10.11.16 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.
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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
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661
4030
16,210
2f1,640
23,44
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30,240
32 332.0
34,400
456 488
586
677
756
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29,300
32,550
35,200
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732
846
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"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