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HomeMy WebLinkAbout06. June Agenda NEW HANOVER COUNTY PLANNING & LAND USE AGENDA COUNTY-CITY WORKFORCE HOUSING ADVISORY COMMITTEE Conference Room 500, 230 Government Center Dr., Wilmington, NC June 1, 2022 3:00 PM Estimated Minutes 5 I. Call to Order Establish Quorum 5 II. Approve Agenda 5 III. Approve Minutes May 4, 2022 30 IV. Public Comments 45 V. New Business Discussion Item o Updates to Committee By-Laws and Interlocal Agreement o Draft Framework for County Workforce Housing Services Program 5 VI. Announcements VII. Adjourn Attachments: Draft Minutes of May 4, 2022 Meeting Draft Amendment for Workforce Housing Advisory Committee By-Laws Draft Amendment for Workforce Housing Advisory Committee Interlocal Agreement Draft RFP WHSP Priorities and Evaluation Criteria tǒƩƦƚƭĻʹ The Committee shall be organized for the purpose of developing a comprehensive workforce housing study, workforce housing opinion study and public awareness campaign, support for increasing equitable access and the supply of workforce housing that is affordable; informing the Appointing Authorities and other organizations of their findings; and making recommendations, in an advisory capacity, to the Appointing Authorities and other organizations, as necessary. New Hanover County-City of Wilmington Workforce Housing Advisory Committee May 4, 2022 Regular Meeting Committee Members Present:Sharm Brantley, Tom Gale, Eric Knight, Kristen Keser,Katrina Knight, Katrina Redmon, Frank Smith, Paul Stavovy Staff Present:Tufanna Bradley (NHC),Melissa Huffman (CoW),Rachel LaCoe (NHC) Margaret Peth (NHC), Suzanne Rogers (CoW), Rebekah Roth (NHC), Call to Order The meeting was called to order at3:07pmbyChairperson Brantley and quorum was established. Agenda Approval and Minutes Katrina Redmon made a motion to approve the agenda seconded by Eric Knightand approved unanimously. Katrina Knight made a motion to approve the minutes form March meeting seconded by Eric Knightand approved unanimously. Public Comments CynthiaGierer, aresident of Wilmington spoke to her concern about repairs after major weather events and the lack of requirements for contractors. Ms. Gierer stated her concern that there is no cap on increases in rentandwithout rent increase caps many people will be priced out of the community. Ms. Geirer concluded her comment by telling the committee about her situation and her concern for the sustainability of the rising cost of housing in New Hanover County. New Business Item: Committee By-Laws RachelLaCoe noted that the committee was established through an interlocal agreement that established the committeeby-laws. Some of the previously discussed changes could be amendedby the city and county managersbut other updateswould needcouncil and board approval. Ms. LaCoe clarified that changing the AMI would relate to the interlocal agreement and would need to be adoptedby the governing boards. explained that the committee could vote on changes as resolutions, which could then be taken to the governing board to be voted on. Ms. LaCoe read the duties of the committee as stated in the by-laws. Committee members discussed requesting edits to the bylaws to more precisely set outthe duties of the Committeeto reflect the duties listed in the interlocal agreement. Committee members requested more clarity on the charge of the committee and noted continued frustration about uncertainty of the committee in informing affordable housing initiatives. The committee discussed the possibility of moving towards quarterly meetingsbutnoted that it would depend on the scope of the work as described in the bylaws. Rebekah Roth clarifiedthat theadvisory functionof the committee meant that the committee is able to make recommendations to theboard foraction, but that ultimately the board would decide the action Ms. LaCoe stated that a change that could be made to the by-laws at the managerial level would be addressing the assignment of the Community Relations Advisory Committee Chairpersonto add, or designee. Ms. Rothclarified that there would be a need for the by-laws to address remote meeting now that the pandemic order is no longer in place. Committee members discussed the content and relationship between the bylaws and the interlocal agreement. Ms. Huffman noted that it would likely be easier for changes to be made to the bylaws as opposed to the interlocal agreement. Committee members discussed concern over the ongoing existence of the committee and Ms. Redmon asked if changes would need to be made to extend the committee as described in the interlocal agreement. Draft Interlocal Agreement amendmentrequest Income Range Duties of the committee 3.5.5(Article 5.2 in the bylaws) Chair or designee for community relationship advisorycommittee Draft Bylaws amendment request Chair or Designeefor the Community Relations Advisory Committee(3.2) Allow for Remote participation for committee members Announcements Ms. Roth provided a presentation updating the committee on the lyhousing initiatives. encourage affordable housing and the implementation of housing programs with the recently approved $3 million annual funding for affordable housing.Ms. Roth provided information on the newly created staff positions, which includeahousing planner, housing program manager, housing program coordinator,and fiscal support specialist. Ms. Roth provided information on the planning and programmatic components for the housing program frameworkand timeline. She noted that the$3 million in funding would be delivered through arequest for proposal process. Suzanne of the housing related additions and changes to the budget. Adjournment Tom Gale asked for a motion to adjourn the meeting. Eric Knight made a motion to adjourn the meeting, seconded by Katrina Knight. The meeting was adjourned at 4:51 pm. BY-LAWS FOR JOINT CITY OF WILMINGTON/NEW HANOVER COUNTY WORKFORCE HOUSING ADVISORY COMMITTEE AMENDMENT I 1.Article III Membership Community Relations Advisory Commi 2.Article VI Meetings Amend to add North Carolina Open Meeting laws shall govern the Committee meetings, including remote meetings. STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER AMENDMENT No: 2 TO INTERLOCAL AGREEMENT THIS AMENDMENT TO INTERLOCAL AGREEMENT made and entered into this the ________ day of __________________, 2022by and between the CITY OF WILMINGTON, a municipal corporation of the State of NorthCarolina(hereinafter, "City"), and NEW HANOVER COUNTY, a political subdivision of the State of North Carolina(hereinafter, "County"); W I T N E S S E T H: WHEREAS, the CITYand COUNTY entered into an Interlocal Agreementestablishinga joint workforce housing advisory committee(hereinafter, ILA); and WHEREAS, Wilmington City Council passed a Resolution on June 18, 2019 authorizing the Mayor to executethe ILA; and WHEREAS, New Hanover County Commissioners passed a Resolution on _________June 17, 2019; and WHEREAS, the CITY and COUNTY amended the ILA on September16, 2019; WHEREAS, the CITY and COUNTY now desire to amendthe ILA, pursuant to Section 8 of the ILA, for the purpose of expanding the scope of the Committee from workforce housingto affordable and workforce housing, defining the duties of the committee, and allowing for a designee of one representative. NOW, THEREFORE, in consideration of the mutualcovenantsand conditions herein contained, and for other goods and valuable consideration of the sufficiency and receipt of which is hereby acknowledged, the ILA is hereby amended as follows: Page 1of 3 1.Affordable and workforce housing as defined as that whichcosts no more than thirty (30) percent of gross total income for households earning betweenzero (0) and one-hundred twenty (120) percentof the area median income (AMI). 2.Section 3: Joint Committee3.1: Membershipis amendedas follows: the words, or designeeshall be added to Chair of the Community Relations Advisory Committee. 3.Section 3: Joint Committee 3.5Duties of Committeeis amended to include 3.5.5 Advisory CapacityTo recommend, in anadvisory capacity,to the Appointing Authority necessaryprocedures, programs, or policies to promote workforce housing. Exceptas modifiedby this Amendment2 to theILA, all of theterms, conditions, and covenants set forthin the above mentioned ILA and Amendment 1 to the ILA shall remain in full force and effect. IN WITNESS WHEREOF, the CITY has caused this Amendment to ILA to be duly executed in its name and behalf and the COUNTY has caused this Amendment to ILA to be duly executed in its name and behalf. (CITY SIGNATURES, COUNTY DIGITAL SIGNATURE PAGE,AND NOTARY TO FOLLOW) Page 2of 3 CITY OF WILMINGTON ___________________________ Bill Saffo, Mayor ATTEST: ___________________________ Penelope Spicer-Sidbury, City Clerk\[SEAL\] Approved as to form: ___________________________ John D. Joye, City Attorney STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER I, __________________________________, a Notary Public of _______________ County, North Carolina, certify that Penelope Spicer-Sidbury personally came before me this day and acknowledged that she is City Clerk of the City of Wilmington, and that by authority duly given and as the act of the Council, the foregoing instrument was signedin its name by its Mayor, sealed with its corporate seal and attested by herself as its City Clerk. WITNESS my hand and official seal, this _____ day of _____________, 2022 ___________________________ Notary Public My commission expires:____________ Page 3of 3 Applicants Applicants may be: For-profit corporations, partnerships, or sole proprietors; Private incorporated non-profit agencies with IRS 501(c)(3) orsimilar designation; or Public non-profit agencies and governmental agencies Applicants may not be individuals seeking to build an individual unit for their family. Eligible Activities The following areexamples ofeligibleactivities: Construction (including site work, including infrastructure,and soft costs) of new affordable single-family or multifamily housing units for sale or rent; Conversion/rehabilitation of existing residential and non-residential structure(s) for affordable single-family or multifamily housing units for sale or rent; Downpayment assistance for income eligible homebuyers; Tenant-based rental assistance; and Emergency repair of single-family units for income eligible clients. All activities must take placein New Hanover County. Staff will review applications that are in the rezoning process, however, staff will not recommend an applicant for approval if the site is not properly zoned for its intended or proposed use. Zoning must be in place, with proper documentation provided, in-line with the milestone schedule established by New Hanover County with the project applicant. Definition of Affordability To be consideredaffordableunits, units for sale must be sold to an eligiblehousehold, having a maximum sales prices as described in HUDTrust FundHomeownership Sales Price LimitsTable availableat the time of the opening of the RFP process. To be considered affordablerental units, units for rent must be rented as a rate not to exceed HUD Market Rent as described in HUDDocumentation System available at the time of the opening of the RFP process. Programs that provide rental assistanceto lower the cost of rent to the fair market rate will also be consideredeligible. 1 Project Priorities Strong preference will be based on the ability to create an immediate impact to New Hanover County residents. Other considerations include: Shovel ready to break ground prior to July 2023 Number of proposed new units Developer experience Amount of funding requested per workforce/affordable unit Leverage ratio Mixture of price-points Period of affordability Target AMI For-saleorrental product Funding constraints, individual project merits, and achievement of the desired mix of project types will all factor into the ultimate allocation recommendation. Preference will be given to projects that demonstrate intent to leverage other sources of debt,equity, or other funding prior to and beyond the WHSP requests. WHSP funding for construction projects are primarily intended to provide permanent financing, but acquisition or construction financingwill also be considered on a case-by-case basis. The WSHP construction funding is intended to provide gap financing for developments that leverage other public and private funding sources. Proposals for New Hanover County to provide the majority of project funding will be considered on a case-by-case basis. WHSP funding for non-construction projects will be determined during the contract process. Construction/Rehabilitation Evaluation Criteria /ƩźƷĻƩźğtƚƭƭźĬƌĻ tƚźƓƷƭ Project Viability Financial Feasibility30 Development Quality15 Development & Management Team25 New Hanover County Housing Goals Increase Stock15 Improve Stock10 Increase Access5 tƩźƚƩźƷźĻƭ Shovel ready nature(zoningandsite approval) Number of proposed new units Amount of funding requested per workforce/affordable unit Leverage ratio Mixture of price-points Period of affordability Target AMI For-sale or rental product 2 Project Viability Financial Feasibility (30 Points) Preference is given to projects that have a high probability of moving forward and leverage other sources reasonableness, evaluating and underwriting each application on a case-by-case basis. An updated budget is required once all funding sources are in place. Projects that have secured or seek to leverage funds from other sources, where eligible, will be given preference, and may include NCHFA programs, municipal funding sources such as the City of Wilmington, as well as leveraging private debt or charitable donations. Projects that have commitments of other funding at the time of application are preferred. Letters of support from other funding sources should be provided in this application. Funds available from New Hanover County are generally used to fund project permanent financing gaps. Unless the proposal states otherwise, the county assumes that the drawdown of its funds will take place after completionand lease-up of the units as a source of permanent financing. Applications for pre- development or construction financing will be considered on a case-by-case basis. Development Quality (15 Points) Projects will be evaluated upon the quality of the project design material selection and site considerations. Site mustbe zoned for proposed development; Final site plan approval; Material selections are of good quality, designed for normal maintenance and can be expected to perform well over the long-term; The site is suitable for the proposed development, with water, sewer, and electric service availableor available to connectwith adequate capacity to serve the site; and Subsidized units located within a larger development should be of comparable size and quality to the market rate units. Development and Management Team (25 Points) Consideration will be given to the capacity and experience of the development and management team, including: A proven track record of developing and maintaining workforce/affordable housing projects inside or outside of New Hanover County, with preference given to organizations who have completed projects in New Hanover County; If applicant has not completed a past project in New Hanover County, applicant should clearly demonstrate a successful track record completed multiple high-qualityworkforce/affordable projects outside of New Hanover County; Applicant should highlight experience maintaining long-term affordability for projects;and Evaluation of the creditworthiness and financial management of the developer or sponsor to ensure acceptable financial capacity to carry the project forward. 3 1 HUD Limits at FY 2023 WHSP Application Submittal 2022 HUD Income Limits for Wilmington, NC HUD Metro Area(EffectiveApril 18, 2022) AMIHousehold Size 12345 60% AMI$35,820$40,920$46,020$51,120$55,260 100% AMI$59,700$68,200$76,700$85,200$92,100 120% AMI$71,640$81,840$92,040$102,240$110,520 bƚƷĻʹ aĻķźğƓ źƓĭƚƒĻ ŅƚƩ ğ ŅğƒźƌǤ ƚŅ ŅƚǒƩ źƭ υВЉͲЏЉЉ 2 HUD Fair Market Rent FY 2022 Wilmington, NC HUD Metro FMR Area FRMs for All Bedroom Sizes EfficiencyOne-BedroomTwo-BedroomThree-BedroomFour-Bedroom FY 2022$814$988$1,164$1,545$1,992 3 Housing Needs Assessment 4 HudMaximumSales Price Limit FY 22New HanoverCounty Maximum Sales Price: $263,000 1 Source: https://www.huduser.gov/portal/datasets/il.html 2 Source: https://www.huduser.gov/portal/datasets/home-datasets/files/HOME_RentLimits_State_NC_2022.pdf 3 Source: https://planning.nhcgov.com/wp-content/uploads/2021/04/Bowen-Housing-Needs-Assmt-FINAL.pdf 4 Source: https://www.hudexchange.info/resource/2312/home-maximum-purchase-price-after-rehab-value/ 4