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HomeMy WebLinkAboutAgenda_HAB_03.28.2022Notice of Meeting for the Housing Adv isory B oard of the City of Georgetown March 28, 2022 at 3:30 P M at Historic L ight and Waterworks Bldg, 809 Martin Luther K ing Jr St, Georgetown, Texas 78726 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. P ublic Wishing to Address the B oard O n a s ubjec t that is posted on this agenda: P lease fill out a speaker regis tration form whic h can be found at the Board meeting. C learly print your name, the letter of the item on which you wish to speak, and pres ent it to the S taff Liais on, preferably prior to the start of the meeting. You will be c alled forward to speak when the Board cons iders that item. O n a s ubjec t not posted on the agenda: P ersons may add an item to a future Board agenda by filing a written request with the S taff Liais on no later than one week prior to the Board meeting. T he reques t must include the s peaker's name and the spec ific topic to be addres s ed with sufficient information to inform the board and the public . F or Board Liaison c ontact information, pleas e logon to http://government.georgetown.org/c ategory/boards -commissions /. A At the time of posting, no persons had signed up to speak on items not on the agenda. L egislativ e Regular Agenda B C ons ideration and possible action to approve the minutes from the Dec ember 13, 2021 regular meeting of the Housing Advis ory Board. - S tephanie Mc Nickle, P lanning Technic ian C Disc ussion and possible action to approve meeting time, date and plac e for 2022-23 year. D Nomination and selec tion of Vic e-chair and S ec retary for the 2022-23 year. E P resentation and dis cus s ion on the roles and res ponsibilities of the HAB. - Nat Waggoner, Asst. P lanning Dir. - Long R ange F P resentation and dis cus s ion on the submis s ion of the application to Williams on C ounty to reques t 2022 C ommunity Development Bloc k G rant (C DBG ) funding-- Nat Waggoner, As s is tant P lanning Director- Long R ange G P resentation and dis cus s ion of regional hous ing trends and C ity C ounc il spec ial session on housing held 3/1/2022. - Nat Waggoner, As s t. P lanning Dir. - Long R ange Adjournment Ce rtificate of Posting Page 1 of 89 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 _________________, 2022, 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 2 of 89 City of Georgetown, Texas Housing Advisory Board March 28, 2022 S UB J E C T: C onsideration and pos s ible ac tion to approve the minutes from the December 13, 2021 regular meeting of the Hous ing Advisory Board. - S tephanie Mc Nic kle, P lanning Tec hnician IT E M S UMMARY: C ommis s ioners who were not in attendance of the 12/13/2021 are able to vote on the motion but are not required to vote and may abstain if they c hoose. F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: Mirna G arcia, P rogram Manager AT TAC H ME N T S: Description Type Minutes Cover Memo Page 3 of 89 Housing Advisory Board Page 1 Minutes December 13, 2021 City of Georgetown, Texas Housing Advisory Board Minutes December 12, 2021, at 3:30 p.m. 809 Martin Luther King Jr. Street Board Members present: Wendy Cash; Charles Collins, Nikki Brennan, Linda Sloan, Regina Watson, Grayson Smith and Eric Marin Board Member(s) absent: N/A Staff present in-person: Sofia Nelson, Planning Director and Stephanie McNickle, Planning Specialist The Meeting was opened by Chair Wendy Cash at 3:31 p.m. Public Wishing to Address the Board A. As of the deadline, no persons were signed up to speak on items other than those posted on the agenda. Legislative Regular Agenda B. Consideration and possible action to approve the minutes from the October 25, 2021 regular meeting of the Housing Advisory Board. - Stephanie McNickle, Planning Specialist Motion by Board member Brennan to approve the minutes from the September 27, 2021, Housing Advisory Board meeting. Second by Board member Marin. Approved. (7-0) C Presentation on the use of CDBG funds to advance 2030 Housing Policies. Sofia Nelson Ms. Nelson gave a brief review of the current housing programs that include Home Repair Program, Community Development Block Grant Funding, Workforce Housing Development and Neighborhood Association support. Sofia stated from a Community Development Block Grant Funding Overview • Entitlement communities receive direct federal funding • Non-entitlement communities can be sub-recipients • CoG is subrecipient of Williamson County • Annual application for funding • Eligible projects must be in Low to Moderate Income (LMI) areas • At least 47% of households have incomes at or below 80% of the area median income (AMI) Ms. Nelson stated the active funding for Home Repair for 2021 was $100K, $97K for wastewater line for 21st street Habitat development in 2020 and 75K Home Repair in 2020 Ms. Nelson stated the Home Repair Program total funding was $170K this year. $100K – CDBG funds from Williamson County $70K – City of Georgetown Page 4 of 89 Housing Advisory Board Page 2 Minutes December 13, 2021 • 40K General Funds • $15K Conservation – Energy • $15K Conservation – Water Sofia stated from a Workforce Housing Development we were able to use the Workforce Standards two times within the city. The purpose was to encourage affordable housing for the workforce, the code allows flexibility to the development standards and allowable housing types for projects that foster housing affordability. We were able to reduce lot sizes and setbacks along with building height, units per building and impervious cover. It was stated the Area Median Income for 2021 in Williamson County is $98,900.00 The Workforce Housing Agreement - In exchange for alternative development standards, the applicant will reserve at least 10% units at 80% AMI for 10 years. • Owners provides quarterly reports to City • Marketing of units • Financial guarantee of performance Sofia gave a brief overview on Neighborhood Associations. Sofia stated the office notifies adjacent property owners of land use changes and rezones. We assist with distinguishing the difference between a Neighborhood Association and a Homeowners Association. Assist neighborhoods without an association in forming one. Board member stated she believes that by June 1st all HOA’s must be registered through the Texas Real Estate Commission. Board member asked about the role of the Housing Advisory Board regarding the CDBG funding and staff stated that how the bylaws are written, the Housing Advisory Board does not make recommendations, but staff feels it’s important to keep the Board informed. D Discussion on education related to innovations in housing. Sofia Nelson, Planning Director Board member Smith discussed the challenges of building in the City. He stated he feels it is very time consuming and the cost is high. He feels there is a disconnect between Council and P&Z. An application may be approved at P&Z, but then denied at City Council. He is surprised the city does not have more flexibility for Single-family zoned lots. He stated in Austin and even in Liberty Hill there are small lot zoning that is 3500 square feet, but in Georgetown the smallest lot size allowed is 5500 square feet. Board member Smith stated even in the downtown area, there are deep lots and since you cannot have a flag lot, you have all this useless land behind these homes. Board Member Smith stated there are things that could go along way by adding more eclectic housing in the downtown area. Board member Smith feels there is sometimes a “one size” fits all or a “David and Goliath” mentality when developing. Board member Smith stated City department seems like they do not communicate with one another and have their own way of looking at things regarding development. There was additional discussion on large narrow lots in the downtown area. Sofia Nelson stated these are important conversations and should be kept as a standing item, which will prep us for when the Unified Development Code diagnostics starts. The Board asked and Sofia stated the UDC diagnostic will start in 2022. Page 5 of 89 Housing Advisory Board Page 3 Minutes December 13, 2021 E Update on TRG and San Jose neighborhood plans. - Sofia Nelson Ms. Nelson gave a powerpoint presentation outlining the work and timeline of the Track, Ridge, Grasshopper and San Jose Neighborhoods. Sofia stated there was a community meeting along with a Council Workshop in September. There was work performed with the Steering Committee’s September, October and November that included Stakeholder Interviews, Steering Committee Meeting #7, 8 and 9, Community Meeting #3 and Analysis of Community Input. Ms. Nelson also stated there was a joint Steering Committee meeting December 13th. The neighborhood developed goals are: Conservation – Protection of legacy homeowners from displacement; Sharing and celebrating the history and culture of the neighborhoods. Accessibility – Guides infrastructure improvements for transportation and flooding concerns. Restoration – Proposes opportunities for compatible neighborhood development. Ms. Nelson reviewed each goal. Implementation Strategy – Conservation • Examine the opportunity to increase targeted Home Repair support for the TRG and San Jose neighborhoods • Increase funding for the existing Home Repair Program • Support neighborhood creation of a Neighborhood Association • Establish a homeowner education and outreach program • Establish a program to assist homeowners with the creation of a will • Tax relief – examine options for relief for legacy homeowners with homestead exemptions Ms. Nelson and the Board discussed the importance of information to the homeowners in the TRG and San Jose neighborhoods. Implementation Strategies – Conservation Historic Preservation • Complete historic resource survey that includes focus on oral history • Require a COA for demolition of low priority resources within the TRG neighborhood • Utilize Historic Landmark program • Focus on public art projects that celebrate neighborhood history Implementation Strategies – Accessibility Transportation - • Traffic and Safety Studies • Maple Street • Scenic Drive Implementation of Sidewalk Master Plan - • TRG - sidewalks on residential streets • San Jose - remove sidewalk plan for San Jose Street and focus attention on Maple Street Stormwater • Increased Maintenance • Complete Drainage Study Page 6 of 89 Housing Advisory Board Page 4 Minutes December 13, 2021 Implementation Strategies - Restoration Land Use • Adopt Neighborhood specific land use plans: • San Jose - specific recommendation to be an exclusive single-family neighborhood • TRG - specific land use plan that recognizes the varying character zones within the neighborhood. Regulatory • Establish an overlay district at the petition of the neighborhood association: • San Jose - establish height and setback standards unique to neighborhood. • TRG - establish height and demolition standards unique to the neighborhood. Ms. Nelson reviewed over the next steps. • Finalize Implementation Plan based on City Council feedback • Complete Draft Plan review with Steering Committees • Draft Presented to Community for feedback • P&Z recommendation to City Council • City Council Public Hearing and 1st reading • CC 2nd reading After Ms. Nelson’s presentation, the board asked what they as a Housing Advisory Board should be doing as they wait for the consultants to start the Unified Development Code diagnostics. Ms. Nelson stated the board should continue having discussions about what the best practices you are seeing in other areas and reporting them back to the Board. The Board asked and Ms. Nelson stated these recommendations will be forwarded to the consultants. Ms. Nelson stated it is important to continue these discussions, so you as a Board can convey these practices to the consultants. The Board agreed to wait to confirm the January meeting due to the regular meeting is scheduled for Monday, January 17th which is a city holiday. Motion to Adjourn. Approved (7-0). The meeting was adjourned at 4:39 p.m. __________________________________ _______________________________________ Approved, Wendy Cash, Chair Attest, Linda Sloan, Secretary Page 7 of 89 City of Georgetown, Texas Housing Advisory Board March 28, 2022 S UB J E C T: Dis cus s ion and pos s ible ac tion to approve meeting time, date and place for 2022-23 year. IT E M S UMMARY: T he C ommission will disc uss and pos s ibly approve a new meeting time, date and plac e for the 2022-23 year. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Nat Waggoner, P MP, AI C P Page 8 of 89 City of Georgetown, Texas Housing Advisory Board March 28, 2022 S UB J E C T: Nomination and s election of Vice-c hair and S ecretary for the 2022-23 year. IT E M S UMMARY: T he C ommission will selec t a Vice-c hair and S ecretary for the 2022/23 year. F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: Mirna G arcia. Management Analys t Page 9 of 89 City of Georgetown, Texas Housing Advisory Board March 28, 2022 S UB J E C T: P res entation and disc ussion on the roles and respons ibilities of the HAB. - Nat Waggoner, As s t. P lanning Dir. - Long R ange IT E M S UMMARY: At this meeting, s taff will provide a brief overview of the roles and respons ibilities of the HAB and answer any ques tions of the members. T he role of the HAB is outlined in the C ity C ounc il approved bylaws, whic h are attac hed. T he bylaws s tate, the purpos e of the Hous ing Advisory Board is to ensure that the C ity has affordable hous ing for res idents of all income levels. T he Board is respons ible for providing long-range housing res earch and polic y recommendations with the hous ing element of the C ity’s c omprehens ive plan. T he Board is also res ponsible for reviewing and making recommendations regarding housing developments that request C ity s upport for s tate and federal funding. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Nat Waggoner, P MP, AI C P AT TAC H ME N T S: Description Type HAB Bylaws Exhibit Page 10 of 89 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 ensuring that the City has affordable housing 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 seven (7) Members. Section 2.2. Eligibility. Whenever possible, the 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 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. An appointment to fill a vacated term is not included as a term for purposes of cou nting consecutive terms. Housing Advisory Board Bylaws Revised March 2015 Page I of? Page 11 of 89 Page 12 of 89 Page 13 of 89 Page 14 of 89 Page 15 of 89 Page 16 of 89 Page 17 of 89 City of Georgetown, Texas Housing Advisory Board March 28, 2022 S UB J E C T: P res entation and disc ussion on the s ubmission of the applic ation to Williamson C ounty to request 2022 C ommunity Development Block G rant (C DBG ) funding-- Nat Waggoner, Assistant P lanning Director- Long R ange IT E M S UMMARY: Background T he C ity of G eorgetown participates as part of the Williams on C ounty C ommunity Development Bloc k G rant P rogram. T he attached report (2022 C D B G Staff Report) details the program requirements and pas t G eorgetown partic ipation. Q ualification for eligibility of funds c an be determined on an area basis (47% or greater of hous eholds make 80% of Area Median Inc ome or les s ) or a household basis (hous ehold makes 80% of Area Median Inc ome or les s ). F unds us ed for capital improvements mus t be used in an eligible area (Attachment 1 – C D B G Eligible Areas). Project description T he C ity is reques ting home rehabilitation funds in the amount of $150,000 for the C ity's Home R epair P rogram T his reques t s upports P olic y H.1 of the Hous ing Element of the 2030 C omprehensive P lan to “P reserve existing housing stock that contributes to affordability.” Home rehabilitation for low to moderate inc ome homeowners s upports the pres ervation of that housing. If awarded, the C ity intends to partner with Habitat for Humanity in an agreement s imilar to the Home R epair program agreement. T he reques t als o supports Williams on C ounty's funding priorities for 2019- 2023 to increase acc es s to affordable hous ing by extending the useful life of exis ting affordable housing through weatherization, repair, and rehabilitation programs . Recommendation Approval to s ubmit applic ation for the projec t des cribed in this report. F IN AN C IAL IMPAC T: T he c ity is requesting $150,000 of the C ommunity Development Block G rant funds from Williamson C ounty. T here is no matching requirement for this grant. S UB MIT T E D B Y: C es ar Acosta, S enior P lanner AT TAC H ME N T S: Description Type 2022 CDBG Staff Report Exhibit Eligible Areas Exhibit Page 18 of 89 Grant Application Form Exhibit Williamson County CDBG 2019-2023 Funding Priorities Exhibit Page 19 of 89 2022 Community Development Block Grants Page 1 of 3 March 22, 2022 Agenda Item Report Subject: Consideration and possible action to approve the submission of an application to Williamson County to request 2022 Community Development Block Grant (CDBG) funding—Nat Waggoner, Asst. Planning Dir. – Long Range Background: Williamson County was awarded Entitlement County Status by the U.S. Department of Housing and Urban Development (HUD) in 2003. As such, the County applies for and administers Community Development Block Grant (CDBG) funds to participating cities and counties. The City of Georgetown currently participates in the County’s program. All CDBG funds must be used for projects that meet at least one of the following HUD national objectives: “Benefit low to moderate-income persons (below 80% Area Median Income). Abused children, elderly persons, battered spouses, homeless persons, adults meeting Bureau of Census’ definition of severely disabled persons, illiterate adults, persons living with AIDS, and migrant farm workers qualify as Limited Clientele.” “Eliminate slums and/or blight.” “Address an urgent community development need having a particular urgency because existing conditions pose a serious and immediate threat to health or welfare of the community for which other funding is not available.” Qualification for eligibility of funds can be determined on an area basis (47% or greater of households make 80% of Area Median Income or less) or a household basis (household makes 80% of Area Median Income or less). Funds used for capital improvements must be used in an eligible area (Attachment 1 – CDBG Eligible Areas). The Williamson County CDBG program is governed by the 2019-2023 Consolidated Plan, which was adopted in 2019. This Plan defines priorities, populations and project types that are eligible for funding. Five priorities areas outlined and prioritized as high priority needs in the Plan are: (1) Public Facilities and Infrastructure Improvements, (2) Increase Access to Affordable Housing, (3) Decrease Homelessness, (4) Public Services, and (5) Affirmatively Furthering Fair Housing are all ranked as high priority needs (https://www.wilco.org/Portals/0/Departments/HUD/Williamson%20County%20CDBG %202019-2023%20Funding%20Priorities.pdf). Applications for the 2022 budget cycle are due Monday, April 12th. Page 20 of 89 2022 Community Development Block Grants Page 2 of 3 March 22, 2022 Over the last 17 years, the City of Georgetown has received the following amounts for the projects listed below: 2005 $85,000 Leander/Railroad Street and Utility Improvements (in conjunction with Habitat for Humanity’s Old Mill Village Development) 2006 $50,000 Continuation of Leander Street drainage 2007 $250,000 and street improvements 2008 $179,595 Completion of Leander and 22nd Street drainage and street improvements (Completed March 2009), expanded original scope to add sidewalks and drainage improvements on 22nd Street (Completed August 2010) $120,000 Sidewalk from Austin Avenue to Quail Valley Drive on FM 1460 (Completed May 2011) 2009 $64,590 Sidewalk from West University Avenue to 17th Street on the west side of Scenic Drive. 2010 $392,370 Sidewalks on portions of Scenic, 18th, Maple and Holly Streets (completed 2012) 2011 $69,180 Sidewalks for the Madella Hilliard Center and along 8th Street (completed 2015) 2012 $78,900 Sidewalks along the south side of University Drive from I-35 to Austin Avenue, filling in gaps along the route. (completed) 2013 $79,400 Wastewater line for Georgetown Project’s NEST Homeless Teen Center (completed 2014) $38,000 Engineering for sidewalks along MLK/3rd and 2nd Street (completed) 2014 $160,000 Sidewalk along the south side of E. 2nd Street from Austin Avenue to College Street (completed) 2015 $87,120 Sidewalk along MLK/3rd Street from Scenic to Austin (completed) 2016 $135,500 Sidewalk along Scenic Drive to connect University Ave and 6th Street. (completed 2018) 2018 $206,824 Sidewalk along 17th St to connect Forest and Railroad Street. (completed 2020) 2019 $75,000 Home Repair Program 2020 $75,000 Home Repair Program $97,000 Infrastructure for Habitat for Humanity townhomes at 502 W. 21st St (Shepherd’s Village) 2021 $100,000 Home Repair Page 21 of 89 2022 Community Development Block Grants Page 3 of 3 March 22, 2022 Item Request: This year we are requesting funds for $150,000 for the Home Repair Program as described below. (Attachment 3 - 2022 CDBG Application). Home Repair Program Housing rehabilitation is listed as an associated goal of Williamson County's 2019-2023 funding priority to increase access to affordable housing by extending the useful life of existing affordable housing through weatherization, repair, and rehabilitation programs (Attachment 4 - Williamson County Funding Priorities for 2019-2023). The City is requesting $150,000 in CDBG funding to supplement the City’s program and assist approximately twenty additional eligible homeowners with home rehabilitation services. This request supports Policy H.1 of the Housing Element of the 2030 Comprehensive Plan to “Preserve existing housing stock that contributes to affordability.” Home rehabilitation for low to moderate income homeowners supports the preservation of that housing. If awarded, the City intends to partner with Habitat for Humanity to serve eligible households (up to 80% AMI) in a similar partnership agreement to the Home Repair Program agreement. Total funding requested: $150,000 Grant Requirements: The Department of Housing and Urban Development is responsible for the enforcement of the Fair Housing Act of 1968 (amended in 1988). The Fair Housing Act prohibits discrimination on the basis of race, color, sex, national origin, disability and familial status. This prohibition exists regardless of accepting grant funds. Starting in 2016, the Affirmatively Furthering Fair Housing rule requires any jurisdiction that accepts funds from HUD to perform a study to examine any possible patterns of housing discrimination. As Williamson County is the participating jurisdiction, they will conduct the study as part of the grant requirements. Georgetown will be included within the study, regardless of whether grant funds are accepted by the city. Financial Impact: This grant does not require any matching funds. Recommendation: Approval to submit application for the project described in this report. Attachments: Attachment 1 – CDBG Eligible Areas Attachment 2 - Grant Application Forms Attachment 3 – 2022 CDBG Application Attachment 4 – Williamson County Funding Priorities for 2019-2023 Page 22 of 89 F M 1 4 6 0 B O O T Y S C R O SSINGRD WILLIAMSDR N A W G R I M E S BLVD L E A N D E R R D U NIV E R S I T Y B L V D S A M H O U S T O N A V E CHANDLERRD LIM ME R LO OP NAUSTINAVE L A K E W A Y DR W UNIVERSITY AV E SAUSTINAV E F M 9 7 1 C R 1 0 5 E U N I V E R S I T Y A V E S U N R I S E R D W E S T I N G H O U S E R D C R 1 1 2 N E INNER LOOP C R 1 1 0 D B W O O D R D P A T R I O T WAY B E L L G I N R D R O C K R I D E L N S O U TH W ESTERN B L V D S E I N N E R L O O P §¨¦35 55.15% 58.68% 60.15% 65.35%94.96% 89.87% 47.47% 53.19% 53.19% 52.61% 47.71% Eligible Census Block Groups for CDBG Application 0 10.5 Miles ±CDBG fund ing is e ligible to census block groups that havemore than 47% low to moderate income households. Per centa ge of low to moderate income households in red. Eligible Block Groups Georgetown City Limits Page 23 of 89 City *State *Zip * Phone *Fax * WILLIAMSON COUNTY FY 2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) DO NOT USE THIS APPLICATION FOR SOCIAL SERVICE PROJECT FUNDING REQUESTS FY2021 (OCT. 1, 2022 – SEPT. 30, 2023) Organization Name * Name and Title of Contact Person * Address * Email * Project Title * Project Description * Will the project be ready to begin on or about October 1, 2022?* Is the project phased?* Estimated Number of Low and Moderate Income Persons, Households or Limited Clientele to be Served Number of Persons Number of Households Low and Moderate Income Persons, Households or Limited Clientele to be served by project Please Identify the Community Need * Who is going to operate and maintain the facility or program and how will its operation be funded?* Applicant Organization Name & Contact Information City of Georgetown Nathaniel Waggoner, Assistant Planning Director 809 Martin Luther King Jr. Street Georgetown TX 78627 5129303675 n/a nathaniel.waggoner@georgetown.org Project Information Home Repair Program Home Rehabilitation Yes No Yes No 20-60 20 Maintaining the character and preserving the housing stock of the San Jose and TRG neighborhoods is a top priority of the recently approved small area plans for the San Jose and Track-Ridge-Grasshopper Neighborhoods. Housing rehabilitation is listed as an associated goal of Williamson County's 2019-2023 funding priority to increase access to affordable housing by extending the useful life of existing affordable housing through weatherization, repair, and rehabilitation programs. Additionally, this request supports Policy H.1 of the Housing Element of the 2030 Comprehensive Plan is to “Preserve existing housing stock that contributes to affordability.” Home rehabilitation for low income homeowners supports the preservation of that housing. Habitat for Humanity of Williamson County (HFHWC) currently has an agreement to administer the City of Georgetown's Home Repair program. The City of Georgetown will enter into an agreement with HFHWC to administer these funds for eligible homeowners. Page 24 of 89 CDBG Project Budget Estimate Budget Catagories Total Project Cost CDBG Funding Sponsor Funding Contributions State, City or Federal Funding Other Funding Professional Services (Architectural / Engineering) Construction Services Property Acquisition Property Rehabilitation Equipment Acquisition Other (specify in budget narrative) Total Project If the project requires staff, what are the staff costs?* Service Area * ***Maximum upload size of files combined is 250MB Map of Service Area (PDF, TIF, TIFF OR JPG)* Upload any other attachments (Excel, Word, PDF, TIFF, TIF, JPG files only) Amount of CDBG funds requested * Total funds obtained from other resources * Total cost of project * Please note Funds obligated to the project will be tied to that obligation unless authorized to do otherwise. CDBG funds do not require leveraged funds. Budget Narrative * ***Maximum upload size of files combined is 250MB The City of Georgetown currently coordinates its CDBG and Home Repair programs through its Planning Department budget including time and staff for administrative tasks. Identify the geographic boundaries of the proposed service area. Map of City of Georgetown City Limits attached - Actual locations will be based on income qualifications Attachment 1 - CDBG Eligible Areas.pdf 635.73KB Project Funding 150,000.00$ 0.00$ 150,000.00$ $$$$$$ $$$$$$ $$$$$$ 150,000.00$150,000.00$$$$$ $$$$$$ $$$$$$ 150,000.00$150,000.00$$$$$ The City is requesting $150,000 in CDBG funding to assist approximately twenty eligible homeowners. The CDBG funding would be administered by HFHWC in a similar partnership agreement to the current Home Repair Program agreement. Page 25 of 89 Budget (Excel, Word and or PDF files only)* Signature * Executive Director * Date Signed * CC WC Home Repair Program Proposed Budget and Timeline 2022 CDBG Application.pdf 22.71KB Nathaniel Waggoner, Assistant Planning Director, Planning Department, City of Georgetown 3/15/2022 sbardwell@wilco.org Page 26 of 89 Williamson County Funding Priorities for 2019-2023 Public Facility and Infrastructure Improvements • Fund non-housing community development proposals that eliminate a threat to public health and safety to include water/sewer projects, drainage projects, sidewalks, and street improvements. • Fund public facility improvements that benefit low income households and persons, and persons with special needs to include senior centers, neighborhood facilities, youth centers, homeless facilities, childcare centers, parks and recreational facilities. Increase Access to Affordable Housing • Fund activities that expand the supply and improve the condition of housing affordable to lower income households. • Fund activities that leverage other public and private resources such as Low Income Housing Tax Credit (LIHTC) projects. • Extend the useful life of existing affordable housing through weatherization, repair, and rehabilitation programs. Decrease Homelessness • Provide funds to support shelter operations and transitional housing. • Provide funding to increase permanent supportive housing opportunities and work to create a stronger network of providers of supportive and mainstream services to homeless clients. Public Services • Fund projects that provide supportive services to low- and moderate-income household as well as persons with special needs. • Support efforts to develop a regional social service collaborative to coordinate the work of social service organizations, disseminate information, and eliminate duplication of effort. Affirmatively Further Fair Housing • Support improved access to community resources. • Continue to operate in compliance with protected class definitions found in federal regulations. Page 27 of 89 1 Priority Need Name INCREASE ACCESS TO AFFORDABLE HOUSING Priority Level High Population Extremely Low Income Low Income Moderate Income Large Families Families with Children Elderly Families Public Housing Residents Elderly Frail Elderly Persons with Mental Disabilities Persons with Physical Disabilities Persons with Developmental Disabilities Persons with Alcohol or Other Addictions Persons with HIV/AIDS and their Families Victims of Domestic Violence Geographic Areas Affected Countywide CDBG Eligible Associated Goals Housing rehabilitation Homeownership assistance Affordable rental housing Description Provide assistance to homeowners and renters to increase access to affordable housing and to extend the life of existing units. Basis for Relative Priority High housing costs reduce economic opportunities and access to prosperity. 2 Priority Need Name DECREASE HOMELESSNESS Priority Level High Population Families with Children Elderly Families Elderly Frail Elderly Persons with Mental Disabilities Persons with Physical Disabilities Persons with Developmental Disabilities Persons with Alcohol or Other Addictions Persons with HIV/AIDS and their Families Victims of Domestic Violence Geographic Areas Affected Countywide Associated Goals Provide housing/services to the homeless/at risk of homelessness Description Provide support for facilities and services that are targeted at those experiencing homelessness and/or at risk of homelessness Basis for Relative Priority Homelessness has been increasing and there is a need to provide shelter and support for persons experiencing homelessness or who are at risk of becoming homeless. This includes persons who are living in cars, doubled up or couch surfing. Support could come in the form of emergency shelters, transitional housing, permanent supportive housing and services related to health and mental health, substance abuse issues, etc. Page 28 of 89 3 Priority Need Name PUBLIC FACILITIES AND INFRASTRUCTURE IMPROVEMENTS Priority Level High Population Extremely Low Income Low Income Moderate Income Non-housing Community Development Geographic Areas Affected CDBG Eligible Countywide Associated Goals Improve public infrastructure Improve public facilities Description Improvements to public facilities and infrastructure and facilities that deliver public services. Infrastructure improvements include: solid waste disposal, flood drains, water/sewer, streets, sidewalks, neighborhood facilities, and parks and recreational facilities. Examples of public facilities include those that serve youth/children, abused and neglected children, seniors, persons with disabilities and other vulnerable populations. Basis for Relative Priority There is a need to make improvements, particularly in low- and moderate-income areas in which the local jurisdictions are less able to leverage resources or attract investments that are necessary to improve the quality of life. There is a significant need for water resources, wastewater and improved drainage throughout the county. 4 Priority Need Name PUBLIC SERVICES Priority Level High Population Extremely Low Income Low Income Moderate Income Non-homeless special needs Persons with disabilities Victims of domestic violence Homeless Families with children Non-housing Community Development Geographic Areas Affected Countywide Associated Goals Provide public services Description Delivery of public services for seniors, persons with disabilities, youth, victims of domestic violence, abused and neglected children as well as childcare services, health and mental health services, transportation, non-homeless special needs and employment training. Basis for Relative Priority A variety of public services are needed including services for seniors, youth and children, those needing mental health services, health services, services for persons with disabilities, services for victims of domestic violence and non-homeless special needs. Public transportation is a significant need to enable individuals to access services. 5 Priority Need Name AFFIRMATIVELY FURTHER FAIR HOUSING CHOICE Priority Level High Population Extremely Low Income Low Income Moderate Income Families with Children Elderly Families Page 29 of 89 Elderly Frail Elderly Persons with Mental Disabilities Persons with Physical Disabilities Persons with Developmental Disabilities Persons with Alcohol or Other Addictions Persons with HIV/AIDS and their Families Victims of Domestic Violence Geographic Areas Affected Countywide Associated Goals Fair housing activities Description Provide education and outreach to the community regarding fair housing laws Basis for Relative Priority There is the continued need for education and outreach for the general public, those in the real estate industry, landlords and property managers regarding fair housing laws. 6 Priority Need Name PLANNING AND ADMINISTRATION Priority Level High Population Extremely Low Income Low Income Moderate Income Geographic Areas Affected Countywide Associated Goals Planning and administration Description Administrative and planning costs to operate the CDBG program successfully. Basis for Relative Priority Effective and efficient implementation of CDBG funding requires adequate resources for program planning and administration. Page 30 of 89 City of Georgetown, Texas Housing Advisory Board March 28, 2022 S UB J E C T: P res entation and disc ussion of regional housing trends and C ity C ouncil s pecial s es s ion on hous ing held 3/1/2022. - Nat Waggoner, Asst. P lanning Dir. - Long R ange IT E M S UMMARY: O n March 1, 2022, the C ity C ouncil held a work s es s ion on regional housing trends and held a dis cus s ion of the hous ing tour they completed prior to the session. At this meeting, s taff will s hare the information presented for the Boards awarenes s . No ac tion is needed of the Board. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Nat Waggoner, P MP, AI C P AT TAC H ME N T S: Description Type Regional Hous ing by RCLCO Exhibit City Council Housing Tour Development Notes Exhibit Council Hous ing Tour Map Exhibit Page 31 of 89 CITY OF GEORGETOWN MARKET OVERVIEW March 1, 2022 Todd LaRue Page 32 of 89 RCLCO Monthly Round-Up | June 17, 2021 | 2 FIRM OVERVIEW ►50 YEARS OF EXPERIENCE IN NORTH AMERICA »Founded in 1967 in Southern California ►FULL COVERAGE OF U.S. FROM OFFICES IN: »Los Angeles | Washington, DC | Austin | Orlando ►WE TOUCH $5B IN REAL ESTATE EVERY YEAR »Completing 500 engagements for clients from every continent ►WORLD CLASS TEAM OF DEVELOPMENT, ASSET MANAGEMENT, FINANCE & PLANNING PROFESSIONALS »50+ consultant team ►OUR MISSION: »Help our clients make strategic, effective, and enduring decisions about real estate ►LEADERS IN MORE THAN 25 INDUSTRY ASSOCIATIONS INCLUDING ULI, NMHC, PREA, ICSC, & MORE Page 33 of 89 UT Real Estate Practicum | 9/21/21 | 3 RCLCO APPROACH: END-TO -END SOLUTIONS INVESTMENT STRATEGY & ASSET MANAGEMENT Capital Formation Transaction Strategy Capital Markets Public Pension Funds Family Offices High-Net Worth Individuals MANAGEMENT CONSULTING Strategic Plan Partner Selection Project/Market Monitoring Organizational Insights NexMetro Communities Arizona Board of Regents City of Beverly Hills REAL ESTATE ECONOMICS Market Feasibility Demand Analyses Product Segmentation, Positioning & Pricing Case Studies & Critical Success Factors Real Estate Markets DMB Associates Sunbelt Holdings Brookfield Howard Hughes Company Page 34 of 89 AUSTIN MSA MARKET Page 35 of 89 City of Georgetown | Market Overview | 3/1/2022 | 5 AUSTIN AMONG FASTEST GROWING MSA’S IN THE COUNTRY Note: Bars on chart represent absolute growth, while data labels represent the compounding annual growth rate during the same time period. Source: Moody’s; RCLCO 1.1% 2.9% 3.2% 1.8% 3.7% 2.8% 3.4% 1.3% 1.6% 3.2% 2.6% 2.8% 2.5% 1.4% 2.5% 3.0% 2.4% 2.9% 1.8% 1.6% 0 20 40 60 80 100 120 140 160 Philadelphia Charlotte San Jose Detroit Austin Denver Orlando Washington Boston Riverside Seattle Phoenix Miami Chicago Atlanta San Francisco Houston Dallas Los Angeles New York CAGR Average Annual Employment Growth (000s & CAGR), 2010-2020; Top 20 MSAs Average Annual Population Growth (000s & CAGR), 2010-2020; Top 20 MSAs 1.0% 0.7% 1.7% 0.2% 1.4% 1.8% 1.0% 1.9% 0.3% 1.0% 1.7% 2.2% 2.8% 1.6% 1.1% 1.2% 1.4% 1.8% 2.0% 1.9% 0 20 40 60 80 100 120 140 Minneapolis Boston Las Vegas New York Tampa Charlotte San Francisco San Antonio Los Angeles Riverside Denver Orlando Austin Seattle Washington Miami Atlanta Phoenix Houston Dallas Page 36 of 89 City of Georgetown | Market Overview | 3/1/2022 | 6 REGIONAL EMPLOYMENT GROWTH –POSITIVE NEAR-TERM OUTLOOK Source: Moody’s Analytics; Perryman Group; U.S. Bureau of Labor Statistics -40 -20 0 20 40 60 80 Em p l o y m e n t G r o w t h ( 0 0 0 s ) Historical Moody's Projection Perryman Group Projection Historical Avg. Historical and Projected Annual Employment Growth Austin, TX MSA; 2001-2030 Page 37 of 89 City of Georgetown | Market Overview | 3/1/2022 | 7 REGIONAL HOUSEHOLD DISTRIBUTION Source: U.S. Census Bureau; Esi Annual Household Growth per Square Mile Austin, TX MSA; 2010-2021 0% 10% 20% 30% 40% 50% 60% 70% Travis County Williamson County Hays County Bastrop County Caldwell County Sh a r e o f R e g i o n a l H o u s e h o l d s 2000 2010 2021 2026 Share of Growth 2021-2026 Share of Austin MSA Households and Projected Capture of Future Growth Austin, TX MSA; 2000-2026 MAP KEY 75+ 50-75 25-50 0-25 <0 City of Georgetown Page 38 of 89 City of Georgetown | Market Overview | 3/1/2022 | 9 REGIONAL HOUSING MARKET –RAPID HOME PRICE APPRECIATION Source: Texas A&M Real Estate Center $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Me d i a n S a l e P r i c e An n u a l S a l e s Annual Sales Median Sale Price Appreciation: 2020: 9.2% 2021: 30.8% Historical Existing Home Sales and Median Sale Price Austin, TX MSA; 2001-2021 Page 39 of 89 City of Georgetown | Market Overview | 3/1/2022 | 10 FOR-SALE HOUSING: HISTORICAL DEVELOPMENT PATTERNS Source: Texas A&M Real Estate Center Owner-Occupied Housing Units Built Since 2014 per Square Mile San Antonio and Austin, TX MSAs;2018 Central Austin Central San Antonio Georgetown Page 40 of 89 City of Georgetown | Market Overview | 3/1/2022 | 11 WILLIAMSON COUNTY HOUSING MARKET –INCREASING PRICES Source: Texas A&M Real Estate Center; Redfin Historical Existing Home Sales and Median Sale Price Williamson County; 2011-2021 Appreciation: 2020: 7.7% 2021: 38.5% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2,011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Me d i a n S a l e P r i c e An n u a l S a l e s Annual Sales Median Sale Price Page 41 of 89 City of Georgetown | Market Overview | 3/1/2022 | 12 MEDIAN INCOME –MODERATE GROWTH Source: Moody’s Analytics; RCLCO -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 An n u a l G r o w t h R a t e Me d i a n H o u s e h o l d I n c o m e Median Household Income Annual Growth Rate Historical and Forecasted Median Household Income and Annual Growth Rate Austin, TX MSA; 1991-2031 Page 42 of 89 City of Georgetown | Market Overview | 3/1/2022 | 13 HOUSING AFFORDABILITY –RISING UNAFFORDABILITY Source: Moody’s Analytics; RCLCO Home Price to Income Ratio Austin, TX MSA; 1991-2031 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Me d i a n M L S S a l e P r i c e Ho m e P r i c e t o I n c o m e R a t i o Median MLS Sale Price Home Price to Income Ratio Page 43 of 89 City of Georgetown | Market Overview | 3/1/2022 | 14 SH 130 FOR-SALE HOUSING COMMUNITIES ►New for-sale product along the SH 130 corridor is clustered north of Austin New For-Sale CommunitiesSH130Corridor;2020 MAP KEY COMMUNITY TOTAL HOMES AVG. SIZE (SF)AVG.BASE PRICE AVG.BASE$/SF 1 Saddlecreek 1,339 1,925 $259,289 $135 2 Siena 2,599 2,408 $288,555 $120 3 Carmel Creek 565 2,350 $296,638 $126 4 Star Ranch 1,194 2,193 $266,861 $122 5 The Reserve of Penley Park 139 2,349 $352,326 $150 6 Villages of Hidden Lake 1,284 2,534 $315,023 $124 7 Carmel 1,075 2,462 $303,280 $123 8 Bellingham Meadows 539 2,112 $271,147 $128 9 Wildhorse Ranch 2,061 2,224 $298,444 $134 10 Manor Commons 237 1,686 $228,900 $136 11 Lagos 2,122 2,164 $255,354 $118 12 Whisper Valley 6,520 2,020 $323,113 $160 13 Prado 291 1,977 $277,157 $140 14 Meadows at Clearfork 270 2,259 $229,781 $102 TOTAL/AVERAGE 20,235 2,190 $283,276 $130 SH 130 Page 44 of 89 City of Georgetown | Market Overview | 3/1/2022 | 15 REGIONAL MPCS –AUSTIN MSA Map Key Community 2021 Home Sales 2020 Home Sales % Up or Down 1 Santa Rita Ranch 515 641 -20% 2 Sunfield 504 595 -15% 3 Easton Park 322 573 -44% 4 Crosswinds 298 214 39% 5 Kissing Tree 287 181 59% 6 Travisso 240 332 -28% 7 Wolf Ranch 231 236 -2% Page 45 of 89 City of Georgetown | Market Overview | 3/1/2022 | 16 EMPLOYMENT CONCENTRATIONS & COMMUTING PATTERNS Source: U.S. Census Bureau; Esi Employment Growth per Square Mile >1,000 0 <-500 Employment Growth per Square Mile Central Texas; 2010-2018 Page 46 of 89 City of Georgetown | Market Overview | 3/1/2022 | 17 EMPLOYMENT CONCENTRATIONS & COMMUTING PATTERNS Source: U.S. Census Bureau; Esi Historical Industrial DevelopmentCentralTexas;Pre-1980 -2020 Historical Office DevelopmentCentralTexas;2000-2020 Year Built RBA Future >2,000,000 SF 2010-2019 Before 2009 <20,000 SF Year Built RBA Future >1,250,000 SF 2010-2019 2000-2009 <20,000 SF Page 47 of 89 City of Georgetown | Market Overview | 3/1/2022 | 19 BIG INFLUENCE ON HOUSING DEMAND: HOUSEHOLD GROWTH The JCHS household projections call for 12.2 million additional households formed between 2018 and 2028,a downward revision of the 2016 projection of 16.9 million estimated baseline demand for 2015-2025. -2,000,000 -1,000,000 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Under Age 25 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 and over JCHS HH Growth Forecast 2018 -2028 Page 48 of 89 City of Georgetown | Market Overview | 3/1/2022 | 20 DEMOGRAPHIC SHIFTS MIDDLE-AGE AND MATURE HH GROWTH SUBSTANTIAL ►Households in mid-30’s to mid-40’s will increase by 2.9 million over the next 10 years »2/3 are families with children which will drive demand »Entry level homes expected to be strongest ►Households Age 65+ should grow by 11.1 million! »Most want to age-in-place, but will need to modify homes »If small amount move, demand for small homes will be significant ►Households age 45-64 will DECLINE by 1.9 million Page 49 of 89 City of Georgetown | Market Overview | 3/1/2022 | 22 BUILD-FOR-RENT Page 50 of 89 City of Georgetown | Market Overview | 3/1/2022 | 23 SFR LANDSCAPE Page 51 of 89 City of Georgetown | Market Overview | 3/1/2022 | 24 DEFINING A RAPIDLY EVOLVING PRODUCT TYPE Source: RCLCO Page 52 of 89 City of Georgetown | Market Overview | 3/1/2022 | 25 DEMAND DRIVERS Page 53 of 89 City of Georgetown | Market Overview | 3/1/2022 | 26 POPULATION TRENDS Source: RCLCO, American Community Survey ►Going forward, the number of adults under the age of 30 is projected to level out, if not decrease slightly. ►At the same time, significant population growth is expected to occur between the ages of 30 and 49. The number of people in this age bracket is projected to grow by 9.7% (8.1 million people) over the next 10 years. ►Likewise, the number of people over the age of 65 is projected to grow by 32.3% (17.2 million people). 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 2010 2019 2029 8.1 Million Additional People Between The Ages Of 30 and 49 17.2 Million Additional People Over The Age of 65 Historical, Current, and Projected Population by Age United States; 2010, 2019, 2029 (p) Page 54 of 89 City of Georgetown | Market Overview | 3/1/2022 | 27 HOUSING AFFORDABILITY Source: US Census Bureau; RCLCO While lifestyle shifts have impacted the number of households purchasing homes,the continued decrease in housing affordability has played a major role as well.The median sales price for a home in the U.S.has increased steadily since the Great Recession,while incomes have grown at a slower rate.In 2020,the median home price is 5 times higher than the median income in the U.S.,a significant change from the average of about 4.0x from 1986-2000.The relative unaffordability of homeownership has pushed potential homeowners –especially younger families who desire a single-family style of living environment but can’t afford ownership –towards SFR product. Home Price to Income Ratio and Median Sales Price United States; 1986-2020 0 1 2 3 4 5 6 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Ho m e P r i c e t o I n c o m e R a t i o Me d i a n S a l e P r i c e Median Sale Price Home Price to Income Ratio Page 55 of 89 City of Georgetown | Market Overview | 3/1/2022 | 28 SFR CUSTOMER OVERVIEW Source: American Community Survey; RCLCO Single family renters are more likely to be between the ages of 35 and 64 and have children than traditional multifamily renters 11% 58% 31% 17% 46% 37% 0%10%20%30%40%50%60% 65+ 35-64 Under 35 Multifamily Renters Single-Family Renters 15% 37% 48% 5% 25% 70% 0%10%20%30%40%50%60%70% 3+ 1-2 None Multifamily Renters Single-Family Renters Age Groups by Rental Type United States; 2019 Number of Children by Rental Type United States; 2019 Page 56 of 89 City of Georgetown | Market Overview | 3/1/2022 | 29 INCOME AND COST COMPARISON ►The median single-family homeowner in the US with a mortgage spends around $2,200 per month on their housing ►The median single-family renter spends $1,660 per month on rent and utilities ►The median household income for new single-family homeowners is $114,000, over 48% higher than the median income for single-family renters -$77,000. ►The modest costs of single-family rentals means they are often occupied by younger households than owner-occupied homes. $0 $500 $1,000 $1,500 $2,000 $2,500 New Single-Family For Sale New Single-Family Rentals New Multifamily Rentals $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 New Single-Family For Sale New Single-Family Rentals New Multifamily Rentals Median Monthly Housing Costs by Housing Type United States; 2019 Median Household Income by Housing Type United States; 2019 Source: U.S. Census Bureau; American Community Survey; Joint Center for Housing Studies Harvard University; RCLCO Page 57 of 89 City of Georgetown | Market Overview | 3/1/2022 | 30 SUPPLY CONDITIONS Page 58 of 89 City of Georgetown | Market Overview | 3/1/2022 | 31 OPPORTUNITY SIZE Source: U.S. Census Bureau; American Community Survey; Joint Center for Housing Studies Harvard University; CBRE; RCLCO 16 MILLION SFR HOMES IN THE UNITED STATES AND OWNERSHIP IS HIGHLY FRAGMENTED ►89% of single-family rentals are owned by small investors who own 1-5 single-family rental homes, presenting a market consolidation opportunity for investors and operators. ►RCLCO expects continued consolidation throughout the industry, particularly in large, urban markets where barriers to entry are high, home values are high, and cap rates continue to compress. 140.8 MM Total U.S. Housing Units 125.9 MM Total Occupied Households 42 MM Renter Occupied Households 22 MM Single- Family Rentals Key metrics of the over 22 million single-family rentals: Median monthly housing cost: $1,666 Median housing cost as % of income: 26% Median size of home (square feet): ~ 1,200 <2% 5% 5% 11% 77% 100+ (Institutional) 11 to 100 6 to 10 3 to 5 1 to 2 Percentage of Total U.S. Single-Family Rental Properties by Portfolio Size Page 59 of 89 City of Georgetown | Market Overview | 3/1/2022 | 32 SUPPLY GROWTH ►Since the 1980’s, household formation has remained relatively constant, with the United States seeing roughly 1M-1.5M new households formed each year; however, the number of housing units delivered each year has fluctuated significantly. ►Over the past cycle (2009-2019), there has been a persistent lack of new single-family housing deliveries, but household formations remain strong. Although construction activity has increased annually since 2009, it remained below long-term levels and was not sufficient to meet the pent-up demand caused by demographic growth. ►With a lack of new deliveries and stable demand, home prices have gone up and demand for single-family rental product has followed. Housing Starts and Household Formations United States; 1986-2021 (p) 0 500 1,000 1,500 2,000 2,500 0 500 1,000 1,500 2,000 2,500 (T h o u s a n d s ) (T h o u s a n d s ) Single-Family Multifamily New Households Source: U.S. Census Bureau; Moody’s Analytics; RCLCO Page 60 of 89 City of Georgetown | Market Overview | 3/1/2022 | 33 FORECLOSURES Source: Bloomberg; Federal Reserve; Statista; Federal Housing Finance Agency; RCLCO ►During the Great Recession, the foreclosure rate peaked at 2.23%, and since then has steadily declined to a rate of 0.16% in 2020 ►Foreclosures during the recession brought both significant supply and demand additions to the single-family rental market ►The Federal Housing Finance Agency (FHFA) extended the moratorium on foreclosures by Fannie Mae and Freddie Mac through July 31st, 2021, and announced forbearance for affected borrowers Single Family Rentals 60%Family 15% Apartments 25% Foreclosure Rate United States; 2005-2020 Housing Type of Households After Foreclosure United States; 2020 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Page 61 of 89 City of Georgetown | Market Overview | 3/1/2022 | 34 SINGLE-FAMILY RENTAL SUPPLY GROWTH ►The delivery of single-family rental units has steadily increased over the last decade. ►In 2020 there were an estimated 49,000 single-family rental starts, up greatly from the all time low in 2009 of only 14,000 starts. ►However, single-family rentals have yet to be more than 5% of total housing construction; despite the fact that single-family rentals have the ability to provide housing at modest costs that are generally difficult to serve with new construction. 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 0 10 20 30 40 50 60 (T h o u s a n d s ) Single-Family Rental Housing Starts Share of Total Housing Starts Single-Family Rental Housing Starts United States; 1986-2020 Source: U.S. Census Bureau; American Community Survey; Joint Center for Housing Studies Harvard University; RCLCO Page 62 of 89 City of Georgetown | Market Overview | 3/1/2022 | 35 CHARACTERISTICS OF SFR HOUSING STOCK Source: National Rental Home Council; U.S. Census Bureau; American Community Survey; Joint Center for Housing Studies Harvard University; RCLCO ►Single-family rental units are most likely to attract young, modest-income households with children »As such, 77% of new single-family rentals offer three or more bedrooms ►New single-family rentals are predominantly built in low-and moderate-density areas, such as suburban communities ►In 2020, 59% of new single-family rental tenants were relocating from urban areas. ►Unsurprisingly, most single-family rentals mirror single-family homes built-for-sale, in terms of size, location, and the types of households they attract. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% New Single-Family For Sale New Single-Family Rentals New Multifamily Rentals Studio/1 2 3 or More 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% New Single-Family For Sale New Single-Family Rentals New Multifamily Rentals Lowest 2nd 3rd Highest Bedroom Count by Housing Type United States; 2019 Household Density by Housing Type United States; 2019 Page 63 of 89 City of Georgetown | Market Overview | 3/1/2022 | 36 BFR PRODUCT TYPES Source: Google Images; RCLCO IN MOST METROPOLITAN AREAS, THERE IS AN OPPORTUNITY TO DELIVER A VARIETY OF PRODUCT TYPES, HEAVILY DEPENDENT UPON SUBMARKET AND CUSTOMER SEGMENTATION Product Type Visual General Pricing Neighborhood Location Development Strategy Key Examples & Geographic Focus Suburban SFD Discount to garden apartments, varies by unit size Greenfield Lifestyle Suburb Greenfield Value Suburb Provide traditional single family product in outlying suburbs or in MPCs. located in areas with good school districts, proximate to other single family housing. AHV Communities Sun Belt Markets Suburban SFA Varies, but typically slight premium (5% to 10%) over garden apartments Greenfield Lifestyle Suburb Middle-Income Suburb Provide smaller, lower-priced single family product in outlying suburbs or in MPCs. BB Living Sun Belt Markets Detached Multifamily Significant premium (20%+) over garden apartments Greenfield Lifestyle Suburb Middle-Income Suburb Alternative to multifamily apartments,providing additional privacy and space at a similar price point NexMetro, Christopher Todd, Bungalows Sun Belt Markets Urban/Suburban Infill SFA or Small- Lot SFD Varies, but typically slight premium (5% to 10%) over garden apartments Stable Urban Neighborhood Stable Suburb Located in in-town locations just outside of the urban core offering high-quality product for lifestyle renters RedPeak Platt Park Townhomes National Urban Rowhome/SFA Varies significantly by location Emerging Economic Center High End Urban & Suburban Located in urban core locations, likely in markets where high- density construction isn’t feasible National Page 64 of 89 City of Georgetown | Market Overview | 3/1/2022 | 37 APPEAL OF BFR PRODUCT Source: RCLCO; CBRE BFR APPEALS TO A WIDE VARIETY OF HOUSEHOLDS, FROM EXISTING SINGLE-FAMILY RENTERS, MULTIFAMILY RENTERS, AND EXISTING OR PROSPECTIVE HOMEOWNERS Multifamily Renters ►More Space ►Potential for Private Outdoor Space and Attached Garage ►Increased Privacy ►Neighborhood Living Single-Family Renters ►Amenities ►New Construction Existing and Prospective Homeowners ►Ease of Renting ►Increased Flexibility of Renting Page 65 of 89 City of Georgetown | Market Overview | 3/1/2022 | 38 RENTAL HOUSING SUPPLY TRENDS -GEORGETOWN Source: Axiometrics, CoStar, Property Websites; RCLCO*Average occupancy excludes properties currently in lease-up Page 66 of 89 City of Georgetown | Market Overview | 3/1/2022 | 39 RENTAL HOUSING SUPPLY OVERVIEW Source: Axiometrics, CoStar, Property Websites; RCLCO Summary of Recently Built Apartment Communities Competitive Market Area; January 2022 *Average occupancy excludes properties currently in lease-up MAP KEY COMMUNITY NAME PRODUCT YEAR BUILT MARKET RATE UNITS OCC. RATE AVG. SIZE (SF) AVG. ASKING RENT AVG. ASKING $/SF 1 The Carroll at Rivery Ranch Multifamily 2019 360 95%1,046 $1,691 $1.62 2 Bexley Wolf Ranch Multifamily 2018 332 97%928 $1,641 $1.77 3 Retreat at Wolf Ranch Multifamily 2018 303 96%921 $1,729 $1.88 4 Williamson At The Overlook Multifamily 2019 270 96%931 $1,630 $1.75 5 Rivers Edge Single-Family 2018 92 95%1,572 $2,434 $1.55 6 Linea Stillwater Single-Family 2020- 2022 230 75%1,534 $2,301 $1.50 7 Villages of Georgetown Townhome 2019 438 94%1,075 $1,929 $1.79 8 Reveal 54 Townhome 2020 416 95%1,055 $1,818 $1.72 AVERAGE 2019 305 95%1,074 $1,832 $1.71 MULTIFAMILY AVERAGE 2019 316 96%961 $1,674 $1.74 BFR AVERAGE 2019 294 95%1,197 $2,002 $1.67 Map of Recently Built Apartment Communities Competitive Market Area; January 2022 Page 67 of 89 City of Georgetown | Market Overview | 3/1/2022 | 40 PIPELINE . Source: Axiometrics; Property Websites; CoStar; Community Impact; RCLCO Under Construction and Planned Rental Communities Competitive Market Area; January 2022 MAP KEY PROJECT PRODUCT DEVELOPER EST. OPENING TOTAL UNITS UNDER CONSTRUCTION 1 Allora North Georgetown Multifamily Trammell Crow Residential 2023 378 2 Alta Austin Avenue Multifamily Wood Partners 2022 312 3 Georgetown Heights Townhome Wan Bridge 2023 100 4 Vida Direct-Access Garages Broaddus 2023 124 5 The Summit Lofts Multifamily Novak Brothers 2022 257 6 MAA Windmill Hill Multifamily Mid-America Apartment 2022 350 7 Chapel Hill Multifamily Abacus Capital Group 2023 324 8 Ascend Westinghouse Multifamily Novak Brothers 2022 300 9 The Caroline Multifamily MORGAN 2023 336 2,481 PLANNED/PROPOSED 10 Alta Berry Creek Multifamily Not Available N/A 300 11 Berry Creek Crossing Multifamily Not Available N/A 650 12 Wolf Lakes Village Multifamily Not Available 2024 336 13 Johnson Place Multifamily Not Available N/A 0 14 Whitney Crossing Multifamily Not Available N/A 440 1,726 Page 68 of 89 City of Georgetown | Market Overview | 3/1/2022 | 41 ALTERNATIVE MODELS FOR SENIOR HOUSING Cooperative Communities Applewood Pointe 62+ Senior Cooperatives Minnesota & Colorado Co-Living Communities Vitality Living “Quad” Style Cottages Madison, Georgia Intergenerational Living Bridge Meadows Affordable Senior Living Portland, Oregon Page 69 of 89 City of Georgetown | Market Overview | 3/1/2022 | 42 DEVELOPMENT ECONOMICS Page 70 of 89 City of Georgetown | Market Overview | 3/1/2022 | 43 Costs Parking $5M RESIDUAL LAND VALUE –HYPOTHETICAL (IDEAL) Revenues Capitalized Value $50M Entitlements $2M Site Costs $1M Construction $20M Financing $2M Profits $3M Residual Land Value = $16M . . .Higher than the $10M for the existing asset Marketing $1M Cost to Deliver $34M Page 71 of 89 City of Georgetown | Market Overview | 3/1/2022 | 44 IN REALITY, PROJECTS OFTEN LOOK LIKE THIS Revenues Costs Capitalized Value of What Gets Built Potential for Premium Pricing Land Entitlements Site Costs Construction Financing ProfitsFeasibility Gap Parking Page 72 of 89 City of Georgetown | Market Overview | 3/1/2022 | 45 RESIDUAL LAND VALUE COMPARISON: FOR-RENT RESIDENTIAL URBAN GARDEN WITH SURFACE PARKING DONUT/WRAP WITH STRUCTURED PARKING WOODFRAME MIDRISE OVER PODIUM PARKING CONCRETE MIDRISE ABOVE RETAIL WITH UNDERGROUND PARKING Dwell Cherry Hill Cherry Hill, NJ Windsor at Glenridge Sandy Springs, GA Galvan at Twinbrook Rockville, MD Madox Jersey City, NJ Residual Land Value Per Land Acre $1,083,333 ($500,000)($2,800,000)($20,300,000) Does Land Support Development?YES NO NO NO Does Land Support Redevelopment?YES NO NO NO Rent Level Needed to Support Development $1.20 $1.50 $1.55 $1.90 Notes Currently the primary product type being built because it is the only profitable option at today’s market rents and costs Will likely become feasible in the mid and long-term as rents increase; in the meantime, can be built if structured parking is fully subsidized Will likely become feasible in the long-term as rents increase; can be introduced in the mid-term if structured parking is fully subsidized Unlikely to be supported by rents in this location Page 73 of 89 City of Georgetown | Market Overview | 3/1/2022 | 46 RESIDUAL LAND VALUE COMPARISON: OFFICE 4-STORY WOOD-FRAME WITH SURFACE PARKING 4-STORY WOOD-FRAME WITH STRUCTURED PARKING 4-STORY WOOD-FRAME WITH PODIUM PARKING CONCRETE MID-RISE ABOVE RETAIL Connection Park Irving,TX One Mosaic Fairfax, VA 1616 Center Charlotte, NC Skyline Terrace Athens, GA Residual Land Value Per Land Acre $1,025,000 ($1,086,000)($2,900,000)($20,667,000) Does Land Support Development?YES NO NO NO Does Land Support Redevelopment?YES NO NO NO Rent Level Needed to Support Development $23-$25 $28-$30 $28-$30 $36-$40 Notes Currently the only form of office development supported by market rents, which explains why most office development in Utah County is limited to surface parking Can be supported if the cost of parking is subsidized; however, it is unclear if there is demand for a building of this size in the near or mid-term Can be supported if the cost of parking is subsidized; however, it is unclear if there is demand for a building of this size in the near or mid-term Unlikely to be supported by market rents outside of prime locations like Downtown Salt Lake City Page 74 of 89 City of Georgetown | Market Overview | 3/1/2022 | 47 DEVELOPMENT CONCEPTS –WALKABLE & MIXED-USE COMMUNITIES Northline 116-Acre Mixed-Use Planned Development; Leander, TX The District 65-Acre, $1M+SF Mixed-Use Planned Development; Round Rock, TX Page 75 of 89 City of Georgetown | Market Overview | 3/1/2022 | 48 DEVELOPMENT CONCEPTS –WALKABLE & MIXED-USE COMMUNITIES Bell District 50-Acre Mixed-Use Redevelopment; Cedar Park, TX Brick and Mortar District –Plum Creek 138-Acre, Mixed-Use District; Kyle, TX Page 76 of 89 City of Georgetown | Market Overview | 3/1/2022 | 49 MPC TRENDS Page 77 of 89 City of Georgetown | Market Overview | 3/1/2022 | 50 PEOPLE ARE GOING TO SUBURBS FOR REASONS BEYOND COVID-19 ►Demographics are driving much of the trend, not COVID-19 ►Pandemic is accelerating moves that people were already planning to make (to suburbs, rural areas, or relocations) ►Many are using low interest rates to “trade up” on housing, not necessarily flee density ►Density is relative to current living arrangements ►Seeking more space or better space to accommodate working from home is related to functionality, not density ►More functional space to accommodate home working might mean moving further out ►Lack of need to be in the office frequently allowing for commute sensitive households to locate elsewhere (even across state/country lines) ►People still want conveniences, regardless of location Page 78 of 89 City of Georgetown | Market Overview | 3/1/2022 | 51 DEMOGRAPHICS DRIVING MUCH OF THE MOVE TO THE SUBURBS Source: United States Census Bureau; 2017 National Population Projections Tables; American Community Survey 1 -Year Estimates 0% 10% 20% 30% 40% 50% 60% 70% 80% 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 Projected Population by Age, 2020–2030 2020 2030 % of Households with Children (2017 ACS Estimate) Page 79 of 89 City of Georgetown | Market Overview | 3/1/2022 | 53 HOME-RELATED FACTORS 55+ WANTS LOWER MAINTENANCE, SMALLER HOME; 35 –54 WANTS LARGER, HIGHER QUALITY HOME 0%10%20%30%40%50% Want larger yard Want larger house Want higher quality home Want smaller home Want lower maintenance home 55+ 0%10%20%30%40%50%60% Want smaller home Want lower maintenance home Want larger yard Want higher quality home Want larger house 35-54 Sources: RCLCO Consumer Research; 2019 Home Purchaser Data Page 80 of 89 City of Georgetown | Market Overview | 3/1/2022 | 57 TOP COMMUNITY AMENITY IMPORTANCE BY AGE Under 35 35-54 55+ 1 Fitness centers, such as weights, yoga studio, trainers, and classes Fitness centers, such as weights, yoga studio, trainers, and classes Guard/ secured gated entry 2 Guard/ secured gated entry Guard/ secured gated entry Fitness centers, such as weights, yoga studio, trainers, and classes 3 Trails Trails Maintenance free for an additional monthly fee 4 Resort pool (lounge)Resort pool (lounge)Trails 5 Package receiving location / service / Amazon locker Maintenance free for an additional monthly fee Resort pool (lounge) 6 Dog park Dog park Art and culture, such as concerts, food, wine, art, educational trips, etc. 7 Art and culture, such as concerts, food, wine, art, educational trips, etc.Pocket Parks Farmers market 8 Children's pool Art and culture, such as concerts, food, wine, art, educational trips, etc. Virtual services, such as community intranet, virtual education,etc. 9 Sports courts, such as pickleball, bocce, basketball, sports fields, tot lots, tennis courts, etc. Sports courts, such as pickleball, bocce, basketball, sports fields, tot lots, tennis courts, etc.Dog park 10 Maintenance free for an additional monthly fee Package receiving location / service / Amazon locker Lap pool Sources: RCLCO Consumer Research; 2019 Home Purchaser Data Page 81 of 89 City of Georgetown | Market Overview | 3/1/2022 | 63 APPENDIX Page 82 of 89 AUSTIN LA ORLANDO DC 100 Congress Avenue Suite 2000 Austin, TX 78701 11601 Wilshire Blvd Suite 1650 Los Angeles, CA 90025 964 Lake Baldwin Ln Suite 100 Orlando, FL 32814 7200 Wisconsin Ave Suite 1110 Bethesda, MD 20814 Contact Name Job Title P: (000) 000-0000 E: NAME@RCLCO.COM W: RCLCO.COM Page 83 of 89 Housing Tour Project Details • The Courtyard: o Development Type: Small Multi-family development (rental) o Development Size: 0.33 acres o Zoning: Mixed Use Downtown o Number of Units: 12 o Platting Status: 1 legal lot • Old Mill o Development Type: Multi-unit attached development (units sold separately) o Development Size: 18.8 acres o Zoning: MF-1 o Number of Units: 99 o Platting Status: Not Platted • Davidson Ranch o Development Type: Duplex and Single Family o Development Size: 61.744 acres o Zoning: Two Family (Duplex) and RS- Single Family Residential o Number of Units: 241 lots total (174 single-family, 57 two-family, and 11 open space lots) o Platting Status: Platting in Phases • Saddlecreek o Development Type: Residential Development with multiple different housing types o Development Size: 353 acres o Zoning: PUD with base zoning: ▪ RS – Residential Single Family (for single family detached residential) ▪ TH - Townhouse ▪ MF-2 – Multi Family (for attached Multi Family) ▪ MF-1 – Multi Family ▪ C-1 – Local Commercial ▪ BP – Business Park (for SH 130 fronting lands) o Number of Units: ▪ Multi Family (MF-2) Maximum of 350 units ▪ Townhouse and Cluster Product (TH/MF-1) Maximum of 475 units ▪ Single Family Detached (RS) Maximum of 1,100 units o Platting Status: Platting in Phases o Special District: MUD (1st in city MUD) • Carlson Cove o Development Type: Single Family Residential o Development Size: 136 acres Page 84 of 89 o Zoning: The first four phases of development were platted and developed under RS zoning. Additional four phases for the Carlson Place South tract were rezoned to PUD to allow for the following: o Two minimum lot widths: • 42-foot wide lots (50%) • 47-foot wide lots (50%) o Minimum lot depth: 125 feet o Minimum lot area: 5,000 sq.ft. o Relief from the maximum 1,320 feet intersection spacing requirements along the north and south property lines o Number of Units: 599 SF lots o Platting Status: individual platted lots platted in 8 phases of platting Riverhill Subdivision o Development Type: Single Family Residential o Development Size: 28 acres o Zoning: PUD – part of the GTown 120 pud with zoning districts of ▪ C3- General Commercial ▪ RS- Residential Single Family ▪ MF- Multi-family o Number of Units: 103 units o Platting Status: individual platted lots platted in 1 phase Stillwater Subdivision o Development Type: Single Family Rental Neighborhood o Development Size: 71 acres o Zoning: Single Family Residential o Number of Units: 230 units o Platting Status: 4 Phases individual platted lots Rivers Edge o Development Type: Single Family Rental Neighborhood o Development Size: 25 acres o Zoning: RS- Single Family Residential o Number of Units: 92 o Platting Status: Individual Platted Lots in 1 phase Page 85 of 89 Parkside Crossing o Development Type: Multi-unit attached development (units sold separately) o Development Size: 12 acres o Zoning: MF-1 Low Density Residential o Number of Units: 89 units o Platting Status: Not platted Atkinson Ranch o Development Type: Possible MUD (full application not submitted at this time) o Development Size: 531 acres o Zoning: annexation and zoning would be required prior to proceeding with MUD request. Proposed land uses: ▪ Multi-family—15 acres ▪ Commercial – 16 acers ▪ Duplex- 44 acres ▪ Single Family- 305 acres ▪ Townhomes- 20 acres Parmer Ranch o Development Type: ETJ MUD o Development Size: 445 acres o Zoning: ETJ. Land uses include: ▪ Single Family 1,018 units ▪ Cluster Product 145 units ▪ Mixed Use—88 acres- ** Up to 30% of the gross land may be used for multi-family units (up to 525 units) o Number of Units: 1688 units Ragsdale Ranch o Development Type: Possible MUD o Development Size: 336 acres o Zoning: annexation and zoning would be required prior to proceeding with MUD request. Proposed land uses: Page 86 of 89 o Number of Units: 1600 units Crescent Bluff o Development Type: ETJ MUD o Development Size: 287 acres o Zoning: ETJ o Number of Units: 784 units ▪ Single-family units- 710 units with no fewer than five (5) different lot sizes; ▪ Townhomes-74 units o Platting Status: 11 phases of development Riverview aka Shadow Canyon o Development Type: In City MUD o Development Size: 278 acres o Zoning: PUD with RS base zoning ▪ In order to ensure product diversity, the following percentages shall apply: • A maximum of 20% of the total lots may have lot widths l ess than 50 feet • A minimum of 30% of the total lots shall have lot widths of 60 feet or larger o Number of Units: 600 units o Platting Status: 7 phases Wolf Ranch o Development Type: In City MUD o Development Size: approximately 1,120-acre area (original PUD + Guy Tract) o Zoning: PUD to allow: PUD with the following base districts and allowed uses: Land Use Category Base District Permitted Uses Residential RS RS, MU Medium Density Residential RS RS, TF, TH, MF-1, CN, C-1, MU High Density Residential MF-2 RS, TF, TH, MF-2, CN, C-1, MU Page 87 of 89 Commercial C-3 CN, C-1, C-3, OF, BP, MU Elementary School RS RS, CN, C-1, MU o Number of Units: The PUD Excluding Phase 1 (north of Hwy 29) , at full buildout, will contain approximately 2,200-2,300 detached single family homes; 1,000-1,100 multifamily units; two family dwellings and townhouses; and 20 acres of commercial development. Page 88 of 89 Housing Tour Untitled layer The Courtyard Old Mill Davidson Ranch Road Lennar at Saddlecreek Carlson Cove Riverhill Stillwater Rivers Edge Parkside Crossing Atkinson Parmer Ranch Ragsdale Tower Road Crescent Bluff Drive Riverview by D.R. Horton Wolf Ranch Page 89 of 89