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02. February 2019 Special Mtg MinutesNEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE312 ASSEMBLY TheNewHanoverCountyBoardofCommissionersmetforaJointSpecialMeetingwiththeWilmingtonCity CouncilonThursday, February21, 2019, at3:03p.m. intheAndre’ MalletteTrainingRoomsattheNewHanover CountyGovernmentCenter, 230GovernmentCenterDrive, Wilmington, NorthCarolina. Memberspresent: ChairmanJonathanBarfield, Jr.; Vice-ChairwomanJuliaOlson-Boseman; Commissioner PatriciaKusek; andCommissionerRobZapple. CommissionerWoodyWhitewasabsent. Staffpresent: CountyManagerChrisCoudriet; CountyAttorneyWandaM. Copley; andClerktotheBoard KymberleighG. Crowell. CityofWilmington Councilmembers present: MayorBillSaffo; MayorPro-TemMargaretHaynes; CouncilmembersNealAnderson; CliffordBarnett, Sr.; PaulLawler; KevinO’Grady; andCharlieRivenbark. CityofWilmingtonstaffpresent: CityManagerSterlingCheatham; CityAttorneyJohnJoye; andCityClerk PennySpicer-Sidbury. ChairmanBarfieldandMayorSaffocalledtheirrespectiveBoardstoorderfortheSpecialMeetingreporting thatthepurposeofthemeetingistodiscussaffordable/workforcehousingandanyothertopicseitherBoard identifies. PRESENTATIONONRECOMMENDATIONSFROMTHEJOINTCITYOFWILMINGTON/NEWHANOVERCOUNTY WORKFORCEANDAFFORDABLEHOUSINGADHOCCOMMITTEE JodyWainio, ChairoftheJointCityofWilmington/NewHanoverCountyAffordable/WorkforceHousingAd HocCommittee, presentedthefollowingrecommendationsofthecommittee: AffordableHousingAdHocCommitteeOverview: 13committeemembersappointedbyCityCouncilandCountyCommissioners TwostaffliaisonsfromCityandCountyalongwithfivesupportpersonnelforspecificdata Met12timesoveraseven-monthperiodwithover30hoursofworkinvolved InvestigatedBestPracticesacrossNorthCarolinatoincludeAsheville, Durham, Charlotte, and Raleigh Interviewedkeyplayersinthehousingarenafromlocalandothercommunities Designedaphasedapproachplanforourcommunitybasedonthesefindings Whyisitimportant: Communitybenefits; communityvalues; employerbenefits; purequalityoflife; economic development ShortTermRecommendations (0-6months): ReviseCityandCountyLandUseOrdinancestoaddorimproveAccessoryDwellingUnits, and densityandheightrequirementsandregulations EstablishaPermanentAdvisoryCommitteeonAffordable/WorkforceHousing Conductahousingstudyandastatisticallyvalidopinionsurvey FundastaffpositiontosupporttheeffortsofthePermanentHousingAdvisorycommittee Supportapublicawareness, akamarketing, campaign; utilizingapublic relations/marketing consultant Mid-TermRecommendations (6-18months): EstablishanAffordableHousingFund City- andCounty-ownedredevelopmentprojectsincludeanaffordablehousingrequirement TheCityandCountyshouldidentifywaystostreamline/expeditethepermittingprocess LongTermRecommendations (18Monthsandover): Supportexistingfinancialliteracyandhomebuyereducation ExplorewaystoencourageCapeFearPublicUtilityAuthority (CFPUA) todeferfees, offerpayment plans, andrebatesforaffordablehousingdevelopers EachjurisdictionutilizessyntheticTaxIncrementFinancing (TIF) asameansofsupportingthe developmentofhousingthatisaffordable CityCouncilandBoardofCommissionersencouragetheuseofthe4% LowIncomeHousingTax Creditbondprogram, withbondstobeissuedbytheHousingAuthority. Thiswouldrequireno financialbackingbyeithergoverningbody. ThePermanentHousingAdvisoryCommitteeshouldresearchtheuseofLimitedParticipation Bondstosupportdevelopmentofaffordablehousing. WinstonSalemhassuccessfullyutilizedthis bond. CurrentStatistics: Thewageneededtoaffordamodesttwo-bedroomapartmentatfairmarketvalueinWilmington is $39,720/year Nearly50% ofareaworkersearnlessthan $40,000/year 28% ofworkersNewHanoverCountyareemployedinthefoodserviceandretailbusiness, earning anaverageof $22,698 NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE313 Wilmington’saveragerentpricesincreasedby3.4% from2017to2018comparedtothenational averageof1.5%, evenoutpacingthetraditionalhighrentmarketslikeNewYorkCityandSan Francisco Thereisasupplyshortageofexistingaffordablehousing TwoYearsLater – CurrentPriorities: HousingStudy/PublicOpinionSurvey: HousingStudy - Requiresfunding, approximately $30,000fromeach (CityandCounty) Somedon’tfeelweneeditasweknowthereisaproblem Providesuswithconcretenumberstomeasuresuccessofimplementedprograms - Scorekeeping Helptogainpublic (andprivate) support Eitherway, thenumbersareneeded PermanentAdvisoryCommittee: Establishesownershipandinvolvementinthecommunity Givespublicinputwithoutafightinfrontofpoliticalgroups Relievestheperception (andrealityinsomecases) thatdecisionsarepoliticallymotivated AffordableHousingFund: Needaconsistentfundingmechanism, butfornow, let’stalkaboutwhatwecoulddowith 500,000 Providesleverageinthecommunitybyofferingmoneytoanumberofprogramsanduses Downpaymentassistance, nointerestloansforprojects, infrastructurecostreimbursement 1,000/monthone-bedroomapartmentsarenothardtofindandarguablynotaffordable PublicAwarenessCampaign Changethefaceofaffordablehousing It’samarketingthingtogainpublicsupport Cost: $50,000splitbetweenCityandCounty (CommunityPartnershipslikeNHRMC, CapeFear Realtors, willoff-setsomeoftheseexpenses) Howcanweworktogether: Diversityofhousing, toincluderentalandhomeownership, thatworkinghouseholdscanaffordis neededinthecountyandthecityinnewconstruction, infillandrehab EstablishtheHousingFundtoprovidefundingfornumerouspurposes (letthePermanentAdvisory Committeemakerecommendationsonhowitwillbeused) Approvetheexpenditureofcurrentlybudgetedfunds $60,000fromtheCityand $50,000fromthe CountyforStudy, PublicAwarenessCampaign, andOpinionSurvey EstablishthePermanentAdvisoryCommitteeasitiscriticalandwillconsiderrecommendations fromawiderperspective InresponsetoBoardquestions, Ms. WainiostatedthattherecommendationswereprovidedinApril2017. TherecommendationofrevisingtheCityandCountyLandUseOrdinancestoaddorimproveAccessoryDwelling Units, anddensityandheightrequirementsandregulationshavebeencompleted. Asfarastheaffordablehousing fundinvariouscities, somewerevotedonbyabond, suchasAshevillewhichwasforabout $25millionandisused mainlyfornewconstruction. Withahousingfund, thepermanentadvisorycommitteewouldmakethe determinationifthedeveloperhasmettherequirementstoaccessthefundsandifso, staffwoulddistributethe funds. Durhamhasapermanenttaxofonepennythatgoestowardsahousingfund, whichhasgenerated $2.8 million. Durham’sgoalistopreserveorcreate1,150unitsoverfiveyearsandislookingtoaddasecondpenny. Vice-ChairwomanOlson-Bosemanarrivedat3:11p.m. Abriefdiscussionwasheldaboutinfrastructurecostsandhowtoreducethosecostsfordevelopers with CapeFearPublicUtility (CFPUA). ChairmanBarfieldstatedhehopestheelectedofficialswhoserveontheCFPUA BoardcanhavefulldiscussionswiththeotherCFPUAboardmembersonhowtoincentivizedeveloperstoinclude affordablehousingintheirdevelopmentsinsteadofplacingroadblocksintheway. Ifthecostscouldbereduced, a housingprojectwillbemoreaffordable. CouncilmemberRivenbarkstatedthatwhilehedoesnotdisagree, thecost fallsontheratepayerandisnottaxable. CFPUAcannotlevyataxliketheCountyandCity. Abriefdiscussionwasheldaboutfundingapermanentstaffposition. CommissionerKusekstatedthatitis importanttofundapermanentstaffposition. Inthisfiscalyearbudget, theCountyfundedhalfofapositionandit didnotcometofruition. SheunderstandstherehasbeendiscussionabouttheCity’sdesiretodoahousingstudy versustheCounty’sdesiretofundaposition. However, shedoesnotseewhybothcannotbedoneinaconcurrent manner. ChairmanBarfieldagreedwithCommissionerKusekstatingwhilethestudywillprovidethenumber information, havingastaffpersoninplaceatthesametimewillallowactiontobetaken. CommissionerZapple expressedsupportofneedingafulltimeperson. Hewouldliketoseemoreinputonthesustainabilityofthefund. Inresponsetoquestions, Ms. WainiostatedthattheCityofAshevillehasthreeorfourpermanent employeeshandlingthework. ThemodelthatwasusedinthepresentationtwoyearsagowaswithCeciliaPeers whowashousedintheCouncilofGovernmentsandthatmodelthatmightwork. InresponsetoquestionsaboutthefourpercentLowIncomeHousingTaxCreditBondProgram, Wilmington HousingAuthority (WHA) ChiefExecutiveOfficerKatrinaRedmondstatedthattheNorthCarolinaHousingFinance NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE314 Agencyreceivesforthestatetheallocationoflowincomehousingtaxcreditsthatcomesfromthefederal government. Itentitlesthepurchaserofthosecredits, whicharesoldontheopenmarketplaceusuallytobanks, investmentfunds, etc., togetataxcreditforaperiodof10yearsandthemoneygoesintoaproject. Therearetwo typesoftaxcredits. Thereisaninepercenttaxcreditwhichisextremelycompetitive. However, whenlookingatthe amountofequityitprovides, itreallycutsdownontheinitialcostofthatproperty. Thereisalsoafourpercenttax credit, whileeasiertoobtain, hasbeenveryunderutilized. However, fourpercentofthedealisnotalotofequity intothedeal. Withthefourpercent, ataxfreebondcanbeaddedtothatandtheWHAcanissuethose. Twoyears ago, WHAissued $14millioninshorttermbondsforconstructionand200unitsofaffordablehousingcameoutof it. WHAcandothiseverywhereinthecountyandthecity. Inresponsetoquestions. Ms. Redmonexplainedthatthefourpercenttaxcreditsarenotbeingused becauseprivatedevelopers, inparticular, arelookingforalargeramountofmoneythatdoesnothavetheattached bondbecauseitdoeshaveaninterestratethatmustbepaid. However, thebondsaretaxfreesotheycostless. Whenmatchingthetwotogetheritgivesadeveloperalotofleverageandhasbeenverysuccessful. Itisnotused muchinpartbecausepeoplearenotawareofit. The200unitsshereferencedwereoffofEmoryStreetonthewest sideofCreekwoodApartmentscalledCypressCove. Theyarethreestoryapartments, allinonecomplex, andare leasingnow. CouncilmemberO’Gradystatedthatregardingthediscussionaboutaonepercentpropertytaxgoingto affordablehousing, ifthatisdonethenthesurveyaswellasthepublicawarenesscampaignhavetobedone. He alsosuggesteddevelopingasystemtoaddresspeopleaskingformoredensityandhigherzoning. Thereneedstobe atradeoffforpeoplerequestingmoredensityandhigherzoningbecausetheCityandCountyhaveaproblemandit needs tobepaidfor. HefeelsthemoneyofferedtotheCitybyTributePropertiesneedstobeaccepted. The developerdidnotaskforanythinginreturnfromtheCity. Healsothinksanaspectofaffordablehousingthathas notbeendealtwithishowtoexpandpublictransportation, makeitmorereliable, morefrequent, andspreadmore throughouttheregion. Itisan underfundedsystemandwithoutpublictransportation, lowincomepeopleare basicallybeingtoldtospendalargepartoftheirincomeontransportationtogettowork. Abriefdiscussionwasheldabout affordablehousingandworkforcehousing. Councilmember Barnett statedthatthiswouldbebuildingmulti-incomehousingnotpublichousing. MayorPro-TemHaynesstatedthata goodstartwiththeawarenesscampaignisratherthansayingaffordablehousingthatitshouldreallybecalled workforcehousing. Shebelievesamajorityofpeopledosupportthattypeofprogram. Ms. Wainioagreedthata publicawarenesscampaignwouldbehelpful. CouncilmemberRivenbarkstatedthatthereshouldnotbeanymisconceptionaboutsubsidizedhousing becausepeopleinsubsidizedhousingarecitizensjustliketherestofus. Subsidizedhousinghastakenablackeye overtheyearsandtherehavebeensomehorribleconsequencessuchassomedevelopmentsbecomingheavily Section8housing. Theprogramisbettermanagednowandthereareplanstoreducesomeofthepublichousingin town. Thepossibletopissueistheexpectationofthedevelopmentcommunitytosolvethisproblemwhileit’s continuallybeingmadedifficultforthemtospendtherequiredmoneytogetaprojectreadytogo. Itisnottheir responsibility. Hedoesnotunderstandwhyourorganizationsarenotmakingitpossibleforthemtobuild workforce/affordablehousing. Thesetypesofdevelopmentsneedtobesprinkledthroughoutthecounty. Itwould makethistownstrongerandthegreatergoodhastobedoneforthecountyasawholeorelsethissame conversationwillbehadtwoyearsfromnow. Hefeelsitistimetomoveforward. Inresponsetoquestionsregardingthedifferencebetweenaffordablehousingandworkforcehousing, Ms. Wainiostatedthat80% orlessoftheaveragemedianincome (AMI) iswhatHUDusesforalotoftheirprograms. Theworkforceisactually80% to120% inAMI, whichishowitwouldbedefinedinnumbers. 50% ofareaworkersin thiscommunityareearning $22,000orless, whichistheretail, tourismjobs, etc., soelectedofficialsarerepresenting 50% ofpeoplewhentalkingaboutcreatingmoreopportunitiesfortheworkforce/affordablehousing. Councilmember AndersonstatedthattheCityandCountyhaveworkedhard, butbothneedtowork togetherwiththetaskforce. ChairmanBarfield statedinregardtothetermofaffordablehousing, nowthateveryoneisinthesame boat, peoplegetit. Affordablehousingiswhatapersoncanaffordbasedontheirpaycheck. Typically, arealtorsays apersonshouldnotspendmorethan30% oftheirincomeonhousingandifspendingmorethanthat, thenthe houseisacostburden. TheCountyraisedtheminimumwageforitsemployeesto $15perhourwhichisjustover 31,000annually. Basedontoday’spresentations, toaffordatwo-bedroomapartmentapersonneedstomakeat least $37,000versus $31,000sothereisstillworktobedoneinthecountyonthelivablewage. Heisgladthis discussionisoccurringandthatpeopleareunderstandingwhataffordablehousingreallymeans. Inresponsetoquestions, Ms. Wainiostatedthecommitteelookedatanumberofwaysothercommunities areutilizingincentivesorotherwaystoencouragetheprivatesectortobuildmoreaffordablehousingunits. One thingthatshouldnotbedoneisconcentratingpoverty, whichiswhathasalreadybeendiscussed. Multi-income communitiesserveabetterpurposeinthatregard. Someareashavedensitybonuseswhereitisavailable, butithas neverreallybeenutilizedorithasbeengiventothedeveloperswithnostringsattached. Itisamatterofgetting tougheronthenumbers, andifadeveloperwantstoincreasethedensity, thenaffordableunitshavetobeprovided. NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE315 ChairmanBarfieldstatedthathewasundertheimpressionthattheCountycannotrequireinclusionary zoning, butitcanincentivizethedensitypart. ACTIONSBYTHECOUNTYSINCETHEREPORTWASFIRSTPRESENTED NewHanoverCountyCommunityDevelopmentPlannerJuliaSanturepresentedthefollowinginformation regardingactionsbytheCounty: WorkforceHousingUpdate: Countyisnoteligibletoreceiveannualentitlementfundingfromthefederalgovernmentfor housingprograms. Countyhasfocuseditsattentiononthecommittee’srecommendationtoupdatethedevelopment code. BeforeHurricaneFlorence: DevelopmentCodeUpdate: FivenewresidentialdistrictsadaptedfromtheCityofWilmington’sR-5andResidential Multi-Familydistricts Greaterby-rightdensitytoallowforthefullrangeofdensitiesenvisionedin ComprehensivePlan Morediversityinhousingtypes, asitisanticipated AccessoryDwellingUnitswillbe allowedinR-5developments, justlikeinthecity Planningstaffalsoplanstoworkwithpropertyownersonavoluntarybasistoidentify andrezoneparcelswherethenewdistrictsmightbeappropriate COAST: streamlinedpermittingfordevelopment JointlyFundedHousingStaff: $50,000budgetedinFY19 HabitatforHumanityInfrastructurePartnership: waterandsewerservicebroughtto27new workforcehousingunitsand14existingunitsoffofGordonRoad, whichresultedin $212,463 investedinworkforcehousing. HousingGap: 20,000unitsthroughouttheCounty, includingtheCityandbeachtowns AfterHurricaneFlorence: HurricaneFlorenceRecoveryCoordinationOffice: Elevationgrantstoprotectandpreserveworkforceandaffordablehousing ActivelyadvocatingforCDBG-DR Leveragingpublicproperty: PropertyConveyanceforWorkforceHousingPolicy Fourparcelsvaluedat $174,400alreadyconveyed Regardingtheelevationgrant, Ms. Santurestatedthat throughtheHousingMitigationGrantProgram HMPG), whichisadministeredfromFederalEmergencyManagementAgency (FEMA) totheStatethentothe County, theCountyappliesonbehalfofhomeownersiftheywanttoelevatetheirhome. Staffexplainstheprocess, howthefundingworks, andtheapplicationisthensenttotheStateandFEMA. Bothentitiesrunthecostbenefit analysis, whichishowtheydeterminewhoiseligiblefortheprograms. TheCountythenassistsinadministeringthe granttothepropertyowners. Thetotalinvestmentoverthelast18monthsinworkforce/affordablehousingisjust over $430,000. ChairmanBarfieldstatedthatatotalofeightlotswereconveyedtoCapeFearHabitatforHumanity Habitat) fromtheCountywhichwereleftoverwellsites. Itisgreattobeabletodonatethoselotsatnocostand havesomethingthatistaxable, whileprovidingsomethingthatisaffordable. TheCountyisalsopartneringwith HabitattoprovidewaterandseweroffofGordonRoadfortheDanielBooneTrailprojectwhichwillhelpmakethose homesaffordable. ACTIONSBYTHECITYSINCETHEREPORTWASFIRSTPRESENTED SuzanneRogers, CommunityDevelopmentandHousingPlannerwiththeCityofWilmington, presentedthe followinginformationregardingactionsbytheCity: CityofWilmington – HousingPrograms: ComprehensivePlan – adoptedbyCityCouncilincludeshousingpolicies: DiversityofHousingOptions; Affordability; SpecialNeedsHousing; FairHousing; Universal Design; andAginginPlace http://flipbook.wilmingtonnc.gov/pdt/policies/#64 HousingLoanPrograms: LoanstoHomebuyersorHomeowners: HomeOwnershipPool (HOP) andowner-occupied rehabilitationloan LoanstoDevelopers, Landlords: Rentalrehabilitationincentiveloanandaffordablehousing production/developmentloans UnitsFY18todate: July2017 – January2019completedorinprogress: SingleFamilyNewConstruction: 3 NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE316 Multi-Family/PSHUnits: 28 HomebuyerMortgage/DownPaymentAssistance: 23 Owner-OccupiedSingleFamilyRehab: 10 Multi-FamilyRehab: 52 RentalRehabIncentiveLoan: 2 HomeOwnershipPool: stBankPartners (CCU, 1 Citizen, BB&T): $1,58,685 Todate: 20HOPLoans: $2,867,915 September14, 2018addedDPAtoHOPprogram HousingRehabilitationOptionsforHomeowners: programforhomeownerslivingwithinthecity limitstofixuptheirhomes. Objectiveistopreserveaffordablehousingstockbyprovidingan affordableloanforhousingrepairstolow-to-moderateincomehomeowners: Todate: $347,923closed; twoapprovedinJanuary2019; twoacceptablebids; 11inprocess RentalRehabilitationIncentiveLoanProgram: Intentoftheprogramistobringbadlydeteriorated ordilapidatedhousingunitsbackintotherentalhousingstock: Upto $125,000perunitat0% upto360months Fourborrowerspre-qualified; twoloansapproved $209,000 HousingPartners: WHFD-WillowPondApartments: $665,674HOMEInvestmentPartnershipsProgram (HOME) funds: Substantialrehabilitationof40-unitmulti-familyaffordablerental Multi-yearfunding: $2.35millionproject CFCommunityLandTrust - MarsdenAlley: $144,000: Carry-overHOMEfunds ConstructionSingle-Family TammyLynnFoundation – BeauregardDrive: $80,000: CDBG: $700,000project Rehabilitationsingle-familyhousewithfourunitsPermanentSupportiveHousing LakesideReserve: $300,000home: 3.3millionprojectConstructionPhaseII 24unitsPermanentSupportiveRentalHousing (PSH) CFHFH - $123,156CDBG: Down-paymentassistanceandinfrastructure CapeFearHabitatwillacquirelotsorhousesforredevelopment/rehab6homesfor homeownershipunderHabitatmodel/financing Carryingover $86,916HOMEfunds CFHFH/WARM: $128,335: FundsoriginallyappropriatedtoCFHFHacquisitionFY11-12 203,880andFY13-14 $105,000. FundsoriginallyappropriatedCFHFH/WARMFY12-13 150,000andFY13-14 $81,000. LandTrust $21,757tosupporthousingdelivery; noteprovidedforconveyanceoftwo foreclosedproperties, withloansforrehab/reconstructionand12% developerfee, plus anyremainingsalesproceeds Cityhassupportstart-upLandTrustwith4plusyearsfundingforadmin. at $261,130 LandTrustandHabitatfinalizingeightunitsatGideonPoint: HOMEfundsforacquisition at $220,000 CHDOHousingPartners: $132,885Required15% HOMEset-aside: AMEZHousingDevelopmentCorporation: $180,000carry-overHOMEFunds: Construction909GraceStreet, SingleFamily CapeFearRegionalCDC - $383,000HOMEfunds: thMajorrehabilitation1108North5 Avenue DuplexRental FY19Funding: PriorYear TotalAvailable RevolvingLoan FY19 FY19 HOPFederal $ 557,772 $ 100,896 $ 658,668 HOPGeneralFund $ 688,073 $ 60,000 $ 748,073 Owner-OccupiedRehabFed. $ 1,061,699 $ 1,061,699 Owner-OccupiedRehabGF $ 105,134 $ 340,000 $ 445,134 RentalRehabIncentiveFed. $ 286,255 $ 286,255 Afford. HousingDevelopmentFed. $ 371,767 $ 990,927 $ 1,362,694 Total $ 3,070,700 $ 1,491,823 $ 4,562,523 LinkstoCityofWilmingtonCommunityDevelopmentandHousingInformation: AssessmentofFairHousing: https://www.wilmingtonnc.gov/home/showdocument?id=3433 HOPandHomeownerRehabilitationLoanPrograms: https://www.wilmingtonnc.gov/departments/community-services/housing NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE317 AffordableHousingDevelopment (RentalandHomeowner): https://www.wilmingtonnc.gov/departments/community-services/affordable-housing- development 2018HUDIncomeLimits: Wilmington, NCHUD % 2018HUDLowIncomeLimitsMetroFMRHMFA Area Wilmington, 1 2 3 4 5 6 7 8 NCHMFA Person Person Person Person Person Person Person Person Median: 100% $50,563 $57,750 $65,000 $72,200 $78,000 $83,750 $89,563 $95,313 72,200 80% $40,450 $46,200 $52,000 $57,750 $62,400 $67,000 $71,650 $76,250 60% $30,338 $34,650 $39,000 $43,320 $46,800 $50,250 $53,738 $57,188 50% $25,281 $28,875 $32,500 $36,100 $39,000 $41,875 $44,781 $47,656 30% $15,169 $17,325 $19,500 $21,660 $23,400 $25,125 $26,869 $28,594 Inresponsetoquestions, Ms. Rogersstatedthatpartofherstaffdoesoverseetheprogramsandtracked howmanyaretakingadvantageoftheprograms. FortheHousingRehabilitationOptionforHomeownersprogram, thereare11applicationsinprocessandeightloanshavebeenclosedforatotalof $347,923, twoapprovedandtwo withacceptablebids. Sincethestorm, herofficeisexperiencingsomedelayingettingbidsbecauseofthelarge demandforcontractors. Programsarepromotedthroughsocialmedia, grassrootsoutreach, workingwithchurches, andotherorganizationstodopresentations. FortheHousingRehabilitationOptionforHomeownersprogram, a lunchandlearnsessionisheldwithchurchesandorganizationstotargetpeoplewhomaybeeligible. Abriefdiscussionwasheldabouttherebeingplentyofapplicants, butnotallqualifyfortheprogram(s). Ms. Rogersexplainedthatoneofthechallengeswiththis, especiallywiththehomeownerrehabilitationprogram, is thattheapplicantshavetohaveacleartitle. Oftenpeoplehaveinheritedahomewhichisjointlyownedanddonot holdacleartitle. Thisispartofthediscussionduringthelunchandlearnsessions. Manyapplicantsareelderlyand discussionisheldabouttheimportanceofplanningandwhatitmeanstotransferaproperty. Inresponseto questionsaboutafinancialliteracyprogram, Ms. Rogersstatedthatforthehomeownershipprogram, theapplicants arerequiredtotakeasix-hourhomeownereducationclass, theyreceiveacertificate, andcannotapplyforthe programwithoutthat. Somebankswillsendpeopletoparticipateinthatprogramaswell. Staffmembersalsohave theircounselingcertification. Inresponsetoquestionsaboutwhatoccurswithownersafterthe15-yearwindowhaspassed, Ms. Rogers statedafterthe15years, ownerscanrenttheirpropertytowhomevertheywant. Duringthe15years, thereisa restrictiontorentthehomestolowerincomepeopleat80% AMIorbelow. Staffmonitorstheprojectsandprovide annualinformationtotheCity. Housevisitsarealsodonetomakesuretherearenoviolationsofthenote. Abriefdiscussionwasheldabouthowaunit, whencommittedtoaffordablehousing, hasatimelimitonit. CouncilmemberO’Gradystatedtherearetwosidestoallofthis. Thecashallowsthedevelopmentforhousingthat canbemorepermanentlycommittedtoaffordablehousingandthatisthetradeoff. However, thebadsideofitis thegreatestsourceofdevelopingwealthishomeownership. Ifapersonbuysanaffordablehousewithalimiton howmuchtheycanearnfromit, it’sneverreallygoinghelpbuildwealthbuiltforhomeownershipunlesstheperson cangettheirincomeupenoughthattheycouldmoveoutandbuyanotherhouse. CouncilmemberRivenbarkstatedoneofthegreatthingsaboutWillowPondwhenitwasdevelopedwas thattherentsarenotsetbasedonincome. Acertainamountofthepaymentwassetasideandoveraperiodof threetofiveyears, enoughmoneywasbuiltupforapersontohaveadownpayment. Heisunsureifthatisstillthe case. DISCUSSIONOFELECTEDOFFICIALSREGARDINGNEXTSTEPS/PRIORITIES MayorPro-TemHaynes statedthatshewouldliketoseetheestablishmentof the permanentjoint committee andhire apermanentperson. Thesurveycanbeestablishedoncethatisdone. Thepermanent committeecanprovidebothelectedbodiesguidanceonhowtomoveforwardafterthesurveyandreceivingpublic inputisdone. ChairmanBarfieldagreed. InresponsetoquestionsabouttheEDZDzoningandincentivesordensitybonuses, PlanningandLandUse DirectorWayneClarkstatedtheCountycanprovideviathezoningordinancesincentivesordensitybonusesin exchangeforaffordableunitsifthatisthedirectionoftheBoard. Thereismoretothemixeduseddistrictsthanjust thedensitybonus. TheEDZDzoninghasotherchallengesrelatedtoenvironmentalaspectstoasiteandthetypeof site. Countystaffwillbebringingforwardthissummereightzoningdistrictsthatarebasicallycityzoningdistricts thatallowmorediversityincludingtheR-5zoning. WhatisnotprovidedinthefirstphaseareCountyspecificmixed usedistricts. StaffdoesnotwanttowastetheBoard’stimeputtingforwardadistrictthatnoonewillreallyusethe incentivefor. Rightnow, amajorityoftheCountyiszonedfor2.5unitsperacreorless. SinceMr. Clarkstartedwith theCounty, mostpeoplearenotgoingoverfiveunitsperacre. HethinkstheCitywouldnotseethoseashighdensity, buttheCountyconsidersthoseashighdensityspecialusepermits. Itisnotsomethingthatcanbedonequickly, but again, itcanbedoneifthatisthedirectionoftheBoard. NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE318 AbriefdiscussionwasheldabouttheproposedprojectonHookerRoad. Inresponsetoquestions, Cityof WilmingtonPlanning, Development, andTransportationDirectorGlennHarbeckstatedthatregardingtheHooker Roaddevelopment, theCity’scomprehensiveplancallsfordensity, butnotjustanywherewhichisaproblem. One ofthebiggestconcernsheardinthecityistraffic. IftheCityapproveshighdensityprojectsanywhereandtheyare notnearservices, transit, bikepaths, oranyreasonforpeopletojustgetintheircars todriveeverywhere, it exacerbatesthetrafficproblem. WhiletheCitystafflikesdensity, andgooddensityisofferedintheCitylimits, it doesnotgetapprovedforjustanywhere. HeknowstheCountytriedinrecentyearstorelaxitsaccessoryhousing standards. However, itdidnotgetasmuchtractionashopedandhedoesnotbelieveitwentforwardbutthinksit iscomingbackagain. InapresentationherecentlymadetoCityCouncil, hebelievesaccessoryhousingcanbeabig benefittosomeoftheaffordablehousingissues. Forexample, ahomeownerinForestHillsrecentlyaskedhimfor anupdateontheaveragerentalrateforagarageapartmentinthatarea, whichisabout $800permonth. Although itisnotatwo-bedroomapartment, ifyoudothemathof30% forsomeone’shouseholdincome, thatissomewhat meetingtheaffordablehousingthreshold. Inresponsetoquestionsaboutequatingdensitywithaffordability, Mr. Harbeckstatedthebiggest differenceinourregionislandcost. LaborcostinPender, Brunswick, andNewHanovercountiesareallthesame. Materialcostinthosecountiesareallthesameaswell. Therewillbearelationshipbetweendensityand affordability. Inlookingatprojectswithhighdensity, allfactorsofdensityhavetobeassessed. Highdensityhousing willcontinuetoaddtothetrafficproblemsifthereisnotsomerelationshiptoservices. InregardtotheproposedprojectonHookerRoad, Councilmember Rivenbarkstatedthereisalreadya mobilehomeparkonthepropertysothereisalreadyhighdensitythere. IftheCity’splandidnotwork, theCity needstoquitplayingbecausethatwasgoingtobe, andhopefullyitcanbemoreworkforcehousingthere. Ifthe projecthadcomebeforetheCityCouncil, hewouldhavebeeninfavorofit. Theseneighborhoodsneedtobe walkableandlikable, buttheconcernisveryfocusedoncars. HookerRoadisaconnectorstreettoWrightsville Avenueandtheneighborhoods surroundingUNCW. Theprojectwouldhavereplacedanexistinghighdensity developmentandisamissedopportunity. Mr. Harbeckstatedthathedoesnotthinktheprojectiscompletelydone anditisstillunderdiscussion. CitystaffsupportsCouncilmemberRivenbark’sstatements, butistryingtofindthe correctthebalancebetweenwhatiscompatiblewiththeneighborhoodandgoodforthedensity. Councilmember O’Gradystatedhethinksthecommitteewouldagreethatlandcostisthebiggest impedimenttoaffordablehousing. Hethinksthatiswhyfundingisalargeportionoftherecommendationbecause thatistheaccumulationofmoneytosubsidizethelandacquisitionsoanaffordablehousecanbebuilt. Intheend, findingawaytofunditiswheregovernmentdoesitsbest. TheCityalreadyhassomeonewhowantstogiveitmoney andtheCityshouldacceptit. However, waysneedtobefoundtoincentivizepeoplewhocomeforwardtohave thembewillingtomakecontributionstothat. TheCityshouldrevisitdensityincentivesastheonlyonesavailable aredowntown. Mr. HarbeckstatedthatCitystaffhasdoneadensityanalysisofrecentdevelopmentsintheCity. Itwas discoveredthattheCityisofferingmoredensitythanitwantsanditisdifficulttoofferanincentivewhendensities thatarealreadyavailablearenotbeingachieved. Themarketdoesnotdemandthelevelofdensitybeingoffered. Assuch, buildingisdonebelowthedensity, whichisachallenge. Inlookingatthenewlanddevelopmentcode, one itemstaffisexploringisamodificationtomultifamilydistrictstohavewhatiscalledanopt-indistrictwhichisutilized inCharleston, SC. Anopt-indistrictiswhereifadeveloperwantsthatextradensity, theyoptinvoluntarily. Under NorthCarolinastatelaw, extradensitycannotberequiredbutitcanbemadeavailableasanopt-indistrict. In responsetoquestions, Mr. Harbeckstatedthatcontributingtoanaffordablehousingfundispartofthistypedistrict. TheCharlestonopt-indistricteitherprovidesaffordablehousingorafeecanbepaidinlieuofit. Councilmember O’Gradysaidinhisopinionthemoneyprovidesmoreflexibilityandlonger-termaffordability. InregardtoProjectGrace, ChairmanBarfieldstatedhewouldlikeaconversationtotakeplacewiththe developeraboutaffordableunitsbeingincludedintheresidentialportionsothattheaveragepersoncanaffordto livedowntownlikeeveryoneelse. Whileitmaynotgaintractionwiththedeveloper, itisworththetimetodiscuss it. Also, theCountyManagerhasbeengivendirectiontodisposeofthe15acresoflandintheWrightsboroareaoff ofCastleHayneRoad. ItwouldbeagoodmovefortheCountytopartnerwiththedeveloper, ratherthansellingthe land, tofindawaytoputinsometypeofurbanmixedusewithaffordableunitsbuiltintoit. Thereisageneral statutethatsaysundertheproceduresandstandardsestablishedbythecounty, acountymayconveypropertyby privatesaletoanypublicorprivateentitythatprovidesaffordablehousingtopersonsoflowormoderateincome. Thecountyshallincludeaspartofanysuchconveyancecovenantsorconditionsthatassurethepropertywillbe developedbytheentityforthesaleorleasetopersonsoflowormoderateincome. Inthiscase, theCountymaybe headingtowardstheconversationandwasgoingtodisposeofthelandanyway. IftheCountycanpartnerwiththe developer, sellitatalowcostandletthosedollarsbetransferredtothebuyer, itwillbesimilartoasituationlike whatoccurredwiththeoldDoveMeadowsdevelopment. ItwouldprovidetheCountytheabilitytohelpwiththe affordablehousingconversationandalsoputtheCountyinthegame. TheBoardcanconsidertheproposalatan upcomingmeeting. CommissionerZapplesaidheisinabsoluteagreement. CommissionerKusekstatedthereisaneedtolookforwaystodothiskindofthing. Whilesheunderstands theconversationaboutthetransportation, shethinksthefocusneedstobeononethingatatime. Thecommittee putforwardtherecommendationstwoyearsago. Shewantstheelectedbodiesandstafftoputsomethingtogether tomoveforwardonwhatispossibletomakesomeprogressandmeetagainformorediscussion. NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE319 MayorSaffostatedthatthereisapproximately2,000acresleftintheCity. MostofitisnearRiverLights, theCameronproperty, andnearIndependenceDriveandShipyardBoulevard. It’salreadyunderdevelopmentand veryexpensive. Theobviousissueistheestablishingofahousingfund. Regardlessofwhatitiscalleditissubsidized. Itwillbeachallengetogetitfromadeveloper. Ifeveryonehereisreallyserious, thenithastobeputtothevoteof thepeopleandputitupforabondbecauseitwillsurvivethepoliticalwinds. Thereseemstobealotofsupportfor it, butifnotthepeoplewillturnitdown. Hefurtherstatedthattheremustbeahousingstudyaswellasthe establishmentofapermanentcommitteeinordertosellittothegeneralpublic. ChairmanBarfieldstatedthatheagreeswithMayorSaffointhatthehousingstudyisneededtoobtainthe specificnumberstoshowthecommunitywhatisneededandhowitisneeded. Whilevolunteersaregreat, afunded staffpositionisneededforthis. Therealsoneedstobesupportforapubliccampaignbecauseofthemisinformation inthegeneralpublic. HeunderstandsthechallengesintheCountyandCity. Hedoesbelieveintheaccessory structuresanditisafastwaytodothethingsbeingdiscussedtodayandtherewillbeotherchallengestothat. He looksforwardtothatdiscussionwhenitisbroughtforward. Hebelievesthereareparticularthingsthatallcanagree onandifthegroupcanleavetoday’smeetingwiththoseactionitemsbeingtakenon, thenmovementcanbetaken toanotherphase. Hewouldliketohaveagreementontheseitemsandthenreconvenetodiscussthefunding, which isthebigthingifadentisgoingtobemade. CommissionerKuseksaidthestaffperson, thestudy, andthepubliccampaignhavetobefundedandit shouldbedecidedtodaywhofundswhatandthepeoplewhocanmakethosedecisionscandoitduringthismeeting. Thepermanentcommitteedoesnotneedfunding. Inresponsetoquestions, CountyManagerCoudrietstatedthattheCountyisinapositiontoproceedwith hiringastaffpersonusingthemoneytheBoardhasappropriated. TheCountycanworkwiththeCityManager’s officetodeveloparesolutiontobringforwardandestablishthepermanentcommittee. Oneofthefirsttasksforthe staffpersonandthecommitteewouldbetomoveforwardwithdevelopingthestudyandpublicopinionsurvey. He thinksthosetwoitemscanbeaccomplishedbytheSpring. FromastaffperspectivespecifictotheBoard, oncea staffpersonisidentified, staffcanbringforwardaproposalconsistentwithwhattheBoardoutlinedaboutthe dispositionofWrightsboroPark. ItisapolicydecisiontheBoardhasalreadymade. Fromastaffperspective, the BoardalreadyhasmoneyinmovementandhethinksbetweenhisofficeandtheCityManager’soffice, staffcould quicklyaccomplishwhathasbeenidentifiedbythetwoelectedbodies. ChairmanBarfieldaskediftherewasgeneralconsensusbytheCommissionerspresenttomoveforwardon thefouritemsidentifiedduringthismeeting. Inresponsetoquestions, CountyManagerCoudrietstatedthatthe Countycanmakefundsavailableforthepublicawarenesscampaign. IfthatisthewilloftheBoard, staffcanmake thosechangesnow, whetheritisallofthatcostofhalfofthatcost. HeisunsurehowtheCityworksintermsof appropriating. Bygeneralconsensus, theCommissionerspresentagreedtomovingforwardwithestablishingapermanent jointhousingadvisorycommittee, workingonahousingstudy, fundingeitherjointlyorincoordinationwiththeCity apublicawarenesscampaign, andfundingapermanentstaffposition. ChairmanBarfieldstateditwouldbegoodto havesomesharedexpenses. Inresponsetoquestions, CityManagerCheathamstatedherecommendedtheCityCouncilproceedwith itsnormalpracticeofconsideringanenablingresolutionvalidatingthedirectiononthefouritemsdiscussedatan upcomingmeeting. CitystaffcanbringitforwardatthenextCouncilmeeting. CountyManagerCoudrietstatedif theBoardmakesthedirectiontoday, staffwouldnotneedtobringsomethingforwardatanupcomingmeeting. FromtheCountyside, itwouldbeadirectivetomoveforwardnowwiththeCounty’scostshare. Councilmember Rivenbarkstatedinregardstotheideasbeingsharedinthecommunityfor workforce/affordablehousing, hewantstoknowwhopeoplegotoandhowdopeoplesharetheirideas. Itneedsto beknownandshared. ChairmanBarfieldstatedheappreciatestoday’smeetingbeingheldandthediscussion. Ashestatedearlier, theCountyraisedtheminimumwageforitsemployeesto $31,000. ThereisnotahouseintheCountywhereasingle Countyemployeecangooutandbuybasedonthatincome, unlessit’ssomethingtheywillhavetoputalotofmoney intotomakeitlivable. CountyandCityofficialshaveparticipatedinthreeintercityvisitswiththeChamberof Commerce. WhathehaslearnedparticularlyinCharleston, isthatpeopledriveintothecityfrom45or50miles awaybecausetheycannotaffordtoliveinCharlestonproper. ThesameishappeninghereinNewHanoverCounty aspeoplecannotaffordtolivehere, whetherinanapartmentorhouse. Fromaneconomicdevelopmentstandpoint, whencompanieslookatourcommunity, onethingtheyarelookingatishousingaffordability. Theymaychooseto gotoanothercommunitybasedonhousingaffordability. MayorSaffoconfirmedwithCityManagerCheathamthathehasdirection. CityManagerCheatham confirmedthathehasdirection. MayorSaffothankedeveryoneforattendingasthisisanimportantissueforthe community. InregardtotheGarnerReport, bothelectedbodiesapprovedanumberoftherecommendations, but therearesomerecommendationswhereactionhasnotbeentakenasofyet. Hewouldliketoreconveneatsome pointtodiscusstheremainingportionoftheGarnerReport. ChairmanBarfieldstatedhewasinagreementtohaving NEWHANOVERCOUNTYBOARDOFCOMMISSIONERS BOOK34 SPECIALMEETING, FEBRUARY21, 2019 PAGE320 anothermeetingonthisfront. MayorSaffoaskedtheCountyandCityManagerstochooseadatetohavethe discussionabouteconomicdevelopmentasitisalsoanimportantissueforthecommunityandcitizens. ADJOURNMENT Hearingnofurtherbusiness, ChairmanBarfieldandMayorSaffothankedthoseattendingthemeetingand adjournedat4:48p.m. Respectfullysubmitted, KymberleighG. Crowell ClerktotheBoard PleasenotethattheaboveminutesarenotaverbatimoftheNewHanoverCountyBoardofCommissionersmeeting.