Pima County Housing Commission
Committee Meeting
Pima County Administration Building
130 W. Congress - 1st
Floor Conference Room
Members
Present:
Members Absent: Staff
& Guests:
Tim
Escobedo Henry Boice Carol Norris
Frank
Moreno Scott Place Betty Villegas
David
Greenberg Gary Bachman
Jon Miles Hank
Atha
Kathleen
Longnecker Margaret Kish
Ken
Anderson Daniel
Tylutki
Ed Taczanowsky Terry Galligan
Steve
Craddock
Frank
Thompson
Commission Chair Frank Moreno called the meeting to order at 3:40 p.m. with a quorum present. Betty Villegas made reference to the official roster and asked the Commission to sign above their name.
II. Approval of Minutes from
April 27, 2005
First item on the agenda – approval of the minutes from June 20, 2005, No additions or corrections were noted.
Motion by David Greenberg to approve the
June 20 minutes.
Seconded by Ken Anderson. Motion carried unanimously.
Betty introduced Daniel Tylutki, the
newest member of the staff for the Affordable Housing Program. Daniel distributed the Housing Bond
Application Tracking Sheet and provided information on each of the listed
projects including: MLK Depot Plaza reviewed and recommended by the
Commission on June 20, 2005; Sylvester Drive Estates, 13 unit single
family development; Casa Bonita, III, IV, V – multi-family, scattered
site for SMI, LIHTC; Corazon del Pueblo, Habitat for Humanity
collaborative project, 20 units in Phase I; Ghost Ranch Lodge, LIHTC, elderly
housing. Projects 2, 3 4 and 5 are still in the underwriting process. Mr. Anderson asked about the non-profit
status of the organizations. Betty Villegas clarified that the applicants are
all non-profit organizations and that once the application packets are completed;
these will be distributed to the Commissioners. Mr. Greenberg requested that
staff add an additional column that show a recap of bond funds available. Hank Atha also suggested that it would be
useful information for the Commission to have the total projected budget of the
project represented on the spreadsheet.
Daniel Tylutki provided this information verbally, and stated that he
would add these columns to future spreadsheets.
Mr. Anderson inquired about the
number of rental units vs. home ownership units that are represented on the
Housing Bond Application spreadsheet, and asked for clarification regarding the
charter of the Commission as one to increase home ownership. Betty Villegas stated that the Commission
can limit the number of rental units that are funded through the bond funds,
and that it can be a future agenda item for discussion.
Gary Bachman addressed the 2005
Annual Action Plan that is transmitted to HUD for the coming fiscal year for
entitlement projects including CDBG, HOME, and ESG and to address other
questions that HUD has regarding community planning. The 2005 Annual Action Plan was developed to include all programs
under the Community Development and Neighborhood Conservation department. Betty
directed the Commission to information regarding the down-payment assistance
programs, and stated that staff is working on a down payment initiatives with the
Town of Sahaurita and the Town of Marana.
Betty Villegas addressed the
Commission and distributed a draft of the Housing Bond Fund application draft
that was developed by staff and requested input from the Commission regarding
changes to the application that may prove helpful. Hank Atha asked how cost was
evaluated and addressed in the application process. Betty provided information regarding the data collected from
applicant to assess the cost. Mr. Atha
asked if the cost of the project was considered in the scoring of the
application. Betty stated that infrastructure costs are supported by bond
funds, with dramatic changes in these costs over the past several years. Mr.
Atha stated concerns relating to the 1997 projects in process. He recommended
that the Commission consider the issue of escalating inflation as a future
agenda item. Ms. Villegas stated that it is currently taking $40,000 in
subsidy, leveraging multiple sources for families to become homeowners,
sometimes resulting in 5 or 6 liens on a home. Betty Villegas recommended that
the Commissioners address the issue related to escalating infrastructure costs,
gap financing, and bond fund caps on future agendas. Mr. Atha also stated that
the commission should consider innovative building strategies in using bond funds
for homeownership.
Frank Thompson asked for
clarification on the application in regards to recommending projects to the
Board of Supervisors. Betty Villegas
clarified that staff may recommend to the Commission, but the application must
score at least 80 for the Commission to recommend funding to the Board of
Supervisors. She also clarified that
the Commission recommends the projects to the Board of Supervisors.
Mr. Thompson discussed a Phoenix
model using a revolving loan fund. Mr.
Thompson requested that staff provide the Commission with details regarding
this program. His concern is that
homeowners receive a “windfall” of equity, but there is no mechanism to
redirect/recapture funds for new projects. Betty stated that she will consult
with bond counsel on this issue.
Supervisor Elias clarified that the bond funds are for public right of
way, public infrastructure only. Wealth
building is a primary goal of this program. Since the projects require leverage
funds from multiple sources, there are liens associated with the housing, which
will reduce the risk of homeowners incurring a “windfall”. Additionally, these
built in restrictions encourage families to remain in their homes and at the
same time protecting the governmental resources invested in the project.
Supervisor Elias stated that the
Commission will need to consider building in protections for the funds that
will comprise the Housing Trust Fund. These funds will not have the same
protections as the bond funds or other entitlement programs.
Mr. Greenberg requested that staff
research issues related to possible recapture of funds, possible silent seconds
on properties or other models that would be applicable and bring back
information to the Commission. Concern
regarding the protection of the bond funds given that the number of rentals
that are being proposed in the applications.
Mr. Craddock asked if the County has
reviewed current land holdings, with existing infrastructure. These properties may prove fairly easy to design a project around
these properties. Supervisor Elias
stated that it would be very useful to update the review of land holdings for
the County and other jurisdictions.
Supervisor referred Betty to John Regan to utilize GIS capabilities to
determine what land is available.
IV. Discussion on Contribution Fee Structure
Chair Moreno referred the
Commissioners to the transcripts and minutes of the Board of Supervisors and
the November 16, 2004 memo regarding the establishment of the Housing
Commission.
Mr. Taczanowsky clarified that the
Commission is to hold public hearings on the contribution fee structure. The concept for affordable housing fee
should be discussed in its entirety. A roof top fee for fee on property should
be up for discussion.
Mr. Anderson asked if legal counsel
could explore the issue of a fee on pre-owned homes, and to determine if state
law precludes this.
The issue of a possible closing fee
was discussed, such as what Rancho Sahuarita has written into their
covenants. The State of Arizona has a
$2 transfer fee, per transaction, paid to the State of Arizona general
funds. SABHA attorney has researched
this issue and Mr. Taczanowsky will provide information to the Commission
regarding this fee.
There was discussion on exploring
other revenue stream possibilities, including those that may require
legislative action and also discussion on revenue streams that would include both
resale homes and new construction homes.
Chair Moreno stated that the
Commission needs to maintain the “philosophy” of the Board of Supervisors in
enacting the Housing Trust Fund. Supervisor Elias directed the Commissioners to items A through H
that clarify the Board’s philosophy. Ms. Longnecker read from the minutes that
Table A is to be used as a guideline.
Mr. Craddock stated that there is a
community crisis, which is why the Commission is addressing the issue of
affordable housing.
Mr. Thompson discussed the barriers
to affordable housing. He shared some
of the issues that he perceives as problems contributing to the high cost of
housing, including the impact of regulations on the cost of a house, and the
application of regulations across the board.
Mr. Taczanowsky discussed some of
the issues he had witnessed in California, and warned that Pima County could be
heading in that same direction. He
further stated that he believes the Commission needs to look at the big
picture, to get enough money into the Housing Trust Fund from various sources
so that programs can help families get into housing. Mr. Anderson stated that the range for the contribution fee is
between 2/10 of 1% and 1 1/2 % on a million dollar home, which are not
difficult numbers to achieve, and is in favor of moving forward with what we
currently have while looking at other revenue sources in the future. Mr.
Escobedo stated the Commission has the basic guidelines that are identified in A through H, but that the
Commission has the ability to look for additional sources of funding so that the Commission should move forward.
Ms. Longnecker stated that the
tables and figures were generated in November. She than asked that if the
Commission takes the guidelines and holds a public hearing, can we look at
other options and adjust the fee or does the fee need to stay the same? Supervisor Elias stated that the Commission
is not going to be able to solve the issues related to affordable housing. The Commissioner should look at the table,
and explore developing other funds, given the severity of the issues related to
affordable housing and adjust it accordingly.
The table looks at homeownership only, and the issues related to
affordable housing are much broader.
Mr. Escobedo stated that the table was
based on unincorporated Pima County. Funds will benefit other municipalities
and this table does not take that into consideration. The burden should not fall on unincorporated Pima County.
Chair Moreno asked the Commissioners
how they wanted to proceed. Mr. Greenberg stated that the Commission needs to
hold the public hearing, scheduled for September 12, 2005. Betty Villegas stated that Commission may
want to discuss the table at the August meeting, given that the table is based
on 2003-04 information. Ms. Longnecker
stated that, if the table is as is presented at the public hearing, and
subsequently the Commission wants to change the table, the Commission would
have to hold another public hearing.
Supervisor Elias suggested that the Commission may want to develop
several alternatives and present these alternatives at the public hearing,
giving the Commissioners more latitude in making their recommendation. Mr. Greenberg stated that it is important
for the Commission to have input on the table, and be aggressive at the next
meeting to develop alternatives to the existing table.
Betty offered the staff assistance
can also look at the table and develop alternatives for the Commissioners
consideration. The existing table indicates structure only, and left out the
land. Perhaps staff should consider the
value of the land and structure for review by the Commission.
Mr. Thompson clarified procedural
rules. The Commission is not locked into any position or issue, and can make a
substitute motion. No one on the
Commission has agreed to recess for the purpose of a caucus. The Commission adheres to open meeting laws.
A motion was made to forward the
staff report, as is to the public at the public hearing and take input, and the
Commission will discuss after the public meeting
Motion was seconded by Ken Anderson.
Ms. Longnecker offered a substitute
motion to look at the table and discuss other options so that the Commission
can present alternatives at the public hearing.
Seconded by Mr. Thompson
Substitute motion passed on a vote
of 5 yeas, 4 nays
The original motion was not acted
upon, given that the substitute motion passed.
Mr. Greenberg stated that the
Commission needs to remain focused on the goal of having a continual pool of
money for affordable housing in Pima County. Mr. Thompson clarified that the
Commission is moving forward with the public hearing, and at that meeting the
table will be discussed along with other alternatives.
Mr. Anderson asked staff if they
knew what the benchmark number that the Commission was trying to achieve was as
the November 16, 2004 memo states Pima Countys goal is to increase affordable home ownership by 10% by the end of
the decade. Staff will provide that
information at a future Commission meeting.
Introduction of Carol Norris, who
will be providing technical assistance and support to the Housing Commission,
provide training, materials related to affordable housing, the Housing Trust
Fund, the administration of those funds, etc.
HUD is paying for this technical assistance to the Commission. Carol will be available to the Commission in
the late Fall.
Terry Galligan, Old Pueblo Community
Foundation, addressed the Commission and thanked them for their work. Mr. Galligan addressed the issue of current
and future projects, and the reality that, due to rising costs, it will be
necessary to leverage 3 or 4 sources of funds for families that are considering
homeownership.
Steve Craddock begin a new
discussion on the possibility of a Real Estate Transfer Fee, and whether the
Commission could consider moving in that direction. Discussion on whether it requires new state legislation. Other fee options were also discussed. Hank Atha stated that staff would explore
and ask for a legal opinion on other fees, and provide that opinion to
Commission at a future meeting.
Motion to adjourn by Tim Escobedo,
Frank Thomson seconded.
Meeting adjourned at 5:32 PM