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HomeMy WebLinkAbout2009-08-27 Housing PACKET Ashland Housing Commission Regular Meeting Agenda th Thursday August 27 2009: 4:30 – 6:30pm Community Development Building - 51 Winburn Way 1. (4:30) Approval of Minutes (5 min) rd 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. th 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) thst Sept. 8, 2009 7PM City Council Meeting-HC Ordinance 1 Reading nd,nd Sept. 22 2009 7PM City Council Meeting-HC Ordinance 2 Reading Next Housing Commission Regular Meeting th 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). ASHLAND HOUSING COMMISSION MINUTES July 23, 2009 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 th 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 th 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 th. 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. ASHLAND HOUSING COMMISSION 1 MINUTES July 23, 2009 th 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. th 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 th 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 ASHLAND HOUSING COMMISSION 2 MINUTES July 23, 2009 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. TH 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 thst August 4 2009 7PM City Council Meeting – HC Ordinance 1 Reading nd 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 ASHLAND HOUSING COMMISSION 3 MINUTES July 23, 2009 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. HP CIF – 12/12/07 3 of 3