06. 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