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HomeMy WebLinkAboutMinutes 04-01-2010 AFFORDABLE HOUSING ADVISORY COMMITTEE April 1, 2010 Conference Room 3 Meeting convened at 3:30 p.m. MEMBERS PRESENT: Al Rivett, St. Lucie INTACT Stephanie Morgan, All About You Paula Hosein, Workforce Development Board Mike Smith, Riverside National Bank Louise Hubbard, Treasure Coast Homeless Services Council Skeet Jernigan, Community & Economic Development Council of South FL MEMBERS ABSENT: Rick Carreno, St. Lucie County Fire Department Toby Philpart, Sunrise City CHDO OTHERS PRESENT: Jessica Parrish, St. Lucie County Community Services Dina Prestridge, St. Lucie County Community Services Heather Young, St. Lucie County Assistant County Attorney Minutes Ms. Morgan called the meeting to order at 3:30 p.m. with introductions. Mr. Smith made a motion to approve the minutes from the January and February meetings. Ms. Hubbard seconded the motion. All were in favor. ~Local Housing Assistance Plan - Jessica Parrish, Housing Manager Ms. Parrish address the group and requested from Ms. Young that they approve the Local Housing Assistance Plan (LHAP) before discussing the Ordinance and Resolution, as there were members of the quorum that were unable to stay for the entire time and this was a matter of importance that needed to be addressed. Ms. Parrish stated there are changes that are required based on Senate Bill 360 which was passed but the minutes were not approved. She discussed how the LHAP is due to Florida Housing for the next 3 fiscal years. The LHAP will govern the SHIP program from July 1, 2010 through June 30, 2013. The changes that were required are the updates, for green improvements on page 6 letter R stating that green items are being incorporated in the projects where appropriate. Another change will be adding point criteria for each strategy for the purchase assistance listed on page 7, giving priority to special needs and elderly households. Other than those changes, the LHAP will remain the same. Same strategies and same assistance amounts as requested before. Mr. Jernigan asked if there is a special policy in place that the inspector uses for inspections. Ms. Parrish replied that there is a specifications booklet that states what the requirements are for rehabilitation projects. AHAC Minutes April 1, 2010 Page 2 Mr. Jernigan asked what extent will it affect the purchase price of the home since we are dealing primarily will low income families. Ms. Parrish said it should not affect them too much with the purchase price of the home as it is an amount that is forgiven after a certain period of time. Another purpose is to reduce the homeowner’s monthly utility expense since the “green improvements” will reduce the amount of resources being used, and these items are included in the amount of the forgivable loan. Mr. Jernigan asked if tankless water heaters have been considered for these projects and/or used. Ms. Parrish replied they have been discussed and that it has been decided that the solar powered water heaters would be used rather than using the tankless option. Mr. Jernigan stated that from his opinion the solar option is an expensive option to use where as the tankless option is more affordable, efficient and equivalent to the full tank systems. Ms. Parrish said for the tankless they are more costly due to the electric for the operation, but if it was a gas unit it would be more effective. The majority of people we are assisting have electric systems and costs more to use, which is why it was decided to go with solar. Mr. Jernigan suggested if there is going to be a 20-point program in place there should be a definition of handicap and disabled listed, to be able to determine if they are eligible. Ms. Parrish agrees. Mr. Jernigan makes a motion to approve the LHAP. Mr. Smith seconded the motion. All were in favor. ~Ordinance and Resolution Update – Heather Young, Assistant County Attorney Ms. Young gave an update on the Resolution for expedited permit review for affordable housing. The Board approved the Resolution on March 9, 2010 and is now in effect with the building division. This affects homes that are receiving grant money from the County. The draft Ordinance for affordable housing projects is based on Martin County’s affordable housing Ordinance. Mr. Jernigan stated that there is a provision in place for moderate housing but questions if there is something established for low income. Ms. Young stated the ordinance is based on how Martin County has it, but she does not have a problem adding that information into the ordinance. Mr. Rivett stated he would like to see more for very low and low income possibly a 100% loan for those 2 categories. Mr. Jernigan mentioned he felt it should be the same across the board with a deferred loan and or pay-off for very low excluding Habitat homes. He also thinks that moderate should be excluded and this should be focused on very low. The likelihood of the very low and low income home buyers moving from their residence is very low and that we should possibly have a 15- year deferred loan where they would be responsible for paying the amount back. He asked that AHAC Minutes April 1, 2010 Page 3 they make a recommendation to amend the ordinance to add new categories for the very low and low income families that deferred impact fee loans for the first 10-years of the mortgage and then at that point in time they will be responsible for monthly payments for the remaining life of the mortgage with zero interest. The group discussed different options of repayment and agreed that for very low and low income households that there would be a 100% loan that would be required to pay back if the home was sold, refinanced, or there was a transfer of title. Also, there should be a different requirement for moderate income by wither leaving it the way it is or changing the time frame in between the purchase of the home and when to start repaying the amount back. Mr. Smith asked what type of lien position would be on the home. rd Ms. Young stated that it would be recorded after SHIP loans and typically would be the 3 lien position being its own separate loan. Ms. Hubbard stated that she felt this may be a problem as she has not seen these loans listed individually. She also felt if it is going to coincide with the SHIP loan then it should all be considered one loan and grouped together. Mr. Rivett suggested a portion of the impact fee paid upfront and then the remaining portion paid in the future. After discussion among the group Mr. Jernigan suggests that they defer the impact fees for the builder and obtain a certificate of occupancy. Mr. Jernigan discussed that there should be some benefit to the client. Ms. Parrish stated that Ms. Young points out that in paragraph E the client is getting a benefit because the client cannot purchase a house that exceeds 90% of the median area purchase price, so it could be changed to a lower rate around 80% or 85% of the median purchase price. Therefore, then the client would be receiving the benefit due to their purchase price being lower. Ms. Hubbard stated that when dealing with a low income household the difference between 85% and 90% is large and therefore would not work financially for the client. Ms. Morgan stated on average paying the impact fees on a monthly basis would only increase the mortgage payment by approximately 1%. Therefore, reducing the worry for coming up with the funds at a later date for repayment, it should be paid out on a monthly basis rather than have someone monitor these loans and having to pay a large amount of money at a later time. Mr. Rivett said if the loan is deferred until there is a transaction that requires a transfer of the deed then that would be when the issue would be approached on the repayment of the fees. Ms. Morgan responded to Mr. Rivett by asking what would happen to the person purchasing the home or a relative of the original homeowner when the home is transferred and they are unable to come up with the large amount of fees that are due on the home. AHAC Minutes April 1, 2010 Page 4 Ms. Morgan said the issue should be brought back up in a future meeting as there was not enough information to come to a conclusion at this time. Mr. Jernigan made a motion to amend B to remove the 1-year payment to the receipt of the certificate of occupancy, remove C, D, and E from the ordinance. Ms. Hubbard seconded the motion. Mr. Rivett opposing the motion as he doesn’t feel that it doesn’t go far enough for the low income household. Motion is carried and approved. Other Business Ms. Morgan informs the group that a nomination of a Vice Chair is needed and if there are and suggestions. Mr. Rivett nominates Ms. Hosein. Mr. Jernigan seconds the nomination. All were in favor and approved Ms. Hosein as the Vice Chair. th The next meeting will be April 28 at 3:30p.m. in Conference Room 3.