientation will be October 27, 1999 at 7:00 p.m at the Hillah Temple. Anyone interested in the outreach in getting people to the meeting, let Harris know. They need the help of other Commissioners in order to get a broad range of attendance from not only community members but bankers, realtors, builders, etc. Molnar said they are developing a brochure explaining the land trust which will include a membership form. Three types of memberships will be offered: Regular, Affiliate, and Benefactor. Molnar noted that Gerry Sea, Alice Drysdale, and Carlus Harris were interviewed on Jefferson Public Radio by Jeff Golden about the land trust. Harris has arranged a couple of community announcements and KSOR will run a spot. Flyers will also be circulated. Hauck said the City owns land at 667 North Main but if they sell it, they will need to get back what they paid for it (just land value). Molnar said the land trust committee was wondering how to approach the Council about acquiring this house but is sounds like Hauck has already informed the Council that the land trust would like the first chance to acquire it. Hauck said Molnar should check with Paul Nolte, City Attorney, concerning particulars. Harris asked Hauck what process the City uses to determine the worth of the property. When would we be able to find out? Hauck said he did not know. Molnar thought the house is on a 15,000 square foot lot which would be more valuable than just the land itself. Medinger said the house would probably only be worth replacement value. Medinger has been doing some thinking about the property above Hargadine from Fork over (about three blocks). It is a bunch of big land with a couple of historical houses on it. He and John Fields spoke recently and Fields said he would like to be involved in a residential project that used good design, near downtown and affordable. Medinger thought it might be possible to do a project in that area using the concepts of the land trust and co-housing together, incorporating underground parking. People that now rent in that area tend to work downtown. Could we begin talking about getting a project like this going? The other Commissioners thought it could be an exciting idea. Harris asked if Medinger would do some preliminary work because he thought it would be interesting for the land trust. Legg suggested Medinger head up a land acquisition sub-committee under the Housing Commission. The Commission needs a vehicle by which these ideas don’t just sit, but ideas that move forward. McKeever said this could fall under “Technical Advisory Committee”. INCLUSION OF LAND TRUST OPTION WITHIN THE ASHLAND LAND USE ORDINANCE Molnar put this item on the agenda because it has been brought up a couple of times about amending the Land Use Ordinance density bonus option for affordable housing to include a land trust option. Could a developer just donate a certain number of lots for affordable housing? Is there a need to form some kind of committee with members even outside this Commission? What are the tax laws? Harris said with the passage of HB2658 and lobbying of the builders, that government will be prohibited from adopting inclusionary zoning. Medinger said what has been prohibited is inclusionary zoning where there is a straight tax on people in the same subdivision. The program the city has now is voluntary. Therefore, the others in the subdivision are not absorbing the cost of others being able to move in for less. McKeever wondered if it is voluntary, how do we keep the commitment of the developer? Hauck said because the annexation does not allow any land to be brought in if there is already enough land in the City’s inventory. Molnar explained you have to show a public need which means there is less than a five year supply of land in the inventory and you have to have 25 percent affordable housing. Molnar said that the reasoning behind the new wording is to include another voluntary option to include the lot donation to encourage the land trust for anyone applying for a subdivision currently, not necessarily annexations. Harris noted that a positive aspect of this is that several lenders are beginning to understand Ashland’s current affordable housing programs. The barriers are starting to come down. It would be great to give someone an option to give land to the land trust and be done with it. Harris said the advantage to the City is the Systems Development deferment goes away and the land will be affordable for at least 198 years in perpetuity, then the deferment almost becomes a moot issue. Medinger volunteered to serve on a Technical Advisory sub-committee along with Hauck to research these issues. Medinger wondered if John Fields might be interested in serving also. Legg would rather see it called a “panel” not a “committee” so what we have are a number of experts to call on for their assistance at certain times. They will not have to be at monthly meetings. It is just verbiage but “committee” sends up a red flag to her. Hauck moved to move forward with changing the Land Use Ordinance for the inclusion of a land trust option, including looking at the annexation ordinance. Legg seconded the motion. Legg called for the question. The motion carried unanimously. OTHER BUSINESS - Buildable Lands Inventory - Molnar said the Buildable Lands Inventory was ASHLAND HOUSING COMMISSION 2 MINUTES SEPTEMBER 22, 1999 adopted at last night’s Council meeting. Medinger would like to see a statistical basis for the numbers we throw around. What part of an ordinary populace in an ordinary town is under 80 to 100 percent of median income? Hauck said it comes down to what you define as affordable housing. Medinger wondered what is known of the existing people that live in Ashland. Molnar thinks this will be handled in the census. Hauck thought it would be helpful to have a list of the housing stock available now and a sense of income breakdowns. Legg thought it would be interesting to find out about the people who work in Ashland but don’t live here and find out their income. An economics class could probably help with this project. Then other strategies such as tax credits could be looked at that would add more options for housing. Legg said the problem with the census is that it is rooted where you live. There is probably no data gathering attached to working in Ashland, living in Medford. Legg will call Steve Reno to see if a class could do this project. Harris wondered if anyone would be available to set up or bring refreshments for Land Trust Orientation on October 27th? No one volunteered. Legg announced there are a couple of experts coming to town from Boise and Denver who might have some strategies such as tax credits that would help get units down to an affordable price. She would be happy to make them available for questions which will probably be happening around early November. The Commissioners expressed an interest in meeting with them. Vaughn suggested a study session could be arranged for that meeting. ADJOURNMENT - The meeting was adjourned at 5:35 p.m. ASHLAND HOUSING COMMISSION 3 MINUTES SEPTEMBER 22, 1999