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HomeMy WebLinkAbout11.29.16 Meeting NotesCity of Wilmington /New Hanover County Workforce /Affordable Housing Ad hoc Committee November 29, 2016 Meeting Notes Present: Elizabeth Dodson, Gloria Green, Linda Smith, Robert Rosenberg, Steve Spain, Dave Spetrino, Jody Wainio, Tilghman Herring, Katrina Redmon, Katrina Knight, Paul D'Angleo, Will Bland Staff — Suzanne Rogers, City of Wilmington; Jennifer Rigby, NCH Presenters: Jeff Staudinger, Assistant Director of Community & Economic Development. City of Asheville, NC Absent: Phil Humphrey Resigned: David Barnes, Carlos Braxton Jody Wainio called the meeting to order and welcomed everyone. She asked committee members, staff liaisons, and other attendees to introduce themselves. Paul D'Angelo introduced the presenter Jeff Staudinger, noting that Jeff was recipient of the NC Housing Professional of the Year Award by NCHFA and NCHC. Jody thanked Cape Fear Housing Coalition for sponsoring Mr. Staudinger's travel. Mr. Staudinger provided an in -depth overview of Asheville's affordable /workforce housing efforts — see attached powerpoint. During the presentation the following questions and salient points were discussed: Q: Are Accessory Dwelling Units a part of the Asheville Strategy for affordable housing? A: Moving toward developing tools to incentivize ADUs, including construction financing Q: Do short -term rental s i.e. AirBnB, qualify for incentives? Are short -term rentals impacting supply of affordable housing? A: Asheville City Council has appointed a task force to look at short -term rental issue. Currently allowed in commercial districts, not residential. Q: Why aren't more condo's being built to meet demand for affordable homeownership? A: 1- single family unit more profitable; 2- developers can't get conventional financing to develop; 3- cost per door to land, ie. Site prep & infrastructure, too high Q: Regarding 1� for housing strategy — When tourism is the primary source of jobs why increase property tax for affordable housing instead of use sales /use tax? A: Use of sales /use tax determined by County and requires action an NC Legislature to change or increase. In Asheville increased sales /use tax 100% tourism. Q: Asheville has a standing housing advisory committee. Would you say this committee provides political cover to City Council in cases of NIMBY? A: Yes Q: Asheville contracted for a housing market study — Bowen Report. How much did that cost? A: $30,000 Q: Who manages the City's Housing Trust Fund? A: City staff underwrite the applications and submit for review to the Affordable Housing Advisory Committee (AHAC); AHAC makes recommendation to City Council for final approval. Priorities for Affordable /Workforce Housing Bond: • Production of Affordable Rental Housing, leveraging of 9% & 4% LIHTC • Every private sector developer is including 10% of units in development for affordable housing • Increase production of single - family and attached homeowner units w /partners by offering construction financing w /very favorable terms Important Housing Objectives & Tools for Asheville: • Permanently affordable housing - tool to achieve Land Trust; important to address gentrification, especially in historically African American neighborhoods • Housing Trust Fund (HTF) tool to finance development of housing City Council has consistently budgeted funds for the HTF. HTF averages $20,000 per unit. City wants to work with local developers on infill development of smaller 12 -24 unit projects. • Capital Improvement Plan (CIP) tool to finance land banking and to redevelop city owned land for affordable housing • Land Use Incentive Grant (LUIG) aka Synthetic TIF allows for rebate of taxes and fees conditional on performance. Used for multi -use and multi- income projects, incentive rebate for entire project not just affordable units. • Density Bonuses — 20% affordability bonuses, no takers yet • Fee Rebate for housing production up to 50% rebate on fees for houses below certain price point /sales price For more information on Asheville's Affordable Housing programs: htt : www.ashevillenc. ov De artments Communit EconomicDevelo ment Communit Develo ment p.I/ .................................................................................. g........... �............. p........................................... �.................................................. Y......................................................................... ......p........................ �................................................. Y............................. ....p.......................... /f..la,n.d.i.n9Presg.r .rn.. ..p . Notes prepared by Suzanne E. Rogers Contents • Asheville's Affordable Housing Market and Need • Housing Strategy Framework • Tools — General Obligation Bond — Housing Trust Fund — Land Use Incentive Grant — Permit Fee Rebates — Federal HOME and CDBG — Capital Improvement Program — City -Owned Property — Density Bonus Primary Work Elements ID Analyzed more than 100 demographic & economic metrics ID Conducted -40 community stakeholder interviews /surveys ID Surveyed nearly 170 multifamily rental properties (14,000+ units) ID Surveyed over 100 non - conventional rentals ID Evaluated 171 mobile home parks ID Analyzed for -sale data on 25,999 units (3,669 listed /22,330 sold) ID Surveyed 58 Senior Care Facilities (Adult Care, Nursing Home, & Multi -Unit Assisted) ID Completed a housing needs /gap analysis by tenure & affordability (up to 120% AMHI) ID Made more than 200 contacts with individuals & organizations ID Over 200 housing properties were visited and rated Analysis Conducted on a Four - County Region Basis with Individual City /County Comparisons •Ashevi I le •Buncombe County •Henderson County •Madison County •Transylvania County Housing Need and Housing Gap - Housing Need includes "cost- burdened" households sub - standard housing replacement Market Rate Rents (Jan., 2015) x � r ti c��v What would affordable housing cost? Affordable Housing Standards Maximum Rent -80% AMI Family Size* Utility Allowance ** 80% Max affordable rent at 80% AMI * ** Rent + Utilities * * ** 0 BR 1 126 32,450 685 811 1 BR 2 133 37,050 793 926 2 BR 3 173 41,700 870 1,043 3 BR 4 209 46,300 949 1,158 4 BR 6 228 53,750 1,116 1,344 Low Income Housing Standards Maximum Rent -60% AMI Family Size* Utility Allowance ** 60% Max affordable rent at 60% AMI * ** Rent + Utilities * * ** 0 BR 1 126 24,338 482 608 1 BR 2 133 27,788 562 695 2 BR 3 173 31,275 609 782 3 BR 4 209 34,740 660 869 4 BR 6 228 40,313 780 1,008 • One - persons households comprise largest share (40% +) of renter H Hs • One - person HHs will increase by 1,797 b/w 2015 -202C Region Persons per Renter Household (2015 -2020) ® 2015 ❑ 2020 45.0% 40.0% a w a a 40.7% 35.0% 30.0% L 25.0% a a a 28.100 CC 20.0% 15.0% 10.0% ° a a 14.8 %i 5 .0% w" ffl� 9.4% a a 7.100 0.0% 1- Person 2- Persons 3- Persons 4- Persons 5- Persons Household Size • One - persons households comprise largest share (40% +) of renter H Hs • One - person HHs will increase by 1,797 b/w 2015 -202C AS 31,063 Total Renter Households .11 Law L ' IMMI A 74% earn less than 50% of median inco rr r Region Rental Housing Need by Income ® Family Households 0 Senior Households 11,000 10,000 �o 9,000 8,000 7,000 an 6,000 5,000 4,000 3,000 3,281. 2,000 1,000 2,019 =,239 �� 7 ©$ 0 <30% 30%-50% 50%-80% 80%-120% Percent of Median Household Income AS 31,063 Total Renter Households .11 Law L ' IMMI A 74% earn less than 50% of median inco rr r Rental Housing Gap • 3,580 affordable rental units needed by 2020 • 64% are needed by households earning 80% or less of median income • 45% of all renter households pay >30% of their gross income for rent • 21% pay >50% of their gross income for rent t Of 'O Say r .7,70" a� " y o Red shading = Unable to afford Fair Market Rent Mean Hourly Bedrooms Wage Employment of Total Efficiency 1 2 3 Total all occupations $17.14 116,920 Retail Salespersons $10.71 4,690 4.0% Food Preparation & Serving Workers $8.08 3,780 3.2% Registered Nurses $28.96 3,630 3.1% Cashiers $8.45 3,350 2.9% Waiters & Waitresses $8.90 3,250 2.8% Home Health Aides $10.57 2,310 2.0% Stock Clerks & Order Fillers $10.74 1,970 1.7% Laborers, Freight, Material Movers $11.08 1,930 1.7% Secretaries $13.74 1,900 1.6% Janitors & Cleaners $9.84 1,740 1.5% Office Clerks, General $11.73 1,720 1.5% Customer Service Representatives $13.14 1,700 1.5% General & Operations Managers $49.62 1,600 1.4% Cooks, Restaurant $10.42 1,500 1.3% Supervisor /Mgr of Retail Sales Work $17.62 1,450 1.2% Bookkeeping & Accounting Clerks $15.20 1,390 1.2% Maids & Housekeeping Cleaners $8.77 1,310 1.1% Executive Secretaries & Admin Assts $16.55 1,270 1.1% Truck Drivers, Heavy /Tractor - Trailer $18.11 1,200 1.0% Receptionists & Information Clerks $11.39 1,180 1.0% Larchmont • 60 units of affordable family rental housing in north Asheville developed by MHO • Will remain affordable for at least 30 years to households at 60% or less of median income 40,764 Total Owner Households \: 35% earn between i @', and @', AMI • 6682 Total Owner Households • 58% are between 80 %- 120% AMI 0 11 11 0 0 Owner Housing Gap 3,879 affordable new ownership units needed by 2020 73% of that total needed by senior households 70% of households are looking for homes priced under $200,000 Appledorn Condominiums 190 Units • Average sales price: $117,000 Olwr, H +T Index ',� nlar for i l dU technology Imm 1�m Transportation Costs Affordable Housing Scorecard: Findings — The city of Asheville • is outperforming annual targets for affordable housing production and assistance • is outperforming all four comparison cities: Greenville, SC, Wilmington, NC, Chapel Hill, NC and Durham, NC • is using its state and federal grant dollars efficiently • Housing Trust Fund and rebate programs have been very effective at assisting developers to make affordable housing development feasible • has the political support as well as institutional /organizational capacity to tackle the affordable housing challenge The local community development corporation, Mountain Housing Opportunities, has efficiently and effectively utilized Housing Trust funds, LIHTCs, HOME funds, NeighborWorks funds, and other funding to produce affordable rental and for sale housing Affordable Housing Scorecard: Recommendations • Permanent affordability • Housing Trust Fund and dedicated funding for affordable housing • Identify opportunity areas • Neighborhood Planning • Economic Development and Workforce Development Continue and expand affordable housing coordination with Buncombe County • Expand affordable housing network �ll The Comprehensive Affordable Housing Strategy is envisioned as a "living strategy" that will guide ongoing work related to affordable housing policies and programs. Adoption of the strategy will inform annual work program priorities aimed at continual action, monitoring and evaluation to expand / of J tegy • Strengthen the city's affordable housing programs for low- and moderate - income households • Continue the development of a housing crisis management system to prevent and end homelessness • Expand housing opportunities for middle- income households • Explore innovative approaches to providing additional housing and a broader range of housing options, particularly for housing needs not being met by the market • Prioritize action items that provide the highest return on investment as measured by number of affordable units, percentage of permanently affordable units, contributions to long -term economic and tax base growth, and sustainability 1111 �� .,wt- )" CA Strengthen Our Current Commitments Reach or exceed Asheville's goals to serve people of in all life stages, incomes and abilities; adopt production goals that are ambitious and achievable Maintain the Middle Provide greater variety of housing choices for middle- income families and for Asheville's workforce. Create Diverse Housing Choices in Every Neighborhood Facilitate the creation of a variety of housing options in every part of the city, including existing single - family neighborhoods and commercial districts. Create Vibrant Neighborhoods Foster mixed - income, mixed -use, highly walkable neighborhoods in amenity rich locations (e.g., close to transit, parks, open space and trails, employment, retail services, etc.) to maximize locational efficiency Strengthen Partnerships and Leverage Resources Strengthen current partnerships and explore creative new public - private - partnerships to address our community's housing challenges Actions V ry CAP Foundations for action — Adoption of a housing production goal for FY2014 -2015 — Comprehensive Housing Market Analysis — 2015 -2019 Consolidated Plan for CDBG and HOME — Revisit production goal for FY2015 -2016 Mid -term policy initiatives — Adopt Affordable Housing Policy Guidelines for FY2015- 2016 — Comprehensive Recommendations on City Affordable Housing Tools for FY2015 -2016 — Comprehensive Regulatory Analysis and Recommendations — Adoption of achievable and aspirational long -term goal to substantially impact affordable housing needs C - I Actions �� aasM Zoning 0,,4 Asheville Tools and Strategies General Obligation Bond Housing Trust Fund Land Use Incentive Grant Permit Fee Rebates Federal HOME and CDBG Capital Improvement Program City -Owned Property Density Bonus asH 0�_ ti c�� • • . • i MMOMby Ion • • • $25,000,000 for affordable housing • 70% approval • Policy for use to be determined by City Council • Likely to be incorporated into Housing Trust Fund, and used to repurpose land /land bank • Will be able to support the development and preservation of 500- 1,000 units of affordable housing r 47770" y 7a7o 'dousing Trust Fund • Rental and Ownership Housing Finance • Ownership: Construction Loans only • Rental: Permanent financing, minimum 15 years, 2% Interest • Special terms (for units at 60% AMI): 2% interest only, deferred principal; or, 0% interest v ..:1111 sum, Housing 4Af0 Year Project Developer Amount # of Affordable Units FY 15 -16 Simpson Street Beaucatcher Commons $300,000 60 Virginia Ave. Beaucatcher Commons $90,000 6 Smith Mill Place Biotat $520,000 36 Housing for Homeless Groce United Methodist $30,000 2 Commonwealth Court Hearthstone $128,000 16 White Pine Leah Kim $150,000 15 FY 14 -15 Nancy Street Beaucatcher Commons $120,000 6 Oak Hill Commons Biotat $200,000 24 FY 13 -14 Eagle Market Place MHO $500,000 62 Givens Gerber Park Givens Estates $230,000 120 Oak Hill Hard to House Biotat $58,106 30 Raleigh Marietta Beaucatcher Commons $90,000 6 FY 12 -13 Marigold & Cha el Park Beaucatcher Commons $150,000 4 Givens Gerber Park Givens Estates $270,000 120 FY 11 -12 Glenn Rock Hotel MHO $387,000 22 West Chapel Road Beaucatcher Commons $120,000 6 Johnston Cottages Beaucatcher Commons $200,000 18 FY 10 -11 Shiloh Road Beaucatcher Commons $80,000 4 Eagle Market Place MHO $300,000 70 $2,705,106 627 ACTUAL AMOUNT (Less duplicates) $2,447,000 383 Capital Improvement Program Allocation: $250,000 2015 $500,000 2016 $2,000,00 2017 Eligible Uses: • Market studies • Engineering and architectural studies and plans • Traffic analysis • Infrastructure improvement • Subsidies • Land banking • Construction • Affordable Housing Financing The initial tangible product will be redevelopment of existing City owned land for affordable housing. City -Owned Property tt f •�ANn�%'m%�!M4?b +bVf.OWVW.m�fU�� m. �l.f�YJI iVW+p�•i �J. Nu"YrWW"s, PP/m,.7jI")i ' t1 i MT � +n r N S%4 WY � is u€ �' J � � ��9 ➢L'MM' 9� lli�'NW& �NdYRWF9FM.i x f t ii,, 9 �? H c11cr Development •- Qualifications Minimum Developer Experience:: • New Construction of at least one 24 -unit or larger residential development in the past 5 years; • Past experience with at least one of the following: • New affordable housing for low income families and for low income seniors; • Development of housing in Asheville • Low Income Housing Tax Credit financing. Minimum Ownership Experience: • Owned at least one residential development for at least 5 years prior to the Submittal Deadline of this RFP. Minimum Architectural Experience: • Design and construction of at least one multifamily housing development. • Design and completed construction of at least one 24 -unit or larger residential development within the past 5 years. Minimum Property Manager Experience: • Managed at least one family rental project for at least 24 months. For any Developer team member, the experience of key staff members may be substituted for the experience of the organization as a whole Requirements • Minimum of 40 units of rental Housing • Minimum 51% affordable to households earning 80% or less AMI • Minimum 20% affordable to households earning 60% or less AMI • Maximum rents no greater than 30% of the annual income for the above income levels • Minimum commitment of 20 years affordable at the above minimums • Minimum 50% One - Bedroom Units • Minimum 15% Three - Bedroom Units Other Standards and Achievables • 10% affordable to households at 30% AMI or homeless at rent —up • Sustainability • Livability • Urban Design • Neighborhood Amenities .t cads^. r ti c111% • Development Experience -- 30 points possible .- • Housing Program Objectives -- 30 points possible Key scoring elements will be: How many units will be developed? How many units will be affordable, and at what income levels? How long will the units be affordable? • Development Concept —10 points possible • Financing, Cost Control and Innovations — 25 points possible Feasibility of preliminary financing plans Development costs that are comparable to other similar Projects and reflect knowledge of site conditions and constraints; Minimize the City's permanent financing; Propose innovative sources or financing instruments; - Use innovative but practical materials or methodologies designed to reduce costs, without reducing the overall quality of the completed Development. (4) Community Outreach and Affirmative Marketing Plan- 5 points possible Land Use Incentive Grant • 10 points = 1 year grant equal to the City of Asheville property tax that results from the increase in value due to the development. 10 points = 10% reduction in City of Asheville building permit fees. At least 10% of the units must be affordable for households earning 80% or less of the Area Median Income. The affordable units must be affordable to and leased to income - eligible households for at least 15 years. Points 5 10 15 20 30 4C 50 60 70 80 90 10 10 %+ Affordable x 20 %+ Affordable x 30 %+ Affordable x 40 %+ Affordable x 50 %+ Affordable x 60 %+ Affordable x 70 %+ Affordable x 80 %+ Affordable x 90 %+ Affordable x 25 %+ Workforce x 50 %+ Workforce x 75 %+ Workforce x Location: .25 mile % hour transit stop x Location: 1 mile from job center x Location:.5 mile from transp. Amenity x Tenant Affordability: 20 years x Tenant Affordability: 30 years x ""' IM z c h, GAV'0 Smith Mill Place • 72 units • 36 units affordable at 60% AMI • West Asheville, walking distance to grocery, bus • Subsidy: Housing Trust Fund, $520,000 • Subsidy: Land Use Incentive Grant, 9.5 years, est. value of $450,000 • Conditional Zoning for increased density Smith Mill Place ..... .... E11CH FAI % R H VNI11V V, VU , 0 . ... . .. ... . ... . . . ... . .... .... ..... ....... . ... . .... . ... . . ..... . . -=,, .. . ........ Ig vz, I Smith Mill Place • How LUIG score was determined: — 60 points: 50% of units affordable to households at 60% or less of median income, for the minimum affordability period of 15 years — 15 points: 50% of units (the remainder of the units) for households earning 100% of less of median income for a period of 20 years. — 10 points: Superior locational efficiency within .25 mile of an existing bus -stop served by one -half hour ART transit frequency. — 10 points: Long term affordability at the designated rental rates for a period of 20 years. WITOT C-1 P, I, Moro OT91 MA U Production Type /Performance measures Achievements Annual 5 year FY FY FY FY FY 5 Year Targets Ta rge is 2011 2012 2013 2014 2015 Percentage New construction (or 15 75 16 39 27 21 30 177 % ' rehab) for homeownership Rehabilitation or repair of 40 200 50 72 91 59 33 153 % ' owner - occupied units New construction for 100 500 128 72 115 22 22 72 % ' rental* Rehabilitation /Repair of 25 125 0 6 0 0 0 5 % ' rental units Homeownership Assistance (Down 10 50 24 8 10 7 10 118% payment assistance) Rent or Relocation 50 250' 179 221 159 233 100 357 o' Assistance Total units 240 12001 3971 419 402 342 1951 146 %4' 180 additional units are scheduled to be completed in 2016. x � r ti cAl" Density Bonus Update to Residential Density in Commercial Areas Ordinance No. Adopteid December 9, 2014 it iiiii/ ooiiiiliii ,,.,,, /ii�i�ii /ii�iaii�ii � �����iiJ��i /iiiii / /iil�ibloii6>� // ���iioi/ iJ�iriio�iroiiiio / /i�iroi %aoo�ololi / /i000ii �,��ioi� / / /abi // iii' o�ooii�i% iio7diiil000�oliiroi /0007iliiJiD /ioaoi Office (OFF) 8 20, 40, Office III (OFF 11) 12 20, 40, Office Business (OB,) 12 20, 40, Community Business I (CB 1) 16 20, 40, COIMIITLMliity Busliness IIII (CBH) 16 25 50, Institutional (INST) 16 30 613 River (RlIV) 116 30, 60, Highway Business (H B) 32 35 70, Regional Business (RB) 32 35 70, Neigh, boi,hood Corridor (NCE)) 32 35 70, Urban Residential (URD) 32 35 70, Commercial Industriall (CI) 16 8 NA. Housling: The Missing Middle o"I 'T A"I Missingmiddlehousing.com Small—Scale Infill Strategies All 4 Conservation Development Sustainable ^Sfy01 A AV" , More information http: / /www.asheviIlenc.gov /Departments /CommunityDevelo pment /PlansReports.aspx Jeff Staudinger — 828 - 259 -5723 — jstaudinger @ashevillenc.gov Of R� ti2