HomeMy WebLinkAbout2009-08-27 Housing PACKET
Ashland Housing Commission
Regular Meeting Agenda
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Thursday August 27 2009: 4:30 – 6:30pm
Community Development Building - 51 Winburn Way
1. (4:30) Approval of Minutes (5 min)
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July 23 2009, regular meeting Minutes
2. (4:35) Farewell to Commissioner Smith and SOU Liaison Amoratico (5 min)
3. (4:40) Public Forum (5 min)
4.(4:45)Sub-committee Reports (25 min)
Subcommittee Reports Liaison Reports
Finance (8-11-09) Council (Voisin)
Education (none) Parks Commission(Hauck)
Land Use (none) School Board(Frost)
Planning Commission(Benjamin)
SOU(Amoratico)
Staff(Linda Reid)
Croman (Lewis)
5.(5.10)Vice Chair Election (5 min)
Nomination, Voting, Motion
6.(5:15)Homeless Liaison Report–Goal# 6(25 min)
Graham Lewis and Nick Frost
7.(5:40)Fair Housing Discussion-Goals # 4 & 8 (30 min)
Review of Fair Housing Council Suggestions
Discussion
8.(6:10)Expiring Use Units Update- Goal # 3(10 min)
Overview of items requested from July meeting.
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9.(5:20)September 24 2009 MeetingAgenda Items (5 min)
Commissioner items suggested(5 min)
Quorum Check – Commissioners not available to attend upcoming regular meetings
should declare their expected absence.
10.(6.25)Upcoming Events and Meetings (5 min)
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Sept. 8, 2009 7PM City Council Meeting-HC Ordinance 1 Reading
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Sept. 22 2009 7PM City Council Meeting-HC Ordinance 2 Reading
Next Housing Commission Regular Meeting
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4:30-6:30 PM; Thursday September 24 2009 Community Development Building
10. (6:30) Adjournment
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the
Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 hours prior to the meeting will
enable the City to make reasonable arrangements to ensure accessibility to the meeting(28 CFR 35.102-35.104 ADA Title 1).
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CALL TO ORDER
Chair Steve Hauck called the meeting to order at 4:33 p.m. at the Community Development and Engineering Services
Building, 51 Winburn Way, Ashland, OR 97520.
Commissioners Present: SOU Liaison: Alex Amarotico, Absent
Steve Hauck, Chair
Richard Billin Council Liaison: Carol Voisin
Nick Frost
Aaron Benjamin Staff Present::
Regina Ayars Linda Reid, Housing Specialist
Bill Smith Carolyn Schwendener, Account Clerk
Commissioners Absent:
Graham Lewis
APPROVAL OF MINUTES
The minutes of the June 25, 2009 regular meeting were approved.
PUBLIC FORUM
No one came forth to speak.
REPORTS AND UPDATES
Subcommittee Report
Finance – None
Education - None
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Land Use – Ayars distributed her minutes. At the July 16 meeting guest speaker Tom Bradley from the Ashland
Community Land Trust (ACLT) was present. Mr. Bradley was there to talk about the Clay Street property and to help
develop the criteria for the additional lands that the Housing Commission will be focusing on. Individuals of the
Board of Directors on the ACLT are interested in working with the Housing Commission to assist in the development
of a Request for Proposal for the Clay Street project. The committee discussed the time frame for the RFP and it was
decided that after the November election they would start working with people to create the criteria and try to issue
the RFP by the first part December.
Liaison Reports
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Council - Voisin reported that the City Council passed the budget on June 25 resulting in an increase in property
taxes. The Council spent a lot of time working on the meals tax. The first reading passed and the second reading will
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be August 4The meals tax will be a ballot measure. The Council is continuing to work on the Riparian Ordinance.
The Croman site is still under review in the Planning Commission and has not yet come before the Council. Ayars
requested that the Housing Commission add Graham Lewis to the liaison reports for the next few months in order to
give reports on the Croman site. Ayars who attended the last meeting said they kept referencing a Housing Overlay
though the primary objective is employment. The housing overlay may allow for housing to be above commercial.
Voisin said that the SOU Master Plan is primarily dealing with housing and will be going to Council the first meeting
in September.
Parks – None
School Board – Frost reported that the school district is on track for opening Bellview School in time for the coming
school year.
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Planning – Benjamin reported that the Planning Commission meeting on July 14 was dominated by questions
regarding the SOU Master Plan. The meeting had a large turn out with a great deal of neighbors concerned about
faculty housing. Community members felt the faculty housing should not be built in a concentrated neighborhood.
Marilyn Briggs, former Housing Commissioner, raised that particular objection. Many people felt that housing should
be incorporated into the community. A suggestion was made that the new plan before going into effect should take
into consideration traffic concerns, traffic circulation and mainly concentrate on pedestrian movement in that area.
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The Planning Commission will make their discussion at the August 11 meeting.
SOU- none
Staff – Reid said she was asked to be on a steering committee for a Home Owner Preservation Event. It’s essentially
a group of people headed by the Southern Oregon Housing Resource Center that serves all of Jackson and Josephine
County with various housing needs. Home owners are having difficulty contacting the servicers of their loans to get
loan modifications or to properly handle the foreclosures. This event is partly being organized by the Oregon
Department of Consumer and Business Services partnering with the Federal Reserve Bank of San Francisco. The
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event will take place Saturday October 17at the new SOU RCC Higher Education Center. Reid will keep everyone
posted as she will be looking for volunteers to help facilitate the flow of people.
COUNCIL GOALS OVERVIEW PRESENTATION
Voisin said that at the City Council’s retreat they discussed what their goals, values, and vision statement should be for the City of Ashland.
Voisin gave a power point presentation discussing these topics with the Commissioners.
Goals
Sustainability
Economy
Environment
Social Equity
Organization
Public Facilities
Partnerships
Values
Good Government
Natural Environment
Responsible Land Use
Free Expression
Diversity
Economy
Independence
Personal Well Being
Sense of community
Vision
A beautiful small town that is safe and welcoming
Voisin said the next step is for the Commissioners to provide input to the Council on the goals, values, and vision. Are the goals important?
Have we captured the values for this community? Is the vision for the future of Ashland accurate? She asked the Commissioners to
complete the feedback forms and return them by the end of September.
PRESERVATION OF VULNERABLE PROPERTIES DISCUSSION
The Commissioners would like to know some basic data. When are all these units going to expire? What are the resources that are
available for preservation? What can we do as a commission to help stop these from going out of affordability?
Reid explained that three units included in the report are Rural Development (RD) assisted units. Their loans either have been repaid or are
near to being repaid. Once their loans have been repaid they can either sell them on the private market or they can sell them to another non
profit or affordable housing developer and continue with RD subsidy. Reid has a call in to RD to find when these loans will be repaid.
Reid said the section eight properties are called expiring use units. They also had loans but these loans were through the Department of
Housing and Urban Development (HUD). These loans were typically for a period of between 30 and 40 years and each property
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owner/developer signed a contract which mandated that the property remain affordable for a period of time or until the loan was repaid.
Several properties financed this way are at the end of their affordability periods. Like the Rural Development properties when the contracts
run out these properties they can be sold on the market and go out of affordability or the current owner’s can renew their HUD contracts and
remain affordable or they can be sold to an affordable housing provider and remain affordable. All or most of these properties receive HUD
subsidies for rental costs.
The Johnston Manor Senior project already expired. Medford BetterHousing did opt out of their contract. Section eight units are sometimes
also known as “Project Based Vouchers” meaning that the units themselves are subsidized and anyone who lives in the unit receives that
subsidy. When a subsidized unit expires the person living in the unit at the time of expiration is given a voucher which they can use
anywhere in the country. This could create a net loss of affordability for us as the people may not stay here.
Reid gave an update of the Stratford affordable housing units. It is in the process of being purchased by Chrisman Development. They are
looking at getting funding through Rural Development to preserve this project. As part of their preservation efforts they will receive additional
RD resources and it will be 100 percent rental assisted. This will be a net gain of 34 assisted units for the City. Reid sees the Housing
Commissions role would be to keep an eye on these properties and be aware of what’s going on with them and then put the word out. The
commission asked Reid to develop an organization resource list
The Commissioners decided that they would continue to gather information; including creating a list of potential organizations that could be
interested in preserving these units as affordable. They would also like to discuss how to develop a plan of action and see if there are any
incentives that are available to potential affordable housing developers. The commissioners felt that it might be a good idea to visit these
properties.
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AUGUST 27 2009 MEETING AGENDA ITEMS
Larry Blake may be present to review the SOU Master Plan
Housing Authority will be having an open house for new apartment complex they built in Central Point called Scenic Heights. Sometime in
late August or early September. Snowberry Brook will be very similar in appearance to the Scenic Heights project. Schedule a field trip.
Homeless discussion
Strategy for Fair Housing
Quorum check – Everyone will be present
UPCOMING EVENTS AND MEETINGS
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August 4 2009 7PM City Council Meeting – HC Ordinance 1 Reading
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August 18, 2009 7PM City Council Meeting-HC Ordinance 2 Reading
Next Housing Commission Regular Meeting
4:30-6:30 PM; Thursday August 27th, 2009 Community Development Building
ADJOURNMENT – The meeting was adjourned at 6:20 p.m.
Respectfully submitted by,
Carolyn Schwendener, Account Clerk
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Housing Commission Memo
TO: Housing Commission
Title:Fair Housing Council of Oregon Suggestions
Date: August 27 2009
Submitted By: Linda Reid Housing Program Specialist
See attached list of Fair Housing Suggestions; “Impediments and Proposed Solutions”.
Housing Commission Memo
Title:Preservation of Expiring Use Units-HC Goal # 3
Date: August 27, 2009
Submitted By: Linda Reid, Housing Program Specialist
Resources/Options for Funding
City of Ashland
CDBG:CDBG funding can be used for acquisition or for Rehabilitation of Expiring Use units
so long as they remain affordable to renters or homeowners making 80% AMI.
Affordable Housing Trust Fund:For profit and non-profit developers could utilize AHTF
grants to help with both purchase and rehab of Expiring Use units.
Conservation Department Rebates:For profit, non-profit and the current owners of these units
can qualify for energy efficiency and weatherization upgrades through the Conservation
Department’s rebate and incentive programs.
State-OHCS
Financing-Multifamily Loan Programs
o Elderly & Disabled Loan Program
The Elderly and Disabled (E & D) Loan Program provides below-market interest rate
permanent mortgage loans by issuing pooled tax-exempt bond financing for affordable
multi-unit rental housing projects. Borrowers may apply for this loan for construction of
new affordable housing or for acquisition and/or rehabilitation of existing properties. Pass
through Revenue Bond financing
o Loan Guarantee Program and General (Lease) Guarantee Program
The Programs provide guarantees to lenders to assist in the financing of new housing
construction or for the acquisition and/or rehabilitation of existing housing for low- and
very low-income families. Guarantees may be up to 25 percent of the original principal
amount of a loan.
o Pass-Through Revenue Bond Financing Program (Conduit)
The Program provides tax-exempt bond funds to finance the construction, rehabilitation
and acquisition of multi-unit affordable housing for lower-income Oregonians while
providing sufficient safeguards to protect the financial interest of the bond issuer. The
program provides additional flexibility in the loan structure and providing an efficient
process for underwriting and loan approval.
o Predevelopment Loan Program and Habitat Predevelopment Loan Program
The Programs provide below market financing and flexible terms for site acquisition and
predevelopment costs. Eligible predevelopment cost may include architectural design,
site acquisition, legal fees, market analysis, appraisals, soil and environmental reports,
etc.
o Risk Sharing Loan Program
The Program provides below-market interest rate permanent mortgage loans by issuing
pooled tax-exempt bond financing for affordable multifamily rental housing projects. The
Department and HUD share the loan risk and through HUD's FHA mortgage insurance
program the bond funds receive a AAA credit enhancement.
o Housing Preservation Community Incentive Fund
The HP CIF Program is designed to provide the financial incentive or the gap financing
that will help local communities meet one or more of the Oregon Livability Initiatives. It
is anticipated projects will primarily meet the affordable housing initiative but may also
meet other initiatives as well. The fund is not intended to replace other project financing
from private or public sources. Funds are available only for the preservation of the
department's current loan portfolio of affordable housing developments that are secured
with Section 8 project-based rental assistance.(see attached)
Grants and Tax Credits (CFC Programs):
Alcohol and Drug Free Housing
HELP Program
HOME Investment Partnerships Program
Housing Development Grant ("Trust Fund")
Housing PLUS Program
Low Income Housing Tax Credit
Low Income Weatherization Program
Oregon Affordable Housing Tax Credit
Federal
Financing
o Rural Development: USDA’s department of Rural Development (RD) offers several
different financing programs for developers providing affordable housing including
Section 533 Housing Preservation Grants, Section 514, 515, and 516 Multi-family
Housing Revitalization Demonstration Program (MPR) loans specifically for the
preservation of affordable rental projects. .
o The Department of Housing and Urban Development: HUD offers several different
financing programs for developers providing affordable housing.
Affordable Housing Developers/Organizations
o Lovelace Properties, LLC-Bill Lovelace
o Southern Oregon Affordable Rentals I, LLC-Mark S. Kellenbeck
o Housing Authority of Jackson County-Scott Foster
o ACCESS,Inc.-Cindy Dyer
o ACLT-Tom Bradley
o RVCDC-John Wheeler
Other Resources or incentives? What can the Housing Commission do to Help?
Oregon Housing and Community Services
725 Summer NE Ste. B, Salem, OR 97301
Housing Preservation Community Incentive Fund Overview
The Community Incentive Fund Advisory Board (the
Background
Board) has approved program guidelines to provide
The Community Development Incentive Project Fund
policy direction for the use of the Fund. The Fund is
(Community Incentive Fund) as established by ORS
administered by Oregon Housing and Community
458.705 through 458.740 as one part of the “Oregon
Services (OHCS).
Livability Initiative”. All proposed projects must
meet one of the requirements of 458.725 which are:
Amount of Financing
(1)Promoting affordable housing development near
Funds are capitalized through the state’s issuance of
jobs and transportation; (2) Revitalizing downtowns
lottery revenue bonds. Statewide, $3.8 millionwill
and community centers; and (3) Rebuilding rural and
be made available in the form of low interest loans
distressed economies. This current round of the
and grants.
Housing Preservation Community Incentive Fund
(HP CIF) is designed to provide financing to help
Eligible Applicants
affordable housing developments secured with
Eligible applicants are owners of projects in the
Section 8 project-based rental assistance, and meet
department’s current loan portfolio of affordable
the spirit of the second of Governor Ted
housing developments that are secured with Section 8
Kulongoski’s “six principles” that encompass his
project-based rental assistance, as well as those
long-term vision for a prosperous Oregon.
seeking to purchase said projects.
Children’s educational needs are met and adults
have lifelong opportunities to develop career
Eligible Projects
skills through post-secondary education, ongoing
The Housing Preservation Community Incentive
training and professional development
Fund will be used as ‘gap’ financing for projects
Oregon’s most vulnerable have their basic
acquired by new owners or assist owners who wish
health, food and shelter needs met.
to remain in the HUD Section 8 program and would
Oregon has a positive business climate and
like to rehabilitate the property and retain the
invests in economic development in order to
affordability of the property. It is the department’s
create and retain sustainable businesses and
expectation that owners would work with HUD and
family-wage jobs.
extend their rental assistance for up to 20 years
Oregon has a healthy balance between growth,
beyond the current expiration.
infrastructure development and environmental
protection.
Program Thresholds
Oregonians are safe in their homes, communities
To be eligible for funding, proposals must meet the
and in the state institutions.
following threshold criteria:
State government is stable, responsive and
Projects must demonstrate achievement of
accountable to Oregonians.
meeting the spirit of the “six principles “ (noted
For the remainder of this document these six
above under Background);
statements will be referred to as the “six principles”
Projects must demonstrate financial feasibility
and soundness.
The 2007 Legislature approved $3.8 million in HP
Benefited property owners must show
CIF to support the preservation of the department’s
investment or equity in the project;
current loan portfolio of affordable housing
Projects must be in compliance with local (city
developments that are secured with Section 8 project-
or county) comprehensive plans and land use
based rental assistance. The HP CIF is not intended
ordinances, or other regional or local plans (e.g.
to replace other project financing from private or
downtown planning documents, renewal plans,
public sources. It is intended to be a flexible resource
enterprise zone plans or similar plans);
that preserves existing affordable housing. "But for"
Project sponsors must demonstrate capability to
the investment of Community Incentive Fund
implement and complete the project. To fulfill
monies, the project will not be retained as affordable
this criteria, capacity may be provided by outside
housing, one of the objectives of the six principles.
consultants or developers; and
HP CIF – 12/12/07 1 of 3
The project must be locally supported and serve
Specific Requirements for Owners
to further the community’s goals related to
Acquiring Properties
economic vitality and growth.
A) Funds will be granted for capitalization of project
cost unable to be borne by the project operating
General Requirements
income and unable to be paid by other grants or loans
The Preservation Program will provide loans or
available for the acquisition and rehabilitation
grants to OHCS financed projects which:
financing. Verification of project needs to be
Have renewed or expiring Section 8 HAP
determined by OHCS staff underwriting.
contracts.
B) Owners must request a 20-year contract extension
Have no mortgage insurance from any other state
with HUD. If unsuccessful in receiving an initial 20-
or federal agency.
year extension, owners must request a contract
Have owners which wish to continue ownership
renewal at expiration of each contract for a minimum
and renew Section 8 HAP contracts.
of 20 years.
Property improvements will assure continued
C) Grants made available will be the minimum
sound, safe and decent housing supported by a
required to meet the financing gap while providing
Section 8 contract renewal.
adequate rehabilitation and meeting underwriting
Have been in financial and operational standards established by OHCS. Maximum grant
compliance with the Department on the existing
limited to $400,000 per project.
Section 8 mortgage.
D) Project Use Agreement for program compliance
shall be executed with 30 year term.
If owner voluntarily withdraws from HUD
Specific Requirements for Existing
Section 8 HAP contract at any time after OHCS
Owners with Renewed Contracts
grant is made, grant principle and accrued
A) Funds will be loaned for work needed to assure
interest at 6% from date of grant closing to date
continued safe and decent housing supported by the
of program withdrawal is immediately due in
renewal of a Section 8 HAP contract.
full. No penalty is anticipated if HUD
B) Owners must request a 20-year contract extension
appropriation for the Section 8 HAP program
with HUD. If unsuccessful in receiving an initial 20
ceases to exist.
year extension, owners must request a contract
renewal at expiration of each contract for a minimum
Prior to Application
of 20 years.
Applicants must contact the Oregon Housing and
C) Loan term and other conditions can be adjusted
Community Services staff to discuss the proposal.
by OHCS to assure unit affordability.
D) Loan amount available will be the minimum
Application Review Process
required while meeting underwriting standards
Staff will review the application to determine the
established by OHCS. Maximum loan amount
best combination of funding sources and
available is $400,000 per project.
configuration of loans or grants.
E) Interest rate will be 2 percent with a maximum
loan term of 20 years.
Propose project summaries with comments and
F) Loan payments (principle and interest) are
recommended conditions of award will be forwarded
deferred until existing mortgage obligations with
to the Advisory Board for review.
OHCS are successfully discharged.
G) There is no prepayment penalty on the loan as
The Board makes funding recommendations to the
long as the owner remains in compliance with loan
OHCS Director who will make the final decision.
conditions and terms.
If owner voluntarily withdraws from HUD
Applicant’s who receive a HP CIF funding
Section 8 HAP contract at any time after OHCS
reservation will need to submit additional materials,
loan is made, principle and accrued interest are
meet conditions of reservation and fulfill specific
immediately due in full. A fixed penalty of 10
project milestones and timelines. Failure to meet the
percent on the outstanding principle balance will
conditions and time lines may result in termination of
also be assessed.
the funds. Applicants who receive a reservation
No penalty is anticipated if HUD appropriation
should not expect to drawdown funds until all
for the Section 8 HAP program ceases to exist.
required materials for funding commitment and
satisfaction of conditions of reservation have been
submitted. Release of any HP CIF prior to
submission and approval of additional materials will
be subject to OHCS approval.
HP CIF – 12/12/07 2 of 3
DISCLAIMERAward of HP CIF grants, or HP CIF loans at below market interest rates, may
pose financial consequences for applicants, especially for-profit entities. Applicants should
discuss all tax implications with a professional tax advisor.
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