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HomeMy WebLinkAbout2005-09-19 Housing PACKET Ashland Housing Commission Regular Meeting Agenda September 19, 2005 6:30 - 8:30pm Community Development & Engineering Services Building 51 Winburn Way, Ashland OR. 1. (6:30) Approval of Minutes - August 23, 2005 Regular Meeting 2. (6:35) Public Forum - items not on the agenda 3. (6:40) Project Updates - Lithia Parking Lot Council Decision/ Negotiations / team -Community Development Department Staffing 4. (7:05) Other Business from Housing Commission Members - New and miscellaneous commissioner discussion items not on the agenda 5. (7:20) New Business - (7:20) Election of Chair / Vice-Chair Discussion; Nomination; Election - (7:30) Consolidated Annual Performance Evaluation Report (CDBG) 6. (8:00) Old Business th -POSTPONED to Oct 17 - SDC Deferral Program Changes 7. (8:00) Commission Coordination - Liaison Reports - Parks - Schools - Planning - Conservation - Council - Subcommittee Reports - Education -Employer Assisted Housing meeting - Finance - Land Use Quarterly Study Session proposed dates: Saturday October 15, or 22 th Tuesday October 18 (4:30 Î 8:30pm) st Workforce Housing Summit (Tues. Feb. 21 , Medford Red Lion Inn) 8. (8:25) October 17, 2005 Meeting Agenda Items - SDC Deferral Program Changes - Update; Buildable Lands Inventory, Multifamily Housing Unit counts 9. (8:30) Adjournment ASHLAND HOUSING COMMISSION MINUTES AUGUST 15, 2005 CALL TO ORDER Chair Matt Small called the meeting to order at 6:40 pm. at the Community Development and Engineering Services Building located at 51 Winburn Way, Ashland, OR 97520. Commissioners Present: Matt Small, Chair Alice Hardesty Liz Peck Faye Weisler Bill Street Carol Voisin Don Mackin Jennifer Henderson (new member) Council Liaison: Cate Hartzell (arrived at 6:45 p.m.) Staff Present: Brandon Goldman, Housing Specialist Sue Yates, Executive Secretary Small introduced Jennifer Henderson who replaces Kim Miller. Small asked that it be noted in the minutes how much Kim Miller and Amy KorthÓs (left the Commission a couple of months ago) efforts were appreciated by the Commission. APPROVAL OF MINUTES Mackin/Voisin m/s to approve the minutes of the July 18, 2005 meeting. Voice Vote: Everyone approved. Weisler/Voisin m/s to approve the minutes of the July 23, 2005 meeting. Voice Vote: Everyone approved. PUBLIC FORUM HULZ spoke regarding Dapper DellÓs, the solar learning center, an idea he has for high- end homeless people. He is still working on it. He said it really works. OTHER BUSINESS FROM HOUSING COMMISSION MEMBERS New and Miscellaneous Commissioner Discussion Items Not on the Agenda Small recalled that each subcommittee was going to look at their priorities one last time and report to the Commission at this meeting those priorities along with a timeline for getting the work done. He thought vulnerable properties should be part of the Land Use subcommittee. Henderson expressed an interest in working on the Land Use subcommittee and perhaps Finance. Hartzell asked to be involved in the Land Use subcommittee for at least a couple of meetings. She asked Goldman to update the matrix and add it to next monthÓs agenda. The Commissioners discussed the Action Items mentioned on Page 4 of the June 23, 2005 study session and what subcommittee would be involved with each item. Creating a list of vulnerable properties. (Land Use) Inform the Downtown Plan Committee that public lots should be available for work force housing. (Education) Review information regarding density bonuses and condominium conversions for affordable housing provisions. (Land Use) Have a conference call with Fannie Mae regarding employer assisted housing. (Education) Have a conference call with HUD regarding section 108 loan program. (discuss at this meeting) Request that other public bodies establish a liaison to the Housing Commission. (Education) Goldman was going to draft a letter to Parks, School Board, Planning Commission, Conservation Commission and SOU. Housing Commission members to be liaisons to public bodies. Parks - Street/Schools - Hardesty/ Planning Commission Î Mackin, Peck, Henderson Draft letter for Housing Commission to send to ICCA regarding future use of 144 Second Street. Agenda item for tonight. Determine legality of restricting housing to families only. Goldman found out you can restrict housing to families. People with children are a protected class. ASHLAND HOUSING COMMISSION MINUTES AUGUST 15, 2005 The Education Committee drafted Voisin to be chair and she recommended that the other committees do the same. April is supposed to be the month we elect officers. Henderson moved to retain Small as Chair and Weisler as Vice Chair until April. The motion died for lack of a second. It was agreed this item will be discussed at the September meeting. th Diana Goodwin-Shavey, former Housing Commissioner, will be in town on August 19 and offered to make herself available to spend some time answering questions of Housing Commissioners. Goldman will e-mail her and find out exact times and let the Commissioners know. Goldman will get an updated copy of the HUD housing in Ashland. The Commission agreed that committees should consider asking for community volunteers to help them. Hartzell suggested, if it is approved by Legal, that a committee could establish an advisory group, especially Finance. NEW BUSINESS Interfaith Care Community of Ashland update Goldman said Sharon Schreiber, Director of ICCA, indicated the property on Second Street is for sale. Any sale is contingent upon ICCA finding another location in Ashland to purchase and operate services. Their goal is to continue operations in Ashland and not pull the equity out of Ashland. They are looking for a site out of a residential area. Goldman said he will draft a letter to ICCA complimenting them on their desire to stay in Ashland and encouraging them to continue their services here. Discussion on recommendation to Council regarding additional Housing Staff th Gino Grimaldi, City Administrator, is willing to speak to the Housing Commission on September 19. Goldman will itemize his responsibilities, prioritizing by percentage of time spent on each task. Small asked Hartzell to be prepared to talk to Grimaldi at the next meeting. She agreed. OLD BUSINESS SDC Deferral Program Changes Goldman said since this was last presented, he has contacted non-profit and for-profit housing developers for their input into the proposed changes to the SDC program. He received a letter from ACCESS, Inc., outlining their concerns. The proposed changes are suggestions to clarify the SDC program as it relates to other sections of our code, namely the zoning ordinance and the annexation ordinance that establish that units have to sell between 60 and 120 percent of median income or rent to those qualified households. There is nothing in the SDC program that establishes what an affordable purchase price is for the different income levels. As a result there is a potential that someone can create a unit that meets the zoning requirement and targeted to someone at 60 percent of median income. The concern is that they may not be able to afford it if they have purchased it at the current maximum purchase price. (Refer to GoldmanÓs memo of May 25, 2005 and his chart of examples.) The table establishes how much a monthly payment will be. The rationale behind it is not to establish a maximum purchase price but rather say a household cannot spend more than 30 percent of their income and if they get a better interest rate they can then afford a higher dollar value for the home. If their interest rate is lower, the house would have to have a lower selling price. In other words, it shifts the focus from the current SDC program from a maximum purchase price to maximum monthly mortgage. Whenever a unit transfers, it would be held to this program. However, a provision could be added to protect the first time buyer to establish the resale amount so it cannot be less than their original purchase price. The letter from ACCESS has asked what would happen in the case of a hardship. Goldman said in the event of a transfer, if it is a qualified transfer, an owner would not have to pay the penalties. The penalties would only kick in if an owner wanted to get out of the program by paying SDCÓs to sell the home at market rate. There are less than a half dozen homes that fall under the SDC deferral program each year. These are now deed restricted. Goldman said the program could be a voluntary ÐinÑ but with no voluntary ÐoutÑ. That would keep a unit affordable for 30 years. It would be StaffÓs recommendation that units will remain affordable for a 30 year period and that the developer would be exempt from paying the Community Development and Engineering Services Fee. Weisler said in the hardship cases, would there be an entity that could buy it and hold it in affordability for the short term? She would like the City to have the right of first refusal. Henderson said there is a model in ACLT. Is the Commission favorable toward a minimum period of affordability or a voluntary in/voluntary out? Does the Commission wish to have the purchase price correlated to income (30 percent for a mortgage) or a maximum? Should utilities be included? For simplicity, it would be better to do things that can be traced over time. PUBLIC HEARING ASHLAND HOUSING COMMISSION MINUTES AUGUST 15, 2005 MELANIE MINDLIN, Fordyce Co-Housing, strongly supports going to a case by case basis for SDC deferral. She would encourage them to go to 35 percent to encourage buyers to put together their best package and she would like it tied to percentage of income. She would not prefer to have a term of affordability and have as little overlay as possible. All it does is get in the way of what the non- profits are doing. She has a pet peeve about limiting equity on those creating affordable housing and buying affordable housing. SHELLEY AUSTIN, ACLT, agreed with most of what Cyndi Dyer of ACCESS said in her letter. With regard to the period of affordability, if there is any deferral program that has a disincentive for getting out of the program, anything less than 30 years, there should be a $10,000 penalty. WeÓve seen in Ashland so many times where the SDCÓs have been paid off and the units fall out of the program. Goldman said heÓd come back with answers to questions and a draft resolution. Hartzell asked Goldman to craft some optional language in the resolution for the points that have been brought up. SUBCOMMITTEE REPORTS Liaison Reports Parks Ï Street spoke with Mike Gardiner, Parks Commission Chair. TheyÓve met twice with the School Board and City Council. th They will be meeting again on September 8 at the Council Chambers at 7:00 p.m. and affordable housing is at the top of the list. However, Gardiner doesnÓt see that Parks will be very involved affordable housing solution. Street will talk with the other commissioners to try to persuade Gardiner to shift a little bit. Schools Ï Hardesty met with Ruth Alexander, School Board member and she is very interested. Hardesty has met with Amy Patton. They are just talking at this point about how they can work together. Alexander is interested in coming to one of the Housing CommissionÓs meetings. They talked about the idea of little working groups that could be made of up of two to three Housing Commission members as well as informal discussion with the School Board members that would include Juli DeChiro, Superintendent of Schools. Planning Ï Mackin said he and Peck attended the Planning Commission meeting to talk about condominium conversions. It will be coming back to a Planning Commission study session, maybe on July 23, 2005, 7:00 p.m. at the Council Chambers. Conservation Ï Weisler asked them if they could support energy conversation for affordable housing. There is a possibility of dedicating the sale of green tags for solar panels for affordable housing. They would have to go to the Council for approval. At the end of the year, dedication of the proceeds will be decided. They might also consider applying for a grant from the Bonneville Environmental Foundation. Education Ï Voisin reported they have a call to Fannie Mae on how to best devise a survey to take to employers. They will establish a time when a Fannie Mae representative can be a part of an employer assisted housing workshop (probably November) and the outcomes they are looking for. Future meetings are August 29 at 5:15 p.m. and September 12, 5:15 p.m. Next Quarterly Study Session thndnd There are two October dates Î the 15 or the 22 for a meeting with Darcy Strahan from the State. Goldman will target the 22 and let Strahan know soon. The meeting time will be 8:30 a.m. to 2:30 p.m. The Commission will have Strahan for about 1 ½ hours. CITY COUNCIL LITHIA LOT PROPOSAL rdth The Council heard the proposals on August 3. TheyÓve set a Special Meeting for August 30 at 7:00 p.m. for this item alone. Goldman is expecting a decision at that meeting. Hardesty will be there and she encouraged others to attend the meeting and come prepared. Staff will have a separate recommendation from that of the Housing Commission. Goldman said Kendrick submitted a Performa showing what their project is built on. He will check with Legal to see if it admissible. Hardesty, Mackin and Street volunteered to go to the Council meeting. AGENDA ITEMS FOR NEXT MEETING Discussion of whether or not to vote for a new Chair and Vice Chair. ADJOURNMENT Ï 8:45 P.M. ASHLAND HOUSING COMMISSION MINUTES AUGUST 15, 2005 DRAFT CONSOLIDATED ANNUAL PERFORMACE EVALUATION REPORT (CAPER) Program year 2004 (January 1, 2004 Î July 30 2005) Prepared for: The U.S. Department of Housing and Urban Development By: The City of Ashland Department of Community Development Planning Division Ashland, Oregon One Year Use of Funds CAPER for CDBG Funds 2004 Program Year City of Ashland CDBG CAPER 2004 Page 2 City of Ashland 2004 Program Year Consolidated Annual Performance and Evaluation Report (CAPER) Part 1. Narrative Statement A) Assessment of Three to Five Year Goals and Objectives In May of 2000, the City of Ashland completed the Five-Year Consolidated Plan (2000- 2004). Fourteen priorities (goals) are identified in the Five-Year Consolidated Plan. The priorities are not ranked in order of importance. Each project/activity, which was undertaken during Fiscal Year 2004-05, is listed and discussed under the relevant priority. This assessment provided in this CAPER covers the 2004 Program year (Jan 1, 2004- June 30, 2005). This 18 month long program year was the result of modifying from a calendar to a Fiscal based program year to better streamline the CDBG program with AshlandÓs fiscal year. In future years the CDBG Program year will extend from July 1 to th June 30 of the subsequent year. Goal 1: To increase the supply of affordable rental housing for extremely low-, low- and moderate-income families. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes. Ashland Community Land Trust In the 2004 calendar year ACLT added eight units of affordable Housing to AshlandÓs inventory. An award of $75,000 in CDBG funds awarded to ACLT during Fiscal Year (FY) 2000-2001 for acquisition of the property was directed toward the purchase of 41 Garfield Street during FY 2001-2002. Ashland Community Land trust constructed six (6) residential rental units upon this parcel. The project, named ÐParkviewÑ, is comprised of two studios, two 1-bedroom, and two 2-bedroom apartments. In addition to the $75,000 CDBG contribution to the project ACLT also received $518,354 in HOME funds, as well as $100,000 in State of Oregon Trust fund dollars to be used toward the development of the 6 unit project. These six units were completed in February of 2004 with tenant selection in March/April of 2004. Of the 6 households selected, 4 were female head of households, and 4 disabled individuals are part of the occupying households. All six households qualify as low-income as earning less than 60% area median income. City of Ashland CDBG CAPER 2004 Page 3 Accessory Residential Units The City of Ashland allows small second units in the single-family residential zones to increase the supply of affordable rental units. The Conditional Use Permit Procedure was changed in 1990 to allow an accessory apartment or cottage within single family residential zones. This provided valuable affordable housing units without unreasonable impacts on the neighborhood. A total of 99 units have been made legal or been newly constructed of which building permits for eight units were issued in the 2004 calendar year and three permits were issued in the first six months of 2005. One of these newly developed Accessory Residential Units, located at 264 Nevada Street, was subsidized with a deferral of $4375 in System Development Fees from the City General Fund under the stipulation that the unit be an affordable rental to qualified households earning less than 80% Area Median Income (AMI). City of Ashland general funds and planning action submittal fees were utilized for staff support. No Accessory Residential Unit projects were funded with Community Development Block Grant funds. Large scale developments The City of Ashland currently requires that for large scale developments over 10 residential units, 10% of the units be provided to qualified low-income households earning less than 80% of area median income at rents equal to or less than those set under the Ashland Affordable Housing Program. In 2003 the City approved one such large scale 24 unit condominium development at the corner of Grant and North Main Streets. In this development two affordable units were provided. Construction was completed in February of 2004 and deed restrictions were imposed in April 2004, thereby adding two affordable rental units (232 & 234 Grant Street)to the City's inventory of affordable housing stock. These units must remain affordable for not less than 20 years. Total New Affordable Rental Units Added January 1, 2004 Î July 30 2005 The 2004 program year saw a nine unit cumulative increase in newly constructed rental housing units, affordable to low-moderate income households. CDBG funds contributed to the development of six of the nine units as noted under the ACLT project. Eight of the nine units are deed restricted requiring a period of affordability of either 20 years (condo-conversions) or will be perpetually affordable under ACLT. One Accessory Residential Unit is affordable but could voluntarily exit the program by paying the deferred SDCs plus interest. City of Ashland CDBG CAPER 2004 Page 4 Goal 2: To increase the homeownership opportunities for extremely low-, low- and moderate-income households. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes. Ashland Community Land Trust(ACLT) The purpose of the land trust is to create and sustain long-term affordable housing in the city limits of Ashland for low and moderate-income families. The land trust acquires and holds land, while the improvements are sold or rented to the low-income residents. During Fiscal Year 2001-2002 a total of $120,000 in CDBG funds were awarded to the Ashland Community Land Trust (ACLT) for the purchase of property to construct 4 affordable housing units. The City Council reviewed and approved a modification of the 2001-2002 Action Plan to enable ACLT to reduce the number of units provided from 4 to 3. ACLT purchased one property at 311 Hersey Street which was sold to a single mother earning less than 80%AMI utilizing $40,000 in CDBG funds. The remaining $80,000 is to be utilized to purchase a vacant parcel on Garfield Street to complete two new ownership units. As of the date of this publication an environmental review has been completed on the identified property and ACLT is anticipating purchasing the property (close of escrow) on September 30 2005. This property purchase will occur in the 2005 CDBG Program year. Rogue Valley Community Development Corporation (RVCDC) The RVCDC relocate three homes slated for demolition from Southern Oregon University to 290 Patterson, 321 Hersey and 311 Hersey St. The home on 311 Hersey eas purchased in part by ACLT and is reported above. The remaining two homes were not assisted with CDBG funds however were secured as affordable by the use of USDA Rural Development loans to the homebuyers, and the City deferral of System Development Charges. These two units were both sold to households earning less than 80%AMI for less than $146,744, nearly half the market rate of the homes today. The City executed Resale Restriction Agreements on the two properties, 290 Patterson Street, and 321 Hersey Street, on July 1, 2004. RVCDC received two prior CDBG awards which resulted in the acquisition of Property during the 2004 CDBG Program Year. Combined the two properties purchased will allow the development of 15 affordable ownership in cooperation with the USDA Rural Development Self Help Program. Homebuyers will contribute a significant amount of Ðsweat equityÑ to lower the ultimate purchase price to below $120,000 per unit. All units will be occupied by low-moderate income households and will remain affordable for a minimum of 20 years per the CDBG Subrecipient Agreement. However City of Ashland CDBG CAPER 2004 Page 5 RVCDC has indicated through their continued ownership of the land, the units will effectively be affordable in perpetuity. The two properties purchased for this scattered site development include 2001 Siskiyou Blvd, and 795 Park Street. The first site (2001 Siskiyou Blvd.) originally had a single family home on the ½ acre parcel which has been cleared in preparation for the development. The RVCDC has received planning approval for nine units on the property, the subdivision survey has been recorded, and the building permits are near issuance. Ashland provided RVCDC with $361,750 in CDBG funds to acquire the property for this phase of the development. This contribution was the complete purchase price for the property. The RVCDC received a SHOP grant award of $80,000 to provide pre-development costs as well as to contribute toward common area improvements. The individual homeowners (builders) will receive USDA 502 loans for the construction funds which provide low interest subsidy to further reduce the cost of the housing. Additionally the City awarded $13,800 in CDBG funds to be utilized toward public facility improvements (curb, gutter, sidewalks) within the street right of way on the properties frontage. The site is within a qualified low-income census tract, thus these sidewalk improvements will serve not just the residents of the affordable housing development, but the low-income neighbors as well. Construction for this property is expected to be completed in the 2005 CDBG program year thus the accomplishments of providing affordable units will be reported in that years CAPER. The second site, located at 795 Park Street was purchased by RVCDC for a total of $350,000 with $274,000 being provided by the CDBG Program. The remaining $76,000 in purchase price and additional closing costs was obtained through a loan from Rural Development Collaborative in the amount of $80,500. As with the previous site the RVCDC will be working with USDAÓs Self-Help Program to obtain low-interest construction loans for the home- owner/builders to develop the six units intended for this site. All units will be affordable to households earning less than 80% Area median income. The construction of these units is not expected to be completed until PY 2006 and thus the accomplishments of providing affordable units will be reported in that years CAPER. Affordable Housing Program The City currently provides a density bonus to developers who construct affordable rental and ownership units. The City also defers the system development charges for affordable rental and single family homes. The deferred system development charges become a "sleeping second" mortgage and are only activated if the home is sold outside the program, or the rents exceed the maximum rent limit set by HUD. The participants can earn up to 130 percent of median income (for ownership) however as many units that take advantage of the SDC deferral program are required to be affordable (due City of Ashland CDBG CAPER 2004 Page 6 to zone change and annexation requirements) they are typically targeted to homes selling, or renting, to households earning less than 80%AMI. A total of 55 households are currently participating in the program. During the 2004 program year four (4) new single family homes (311 &321 Hersey, 290 Patterson, 295 Mistletoe), and three (3) multifamily units (234 & 236 Grant St, 920 E Main), and one (1)Accessory Residential Unit (274 Nevada St.) entered into the program. Three participating single family units (245 E Nevada, 1126 Village Square Dr., 1332 left the program. In 2004-2005 the Ashland Housing Commission Millpond) has begun the process of revising the SDC deferral program in part to restrict or prohibit voluntary withdrawal from the Affordable Housing Program. The 18 month CDBG program year saw a net increase of five units enter the Affordable Housing Program (eight added, three exited). The deferred SDC amount on the newly added households totaled $39,916.44. Of the eight new units to enter the program only two can voluntarily exit the program by repaying the SDC amount plus interest. The remaining six all have deed restrictions requiring affordability for a period of 20 years or greater. No CDBG funds were used for the deferred SDC program, as the City of AshlandÓs general fund forgoes collection of the system development charge to assist in lowering the cost of the housing. This program is ongoing. Condominium Conversions The City allows conversion of existing apartments to ownership units only in cases where 25% of the units converted are affordable where the residents have first right of refusal. In the 18 month CDBG program year the City did not approve any condominium conversions. A four unit apartment complex on Beach Street was approved for conversion to a condominium in 2003, however the resale restriction covenants (deed restrictions) were not recorded until May 2004. Thus this condo-conversion technically added one (1) additional affordable unit to the city during the 2004 CDBG program year. A newly constructed development at 920 East Main was converted to condominiums immediately upon completion thereby requiring one of the four units to be affordable. This unit is rented (not owned) by a low income household but the Resale Restriction Agreement executed by the City establishes the unit as an affordable ownership, or rental, unit for a minimum of 20 years. In 2003 the City approved the convervion of a 10 unit apartment into condos (Park Place Condos) thereby adding three (3) affordable housing units for ownership. These units require a 20 year affordability period through a deed restriction on the property. The approval for this conversion occurred in 2003 however the final recording of documents did not take place until March of 2004. Given the 18 month 2004 CDBG Program Year these units were secured as affordable during this report period. th Further, on July 12 of 2005 a seven unit apartment complex was approved for conversion by the Planning Commission. The resulting two affordable City of Ashland CDBG CAPER 2004 Page 7 units will be ÐcreatedÑ, by the recording of deed restrictions establishing a 20 year affordability period, in the 2005 CDBG year and thus reported in the 2005 CAPER. Affordable Housing Action Plan The Affordable Housing Action Plan was adopted in October of 2002 outlining a number of strategies to address the housing needs of AshlandÓs low-moderate income residents. Specifically a number of strategies to eliminate or reduce regulatory barriers were recommended. One such strategy was to ensure efficient, high density, development within multifamily zones. To this end the Ashland Housing Commission developed a minimum density ordinance for consideration by the Ashland City Council which was approved in December 2004. This ordinance required that property be developed at a minimum of 80% the base density for the zone, thereby encouraging smaller units and high density to accommodate the need for rentals. The ordinance was in part a response to concerns over multifamily zoned land being consumed by single family ownership housing at the expense of multi-family housing stock. Another Strategy outlined in the Action Plan involved the development of the air-rights above City Owned parking lots with affordable housing. To this end the Housing Commission drafted a Request for Proposals to develop up to 10 affordable rental units above a small downtown parking lot as a pilot project. This RFP was issued by the City Council in December 2004 resulting in four th applications. On August 30 2005 the City Council selected one of the proposed development teams to create nine-ten workforce housing units targeted to households earning less than 80% Area Median Income. Total Affordable Ownership Units Added January 1, 2004 Î July 30 2005 During the 2004 CDBG program year Ashland increased its stock of new affordable ownership housing by eight units (five condominiums, three stand alone single family homes). Additionally 15 new ownership units are ÐunderwayÑ through the RVCDC Self-Help project but as they have not yet been constructed, they were not added to the inventory of affordable housing stock in 2004. City of Ashland CDBG CAPER 2004 Page 8 Goal 3: To maintain the existing affordable housing supply. Where possible, give funding priority to those projects that will provide benefits to residents with the lowest incomes. Also, give funding priority to those programs which retain the units as affordable in perpetuity, or recapture the rehabilitation costs for further use in Ashland. Ashland Community Land Trust The purpose of the land trust is to create and sustain long-term affordable housing in the city limits of Ashland for low and moderate-income families. The land trust acquires and holds land, while the improvements are sold or rented to the low-income residents. The ACLT accomplishments regarding new ownership housing are noted under Goal 1, and the accomplishments regarding new rental Housing are noted under Goal 2. In 2004 ACLT also completed the acquisition of an existing Duplex at 264 Grant Street to become affordable in perpetuity under the Land Trust model and therefore maintain two existing affordable rental units consistent with Goal 3. The Ashland Community Land Trust (ACLT) was awarded a total $285,000 in CDBG funds for the 2004 Program Year to purchase a property located at 264 Grant Street and provide minor rehabilitation work. The property is .22 acres in size and currently contains a single story structure containing two residential units (880sq.ft. each). The duplex remains occupied by one extremely low-income household (single person), and one household (retired couple) earning slightly more than 80% of area median income. As one unit of a duplex can be affordable and still be considered to meet the 51% low- mod benefit eligibility criteria, ACLT has kept the existing tenants in the duplex. Upon the voluntarily vacation of the medium income household ACLT will rent the vacated unit to a household earning less than 60%AMI per the agreement executed with the City. These units were acquired by ACLT for $271,000 in CDBG funds in June 2004, and the rehabilitation of the units was completed in August 2005 utilizing $14,000 in CDBG funds. Rehabilitation included a roof replacement, bathroom repair, wall and floor repair, cabinet repair, and interior and exterior paint. The original duplex was constructed in 1979 so no lead based paint issues were identified. As the rehabilitation was not completed during the 2004 CDBG Program year it will be reported in the 2005 CAPER. Consent to Annexation In the 2004 CDBG Program year the City Council approved the extension of services to a household outside the City Limits, but within the Urban Growth Boundary. The household had a failing septic system and water quality issues. Thus the extension of services was necessary for the household to remain in residence. The owner occupant of this household at 295 Mistletoe Rd, being low income, was unable to pay the necessary System Development Charges to connect to City Services and thus the City contributed $2,656.00 in SDC Deferrals to allow the household to obtain water and sewer services. City of Ashland CDBG CAPER 2004 Page 9 The Owner was required to execute a Resale Restriction Agreement indicating the unit would remain occupied by a low-income household for the period of the SDC Deferral (20 years) or the deferred amount is due with interest. Housing Commission The Housing Commission was established in 1995 to monitor the accomplishments of the City's housing program, to make recommendations to the City Council on housing policy, and to serve as an advocate for affordable housing in the City's political process. As mentioned above under ÐAffordable Housing Action planÑ the Housing Commission continues to delineate activities to address the retention and creation of affordable housing. These activities are further explained under Goal 13 of this CAPER. The Housing Commission also oversees specific affordable housing projects undertaken by the City in partnership with private groups, and non-profit organizations. The Housing Commission also fulfills the responsibility of reviewing the Community Development Block Grant program specifically to include reviewing all proposals for CDBG awards and providing recommendations to the City Council as to which project(s) best meet the intended goal of providing affordable housing. Federal CDBG and City of Ashland general funds are utilized for staff support. The Federal CDBG funds are part of the 20% yearly allocation used for CDBG program administration. Technical Assistance The City provided technical assistance to nonprofit organizations whose mission includes providing affordable housing. This technical assistance includes, when necessary, providing information on the CDBG program, City zoning regulations, educating agencies on the planning process and providing information on the City's affordable housing program including deferred systems development charges and density bonuses. The City also aims to direct potential affordable housing developers to other resources such as Rural Development programs and Oregon Housing and Community Services funding. The City of Ashland provided technical assistance through the Planning Division as requested and supported applications consistent with the Consolidated Plan. The City provided assistance to the Rogue Valley Community Development Corporation, Rogue Valley Habitat for Humanity, Ashland Community Land Trust, Fordyce Co-Housing Project, and the Housing Authority of Jackson County in preparing applications for their proposed developments during the 2004 CDBG program year. Federal CDBG and City of Ashland general funds utilized are for staff support. Twenty Percent of the yearly CDBG allocation ($51,200 in PY2004) is utilized for CDBG program administration. City of Ashland CDBG CAPER 2004 Page 10 Total Existing Affordable Units Retained January 1, 2004 Î July 30 2005 D uring the 2004 CDBG program year Ashland saw the retention of three existing affordable units. Two of these units were rentals (264 Grant Street Duplex), and one owner occupied unit was retained (295 Mistletoe). If it were not through the contribution of CDBG funs, or SDC deferrals and extension of services, all three of these units faced resale on the open market which would have likely displaced the existing households. The rental units are secured as affordable perpetually whereas the ownership unit is not secured in that although affordable now, the owner could pay off the SDC deferral to exit the program Goal 4: Encourage the development of emergency and transitional housing for homeless families with children and/or individuals. No CDBG funded actions were undertaken or completed during the 2004 program year that specifically applied CDBG funds toward the development of emergency or transitional housing. City Staff, the Housing Program Specialist, did participate with the planning body of the Jackson County Continuum of Care Homeless Task Force in an effort to examine homelessness regionally and develop strategies for providing transition from homelessness. Further the Housing Program Specialist assisted local homeless individuals, community members, and staff from the Oregon Department of Health and Human Services, in the development of an independent organization , the Ashland Homeless Alliance, whose mission includes development of emergency and transitional housing in Ashland. Goal 5: Support services for homelessness prevention and transition. Where possible, give funding priority to services that are part of a comprehensive approach that improves the living conditions of clients. Safety net services, or services that meet basic needs shall only be funded with CDBG dollars if it can be demonstrated that clients receiving those benefits are part of a program that will eventually help them obtain self-sufficiency. No actions were undertaken or completed during the 2004 program year that specifically directed CDBG funds toward services for the homeless. The City does allocate over $100,000 of general fund dollars each year in Social Service grants from the City General Fund. These Social Service grant allocations are listed under the Continuum of Care Narrative and included a grant of $25,000 to the Interfaith Care Community of Ashland (ICCA) to provide case management services to homeless individuals and families. This City of Ashland CDBG CAPER 2004 Page 11 grant addresses this goal while supporting ICCA, a member of the Jackson County Continuum of Care Consortium. Goal 6: To support housing and supportive services for people with special needs. People with special needs include the elderly, the frail elderly, persons with developmental disabilities, persons with physical disabilities, persons with severe mental illness, persons with alcohol or other drug dependencies and persons with HIV/AID or related illnesses. No specific CDBG Funded activities were identified in 2004 Action Plan to address this goal. However the City will continue to support the development of housing and supportive services for individual with special needs. The City allocates over $100,000 annually in ÐSocial Service GrantsÑ out of the CityÓs General Fund. Through this City Grant Program $115,400 was awarded to 18 agencies of which the majority specifically address supportive services for people with special needs. Most notably the Community Health Center was provided $30,000 to provide health care services, the Interfaith Care Community of Ashland (ICCA) was provided $25,000 to provide client services to homeless individuals, and Community Works was given a total $33,000 to provide services including rape crisis counseling as well as temporary shelter for victims of domestic violence. Additionally a grant of $2000 was provided to OnTrack Inc. to assist in the operating expenses for their drug abuse treatment programs. Agency and Program Name Amount Granted ACCESS, Inc (Housing) $5,000 CASA of Jackson County, Inc. (Housing) $2,500 Center for NonProfit Legal Services, Inc $5,000 Children's Dental Clinic of JC $1,750 Community Health Center $30,000 Community Works- Dunn House $19,000 Community Works- Help Line $8,000 Community Works- Parent Education $2,000 Community Works- Rape Crisis $2,700 Community Works- Personal Safety $1,300 ICCA (Homeless services) $25,000 JC Children's Advocacy Center $3,000 Mediation Works $2,400 Ontrack, Inc (Drug treatment) $2,000 Planned Parenthood of SW Oregon $1,750 RV Manor- Senior Volunteer $1,500 RV Manor- Foster Grandparent $1,000 SDS RVCOG Food & Friends $1,500 TOTAL GRANTED $115,400.00 City of Ashland CDBG CAPER 2004 Page 12 The City does not use CDBG funds made available for these activities during Program year 2004 instead using General Funds and reserving CDBG funds for affordable Housing projects (Goals 1-3). Goal 7: To provide safe and convenient access to alternative transportation routes in extremely low-, low- and moderate-income neighborhoods. In previous years the City had made a CDBG commitment to sidewalk improvements in moderate- and low-income neighborhoods by allocating ten percent of the total federal funding for sidewalk improvement and new construction annually in prior years. However the Ashland Consolidated Plan was revised to eliminate this 10% set-aside beginning with the 2002-2003 program year. This limitation on the allocation of CDBG was continued in the 2005-2009 Consolidated Plan further eliminating the potential to apply CDBG funds to sidewalk improvements exclusively based on qualified low0income neighborhood status. However an award of 13,8000 in CDBG funds was awarded to RVCDC to assist in the development of public sidewalks on their property frontage at 2001 Siskiyou Blvd in support of the affordable housing project approved for that site. This site is within a qualified Census tract, so this improvement expected to be completed in PY 2005 will improve access from the neighborhood to the adjoining transit line on Siskiyou Blvd. To support alternative transportation for all Ashland residents, including those in low-moderate income neighborhoods the City of Ashland contracts with Rogue Valley Transportation District (RVTD) to provide free bus service within the City. The City General Fund contributes $250,000 to RVTD in order to provide the no-cost fare. Goal 8: To make city facilities easier and safer to use for people with disabilities. The City did not utilize CDBG funds toward this goal in the 2004 program year. Goal 9: To affirmatively further fair housing. The City of Ashland sponsored an hour long live call in show on Rogue Valley Community Television (channels 9 & 31in Jackson County and channel 34 in Josephine County) on the rights afforded citizens under the Fair Housing Act. The City Housing Program Specialist (Brandon Goldman) interviewed Diane Hess, Education Coordinator of the Fair Housing Council of Oregon regarding housing discrimination, harassment and informed residents how they can learn more as well as seek help in the event they face discrimination. This shows aired a total of 12 times (four times each on City of Ashland CDBG CAPER 2004 Page 13 channels 9, 30 and in Josephine county channel 14) during the 2004 CDBG Program year reaching a cable subscriber base of 72,000 residents. This show continues to be re-run on RVTD over the course of the 2005 calendar year. A DVD recording of the show is included with this CAPER. The City of Ashland recognizes the importance of promoting fair housing and as such we are very pleased to have worked with FHCO to have had local tester trainings in 2004, and assist the education provided by the local cable broadcast. Additionally during 2004 the City also worked with FHCO and the Oregon Shakespeare Festival to utilize OSF's production of Raisin in the Sun to highlight discrimination in Oregon. This was accomplished through coordinated displays, direct mailings to OSFs subscriber base inviting them to a special performance and a community discussion on Housing Discrimination following the special performance of the play. Federal CDBG and City of Ashland general funds were utilized for staff support. The Federal CDBG funds allocated toward fair housing activities were part of the 20% yearly allocation identified for CDBG program administration. Goal 10: Assure activities assisted by the City are conducted in compliance with state and federal laws that apply to lead-based paint hazards, and the information distributed about lead-based paint is in compliance with current state and federal laws. The City did not plan to use funds made available for an activity addressing this goal during 2004. However as the development of three affordable units at Hersey and Patterson Streets involved relocating existing homes to the site, the City required the organization completing the rehabilitation of the homes (Rogue Valley Community Development Corporation) complete a lead hazard assessment, perform the appropriate work to remove the hazard and to have the final clearance provided to the City and prospective home buyers consistent with state and federal law. Ashland Community Land Trust purchased the properties for one of these homes as noted under Goal 2 above, with the remaining two homes sold as affordable to low0income households by the Rogue Valley Community Development Corporation. Through staff oversight on this project the City of Ashland did monitor the rehabilitation of these homes including lead based paint abatement and safe work practices, to ensure activities funded with CDBG were in compliance with state and federal law. Goal 11: To reduce the number of people living in poverty in the City of Ashland. The City did not use CDBG funds for a specific activity addressing this goal during the 2004 Program year other than through the efforts to promote City of Ashland CDBG CAPER 2004 Page 14 affordable housing. The City social service grants provided to Community Health Center ($30,000) and the Interfaith Care Community of Ashland ($25,000) were to provide direct benefits to impoverished residents and homeless individuals. Through improved health provided by the Community Health Center, or direct client counseling and case management provided by ICCA, the individuals receiving services have an increased ability to obtain self sufficiency. Goal 12: Promote and support activities in the community that improve or provide access to economic opportunities for extremely low- and low-income residents of Ashland. Although no CDBG funds were directed to address this goal, the City of Ashland granted numerous Economic Development Grants during the 2004 CDBG program year. 19 different organizations received awards, however the majority were granted to organizations supporting the arts (Ballet, theater, singers, etc.). A recipient organization that promoted activities in the community that improve or provide access to economic opportunities for extremely low- and low-income minority residents of Ashland included the Southern Oregon Economic Development Coalition that received $2000 to be directed toward assisting Native American economic development. Ashland also recognizes the increasing opportunities for low income residents to participate in home businesses, either as a proprietor of services, manufacturer of goods, or through employment at such small home occupations. Between July 1 2004 and June 30, 2005 the City issued 91 Home Occupation permits approaching its average 100 annual permits. Therefore in the CDBG program year the City issued approximately 140 Home Occupation Permits allowing incubator businesses, home based services, internet based businesses, and other such small, residentially compatible, business opportunities for Ashland Residents. Given the ability to work out of ones home, expenses typically required for securing commercial property are eliminated. No data is collected on the incomes of applicants for Home Occupation Permits so it can not be determined how effective this is at providing opportunities for low- or extremely-low income households. Goal 13: Remain aware of the barriers to affordable housing in Ashland, and where it is within the CityÓs ability, take steps to overcome such barriers. During FY2002-2003 the City of Ashland completed a Housing Needs Analysis and adopted an Affordable Housing Action Plan. This work effort was completed utilizing $32,000 in City general fund dollars and no CDBG City of Ashland CDBG CAPER 2004 Page 15 funds were allocated to this project. The City created a new full time staff position of "Housing Coordinator" to investigate and implement the recommendations of the Affordable Housing Action Plan. This position is partially funded out of the City General Fund and has been funded in part with Community Development Block Grant Funds to administer the CDBG Program. Through coordination with other agencies the City has been able focus more directly upon the barriers to affordability during 2004 both locally and regionally. Goal 14: To provide institutional structure and intergovernmental cooperation. During Program Year 2004 Staff supported the efforts of the Ashland Housing Commission to monitor the accomplishments of the CityÓs housing program, to make recommendations to the City Council on housing policy and to serve as an advocate for affordable housing in the CityÓs political process. The Commission also provided coordination and continuity to programs to meet housing and community development needs. The City of Ashland and the numerous organizations directly involved with providing affordable housing in our region interact in a number of ways. Through common memberships, periodic updates, and collaborative forums the City of AshlandÓs elected officials and the Ashland Housing Commission have been able to keep abreast of the myriad of activities underway related to housing. Specifically during the 2004 CDBG Program year Ashland completed a new Consolidated Plan for the Period 2005-2009. This effort entailed key interviews, direct one on one meeting and focus group meetings with elected and appointed officials, non-profit housing providers, the Housing Authority, City of Medford, and social service agencies within the region. Ashland has continued active participation in the Jackson County Housing Coalition attending nearly every meeting during the 2004 Program Year. The membership of the Jackson County Housing Coalition includes a substantial number of individuals that are elected officials of the Ashland City Council, as well as appointed representatives on the Ashland Housing Commission. These representatives, as well as City Staff, attend the meetings of the Jackson County Housing Coalition and are thus able represent Ashland, and to effectively convey the activities and objectives of the Coalition back to their respective governing bodies. This ensures a broader understanding and coordination with the activities undertaken by all participants of the Jackson County Housing Coalition. The Ashland Housing Commission oversees specific affordable housing projects undertaken by the City in partnership with private groups. The Commission promotes cooperation between local non-profit organizations and City of Ashland CDBG CAPER 2004 Page 16 governmental agencies for projects in Ashland to insure that the resources are used as efficiently as possible and that there are not duplication of efforts. The Housing Commission also reviews the proposals received for use of CDBG funds and provides award recommendations to the City Council. $51,200 in Federal CDBG funds (20% of the yearly allocation) was directed toward Administration of the CDBG Program during 2004. Administration of the CDBG program includes staff support of programs and projects that further the goals outlined in the 2000-2004 Consolidated Plan, provision of technical assistance, and the monitoring of the activities of sub-recipients. City of Ashland general funds are also utilized to contribute toward CDBG program administration as well as staff support of non-profit organizations and intergovernmental cooperation. B. Affirmatively Furthering Fair Housing Under Goal 9 above the CAPER reflects the activities undertaken in 2004 to address Fair Housing. Specifically in the 1996 Analysis of Impediments the lack of information regarding Fair Housing Law was seen as a key factor in discrimination. The workshops, training's, and video presentations attempt to rectify this impediment to ensure people understand both their rights and responsibilities under the law. C. Affordable Housing During the 2004 Program year the City saw the addition of eight new affordable ownership housing units to the City's inventory, with three pre- existing units exiting the program. Additionally one preexisting unit low- income occupied unit was preserved as affordable due to City extension of utilities and deferral of System Development Charges. This constitutes a net gain of six affordable ownership units. As noted previously an addition 15 units of affordable ownership housing were initiated in 2004 through the acquisition of two properties by RVCD with CDBG funds, however these units will not be occupied until the subsequent CDBG program years. The rental housing stock of affordable units was increased by nine new units and two additional units were retained as affordable due to CDBG funds being used to purchase and rehabilitate and existing duplex. The City of Ashland does not directly develop or manage affordable housing in Ashland. The City of Ashland has prioritized the provision of affordable housing to be the highest priority need in the Consolidated Plan. In doing so all competitively available CDBG funds (80% of the yearly allocation) were made available to sub-recipients with projects to retain or create affordable housing in PY2004. In doing so the City can ensure that the limited resources available are utilized effectively to address the need for affordable housing City of Ashland CDBG CAPER 2004 Page 17 (see goals 1,2,&3). However in future years (2005-2009) the new City Consolidated plan will make 15% of our annual CDBG allocation available to social services, specifically those addressing homelessness. The City currently does provide a density bonus to developers who construct affordable rental and ownership units. The City also defers the System Development Charges (SDCs) for affordable rental and single family homes so long as they remain ÐaffordableÑ. The maximum rent limit set by HUD can not be exceeded, nor can the housing units be sold outside the program, or the deferred SDCs will be activated. The funding source for this project is the City of AshlandÓs General fund foregoing collection of System Development Charges. During 2002 the City of Ashland completed and adopted a Housing Needs Analysis and an Affordable Housing Action Plan. This plan identifies strategies the City will implement to increase the development of affordable housing. One identified strategy involves modification to Ashland's Land Use Ordinance to the opportunities to develop single family uses on Multi Family zoned properties in an effort to encourage the needed housing type of apartments. The City Council adopted an ordinance establishing a Ðminimum densityÑ for multifamily zoned property in 2004. Although this ordinance will not directly create affordable housing, it should effectively limit the inefficient use of the limited stock of Multi-Family zoned Property. The inefficient use of such lands through the low density development of single family homes places upward price pressures on the remaining land without contributing to the supply of needed multifamily units. With the newly passed ordinance such properties must develop at 80% the base density established for the zones. D. Continuum of Care Narrative The City directs over $100,000 in general fund dollars to safety net services, homeless care providers, low income health care, and essential continuum of care services each year. In the 2003-2004 fiscal year the "Social Service Grants awarded totaled over $115,000 (table next page) Fiscal Year includes the first half of the CDBG 2004 Program year (Jan 1- June 30 2004). Given the relatively small size of the award requests, the use of the City's General Fund grant awards enables these non-profits to direct the award to services with a minimal amount of grant administration costs. City of Ashland CDBG CAPER 2004 Page 18 2003-2004 Social Service Grants - from City General Fund Agency and Program Name Amount Granted ACCESS, Inc (Housing) $5,000 CASA of Jackson County, Inc. (Housing) $2,500 Center for NonProfit Legal Services, Inc $5,000 Children's Dental Clinic of JC $1,750 Community Health Center $30,000 Community Works- Dunn House $19,000 Community Works- Help Line $8,000 Community Works- Parent Education $2,000 Community Works- Rape Crisis $2,700 Community Works- Personal Safety $1,300 ICCA (Homeless services) $25,000 JC Children's Advocacy Center $3,000 Mediation Works $2,400 Ontrack, Inc (Drug treatment) $2,000 Planned Parenthood of SW Oregon $1,750 RV Manor- Senior Volunteer $1,500 RV Manor- Foster Grandparent $1,000 SDS RVCOG Food & Friends $1,500 TOTAL GRANTED $115,400.00 The City of Ashland is a supportive participant in the Jackson County Community Services Consortium (JCCSC) which is comprised of numerous local non-profit and government agencies. The consortium is engaged in formulating and implementing long range strategies to provide a continuum of care to homeless individuals and families throughout Jackson County. It is our hope that the consortiumÓs plans will best address the full range of needs for the homeless of Jackson County and within Ashland specifically. The City of Ashland remains active on the Homeless Task Force arm of JCCSC. The Jackson County Community Services Consortium Homeless taskforce member that is directly active within Ashland implementing the countywide Continuum of Care strategies has been the Interfaith Care Community Association (ICCA). Although ICCA is an active member of the Continuum of Care Taskforce, they did not receive program implementation grant funds awarded by HUD to certain members of the Taskforce. The City supports ICCA through the award of a Social Service Grant out of the CityÓs General Fund. The City has consistently awarded approximately $10,000 per year for the continued operation of ICCAÓs Homeless services center at 144 N. Second Street , through the Social Service Grant program. In 2003-2004 ICCA was awarded $25,000 to further assist their activities in light of statewide funding shortages and was provided an additional $14,400 in City Funds in 2004-2005 spanning the 2004 CDBG Program Year. ICCA provides emergency housing vouchers and transitional foster homes for homeless families and individuals within Ashland. ICCA provides an ongoing program to assist individuals in finding permanent housing and employment through extensive client case work. City of Ashland CDBG CAPER 2004 Page 19 By supporting established non-profit organizations, such as ICCA, with the mission of providing housing and services for homeless, special needs, and low-moderate income individuals, the City of Ashland hopes to increase the quality of life for the population served. The City will maintain its role as a supportive partner and continue to stimulate new partnerships with non-profit and public agencies. The City of Ashland will continue to be a participant in the Jackson County Continuum of Care Consortium to ensure the strategies set forth in this planning process are implemented within Ashland by participating members of the taskforce. In the future, if the Continuum of Care goals and strategies are not being met in this manner, the City will consider other actions to accomplish Continuum of Care goals. E. Other Actions No specific actions were taken during 2004 that are not identified elsewhere in the Consolidated Annual Performance and Evaluation Report. F. Leveraging Resources While the City itself did not use CDBG funds to leverage other public and private resources, local non-profits have reported the CDBG funds to be essential in obtaining private donations and other public and private grants. During 2001-2002 the Ashland Community Land Trust was able to secure other grants totaling over $618,000 in part because of the local support for their project evidenced by an award of $75,000 in CDBG funds. This project was completed during the 2004 program with occupancy of the six-plex taking place in this report year. however this projects leverage was reported in 2002. During 2004 the CDBG funds awarded to RVCDC for acquisition of 2001 Siskiyou Blvd ($361,750) and 795 Park Street ($274,000) allowed RVCDC to obtain SHOP Funding for a USDA Self Help Project in the amount of $80,000 to assist RVCDC in completing their proposed projects. Additionally RVCDC received an award to utilize Youth-Build labor to accelerate the development of the project through an award through the Job Council. Lastly the home-buyer-builders have been qualified by USDA for section 502 Home loans at very low interest rates. These loans (between 1-3% interest) enable the homebuyers to pay considerably less in monthly mortgage payments thereby offering further subsidy to the project. For this project the City will contribute City of Ashland CDBG CAPER 2004 Page 20 approximately $6,000 per unit toward System Development Charges for a cumulative contribution of approximately $90,000. These SDCs are assessed at the time of issuance of a building permit and therefore will be reported in the 2005CDBG CAPER. G. Citizen Comments No comments have been received regarding the 2004 Action Plan or 2004 CAPER. The availability of the Consolidated Annual Performance and Evaluation Report (CAPER) for use of 2003 CDBG funds was advertised in the th September 16 2005, edition of the Ashland Daily Tidings (display advertisement enclosed) and was posted continuously on the City of th Ashland web site from September 16, 2005 through September 30, 2005 for public comment. Additionally the Housing Commission reviewed the th CAPER at their September 19 Regular meeting to obtain comments. (Number) comments had been received as of 3:00________. The 2004 CAPER document remains archived on the City website. H. Self Evaluation A. Impact of Activities on Identified Needs The City of Ashland Five-Year Consolidated Plan for 2000-2004 includes a list of 14 ÐGoalsÑ of the community. These goals demonstrate that the highest priority need is the provision of affordable housing. To this end, 80% of the yearly CDBG allocation is now directed to this highest priority need. Administration of the program uses the remaining 20%. Given that Ashland is a small-city with limited resources, it is highly unlikely that each of the fourteen identified goals can be addressed in any single program year. Furthermore, while Ashland experiences a broad range of needs similar to larger communities, the resources and services available to assist low- to moderate-income people in the Rogue Valley is limited and comparable to rural areas. Ashland is using an innovative approach to tackling the problem of providing affordable rental housing and home-ownership opportunities for low-income. One such way is the elimination of regulatory barriers, or the imposition on new regulations that promote affordable housing. Specifically the City established criteria for a zone-change (from low to high density) or annexations that require a percentage of affordable housing as part of the development. In April 2005 the City Council approved one such zone change from single family to multifamily to allow a co-housing project to be developed. Although all the units of the Co- Housing development are intended to be available at less than market rate, City of Ashland CDBG CAPER 2004 Page 21 two of the units are specifically targeted to households earning less than 60%AMI to meet the zone-change criteria. The developer intends to work with Habitat for Humanity to develop the affordable units. In PY 2004 the City also passed a minimum density ordinance in an effort to promote the development of needed rental units in multi-family zones. Ashland continues to offer System Development Charge deferrals for new units affordable to low-moderate income households thereby reducing development costs for affordable housing projects. However, as housing costs in Ashland continue to rise, the incentive provided by the deferral of System Development Charges may not be substantial enough in and of itself to retain the affordable housing stock. As such the Housing Commission has undertaken the task of examining the SDC deferral program to ensure retention of affordable housing and ultimately create more affordable housing in Ashland (See Goal 12). In 1990, the City amended the local land use ordinance to allow ÐAccessory Residential UnitsÑ, an apartment or cottage in addition to the primary residence, as a conditional use in single family residential zones. This was done in an attempt to create additional, ÐaffordableÑ rental units. Since 1990, 99 units have been made legal or newly constructed through the conditional use permit process. While it is clear the program has added rental units to the market, with the exception of the Accessory Residential unit mentioned under Goal 1, the accessory residential units are not typically limited by any income qualifications. However, due to the size limitations set for Accessory Residential Units (a maximum of half the size of the primary house or 1000 sq.ft Î which ever is less) they typically can not command the same market rental prices as Ðfull sizeÑ residential units. Additionally the City considers units of less than 500sq.ft. to be only 3/4 of a unit. This designation reduces System Development Charges, and parking requirements. Therefore the majority of new Accessory Units developed are less than 500sq.ft. in size. Another Priority Need which has been difficult to address is assisting individuals in the transition from being homeless to a permanent housing situation. Local non-profit agencies, which provide assistance and homeless prevention services, report that the population of homeless individuals in Ashland in the Rogue Valley is rapidly increasing. These providers had been unable to keep up with demand for their current level of services, and thus a $25,000 City general fund grant was awarded to Interfaith Care Community of Ashland to assist individuals in locating shelter. City of Ashland CDBG CAPER 2004 Page 22 B. Barriers to Fulfilling Strategies The most obvious barrier to addressing the Priority Needs of the Five- Year Consolidated Plan is a lack of resources and the rapidly increasing market rate of property. Property value increases in Ashland continue to outpace the State, and Jackson County. Property values have on average increased atover 20% annually over the last 5 years resulting whereas incomes increase at less than 3%.The Ashland median home cost was $285,300 and in 2004 the median home in Ashland sold for $334,500. This represents an appreciation of 17% in a single year. Jackson County currently has approximately 181,269 residents with 20,590 of those people living within the Ashland city limits. The Medford-Ashland area has been picked recently as one of the twenty-two Ðmagnet marketsÑ in the nation, defined as having a high diversity quotient, a large senior population, and expected to grow the fastest over the next 25 years. If this is the case, the county would increase to 226,198 1 by 2010, a 24% growth rate in ten years.As stated earlier, even though the population is much smaller than many of the counties in Oregon, a similar range of social services and community needs are in demand. Particularly with an increasing retiree population demaind for senior services will continue to increase. These needs are for the most part provided by local non-profit agencies. The non-profit agencies face multiple barriers in obtaining funding. Since there is a small population, direct resources from the area are limited. This negatively affects the ability of local non-profits to leverage local funds to obtain grants. The tough competition for dollars in an area with limited population and a wide geographic range has resulted in only the most efficiently managed non-profits being able to survive. While on the surface this seems like a beneficial outcome, the real result is that less services are provided by fewer, and expansions of service are rare. Staff turn-over at the agencies is high. Attracting the highly skilled personnel needed to manage the non- profits is difficult given the highly constrained communities, demanding nature of the work, low salaries and high living costs. C. Improvements A coordination improvement to the CDBG Program completed in the reporting period was the adjustment of the CDBG program year to match the CityÓs Fiscal Year. Although this may appear to be an insignificant improvement the result will be to streamline the award process and accounting process to match the City Fiscal Year. It was this one-time adjustment in the CDBG program year that resulted in the 18 month 1 Oregon Employment Department, , 2004. City of Ashland CDBG CAPER 2004 Page 23 period covered in this CAPER. However in future years the reporting period will be consistent with the City Fiscal Year (July 1 Î June 30). The City of Ashland ranked the Priority Needs of the Five-Year Consolidated Plan for 2000-2004 to help address the limited resources available for social services and community needs in the Rogue Valley. Specifically this ranking directs the majority of available CDBG funds to the highest priority need, the provision of affordable housing. The City has been very concerned about the significant delays by subrecipients in identifying suitable property. The timely expenditure of funds is essential to the success of the CDBG program therefore it is imperative that all activities are completed, and funds expended, in the program year for which the award is made. To this end the City requires sub-recipient agreements to include timing schedule to require the actions be completed within a set timeframe. Additionally initiation target dates are noted in the award of CDBG funds to ensure if a project is not initiated in a timely fashion the funds can be immediately reallocated to an eligible use Furthermore, at the initial Request for Proposals for use of CDBG the City of Ashland will request applications for acquisition of property include a letter of support from the property owner of the identified property. The 2005-2009 Consolidated plan was developed during the 2004 program year. Information gathered for the 2002 Housing Needs Analysis, and data compiled in conjunction with the development of the 2005-2009 Consolidated Plan will be of assistance in potentially refining the goals to better reflect the needs of the community. This Plan retained the primary strategies and emphasis on affordable housing, however as it was found that homeless needs were also of high priority the City re-established the use of 15% of the CDBG allocation to be available to serve their needs. This improvement in our distribution of CDBG funds should not only provide needed services for an underserved population (homeless), but will more effectively utilize CDBG funds in a timely manner. A coordination improvement to the CDBG Program the City adjusted the CDBG program year to match the CityÓs Fiscal Year. This was done for ease in reporting as well as to streamline the award process and accounting process to match the City FY. It was this one-time adjustment in the CDBG program year that resulted in the 18 month period covered in this CAPER. However in future years the reporting period will be consistent with the City Fiscal Year (July 1 Î June 30). City of Ashland CDBG CAPER 2004 Page 24 Section 2 A. Consolidated Plan Priorities See Section 1.A for full description of Priority Needs and projects completed in 2004 addressing those Priority Needs. B. Changes in Program Objectives There were no changes in program objectives in 2004. City of Ashland CDBG CAPER 2004 Page 25 C. Action Plan for 2004 The activities undertaken as described in the Consolidated Annual Performance and Evaluation Report (CAPER) were consistent with the 2000-2004 Consolidated Plan, the Action Plan for 2004, or in previously identified Action Plans (2001-2003). CDBG Funded Projects undertaken during Program Year 2004 Project ID Recipient Activity Location CDBG # Households or Organization Name Funds Persons Assisted Annually 1 City of Ashland CDBG city wide $51,200 city wide Administration 2 Ashland ACLT Duplex Ashland city $271,000 Purchase of a duplex Community purchase limits at 264 Grant Street. Land Trust 264 Grant COMPLETED Street 3 Ashland ACLT Duplex Ashland city $14,000 Rehabilitation/weathe Community rehabilitation limits rization of a duplex at Land Trust 264 Grant Street. 264 Grant Street COMPLETED 5 City of Ashland Accessibility Accessibility $16,841 853 mobility impaired Improvements Improvements citizens to Pioneer COMPLETED Hall (reported in 2003 restrooms CAPER) COMPLETED (reported in 2003 CAPER) CDBG Funded Projects from prior Program Years 2001- Ashland ACLT Hersey Ashland city $120,000 Purchase of three lots modified Community Street limits upon which three in 2003 Land Trust purchase single family homes 3 lots at are to be purchased Hersey and by low-income Patterson households Streets Completed purchase of one Property ($40,000), Property for two remaining units to be Purchased in October 2005 2002-1 Rogue Valley RVCDC Land Ashland city $361,750 Creation of 8-10 Community Acquisition limits affordable one two, (includes the Development and three-bedroom (2001 $193,000 awarded in Corporation ownership units Siskiyou Blvd) 2003 and the (RVCDC) through the USDA reprogramming of the Self Help Program $168,750 allocated in 2002) Completed Purchase of Property, Planning Approval, Survey Recorded. Construction set to begin in October 2005. Contribute toward the 2002-2 Rogue Valley RVCDC Ashland city $13,800 public facility Community limits Public Facility improvements within Development Improvements (2001 the Siskiyou and Corporation Siskiyou Blvd) Faith Street rights of (RVCDC) way (sidewalk, utilities, curb-gutter, street trees, etc). PENDING City of Ashland CDBG CAPER 2004 Page 26 D. National Objectives The projects initiated and/or completed during 2004 met the National Objectives. E. Displacement The Rogue Valley Community Development Corporation's (RVCDC) acquisition of 2001 Siskiyou Blvd. necessitated the displacement of a household that moved into the existing single family home after the negotiations for purchase had been initiated. Although the household moved before the acquisition took place it was City staffs determination that they were still eligible for relocation assistance. Right-of-Way Inc. was hired to complete a relocation plan and find the displaced household. It was found that the household had already found a comparable unit for less rent than they were previously paying, however it was determined that they were entitled to relocation assistance. This assistance totaled $1015 for moving costs. Opportunity existed to inform the household of the pending CDBG funded project before they moved into 2001 Siskiyou Blvd. As no notice was provided RVCDC paid this relocation benefit to the displaced individual. The City will continue to ensure all relocation benefits are provided households displaced by CDBG or City funded activites. F. Economic Development With the exception of Economic Development grants (See Goal 12), no economic development activities were undertaken during 2004. City of Ashland CDBG CAPER 2004 Page 27