Loading...
HomeMy WebLinkAboutMinutes 03-18-2009 Affordable Housing Advisory Committee Meeting Meeting Minutes- March 18, 2009 Attendees Louise Hubbard, Treasure Coast Homeless Services Council Diane Weslowsi, St. Lucie County Citizen Scott Wingfield, Realtors Association of St. Lucie Stephanie Morgan, All About You Al Rivett, St. Lucie INTACT Rick Carreno, St. Lucie County Fire District Staff Beth Ryder, St. Lucie County Community Services Stefanie Myers, St. Lucie County Community Services Jessica Parrish, St. Lucie County Community Services Jennifer Hance, St. Lucie County Community Services Heather Young, Heather Young, St. Lucie County Assistant County Attorney Absences Mike Smith, Riverside National Bank Kenneth Fuchs, SDZ Construction Don Green, St. Lucie Habitat for Humanity Skeet Jernigan, Community & Economic Development Council of South Florida Colleen Jeeves, Workforce Development Board Minutes Stephanie Morgan called the meeting to order at 11:50 am. Jessica Parrish stated that staff is looking to revise the State Housing Initiative Partnership Local Housing Assistance Plan (SHIP, LHAP). Some of the changes that are being proposed are changing the mortgage from a thirty (30) year term to the following. Level of Assistance Lien Period Amortization Under $15,000 5 years 20% per year $15,000 to $40,000 10 years 10% per year Over $40,001 to $60,000 15 years 6.67% per year Over $60,001 20 years 5% per year Ms. Parrish stated that staff also is also proposing to reduce the assistance on down payment and rehabilitation assistance from $80,000 to $40,000 and increasing the disaster relief strategy from $5,000 to $25,000. The disaster relief strategy is used in the time of a natural disaster to assist client with paying their homeowners insurance deductible, clear debris, put up shutters, etc… Ms. Parrish also stated that one of the main concerns is the terms of the Municipal Services Benefits Unit (MSBU) assistance and that currently very low and low income residents are assisted with 50% of the assessment with a 30 year mortgage. The proposed change would assist with 100% of the assessment and it would be a five year forgivable loan. Ms. Parrish stated that the option is available to assist moderate income residents with 50% of the assessment. Stefanie Myers stated that the concern is if we increase the assistance from 50%-100% and add in the moderate that effects are total SHIP allocation and we will take away from rehabilitation assistance and down payment assistance. Ms. Myers stated that the fiscal impact was something that the commissioners were very concerned about and that they asked that the Affordable Housing Advisory Committee (AHAC) convene to make recommendations for how the plan should change. Ms. Parrish stated that the other thing that was added in the SHIP LHAP was the rental development strategy up to $150,000 to help developers and non-profit developers who are applying for low income tax credits and are required to have a local government match to get the points required in their application. Louise Hubbard asked about why staff decided to change the forgiveness terms (see chart above). Ms Parrish stated that staff would like all the programs to coincide with each other. Ms. Hubbard asked how many times funds have been recaptured. Ms. Parrish stated that there has been very few. Ms. Myers stated that the idea of the mortgages was so that people did not flip the house after they received assistance and make money off the program. Scott Wingfield asked whether the money being used for the MSBU program was the same money that was going to be used for down payment assistance. Ms. Parrish stated that was correct. Ms. Hubbard asked how many down payment files we have had recently. Ms. Parrish stated 20- 25 clients. Al Rivett stated that he would like to recommend that moderates be served after very low and low income clients and if that could be referenced in the plan. Ms. Parrish stated that yes that is possible. Diana Weslowsi asked whether that would limit our flexibility. Mr. Rivett suggested referencing the state statue (30% of funding must be set aside for very low and low) in the LHAP. Ms. Myers stated that the hot issues among the commissioners are the term of the loans, the interest rate, and percentage of assistance provided with the MSBU program. Ms. Hubbard asked whether the intent of reviewing the MSBU program was to give residents who previously did not have access to the program access. Ms. Myers stated that the point of the program is to assist those who would not be able to afford to pay a higher tax bill. Scott Wingfield asked whether the MSBU assistance was provided up front or paid every year. Ms. Parrish stated the program would assist with half of the prepayment amount up front and the other half would stay on their tax bill. Al Rivett asked what the Commissioners issue was in regard to MSBU. Ms. Myers stated that the debate is whether to assist with 100% of the assessment, changing the mortgage from 30 years to five years, and changing the interest rate and the fiscal impact to the funding. Mr. Rivett stated that it a matter of what is priority. Diana Weslowsi stated that we could always modify the assistance plan as needed. Mr. Rivett asked why staff now wants to include moderates in the MSBU plan. Ms Parrish stated that it had to do with economic conditions. Ms. Weslowski stated that Ms. Myers had made a good point in not wanting to limit ourselves and making sure that the plan provided some flexibility. Scott Wingfield asked how much the MSBU program would save homeowners. It was estimated to be about $10 per month. Mr. Wingfield stated that the advantage of the program is that it keeps mortgage payments from increasing. The disadvantage is that money would be taken from other strategies. Ms. Hubbard asked what the cap was on rehabilitation assistance per client. Ms. Parrish replied that it was $80,000 currently, but the new plan called for it to be reduced to $40,000. Mr. Rivett stated that it all comes down to a matter of priority. Ms. Weslowski asked how many people in Sunland Gardens were anticipated as being moderate income. Ms. Myers stated that 131 homeowners were estimated at being moderate. Ms. Parrish stated that the board has previously approved $100,000 to go towards the MSBU program. Ms. Hubbard asked whether very low and low could be given priority, and only after would moderates be assisted. Ms. Parrish stated that is an option. Diana Weslowsi made a motion to approve that very low and low is given first priority, then moderates would be assisted if there were funds still available. Assistance would remain at 50% of the assessment. Mr. Rivett seconded the motion. None were opposed. Ms. Parrish asked that discussion of the mortgage term be discussed. The term decided would apply to all strategies within the program. Currently the mortgage term is 30 years. If the home is sold, refinanced for cash, or changes title the mortgage is due payable. Al Rivett asked what is prompting staff to change the mortgage term. Ms. Parrish stated that changing the term would make all the programs consistent with each other and there would be no confusion to the clients if the funding source that was assisting them changed or if more than one funding source was used. Ms. Hubbard made a motion to change the mortgage term to reflect the HOME mortgage terms. (See table above). The motion was seconded. (2nd motion was not identifiable) None were opposed. Ms. Parrish stated that the 2 items just discussed for SHIP Housing Assistance Plan were also up for discussion with HHR Housing Assistance Plan. A motion was made by Al Rivett to carry over the motions made for SHIP and apply them to HHR as well. Ms. Hubbard seconded the motion. None were opposed. Ms. Parrish stated the interest rate was up for discussion. The interest is currently 3% and would be changed to 0%. Mr. Wingfield made a motion to approve the change. Ms. Weslowski seconded the motion. None were opposed. Ms. Parrish reviewed the NSP program for the committee. It was stated that St. Lucie County is under DCA and will be receiving just over $3 million for the regular allocation and $840,009.00 for the very low rental allocation. Ms. Parrish stated that currently the county would be acquiring and rehabilitating foreclosed, bank owned properties and would make them available for families whose incomes are less than 120% of the area median income. St. Lucie County would contract to have the homes rehabilitated to include green technology and provided down payment assistance to the client to purchase the home. Ms. Parrish also stated that $200,000 has been budgeted for each home. $100,000 to purchase the home, $50,000 to rehabilitate the home, and $50,000 to be provided in down payment assistance to the client. Diana Weslowsi asked what green technologies would be included in rehabilitating the home. Ms. Parrish stated that solar hot water heaters, impact resistant windows, and energy star appliances would be used in making the homes greens. Ms. Hubbard stated that the County may have trouble selling the properties because the houses were previously foreclosed, the neighborhoods are viewed as being distressed, and the client does not get a lot to choose from. Ms. Hubbard also stated that the requirement for a credit score of 620 may be out of reach for the clients wanting assistance. Diana Weslowski made a motion to approve the Neighborhood Stabilization Plan. Stephanie Morgan seconded the motion. None were opposed.