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Home My WebLink About10.11.16 Meeting NotesCity of Wilmington /New Hanover County Workforce /Affordable Housing Ad hoc Committee October 11, 2016 Meeting Notes Present: Elizabeth Dodson, Gloria Green, Phil Humphrey, Robert Rosenberg, Steve Spain, Dave Spetrino, Jody Wainio, Tilghman Herring, Linda Smith, Katrina Redmon, Paul D'Angleo, Katrina Knight, Will Bland Staff —Jennifer Rigby, NHC; Suzanne Rogers, City of Wilmington Absent: David Barnes, Carlos Braxton (resigned) Presentation: Stephanie L. Norris, PE with Spaulding & Norris, PA presented and discussed with the committee the NC Housing Finance Agency (NCHFA) Low Income Housing Tax Credit ( LIHTC) program. She offered the Lockwood Village project as an example and shared the process, challenges, changes in LIHTC Qualified Allocation Plan, and lessons learned. (see attached handouts) Ms. Norris offered the list of request to help with developing LIHTC projects: • Funding from local governments ( projects with local government funds more competitive bring down tax credits per unit) • Other Sources of funds beyond the Federal HOME $ • CFPUA • Impact Fee $65k master meter: • Amortize w /payment schedule or waive impact fee for affordable housing projects • Waive meter fees during construction when no service /water provided • Prefer individual meter vs master meter - tenant directly responsible to CFPUA for use /payment vs sub meters • Zoning & Permitting o Need hybrid approval process with preliminary approval on concept limited design with final approval upon award of tax credit... delay cost until know if project will get funding • Need more cooperation from City attorney to ensure closing documents timeline met for all other funders... Jody Wainio, Chair, asked committee members to work in small groups. She ask for volunteers to serve on the following groups to identify barriers to affordable housing. Permanent Support Housing (also consider other subsidized housing for very low and low income persons) - Katrina Knight, Robert Rosenberg, Tilghman Herring, Jody Wainio Rental Housing — Paul D'Angelo, Katrina Redmon, Elizabeth Dodson, Gloria Green, Phil Humphrey Home Ownership — Steve Spain, Dave Spetrino, Will Bland, Linda Smith Committee members met in their respective groups and reported out as follows: Barriers (Gaps) to Rental Housing : I = Individual, D = Developer, L = Landlord • Lack of inventory of affordable housing (1) • Lack of incentives for builders (D) • Banks — affordable rental housing high risk /profit margin (D) • Availability of Land /Land cost (multifamily), not so much barrier for single - family (D) • Location of affordable land not ideal, for example location near transportation (1) (D) • Cost of affordable housing still high (1) • Marketing of programs and availability (1) • Funding /Limited Sources/ Restrictions (D) • Education — what is affordable housing (D) • Size appropriate /matches subsidy (1) • Cost of construction (D) • Fees, etc • Cooperation among agencies (education) • Lack of incentives to Landlords (L) Comments added from committee at report out: • Insurance /taxes costs passed to consumer 0 17% increase taxes and insurance o CFPUA, Duke Energy cost increasing • Students drive up rents • VRBO Rental competition • Lack of CDBG funds in NHC • Fair market value taxes — tax assessment reflects value of property as owner - occupied not as rental property Barriers to Home Ownership: • $125k -$145k = Affordable Housing for home ownership (no availability) • High cost of land and infrastructure - $25k development cost per unit • Lack of Education • Budgeting for household /personal to save for down payment, qualify for mortgage, maintain house, etc. • Credit score — poor or no score • Schools /crime /social problems especially in downtown area where infrastructure exists • Down payment assistance in some areas • Myth that affordable housing brings down adjacent property values • Barriers to Permanent Supportive Housing and other subsidized housing: • Low or no income of individuals needing PSH housing • Expense of supportive services — social workers, transportation, etc. • Lack of available PSH and other supportive housing • NIMBY • Structuring multiple financing sources w /varying requirements and conditions to secure funding to develop PSH and housing for those with very low and low incomes • Not being "poor enough" to qualify for subsidy and other resources • Minimum standards for housing, such as separate kitchen, bathroom, living space for each tenant... 675square feet... etc... "creative solutions" shared spaces ... co- housing... • Capacity of small non - profits • ADA compliance • Land cost • Donation /private /non - profit • Impact fees • Permitting/ Approval Process Comments added from committee at report out: • Clustering affordable housing /concentration due to tax credits • Lack of education on affordable housing and related issues among planning commission and elected officials. Committee members pointed out that many of the barriers impact all the subcommittee housing categories. CD rR (D Z3 CD CD r* U C7 -- a� , =. 3 o -,� Q• 0 CCU � � 3 m CD O� CD to -% CD ,- 0 CL) p M. _ 20 3 CD CD CD CD OA CD -�, RR� R CD Sa O � n Q 0 � z 3 CD CD r CD a m role' IT1 Mo O �- O. o a CD R U) -�- v o m 0 � c"� v tta C� m i = M o fa o _ CD (P ro o 0 CD V' `C ... CD C? Nf CD 1 C ' � - � > � � Cp -0 CL = o CT) c� o ° � .. a �+; -� , C9 p (D 0 0 0 CD � m r+ � v ca N Q° CD v z °;a ' _. z' -� CD -n m 0 o v o z 0 t s _. 2 CD n� N 0 £ hy6 0 £ NCHFA 2016 State-Mandated Set-Asides (with Novogradac Data for 60% AMI) "Note: 30% & 5004 s;,,1.avdos an this chid are Im Srate-Mmidated targWng only. They do nol conlpt with HOME or 5 1X $,Thoy may not be used by propofies whero the hucrodit mWfnum set -aside lsMO W, Pie 8609, Sit km 8 mW HOME Incomo linifts cimbe found at wmv,hudusm,atg Report Date: 05/19/2016 Effective 03/28/2016 Page 1 of 1 Income Limit for Family Size Rent Limits (Rent + Utilities) Now Hanover Median Income: $65,100 (1) Maximum Housing Expense 7Kbf t7ne Two Three Four Five six Seven Eight - - -- ----- - Median Income Person Person person Person Person Person Person Person Efficiency VEIR 2/BR 31(BR 4�BR -17.5-80 __22'_,_68_0 2 4-2-4-0- 25.800 342 366 439 508 567 35 15,96p 16,23ta 20,510 x.765 24,Ca4CY 2E 460 26',2Ek0 3,0TT-0-0- 399 427 512 1 . ... .. . 592 -----— 661 4030 16,210 2f1,640 23,44 '160 30,240 32 332.0 34,400 456 488 586 677 756 221800-- 6,050 ----- - ----- 29,300 32,550 35,200 ------ 37,800 40,400 43TOOO --------- 570 610 732 846 945 27,360 -R-JI _T2 4`'a, 360 46,460 E_ �7 679 1,01E 1,134 "Note: 30% & 5004 s;,,1.avdos an this chid are Im Srate-Mmidated targWng only. They do nol conlpt with HOME or 5 1X $,Thoy may not be used by propofies whero the hucrodit mWfnum set -aside lsMO W, Pie 8609, Sit km 8 mW HOME Incomo linifts cimbe found at wmv,hudusm,atg Report Date: 05/19/2016 Effective 03/28/2016 Page 1 of 1