Pima County Housing Commission

January 22, 2007 – 3:00 p.m.

 

Pima County Kino Recreation Center

2805 E. Ajo Way Room 104

 

Members Present:              Members Absent:                       Staff & Guests:

 

Scott Place                       Tim Escobedo                                   Betty Villegas

Frank Moreno                    Henry Boice                                 Gary Bachman                               

David Greenberg                                                                         Daniel Tylutki 

Jon Miles                                                                                 Marcos Ysmael

Kathleen Buske                                                              Hank Atha

Ken Anderson                                                                         Margaret Kish

Steve Craddock                                                                    Ana Durazo

Frank Thomson                                                                     Samantha Romero

Ed Taczanowsky                                                              Terry Galligan

                                                                                                Peter Trujillo

                                                                                                Mary Hardin

                                                                                                Corky Poster

                                                                                                Noemi Navarro

                                                                                                Carlos Carmona

                                                                                                Frank Martinez                                    

 

 

I.                    Welcome & Call to Order

Commission Chair Frank Moreno called the meeting to order at 3:00 p.m.

 

II.         Approval of Minutes from November 20, 2006 

Motion by Ken Anderson to approve the November 20, 2006 minutes

Seconded by David Greenberg. 

Motion carried unanimously.

 

III.                General Obligation Bond Applications

§        Barrio San Antonio Project

 

Pima County staff Betty Villegas presented the Barrio San Antonio project.  This project was brought forth by the Drachman Design-Build Coalition, Inc. This is a new-construction, homeownership project to be built in the Barrio San Antonio neighborhood located on the corner of Fremont Ave. and 15th St, bordering east side of Aviation Parkway. The project, with total development costs of $1,316,417.00 consists of five, single-family detached units and features an ultra-high energy design. The applicant requested $136,903.00 worth of bond funds to be used for off-site utility improvements in the public right of way, which comes out to $27,380.60 per unit. The sub-committee voted to forward the application to the full Commission for recommendation to fund in the amount not to exceed $136,903.00.

 

 

 

Commissioner David Greenberg expressed concern over the high costs associated with this project and asked how exactly that fit in with affordable housing. Commissioner Frank Thomson stated that the project included an educational component and the total cost of the project included all the subsidies and in-kind donations, which is why the square footage cost was higher.  He also explained that although the cost may be higher, the homebuyer will only need to qualify for a mortgage in the amount of approximately $109,000.00, certainly fitting the criteria for affordable housing.

 

Motion made by Ed Taczanowsky to approve the Barrio San Antonio application.

Seconded by Ken Anderson.     

Motion carried unanimously.

 

§        Tres Pueblos  

 

Commission David Greenberg stated to the Commission that since this was his company’s project, he would need to refrain from the discussion and vote.

 

Pima County staff Betty Villegas presented the Tres Pueblos First-time Homebuyer Collaboration project.  This new-construction project was brought forth from Old Pueblo Community Foundation and DR Horton. Located in the Tres Pueblos subdivision on Drexel and Tucson Blvd., the homeownership project is composed of 20 units of single-family paired homes, meaning that the homes share a common wall, with total development costs of $3,440,000.00.  The applicant requested $480,000.00, in bond funds to be used for off-site utility improvements in the public right of way which comes out to $24,000.00 per unit. The homebuyer will need to qualify for a mortgage in the amount of approximately $115,000.00. These funds would be used for off-site utility improvements in the public right of way. The sub-committee voted to forward the application to the full Commission for recommendation to fund in the amount not to exceed $480,000.00.

 

Motion made by Frank Thomson to approve the Tres Pueblos project.

Seconded by Ed Taczanowsky.          

Motion carried unanimously.

 

§        The Iowa Project 

 

Pima County staff Betty Villegas presented the Iowa Project.  This new construction project for first-time Homebuyer Collaboration project.  This new-construction project was brought forth by Chicanos Por La Causa. Located on the northwest corner of Iowa and Liberty, the homeownership project is composed of 6 single family detached home units, with a total development cost of $1,065,566.00. The applicant requested $166,540.00 of bond funds to use for off-site utility improvements in the public right of way, which comes out to $27,756.00 per unit.  The homebuyer will need to qualify for a mortgage in the amount of approximately $108,000.00. The sub-committee voted to forward the application to the full Commission for recommendation to fund in the amount not to exceed $166,540.00.

 

Motion made by Jon Miles to approve the Iowa Project.

Seconded by Kathleen Buske.                       

Motion carried unanimously.

 

 

 

IV.                Staff Report

 

§        Future 2007 Housing Commission Meetings

Betty Villegas expressed concern over cancelled Housing Commission meetings due to holidays that fall on meeting days. She suggested that when this situation presents itself to either automatically have the meeting changed the Tuesday after, or the following Monday. She commented that there is the possibility to fall behind in the workload if meetings have to be cancelled. Commissioner Kathleen Buske said she felt that it was not too much to ask to meet once a month and that the Commission owed it to those who appointed them to the commission and their constituents.

 

Motion made by Ken Anderson to change the meetings to the following Monday, when needed.

Seconded by Kathleen Buske.

Motion carried unanimously.

 

Frank Thomson requested the Commission consider identifying how staff could work with other departments to assist applicants building affordable housing projects with items such as rezoning, permits, etc. Betty Villegas stated that this could be placed on a future agenda or discussion.

 

§        2008 Bond Proposal update

Betty Villegas passed out a report for the 1997 and 2004 bond funds and explained to the Housing Commission that they needed to begin discussions regarding  a 2008 Bond Program She stated that all of the funds from the 1997 housing bonds have been allocated, though they had not all been spent. The Commission has recommended and the Board has approved $3,747,096.00 in 2004 housing bond funds.  The balance of $6,252,904.00 funds needs to last until the next bond issue. Hank Atha addressed the Commission and informed them that the Bond Commission tentatively scheduled a November 2008 bond election, and staff had requested the amount of $30 million in bond funds for affordable housing. He asked the Commission to begin considering a dollar figure, and they may want to review the proposed $30 million package that staff initially recommended.  The Commission will need to start solidifying their recommendations and review the staff proposal since the Bond Committee will begin to review proposals beginning in early February. Hank also stated that the Bond election was scheduled to take place at the same time as the 2008 general election. There was discussion among the Commissioners about staffs recommendation and concerns regarding an emphasis on homeownership rather than rental. There was a discussion that although the Commission’s emphasis has been homeownership, there shouldn’t be a ban on rental, as it is an important facet of affordable housing.

 

Motion made by Frank Thomson that the Commission recommends $30 million or more as an appropriate level for affordable housing bond funds. And that the Commission looks at emphasizing homeownership but to discuss actual figures at a later meeting.

Seconded by Kathleen Buske,

Motion carried unanimously.

 

 

§        HTF Alternative Revenue Stream Update

Hank Atha stated that a proposed piece of legislation is going to be sent to the state legislature that would establish a real estate transfer tax to be used as a source of funding for affordable housing.

 

§         New Contract Language Defining “Substantial Change” for Future Bond Projects

Margaret Kish passed around a memo to the commission, and a draft of the language crafted for substantial change. Regarding the memo, Margaret stated that because of concerns brought up in the last meeting in regards to changes made in the MLK project, there were questions as to what role the Commission had once the project had been approved. She stated that up until a contract has been fully executed, the Commission retains the ability to review a project and ask questions regarding changes. Once the contract has been fully executed, substantial changes would require a contract amendment.

 

Margaret Kish addressed the draft language for substantial change, which was reviewed by the County Attorney, and stated that there may be initial problems because they tried to include both Affordable Housing and Neighborhood Reinvestment, and since they are two different processes which may need to be addressed separately. The language states that the applicant would report project changes to staff, which is something already done in monthly reports. The staff would ask to review documentation and then determine whether that change was substantial enough to bring it back to the Commission. At the time it comes back to the Commission, the Commission would have the opportunity to recommend and continue the approval to the Board or revoke the initial recommendation. Once the Board has fully executed a contract or an IGA then it would have to go through an amendment process.

 

The Commission discussed the language and suggested that there be clearer guidelines for what constitutes substantial change.

 

V.                  Call to the Audience

 

Mary Hardin of the Drachman Design-Build Coalition expressed her gratitude toward the Commission for supporting their project.

 

Noemi Navarro of Chicanos Por La Causa also gave thanks to the Commission.

 

VI.                Adjournment

 

Motion made by Steve Craddock to adjourn at 4:30 PM.

Seconded by Kathleen Buske.

Motion carried unanimously.