Pima County Housing Commission

November 21, 2005

 

Pima County Recreation Center

2805 E Ajo Way Room 104

 

Members Present:         Members Absent:                        Staff & Guests:

 

Tim Escobedo                  Henry Boice                                   Patrick Cavanaugh

Frank Moreno                   Ed Taczanowsky                           Hank Atha                   

David Greenberg                                                                     Margaret Kish 

Jon Miles                                                                                 Betty Villegas

Kathleen Buske                                                                       Gary Bachman

Ken Anderson                                                                         Marcos Ysmael

Steve Craddock                                                                      Daniel Tylutki

Frank Thomson                                                                     Samantha Romero

Scott Place                                                                             Carlos Renova

                                                                                                Terry Galligan

                                                                                               Corky Poster

                                                                                               

                                                                                               

                                                                                   

 

I.                    Welcome & Call to Order

Meeting called to order by Chair Frank Moreno at 1:45 PM.

 

II.               Approval of Minutes from October 17, 2005

Motion by Ken Anderson to approve the minutes as written.

Seconded by Kathleen Buske.  Motion carried unanimously.

 

III.                Staff Report

Betty Villegas presented a draft copy of the Housing Trust Fund contribution fee schedule and guideline recommendations memorandum.  She stated that the memorandum is from Chair Frank Moreno to County Administrator Chuck Huckelberry, which he in turn will present to the Board of Supervisors. 

 

IV.                2004 General Obligation Bond Program

Betty Villegas stated that the main purpose of the meeting was to discuss the bond application process and come to an agreement on how to review, score and make recommendation to the Board of Supervisors.  She went through the background of the bond program.  She also went through the eligible uses of the bond funds as it pertains to affordable housing.

Discussion on the number of units provided by the 1997 General Obligation Bond program, cost of the projects, funds available, and affordability. 

Steve Craddock stated his concern for the time it took for the process from the time the Commission makes the recommendation to the time the Board of Supervisors approves the Contract.  He stressed that timing is very important in getting these projects completed as costs will only continue to rise and can affect the project. 

Frank Thomson asked whether an analysis of the 1997 and the 2004 bond projects exists that compares what the project is and how the project compares to what the major builders are doing. His concern is whether bond program is cost effective for what Pima County is trying to achieve.  Betty Villegas responded that the bond program has always been open to all builders/developers.   Frank Thomson stated that in his experience major builders will never get involved with the current process because that is not the way they do business.  Kathleen Buske responded that there are currently joint projects between non profits and for profits where it will be a mixed income development and it makes it more cost effective when the non profit does the affordable units. She stated it is a new thought process, and we need to look at it and see if it is working.   

Staff, Marcos Ysmael clarified that “the purpose of the bonds is to serve the public benefit. This program is funding projects that wouldn’t otherwise happen in the private sector because they just don’t pan out. It is allowing projects to happen on small, vacant tracks of land that are just deteriorating and not helping to improve neighborhoods. And for a neighborhood to be able to take that vacant land and turn it into a higher use such as home ownership it then expands our tax base, it helps the neighborhood become more stable, so there are some other public benefits that need to be measured into the mix here. While that cost effectiveness is a concern, there are other concerns when we start looking at the public benefit factors.” He concluded that it is not always easy to analyze and measure the public benefit.

Hank Atha asked Frank Thomson to be more specific about the kind of cost comparison he would like for staff to report.  Frank Thomson responded that he wants to know what the cost of delivering these types of programs.  What is the cost per square foot for this type of housing?  Hank Atha asked staff to provide data showing the cost per square foot for some current projects. 

Frank Thomson continued discussion on what he felt these types of programs usually not being cost effective, and that he would suggest the Commission only work with builders, nonprofit/profit whoever, who are able to demonstrate that they are able to deliver a cost effective product. As opposed to subsidizing builders who do radically non cost-effective products but they are able to do it because all of these subsidies are thrown in. He stated that the Commission would want to subsidize good building techniques, and good builders whether the builders are nonprofit or for profit. 

Betty Villegas responded that most major builders don’t want to participate. They aren’t going to go after these small projects of 4-50 units because it’s not cost effective for them. We need to support the smaller builders that will work with nonprofit housing providers to build affordable housing because it provides a need in our community. This is a program that is working to expand affordable housing in Pima County.

Hank Atha commented that the cost per square foot should be evaluated and be part of the scoring criteria.

Betty Villegas then directed the Commissioners to the scoring criteria handout.  She went through and highlighted the process that involves staff looking at the threshold items listed, then the program priorities that are reviewed by the sub committee than if it meets the acceptable

Ken Anderson commented that he was concerned with the Enable 2000 requirements that would leave out manufactured housing.  He would recommend that the Commission

exclude this requirement from any manufactured housing project applications that are received.  Further discussion on whether the Enable 2000 should be part of the scoring criteria, which goes above the standards of the Pima County Inclusive Design Ordinance.  Discussion on trying to keep the criteria as simple and as uncomplicated as possible.  Frank Thomson stated that he would oppose the Commission requiring the Pima County Inclusive Design Ordinance enforced within other local jurisdictions that do not have the same code requirements.   Betty Villegas responded that the ordinance is good for the people we are serving as most will live in their homes and age in place and therefore may need the additional accessibility.  She stated that it has been a requirement for all bond projects regardless of where they are located.  Kathleen Buske further stated that if someone is asking for Pima County funds, than they should follow Pima County ordinances and codes regardless of where your project is located.  Jon Miles than explained to the Commission how the 1997 Bond Advisory Committee implemented the Inclusive Design plus the additional Enable 2000 requirements.  He stated that the Committee studied this and had quite a bit of discussion prior to implementing the requirement, deciding that it was important enough to include.  Further discussion on whether the Enable 2000 should remain or be removed completely.

Ken Anderson made a motion to remove the Enable 2000 from the scoring criteria. 

Frank Thomson seconded.  Discussion on what exactly Enable 2000 includes. 

Frank Moreno called for the question.  Roll Call Vote.  Motion carried 5 for 2 against. 

Hank Atha referred everyone back to the scoring criteria and stated that the cost per unit is very vague and needs to be included in the scoring criteria.  Discussion on how the cost should be scored, what should be used.  Gary Bachman explained that sometimes the best quality of housing isn’t necessarily the cheapest, but the long term benefits of quality housing for affordable housing is a better investment and use of these funds. 

Further discussion on what affordable housing should look like.  Frank Moreno recommended that the Commission look at the scoring criteria and come back to the next meeting prepared to bring thought out suggestions and modifications to the existing document. 

Kathleen Buske commented that the Commission has been consistently asked at almost every meeting to give feedback and comments and failed to do so.  Betty Villegas stated that it is very important that the Commission give staff direction on what they want to see as criteria, and if they don’t provide the feedback, staff will provide what they feel is appropriate for scoring the bond applications.  It was decided that the Commission would send staff their comments by December 5, 2005.  It was also decided that the next meeting would be moved up to December 12, 2005 due to the holidays. 

Call to the Audience

Terry Galligan stated that there is a sense of urgency in trying to finalize the application.  He also stated that since there is not a non profit on the Commission, he would be willing to answer any questions or address any issues that may come up.

Carlos Renova stated that as a housing provider, CPLC is very proud of what it has been able to accomplish and working directly with the families that they put into these homes is what is important.  These families deserve a quality home that they can be proud of. 

Terry Galligan then commented that they work with the families that are at 80% of median income, and it is not easy trying to get them qualified for these programs.  The funds needed are many.  The bond funds is one source, many times there are 4 or five other sources of leverage. The commission needs to put that in perspective when talking about affordable housing.

Motion to adjourn meeting at 3:40 pm by Frank Thomson

Seconded by Ken Anderson Passed unanimously.