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HomeMy WebLinkAboutMinutes_HOUAB_05.21.2018City of Georgetown, Texas Housing Advisory Board Minutes May 21, 2018, at 4:00 p.m. Historic Light and Waterworks Building, 406 W. 81" Street Georgetown, Texas 78626 Members present: Nathaniel Bonner; Mary Calixtro; Randy Hachtel; jennyce Hume; Brian Ortego; and Lou Snead, Chair Members absent: Nikki Brennan Staff present: Sofia Nelson, Planning Director; Susan Watkins, Housing Coordinator; Karen Frost, Recording Secretary and Patrick Lloyd, Community Resources Coordinator Call to Order by Chair Snead at 4:00 pm. with reading of the meeting procedures. Public Wishing to Address the Board A. As of the deadline, no persons were signed up to speak on items other than those posted on the agenda. Chair Snead opened the meeting at 4:30 pm, explained the meeting procedures and welcomed the guests. Legislative Regular Agenda B. Consideration and possible action to approve the minutes from the April 17, 2018 meeting. Karen Frost, Recording Secretary Motion by Hachtel to approve the minutes. Second by Calixtro. Approved 6 — 0 (Brennan absent.) C. Consideration and discussion of the work of the Texas Housing Foundation. Mark Mayfield, President/CEO, Texas Housing Foundation Mr. Mayfield shared his history and explained the THF. In 1992 developed the regional housing authority in Marble Falls. Blanco and Burnet counties were brought in in 2005. He has found that the biggest need is workforce housing. He spoke of trying to balance the economic growth and development with average housing prices of $300K and explained that the economics are not there. His business does not use federal money, is self-supporting. He is working on public/private relationships. He explained that he understands that the tax revenue stream is limited and not for funding housing. He stated the middle gap is growing and understands that it is tough to be a homeowner in fl -ds economy. Snead appreciates Mayfield being here. Snead asked if all units built are market rate. Mayfeild explains that in Gateway Northwest that _ are _ and 188 are market value. He explains that developers need to have an incentive for giving the risk of developing lower - Housing Advisory Board Page 1 Minutes May 21, 2018 income housing. Georgetown is ahead of the growth curve on this. He explains the economics of paying the land price, then the $125 - $150 per square foot. And the cost of the house is more than the single family incomes can afford. The development has to be subsidized. He explained there are bonding authorities (4%) that could make this accessible for development. The 4% are non-competitive funds, so the capital risk is less. Investors prefer that. Capital Area Housing issues the bonds and is committed to the local governments. Typically there is no accountability down the road and the projects are allowed to deteriorate. He says his group is there to insure that the projects are maintained in a long- term situation. There is concern about developers that build a project then leaves, or sells the project, and there is no accountability. Mayfield discussed land cost effecting the overall cost of the project and why it is higher here. His organization adds ad valorem taxes back into the projects and the Foundation is a non-profit organization and developers can go through that entity to make the money work. However, when a development doesn't work and they have received $380 per month on a $14 million bond, there is no money to pay for upkeep and maintenance and that is usually the first thing to go. It all comes down to the integrity of the developer. Capital Area Housing Finance worked with locals for Mariposa and Cypress Creek and they are maintaining it well. They do not have deferred maintenance at "their Properties". Waggoner asked what role the city plays. Mayfield states the role is that of an enabler. Mayfield thinks Georgetown is great when he worked with Gateway Northwest. There were a lot of negotiations for that deal. Incentives, utility extensions, etc? They don't ask for it. Snead asked for clarification of "streamlining". He feels that working with the city and county can help. Snead thanked Mayfield for attending. D. Update on the proposed agreement for the Home Repair partnership with Habitat for Humanity. Susan Watkins, AICP, Housing Coordinator See presentation. Board discussed the liens, which would be filed on all homes with repairs over $500. The city will administer the lien process. Concern is that the lien will be a deterrent to the program. This is from the city legal department based on the Community Development Act which states no person can benefit directly from city funds and this lien amount will protect the city. It was also discussed that if any funds are repaid to the city within the two years, it will be put back into the housing repair fund. This agreement is only for the remainder of the fiscal year. There will be a different agreement for FY 2019. E. Presentation and discussion of a Cooperation Agreement with Williamson County to continue participation as part of the Urban County Entitlement for the Community Development Block Grant Program for FY2019-21 and CDBG Entitlement Analysis. Susan Watkins, AICP, Housing Coordinator Watkins gave a recap of recent CDBG Activity for 171h Street and Maple Street sidewalks. The cooperation agreement is required to be part of the Williamson County funds. If the Housing Advisory Board Page 2 Minutes May 21, 2018 city is approved at a later date for funding directly from HUD, then the city can choose to dissolve the agreement with Williamson County. Ortego asked if the board can make a recommendation to use the funds for housing instead of sidewalks. Watkins explained that the board can make that recommendation as part of the Housing Plan Update. F. Update on the 2030 Plan update. Watkins explained that the group is gearing up for the June 7 Steering Committee meeting and this item will be used to report how those meetings are going. Adjournment Motion by Ortego, second by Bonner to adjourn. The meeting was adjourned at 5:33 pm. App ed, Lo nead, Chair Housing Advisory Board Minutes May 21, 2018 ,?�7 Attest, R dy Hachtel, Secretary Page 3