January 8, 2009 Minutes (City Commission Room)
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MEMBERS PRESENT: |
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Marci Francisco, Curtis Harris, Quinn Miller, Julie Mitchell, Vern Norwood, Brenda Nunez, Aimee Polson, Patty Welty. |
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MEMBERS ABSENT: |
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None. |
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STAFF PRESENT: |
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Margene Swarts, Danelle Dresslar. |
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PUBLIC PRESENT: |
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Rebecca Buford, Haley Travis; Tenants to Homeowners. |
Welty called the meeting to order at 5:45 pm.
Introductions
Members, public and staff introduced themselves.
Approval of September 25, 2008 Minutes
Harris moved to approve the September 25, 2008 minutes with grammar correction. Norwood seconded the motion, which passed unanimously.
Hear presentation from Tenants To Homeowners, Inc. regarding a Housing Tax Credit Rehabilitation project application of Accessible Residential Options (ARO) units and consider recommendation to the City Commission to approve the application. (Attachments)
Swarts offered background on the project to the Committee and opened up the floor to Rebecca Buford from Tenants to Homeowners to present to the Committee the Tax Credit Housing Rehabilitation project.
Buford said that the way the program works is that Tenants to Homeowners, Inc. (TTH) will form a Limited Liability Corporation (LLC) with for-profit developers and investors and will apply for tax credits from the State of Kansas. The program is allowed by IRS legislation for non profits to use corporate money to fund affordable housing. Buford said that TTH had not done this type of program before because they have always done their own development. She stated that this particular project will be one that is very beneficial. She said that this will encompass a complete rehab of 20 low income handicap accessible apartments. These housing units already receive HUD grants, and the great thing about this program is that it already has Section 8 built into the project. Buford added that these particular units are from the 1980’s, and they have always been occupied to capacity. Buford said the management company managing the apartments did not maintain the units so there are a lot of issues and problems that rehab will correct.
Buford added that TTH can leverage over $2 million for the project in state grants and tax credit financing. All the updates to the units will include new kitchens, maintenance of full accessibility and increased energy efficiency. All units will be Energy-Star rated, which makes the housing even more affordable.
Buford said that TTH will manage and maintain the property. She said that the units are already full and they hope to remain full. They will rehab one unit at a time and they have a relocation plan in place for the current tenants so they will not be displaced and they will have accessible housing in the meantime. Also, she added that by rehabbing in this way the units will not lose the HUD funding they currently have.
Buford said that once the required tax credit period expires, ownership of the properties revert to TTH. It will stay in the trust and will remain affordable housing. She added that due to the current economy, there is a greater need for rentals right now in the community and that it is a crucial piece of the transition to move those families into home ownership. She clarified that TTH is not moving away from home ownership and into rentals, but they do see it as a necessary component in the community.
Polson asked about the ownership of the property and Independence Inc.’s role.
Buford answered that the property is currently owned by ARO, which is an arm of Independence, Inc. Independence Inc is ready to let TTH manage the units. TTH was approached for this project by those already involved in the ownership of the units. It has been for accessible housing and that mission will continue.
Norwood asked why the owners are not applying for the Housing Tax Credit.
Buford said that it was because they did not want to do it. TTH has a greater capacity than ARO for a project such as this. TTH can purchase the units and manage them as low rental units. At the end of the 15 years the other LLC partners in the Tax Credit will drop out of the picture and TTH receives the property and keeps it in their trust.
Harris asked where the developers for the project came from.
Buford said that one developer is from Missouri and one is local. She said that the developers chosen have very extensive experience in Housing Tax Credits.
Swarts clarified that the contractors doing the construction work would have to be licensed by the City.
Buford added that is part of the Tax Credit as well.
Harris said that developer fees are hefty and he hoped that they were using this as a learning experience.
Buford said that was a part that they were excited about. She said that since the developers they are using are so familiar with Tax Credits TTH stands to learn a lot from the process. She added that TTH will also receive Management fees and consulting fees throughout the process, so they can build a pool of eligible home ownership applicants and build administrative capacity for their ownership programs, all while providing safe housing for disabled tenants. She added that the first time an entity applies for a Housing Tax Credit program, it is strongly suggested that you go with an experience developer in Tax Credits.
Polson moved to recommend support of the Tenants to Homeowners, Inc. project application to the City Commission. Francisco seconded the motion, which passed unanimously.
Discuss 2009 CDBG/HOME applications/computer access.
Swarts commented to the committee that beginning with the next meeting the meeting agenda and items will be web based and they will have access to the files that they require via computers at the meetings. The meetings will be conducted with interactive web pages so it will work to eliminate the majority of the paperwork that has been required in the past. She added that it was a very positive change and that she thought that everyone would find it much more convenient than having to bring a large amount of materials to the meetings since it would all be online for them.
Discuss calendar and allocation timeline.
Swarts said that the City Commission Study Session has been set for February 10, 2009 at 5:30 pm. It will be on a Tuesday before the City Commission meeting.
Swarts also mentioned that there are three at-large positions open on the committee. She said that the positions need to be filled by applicants from a neighborhood other than low-mod. She said that the low-mod area had the required representation. She noted that the low-mod area designation was no longer neighborhood specific.
Harris asked who made the decision to look at the appointments that way.
Swarts answered that it is included in the recently updated Citizen Participation Plan that the CDAC recommended to the City Commission and was subsequently approved by the City Commission. She added that there are no longer “target neighborhood” designations, it is “low-mod areas”.
Swarts also mentioned that the spring public hearing before the CDAC is normally set for the 2nd meeting in April, which falls on the 23rd this year.
Miscellaneous Discussion/Calendar items.
There were none.
Adjourn
There being no further business, the meeting adjourned at 6:30 p.m.
Attendance Record
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Member |
01/08 |
01/22 |
02/10 (Study Session) |
02/26
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03/12 |
03/26 |
04/09 |
04/23 |
05/14 |
05/28 |
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Julie Mitchell |
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Patti Welty |
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Brenda Nunez |
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Marci Francisco |
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Quinn Miller |
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Curtis Harris |
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Vern Norwood |
+ |
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Aimee Polson |
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* Resigned prior to meeting.