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HomeMy WebLinkAboutAgenda_HAB_06.20.2016Notice of Meeting for the Housing Adv isory Board of the City of Georgetown June 20, 2016 at 3:30 PM at Historic Light and Waterworks Bldg 406 W. 8th Street Georgetown, TX 78626 The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Legislativ e Regular Agenda A Welc o me to gues ts . B Co nsideration and possible actio n to approve the minutes fro m the May 16, 2016 meeting. C Dis cus s ion and pos s ible actio n to recommend ap p ro val o f a Resolution o f S upport for 4% Hous ing Tax Cred its and a Two Times Res o lutio n for the reno vatio n o f the Oaks at Georgetown Ap artments, loc ated at 550 22nd Street.--Jennifer C. Bills, Hous ing Coordinator D Dis cus s ion with Karen Sheld o n, Pres id ent o f the Geo rgeto wn Chamber of Commerc e and Co nc hita Guzman, Ec o nomic Development Program Manager for the City of Georgetown. E Dis cus s ion the the s c hedule for the 2016 Ho us ing Ad visory Board Work P lan.--Jennifer C. Bills, Ho us ing Co o rd inator F Dis cus s ion on the current proc es s for Ho us ing Tax Cred it Resolution req ues ts and the upc o ming revis ion of this pro c es s .--Jennifer C. Bills, Ho using C o o rd inato r G Up d ate on the 9% Tax Cred it ap p lications for Geo rgeto wn.--Jennifer C. Bills , Ho using Coordinator H Video viewing and d is cus s io n: Why Mixed Income Hous ing? David Fink at T EDxBus hnell Park I Up coming items : The next regular meeting of the HAB will be July 18, 2016 at 3:30 p .m. The b o ard will disc uss p o s s ib le revis ions for the Georgetown Ho us ing Tax Cred it p ro cess. Adjournment CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2016, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 1 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Cons id eration and p o s s ib le ac tion to approve the minutes from the May 16, 2016 meeting. ITEM SUMMARY: Please s ee the attac hed d raft minutes. FINANCIAL IMPACT: None. SUBMITTED BY: ATTACHMENTS: Description Type Minutes _HOUAB_05.16.2016 Backup Material Page 2 of 37 Housing Advisory Board Page 1 Minutes May 16, 2016 City of Georgetown, Texas Housing Advisory Board Minutes May 16, 2016, at 3:30 p.m. Historic Light and Waterworks Building, 406 W. 8th Street Georgetown, Texas 78626 Members present: Brenda Baxter, Vice Chair; Nikki Brennan, Joseph Gonzales, Randy Hachtel and Harry Nelson Members absent: Richard Glasco, Chair; Marion Goforth Staff present: Jennifer Bills, Housing Coordinator; Karen Frost, Recording Secretary Call to Order by the Vice-Chair at 3:34 p.m. and reading of the opening remarks. A. Welcome to guests. There were no guests. Legislative Regular Agenda B. Consideration and possible action to approve the minutes from the April 18, 2016 meeting. Motion by Brennan, second by Hachtel to approve the minutes as presented. Approved 4 – 0 – 3. (2 absent and Gonzales not present at this time.) C. Discussion and possible action on review of the City Council Workshop presentation on the Housing Advisory Board 2016 Work Plan – Jennifer C. Bills, Housing Coordinator Bills presented the Powerpoint presentation that was to be taken to Council. There are three work plan proposals that are going forth: 1. Revise Housing Tax Credit resolution process; 2. Update the Housing Element; and 3. Feasibility of Housing Tools The Board was appreciative of the presentation and were invited to come to the Council meeting to hear the results. Motion by Hechtel, second by Gonzales to adjourn. Meeting was adjourned at 4:16 pm. __________________________________ _______________________________________ Approved, Brenda Baxter, Vice-Chair Attest, Nikki Brennan, Secretary Page 3 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Disc ussion and p o s s ib le ac tion to rec o mmend approval of a Res o lutio n of Sup p o rt fo r 4% Ho using Tax Credits and a Two Times Resolution for the renovation of the Oaks at Geo rgeto wn Apartments , lo cated at 550 22nd Street.--Jennifer C. Bills , Ho using C o o rd inato r ITEM SUMMARY: See the attac hed s taff report. FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer C. Bills , Hous ing Co o rd inato r ATTACHMENTS: Description Type Oaks at Georgetown Staff Report Cover Memo Exhibit A--Location Map Backup Material Exhibit B--Aerial Map Backup Material Exhibit C--Oaks at Georgetown Application Packet Backup Material Exhibit D--Site Plan & Elevations Backup Material Exhibit E--Floor Plans Backup Material Page 4 of 37 Housing Advisory Board Staff Report Oaks at Georgetown Apartments Page 1 of 3 Two time and Support Resolutions 2016 Meeting Date: June 20, 2016 Staff: Jennifer C. Bills, AICP, LEED AP, Housing Coordinator Report Date: June 16, 2016 Item Description Consideration and possible action to recommend approval of a Resolution of Support for 4% Housing Tax Credits and a Two Times Resolution for the rehabilitation of 192 units of the Oaks at Georgetown Apartments, located at 550 W. 22nd Street.--Jennifer C. Bills, AICP, LEED AP, Housing Coordinator Staff Recommended Motion Approval a resolution of support and two times resolution for the Housing Tax Credit application.  The Oaks of Georgetown is an existing apartment complex that has provided affordable housing for residents of Georgetown since 1997.  The complex will be 20 years old by the time the renovations will occur. Many energy efficiency and Americans with Disabilities improvements are available which will enhance the quality of life of the residents and maintain a quality asset for the community.  Without the financing, the improvements will not be completed. Item Details Project Name: Oaks at Georgetown Apartments Project Address: 550 W. 22nd Street Total Acreage: 10.532 acres Legal Description: Outlot Division A, Block 47(pt), 8(pt) Applicant: Highridge Costa Housing Partners, LLC Property Owner: Oaks at Georgetown, L.P. Contact: Simon Fraser, Highridge Costa Housing Partners Existing Zoning: High Density Multifamily (MF-2) and General Commercial (C-3) Districts Tax Exempt: No Applicant’s Request Highridge Costa Housing Partners, LLC is requesting resolutions of support and acknowledgment of the two times rule from the Georgetown City Council to apply for the Housing Tax Credit (HTC) program through the Texas Department of Housing and Community Affairs (TDHCA). Page 5 of 37 Housing Advisory Board Staff Report Oaks at Georgetown Apartments Page 2 of 3 Two times and Support Resolutions 2016 Financing The applicant is seeking to secure financing through the Low Income Housing Tax Credit Program to receive 4% housing tax credits. Projects must meet a minimum score to be eligible for consideration using the criteria set by TDHCA in this non-competitive process. This project is a rehabilitation project that is ensuring the continuation of quality existing affordable units. The original allocation ensured the development would be affordable through 2022. With a new allocation, this will extend the affordability to 2047. 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 application within Georgetown is required to secure a Resolution of Support in order to apply. The 192 units of the development have been part of the Housing Tax Credit program since 1997, so approval of this application will not increase Georgetown’s per capita ratio. Site Information This property is located north of 22nd Street, between Railroad Avenue and Leander Street (Exhibit A). The existing 192-unit complex was constructed in 1997 through the Housing Tax Credit program. This was the first housing tax credit property to be constructed in Georgetown. 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 energy efficient appliances, low flow faucets and toilets, and water-conserving irrigation will be installed on site. A full list of improvements will be provided upon completion of the community’s Physical Needs Assessment (PNA). Affordability The units are available to households in the following income brackets  At or below 60% of Area Median Income: 132 units  At or below 50% of Area Median Income: 58 units  Units for onsite managers: 2 units None of the units are affordable to households that make less than 30% AMI. Page 6 of 37 Housing Advisory Board Staff Report Oaks at Georgetown Apartments Page 3 of 3 Two times and Support Resolutions 2016 Unit breakdown:  48 – One Bedroom, 544-644 sq. ft. ($677 – 802 per month)  64 – Two Bedroom, 880 sq. ft. ($809 – 959 per month)  80 – Three Bedrooms, 1,060 sq. ft. ($900 – 1,085 per month) Financial Impact to the City The Oaks at Georgetown Apartments has paid all property taxes since construction in 1997. In 2016, the total taxes to all jurisdictions is approximately $172,000. As property values continue to increase, some exemptions may be sought to maintain the affordability of the units. The Housing Tax Credits are funded through the federal budget and allocated by TDHCA, so they have no impact on the City of Georgetown budget. Attachments Exhibit A – Location Map Exhibit B – Aerial Map Exhibit C – Application Packet Exhibit D – Site Plan & Elevations Exhibit E – Floor Plans Submitted By Jennifer C. Bills, AICP, LEED AP, Housing Coordinator Page 7 of 37 RAILROAD AVE L E A N D E R R D W 1 9 T H S T L E A N D E R S T S C E N I C D R W 1 8TH S T W 2 1 S T S TKENDALL ST W 2 2 N D ST H A R T S T S AUSTIN AVE Location M apOaks at Georgetown ApartmentsExhibit A ¯ Coordinate System: Texas State Plane/Central Zone/NAD 83/US FeetCartographic Data For General Planning Purposes Only 0 510 1,020 Feet Le ge ndSiteParcelsCity Limits Page 8 of 37 RAILROAD AVE L E A N D E R R D W 2 2 N D S T L E A N D E R S T W 2 1 S T S T H A R T S T KENDALL ST Location M apOaks at Georgetown ApartmentsExhibit A ¯ Coordinate System: Texas State Plane/Central Zone/NAD 83/US FeetCartographic Data For General Planning Purposes Only 0 340 680 Feet Le ge ndSiteParcelsCity Limits Page 9 of 37 Oaks at Georgetown – A Highridge Costa Property A Proposed 2016 4% Tax Credit Bond Application Presented to the City of Georgetown Housing Advisory Board June 20, 2016 1 Page 10 of 37 Site Location: 522 West 22nd Street, Georgetown, Texas 2 Page 11 of 37 Property and Unit Description: Oaks at Georgetown awarded in 1996 and development placed in service in 1997. Total Number of Units: 192; Unit Mix: 48 One Bedroom/One Bath 64 Two Bedroom/Two Bath 80 Three Bedroom/Two Bath 3 Page 12 of 37 Property Description Cont. Since 2014, Property Occupancy levels are consistently high - 95.7%+ Currently, there are 6 employees on property. 4 Page 13 of 37 Proposed Development Improvements: Highridge Costa Development proposes to make important property improvements to the Oaks at Georgetown to improve its quality, market competitiveness, and extend its useful life throughout the its land use restriction. Specific Improvements include green building initiatives that will include energy efficient appliances; water conserving irrigation, and plumbing fixtures. A full list will be provided upon completion of the community’s Physical Needs Assessment (PNA) 5 Page 14 of 37 Current Unit Plans: 6 Page 15 of 37 Proposed Rental Rates by Unit and Income: No. Of Units Type Sq. Footage Income AMI Rent Utility Allowance Monthly Rent 18 1/1 544 50% 751 74 $677 18 2/2 880 50% 901 92 $809 22 3/2 1,060 50% 1,011 111 $900 30 1/1 644 60% 876 74 $802 46 2/2 880 60% 1,051 92 $959 56 3/2 1,060 60% 1,196 111 $1,085 *1 3/2 1,060 EX 1,250 0 $1,250 *1 3/2 1,060 EX 1,250 0 $1,250 *Manager Unit Rents are determined by TDHCA and HUD; Utility Rates are determined by the Local Housing Authority; Rents Increase over time. 7 Page 16 of 37 Current Architectural Elevations: 8 Page 17 of 37 Current Site Plan: 9 Page 18 of 37 Development and Management Company Overview: Current Ownership Structure Owner: Oaks Georgetown , LP 330 West Victoria Street Gardena, CA 90248 General Partner: Affordable Multi- Family, LLC 330 West Victoria Street Gardena, CA Equity Investor: Multi Housing Tax Credit Partners IV, LP Non-Profit Partner: Foundation of Affordable Housing Asset Manager: HCHP Management Proposed Ownership Structure Owner: Oaks Georgetown AR, LP 330 West Victoria Street Gardena, CA 90248 General Partner: Affordable Multi- Family, LLC 330 West Victoria Street Gardena, CA Equity Investor: TBD Non-Profit Partner: Foundation of Affordable Housing Asset Manager: HCHP Management 10 Page 19 of 37 Highridge Costa Housing Partners •HCHP is one of America’s leading developers, financiers and owners of apartment communities with a specific focus on affordable and mixed income family and senior markets. •Established in 1994 - 27,000 affordable units in 33 states and Puerto Rico •A-Z design, development, and financing of low-to-moderate income apartment communities •National developer/investor in affordable senior and workforce housing •Experienced in diverse property types 11 Page 20 of 37 Highridge Costa Properties 12 Page 21 of 37 Financial Overview: Sources of Funds Tax Credit Equity $7,066,059 Permanent Financing $13,504,579 Income during Construction $992,675 Seller Note $1,987,376 HCHP Dev. Note $2,740,923 Total Sources $26,291,612 Uses of Funds Acquisition & Pre Development $17,249,800 Base Construction $3,110,400 Financing & Soft Costs $1,825,690 Developer Fee $2,840,923 Operating Reserve & Lease-Up $1,264,799 Total Uses $26,291,612 13 Page 22 of 37 Financial Continued: Existing Land Use Restriction Agreement has an additional affordability period of 10 years after the initial 15 year Compliance Period ending 2022. The rehab of the community will extend the affordability period to 2047. The proposed rehab for Oaks at Georgetown will have a positive impact to the community by preserving a quality affordable rental housing community and creating higher energy efficiency. 14 Page 23 of 37 4% TDHCA Scoring Criteria Related to the City The 2 times and Support Resolution is required by TDHCA for points. 15 Page 24 of 37 Developer City Request: Highridge Costa Housing Partners respectfully requests the City’s Housing Advisory Board’s recommendation for approval to the City Council for the submission of the Oaks at Georgetown 4% Housing Tax Credit/Tax Exempt Bond Application to TDHCA June 20 Briefing to City Housing Advisory Board July 12 City Council Approval of 2 times and Support Resolution These improvements will not be made without this financing. 16 Page 25 of 37 17 Page 26 of 37 Page 27 of 37 Page 28 of 37 Page 29 of 37 Page 30 of 37 Page 31 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Disc ussion with Karen S heldon, President of the Georgetown Chamb er of C o mmerce and Conchita Guzman, Ec ono mic Develo p ment Pro gram Manager fo r the City o f Georgeto wn. ITEM SUMMARY: FINANCIAL IMPACT: None. SUBMITTED BY: Page 32 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Disc ussion the the s ched ule fo r the 2016 Hous ing Advis o ry Bo ard Work Plan.--Jennifer C. Bills , Hous ing Coordinator ITEM SUMMARY: At the May 24, 2016 City Counc il Works hop , the proposed 2016 Ho using Advis o ry Bo ard Work Plan was p res ented to the c o uncil memb ers . The Work Plan had three p ro ject areas. 1. Revis e the Ho us ing Tax Cred it Resolutio n p ro cess 2. Update the Ho us ing Element and the d raft Wo rkforc e Multifamily Loc ations S tud y 3. Feasibility of Hous ing To o ls City Counc il was receptive to all of thes e items . T he firs t two items have availab le funding, the third has b een p ut in as a b udget req uest for Fisc al Year 2017. As s uming the funding for the feasibility s tud y is ap p ro ved, belo w is the anticipated sc hedule fo r the next year. 2016 July Dis c us s revis io n to the Ho using Tax Credit resolution proc es s Augus t F inalize the draft Ho using Tax Credit proc es s to forward to City Counc il September Take HTC proc es s rec o mmend ations to City Co uncil R eview c o mp o nents o f the 2012 Hous ing Element Octo ber P ublis h the new proc es s in advanc e o f the p ublishing of the 2017 Qualified Allo catio n Plan in Dec ember. Dis c us s the s cope fo r the Hous ing Element and Wo rkforc e Multifamily Loc ations S tud y November-January Work the cons ultant, review data, c o nduct pub lic meetings 2017 February-March F inalize Hous ing Element up d ate R eview s c o p e for Hous ing Tools Feas ibility Study (if fund ed) April-June P res ent up d ated Hous ing Element to City Counc il Work with c o nsultant o n Feasib ility S tud y (if funded) July-Augus t P res ent Ho using Tools Feasibility S tud y to City Counc il (if funded) FINANCIAL IMPACT: Page 33 of 37 None. SUBMITTED BY: Jennifer C. Bills , Hous ing Co o rd inato r Page 34 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Disc ussion on the c urrent p ro cess fo r Ho using Tax Credit Res o lutio n req ues ts and the up coming revision o f this p ro ces s .--Jennifer C. Bills , Hous ing Coordinator ITEM SUMMARY: The b o ard will b e provid ed a p rinted c o p y the c urrent City of Geo rgeto wn p ro c es s , as well as the 2016 Qualified Alloc ation P lan fo r Ho using Tax Credits that was pub lis hed b y the Texas Dep artment o f Ho using and Community Affairs (T DHCA) for the 2016 s tate p ro cess. The b o ard will review these d o cuments and b ring s ugges tions for changes to the July HAB meeting. Staff will als o provide their s ugges ted changes with the July board p acket. FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer C. Bills , Hous ing Co o rd inato r Page 35 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Update on the 9% Tax Credit applic ations fo r Georgetown.--Jennifer C. Bills , Hous ing Co o rd inato r ITEM SUMMARY: FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer C. Bills , Hous ing Co o rd inato r Page 36 of 37 City of Georgetown, Texas Housing Advisory Board June 20, 2016 SUBJECT: Vid eo viewing and dis c ussion: Why Mixed Inc o me Ho using? David Fink at TEDxBushnell Park ITEM SUMMARY: FINANCIAL IMPACT: None. SUBMITTED BY: Jennifer C. Bills , Hous ing Co o rd inato r Page 37 of 37