12.13.16 Meeting NotesCity of Wilmington /New Hanover County
Workforce /Affordable Housing Ad hoc Committee
December 13, 2016
Meeting Notes
Present: Linda Smith, Robert Rosenberg, Steve Spain, Dave Spetrino, Jody Wainio, Tilghman Herring,
Katrina Redmon, Katrina Knight, Paul D'Angleo, Phil Humphrey
Staff — Suzanne Rogers, City of Wilmington; Julia Moeller, NCH; Rebekah Roth, NHC
Absent: Will Bland, Elizabeth Dodson, Gloria Green
Resigned: David Barnes, Carlos Braxton
Jody Waino, Chair, called the meeting to order and welcomed all.
In preparation for the meeting exercise and discussion, Jody reviewed the City and NHC Resolution that
established the ad hoc committee, including the purpose and direction to the committee.
Suzanne reviewed the issues and items the committee has explored thus far. See attached PowerPoint.
Following the introductory review of purpose and progress the committee members each wrote down
what they would recommend to City Council and County Commissioners from the tools and topics
explored or other thoughts. Include a brief description. One recommendation per sheet of paper.
Attached please find the recommendations as posted to a grid and the grouping by category. The group
will continue to refine these items to present to NHC Commission and Wilmington City Council.
The committee agreed to meet again over the next two months — January and February. A doodle poll
will be used to identify dates for future meetings.
Prepared by SE Rogers
Meeting 1:
Permanent AH Advisory Committee
• Develop a permanent advisory committee that makes recommendations to gov on changes or
new programs to AH. Develops guidelines for use of trust fund money. Continues to educate
community on state of region and need.
• C Council appointed AH Advisory Committee to serve as ongoing part of AH Coalition forterm —
reporting back to commission & council
• Put into Place an ongoing Advisory Committee on AH
• Focus on getting political buy -in (from council & commission) on broad strokes & leaving as much
of the specifics to staff & any advisory committee (insulates politicians from blowback, avoids too
many cooks, establishes the value of AH, while leaving mechanics flexible
• Make CFHC the official affordable housing advisory committee
Research /Housing Needs Assessment
Provide accurate # to determine the need to programs. May require a consultant to prepare or
may have #s but need staff support to put them in a format easy to read & understand. This serves
as ammunition to local officials and the NIMBY citizen.
Utilize a professional consulting firm w/ experience in identifying what our needs are within the
community (and then share that info w/ everyone)
Housing Needs Assessment as a starting point
Meeting 2:
By -Right Zoning (Accessory Structures, SF &MF Mixed, AH as Default)
• Allow "by- right" building of garage apartments on single family lots
• Encourage & support sensible height limits & density without subjecting a project to public
scrutiny /NIMBYism
• Make AH "by- right"
• Allow secondary structures on single - family lots by -right (Xi)
• Restructure zoning regulations
• Affordable housing must be the default condition (not a bonus) in planning and zoning. Ex: R -5
allows lots 3K sq ft and up for "affordable" housing definition, but 5K and up doesn't qualify.
Housing providers need to see City /County commitment to afford. Housing as default, by -right
• By -Right Zoning
• Allow a mix of single - family and multifamily housing in more places
• Mitigate authority of a single council member to deny affordable housing projects
Incentives for Developers
• Incentives— Layer the affordability: the I owe rthe wage, the higher the incentive
• Land use incentive grant (similar to Ashville)
• Incentives /bonuses /goals re: AH
• Increased incentive for developers who include % of affordable units (i.e. density bonuses,
a i%�rii� .
o, in permit fees, ; �„ impact fees)
• Jurisdiction -wide incentives (i.e. less parking, lower fees, streamline process, bonuses)
• True density bonuses that developers will use
• Some incentive if (multifamily) developer will accept some HCV (section 8)
• Credit Enhancement Programs could be used to assist developers with financing
• Incentives for lots /land w /vacant buildings (i.e. offer demo and provide clean site)
• Backstop private land -lords where a concern over a low security deposit or last month's rent being
underfunded is "insured" up to $5k or $3.o k if tenant flakes out.
• City should �� ,, payment or spread required payments over time (is this City or CFPUA? ser)
• Employ 4% Credits w /bond issuing capacity of Housing Authority; construction or Long -Term
Infill & Redevelopment
Encourage infill re- development through staff rezone based on their long -range plans of vacant &
underused sites (vs applicant, owner request)
Allow housing in light industrial zoning areas
Inclusionary Zoning Requirement
5% Inclusionary Zoning (X3)
Payment -in -lieu of inclusionary %
True density bonuses that developers will use
Meeting 3:
Public Awareness (De- stigmatizing, benefits of AH)
• Larger community survey on AH to find out where the support is
• Educate public. Put a face on AH
• Keep the issue in front of public; hold elected officials accountable; reflects importance to
City /County; overlap with /work closely with CFHC
• Public awareness campaign. Need this before asking citizens to approve a mechanism for
implementing trust fund. Use # from study to support the need.
• New public awareness campaign on financial literacy (i.e. public become bettertenants &
homeowners)
• Simple campaign to de- stigmatize AH. We all need housing that is affordable to use.
• Allow community input into what AH looks like. Alternative to federal prescriptive solutions to AH
• Identify those who occupy AH (give a face to the user)
• Advertise how to be a homeowner or "Hero Points" to encourage & guide individuals what to work
tows rd
• Public awareness ($$ to CFHC for community presentations)
• Public awareness campaign on paying a "living wage" for Wilmington
• Highlight benefits of affordable housing for the wider community (traffic, good for businesses,
mutual benefits)
• Initiate a public campaign to screen neighbor resistance to AH
• Do a betterjob of education our community on existing programs (like HOP). Don't reinvent the
wheel.
Financial Literacy & Homebuyer Education
• Mandatory financial literacy class & homeowner education to participate in HO financing
• Advertise how to be a homeowner or "Hero Points" to encourage & guide individuals what to work
tows rd
• Permanent financial literacy class @ CFCC — required for all incoming freshmen
• Homeownership education program that is in depth & supportive & well - advertised
• First -time homebuyer education & qualification: credit - counseling, resources, "neutral" guidance &
support
Political Buy -In & Accountability
• Keep the issue in front of public; hold elected officials accountable; reflects importance to
City /County; overlap with /work closely with CFHC
• Set goals to meet the deficit & sustain future needs based on growth. Goals need to be realistic.
Use aoals as mechanism to hold politicians' feet to the fire
• Implement intentional regular education effort for elected officials (local: needs, best practices,
opportunities; state: importance of healthy funding of NCHFA and state HTF)
• Provide evidence to our elected officials that AH is supported in all neighborhoods
Meeting 4:
Housing Trust Funds — Penny for Housing, AH Bond
• Housing Trust Fund (bond initiative)
• Improve Local & State funding sources (i.e. penny for housing or Housing Trust Fund)
• Provide City & County funds to assist in the building of affordable housing
• Trust Fund (must have support of community, an independent "board" to approve use — not city
council or c commission, not sure best way to fund —that should be part of implementation team
• Housing Trust Fund funded through penny for housing or similar (grants and loans, broader range
of funding activities rather than construction only)
• Affordable Housing Bond. No matter what solutions we recommend all will need funding. Engages
whole community in discussion. Provides "cover" for politicians, "the voters have spoken." As long
as there is $ to spend on an issue it remains in the public eye.
• CIP: Can go hand -in -hand with trust fund; Invests $$ in community & createsjobs while in the works
• Affordable /Workforce Housing bond to support teachers, police, fire & similar municipal employees
Partnership s /CFPUA
Develop program w /CFPUA on fees to help developers increase # of units /decrease costs
associated with building projects. Helps to bring them along as a partner in the community &
become part of the solution.
YEN
Get C F P U A on board by y� fi for non - profit or affordable developments
CFPUA should only charge an impact fee where an impact is actually occurring. Tapping into
existing lines vs placement of new have different values.
Capital Improvement Project (CIP)
CIP money if necessary to support a tax credit development
CIP: Can go hand -in -hand with trust fund; Invests $$ in community & createsjobs while in the
works
Partnerships w /Banks
• Public /private partnerships between banks, builders, & local nonprofits developers need
improvement
• Consortium of banks or other institutions with lower cost loans & lower risk per financial institution
• Involve local /regional banks (i.e. loan programs for affordable housing construction — perm)
Color Key:
Yellow- in more than one category
ffi"Requires action by NC Legislation or US HUD, i.e. no local authority
�� F
Rebate Fees instead of waive or abate
,
Prepared by SE Rogers
Affordable Housing Ad Hoc Committee Meeting 12/1/16
High Impact /Low Effort
• CIP money if necessary to support a tax
credit development
• Larger community survey on AH to find
out where the support is
• Provide accurate # to determine the
need to programs. May require a
consultant to prepare or may have #s
but need staff support to put them in a
format easy to read & understand. This
serves as ammunition to local officials
and the NIMBY citizen.
• Develop a permanent advisory
committee that makes
recommendations to gov on changes or
new programs to AH. Develops
guidelines for use of trust fund money.
Continues to educate community on
state of region and need.
• Utilize a professional consulting firm w/
experience in identifying what our needs
are within the community (and then
share that info w/ everyone)
• Mandatory financial literacy class &
homeowner education to participate in
HO financing
• Educate public. Put a face on AH
• C Council appointed AH Advisory
Committee to serve as ongoing part of
AH Coalition for term — reporting back
to commission & council
• Put into Place an ongoing Advisory
Committee on AH
• Keep the issue in front of public; hold
elected officials accountable; reflects
importance to City /County; overlap
with /work closely with CFHC
High Impact /Moderate Effort
• Incentives— Layer the affordability: the
lowerthe wage, the higherthe incentive
• Better economic team for our region to
attract higher payingjobs
• Housing Trust Fund (bond initiative)
• Land use incentive grant (similar to
Ashville)
• County designated as an Entitlement
community for more CDBG /HOME
• Public /private partnerships between
banks, builders, & local nonprofits
developers need improvement
• Focus on getting political buy -in (from
council & commission) on broad strokes
& leaving as much of the specifics to
staff & any advisory committee
(insulates politicians from blowback,
avoids too many cooks, establishes the
value of AH, while leaving mechanics
flexible)
• Consortium of banks or other
institutions with lower cost loans &
lower risk per financial institution
• Encourage infill re- development
through staff rezone based on their
long -range plans of vacant & underused
sites (vs applicant, owner request)
• Set goals to meet the deficit & sustain
future needs based on growth. Goals
need to be realistic. Use goals as
mechanism to hold politicians'feetto
the fire
• Develop program w /CFPUA on fees to
help developers increase # of
units /decrease costs associated with
building projects. Helps to bring them
High Impact /High Effort
• 5% Inclusionary Zoning (X3)
• Large employers help fund their workforce housing
• Involve local /regional banks (i.e. loan programs for
affordable housing construction — perm)
• Allow secondary structures on single - family lots by -right
(Xz)
• Increased incentive for developers who include % of
affordable units (i.e. density bonuses, reduction in permit
fees, wave impact fees)
• Payment -in -lieu of inclusionary %
• Jurisdiction -wide incentives (i.e. less parking, lowerfees,
streamline process, bonuses)
• Improve Local & State funding sources (i.e. penny for
housing or Housing Trust Fund)
• Provide City &County funds to assist in the building of
affordable housing
• Trust Fund (must have support of community, an
independent "board" to approve use — not city council or c
commission, not sure best way to fund —that should be part
of implementation team
• Restructure zoning regulations
• Housing Trust Fund funded through penny for housing or
similar (grants and loans, broader range of funding activities
ratherthan construction only)
• New public awareness campaign on financial literacy (i.e.
public become bettertenants & homeowners)
• Multifamily tax - exempt program(propertytaxes)
• % of affordable exempt from property tax perhaps tiered by
AMI
Affordable housing must be the default condition (not a
bonus) in planning and zoning. Ex: R -5 allows lots 3K sq ft
and up for "affordable" housing definition, but 5K and up
doesn't qualify. Housing providers need to see City /County
commitment to afford. Housing as default, by -right
Affordable Housing Bond. No matter what solutions we
recommend all will need funding. Engages whole
community in discussion. Provides "cover" for politicians,
• Copy what other communities are doing
well & implement the same
Moderate Impact /Low Effort
• Support zoning for tiny homes
• Simple campaign to de- stigmatize AH.
We all need housing that is affordable to
use.
Allow community input into what AH
looks like. Alternative to federal
prescriptive solutions to AH
Identify those who occupy AH (give a
face to the user)
Advertise how to be a homeowner or
"Hero Points° to encourage & guide
individuals what to work toward
along as a partner in the community & "the voters have spoken." As long as there is $ to spend on
become part of the solution. an issue it remains in the public eye.
• Public awareness campaign. Need this
before asking citizens to approve a
mechanism for implementing trust
fund. Use # from study to support the
need.
• Allow "by- right" building of garage
apartments on single family lots
• Encourage & support sensible height
limits & density without subjecting a
project to public scrutiny /NIMBYism
• Incentives /bonuses /goals re: AH
• Make AH "by- right'
• Maximize use of capefearhousing.org
AH database
Moderate Impact /Moderate Effort
• Public awareness (ss to CFHC for
community presentations)
• Housing Needs Assessment as a starting
point
• True density bonuses that developers
will use
• Permanent financial literacy class @a
CFCC — required for all incoming
freshmen
• Make CFHC the official affordable
housing advisory committee
• Some incentive if (multifamily)
developer will accept some HCU
(section F)
• Public awareness campaign on paying a
"living wage" for Wilmington
• Credit Enhancement Programs could be
used to assist developers with financing
• Implement intentional regular
education effort for elected officials
(local: needs, best practices,
opportunities; state: importance of
Moderate Impact /High Effort
• By -Right Zoning
• Get CFPUA on board by waiving fees for non - profit or
affordable developments
• Allow housing in light industrial zoning areas
• City should waive fee payment or spread required payments
overtime
• Allow a mix of single - family and multifamily housing in more
places
• Mitigate authority of a single council memberto deny
affordable housing projects
• CIP: Can go hand -in -hand with trust fund; Invests ss in
community & createsjobs while in the works
• Employ y% Credits w /bond issuing capacity of Housing
Authority; construction or L -T
• Affordable /Workforce Housing bond to support teachers,
police, fire & similar municipal employees
• Small hotel tax and tax short -term rentals
healthy funding of NCHFA and state
HTF)
• Highlight benefits of affordable housing
forthe wider community (traffic, good
for businesses, mutual benefits)
• Incentives for lots /land w /vacant
buildings (i.e. offer demo and provide
clean site)
• Encourage Condo building forAH
• Homeownership education program
that is in depth & supportive & well -
advertised
• Mechanism for insuring AH units go to
those who need them, not college
students
• If public funds, gov. "right of first
refusal" at sale of AH developments
• Provide evidence to our elected officials
that AH is supported in all
neighborhoods
• Initiate a public campaign to screen
neighbor resistance to AH
• Backstop private land -lords where a
concern over a low security deposit or
last month's rent being underfunded is
"insured" up to $5k or sio k if tenant
flakes out.
• First -time homebuyer education &
qualification: credit - counseling,
resources, "neutral" guidance & support
• Do a betterjob of education our
community on existing programs (like
HOP). Don't reinvent the wheel.
Low Impact /Low Effort
Low Impact /Moderate Effort
Low Impact /High Effort
• CFPUA should only charge an impact fee where an impact is
actually occurring. Tapping into existing lines vs placement
of new have different values.
Reoccurring Themes Identified by Committee:
i. Housing Needs Assessment (Supply and Demand)
a. Tie in with zoning rewrites
b. Do we need to lead with this or can we use what we have now?
c. More information needed on the supply side
z. Education
a. What does a family need to earn to live here?
b. Need to communicate in 2o36 s wage
3. Permanent Advisory Committee
a. Possible partnership with CF Housing Coalition
b. Continuous communication
4. Housing Trust Fund
a. How should this work and for who?
b. Loan vs grant production vs presentations
Tallies
Public Education (De- stigmatizing, Benefits of AH)
io
By -Right Zoning (Accessory Structures, SF +MF Mixed, AH as Default)
g
Incentives for Developers
8
HTF /Penny for Housing /Affordable Housing Bond
8
Financial Literacy & Homeowner Education
6
Political Buy -In & Accountability
6
Permanent Advisory Committee
5
Research /Housing Needs Assessment
4
Partnership w /CFPUA
3
CIP
z
Partnerships w /Banks
z
Infill & Redevelopment
z
Inclusionary Zoning Requirement
z
"Give a Face" to AH
z
.
.
.1
0
.1
�)Ljslnll L.AOSIS VS_ MCC
.
2005 2006 2007 2008 2009
Median Household Income
Median Gross Rent
2010 2011 2012 2013 2014
Median Housing Costs
— Median Owner Costs w/ a Mortgage
EF