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HomeMy WebLinkAboutAgenda_2030SC_12.05.2019Notice of Meeting for the 2030 Comprehensiv e P lan Update Committee of the City of Georgetown December 5, 2019 at 4:00 P M at Georgetown Health F oundation, 2425 Williams Dr # 101, Georgetown, T X 78628 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. L egislativ e Regular Agenda A C ons ideration and possible action to approve the minutes from the O ctober 24 and November 7, 2019 regular meetings of the S teering C ommittee. - Mirna G arc ia, Management Analyst B P resentation and dis cus s ion of the 2030 Implementation P lan S trategies - S ofia Nelson, P lanning Direc tor C P ublic C omment D Next Meeting Date/Time/Agenda. - S ofia Nels on, P lanning Director Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2019, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 1 of 42 City of Georgetown, Texas 2030 Comprehensive Plan Update Committee December 5, 2019 S UB J E C T: C onsideration and pos s ible ac tion to approve the minutes from the O c tober 24 and November 7, 2019 regular meetings of the S teering C ommittee. - Mirna G arcia, Management Analys t IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: Mirna G arcia, Management Analys t AT TAC H ME N T S: Description Type Minutes 10.24.19 Backup Material Minutes 11.7.2019 Exhibit Page 2 of 42 Page 1 of 2 Minutes of Meeting of the 2030 Comprehensive Plan Update Steering Committee City Hall, Community Room 808 Martin Luther King, Jr. St. Georgetown, Texas 78626 Thursday, October 24, 2019 6:00 pm In attendance: Mayor Dale Ross; Ercel Brashear; Lou Snead; Linda McCalla; Danelle Houck; Suzy Pukys; Hugh Brown; Josh Schroeder; Tommy Gonzalez; PJ Stevens; Wendy Cash Staff present: Sofia Nelson; Nat Waggoner; Susan Watkins Regular Session – Mayor Dale Ross called the meeting to order at 6 pm. A. Consideration and possible approval of the minutes from the September 19, 2019 meeting of the 2030 Comprehensive Plan Update Steering Committee. – Mirna Garcia, Management Analyst Motion by Brashear to approve the minutes, second by Schroeder. B. Presentation and possible recommendation of updates to the Land Use Element – Nat Waggoner, PMP, AICP The purpose of this meeting is to: - Inform: Share summary results of the updates to the land use policies, categories and the land use map. Share a summary of the direction from the 10/22 workshop and inform the Steering Committee of future public input opportunities. - Action: Confirm drafted policies and review changes to land use categories and land use map. The outcome of this meeting is for the Steering Committee to provide sufficient direction on the recommended changes for Council and the public consideration at meetings in October and November. At the meeting, the Steering Committee will be asked: - Do the updated categories support our land use/housing policies and the community’s input? How could they be more supportive? - Does the updated map reflect the changes you recommended? Are additional changes needed? - Are there additional stakeholders we should consult in the land use update process? The agenda for the meeting includes: - 6:00pm – 6:15pm: Presentation - 6:15pm – 7:30pm: Land use policies, categories & map recommendations Waggoner began the discussion with an overview of land use policies established by the Committee, and review of these policies to determine how they match with current development patterns, how those pattern match with compatible uses and existing uses. Waggoner also presented changes that have been made as a result of the Committee’s feedback and engaged in discussion with the Committee members on modifications to regional nodes and consolidation Page 3 of 42 Page 2 of 2 of the nodes, employment centers that were added to the map and shifting of existing employment centers, and density changes. The Committee members participated in mapping activities and discussed the teams’ recommendations with staff. C. Public Comment D. Next Meeting Date/Time/Agenda – Sofia Nelson, Planning Director Adjournment – Motion for adjournment by Brashear second by Schroeder. Meeting was adjourned at 7:30 pm. _____________________________________ ____________________________________ Approved, Mayor Dale Ross Attest, Page 4 of 42 Page 1 of 2 Minutes of Meeting of the 2030 Comprehensive Plan Update Steering Committee City Hall, Community Room 808 Martin Luther King, Jr. St. Georgetown, Texas 78626 Thursday, November 7, 2019 6:00 pm In attendance: Mayor Dale Ross; Tommy Gonzalez; Josh Schroeder; Doug Noble; Danelle Houck; Suzy Pukys; Linda McCalla; Wendy Cash; Paul Secord Staff present: Sofia Nelson; Nat Waggoner; Susan Watkins Regular Session – Mayor Dale Ross called the meeting to order at 6:00 pm. A. Consideration and possible approval of the minutes from the October 24, 2019 meeting of the 2030 Comprehensive Plan Update Steering Committee. – Mirna Garcia, Management Analyst The minutes were not included in the agenda packet and will be on the next meeting’s agenda. B. Presentation and possible action on the updates to the 2030 Land Use Element – Nat Waggoner, PMP, AICP The purpose of this meeting is to: - Inform: Share summary results of the updates and public comment. The City will continue to take public comment on the draft map through the 2030 website until Sunday, November 3rd at 5pm. - Action: The outcome of this meeting is for the Steering Committee to provide a recommendation to City Council of the proposed updates. At the meeting, the Steering Committee will be asked: - Do the updated categories support our land use/housing policies and the community’s input? How could they be more supportive? - Does the updated map reflect the changes you recommended? Are additional changes needed? - Are there additional stakeholders we should consult in the land use update process? Staff discussed the input received from the Planning and Zoning discussion, as well as the October 30 Public Meeting and the Georgetown Development Alliance. There was discussion on the land use percent share evaluation, FLUP categories, and the key updates for residential and non-residential uses. The Committee broke into groups and participated in an activity to review land use policies, categories and the FLU map. C. Public Comment Page 5 of 42 2030 Update Steering Committee November 7, 2019 What work have you done to update the FLUM? •Renamed and refined land use categories •Divided parks and recreation and open space into separate categories •Adjusted densities within categories •Created Community Commercial and Regional Center categories •Planned for land use with the use of legos •Added residential and non-residential ratios •Utilized the fiscal impact model What are the benefits of the updates to FLUM? •It helps citizens and developers understand the vision for the city as they plan for development of their property •Expansion of mixed density opportunities •Greater integration of MF & Commercial •Addresses concerns of too much MF development •Increased and spread out opportunities for commercial nodes-this will help with trafZic node and opportunities for amenities nearby •Outlines possible densities •Created Regional Commercial and Community Commercial nodes •Included ratios for non-residential and residential development •Helps to plan out infrastructure What concerns you about the updates to the FLUM? •Does the map reflect current infrastructure? Infrastructure drives development •Clarity needed on how residential ratio were developed •Understanding how the FLUM will be implemented •Within nodes how will ratios be implemented? •What is guidance vs. what will require a map amendment? What concrete changes are needed, if any? •Clarify language regarding mix density residential •Establish a priority land use for each category Page 6 of 42 Page 2 of 2 Mayor Ross opened the Public Hearing. Tim Haynie commented on employment centers. Mayor Ross closed the Public Hearing. D. Next Meeting Date/Time/Agenda – Sofia Nelson, Planning Director Adjournment – Motion for adjournment by Mayor Ross. Second by Gonzalez. Meeting was adjourned at 7:24 pm. _____________________________________ ____________________________________ Approved, Mayor Dale Ross Attest, Page 7 of 42 City of Georgetown, Texas 2030 Comprehensive Plan Update Committee December 5, 2019 S UB J E C T: P res entation and disc ussion of the 2030 Implementation P lan S trategies - S ofia Nels on, P lanning Director IT E M S UMMARY: T he draft Your G eorgetown 2030 Implementation P lan is organized into three (3) s trategies. T he purpose of this meeting is to disc uss thes e strategies and provide a recommendation to the C ity C ounc il whic h will be presented to the C ity C ouncil at their Dec ember 10, 2019 works hop. T he Your G eorgetown 2030 Implementation P lan’s s trategies are: 1. R egulatory F ramework – the “R ules” for land development 2. Dec is ion F ramework – how “R ules” are applied by C ity C ounc il and the Boards/C ommis s ions that evaluate/recommend land development dec is ions 3. P lans , P rograms and P artners hips – work plans needed to achieve goals, rec urring C ity func tions and coordination with other local governments and non-profits. F or a deeper understanding on how eac h s trategy will be implemented, to inc lude a summary of the as s ociated ac tion items . T he three attached doc uments will be the bas is of the disc ussion at the meeting: 1. Top 3 Implementation S trategies for 2030 P lan Memorandum (summary of rec ommended actions) 2. Draft Hous ing Toolkit (full listing of all tools available to the C ity) 3. Executive S ummary of the Housing Toolkit (s et of rec ommended Tools for inclus ion in the 2030 Implementation P lan) Als o attac hed for your referenc e, if needed are: 1. Hous ing Technic al S tudy S ummary Memo, whic h outlines the key findings of the Housing Element 2. S teering C ommittee Land Us e R ec ommendations, a graphic repres entation of the solutions needed to meet the 2030 G oals for land us e F IN AN C IAL IMPAC T: None S UB MIT T E D B Y: Nat Waggoner, P MP, AI C P AT TAC H ME N T S: Description Type 2030 Implementation Strategies Cover Memo Hous ing Toolkit Executive Summary Cover Memo Draft Hous ing Toolkit Exhibit Hous ing Technical Study Executive Summary Cover Memo Land Us e Recommendations Exhibit Page 8 of 42 1 MEMORANDUM Subject: 2030 Update Top 3 Implementation Strategies From: 2030 Update Project Team Date: 11/27/2019 Purpose: Define the top three strategies to Implement the Goals of the 2030 Plan The 2030 Implementation Plan is organized into three (3) strategic initiatives to address the 2030 Goals established by the City Council. 1. Regulatory Framework: Action items that involve updates to the regulations and standards (“rules”) for the development of land, primarily zoning and subdivision. These “rules” are the basic keys to ensuring that the form, character, and quality of development reflect the City’s goals related to land use. Key action items involve: • In-depth review of Unified Development Code (UDC) to ensure it enables the implementation of the 2030 Comprehensive Plan vision i. Standards and incentives to allow for a diversity of housing types ii. Standards for gateways and corridors (landscaping, signage, building design, streetscape and walkability) • In-depth review of land uses categories to ensure transition of uses 2. Decision Framework The City staff, Council and supporting Boards and Commissions play a role in the implementation of the 2030 Plan through their analysis, recommendations and legislative actions. The Implementation Plan includes specific actions staff will take to improve criteria and processes used in the decision-making process related to land development; specifically, those legislative decisions made by the City Council that impact the expansion of the city limits and the provision of infrastructure including roads, utilities and the creation of special financial districts. • Zoning map change criteria and Planned Unit Development approval criteria i. “For the purpose of establishing and maintaining sound, stable, and desirable development within the territorial limits of the City, the Official Zoning Map may be amended based upon changed or changing conditions in a particular area, or in the City generally, or to rezone an area or extend the boundary of an existing Zoning District or Page 9 of 42 2 Overlay District. All amendments must be consistent with the Comprehensive Plan.” ii. “The Planned Unit Development District (PUD) is intended to allow flexibility in planning and designing for unique or environmentally sensitive properties and that are to be developed in accordance with a common development scheme. PUD zoning is designed to accommodate various types of development, including multiple housing types, neighborhood and community retail, professional and administrative areas, industrial and business parks, and other uses or a combination thereof. A PUD may be used to permit new or innovative concepts in land use and standards not permitted by zoning or the standards of this Code.” • Development Agreements i. “An agreement approved by the City Council for a development that could not otherwise be accomplished under this Code or the Code of Ordinances. A Development Agreement may modify or delay certain requirements of this Code (including any Manuals adopted by reference in the Code) and/or any other provisions of the City Code of Ordinances.” • Annexation i. “The process by which a municipality expands its boundaries into adjacent areas not already incorporated into the municipality.” • Special Purpose Districts i. “Political subdivision(s) created pursuant to Article III, Section 52, and/or Article XVI, Section 59, of the Texas Constitution and that are authorized by law to provide water, wastewater, stormwater, and other services ("Districts"), in order to allow development within the City's corporate boundaries and extraterritorial jurisdiction that is generally consistent with the City's Comprehensive Plan” 3. Plans, Programs, Partnerships The 2030 Plan is a long-range decision-making tool which provides strategic guidance for the future growth and development goals of our community. To achieve these goals, the 2030 Implementation Plan includes multi-year strategies for work that exceeds the level of this long-range planning effort including: • Small area planning for preservation, redevelopment, or reinvestment • Health and Human Services Element • Historic Preservation Element • Overall Transportation Plan (OTP) • Parks and Recreation Element Page 10 of 42 3 Programs involve the routine activities of City departments and staff, as well as special projects and initiatives. This Implementation Plan includes actions which build upon existing programs, introduces new programs and expands community outreach efforts including: • Home Repair • Capital Improvement Planning (CIP) • Annual Reporting (2030 Plan) Many of the goals of the 2030 Plan were developed through participation and input from local government and nonprofit partners. Successful implementation will require direct coordination, agreements, or funding support. Page 11 of 42 Georgetown 2030 Comprehensive Plan Update prepared by CDS (DRAFT 11/25/19) Page 1 HOUSING TOOLKIT EXECUTIVE SUMMARY Policies Issues from Housing Study Tools P1, P3 Assure physical preservation of existing affordable/workforce housing The study found that much of the existing non-subsidized moderately priced housing stock is over 40 years old Housing rehab incentives •Expand home repair programs to reach moderate income workforce owner- occupied households and small-scale rental properties P1, P3 Assure economic preservation of existing affordable / workforce housing The study showed that the stock of for-sale existing housing priced under $250,000 has been rapidly decreasing, while rental rates in existing units have also been creeping upward Housing rehab incentives •Create dedicated funding source eligible to be used for both workforce and lower income housing rehab •Add long term pricing/income restrictions to rehabbing incentives for workforce/ moderate-priced housing P2, P4 Assist established neighborhoods experiencing change The subarea profiles show historic sales price trend data with significant increases in some subareas in price/square foot Neighborhood Plans and Programs • Small area plans, neighborhood empowerment zones, neighborhood conservation districts or overlays, and/or neighborhood association program A1, A2, A3 Address increasing lack of affordability for low to moderate income residents and workers Employment data from the study showed that the number of low to moderate income jobs in Georgetown and Williamson County is increasing, while the supply of housing affordable to such workers is limited relative to demand; 51% of renter households in Georgetown were cost-burdened in 2016; Direct assistance to homebuyers • Develop down payment assistance programs • Create dedicated funding source eligible to be used by both workforce and lower income home purchasers • Explore use of Neighborhood Empowerment Zones Assist supply expansion of workforce housing • Encourage more quality LIHTC development by reviewing tax credit policy to ensure it is supportive of the 2030 policies and future land use map • Density bonuses for affordable / workforce housing creation •Identify incentives that would encourage a fuller range of housing opportunities, both form and price point, when a special district or negotiated standard for development is being considered Partner to build on the successful housing work being done locally and regionally •Housing finance corporation •Public facilities corporation •Partnerships with nonprofits, impact funds •Community land trust DRAFT Page 12 of 42 Georgetown 2030 Comprehensive Plan Update prepared by CDS (DRAFT 11/25/19) Page 2 Policies Issues from Housing Study Tools D1, D2, D3 Continue increasing the diversity of new housing development types The housing inventory showed two main housing types are present, with the main housing choice being detached single family (85% Single Family, 15% Multi-family for the planning area (City Limits + ETJ). Many of the more affordable housing types documented in the study were moderate-density or niche types such as duplexes, fourplexes, attached townhome / rowhouses, manufactured homes, and small-lot detached Increase flexibility of development regulations • Allow greater variety of housing types and lot sizes in UDC • Density bonuses for inclusion of moderate density, moderately priced housing types A1, A2, A3 Mitigate increasing costs of developing and delivering new housing Interviewees in the housing and development industry described how development costs such as infrastructure are high and rising, and some are attempting to reach lower price points with smaller lots and attached product; however, no new rental housing for moderate prices is being produced and limited homeownership opportunities for workforce households Review of UDC requirements • Review for unintended costs to build and opportunities to support increased density Financial assistance to housing developers and builders meeting housing policies • Development agreements • Special financing districts • Fee waivers • Create dedicated funding source for housing development incentives and agreements DRAFT Page 13 of 42 Housing Toolkit Draft 11/27/2019 Policy: Preserve existing housing stock that contributes to diversity and affordability. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Home Repair Grant program for low income homeowners to rehabilitate homes for eligible repairs. Type of Action (program, policy, study): Existing Program HOME/CDBG, economic development sales tax, housing bonds, future tax increment, Community Reinvestment Act. Federal funds are available through HOME and CDBG programs (specifically for properties with low- income occupants), but local funds and private / nonprofit sector resources are also available. 4B sales tax funds have been used (San Angelo). Local housing bond proceeds can also be used, as can TIRZ set-asides for affordable housing. For rehabilitation expected to significantly increase the assessed value of the property, reimbursement from future property tax increment is another option that does not require immediate disbursement of funds on hand. Some non-profits such as Habitat for Humanity also contribute funds, material, administration and/or labor toward rehabilitation. HUD also does direct rehabilitation lending to eligible homeowners through the FHA and has other lending programs for rental property owners. Maintain current funding ($$) Maintain current program for low income homeowners (50% AMI and below). Low income ownership; Affordability Analysis showed 733 owner HH under $20K income 2016 and 2,152 owner HH $20K - $35K in 2016 # of homes rehabbed Pros: Helps remove emerging blight; usually cheaper than new construction; potential to assure longer term affordability depending on requirements, helps stabilize neighborhoods Cons: Usually limited in number of units assisted (especially single family); tradeoff between cosmetic (low cost, low administration) and structural / system improvements (higher costs, more administration); federal funds involve extra paperwork and process, and likely limit recipient properties to low-income occupancy and other requirements; history of difficulties with single family and quality assurance (recent Austin controversies); without recipient post- rehab residency requirement, can potentially sell home and lose affordable SF unit Yes, but rapid housing price increases as documented in Housing Study (sales under $200K fallen to 7.5% in 2017-18) mean that fewer low-income HH will be owning homes, though seniors may be continue to be eligible Rehab programs are frequent in cities around Texas including the Austin area, often using HOME and CDBG funds or proceeds from housing bonds. An effective program in San Angelo has an exterior rehab program with the exterior siding replacement funded through CDBG, equipment and supplies with 4B funds, paint donated through the Habitat for Humanity Valspar program, and labor donated by community volunteers; Home Repair for Workforce Homeowners Grant program for workforce homeowners to rehabilitate homes for eligible repairs (possible match component). Type of Action (program, policy, study): Program Involvement of federal funds or programs will necessarily require the subject housing to serve occupants of lower income levels (usually maximum of 80% of AMI and often 50% or 30%). Some kinds of local funds are more flexible in terms of the income levels of occupants to be served and the length of term of affordability. The City should consider requiring a minimum affordability level and period for programs that are not already bound by federal or other restrictions, and should consider homes priced to moderate-income households (for example, 60% to 120% of AMI) and minimum compliance terms (5, 10, 15 years for example) as well in such cases. Possible one- time payment (see Richardson example) or future reimbursement or abatement of increased City tax due to assessed value increase. ($-$$) Expand existing housing rehabilitation programs to target workforce demograhic, for owner occupied rehabilitation, major repairs and minor repairs. Physically preserve existing affordable and moderately priced housing structures; link to preservation of affordable pricing. Preserve homeownership (owner ability to stay in home) ; Required property owner matches for either grants or loans make public funds stretch farther and assure more commitment from recipients. Reimbursement from future incremental property tax revenues best suited for property owners making substantial (beyond cosmetic) improvements and more middle-income occupancy (less need for immediate funding assistance). # homes rehabbed Housing study identified rapid decrease in lower-priced homes, especially below $200K; homes $200K - $275K also important to preserve (34.9% of 2017-18 sales); program not dependent on HUD- type income restrictions to lower- income homeowners will be more appropriate for Georgetown going forward as low-income homebuyers will be unlikely to buy homes as prices increase; also will address supply of older single family in subareas 3, 6 and 7. Loss of potential future tax revenue if grant is structured in form of reimbursement to homeowner based on increase in assessed value. Yes, very good proposal well-suited to Georgetown's market situation The City of Richardson Home Improvement Incentive Program uses only future incremental City property tax increases and thus does not have occupant income limits such as what HUD would require, making it a good example for Georgetown (though Georgetown could still apply a limit at its own discretion). Multi-family Rehabilitation Loan or grant program to assist Multi-family property owners with property rehabilitation for eligible repairs. Type of Action (program, policy, study): Program and Study HOME/CDBG, economic development sales tax, housing bonds, future tax increment, Community Reinvestment Act. Federal funds are available through HOME and CDBG programs (specifically for properties with low- income occupants), but local funds and private/nonprofit sector resources are also available. 4B sales tax funds should be eligible. Local housing bond proceeds can also be used, as can TIRZ set-asides for affordable housing. For rehabilitation expected to significantly increase the assessed value of the property, reimbursement from future property tax increment is another option that does not require immediate disbursement of funds on hand. HUD also does direct rehabilitation lending to eligible homeowners through the FHA and has other lending programs for rental property owners. Could be capitalized as revolving loan program to have one-time funding up front. Community Reinvestment Act funds. Set up fund of approx. $500K if can allow tenant income restrictions of 80% AMI or higher ($$-$$$) 1. Study the locations and physical deterioration of existing housing stock. 2. Based on study findings, develop a program that encourages rehabilitation of small scale multi-family units. Small-scale rental properties documented as important element of supply for workforce in several subareas (1, 3, 6, 7) - 660 duplexes and 352 fourplexes in total planning area per Housing Study; Affordability Analysis indicated they are serving primarily moderate-rent households (not low-income) # of units rehabbed and # of units price- restricted per year for future period Can preserve small-scale workforce rental units for middle-income renters Voluntary program so property owners must find terms attractive and income restrictions not too severe; HUD funds may not allow rehabbing units for workforce income / rent levels Yes if can be made available to moderate income / workforce housing units (as opposed to low income) Plano has a rehab program for small-scale rental properties, though it uses HUD funding which requires 51% of rehabbed units to be allocated to low- moderate income HH. Regional Partnerships Partnerships with entities that acquire properties for preservation of affordable housing stock. Type of Action (program, policy, study): Program Impact Funds ($ - funded primarily by private equity investors, to purchase and preserve affordable multifamily rental properties), Housing Finance Corporation ($$$) can provide financial assistance for single family and multi-family housing development. The Capital Area Housing Finance Corporation (CAHFC) serves Williamson County. Likely little up- front City funding required; consider policy for future tax abatements or incremental property tax reimbursement s ($-$$$ (deal / agreement- specific)) 1.Develop and leverage regional partnerships to maintain existing affordable housing stock. Invite outside private sector / nonprofit partners to facilitate affordable housing development and preservation of a scale and long term effectiveness beyond what the City could accomplish directly. The housing study identifies older single family and especially multifamily as a key affordability resource to preserve, which is difficult without acquisition by preservation-focused entities. Subareas 1, 3, 5, 6 of the study were particularly notable for the presence of potential preservation priority housing. Impact funds and HFCs contacted. Formalized relationships created. Creates mechanisms to lessen the organizational and funding constraints of the City; increases long term affordability and awareness of available opportunities for housing developers / builders and consumers Property acquisition for impact funds may be difficult and slow; will likely need to seek relationships with organizations not specific to Georgetown (regional or national); potentially long lead time before implementation. YES though each organization or fund will have to be considered on its own Work with the Strategic Housing Finance Corporation that currently serves only Travis County communities, where it acquires and preserves affordable housing, but perhaps could expand into Williamson County if Georgetown leaders seek partnerships. Some nonprofit housing developers (CDCs / CHDOs) are very experienced and offer educational services for housing consumers (homebuyer education) as well as their housing development activities; Examples: Williamson County joined the regional Texas Housing Foundation in 2018. The Southeast Texas Housing Finance Corporation serves multiple counties and communities near Houston. Avenue CDC in Houston develops low-price homes and affordable rentals in addition to homebuyer education programs, housing rehabilitation, and community development activities. The Turner Impact Fund purchases multifamily properties around the United States, including the Austin area, to preserve as workforce housing. The Austin Housing Conservancy was recently formed, initiated by the City of Austin but funded primarily by private equity investors, to purchase and preserve affordable multifamily rental properties. Policy: Preserve existing housing stock that contributes to diversity and affordability. Potential Tool Description Potential Funding Options Recommende d Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 1 of 9 DRAFT Page 14 of 42 Housing Toolkit Draft 11/27/2019 Affordability term extensions Preservation of existing affordable units, often tax credit units. Type of Action (program, policy, study): Program General fund/staff time/in exchange for other program participation or development incentive Staff time ($) 1. Catalog developments to identify expiring affrodability terms. 2. Develop program to provide support to property owners with renovations that use Low Income Housing Tax Credit. Preserves LIHTC units nearing end of affordability term. # of units preserved with extended terms Low cost tool Not many LIHTC units are yet at risk of affordability terms expiring. Yes Texas Housing Foundation - Public Housing Authority with agreements in five county central Texas region. Community Reinvestment Act funds Partnerships with banks to meet Community Reinvestment Act requirements Type of Action (program Bank grants Bank grants ($-$$) 0. Roundtable of interested banks 1. Programming 2. Execution Maintain neighborhoods for low income/workforce households. Repairs made/neighborh ood improvements Promotes partnerships. Banks meet CRA requirements while advancing community policies. Marketing/outreach time needed to develop program/partnerships.Yes City of Allen Home Repair for non-CDBG eligible activities like fences Policy: Preserve existing neighborhoods in targeted areas. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Small area/neighborhood plans Plans developed through community outreach for areas of historical stability that are transitioning in use and density. Type of Action (program, policy, study): Program General Fund General Fund ($$) 1.Establish annual funding for small area/neighborhood plans. 2.Identify areas and neighborhoods for plan development. 3. Create process for neighborhoods to nominate themselves for small area plan. The subarea profiles show historic sales price trend data with significant increases in some subareas in price/square foot. Preservation of existing neighborhoods. One plan per year Focused analysis on defined areas; support for neighborhood preservation and compatibility Potential community concern on any transitions in use/density Yes City of San Antonio City of College Station City of Sugar Land Fort Worth Urban Villages (http://fortworthtexas.gov/PlanningandDevelopment/urbanvillages/) Development Regulations Use of Zoning, Overlay Districts, Neighborhood Conservation Districts to preserve existing neighborhoods. Type of Action (program, policy, study): Policy General Fund General Fund ($) 1. Review and update UDC next budget cycle Housing Study documented both need for entry- level single family below $275K and current (and implied potential) role of moderate density rental properties in serving a middle income market; having flexibility in development regulations to facilitate housing diversity can help achieve additional development of these types and serve market segments of different resident ages and life stages as well as incomes. Document diversity in type and price of new housing development Will make it easier to develop moderate-density housing through increasing the diversity of housing types and lot sizes (for SF) Will need to determine which areas of the City are reasonable candidates for strategy Yes City of Austin, City of Leander, City of Conroe recently reduced minimum lot sizes to allow single family homes at a lower price point in a master planned community. The City of Kerrville through the updates to the zoning code, revised an existing district to include more housing types. The biggest road block of the previous district was the different levels of approvals required for anything that was not traditional single family. In the “newer version” these secondary and tertiary approval processes were removed. The new district now allows for a variety of housing types within the same district. Single family (on slightly reduced lot size – 4500 sq. ft.), duplexes, townhomes, patio homes, and small lot single family (3300 sq. ft. lot with separate alley access). To address the variety of housing types, building codes, and property values, we limited each block face to one consistent housing type. Policy: Support owners ability to stay in homes in neighborhoods with rapid value increases without limiting the sale of the home. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Home Repair Grant program for low income homeowners to rehabilitate homes for eligible repairs. Type of Action (program, policy, study): Existing Program HOME/CDBG, economic development sales tax, housing bonds, future tax increment, Community Reinvestment Act. Federal funds are available through HOME and CDBG programs (specifically for properties with low- income occupants), but local funds and private / nonprofit sector resources are also available. 4B sales tax funds have been used (San Angelo). Local housing bond proceeds can also be used, as can TIRZ set-asides for affordable housing. For rehabilitation expected to significantly increase the assessed value of the property, reimbursement from future property tax increment is another option that does not require immediate disbursement of funds on hand. Some non-profits such as Habitat for Humanity also contribute funds, material, administration and/or labor toward rehabilitation. HUD also does direct rehabilitation lending to eligible homeowners through the FHA and has other lending programs for rental property owners. Continue current $25,000 level ($-$$) Maintain current program for low income homeowners (50% AMI and below). Low income ownership; Affordability Analysis showed 733 owner HH under $20K income 2016 and 2,152 owner HH $20K - $35K in 2016 # of homes rehabbed Pros: Helps remove emerging blight; usually cheaper than new construction; potential to assure longer term affordability depending on requirements, helps stabilize neighborhoods Cons: Usually limited in number of units assisted (especially single family); tradeoff between cosmetic (low cost, low administration) and structural / system improvements (higher costs, more administration); federal funds involve extra paperwork and process, and likely limit recipient properties to low-income occupancy and other requirements; history of difficulties with single family and quality assurance (recent Austin controversies); without recipient post- rehab residency requirement, can potentially sell home and lose affordable SF unit YES but rapid housing price increases as documented in Housing Study (sales under $200K fallen to 7.5% in 2017-18) mean that fewer low-income HH will be owning homes, though seniors may be continue to be eligible Rehab programs are frequent in cities around Texas including the Austin area, often using HOME and CDBG funds or proceeds from housing bonds. An effective program in San Angelo has an exterior rehab program with the exterior siding replacement funded through CDBG, equipment and supplies with 4B funds, paint donated through the Habitat for Humanity Valspar program, and labor donated by community volunteers; Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 2 of 9 DRAFT Page 15 of 42 Housing Toolkit Draft 11/27/2019 Home Repair for Workforce Homeowners Grant program for workforce homeowners to rehabilitate homes for eligible repairs. Type of Action (program, policy, study): Program Involvement of federal funds or programs will necessarily require the subject housing to serve occupants of lower income levels (usually maximum of 80% of AMI and often 50% or 30%). Some kinds of local funds are more flexible in terms of the income levels of occupants to be served and the length of term of affordability. The City should consider requiring a minimum affordability level and period for programs that are not already bound by federal or other restrictions, and should consider homes priced to moderate-income households (for example, 60% to 120% of AMI) and minimum compliance terms (5, 10, 15 years for example) as well in such cases. Possible one- time payment (see Richardson example) or future reimbursement or abatement of increased City tax due to assessed value increase. ($-$$) Expand existing housing rehabilitation programs to target workforce demograhic, for owner occupied rehabilitation, major repairs and minor repairs. Physically preserve existing affordable and moderately priced housing structures; link to preservation of affordable pricing. Preserve homeownership (owner ability to stay in home) ; Required property owner matches for either grants or loans make public funds stretch farther and assure more commitment from recipients. Reimbursement from future incremental property tax revenues best suited for property owners making substantial (beyond cosmetic) improvements and more middle-income occupancy (less need for immediate funding assistance). # homes rehabbed and # of units price- restricted per year for future period Housing study identified rapid decrease in lower-priced homes, especially below $200K; homes $200K - $275K also important to preserve (34.9% of 2017-18 sales); program not dependent on HUD- type income restrictions to lower- income homeowners will be more appropriate for Georgetown going forward as low-income homebuyers will be unlikely to buy homes as prices increase; also will address supply of older single family in subareas 3, 6 and 7 Loss of potential future tax revenue YES, very good proposal well-suited to Georgetown's market situation The City of Richardson Home Improvement Incentive Program uses only future incremental City property tax increases and thus does not have occupant income limits such as what HUD would require, making it a good example for Georgetown (though Georgetown could still apply a limit at its own discretion). Neighborhood Empowerment Zones Explore the creation of a neighborhood empowerment zone and other tools to provide targeted neighborhood support. Type of Action (program, policy, study): Policy/Program No up front funding required. Designate NEZs for areas of the City where certain types of housing are desired - permitting fees can be waived and tax abatements offered to enhance affordability; note that tax abatements not compatible with TIRZ ($) Short term (review and political process) 1.Propose NEZ incentive concept – fee waivers and / or tax abatements 2.Define criteria and standards for NEZ – what kind of housing, pricing or income ranges served, level of incentive offered (can be graduated) 3.Define process for selecting NEZ areas (older housing, areas near employment or services, etc.) 4. Propose NEZ incentive process, undergo public and stakeholder feedback process, Council policy adoption 5. Propose NEZ areas, undergo public and stakeholder feedback process 6. Formal NEZ designations by Council Can address either for-sale or rental housing, including development of ADUs and moderate density multifamily # of housing units permitted or granted abatements that fit NEZ criteria No up front investment required City gives up a portion of fee or tax revenue Yes, if areas of city identified where new / more affordable housing development is desired Fort Worth has 6 NEZs, all in CDBG-eligible areas. Plano designated its downtown as an NEZ to encourage affordable housing development. Policy: Support owners ability to stay in homes in neighborhoods with rapid value increases without limiting the sale of the home. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Utility billing assistance Grant funds for paying utility bills. Type of Action (program, policy, study): Program Good Neighbor Fund Good Neighbor Fund ($-$$) Provide information regarding resource. Low-income and workforce homeownership # of households assisted. Lower utility cost can assist homeowners to remain in homes. May not assist with root cause of high utility costs Yes, existing program.City of Georgetown Homestead exemption education Provide eduation to eligible homeowners on how to obtain a homestead exemption. Type of Action (program, policy, study): Program Non-profiits, Staff time Staff time ($) Package information and provide through available city communication channels. Low-income and workforce homeownership # of homes with exemption Low cost action Unknown number of homeowners in need of education Yes Some real estate associations have education materials. Support partnerships Partnerships with non- profits that assist existing home owners with maintenance. Type of Action (program, policy, study): Program Staff time Staff time ($)Identify existing assistance and partner. Low-income and workforce homeownership # of homes repaired, homeowners retained Low cost action Dependent on availability of non-profit resources. Yes Faith in Action Georgetown Policy: Maintain and promote neighborhood character and quality. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 3 of 9 DRAFT Page 16 of 42 Housing Toolkit Draft 11/27/2019 Neighborhood Capacity Building Promote neighborhood capacity (vitality, services) building - HOA training/education/outreach. Assist neighborhoods with neighborhood association creation. Type of Action (program, policy, study): Program General fund General fund ($) Short term/ongoing Preservation Number of neighborhood meetings/attendees Build neighborhood relationships; support for neighborhood preservation Additional staffing Yes Tulsa, OK Neighborhood Liasions (https://www.cityoftulsa.org/government/departments/working-in- neighborhoods/neighborhoods/) Small area/neighborhood plans Plans developed through community outreach for areas of historical stability that are transitioning in use and density. Type of Action (program, policy, study): Program General fund General fund ($$) 1. Establish annual funding for small area/neighborhood plans. 2. Identify areas and neighborhoods for plan development. 3. Create process for neighborhoods to nominate themselves for small area plan. The subarea profiles show historic sales price trend data with significant increases in some subareas in price/square foot. Preservation of existing neighborhoods. One plan per year Focused analysis on defined areas; support for neighborhood preservation and compatibility Potential community concern on any transitions in use/density.Yes College Station Sugar Land Fort Worth Urban Villages (http://fortworthtexas.gov/PlanningandDevelopment/urbanvillages/) BEST Neighborhoods (Beautiful, Engaged, Safe and Thriving) Neighborhood promotion, recognition and grant program Type of Action (program, policy, study): Program General fund General fund ($) Develop a program for neighborhoods to be recognized for beautification and quality of life efforts. Neighborhoods nominate themselves. Preservation of existing neighborhoods. Neighborhood participation is document by year. Capitilizes and incentivizes neighborhoods to take action. Less resourced neighborhoods may have limited ability to participate.Yes City of Plano created this program and reports success for cost. Plano has a pop-up trailer they take out to neighborhoods. Neighborhood traffic management program, street maintenance* Expand or encourage current traffic management program. Type of Action (program, policy, study): Existing Program General fund General fund ($) 1. Continue current traffic management program. 2. Outreach to neighborhoods who might benefit from program. Preservation of existing neighborhoods. Reported neighborhood improvement Existing program Yes Current COG program. Neighborhood cleanup day* Organize regular clean up day for neighborhood beautificaton. Type of Action (program, policy, study): Program Public works, Solid waste, partnerships with private resource recovery companies Public works, Solid waste, partnerships with private resource recovery companies ($) 1. Work with Code Enforcement to Identify neighborhoods for clean up. 2. Coordinate departments and funding. 3. Select date and conduct outreach to inform neighborhoods. Preservation of existing neighborhoods. metrics around items disposed, number of blocks impacted. Code enforcement reports clean up day is effective for getting rid of many undesired uses and potential violations. limited resources to perform more than once or twice a year. Usually only one or two blocks during event. Yes COG has conducted in the past. Neighborhood registration program* Expand current program. Type of Action (program, policy, study): Program General fund General fund ($) 1. Continue to promote neighborhood registration program. 2. Create outreach program based on interest topics submitted by neighborhoods during registration. Preservation of existing neighborhoods.# of neighborhoods registered low cost method to distribute information, self organizing potential not all neighborhoods are currently organized Yes Current COG program. Policy: Support and increase rental choices for low-income and workforce households unless the housing is substandard. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Development agreements Negotiations with developers that might include land provision or direct financial assistance in exchange of furthering city policy. Type of Action (program, policy, study): Policy Depends on structure of agreement; up-front financial assistance (grant or loan) will require source of funding (General Fund, TIRZ, 4B), while reimbursement can use future tax increment or cut of property sales revenue; some incentive items may not involve a financial cash flow (relaxed zoning, for ex.) TBD ($$-$$$$) 1. Identify and establish a special housing revenue fund to use for development negotiations. Helping developers fund infrastructure, land costs, materials can help deliver housing in this price range; could also help deliver new rental housing at rents lower than new Class A (under $1,300/month per Affordability Analysis) for Moderate / middle income HH ($70K and below) # new homes subject to development agreement built with price <$275K; # units rental housing affordable to low and middle income renters up to $50K income Incentive-based approaches more palatable than hard regulation; can very directly address financial issues that discourage more affordable new housing development Requires monitoring and clawback provisions; certain tools can reduce City revenues; requires extra negotiation processes YES, pursue such agreements as part of a housing incentive policy City of Houston Developer Participation Contracts; Clute Chapter 380 agreements providing below-market loan for housing subdivision infrastructure construction Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 4 of 9 DRAFT Page 17 of 42 Housing Toolkit Draft 11/27/2019 Development incentives Policies that incentize developers to voluntary increase rental housing supply through building rental units. (Workforce Housing Standards, Housing Diversity Standards, Density Bonus) Type of Action (program, policy, study): Policy General Fund General Fund ($)<1 year Potential method to gain incremental amounts of lower-priced units (most likely rental housing) for middle- and low-income workforce (retail, hospitality, government, health care, etc.) # low-to-moderate- priced units produced No direct fiscal outlay by City except administration Developers may not be familiar with particular housing types desired or how to incorporate affordable units into their projects; density may increase certain kinds of service costs per acre YES though effectiveness will have inverse relationship to strictness of overall regulation Downtown Austin Development Regulations Zoning, Overlay Districts, Neighborhood Conservation Districts, Diverse Housing Options Type of Action (program, policy, study): Policy General Fund General Fund ($)Next budget cycle Housing Study documented both need for entry- level single family below $275K and current (and implied potential) role of moderate density rental properties in serving a middle income market; having flexibility in development regulations to facilitate housing diversity can help achieve additional development of these types and serve market segments of different resident ages and life stages as well as incomes. Document diversity in type and price of new housing development Will make it easier to develop moderate-density housing through increasing the diversity of housing types and lot sizes (for SF) Will need to determine which areas of the City are reasonable candidates for strategy YES Conroe recently reduced minimum lot sizes to allow single family homes at a lower price point in a master planned community. The City of Kerrville through the updates to the zoning code, revised an existing district to include more housing types. The biggest road block of the previous district was the different levels of approvals required for anything that was not traditional single family. In the “newer version” these secondary and tertiary approval processes were removed. The new district now allows for a variety of housing types within the same district. Single family (on slightly reduced lot size – 4500 sq. ft.), duplexes, townhomes, patio homes, and small lot single family (3300 sq. ft. lot with separate alley access). To address the variety of housing types, building codes, and property values, we limited each block face to one consistent housing type. TIF/TIRZ TIRZ policy might include provision for units available to certain AMI groups or fee- in-lieu Type of Action (program, policy, study): Policy Always City General Fund; potential to include WilCo property tax also Designate TIRZs for larger projects or multi-owner districts with significant public infrastructure, facilities, or amenity needs to assure market viability ($$-$$$$) Need to create zones when base year assessed value is low (Jan. 1 value of creation year) Could be used to enhance affordability for either for-sale or rental; Moderate / middle income HH ($70K and below) need for-sale homes <$275K (from Housing Study); helping developers fund infrastructure, land costs, materials can help deliver housing in this price range; could also help deliver new rental housing at rents lower than new Class A (under $1,300/month per Affordability Analysis) # units created within the zone, especially within targeted sale / rent price ranges; amount and timing of tax increment generated to fund public improvements No additional fees / taxes imposed on zone properties; can issue debt Additional administrative and legal costs to run TIRZ; City gives up portion of property tax revenue during life of zone YES if project or area fits creation criteria; participation of WilCo potentially makes it very attractive Dallas and Houston have required TIRZs to either include development of affordable units or have TIRZ funds set aside for affordable housing development. Policy: Support and increase rental choices for low-income and workforce households unless the housing is substandard. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Public Facilities Corporation A public entity that can acquire sites and partner with multifamily developers to create tax-exempt mixed- income housing. Type of Action (program, policy, study): Program Funding required to acquire properties - could be General Fund, developer equal lease agreement, land acquisition fund, housing short term debt or notes of obligation; note that deals can be structured for developer to pay land cost back; City would have lost tax revenue from qualified projects since property becomes tax exempt. Developer pay land cost back ($$-$$$$) 1. Create a PFC to acquire sites and partner with multifamily developers to create tax-exempt mixed-income housing. Provides affordable multifamily rental - tax exempt status requires 50% of units to be restricted to <=80% AMI tenants; restrictions can be placed on remaining units also if financially feasible; Housing Study identified increased job growth for moderate-income local workers (<$50K income) who cannot afford new Class A rental properties, (low income and workforce rental units) # rental units created within targeted rent ranges / income restrictions Creation of affordable rentals without more restrictive requirements of LIHTC or HOME / CDBG funding; potential to also create middle-income rental housing Loss of potential future tax revenue YES create PFC - city- owned land might be low/no cost acquisition strategy San Antonio has constructed several affordable multifamily projects through PFC partnerships; new workforce rentals in Cibolo created through PFC partnership Affordability term extensions Support preservation of existing affordable units, often tax credit units. Type of Action (program, policy, study): Program General fund/staff time/in exchange for other program participation or development incentive Staff time ($) 1. Catalog developments to identify expiring affrodability terms. 2. Develop program to provide support to property owners with renovations that use Low Income Housing Tax Credit. Preserves LIHTC units nearing end of affordability term. Number of units preserved with extended terms Low cost Not many LIHTC units are yet at risk of affordability terms expiring. Yes Texas Housing Foundation Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 5 of 9 DRAFT Page 18 of 42 Housing Toolkit Draft 11/27/2019 Support GHA programs Support GHA through CDBG funds, energy efficiency upgrades through GUS Type of Action (program, policy, study): Policy General fund/staff time/CDBG General fund/staff time/CDBG ($) 1. Understand support needed from GHA. 2. Work with GHA to support current capital improvements. low income renters # of units available, change in percentage of cost burdened renters supports some of only renter housing available for low income households. Not many units overall. Yes Low Income Housing Tax Credit process* Support LIHTC development (workforce) that meet City defined process Development using LIHTC for genearl population as proposed by developers. Type of Action (program, policy, study): Policy General fund/staff time General fund/staff time ($) Build on existing policy workforce renters # of units available, change in percentage of cost burdened renters No cost to city. Some of only funding available to build volume of workforce housing units 9% tax credit developments unlikely to be competitive in Georgetown Yes various around Texas including Georgetown Multi-family Tax Exemption Tax exemption program in exchange for on-site affordability Type of Action (program, policy, study): Program Texas Comptroller exemption for low-income housing (https://comptroller.texas.gov/taxes/property-tax/docs/96-1740.pdf) Texas State Affordable Housing Corporation bonds for affordable rental housing (https://www.tsahc.org/public/upload/files/general/MF_Bonds_Brochure. pdf) N/A ($)Short term Affordability Number of affordable units added to housing stock Support for affordability; protect vulnerable populations Reduced tax revenue; potential community pushback on increasing affordable housing supply Yes McKinney, TX (https://www.mckinneytexas.org/1948/Low-Income-Housing- Tax-Credit; https://www.mckinneytexas.org/241/Mortgage-Certificate-Credit- Program) Policy: Support rental choices for senior households. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Low Income Housing Tax Credit process* Support LIHTC development (senior specific) that meet City defined process Development using LIHTC for seniors as proposed by developers. Type of Action (program, policy, study): Policy General fund/staff time General fund/staff time ($) Build on existing policy low income senior renters # of units available, change in percentage of cost burdened senior renters serves severely cost burdened population Not as many senior renters as non-senior renters.Yes various around Texas including Georgetown Support GHA programs Support GHA through CDBG funds, energy efficiency upgrades through GUS Type of Action (program, policy, study): Policy General fund/staff time/CDBG General fund/staff time/CDBG ($) 1. Understand support needed from GHA. 2. Work with GHA to support current capital improvements. low income senior renters # of units available, change in percentage of cost burdened senior renters supports some of only renter housing available for low income seniors. Not many units overall. Yes Policy: Increase homeownership choices for workforce households. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Down Payment Assistance Down payment assistance and home buyer counseling programs by supporting public-private partnerships with financial institutions and major employers. Type of Action (program, policy, study): Program • DPA - Potential funding sources (HOME, housing bonds, General Fund, TIRZ, 4B sales tax, nonprofit/private sector partners) Up-front down payment assistance, which can be provided by the City, a local housing finance corporation, or major employers (less common). • Housing education / navigation program (include financial and realtor communities) A more involved strategy would be to work with employers, nonprofits, mortgage finance firms, realtors, developers, and builders to set up an ongoing program that would work to prepare first- time buyers for home ownership through improving credit profile, managing savings, and helping them with mortgage qualification. This program might be City-initiated but not City-run. The least-restricted funds are the most desirable for DPA - TIRZ and 4B are better than HOME and housing bonds because the City can choose to serve more middle-income HH. Education / navigation - mostly same sources in combination with partners ($-$$$) Establish down payment assistance and expand home buyer counseling programs by supporting public- private partnerships with financial institutions and major employers. Next budget cycle (General Fund, 4B); partnerships may take longer to develop Increase the ability of middle-income households to purchase a home in Georgetown by lower down payment amounts or ongoing costs such as property taxes; the housing study documented dramatic loss of available homes under $200K, so middle income buyers ($50K - $70K income) will need increasing help to purchase homes up to $275K, which is becoming the new bottom price tier # buyers of target income range ($70K and below) assisted Incentivizes middle-income households to consider buying in Georgetown when they might otherwise have moved elsewhere. Cons: Does nothing to provide more moderately-priced for-sale housing in Georgetown, and may even help drive up prices; loses effectiveness as home prices and interest rates rise; up- front assistance may be limited in number of households helped. YES but rapid housing price increases as documented in Housing Study mean that assistance may need to focus more on moderate to middle income HH and larger per-HH assistance will likely be needed over time : The City of Houston has a generous down payment assistance grant program, with some funded by HOME and restricted to recipients of certain income levels, and other funds coming from TIRZ affordable housing set asides and available to middle-income home buyers. The program has had to improve its bureaucratic process to be better able to work with realtors and builders, and has lessened in effectiveness as urban core home prices have risen. The City of Austin also offers one as a 0% deferred payment loan to homebuyers whose incomes do not exceed federal limits. Development agreements Negotiations with developers that might include land provision or direct financial assistance in exchange of furthering city policy. Type of Action (program, policy, study): Policy Depends on structure of agreement; up-front financial assistance (grant or loan) will require source of funding (General Fund, TIRZ, 4B), while reimbursement can use future tax increment or cut of property sales revenue; some incentive items may not involve a financial cash flow (relaxed zoning, for ex.) TBD ($$-$$$$)1. Identify and establish a special housing revenue fund to use for development negotiations. Moderate / middle income HH ($70K and below) need for-sale homes <$275K (from Housing Study); helping developers fund infrastructure, land costs, materials can help deliver housing in this price range; # new homes subject to development agreement built with price <$275K; # units rental housing affordable to low and middle income renters up to $50K income Incentive-based approaches more palatable than hard regulation; can very directly address financial issues that discourage more affordable new housing development Requires monitoring and clawback provisions; certain tools can reduce City revenues; requires extra negotiation processes YES, pursue such agreements as part of a housing incentive policy Clute Chapter 380 agreements providing below-market loan for housing subdivision infrastructure construction; City of Houston Developer Participation Contracts Development incentives Workforce Housing*, Housing Diversity*, Density Bonus Type of Action (program, policy, study): Policy General Fund General Fund ($)<1 year Potential method to gain incremental amounts of lower- priced units (most likely rental housing) for middle- and low- income workforce (retail, hospitality, government, health care, etc.) # low-to-moderate-priced units produced No direct fiscal outlay by City except administration; existing program Developers may not be familiar with particular housing types desired or how to incorporate affordable units into their projects; density may increase certain kinds of service costs per acre YES though effectiveness will have inverse relationship to strictness of overall regulation Existing program, Downtown Austin Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 6 of 9 DRAFT Page 19 of 42 Housing Toolkit Draft 11/27/2019 Comm. Development Block Grant (Wilco and/or HUD) Land acquistion and infrastructure Type of Action (program, policy, study): Program Williamson County or become entitlement jurisdiction Williamson County until evaluation ($) 1. Continue to apply for grants from Williamson County to support affordable housing for households under 80%. 2. Evaluate cost benefit to becoming entitlement jurisdiction. Workforce # of homes available due to investment Funding for capital improvements; neighborhood reinvestment Effort/resouces to apply for grant Yes Waco, TX (https://www.waco-texas.com/housing-cdbg.asp) Publically owned lands/tax delinquent properties Leverage publicly owned lands for diverse affordable housing developments by taking a comprehensive inventory of land and its suitability for affordable housing development. Type of Action (program, policy, study): Policy Revenue from sale of properties. Evaluate agreement WCAD for sale of deliquent properties to determine best/highest use. To create a special revenue fund. Special Revenue Fund ($) 1. Evaluate agreement with WCAD. 2. Estimate/project fund. 3. Structure parameters. Evaluate delinquent property tax sale (https://mvbalaw.com/wp- content/TaxUploads/1119_Williamson.pdf) Workforce # of revenue generated from property sold. Leverage, public private partnerships, recognizes demand Offset general revenue, long time to build funds 380 Agreements Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects. Specifically, it provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity. In order to provide a grant or loan, a city must establish a program to implement the incentives. Depends on structure of agreement; up-front financial assistance (grant or loan) will require source of funding (General Fund, TIRZ, 4B), while reimbursement can use future tax increment or cut of property sales revenue; some incentive items may not involve a financial cash flow (relaxed zoning, for ex.) TBD 1-2 years 1. Propose Ch. 380 Housing Incentive concept – grants / loans / reimbursements for housing 2. Define criteria and standards for Ch. 380 agreement – what kinds of housing, pricing or income ranges served, determining factors for potential incentive amount (examples: public infrastructure or amenity costs, extra costs for including affordable units, land costs over financially feasible level, etc.) 3. Determine extent of potential incentive eligible for applicants – developments serving lowest income range might be eligible for 100% of potential incentive while higher priced housing maybe 50% eligibility; also structure of incentive can be graduated, such as up- front grants or loans for most affordable housing vs. future reimbursements from lot sales or tax increment f hi h i d h i Moderate / middle income HH ($70K and below) need for-sale homes <$275K (from Housing Study); helping developers fund infrastructure, land costs, materials can help deliver housing in this price range; could also help deliver new rental housing at rents lower than new Class A (under $1,300/month per Affordability Analysis) # new homes subject to development agreement built with price <$275K; # units rental housing affordable to low and middle income renters up to $50K income Requires monitoring and clawback provisions; certain tools can reduce City revenues; requires extra negotiation processes Incentive-based approaches more palatable than hard regulation; can very directly address financial issues that discourage more affordable new housing development YES, pursue such agreements as part of a housing incentive policy City of Plano uses 380 agreements for housing incentives by including housing as a community benefit for economic development in resolutions authorizing 380 agreements. Clute Chapter 380 agreements providing below-market loan for housing subdivision infrastructure construction; City of Austin Chapter 380 for affordable housing within the new Domain complex Community Land Trust Create a Community Land Trust or other forms of Shared Equity Ownership. Transition suitable land bank properties to permanently affordable housing through a public/private partnership with builders and a shared equity model Type of Action (program, policy, study): Program However, though after formation these tools can act quickly and at a large scale, getting them setup would be a major effort. Since Georgetown is not a large city (compared to Austin), Georgetown may have to work with other area communities to pool resources needed to create these tools or find organizations using them already on a regional basis. While ideally operational expenses should be covered by real estate sales of improvements, there may be additional funds (General Fund) or partnership needed to fund administration Funding options to be explored. ($$- $$$) Likely at least 2 years unless existing CLT can expand to Georgetown. 1. Look at possible regional CLTs for expansion into Georgetown. 2. Idenitfy if any philanthropic or institutional entities might provide land to land trust. Create high-capacity tools to better address the magnitude of affordable and workforce housing issues in Georgetown; The housing study highlighted the need to preserve as much of the current moderately-priced rental housing (both smaller and larger properties) as possible. It also documented the rapid for- sale home price appreciation that is occurring, implying the need for mechanisms to preserve affordability for longer periods or permanently. # long term housing units placed into long term / permanent affordability Can bring much larger funding and organization to “move the needle” on creating and preserving desired housing. Addressing affordable and workforce housing primarily through federally-funded or sponsored mechanisms such as HUD funding (HOME, CDBG) is ultimately a small-scale approach to a large issue. Creating tools with the organizational and financial resources to execute larger-scale activities in a quicker time frame may be needed in order to keep up with the Austin metro’s ongoing housing price appreciation. Cons: Will take considerable time and effort to initiate and, for certain tools, acquire properties. YES, if existing CLT can expand to Georgetown or if a thrid party is willing to donate land. Examples: Austin and Houston have started community land trusts. The Houston Land Bank and Houston Community Land Trust have been formed act in concert to acquire sites for new affordable for- sale homes and create permanent affordability. Houston's receives land from the Houston Land Bank when a prospective homeowner chooses the Land Trust option. Policy: Support the non-profit community to create housing opportunities for the most vulnerable residents (including but not limited to homeless, seniors, youth aging out of the foster care system, and people with disabilities). Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Health and Human Service Element The City Charter lists a Health and Human Services element in the Comprehensive Plan. A needs assessment of vulnerable populations can inform the element. Type of Action (program, policy, study): Study Potential partnering opportunity with WilCo and/or surrounding cities for needs assessment Partnerships for assessment/Ge neral fund for element ($$) 1. Support a needs assessment of potentially vulnerable populations to refine the scope and focus of the Health and Human Services Element. 2. Develop a Health and Human Services Element for the comprehensive plan, as required by City Charter. Seniors, Low-Income Completion of plan; measure through homelessness rates, foreclosures Meet charter requirement; protect vulnerable populations Cost/effort Yes City of San Antonio's Accomplishments by the Number to track progress (https://www.sanantonio.gov/humanservices/about#268633469-children) Policy: Encourage and incentivize new housing and reinventions or additions to existing housing to provide a mixture of housing types, sizes and price points. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs TIF/TIRZ TIRZ policy might include provision for units available to certain AMI groups or fee- in-lieu Type of Action (program, policy, study): Policy Always City General Fund; potential to include WilCo property tax also Designate TIRZs for larger projects or multi-owner districts with significant public infrastructure, facilities, or amenity needs to assure market viability ($$-$$$$) Need to create zones when base year assessed value is low (Jan. 1 value of creation year) Could be used to enhance affordability for either for-sale or rental; Moderate / middle income HH ($70K and below) need for-sale homes <$275K (from Housing Study); helping developers fund infrastructure, land costs, materials can help deliver housing in this price range; could also help deliver new rental housing at rents lower than new Class A (under $1,300/month per Affordability Analysis) # units created within the zone, especially within targeted sale / rent price ranges; amount and timing of tax increment generated to fund public improvements No additional fees / taxes imposed on zone properties; can issue debt Additional administrative and legal costs to run TIRZ; City gives up portion of property tax revenue during life of zone YES if project or area fits creation criteria; participation of WilCo potentially makes it very attractive Dallas and Houston have required TIRZs to either include development of affordable units or have TIRZ funds set aside for affordable housing development. Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 7 of 9 DRAFT Page 20 of 42 Housing Toolkit Draft 11/27/2019 Municipal Utility Districts Special purpose finance district. MUDs help offset up- front infrastructure costs to the developer who would otherwise have to recoup them through lot/home sale prices; helps keep home sale prices more affordable in projects outside city limits N/A N/A 1. Evaluate policies for potential housing d MUDs help offset up-front infrastructure costs to the developer who would otherwise have to recoup them through lot/home sale prices; helps keep home sale prices more affordable in projects outside city limits Successful development completion and absorption; rapidity of developer reimbursements Can be applied outside city limits (in ETJ) MUD tax can be higher than City tax, so lower sale price somewhat offset by higher PITI Consider on case-by- case analysis; no precedent for consent contingent upon certain price range of homes, but may be possible Georgetown ETJ has existing MUDs; no precedent available regarding requirements for affordability Public Improvement Districts Special purpose finance district. MUDs help offset up- front infrastructure costs to the developer who would otherwise have to recoup them through lot/home sale prices; helps keep home sale prices more affordable in projects outside city limits. N/A N/A 1. Evaluate policies for potential housing d MUDs help offset up-front infrastructure costs to the developer who would otherwise have to recoup them through lot/home sale prices; helps keep home sale prices more affordable in projects outside city limits Successful development completion and absorption; rapidity of developer reimbursements City controls; wide range of improvements can be funded PID assessments are on top of City property tax, so property owner has higher ongoing payment burden (unless offset with City tax abatement) Consider on case-by- case analysis; no precedent for consent contingent upon certain price range of homes, but may be possible PIDs have been used extensively in the DFW metro; Travis County also has PIDs; not know if any PIDs or PID policies have been created specifically for housing with some affordability restriction Low Income Housing Tax Credit process* Support LIHTC development (workforce) that meet City defined process Development using LIHTC for genearl population as proposed by developers. Type of Action (program, policy, study): Policy General fund/staff time General fund/staff time ($) Build on existing policy workforce renters # of units available, change in percentage of cost burdened renters No cost to city. Some of only funding available to build volume of workforce housing units 9% tax credit developments unlikely to be competitive in Georgetown Yes various around Texas including Georgetown Policy: Ensure land use designations and other policies allow for and encourage a mixture housing types and densities across the community. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Development Regulations Revise development regulations (Zoning, Overlay Districts, Neighborhood Conservation Districts, Diverse Housing Options) Type of Action (program, policy, study): Policy General Fund General Fund ($)Begin next budget cycle Housing Study documented both need for entry- level single family below $275K and current (and implied potential) role of moderate density rental properties in serving a middle income market; having flexibility in development regulations to facilitate housing diversity can help achieve additional development of these types and serve market segments of different resident ages and life stages as well as incomes. Document diversity in type and price of new housing development Will make it easier to develop moderate-density housing through increasing the diversity of housing types and lot sizes (for SF) Will need to determine which areas of the City are reasonable candidates for strategy YES Conroe recently reduced minimum lot sizes to allow single family homes at a lower price point in a master planned community. The City of Kerrville through the updates to the zoning code, revised an existing district to include more housing types. The biggest road block of the previous district was the different levels of approvals required for anything that was not traditional single family. In the “newer version” these secondary and tertiary approval processes were removed. The new district now allows for a variety of housing types within the same district. Single family (on slightly reduced lot size – 4500 sq. ft.), duplexes, townhomes, patio homes, and small lot single family (3300 sq. ft. lot with separate alley access). To address the variety of housing types, building codes, and property values, we limited each block face to one consistent housing type. Policy: Promote aging in place opportunities by aligning land use policies and transportation policies that promote a housing market capable of accommodating residents throughout all stages of life. Potential Tool Description Potential Funding Options Recommended Funding Implementation Steps (Year or Steps Required in Advance) Potential Impact to Housing Need (low income/workforce) (ownership/ rental) How is performance managed ? How is success measured? Pro Con Appropriate for Georgetown (Yes or No) Example Texas Cities / Programs Health and Human Service Element The City Charter lists a Health and Human Services element in the Comprehensive Plan. A needs assessment of vulnerable populations can inform the element. Type of Action (program, policy, study): Study Potential partnering opportunity with WilCo and/or surrounding cities for needs assessment Partnerships for assessment/Ge neral fund for element ($$) 1. Support a needs assessment of potentially vulnerable populations to refine the scope and focus of the Health and Human Services Element. 2. Develop a Health and Human Services Element for the comprehensive plan, as required by City Charter. Seniors, Low-Income Completion of plan; measure through homelessness rates, foreclosures Meet charter requirement; protect vulnerable populations Cost/effort Yes City of San Antonio's Accomplishments by the Number to track progress (https://www.sanantonio.gov/humanservices/about#268633469-children) Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 8 of 9 DRAFT Page 21 of 42 Housing Toolkit Draft 11/27/2019 Support services to support aging in place Aging at home often requires integrated services including transportation, healthcare, food service, and possibly utility billing assistance. Type of Action (program, policy, study): Program Texas Department of Housing and Community Affairs - Comprehensive Energy Assistance Program utility assistance program (https://www.tdhca.state.tx.us/community-affairs/ceap/) General fund ($$$) Evaluate opportunities to build an enhanced support services program to provide transportation, healthcare, food services, and utility billing assistance to seniors, which should be addressed through the Health and Human Services Element. Seniors Number of seniors participating in program; annual survey of seniors to evaluate awareness and participating Support for Georgetown's sizable senior population; protect vulnerable populations Additional cost Yes Houston's Home Repair Program requires single-family projects accommodate aging-in-place (https://houstontx.gov/housing/home_repair_programs.html) Dallas' Office of Senior Affairs (https://dallascityhall.com/departments/community- care/Pages/seniorservices.aspx) Level of Expense Legend $ - under $10K $$ - $10K - $50K $$$ - $50K - $100K $$$$ - $100K Page 9 of 9 DRAFT Page 22 of 42 1 2/26/19 Re: State of Housing Background Materials Background On May 24, 2016 Council directed completion of an update to the Housing Element and also a Housing Feasibility Study. Council asked to evaluate the City’s housing needs of three populations: low income, workforce and senior. City Council appropriated funds in the Fiscal Year 2017 budget and approved a contract for services which included an update to the Housing Element and Housing Feasibility Study, hereinafter referred to as the “Housing Toolkit” or ‘Toolkit”. The update to the Housing Element and the development of a Toolkit within the overall 2030 Comprehensive Plan Update will align the City’s development, fiscal and land use strategies. Figure 1 - Housing's Role in Future Land Use 2030 Plan Update goal development During the December 11, 2018 City Council workshop, the project team presented Council a review of the existing land use goals and a summary of the public input to date. Council recommended that a housing specific goal be considered. At the January 3, 2019 Steering Committee meeting, after reviewing the existing land use goals, the committee found that recent public input themes related to housing were not included and therefore not reflective of recent community input. At the January 10, 2019 Joint Session of City Council and Planning & Zoning Commission, the group arrived at consensus on a Housing specific goal: “Ensure access to diverse housing options and amenities and preserve existing neighborhoods for residents of all ages, backgrounds and income levels.” Page 23 of 42 2 2030 Housing Element Update Included in the newly formed housing goal are three specific themes: affordability, diversity and preservation. Together, the three themes provide a fuller community housing strategy that preserves existing housing stock and accommodates future needs by creating greater consumer choice by 2030. The 2030 Housing Element uses the data from the technical study and concerns from the public input to inform the policies for each of the areas. Figure 2- Comprehensive Housing Plan Key Terms Used in this Report • Affordable housing - regardless of income level, affordable housing is housing for which all combined expenses—mortgage or rent, utilities, insurance and taxes—cost no more than 30% of gross household income. • Area Median Income (AMI) – used by HUD to determine eligibility for housing programs. This calculation is used in this report to reflect regional conditions and the household incomes eligible for federally subsidized units. The AMI for Williamson County is used to calculate eligibility in Georgetown. • Median Household Income – half of households earn below and half earn above • $81,818 WilCo (2016 US Census ACS 1 year estimate) • $67,379 Georgetown (2016 US Census ACS 1 year estimate) • Cost Burden – paying more than 30% of gross income toward housing Affordability DiversityPreservation Support existing Neighborhoods Increase consumer choice Figure 3- Household expenses Page 24 of 42 3 • Low-income (Industry standard)- Often households that make 50% or 30% or less than AMI • Workforce (City of Georgetown UDC) - Workforce Housing Developments are available for those whose incomes are less than or equal to 80% AMI • Senior (Industry standards) - Can be age restricted at 55 or 62, Census data addresses 65+ • Planning Area - Geographical study area that includes the City limits of Georgetown and the extraterritorial jurisdiction (ETJ) Technical Studies Community Development Strategies (CDS) was hired as a sub-consultant to Freese & Nichols, the prime consultant for the 2030 Plan Update, to complete a technical study of housing. The components of the technical study consisted of a a) Housing Inventory, b) Subarea Profiles and an c) Affordability Analysis as detailed below. Housing Inventory Purpose The Housing Inventory serves as a full accounting of housing units and households in the City’s planning area. The inventory provides the type, age, lot size, tenure, and household composition of the city’s housing stock. This report tallies and catalogues the various types of housing existing in Georgetown. The Inventory has two primary data sources: (1) the Williamson Central Appraisal District (WCAD) and (2) Nielson / Claritas, a private sector provider of demographic data estimates based on recent data available from the Federal Bureau of the Census and other sources. The geographic Planning Area covered includes the entirety of the City’s incorporated jurisdiction plus its extraterritorial jurisdiction (ETJ). While the Nielsen / Claritas data is ascribed generally to the year 2018, the WCAD data is specifically ascribed to a download period of June-July 2018. The inventory includes maps for comparison of the characteristics across the city. CDS delivered a Housing Inventory in July 2018. The information was presented to the Housing Advisory Board on July 23, 2018. Additional information was presented to the Comp Plan Steering Committee on November 1, 2018. Key Findings The report concludes that housing product options not evenly distributed across the planning area and there are decreasing options among lower price points. The Planning area has the following characteristics: Page 25 of 42 4 Housing Unit Characteristics • 16.6% MF/83.4% SF • Median home size 1,994 sq ft., Average home size 2,159 sw. ft. • Median lot size .23 acre, Average lot size 1.17 • 33,842 total units • Median Homes Value (excluding multi-family) $269,593 • Average Value (excluding multi-family) $309,797 • $146 per sq./ft. (median 2018) • Median Year built (all units) 2004 Household Characteristics • 22.4% Renters/77.6% Owners • Average size 2.47 persons • Homeowner average of 9 years, Renter occupied 3 years • Median Household income is $81,219 (94% AMI), Average is $103,384 Subarea Profiles Purpose The subarea profiles provide a basis for making policy recommendations through an understanding of housing as it exists across the city. The granularity of the subarea profiles allows the City to make recommendations for specific geographies or recommendations that may apply to the entire study area: •Housing diversity (type, lot size) •Housing choice (square footage, price point) •Historic cost trends (MLS sales and rental data 2008-2018) •Existing affordable housing stock (market rate and subsidized) The Subarea map consists of 14 areas. The map was developed using housing characteristics of housing age, type, density and value. Other considerations included well known boundaries such as neighborhoods Sun City (age-restricted), zoning overlays such as the Old Town / Downtown, Census Block Group boundaries and elementary school zones although the zones had limited impact on the subarea boundaries. The subareas are not intended to define “neighborhoods”. The review of housing characteristics for the subareas included Multiple Listing Service (MLS) sales information from the Austin Board of Realtors, US Census data and field research. The Subarea information was presented at: • August 20, 2018 Housing Advisory Board meeting • September 6, 2018 Steering Committee meeting #4 • September 18, 2018 Planning & Zoning Commission meeting Page 26 of 42 5 Findings • Some subareas have no or little housing product diversity or rental options. Other subareas such as those in the center city have a wide variety of housing types and ages. • Older duplexes, four-plexes and multi-family properties play an important role in affordable housing stock. • Neighborhood change is a concern for some existing residents. • Household characteristics are depicted geographically and varies widely across subareas. A summary for each of the subareas is attached to this memo (Attachment 1 – Subarea Profiles). Affordability Analysis Purpose The Affordability Analysis provides a general picture of the need for affordable rental and for- sale housing in the Georgetown Planning Area defined as the City of Georgetown City Limits and its extra-territorial jurisdiction. The report is broken into three parts: Affordable Housing Demand (including regional employment data), Affordable Housing Supply, Analysis and Recommendations. Housing Demand and Supply information was presented at the following meetings: • September 24, 2018 Housing Advisory Board meeting • October 15, 2018 Housing Advisory Board meeting • November 1, 2018 Steering Committee #5 • November 6, 2018 Planning & Zoning Commission meeting Findings The bullets below represent the generalized findings of the 11/1 Steering Committee: • Rental Demand Housing is an economic development issue Surprised by high renter cost burden Surprised Georgetown AMI is lower than WilCo Surprised that there are a significant amount of more renters are cost burdened than owners The data suggests there is a segment of the population for whom Georgetown is unaffordable • For Sale Demand Do Sun City numbers skew planning area numbers? Lower income is more cost burdened Surprised that anyone under $20K could own a home Not enough houses for $50K incomes When looking at regular employment you can’t afford the job Income does not equal ownership Page 27 of 42 6 • Rental Supply Send to Council: Georgetown needs more 2 plex, 4 plex Used to be no more than 20% class A, we have 40% because of cost to build Lower rents for single family than expected Duplexes = affordability Surprising that more subsidized units than Class B • For Sale Supply Surprised nothing under $399K west of I-35 Townhouses/condos play a role in the market Density is the answer # of units under $275K in next 12-18 months, making some progress Surprised to know wages not growing as fast as housing costs 2008-2018 Wages not growing as fast as housing costs increase UDC, increase cost Demand Housing demand is influenced by regional employment trends, household income, age, ability and desire to rent or own, among other factors. CDS analyzed employment data for the region using the Williamson County geography. Regional Employment trends Nearly half of all jobs (81k/165k) in Williamson County are in industry sectors with lower average wages, these sectors are exhibiting growth in overall jobs (Texas Workforce Commission Quarterly Census of Employment and Wages (QCEW) – August 2018) • Retail Trade • Educational Services • Accommodation and Food Services • Health Care and Social Assistance Strong growth in high-wage sectors in Williamson County (Texas Workforce Commission Quarterly Census of Employment and Wages (QCEW) – August 2018) • Manufacturing • Professional and Technical Services Life Sciences, including Health Care, has been identified as a target industry for Georgetown to pursue. While success in this pursuit would bring a number of higher-wage jobs, it will also grow the number of lower-wage jobs associated with Health Care, which has a wide range of wages for that sector. (City of Georgetown, Target Industry And Workforce Analysis, 2017) Page 28 of 42 7 Rental Supply The last four years since 2014 have included generally rising rents in the greater Austin region, though the increases appear to be plateauing since 2017. This may be because overall supply has been increasing with new property deliveries, nearly all of which have been considered Class A, since land and construction costs generally limit the financial feasibility of new unsubsidized development to only upscale projects. The market rate (non-subsidized or income-restricted) multifamily properties in Georgetown that supply more affordable rental units either fall into the Class “B” designation by the real estate investment community or are unrated. They tend to be older properties (the newest dates to 2001). Lease rates for one-bedroom units tends to range from $750 to $900 per month. Two-bedroom units range from approximately $900 to $1,100, with such units at a few properties slightly higher priced. The total number of units in the listed properties is 1,293. Georgetown also has a significant supply of multifamily properties that have been publicly subsidized in some fashion (federal tax credits, public housing, etc.) and have income restrictions on tenants to remain affordable to lower income residents. Three such projects are under construction, two of which will offer market rate units. Some properties are age-restricted to seniors. The total number of units in these properties is 1,916, including the under construction properties, and of which 1,697 units are income-restricted. Multifamily apartments are not the only source of rental units in the Georgetown Planning Area. Housing consumers also look for individual or small-scale rentals. Unfortunately, comprehensive data is not available to summarize and analyze these transactions. A particular type of rental unit in Georgetown for which no large transaction or listing sample was available is the small-scale multi-unit property (mostly quadplexes) and duplexes. These are mostly concentrated in neighborhoods on just south of the historic core, just west of I-35 off Leander Road, and in Figure 4 – Regional industry trends, wages and percentage of employment Page 29 of 42 8 relatively older residential areas off Williams Drives also just west of I-35. A small sample of listings from field research indicates that typical rents in these properties may be comparable to Class B market rate multifamily units for the same number of bedrooms. Type Percentage of Units Class A 37% Class B 20% Rent Restricted 27% Duplex 10% Fourplex 6% For Sale Supply Market data for the Georgetown Planning Area from the MLS transactions in recent years show that there is very little excess inventory of existing homes available; this is evident from the relatively small difference between listing price and sales price, and also the short average days on market (less than 40, down from a typical 70 to 90 a few years earlier). The sales volumes in the bottom two price ranges, below $275,000 (1,230 total sales), are a dramatic drop from previous years. In the 2014-2016 period, sales in these two categories totaled 3,087. These lower price categories represent “entry level” prices for first-time buyers at or below area median income (approximately $67,000 and $82,000 for Georgetown and Williamson County respectively as of the 2016 American Community Survey – see the analysis in the next section). However, the area housing market is rapidly shrinking the available inventory of such homes. Figure 5 – Multi-family rental percentages by product type Figure 6 – Multi-family rental percentages by product type Page 30 of 42 9 Sun City Factor One of the frequently asked questions when housing data was presented in 2018 was how much Sun City skewed any city wide statistics. CDS ran a report that was able to separate the geography that approximately encompasses Sun City (eight Census block groups) from the rest of Georgetown. The findings are below: • The age restriction for living in Sun City is that one person in the household must be at least 55 years of age. Of the 7,787 households represented in the eight Census block groups, 6,419 (or 82%) of the households are headed by persons 65 years or older as of 2016. • Included in the overall Georgetown tally, 65 and older households account for approximately 44% of total households. Removing Sun City, this share drops to approximately 25%. • Because Sun City is dominated by owner households, its impact on renter data for the city overall is small. A similar share of total renter households in the Sun City Block Groups are cost-burdened as compared to the city excluding Sun City. • A lower share of Sun City owner households have a mortgage than in Georgetown overall. This is likely because many Sun City residents purchased their homes with cash, having equity from previous homes they owned. Interestingly, a higher share of Sun City owner households with mortgages were estimated to be cost-burdened than in the rest of the city. • Sun City accounted for a very high share, 69%, of all over-65 owner households in Georgetown. Of these households, a higher share were cost-burdened than in the remainder of the city – approximately 25% to 18%. Page 31 of 42 10 Analysis & Recommendations The current housing needs for the three groups requested by Council are presented below. The chart above illustrates the number of Georgetown households at each of the HUD defined income levels using the Williamson County Area Median Income of $77,800 for 2016. The American Community Survey (ACS) conducted by the Census provides the number of households by income level for the City of Georgetown. That figure can then be apportioned to the AMI levels to provide an estimate of number of households by AMI level. The ACS 2016 1 Year estimate for the City of Georgetown was a total of 25,235 households, with 10,271 of those households headed by a householder over the age of 65. Low Income households The findings for the approximately 3,000 low income households with incomes less than 30% of the Area Median Income were that: • 69% of renters (1,100/1,600 HHs) are cost burdened • 68% of owners (950/1,400 HHs) are cost burdened Possible policies to address this high cost burden include policies to increase rental inventory and preserve homeownership for low income households. Workforce households The findings for the approximately 8,000 workforce households with incomes between 30% and 80% of the Area Median Income were that: • 80% renters (2,000/2,500 HHs) are cost burdened • 42% owners (2,300/5,500 HHs) are cost burdened • Limited supply for sale under $250K Page 32 of 42 11 Possible policies to address this high cost burden and limited supply of affordable for sale housing include policies to increase rental inventory, preserve homeownership, and increase homeownership opportunities for workforce households. Senior households The findings for the approximately 10,000 senior households with incomes between 30% and 80% of the Area Median Income were that: • 67% renters (1,000/1,500 HHs) are cost burdened • 24% owners (2,000/8,500 HHs) are cost burdened Possible policies to address this high cost burden include policies to increase rental inventory and preserve homeownership for senior households. Future Housing Need The future needs for housing are projected using the anticipated growth rate for Williamson County from the Texas State Data Center for the year 2030. Page 33 of 42 12 The above chart provides a simple analysis of possible housing units needed in 2030 to accommodate the City’s 2016 household population by income based a 55% growth rate, as described in the preceding figure. Public Input One of the seven themes that emerged from the extensive public input conducted during 2018 was to focus on housing & affordability. A summary of the public input from the various outreach opportunities can be found in the attached Housing Public Input Report (Attachment 2). Page 34 of 42 Page 35 of 42 From:Carl Norris To:Sofia Nelson Cc:Nathaniel Waggoner; District2; District4; District7; District6; Mayor; District3; District5; GTAB Board; GRP_2030 Subject:[EXTERNAL] 2030 Comprehensive Plan Update-ACC Comment No.3 Date:Wednesday, November 13, 2019 11:44:36 AM Attachments:Email 102119-Pitts-Land Use-2030 Compe Pln Update- GTU Relocation.eml.msg Email 102219-Nelson-CC Workshop 102219-Draft FLUP.eml.msg GTAB 110819-Dew Statement-No.98.docx GTAB 110819-Norris Statement-No.99.docx [EXTERNAL EMAIL] Dear Ms. Nelson, RE: Email dated December 26, 2018- Subject: 2030 Comprehensive Plan Update ACC Comment No.1 Email dated October 10, 2019 – Subject: 2030 Comprehensive Plan Update ACC Comment No.2 Please file the contents of this email and its attachments as 2030 Comprehensive Plan Update ACC Comment No.3 The No.1 priority of government is the safety of its people. This priority is being abandoned by our city’s 20130 Comprehensive Plan Update officials and staff by planning for permanent location of the airport in the heart of our densely growing city and totally atop the EARZ. The presentation by you and your quality planning staff of the 2030 Comprehensive Plan Update, Future Land Use Map (FLUM), land use policies, categories, and approval schedule to the city council on November 12, 2019 remained essentially unchanged from that presented to city council on October 22, 2019. The presentation continues to ignore flagged citizen concerns and comments of the public hazards of the airport’s location. ACC comments No.1 and 2 provide comprehensive explanation of the public safety, health, and environmental hazards of this location and mandatory need for NEPA compliance for the airport operations 2016 ,20 year, 52 projects, $60 Million PROGRAM of new federal and state funded capital improvements demonstrated by preparation of a fully scoped EIS and resultant ROD to ensure government transparency and accountability for this hazardous PROGRAM. These concerns are heightened by no reduction in FAA’s data showing over 70% of ALL air crashes occurring during take offs or landings; over 80% of ALL aircraft using the airport being piston engine toxic leaded fueled aircraft with resultant health hazards; TV dramatizations such as “Air Disasters” and air crashes at other airports displayed on news media outlets; refusal of the city and FAA to provide flight rules to mitigate low level debilitating flight noise over homes, schools, churches, and nursing homes over city established “safety and noise Page 36 of 42 sensitive” areas; and citizen airport noise complaints reaching the Congress and creating the Congressional Quiet Skies Caucus. In addition, every member of the 2030 Comprehensive Plan Update staffs is well aware of city plans to subdivide and develop over 100 acres of airport property into leased tracts for use by FBO’s authorized to use every known type of hazardous materials; that EPA recognizes over 30 types of hazardous materials for use in aviation electronics, engine, and airframe repairs and remodeling; and no pro-active inspection/enforcement controls exist for EARZ protection regarding hazardous materials handling, storage, use, containment, and disposal. TCEQ has no regulatory means of mandatory EARZ leased subdivisions review/approval and no means of pro-active advance hazardous materials inspection/enforcement until AFTER A DISASTER. This email’s attachments include ACC statements to the GTAB from August through November 2019 demonstrating a seamless relocation of airport operations to a safe, superior site is a practicable alternative to the airport’s current hazardous location. More information will be provided in future GTAB meetings. The GTAB has refused to discuss this issue at its meetings nor provide open public meetings or workshops for such purpose. The current 20 year Airport Master Plan developed intentionally and entirely without NEPA concerned citizen input and participation for health, safety, and environmental concerns of those on the ground contains a $60 Million PROGRAM of new federal/state taxpayer funded capital improvements which totals over TWICE the total of ALL PRIOR federal/state funding in the airport’s over 70 years civilian airport history. The draft 2030 Plan Update schedule for final development and approval of the plan has NO SCHEDULED open public hearings specifically allocated to the FLUM’s airport location to ensure governmental transparency and accountability for this governmental decision. The ACC has two demands regarding the 2030 Comprehensive Plan Update process: (1) an item inserted in the draft 2030 Plan Update completion schedule between the January 14th City Council Workshop and the Public Outreach on the draft plan providing for stand alone newspaper advertised open public hearings process structured on FAA EIS format for full public examination of ALL cumulative social, economic, and environmental (safety, health) impacts of the new $60 Million PROGRAM, mitigation measures for elimination or reduction of adverse impacts, and FULL examination of ALL practicable ALTERNATIVES to the PROGRAM including the AIRPORT’S OPERATIONS LOCATION. These hearings must be open to ALL impacted members of the Community and Region and representatives of interested Agencies unencumbered by individual speaker time limits or individual addresses on individual structured topics. A transcript of hearings proceedings must be made part of the adopted 2030 Plan Update, AND; Page 37 of 42 (2) The adopted 2030 Plan Update be strongly flagged within the document stating that due to cumulative potential public safety, health, and environmental adverse impacts to those on the ground the airport location shown on the FLUM is a subject of documented public controversy AND the airport’s operations must be relocated to a safe and superior site as expeditiously as possible. On behalf of the ACC and Respectfully, Hugh C.(Carl) Norris, Jr. Member: ACC Mobile: (512) 925-5202 Page 38 of 42 GTAB MEETING - NOVEMBER 08, 2019 Good morning Mr. Chairman, and members of the GTAB. My name is Wendy Dew. My residence is 30109 Spyglass Circle, Georgetown, Texas. I am a member of the Airport Concerned Citizens (ACC). My comments address ACC demands for a professional study showing how our airport can be seamlessly relocated at no cost to existing taxpayers. As a citizen and taxpayer of Georgetown, I am a co-owner of the airport unlike TxDOT and FAA who behave as if they own it. In its current location approved by our leaders for permanent placement in the heart of our planned city rapidly growing to 200,000, it remains a hazardous threat to the health, lives and properties of our citizens, the esteem of our future city and a regional hazard. It's inevitable expansion with the city's growth will result in unacceptable operations, extended runways, destruction of existing neighborhoods and will politically tear this city apart. Other cities facing similar situations have relocated their airports. Near examples are Temple, and Austin. Others exist across the nation such as St. George Airport that I use when visiting Utah family. These examples show that FAA not only approves airport relocations to safer, superior sites, but in some cases will provided grants to assist relocation and in all cases has continued grants for the new location. What this city desperately needs is an airport relocation plan. This board has the authority to make a recommendation for such a plan to City Council. We are all familiar with the concept of trading the value of a property for another by written agreements. This can be done for the seamless relocation of the airport to a safe, superior site at no cost to existing taxpayers. We need a plan developed by professionals. In this case, our professionals must be experts in FAA airport design and regulations, negotiations and document preparations with private owners and governmental units, and highest and best use land conceptions, land sales and closings. One won't find these and other areas of expertise in one firm. If I were in charge of a Blue Ribbon Committee for the plan and its mission as stated, I would demand a planning agreement between the city and a single joint venture of professional firms and individuals with one firm in charge selected on basis of demonstrated expertise in joint venture management to fully implement the study's mission. Our airport has tremendous highest and best land use redeveloped value. The property is in the planned heart of our city, three miles from Court House Square and Old Town, and within the fastest growing metro-area in the nation. It has ready access to IH-35, SH 130, the Sheraton Hotel and Conference Center, major city roadways, and other highways. It is surrounded by utilities, quality schools, and is leveled and drained for rapid development. Current developments such as the Rivery, Wolf Ranch Center, Wolf Lakes Village and development of the old Mueller Airport property demonstrate its best use would be as the financial and Page 39 of 42 business center for Georgetown including up-scale shopping, restaurants, and residential housing. Our ACC August 9, 2019 statement outlined six tools or issues readily available for use by a selected professional joint venture consultant team for the study. There are others. The City Council routinely funds projects for excess budgeted revenues, over $1 Million for Austin Ave. Bridges alternatives, city offices, other federal funded projects including a recent $390,000 cost share for a bus line few folks ride. This study is vital for the future of our city and region. Mr. Chairman, this board has the responsibility of its appointed public service members to recommend to the City Council that it establish, prior to the end of this calendar year, a Blue Ribbon Committee to implement this vitally needed study. Comments and questions to me would be appreciated. Page 40 of 42 GTAB STATEMENT NOVEMBER 8, 2019 AGENDA ITEM “D” AIRPORT MONTHLY REPORT Good morning Mr. Chairman, and members of the GTAB. My name is Hugh C. Norris, Jr. My residence is 4400 Luna Trail, Georgetown, Texas. I am a member of the Airport Concerned Citizens (ACC), a group of over 100 city households. My comments this morning on behalf of the ACC continue the four ACC statements from August 9th through Ms. Dew's statement this morning focused on our ACC demands for a professional study showing how the Georgetown Municipal Airport (GTU) can be seamlessly relocated to a safe, superior, and protected site at no cost to current taxpayers. When the old Airport Advisory Board developed without critical public participation the 1980 GTU Airport Master Plan, the scientific knowledge of the EARZ, the Edwards Aquifer, and mapping of both had not been developed to their extent today. Now we know different. If a GTU adjacent property had been prior developed for use as a livestock feedlot/packing and rendering plant or a munitions or hazardous materials production plant and been previously grandfathered into the city during that time, the city leaders would have taken notice and pressed by public objections for its relocation long before now. Because the GTU is an airport, with recognized value to the overall local economy and public official's concealment of its hazards from the ground dwelling public, our city leaders have resisted recommendations for its relocation to a safe, superior site. The ACC September 13th statement described historical actions leading to the legislature's statue requiring TxDOT to provide a State Airport for Central Texas and the agency's professional study to determine needs for such an airport. That 2003 20 year study showed minimum requirements to the year 2023 as 750 acres, a runway minimum of 7,000 ft and cost of $59 Million. Our area has experienced a surge in unexpected added growth and aviation needs since 2003 with more on the way. City, TxDOT and FAA officials have been working for the past near 30 years to make that state statute fit the GTU. Trying to fit those 10 pounds of need into the 3 pound GTU bag will politically tear this city apart. Seamless relocation of the GTU is the only sane political alternative. A variety of relocation models are available for study by a joint venture of professionals. The most favored by ACC is an "Airport Authority" recommended by CH2MHill, Inc. in its 2013 GTU "Business Case Analysis". Why? Because an airport authority can be legislatively created and protected to operate outside the city limits, entirely off the EARZ, with access to key roadways, and by a board of directors under city control. The model most favored is a modified type of the Ft. Worth Alliance Airport (AFW). The AFW is a product of a partnership between a private land owner, the City of Ft. Worth and FAA. A similar airport developed by Georgetown Page 41 of 42 leadership and financing would provide all Reliever Airport services envisioned by the legislature for ABIA and Central Texas of a vast array of flight services, charter passenger, air cargo, corporate and government aviation to serve the entire region. In lieu of destruction of city neighborhoods, this regional Reliever Airport could provide runways of 8 to 10,000 ft with strength for regional aviation needs, relocation of existing GTU FBO's, protection from non compatible land uses, safe flight rules, provisions for adjacent private land development, utilities, connecting roadways, and taxes for appropriate entities. As previously described, the ultra-upscale highest and best land use retail value of GTU property is in excess of $100 Million. Moreover, based on the 164 acres Wolf Lakes Village projected 2050 taxable value, developed GTU's taxable property valuation could exceed $6 Billion. Targeted Certificates of Obligation to developed GTU ultra-upscale properties even under today's tax rate would exceed $25 Million per year. In addition, the city could ensure to prospective purchasing site developers extension of needed utilities, off-site improvements, and a TIRZ for all public facilities required for construction of GTU properties. It is important for the city's planning purposes that prior to the end of this calendar year the City Council establish a Blue Ribbon Committee charged with implementing a professional study showing how the GTU can be seamlessly relocated at no cost to existing taxpayers. Let's work together to create a safer, superior, GTU for the health, safety, and environment of our Central Texas region and protect our "City of Excellence". Mr. Chairman, this board must recommend to the city council to act on this stated need immediately. Questions and comments are requested from the board Page 42 of 42