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HomeMy WebLinkAboutAgenda_HAB_01.14.2014Notice of Meeting for the Housing Advisory Board of the City of Georgetown January 14, 2015 at 3:30 PM at 103 W. 7th Street, Georgetown, TX 78626; Convention & Visitors Bureau The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711. Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A Consideration and possible action to approve minutes from the November 19, 2014 meeting. B Consideration and possible action to approve a resolution of support for Steele Georgetown LIHTC, LLC to apply for the Housing Tax Credit for the rehabilitation of the Georgetown Square Apartments, located at 206 Royal Drive.--Jennifer C. Bills, Housing Coordinator C Consideration and possible action to approve a resolution of support for HVM 2015 Georgetown, Ltd. to apply for the Housing Tax Credit for the rehabilitation of the Northwest Apartments, located at 1623 Northwest Boulevard. D Consideration and possible action on creating a presentation to City Council on February 24, 2015.--Jennifer C. Bills, Housing Coordinator E Past Incentive for Housing Builders. F Consideration and possible action to approve the amended board bylaws in accordance with the revised Code of Ordinances. --Jennifer C. Bills, Housing Coordinator G Reminder of the next regular meeting date of February 18, 2015. Adjournment CERTIFICATE OF POSTING I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the ______ day of __________________, 2015, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. ____________________________________ Jessica Brettle, City Secretary City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Consideration and possible action to approve minutes from the November 19, 2014 meeting. ITEM SUMMARY: FINANCIAL IMPACT: None. SUBMITTED BY: ATTACHMENTS: Description Type Draft Housing Advisory Board Minutes_November 19, 2014 Cover Memo Housing Advisory Board Minutes, November 19, 2014 1 City of Georgetown Housing Advisory Board Minutes November 19, 2014 at 3:30 p.m. Park & Recreation Administration Building 1101 North College Street, Georgetown, Texas 78626 Members present: Brad Curlee, Joe Ruiz, Brenda Baxter, John Gavurnik, Walt Doering, Harry Nelson, Monica Martin Members absent: Clay Woodard and Larry Gambone Staff present: Jennifer C. Bills, Housing Coordinator, Tammy Glanville, Recording Secretary This is a regular meeting of the Housing Advisory Board of the City of Georgetown. The Board, appointed by the Mayor and the City Council, makes recommendations to the City Council on affordable housing matters. Regular Session - To begin no earlier than 3:30 p.m. The meeting was called to order at 3:31 by John Gavurnik. Agenda A. Consideration and possible action to approve minutes from the October 22, 2014 meeting. Motion by Board Member Baxter to approve the minutes from the October 22, 2014 Housing Advisory Board meeting. Second by Board Member Nelson. Approved. (5-0). B. Consideration and possible action on creating a presentation to City Council in response to additional questions.--Jennifer C. Bills, Housing Coordinator (Brad Curlee and Joe Ruiz arrived) Board Member Gavurnik provided handout listing past special development standards and regulations used to build Windridge Village and Townhomes at Katy Crossing. Board and staff discussed the effects of current and past special development standards and regulations. Additional slides were added to presentation. Bills stated we are looking at February 24, 2015 City Council workshop and we can revisit the presentation in January. Housing Advisory Board Minutes, November 19, 2014 2 C. Discussion and possible action to forward a recommendation to City Council regarding the Commitment of Development Funding by Georgetown for projects seeking Housing Tax Credits.—Jennifer C. Bills, Housing Coordinator Bills provided the rules and scoring criteria for applicants. Board and staff had extensive discussion regarding financial investment, managing and monitoring a Housing Tax Credit Qualified Allocation Program. Bills discussed two main points that are out of the developer’s control that are weighted very heavily in the scoring; (1) tax credit resolution and (2) financial support from the local jurisdiction. Motion by Board Member Curlee to move for the city to consider financing program in which the city maintains the first lien on the property and has a loan agreement to its satisfaction signed by the developer. Second by Board Member Doering. Approved. (7-0) D. Discussion and possible action on a recommendation to develop a comprehensive plan, in collaboration with stakeholders and public-private partnerships, using a plethora of resources to build sustainable and affordable communities with housing as the medium.--Walt Doering, Board member Board Member Doering provided and discussed handout with board on suggested steps for crafting a Comprehensive Strategic Plan. Motion by Board Member Doering to recommend we develop a Comprehensive Plan, in collaboration with stakeholders and public-private partnerships, using a plethora of resources to build sustainable and affordable communities with housing as the medium for workers, millennials and seniors who are down-sizing. Second by Board Member Ruiz. Discussion followed. Denied. (2-5) (Curlee, Baxter, Nelson, Gavurnik, Martin opposed). E. Reminder to board members that are eligible for a second term about the reappointment process.--Jennifer C. Bills, Housing Coordinator Bills reminded the board the new term for all board and commissions start in March 2015. Applications for volunteers to serve on the board will be accepted until January 9, 2015. Bills explained to board a recent review and amendment process was conducted by the Legal Department, the membership of the Housing Advisory Board was decreased from nine (9) members to seven (7). Of the five board members with expiring terms, three are eligible to serve an additional two year term. Housing Advisory Board Minutes, November 19, 2014 3 F. Update from staff on recent conferences or articles related to housing trends--Jennifer C. Bills Bills provided a brief overview of the American Planning Association (APA) State Conference she attended. In addition, provided upcoming affordable housing discussions held in Austin. G. Reminder of the next regular meeting date of December 17, 2014. H. Adjournment. Motion by Board Member Doering to adjourn. Second by Board Member Curlee. Approved. (7-0). Adjourned at 4:57 __________________________________ _______________________________________ Approved, Clay Woodard, Chair Attest, Lawrence Gambone, Secretary City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Consideration and possible action to approve a resolution of support for Steele Georgetown LIHTC, LLC to apply for the Housing Tax Credit for the rehabilitation of the Georgetown Square Apartments, located at 206 Royal Drive.--Jennifer C. Bills, Housing Coordinator ITEM SUMMARY: Applicant's Request Steele Georgetown LIHTC, LLC is requesting a resolution of support from the Georgetown City Council to apply for the Housing Tax Credit (HTC) program through the Texas Department of Housing and Community Affairs (TDHCA). Staff Recommended Motion Forward the resolution of support request to City Council for approval. See the attached staff report for more information. FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer Bills, Housing Coordinator ATTACHMENTS: Description Type Staff Report Cover Memo Exhibit A--Location Map Backup Material Exhibit B--Locaiton of Multifamily Backup Material Exhibit C--Resolution Resolution Letter Exhibit D--Steele Properties Application Packet Backup Material Exhibit E--TDHCA Tax Credit FAQs Backup Material Housing Advisory Board Staff Report Royal Oaks Subdivision - Rezoning Page 1 of 3 OF to MF-2 Meeting Date: January 14, 2015 Item Description Consideration and possible action to approve a resolution of support for Steele Georgetown LIHTC,  LLC to apply for the Housing Tax Credit for the rehabilitation of the Georgetown Square Apartments,  located at 206 Royal Drive.  Staff Recommended Motion Forward the resolution of support request to City Council for approval.  Item Details Project Name: Georgetown Square Apartments Project Address: 206 Royal Drive  Location: Royal Drive, West of North Austin Avenue Total Acreage: 3.2 acres    Legal Description: Royal Oaks Subdivision, Lots 1 & 2  Applicant: City of Georgetown Property Owner: Steele Georgetown LIHTC, LLC Contact: Paul Moore, Steele Properties, LLC Existing Zoning: High Density Multifamily (MF‐2) District Tax Exempt: No Applicant’s Request Steele Georgetown LIHTC, LLC is requesting a resolution of support from the Georgetown City  Council to apply for the Housing Tax Credit (HTC) program through the Texas Department of  Housing and Community Affairs (TDHCA).  Financing The applicant is seeking to secure financing through the Low Income Housing Tax Credit Program to  receive 9 % housing tax credits.  Projects seeking credits are scored using the criteria set by TDHCA in  this competitive process.  This project is a rehabilitation project that is ensuring the continuation of  existing affordable units.  Because of this, they are applying within a special category of Rural Set‐ aside, so it would not compete against other new construction projects.  The City of Georgetown,  when compared to other cities of similar size throughout Texas, has two times the average number of  tax credit units.  This is not a market measure, but simply a statistical comparison.  Due to the two  times rule, any new application within Georgetown is required to secure a Resolution of Support in  order to apply.  Site Information This property is located on both sides of Royal Drive between North Austin Avenue and the dead end  Housing Advisory Board Staff Report Georgetown Square Apartments Page 2 of 3 Resolution of Support 2015 of Royal Drive east of I‐35.  See Exhibit A.    The existing 55‐unit complex was constructed in 1973 through the Project‐based Section 8   Department of Housing and Urban Development (HUD) property.  Since that date, the property has  not had any significant renovations or upgrades.  This renovation will bring the accessible units up to current Americans with Disability Act standards  as well as improve the energy efficiency of the units.  Units will be upgraded with low flow faucets  and toilets, additional insulation, new HVAC systems, ceiling fans and energy efficient light fixtures.   Additional site amenities will be added with addition of a clubhouse for residents.  Proximity to other Multifamily and Affordable Developments Within a one-mile radius, there are 10 existing multifamily developments and one under construction (Gateway Northwest). (Exhibit B) Development Address Units  Income  Restricted Program Mariposa at River Bend 121 River Bend Drive 180 Yes  Senior  HTC  Cypress Creek at River Bend 120 River Bend Drive 200 Yes HTC  Westwood Townhomes 200 River Bend Drive 110 No   Shady Oaks 501 Janis Drive 60 Yes  Section  8  Gateway Northwest  1617 Northwest  Boulevard 180 Yes HTC  Cedar Ridge Apartments  1500 Northwest  Boulevard 60 Yes USDA  Northwest Apartment  1623 Northwest  Boulevard 24 Yes  UDSA,  Tax  Credit  Apple Creek 302 Apple Creek Drive 176 No   Parkview Place 2111 N. Austin Avenue 176 No   Village Park Condominiums  300 San Gabriel Village  Boulevard 54 No   Two Rivers Apartments 105 N. Austin Avenue 179 No   Housing Advisory Board Staff Report Georgetown Square Apartments Page 3 of 3 Resolution of Support 2015 Affordability All of the units are rented to tenants that make less than 30% of Area Median Income, per the Section  8 and Tax Credit requirements.    Number of  Persons in  Household  Annual  Income before  taxes  (30%  AMI)  Maximum  Monthly Rent  1 $15,850 $396  2 $18,100 $453  3 $20,350 $509  4 $22,600 $565  5 $24,450 $611  6 $26,250 $656    Financial Impact to the City The applicant has requested up to $450,000 in financial contribution from the city in the form of a  fully collateralized loan.  The General Government and Finance Advisory Committee has  recommended approval of the full amount to City Council.  Future Application(s) The following applications will be required to be submitted:   Site Plan / Construction Plan for the addition of a community room;    Building permits for construction or renovations;   Certificates of Occupancy for changes in ownership.    Attachments Exhibit A – Location Map  Exhibit B – Location of Multifamily Developments  Exhibit C – Resolution  Exhibit D – Application Packet  Exhibit E – TDHCA Housing Tax Credit FAQ  Submitted By   Jennifer C. Bills, AICP, LEED AP, Housing Coordinator   N A U S T I N A V E N O R T H W E S T BL V D E MORROW ST N I H 3 5 S B ENTR263 SB FM 971 R O Y A L D R A P P L E C R E E K D R NIH 35F W Y SB N I H 3 5 F W Y N B Exhibit A Coordinate System: Texas State Plane/Central Zone/NAD 83/US Feet Cartographic Data For General Planning Purposes Only 0 540 1,080 Feet ¯ Legend Site Parcels City Limits Georgetown ETJ §¨¦35 D r W e i r R d N orthwe s t B l v d N A u s t i n A v e Site City Limits Street Site ³ N IH 35 SB F M 971 N AUSTIN AVE S IH 35 SB S IH 35 NB W IL LIA M S D R N C O L L E G E S T S IH 35 FW Y SB L A K E W A Y D R H O L L Y S T E 2 N D S T S T A D I U M D R E CENTRAL DR OLD AIRP OR T RD DA W N DR E 7 T H S T SCENIC DR S A U S T I N AV E S M I T H C R E E K R D P A R Q U E V I S T A D R S C O L L E G E S T COUNTRY CLUB RD N IH 35 FWY SB N IH 35 FWY NB S IH 35 FW Y NB S IH 35 FWY NB N O RTH W EST BLV D G O L D E N O A K S D R GANN ST RIVER BEND DR PARKVIEW DR N E I N N E R L O O P S M A IN S T W 2 N D S T W C E NTR AL D R MA R T I N L U T H E R K I N G J R S T WOL F R A N C H P K W Y SAN GABRIEL VILLAGE BLVD PO W ER RD FONTANA DR SAN GABRIEL PARK CIR RIVER HILLS DR F M 97 1 T N M A P L E S T SMITH CREEK RD ± Legend Georgetown Square One Mile Area Exhibit BGeorgetown Square ApartmentsProximity to other Multfamily Northwest Apartments Mariposa Westwood Townhomes Cypress Creek Shady Oaks Gateway Northwest Cedar Ridge Apartments Georgetown Square AppleCreek ParkviewPlace San GabrielCondos Two Rivers     Resolution Number: ____________ Page 1 of 1  Description: ______________  Date Approved:  __________      RESOLUTION NO. __________    A Resolution of the City Council of the City of Georgetown, Texas approving a Housing  Tax Credit Program proposal with Steele Georgetown LIHTC LLC, for the development  named Georgetown Square Apartments located at 206 Royal Drive, Georgetown, Texas  and declaring an effective date    Whereas, Steele Georgetown LIHTC LLC has proposed a development for affordable rental housing at 206  Royal Drive Georgetown TX 78626 named Georgetown Square Apartments in the City of Georgetown,  and    Whereas, Steele  Georgetown LIHTC LLC has communicated that it intends to submit an application to the  Texas Department of Housing and Community Affairs (TDHCA) for 2015 Housing Tax Credits or Private  Activity Bonds for Georgetown Square Apartments    It is hereby RESOLVED, that as provided for in 10 Texas Administrative Code §11.3(b), it is expressly  acknowledged and confirmed that the City of Georgetown has more than twice the state average of units  per capita supported by Housing Tax Credits or Private Activity Bonds and    FURTHER RESOLVED, that the City of Georgetown hereby supports Georgetown Square Apartments,  and confirms that its governing body has voted specifically to approve the construction of the Development  and to authorize an allocation of Housing Tax Credits for the Development pursuant to Texas Government  Code §2306.6703(A)(4), and    FURTHER RESOLVED that for and on behalf of the Governing Body, Dale Ross, Mayor of Georgetown is  hereby authorized, empowered, and directed to certify these resolutions to the Texas Department of  Housing and Community Affairs  ATTEST: THE CITY OF GEORGETOWN:       Jessica Brettle  Dale Ross  City Secretary  Mayor  APPROVED AS TO FORM:     Bridget Chapman  City Attorney  TDHCA Housing Tax Credit Program FAQs 1 of 6  TDHCA Question/Answer on Housing Tax Credits  Q. What are Housing Tax Credits?  A. The federal housing tax credit program is a means of directing private capital toward the  creation of affordable rental housing. Owners and investors in qualified affordable multifamily  residential developments can use the housing tax credits as a dollar‐for‐dollar reduction of  federal income tax liability. The value associated with the housing tax credits allows residences  to be leased to qualified families at below market rate rents. The Texas Department of Housing  and Community Affairs (TDHCA) is the only entity in the state of Texas with the authority to  allocate housing tax credits under this program. To qualify for housing tax credits, the proposed  development must involve new construction or undergo substantial rehabilitation of residential  units (at least $15,000/unit). The credit amount a development may receive depends on the total  amount of depreciable capital improvements and the funding sources available to finance the  total development cost.   Q. What must an applicant do to apply for housing tax credits?  A. Developers apply for housing tax credits through an application process administered by  TDHCA. This process is fully described in the Qualified Allocation Plan and Rules (QAP) which  governs the programʹs operation. The QAP is revised annually in a process that involves public  input, Board approval and ultimately approval by the Governor. Under the competitive HTC  program, to be considered for an award of housing tax credits, an application must be  submitted to TDHCA during the annual application acceptance period as published in the QAP.  All applications must provide the required fee, application and supporting documentation as  required by the QAP.  The competition for housing tax credits is very high. Therefore, in addition to submitting an  application that meets the minimum threshold, applicants must achieve a high enough score to  be competitive to receive an award.   Tax Exempt Bond applications applying for 4% housing tax credits are submitted to the  Department once the Reservation of Allocation is issued by the Texas Bond Review Board. It is  required under Section 1372 of the Texas Government Code, for Priority 1 and 2 applications to  apply for housing tax credits. Priority 3 applications are not required to have housing tax  credits; however, most developments are not financially feasible without them.  Q. Does TDHCA have geographical preferences or specific types of developments that it  prefers?  A. Under the competitive HTC program, housing tax credits are allocated in accordance with  Section 2306.111 of the Texas Government Code, which requires that the credits be allocated on  a regional basis. There are thirteen state service regions; each of the thirteen state service regions  is further divided into Rural and Urban/Exurban areas each of which is targeted to receive a  pre‐determined amount of the housing tax credits for each year. The amount per area is based  on a regional allocation formula which is generated, with public input, by the Housing  TDHCA Housing Tax Credit Program FAQs 2 of 6  Resource Center of TDHCA. Upon finalization of the formula, the targeted allocations will be  released. Additionally, the HTC Program has several allocations and/or set‐asides which it  strives to meet: at least 10% of all credits must be awarded to Qualified Nonprofits, at least 15%  of each regionʹs credit allocation is targeted to At‐Risk Developments and at least 5% of each  regionʹs credit allocation is targeted to developments funded by the U.S. Department of  Agriculture.  Q. What evaluation criteria is used to review submitted applications?  A. It is the goal of TDHCA to encourage diversity through broad geographic allocation of  housing tax credits within the state, and to promote maximum utilization of the available  housing tax credit amount. The criteria utilized to realize this goal includes a point based  scoring system (competitive HTC only) and an evaluation of the developmentʹs:    cost and financial feasibility;    geographic location within the state as compared to other developments applying for  housing tax credits;    impact on the concentration of existing housing tax credit developments and other  affordable housing developments within specific markets and sub‐markets;    site conditions;    development team experience; and    consistency with the goal of awarding credits to as many different applicants as possible.  Those applications which are deemed to have a high priority based on the review criteria  (competitive HTC only) are subject to an underwriting review which evaluates the  developmentʹs projected construction costs and financial feasibility. Applications which pass  the underwriting process and are determined to have the highest priority will be presented to  TDHCAʹs Board of Directors for consideration.   For Tax Exempt Bond developments, the applications are recommended for approval to the  Departmentʹs Governing Board of Directors based on the underwriting review which evaluates  the developmentʹs projected construction costs and financial feasibility and the ability of the  application to meet the threshold and compliance requirements of the Department.  Q. How is the scoring system used to prioritize the applications? (Competitive HTC only)  A. The QAP defines a series of point based ʺSelection Criteriaʺ items. To generate a ʺSelection  Criteriaʺ score, applicants request points for those criteria items for which their development is  qualified. These scoring criteria change annually and can be reviewed in the QAP.   While it is a significant factor, an applicationʹs score is not the sole determining factor as to  whether or not it will be recommended for an award of credits. However, the score serves as  one of the primary criteria (as described in the previous section) used to assess how well an  application fulfills the programʹs goals.   TDHCA Housing Tax Credit Program FAQs 3 of 6  Q. Can the public comment on a proposed tax credit development or on the development of  the QAP?  A. For the competitive HTC program, prior to the award of the credits, TDHCA will hold at  least three public hearings in metropolitan and rural areas across the state. The public is  encouraged to attend one of these scheduled hearings or to submit written comments to the  HTC Program. When submitting comments, the application under discussion should be clearly  identified by name, address, and city. Including the TDHCA application identification number  in the correspondence is also helpful. Based on the provided comment, an indication of the level  of support or opposition for an application will be included in the recommendation  documentation presented to TDHCAʹs Board of Directors.  For Tax Exempt Bond applications which utilize TDHCA as the issuer, the Department will  conduct development‐specific public hearings in the community in which the development is to  be located. The public is encouraged to attend these public hearings or submit written  comments to the Department. For tax exempt bond applications which utilize a local issuer,  interested individuals are encouraged to contact the Issuer for the public hearing information.  Public hearings are also held for the development of the QAP, which governs the  administration of the HTC Program. The public is encouraged to attend or provide written  comment. Written comment, on either a specific application or on the QAP, can be sent to:  Multifamily Finance Production, P.O. Box 13941, Austin, TX 78711‐3941 or transmitted via fax to  (512) 475‐0764 or (512) 475‐3340 or by email to Sharon.Gamble@tdhca.state.tx.us.  Q. How can local residents impact the development process?  A. Because of their significant long‐term financial investment in the development and  community, developers in most cases want to work with area citizens and be a good neighbor.  Therefore it is not uncommon for developers to make reasonable alterations to the planned  development in response to the concerns of area neighbors.   In addition to attending and commenting at public hearings on a particular development such  as this, individuals and neighborhood organizations are encouraged to work directly with the  developer to gain a better understanding of a particular development. Open community  meetings offer an opportunity to ask questions, express concerns, and have a productive  dialogue between the developer and community.  Q. What questions should residents ask of the property developer? A. Below are some  common questions that will help you gain a better understanding of the developer’s goals and  intentions regarding a proposed property:    What other developments has the developer built and where are they are located?    What are the developer’s long‐term goals for the property?    How will the development fit in with the existing neighbor‐hood?    Who is the management company and what is its track record?    What types of supportive services will be provided to residents?   TDHCA Housing Tax Credit Program FAQs 4 of 6   Who are the proposed tenants and how will they be screened?  Q. What is the minimum percentage of units that must be set aside for eligible low income  tenants?  A. Each development must include a minimum percentage of units to be set aside for eligible  low income tenants. The rent charged for these units is restricted according to federal guidelines  which correspond to the householdʹs income level. While rental rates are restricted, they are not  subsidized (i.e., Section 8 housing) by the HTC Program. A low income housing development  will be eligible to apply for housing tax credits if it meets either of the following criteria:  a) Twenty percent (20%) or more of the residential units in the project are both rent restricted  and occupied by individuals whose income is fifty percent (50%) or less of Area Median Family  Income (AMFI);   b) Forty percent (40%) or more of the residential units in the project are both rent restricted and  occupied by individuals whose income is sixty percent (60%) or less of AMFI.   Housing tax credits may only be claimed for the affordable units that have been set aside for  participation under the program. Although a developer only needs to set aside a minimum of  twenty percent (20%) of a projectʹs units for qualified tenants, applicants will typically set aside  between 60% and 100% of the units for scoring purposes and to claim a higher amount of  housing tax credits.   In addition to these set aside requirements, under the Bond program there are additional set‐ asides the development must meet based on the Priority that is assigned by the Texas Bond  Review Board.  Q. How are the rent limits calculated?  A. The rent limits for housing tax credit units are based on the household income level and the  number of bedrooms in the unit. These rent and income limits are generated by the U.S.  Department of Housing and Urban Development each year. HTC rent limits include an  allowance for the cost of utilities (heat, lights, air conditioning, water, sewer, oil or gas). In  projects where the owner pays all utilities, no adjustment in the HTC rent limits are needed to  determine the maximum rent that can be charged for a housing tax credit unit. In projects  where tenants pay all or a portion of their own utilities, the rent established for a housing tax  credit unit must not exceed the applicable HTC rent limit for that unit.   The Department can provide interested parties with specific rent limits for their area, or a  complete set of income and rent limits can be found on the Departmentʹs Web site. Households  will be required by the property owner to periodically document their income level so that the  owner may continue to claim the housing tax credits for their unit.   Q. How do tax credits benefit the development owner?  A. Under the federal income tax code, a credit is a dollar‐for‐dollar reduction in the income tax  TDHCA Housing Tax Credit Program FAQs 5 of 6  liability for the investor. It is important to note that only the owners of a housing tax credit  property may utilize the benefits of the housing tax credits over time. A credit is subtracted  after the amount of tax is calculated. In this form, a credit differs from a deduction or  adjustment to income, which is then subtracted from income before the tax rate is applied and  the amount of tax is calculated.  Q. Why are developers given an incentive to develop affordable rental housing?  A. Many private developers and builders concentrate their efforts in larger metropolitan areas  and target higher income individuals and families. However, demographic studies show that  lower and moderate income individuals and families are the fastest growing segment of our  population. As the population grows, so will the need for affordable housing.  Q. How do tax credit developments compare with non‐tax credit developments?  A. Properties that receive housing tax credits must compete with nearby market developments  for tenants. The properties are safe, secure, and well maintained. They have amenities similar to  other apartment complexes, and may offer swimming pools, community centers and reception  areas. Newer developments may include daytime childcare, evening GED classes, on‐site  medical care and credit counseling. These supportive services are provided without charge to  the tenants.   Q. How do ʺlow income/affordable housingʺ units differ from ʺhousing projects?ʺ  A. Unlike most publicly‐subsidized housing which is designed to assist the elderly, disabled,  minimum wage workers or the unemployed, the housing tax credit program does not provide  tenants with governmental rent subsidies. It provides equity to build the development which  allows the developer to charge lower rents to the tenants. The programʹs rent and income levels  vary from county to county. In Houston, for example, the maximum allowable rent (which  includes a utility allowance) for a three bedroom housing tax credit apartment would be $953.  To be eligible to reside in the housing tax credit unit, a family of fourʹs annual income could not  exceed $36,660 at the time they signed the lease. In Lubbock, the maximum allowable rent for a  three‐bedroom apartment would be $783 a month. A family of fourʹs annual income could not  exceed $30,120. Tenants must pay their rents in full. Thus, the tenants are most likely working  Texans or retirees seeking an affordable place to live.  Q. Who lives in a tax credit development?  A. Typically, tenants may include: school teachers; police officers; firefighters; mechanics; single  parents who are balancing career and family while attending night school; city employees; sales  clerks; and retirees. Affordable housing and low income units are quite different from public  housing projects.  Q. Are existing developments renovated under the Housing Tax Credit Program?  A. Many of the apartments built during the boom years of the 1980ʹs which were abandoned  and boarded‐up during the stateʹs real estate bust, are today fully renovated and leased.  Hundreds of sprawling apartment complexes that had for years been both eyesores and  TDHCA Housing Tax Credit Program FAQs 6 of 6  occasional drug refuges, now provide thousands of working Texans with quality, affordable  housing, including the elderly and persons with disabilities.  Q. Are tax credit properties monitored?  A. Housing tax credit benefits are lost if a development fails to meet state and federal standards  every year for each of the 15 years of the compliance period. Properties are then monitored for  an additional 15 years to maintain affordability.       City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Consideration and possible action to approve a resolution of support for HVM 2015 Georgetown, Ltd. to apply for the Housing Tax Credit for the rehabilitation of the Northwest Apartments, located at 1623 Northwest Boulevard. ITEM SUMMARY: Applicant's Request Highland is requesting a resolution of support from the Georgetown City Council to apply for the Housing Tax Credit (HTC) program through the Texas Department of Housing and Community Affairs (TDHCA). Staff Recommended Motion Forward the resolution of support request to City Council for approval. Please see the attached report for more information. FINANCIAL IMPACT: None for this resolution request. SUBMITTED BY: Jennifer Bills, Housing Coordinator ATTACHMENTS: Description Type Staff Report Cover Memo Exhibit A--Location Map Backup Material Exhibit B--Locaiton of Multifamily Backup Material Exhibit C--Resolution Resolution Letter Exhibit D--HVM Application Packet Backup Material Exhibit E--TDHCA Tax Credit FAQs Backup Material Housing Advisory Board Staff Report Northwest Apartments Resolution of Support  Page 1 of 3  Meeting Date: January 14, 2015 Item Description Consideration and possible action to approve a resolution of support for HVM 2015  Georgetown, Ltd. to apply for the Housing Tax Credit for the rehabilitation of the Northwest  Apartments, located at 1623 Northwest Boulevard.  Staff Recommended Motion Forward the resolution of support request to City Council for approval.  Item Details Project Name: Northwest Apartments  Project Address: 1623 Northwest Boulevard (Exhibit A)  Total Acreage: 1.8 acres  Legal Description: 1.8 acres in the Porter Survey  Applicant: Dennis Hoover, Hamilton Valley Management, Inc.  Property Owner: HVM 2015 Georgetown, Ltd.  Tax Exempt:  No Applicant’s Request Highland Property Group is requesting a resolution of support from the Georgetown City  Council to apply for the Housing Tax Credit (HTC) program through the Texas Department of  Housing and Community Affairs (TDHCA).  Financing The applicant is seeking to secure financing through the Low Income Housing Tax Credit  Program to receive 9 % housing tax credits.  Projects seeking credits are scored using the criteria  set by TDHCA in this competitive process.  This project is a rehabilitation project that is  ensuring the continuation of existing affordable units.  Because of this, they are applying within  a special category of Rural Set‐aside, so it would not compete against other new construction  projects.  The City of Georgetown, when compared to other cities of similar size throughout  Texas, has two times the average number of tax credit units.  This is not a market measure, but  simply a statistical comparison.  Due to the two times rule, any new application within  Georgetown is required to secure a Resolution of Support in order to apply (see Exhibit E for  program information).   Site Information The existing 24‐unit complex was constructed in 1976 through a United States Department of  Agriculture (USDA) program for rural affordable housing.  Since that date, the site has had one    Housing Advisory Board Staff Report  Northwest Apartments   Resolution of Support 2015 Page 2 of 3  major renovation in 1995.      This renovation will bring the accessible units up to current Americans with Disability Act  standards as well as improve the energy efficiency of the units.  Units will be upgraded with  low flow faucets and toilets, additional insulation, new HVAC systems, ceiling fans and energy  efficient light fixtures.  Proximity to other Multifamily and Affordable Developments Within a one‐mile radius, there are eight existing apartment developments and one under  construction (Gateway Northwest) (Exhibit B).    Development Address Units  Income  Restricted Program Mariposa at River Bend 121 River Bend Drive 180 Yes  Senior  HTC  Cypress Creek at River Bend 120 River Bend Drive 200 Yes HTC  Westwood Townhomes 200 River Bend Drive 110 No   Shady Oaks 501 Janis Drive 60 Yes  Section  8  Gateway Northwest  1617 Northwest  Boulevard 180 Yes HTC  Cedar Ridge Apartments  1500 Northwest  Boulevard 60 Yes USDA  Georgetown Square 206 Royal Drive 55 Yes  Section  8  Apple Creek 302 Apple Creek Drive 176 No   Parkview Place 2111 N. Austin Avenue 176 No   Affordability Currently, all of the units are rented to tenants that make less than 50% of Area Median Income.    The expected average rental rates are:  1 – 1 bedroom Unit (650 sq. ft.) ‐ $435  23 – 2 Bedroom Units (750 sq. ft.) ‐ $589    Financial Impact to the City The applicant has requested up to $197,633 in financial contribution from the city in the form of  a fully collateralized loan.  The General Government and Finance Advisory Committee has  recommended approval of the full amount to City Council.    Housing Advisory Board Staff Report  Northwest Apartments   Resolution of Support 2015 Page 3 of 3  Future Application(s) The following applications will be required to be submitted:   Building permits for construction or renovations;   Certificates of Occupancy for changes in ownership.    Attachments Exhibit A – Location Map  Exhibit B – Location of Multifamily Developments  Exhibit C – Resolution  Exhibit D – Application Packet  Exhibit E – TDHCA Housing Tax Credit FAQ  Submitted By Jennifer C. Bills, AICP, LEED AP, Housing Coordinator   P A R K L N N IH 35 SB E CENTRAL DR N O R T H W E ST B L V D E JANIS DR N IH 35 FWY SB N IH 35 FWY NB WESTWOOD LN DAWN DR ENTR 263 SB SHANNON LN THORNTON LN TERRY LN W ILLIA M S D R G O L D E N O A K S D 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DA W N DR N COLLEGE ST P O W E R R D S IH 35 FWY SB E CENTRAL DR W O L F R A N C H P K W Y N IH 35 FWY SB N IH 35 FWY NB F M 9 7 1 S IH 35 FW Y SB S IH 35 FW Y NB S IH 35 FWY NB N IH 35 FWY SB N IH 35 FWY NB N O R T H W E S T B L V D S IH 35 NB RIVER BEND DR S IH 35 FW Y NB S IH 35 FWY NB COUNTRY CLUB RD OLD AIRPORT RD H O L L Y S T G O L D E N O A K S D R WAGON WHEEL TRL W E S T E R N T R L GA NN ST C R 1 5 1 PARKVIEW DR HED G E W O O D DR W C E NTR AL D R P A R Q U E V I S T A D R BOO T Y S C R O S S I N G R D SAN GABRIEL VILLAGE BLVD GABRIEL VIEW DR SAN GABRIEL PARK CIR N C O L L E G E S T ± Leg end Nor thw est Apa rtm ent s 1 m ile r adi us f rom No rthw es t Ap art men ts Exh ibi t BNorthwest A part mentsProximity to other Multf amily Nor thwest Apartments Mar iposa Westwood Townhomes Cypress Creek Shady Oaks Gateway Nor thwest AppleCreek Georgetown Square AppleCreek ParkviewPlace     Resolution Number: ____________ Page 1 of 1  Description: ______________  Date Approved:  __________      RESOLUTION NO. __________    A Resolution of the City Council of the City of Georgetown, Texas approving a Housing  Tax Credit Program proposal with HVM 2015 Georgetown, Ltd., for the development  named Northwest Apartments located at 1623 Northwest Boulevard, Georgetown, Texas  and declaring an effective date    Whereas, HVM 2015 Georgetown, Ltd. has proposed a development for affordable rental housing at 1623  Northwest Boulevard Georgetown TX 78628 named Northwest Apartments in the City of Georgetown,  and    Whereas, HVM 2015 Georgetown, Ltd. has communicated that it intends to submit an application to the  Texas Department of Housing and Community Affairs (TDHCA) for 2015 Housing Tax Credits or Private  Activity Bonds for Northwest Apartments    It is hereby RESOLVED, that as provided for in 10 Texas Administrative Code §11.3(b), it is expressly  acknowledged and confirmed that the City of Georgetown has more than twice the state average of units  per capita supported by Housing Tax Credits or Private Activity Bonds and    FURTHER RESOLVED, that the City of Georgetown hereby supports Northwest Apartments, and confirms  that its governing body has voted specifically to approve the construction of the Development and to  authorize an allocation of Housing Tax Credits for the Development pursuant to Texas Government Code  §2306.6703(A)(4), and    FURTHER RESOLVED that for and on behalf of the Governing Body, Dale Ross, Mayor of Georgetown is  hereby authorized, empowered, and directed to certify these resolutions to the Texas Department of  Housing and Community Affairs  ATTEST: THE CITY OF GEORGETOWN:       Jessica Brettle  Dale Ross  City Secretary  Mayor  APPROVED AS TO FORM:     Bridget Chapman  City Attorney  TDHCA Housing Tax Credit Program FAQs 1 of 6  TDHCA Question/Answer on Housing Tax Credits  Q. What are Housing Tax Credits?  A. The federal housing tax credit program is a means of directing private capital toward the  creation of affordable rental housing. Owners and investors in qualified affordable multifamily  residential developments can use the housing tax credits as a dollar‐for‐dollar reduction of  federal income tax liability. The value associated with the housing tax credits allows residences  to be leased to qualified families at below market rate rents. The Texas Department of Housing  and Community Affairs (TDHCA) is the only entity in the state of Texas with the authority to  allocate housing tax credits under this program. To qualify for housing tax credits, the proposed  development must involve new construction or undergo substantial rehabilitation of residential  units (at least $15,000/unit). The credit amount a development may receive depends on the total  amount of depreciable capital improvements and the funding sources available to finance the  total development cost.   Q. What must an applicant do to apply for housing tax credits?  A. Developers apply for housing tax credits through an application process administered by  TDHCA. This process is fully described in the Qualified Allocation Plan and Rules (QAP) which  governs the programʹs operation. The QAP is revised annually in a process that involves public  input, Board approval and ultimately approval by the Governor. Under the competitive HTC  program, to be considered for an award of housing tax credits, an application must be  submitted to TDHCA during the annual application acceptance period as published in the QAP.  All applications must provide the required fee, application and supporting documentation as  required by the QAP.  The competition for housing tax credits is very high. Therefore, in addition to submitting an  application that meets the minimum threshold, applicants must achieve a high enough score to  be competitive to receive an award.   Tax Exempt Bond applications applying for 4% housing tax credits are submitted to the  Department once the Reservation of Allocation is issued by the Texas Bond Review Board. It is  required under Section 1372 of the Texas Government Code, for Priority 1 and 2 applications to  apply for housing tax credits. Priority 3 applications are not required to have housing tax  credits; however, most developments are not financially feasible without them.  Q. Does TDHCA have geographical preferences or specific types of developments that it  prefers?  A. Under the competitive HTC program, housing tax credits are allocated in accordance with  Section 2306.111 of the Texas Government Code, which requires that the credits be allocated on  a regional basis. There are thirteen state service regions; each of the thirteen state service regions  is further divided into Rural and Urban/Exurban areas each of which is targeted to receive a  pre‐determined amount of the housing tax credits for each year. The amount per area is based  on a regional allocation formula which is generated, with public input, by the Housing  TDHCA Housing Tax Credit Program FAQs 2 of 6  Resource Center of TDHCA. Upon finalization of the formula, the targeted allocations will be  released. Additionally, the HTC Program has several allocations and/or set‐asides which it  strives to meet: at least 10% of all credits must be awarded to Qualified Nonprofits, at least 15%  of each regionʹs credit allocation is targeted to At‐Risk Developments and at least 5% of each  regionʹs credit allocation is targeted to developments funded by the U.S. Department of  Agriculture.  Q. What evaluation criteria is used to review submitted applications?  A. It is the goal of TDHCA to encourage diversity through broad geographic allocation of  housing tax credits within the state, and to promote maximum utilization of the available  housing tax credit amount. The criteria utilized to realize this goal includes a point based  scoring system (competitive HTC only) and an evaluation of the developmentʹs:    cost and financial feasibility;    geographic location within the state as compared to other developments applying for  housing tax credits;    impact on the concentration of existing housing tax credit developments and other  affordable housing developments within specific markets and sub‐markets;    site conditions;    development team experience; and    consistency with the goal of awarding credits to as many different applicants as possible.  Those applications which are deemed to have a high priority based on the review criteria  (competitive HTC only) are subject to an underwriting review which evaluates the  developmentʹs projected construction costs and financial feasibility. Applications which pass  the underwriting process and are determined to have the highest priority will be presented to  TDHCAʹs Board of Directors for consideration.   For Tax Exempt Bond developments, the applications are recommended for approval to the  Departmentʹs Governing Board of Directors based on the underwriting review which evaluates  the developmentʹs projected construction costs and financial feasibility and the ability of the  application to meet the threshold and compliance requirements of the Department.  Q. How is the scoring system used to prioritize the applications? (Competitive HTC only)  A. The QAP defines a series of point based ʺSelection Criteriaʺ items. To generate a ʺSelection  Criteriaʺ score, applicants request points for those criteria items for which their development is  qualified. These scoring criteria change annually and can be reviewed in the QAP.   While it is a significant factor, an applicationʹs score is not the sole determining factor as to  whether or not it will be recommended for an award of credits. However, the score serves as  one of the primary criteria (as described in the previous section) used to assess how well an  application fulfills the programʹs goals.   TDHCA Housing Tax Credit Program FAQs 3 of 6  Q. Can the public comment on a proposed tax credit development or on the development of  the QAP?  A. For the competitive HTC program, prior to the award of the credits, TDHCA will hold at  least three public hearings in metropolitan and rural areas across the state. The public is  encouraged to attend one of these scheduled hearings or to submit written comments to the  HTC Program. When submitting comments, the application under discussion should be clearly  identified by name, address, and city. Including the TDHCA application identification number  in the correspondence is also helpful. Based on the provided comment, an indication of the level  of support or opposition for an application will be included in the recommendation  documentation presented to TDHCAʹs Board of Directors.  For Tax Exempt Bond applications which utilize TDHCA as the issuer, the Department will  conduct development‐specific public hearings in the community in which the development is to  be located. The public is encouraged to attend these public hearings or submit written  comments to the Department. For tax exempt bond applications which utilize a local issuer,  interested individuals are encouraged to contact the Issuer for the public hearing information.  Public hearings are also held for the development of the QAP, which governs the  administration of the HTC Program. The public is encouraged to attend or provide written  comment. Written comment, on either a specific application or on the QAP, can be sent to:  Multifamily Finance Production, P.O. Box 13941, Austin, TX 78711‐3941 or transmitted via fax to  (512) 475‐0764 or (512) 475‐3340 or by email to Sharon.Gamble@tdhca.state.tx.us.  Q. How can local residents impact the development process?  A. Because of their significant long‐term financial investment in the development and  community, developers in most cases want to work with area citizens and be a good neighbor.  Therefore it is not uncommon for developers to make reasonable alterations to the planned  development in response to the concerns of area neighbors.   In addition to attending and commenting at public hearings on a particular development such  as this, individuals and neighborhood organizations are encouraged to work directly with the  developer to gain a better understanding of a particular development. Open community  meetings offer an opportunity to ask questions, express concerns, and have a productive  dialogue between the developer and community.  Q. What questions should residents ask of the property developer? A. Below are some  common questions that will help you gain a better understanding of the developer’s goals and  intentions regarding a proposed property:    What other developments has the developer built and where are they are located?    What are the developer’s long‐term goals for the property?    How will the development fit in with the existing neighbor‐hood?    Who is the management company and what is its track record?    What types of supportive services will be provided to residents?   TDHCA Housing Tax Credit Program FAQs 4 of 6   Who are the proposed tenants and how will they be screened?  Q. What is the minimum percentage of units that must be set aside for eligible low income  tenants?  A. Each development must include a minimum percentage of units to be set aside for eligible  low income tenants. The rent charged for these units is restricted according to federal guidelines  which correspond to the householdʹs income level. While rental rates are restricted, they are not  subsidized (i.e., Section 8 housing) by the HTC Program. A low income housing development  will be eligible to apply for housing tax credits if it meets either of the following criteria:  a) Twenty percent (20%) or more of the residential units in the project are both rent restricted  and occupied by individuals whose income is fifty percent (50%) or less of Area Median Family  Income (AMFI);   b) Forty percent (40%) or more of the residential units in the project are both rent restricted and  occupied by individuals whose income is sixty percent (60%) or less of AMFI.   Housing tax credits may only be claimed for the affordable units that have been set aside for  participation under the program. Although a developer only needs to set aside a minimum of  twenty percent (20%) of a projectʹs units for qualified tenants, applicants will typically set aside  between 60% and 100% of the units for scoring purposes and to claim a higher amount of  housing tax credits.   In addition to these set aside requirements, under the Bond program there are additional set‐ asides the development must meet based on the Priority that is assigned by the Texas Bond  Review Board.  Q. How are the rent limits calculated?  A. The rent limits for housing tax credit units are based on the household income level and the  number of bedrooms in the unit. These rent and income limits are generated by the U.S.  Department of Housing and Urban Development each year. HTC rent limits include an  allowance for the cost of utilities (heat, lights, air conditioning, water, sewer, oil or gas). In  projects where the owner pays all utilities, no adjustment in the HTC rent limits are needed to  determine the maximum rent that can be charged for a housing tax credit unit. In projects  where tenants pay all or a portion of their own utilities, the rent established for a housing tax  credit unit must not exceed the applicable HTC rent limit for that unit.   The Department can provide interested parties with specific rent limits for their area, or a  complete set of income and rent limits can be found on the Departmentʹs Web site. Households  will be required by the property owner to periodically document their income level so that the  owner may continue to claim the housing tax credits for their unit.   Q. How do tax credits benefit the development owner?  A. Under the federal income tax code, a credit is a dollar‐for‐dollar reduction in the income tax  TDHCA Housing Tax Credit Program FAQs 5 of 6  liability for the investor. It is important to note that only the owners of a housing tax credit  property may utilize the benefits of the housing tax credits over time. A credit is subtracted  after the amount of tax is calculated. In this form, a credit differs from a deduction or  adjustment to income, which is then subtracted from income before the tax rate is applied and  the amount of tax is calculated.  Q. Why are developers given an incentive to develop affordable rental housing?  A. Many private developers and builders concentrate their efforts in larger metropolitan areas  and target higher income individuals and families. However, demographic studies show that  lower and moderate income individuals and families are the fastest growing segment of our  population. As the population grows, so will the need for affordable housing.  Q. How do tax credit developments compare with non‐tax credit developments?  A. Properties that receive housing tax credits must compete with nearby market developments  for tenants. The properties are safe, secure, and well maintained. They have amenities similar to  other apartment complexes, and may offer swimming pools, community centers and reception  areas. Newer developments may include daytime childcare, evening GED classes, on‐site  medical care and credit counseling. These supportive services are provided without charge to  the tenants.   Q. How do ʺlow income/affordable housingʺ units differ from ʺhousing projects?ʺ  A. Unlike most publicly‐subsidized housing which is designed to assist the elderly, disabled,  minimum wage workers or the unemployed, the housing tax credit program does not provide  tenants with governmental rent subsidies. It provides equity to build the development which  allows the developer to charge lower rents to the tenants. The programʹs rent and income levels  vary from county to county. In Houston, for example, the maximum allowable rent (which  includes a utility allowance) for a three bedroom housing tax credit apartment would be $953.  To be eligible to reside in the housing tax credit unit, a family of fourʹs annual income could not  exceed $36,660 at the time they signed the lease. In Lubbock, the maximum allowable rent for a  three‐bedroom apartment would be $783 a month. A family of fourʹs annual income could not  exceed $30,120. Tenants must pay their rents in full. Thus, the tenants are most likely working  Texans or retirees seeking an affordable place to live.  Q. Who lives in a tax credit development?  A. Typically, tenants may include: school teachers; police officers; firefighters; mechanics; single  parents who are balancing career and family while attending night school; city employees; sales  clerks; and retirees. Affordable housing and low income units are quite different from public  housing projects.  Q. Are existing developments renovated under the Housing Tax Credit Program?  A. Many of the apartments built during the boom years of the 1980ʹs which were abandoned  and boarded‐up during the stateʹs real estate bust, are today fully renovated and leased.  Hundreds of sprawling apartment complexes that had for years been both eyesores and  TDHCA Housing Tax Credit Program FAQs 6 of 6  occasional drug refuges, now provide thousands of working Texans with quality, affordable  housing, including the elderly and persons with disabilities.  Q. Are tax credit properties monitored?  A. Housing tax credit benefits are lost if a development fails to meet state and federal standards  every year for each of the 15 years of the compliance period. Properties are then monitored for  an additional 15 years to maintain affordability.       City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Consideration and possible action on creating a presentation to City Council on February 24, 2015.--Jennifer C. Bills, Housing Coordinator ITEM SUMMARY: Please see the attached draft presentation. FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer Bills, Housing Coordinator ATTACHMENTS: Description Type Presentation to City Council February 24, 2015 Presentation Housing Advisory Board Update Update and Feedback February 24, 2015 Presentation Overview • Previous information and feedback • Additional Information • Next Steps 2 Purpose of the Board “The Board is established for the purpose of advising the City Council on ensuring the City has housing affordable for residents at all income levels.” -Housing Advisory Board Bylaws 3 Workforce Housing • Affordable Housing is defined as spending no more than 30% of gross household income on housing. • The Department of housing and Urban Development defines Affordable Housing as paying more than 30% gross household income on gross housing cost plus utilities. • For owner-occupied housing, gross housing cost include mortgage loan principal, interest, taxes and insurance (PITI). 4 Workforce Housing Range • The housing research indicated that there is a deficiency of housing for households that make less than 80% of Area Median Income. • The primary focus for Workforce Housing is households that make between $30,000 and $50,000 a year. City of Georgetown 5 Source: Texas Workforce Commission, Austin MSA HUD Fair Market Rent 2013 6 • Approximately 40% of Georgetown households make less than $50,000 annually, which is greater all city comparables other than Taylor. Regional Affordability 7 All Households per Income bracket Less than $50k $50,000 and  above % below $50K Cedar Park 4,854 12,720 28% Georgetown 7,796 11,508 40% Hutto 1,643 3,573 31% Leander 2,702 5,877 31% Pflugerville 4,377 11,636 27% Round Rock 12,466 22,381 36% Taylor 3,076 2,562 55% Travis  County 187,120 222,231 46% Williamson  County 51,461 102,913 33% Rental Housing Affordability 8 Rental Affordability by City/County Affordable Unaffordable Severely  Unaffordable Hutto 61% 26% 13% Williamson  County 58% 24% 18% Round Rock 58% 25% 17% Cedar Park 53% 28% 19% Georgetown 50% 30% 20% Travis County 47% 25% 28% Taylor 44% 26% 30% Leander 43% 34% 23% Pflugerville 41% 33% 26% Affordable 50% Unaffordable 30% Severely  Unaffordable 20% Georgetown Source: American Community Survey, 2012 Owner-Occupied Housing Affordability 9 Affordable 76% Unaffordable 12% Severely  Unaffordable 12% Georgetown Owner‐Occupied Affordability by City/County Affordable Unaffordable Severely  Unaffordable Pflugerville 78% 15% 7% Round Rock 76% 17% 7% Georgetown 76% 12% 12% Williamson County 74% 18% 8% Cedar Park 72% 21% 7% Travis County 71% 17% 12% Taylor 71% 20% 9% Leander 69% 22% 9% Hutto 63% 22% 15% Source: American Community Survey, 2012 Breakdown of Property Types Source: American Community Survey, 2012 10 Adopted Zoning Districts & 2030 Plan Land Uses City of Georgetown 11 Agricultural 41% Single Family 43% Duplex, Townhouse <1% Multifamily 2%Commercial,  Mixed 9% Industrial, BP 4% Public Facilities 1% Adopted Zoning Rural & Low Residential 47% Moderate Density Res. 15%High Density Res. 1% Commercial/Mixed 11% Employment Center 4% Institutional 2% Parks, Rec, Open Sp 15% Mining 5% 2030 Comprehensive Plan Impact of Workforce locations-- GISD • Board representatives met with the new GISD Superintendent Fred Brent regarding proposed location and reviewed the selection criteria. • He expressed a need for more workforce housing and stated unequivocal support for the locations. 12 Effect of Current Special Development Standards • UDC Chapter 6.07.020—Housing Diversity Development – This section was adopted into the UDC in 2009. To date no developers have taken advantage of the additional standards due to the requirement of 3 or more housing types (single-family, townhome, apartment per project. 13 Effect of Past Special Development Standards • Zoning Ordinance Section 2.14 Residential High Density (R-HD) – The Zoning Ordinance was replace by the UDC in 2003. – This section allowed standards that provided for affordable and diversified housing opportunities at a higher density per acre. – Windridge Village (Gavurnik Builders) was built under these regulations. 14 Windridge Village • 54 unit single family subdivision at 3rd and Holly Street. • Approximately $1,400 in construction savings using reduced setbacks and allowing one required parking place to be in the driveway. City of Georgetown 15 Maintaining Long-term Affordability • In order to participate in the Workforce Housing Incentive program, the developer will sign a Performance Agreement with the City, detailing the term and affordability requirements. • The agreement will outline a yearly reporting structure that the City will use to ensure compliance. 16 Next Steps • Workforce Housing Location Map – Will be included as an amendment to the Future Land Use Map. Planning will present the 2030 Comprehensive Plan Annual Update at a later Workshop meeting. • Incentives for Workforce Housing – Already included on the amendment list and edits will be forwarded to the UDC Advisory Committee for implementation in the UDC. 17 Benefits to Georgetown • Contribute to recruitment of 21st century businesses. • Retain sales and property tax base, plus school district dollars, for Georgetown. • Increase volunteer workers and services for churches, schools, hospital, and activities to support our children and youth. • Enrich Georgetown’s culture of diversity. 18 Benefits to Georgetown • Recycle monies, from paid workers, back to Georgetown’s businesses both small and Big Box stores. •Housing and utilities. •Food – home and restaurants. •Transportation – gas and oil, parts and service. •Health care, health insurance, pharmacies, and dental service. •Clothing, shoes, work-related tools, hair care and personal products. •Entertainment -TV and phone. •Education. •Banks and credit unions. •Real estate and insurance agencies. •Construction industry including architecture, engineering and related services. 19 Benefits to the Workforce • Provide our workers option to live in quality affordable housing. • Give workers choice to enjoy our “quality of life.” • Reduce transportation costs: gasoline, oil, repairs and less frequent purchase of vehicles. • Make more time available to be with families. • Enable workers to serve as volunteers in community, especially to children and youth. 20 Benefits to the Workforce • Allow easier access to quality medical/dental services. • Provide more time for parents to attend children’s school functions. • Make it more convenient to shop in Georgetown than buy elsewhere. 21 Feedback from Council 22 City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Past Incentive for Housing Builders. ITEM SUMMARY: Information for review. FINANCIAL IMPACT: None. SUBMITTED BY: ATTACHMENTS: Description Type Workforce Incentives--Savings and Support Cover Memo Tax Credit Funding Breakdown--Gateway Northwest Cover Memo Year Partner Project Incentive Units Savings Support Actual City  funds  2005 Gavurnik Builders  (now KIBO  Contractors) Windridge Village Setback reductions 54  $      75,600  $                  ‐    2005 Denison  Development San Gabriel Senior Village Short term loan for on‐site  construction costs.  Loan repaid  after 9‐months 100  $      360,000  $                  ‐    2006 Habitat for  Humanity Old Mill Village Impact fees 6.5 (20 in   total project)  $        35,000  $         35,000  2006‐ 2009 Street and drainage  improvements for  Leander/Railroad Streets using  CDBG funds  $      591,529  $         20,000  Totals 160.5  $      75,600  $      986,529  $         55,000  Average per year 20  $        9,450  $      123,316  $           6,875  Year Partner Project Incentive Units Savings Support Actual City  funds  2012 Texas Housing  Foundation Gateway Northwest  Apartments Review Fee Waivers 180  $      100,000  $       100,000  2015 Steele Properties Georgetown Square  Apartments                             GGAF recommended,  pending Council approval 15 year loan 55  $      450,000 ‐$                 2015 HVM 2015  Georgetown LLC Northwest Apartments  GGAF recommended,  pending Council approval 5 year loan 24  $      197,633 ‐$                 Totals 259  $               ‐     $      747,633  $       100,000  Average per year 86  $               ‐     $      249,211  $         33,333  Montary incentives and site development incentives granted or recommended housing builders 2005‐2012 2012‐2015 1 of 2 Year Partner Project Incentive Units Savings Support Actual City  funds  expended 2016 Review and inspection fee  waivers:  $2,500 per unit 40 100,000$       100,000$        Density/Development  incentives:  $1,000 per unit 100 100,000$     2017 Review and inspection fee  waivers:  $2,500 per unit 40 100,000$       100,000$        Density/Development  incentives:  $1,000 per unit 100 100,000$     2018 Review and inspection fee  waivers:  $2,500 per unit 40 100,000$       100,000$        Density/Development  incentives:  $1,000 per unit 100 100,000$     2019 Review and inspection fee  waivers:  $2,500 per unit 40 100,000$       100,000$        Density/Development  incentives:  $1,000 per unit 100 100,000$     2020 Review and inspection fee  waivers:  $2,500 per unit 40 100,000$       100,000$        Density/Development  incentives:  $1,000 per unit 100 100,000$     Totals 500,000$   500,000$      500,000$       2016‐2020 Goals 2 of 2 Funding Source Amount HUD insured Loan/Tax Exempt Bond 13,952,400$           Tax Credits 5,996,961$             HOME funds 2,000,000$             Devloper's Note 1,192,874$             City Fee waivers 100,000$                Total Development Costs 23,242,235$           Tax Credits‐‐New Construction Gateway Northwest cost of development City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Consideration and possible action to approve the amended board bylaws in accordance with the revised Code of Ordinances. --Jennifer C. Bills, Housing Coordinator ITEM SUMMARY: The City Council revised the Code of Ordinances Chapter 2.116 regarding the Housing Advisory Board on October 28, 2014. The Board Bylaws are being amended to conform with the revisions made to Chapter 2.116 and are submitted to the Board for review at this time. The Bylaws will be submitted to the City Council for review and approval in February 2015. FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer Bills, Housing Coordinator ATTACHMENTS: Description Type Amended Housing Advisory Bylaws 2015 Exhibit Ordinance for bylaw revision Exhibit Housing Advisory Board Bylaws Revised May 2011February 2015 Page 1 of 7 CITY OF GEORGETOWN HOUSING ADVISORY BOARD BYLAWS ARTICLE I. NAME AND PURPOSE Section 1.1. Name. Housing Advisory Board (“Board”). Section 1.2. Purpose. The Board is established for the purpose of advising City Council on ensuring that the City has housing affordable for residents at all income levels. The Board is responsible for providing long-range housing research and policy recommendations with the housing element of the City’s comprehensive plan. The Board is also responsible for reviewing and making recommendations regarding housing developments that request City support for state and federal funding. See Ordinance Chapter 2.116. ARTICLE II. MEMBERSHIP Section 2.1. Number of Members. The Board will be comprised of nine seven (97) Members. Section 2.2. Eligibility. Whenever possible, Tthe Members shall include the following categories: a representative from Habitat for Humanity, a representative from the Georgetown Housing Authority, a person with knowledge of the home building and/or development industry, and a person with knowledge of mortgage business. It is recommended that the other five three members have knowledge of senior housing, real estate and/or social services. Section 2.3. Appointment of Board Members. Members of the Board shall be appointed pursuant to and in accordance with the City Charter. Section 2.4. Terms of Office. Generally, terms of office for each Member shall be two (2) years. Generally, a Member may serve two (2) consecutive terms. Refer to Ordinance Section 2.36.030A for additional provisions regarding terms of office. Section 2.5. Vacancies. Vacancies that occur during a term shall be filled as soon as reasonably possible and in the same manner as an appointment in accordance with the City Charter. If possible, the Member shall continue to serve until the vacancy is filled. Housing Advisory Board Bylaws Revised May 2011February 2015 Page 2 of 7 An appointment to fill a vacated term is not included as a term for purposes of counting consecutive terms. Section 2.6. Compensation and Expenditure of Funds. Members serve without compensation. The Board and its Members have no authority to expend funds or to incur or make an obligation on behalf of the City unless authorized and approved by the City Council. Members may be reimbursed for expenses authorized and approved by the City Council and the Board. Section 2.7. Compliance with City Policy. Members will comply with City Ordinances, Rules and Policies applicable to the Board and the Members, including but not limited to Ethics Ordinance Chapter 2.20 and City Commissions, Committees and Boards Ordinance Chapter 2.36. Section 2.8. Removal. Any Member may be removed from their position on the Board for any reason, or for no reason, by a majority vote of the City Council. ARTICLE III. BOARD OFFICERS Section 3.1. Officers. The Board Officers are Chairman, Vice-Chairman and Secretary. The Chairman is appointed by the City Council during the annual appointment process. The other Board Officers are elected by a majority vote of the Members at the first meeting after the annual appointment process. Section 3.2. Terms of Office for Board Officers. Board Officers serve for a term of one year. In the event of vacancy in the office of Chairman, the Vice-Chairman shall serve as Chairman until the City Council appoints a replacement Chairman. A vacancy in the other offices shall be elected by majority vote of the Members at the next regularly scheduled meeting, or as soon as reasonably practical for the unexpired term. If possible, a Board Officer shall continue to serve until the vacancy is filled. Section 3.3. Duties. a. The Chairman presides at Board meetings. The Chairman shall generally manage the business of the Board. The Chairman shall perform the duties delegated to the Chairman by the Board. b. The Vice-Chairman shall perform the duties delegated to the Vice-Chairman by the Board. The Vice-Chairman presides at Board meetings in the Chairman’s absence. Housing Advisory Board Bylaws Revised May 2011February 2015 Page 3 of 7 The Vice-Chairman shall perform the duties of the Chairman in the Chairman’s absence or disability. c. The Secretary shall perform the duties delegated to the Secretary by the Board. ARTICLE IV. MEETINGS Section 4.1. Time and Date of Regular Meeting. The Board shall meet once a month on the same week of the month, the same day of the week, at the same time, and at the same place. The regular date, time and place of the Board meeting will be decided by the Members at the first meeting of the Board after the annual appointment process. Section 4.2. Agenda. Items may be placed on the agenda by the Chairman, the City Manager or designee, or at the request of a Member. The party (or individual) requesting the agenda item will be responsible for preparing an agenda item cover sheet and for the initial presentation at the meeting. Items included on the agenda must be submitted to the Staff Liaison no later than one week before the Board meeting at which the agenda item will be considered. Agenda packets for regular meetings will be provided to the Members in advance of the scheduled Board meeting. Agenda packets will contain the posted agenda, agenda item cover sheets, and written minutes of the last meeting. Section 4.3. Special Meetings. Special meetings may be called by the Chairman or by three (3) Members. Section 4.4. Quorum. A quorum shall consist of a majority of the Members. A quorum is required for the Board to convene a meeting and to conduct business at a meeting. Section 4.5. Call to Order. Board meetings will be called to order by the Chairman or, if absent, by the Vice-Chairman. In the absence of both the Chairman and Vice- Chairman, the meeting shall be called to order by the Secretary, and a temporary Chairman shall be elected to preside over the meeting. Section 4.6. Conduct of Meeting. Board meetings will be conducted in accordance with these Bylaws and City Council Meeting Rules and Procedures, as applicable to the Board. See Ordinance Chapter 2.24. Housing Advisory Board Bylaws Revised May 2011February 2015 Page 4 of 7 Section 4.7. Voting. Each Member shall vote on all agenda items, except on matters involving a conflict of interest, substantial financial interest or substantial economic interest under state law, the City’s Ethics Ordinance, or other applicable Laws, Rules and Policies. In such instances the Member shall make the required disclosures and shall refrain from participating in both the discussion and vote on the matter. The Member may remain at the dais or leave the dais, at the Member’s option, while the matter is being considered and voted on by the other Board Members. Unless otherwise provided by law, if a quorum is present, an agenda item must be approved by a majority of the Board Members present at the meeting. Section 4.8. Minutes. A recording or written minutes shall be made of all open sessions of Board meetings. The Staff Liaison is the custodian of all Board records and documents. Section 4.9. Attendance. Members are required to attend Board meetings prepared to discuss the issues on the agenda. A Member shall notify the Chairman and the Staff Liaison if the Member is unable to attend a meeting. Excessive absenteeism will be subject to action under Council policy and may result in the Member being replaced on the Board. See Ordinance Section 2.36.010D. Excessive absenteeism means failure to attend at least 75% of regularly scheduled meetings, including Board meetings and Subcommittee meetings. If a Member is removed from the Board that position shall be considered vacant and a new Member shall be appointed to the Board in accordance with Section 2.5 above. Section 4.10. Public Participation. In accordance with City policy, the public is welcome and invited to attend Board meetings and to speak on any item on the agenda. A person wishing to address the Board must sign up to speak in accordance with the policy of the Council concerning participation and general public comment at public meetings. Sign-up sheets will be available and should be submitted to the Chairman prior to the start of the meeting. If any written materials are to be provided to the Board, a copy shall also be provided to the Staff Liaison for inclusion in the minutes of the meeting. Speakers shall be allowed a maximum of three minutes to speak, but may take up to six minutes if another individual who signs up to speak yields the time to the speaker. If a person wishes to speak on an issue that is not posted on the agenda, they must file a written request with the Staff Liaison no later than one week before the scheduled meeting. The written request must state the specific topic to be addressed and include sufficient information to inform the Board and the public. A person who disrupts the meeting may be asked to leave and be removed. Housing Advisory Board Bylaws Revised May 2011February 2015 Page 5 of 7 Section 4.11. Open Meetings. Public notice of Board meetings shall be provided in accordance with the provisions of the Texas Open Meetings Act. All Board meetings and deliberations shall be open to the public, except for properly noticed closed session matters, and shall be conducted in accordance with the provisions of the Texas Open Meetings Act. Section 4.12. Closed Sessions. The Board may conduct closed sessions as allowed by law, on properly noticed closed session matters, such as consultation with attorney on legal matters, deliberation regarding the value of real property, competitive utility matters, and economic development negotiations. A recording or certified agenda shall be made of all closed sessions of Board meetings. ARTICLE V. REPORTS TO CITY COUNCIL The Board shall meet with City Council, as requested, to determine how the Board may best serve and assist City Council. City Council shall hear reports from the Board at regularly scheduled Council meetings. ARTICLE VI. SUBCOMMITTEES Section 6.1. Formation. When deemed necessary by a majority of the Board, Subcommittees may be formed for specific projects related to Board matters. Subcommittees comprised of non-Members may only be formed with the prior consent and confirmation of the City Council. Section 6.2. Expenditure of Funds. No Subcommittee, or member of a Subcommittee, has the authority to expend funds or incur an obligation on behalf of the City or the Board. Subcommittee expenses may be reimbursed if authorized and approved by the Board or by City Council. Section 6.3. Open Meetings. Subcommittee meetings and deliberations shall be open to the public, except for properly noticed closed session matters, and shall be conducted in accordance with the provisions of the Texas Open Meetings Act. ARTICLE VII. BYLAW AMENDMENTS These Bylaws may be amended by majority vote of the Board Members at any regular meeting of the Board. The Board’s proposed amendments to the Bylaws must be Housing Advisory Board Bylaws Revised May 2011February 2015 Page 6 of 7 approved by City Council at the next Council meeting after the Board’s approval. Bylaw amendments are not effective until approved by City Council. Housing Advisory Board Bylaws Revised May 2011February 2015 Page 7 of 7 Approved and adopted at a meeting of the City Council on the _____ day of ____________________, 2015. ATTEST: THE CITY OF GEORGETOWN _____ _____ City Secretary Mayor Approved and adopted at a meeting of the Board on the ______ day of _________________, 2015. ATTEST: BOARD _____ _____ Board Secretary Board Chairman City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: Reminder of the next regular meeting date of February 18, 2015. ITEM SUMMARY: FINANCIAL IMPACT: None. SUBMITTED BY: City of Georgetown, Texas Housing Advisory Board January 14, 2015 SUBJECT: ITEM SUMMARY: FINANCIAL IMPACT: None. SUBMITTED BY: