City of Lawrence, KS

Community Development Advisory Committee

January 13, 2011 Minutes (City Commission Room)

MEMBERS PRESENT:		Deron Belt, Quinn Miller, Julie Mitchell, Vern Norwood, Brenda Nunez, Roberta Suenram, David Teixeira, Patti Welty

MEMBERS ABSENT:		Aimee Polson

STAFF PRESENT:		Danelle Dresslar, Margene Swarts

PUBLIC PRESENT:		Rebecca Buford, Harry Miller, Pat Miller, two additional PNA representatives

Chair Norwood called the meeting to order at 5:30 pm.

1. Introductions

Members and staff introduced themselves.

2. Approval of the October 14, 2010 Minutes.

Suenram moved to approve the CDAC meeting minutes from October 14, 2010. The motion was seconded by Teixeira and passed unanimously.

3. Consider for approval a request from Tenants to Homeowners, Inc. for a Substantial Amendment of the LCLHT First Time Homebuyer Rehab - $100,000 to the previously approved ARO Low Income Housing Tax Credit Project.

Swarts said that Tenants to Homeowners, Inc. (TTH) had been awarded a low-income housing tax credit project from the Kansas Housing Resources Corporation (KHRC) to rehabilitate the Accessible Rental Options (ARO) units in Lawrence. The project was previously approved by the CDAC and subsequently the City Commission. This request before the CDAC is to reallocate $100,000 from the First Time Homebuyer Rehabilitation Program that is administered by TTH to the ARO Rental Rehabilitation Project. TTH had requested the reallocation based on match requirements for the low income housing tax credit program and a funding gap that had been identified. This process requires a Substantial Amendment to the 2010 Annual Action Plan of the 2008-2012 Consolidated Plan. Staff is in favor of the recommendation as the request maintains affordable housing for low-income tenants.

Rebecca Buford, Executive Director of TTH, said that all the residents of the ARO units are below 60% AMI, and according to the original HUD financing agreement, half of those have to be at 30% AMI or below. All the residents have a disability, and all the units are fully accessible. The units were built in the 1980’s and have not been maintained. TTH did not originally own the units. The management company hired to oversee the units did not do an effective job of maintaining the properties, causing the current need for the large amount of rehabilitation. Buford said that each resident has to pay only one-third of their monthly income for their rent portion, and there is already Federal assistance tied to these units. If no one was to step up and get involved in with the rehabilitation of the properties, then the community was at risk of losing all the funding that has been tied up in the properties, as well as losing a large sector of fully accessible housing. If that were to happen, it would be impossible to fund a project to rebuild these units. Buford said that TTH was able to bring in $2.2 million in tax credit financing, and the units will be placed in the Housing Trust, ensuring their long term affordability. The project requires an additional contribution from the City as well as TTH funding.

Teixeira asked if the $100,000 was a requirement to receive the allocation from KHRC.

Buford said that there is a match requirement from KHRC, but these are additional funds that TTH needs to complete the project. There are no projects in the TTH pipeline that will be stopped by this reallocation. The goal is to replace the funding to the First Time Homebuyer Rehabilitation Program with internal funding sources as the year progresses. Buford added that this was the first time that TTH had been awarded tax credits, and the process has been a big step for them. She said that tax credits can be a large source of rehabilitation funding in the community, and that TTH is learning how to get through this process to be able to bring more money into Lawrence in the future.

Welty asked if the reallocation was for exactly $100,000.

Swarts said that it was. The allocated amount to the First Time Homebuyer Rehabilitation program would be shifted to the ARO project. She added that the First Time Homebuyer Rehabilitation program is for those folks who go through the Land Trust and identify a property for purchase. The closing costs come from HOME and the supplemental rehabilitation costs come from CDBG. TTH has been building new units through the Neighborhood Stabilization Program (NSP). Swarts echoed Buford and said that this reallocation is not taking anything away from the First Time Homebuyer program.

Buford added that the properties would stay in the Land Trust as well, even after the required 15 year compliance time has passed. This will ensure that the properties remain affordable. TTH is committed to keeping it in the Land Trust. Finding properties that are fully accessible is hard in any community, and with the older housing stock in Lawrence, this is a property that needs to stay in this category.

Norwood asked if there are any additional reporting requirements past the initial project year.

Swarts said that TTH will be required to report to the State of Kansas during the 15 year compliance period, as that is part of the regulations. The City will get the demographics for the expenditures made during this program year. There have been low-income tax credit projects in the community previously; however these properties often become market rate after the 15 year affordability period. That is the good thing about TTH and the Land Trust being involved in this project. Their mission is affordable housing. Swarts said that it is really difficult to break into the low-income tax credit award world, but the way that TTH has partnered with a for-profit developer will allow them to learn the program and it will put them in a position to gain experience for future projects.

Mitchell asked about the configuration of the properties.

Buford said that it is set up in five four-plexes, and they are on scattered sites. All have services and agencies located nearby.

Mitchell added that with the scattered sites, this is an opportunity for neighborhood improvements as well.

Teixeria asked who TTH partnered with for this project.

Buford said that TTH partnered with Excel Development, a developer based out of Nebraska. She said that TTH is trying to learn everything about the process that they can in the hope that in the future they could apply for the credits on their own.

Suenram asked how the substantial amendment process works.

Swarts explained that if the CDAC approves the proposal this evening then a public notice will run in the January 19, 2011 edition of the Lawrence Journal World, which begins the 30-day comment period. The item will be on the January 25, 2011 agenda for City Commission approval. If approved and upon expiration of the 30-day comment period, notification will be sent to HUD regarding the approval of the Substantial Amendment. At that time, TTH will have the ability to utilize the funding for the ARO project.

Mitchell moved to approve the request from Tenants to Homeowners, Inc. for a Substantial Amendment of the LCLHT First Time Homebuyer Rehabilitation - $100,000 to the previously approved ARO Low Income Housing Tax Credit Project. The motion was seconded by Miller and passed unanimously.

4. Consider request from Pinckney Neighborhood Association (PNA) to reconsider CDBG funding for 2010 program year.

Swarts stated that she had previously sent a letter to PNA, care of the current President, Steve Braswell, outlining their failure to comply with the funding conditions set forth by the CDAC in the 2010 allocation process. As a result, their funding for 2010 had been withdrawn. She said that the lack of performance measurement reporting as well as the un-executed 2010 Subgrantee Agreement showed cause for this action. Previous to the letter, numerous emails had been sent to Mr. Braswell from staff regarding the lack of submitted reports as well as the need to sign the Subgrantee Agreement and nothing had been done. The letter was sent to the neighborhood on November 5, 2010. Prior to the 2010 CDBG/HOME application deadline of December 1, 2010, Swarts received a phone call from Pat Miller regarding technical assistance questions about the 2011 PNA application. During the conversation Swarts mentioned that the funds for 2010 had been withdrawn. Ms. Miller was unaware of that action so Swarts forwarded a copy of the letter to Ms. Miller by email. Ms. Miller later called and expressed a desire for neighborhood representatives to speak to the CDAC regarding their 2010 funding.

Pat Miller, PNA, said that the neighborhood started having well-attended meetings and people took a deeper rooted interest in the happenings of the neighborhood about a year ago when the issue of Woody Park arose. The Woody Park issue brought a lot of people into the meetings, and those people stayed and continued to involve themselves with the neighborhood. Many of those who had been active in the last year did not know about the events that had led up to the mailing of the letter in November. She noted that there are new officers on the board and there will be a new President elected in February as Braswell is not running for re-election.

She stated the neighborhood realizes the importance of the reporting, and they are now aware that the reporting was not taking place and have made a commitment to make sure that the reporting effectively shows what the neighborhood is doing. She said that it is important to demonstrate what the neighborhood is doing now; there are great things happening in Pinckney. She said that there are a lot of dynamic things planned to really go out and service the purposes of the grant. She said that she had helped draft the grant proposal for 2011 and it was very enlightening to her to go through the process. She said that Pinckney has a desire to work closely with City staff to make sure that the responsibilities of the grant are being met.

Miller said that the neighborhood representative brought with them an outline of the activities that they are doing and what they have planned. They have a newsletter that is ready to go out, but they are in the process of identifying funding to proceed with the printing. She said that in January the neighborhood is having a speaker talk to them about how to handle blight issues. In February, the neighborhood is looking at ways to get more involved in neighborhood public service projects and will have a speaker from the Roger Hill Volunteer Center at their meeting. In March, the plan is to become better aligned with the schools in the neighborhood, including Pinckney Grade School and Veritas Christian School. She said that they want to make sure that the kids in the neighborhood as well as the ones who come into the neighborhood for school see how active and supportive the neighborhood association is. This issue has really brought the neighborhood closer together and helped them to become stronger and have better direction. She said that there is no question about the fact that paperwork will be timely and correct in the future.

Swarts noted that in the meantime, the neighborhood had turned in all their past reports and that all the funded neighborhoods are current and in compliance.

Miller said that they are developing a metrics approach so they will not have to go back and reconstruct anything for reporting. They will be able to keep up as they go and there are many more people involved now than there have been in the past. The information and what they needed to do for compliance was too centrally located in the past. Now issues are discussed widely and actively in the monthly meetings.

Teixeria asked Swarts if all the paperwork that had been turned in by Pinckney was in good order.

Swarts said it was.

Norwood asked if Pinckney was requesting release of the 2010 funding allocation.

Swarts said yes. She said that staff recommends that as we are six months into the grant year that if the CDAC determines it is appropriate to reallocate the funding to the neighborhood that they reallocate the last six month worth instead of the entire grant year. She said that no bills can be retroactively paid because there is no executed grant agreement. She said that the recommendation of half the allocation can begin upon execution of the Subgrantee Agreement.

Miller said that they had an officer in attendance that can execute the agreement at the meeting.

Swarts said if that was what the CDAC wanted to recommend staff would proceed in that direction. The CDAC needed to determine the amount of money to be reallocated.

Miller said that the grant is very small, and they have the neighborhood picnic yet to come. She asked that the CDAC allow for half the grant funding as well as the modest amount that they had requested for the picnic.

Norwood moved to approve the request from Pinckney Neighborhood Association to reinstate a total of $1,650.00 of CDBG funding for the 2010 program year. The motion was seconded by Miller and passed unanimously.

5. Receive letter from Candice Davis regarding Oread Neighborhood Association (ONA).

Swarts said that this agenda item was only to formally receive the letter from Ms. Davis unless there is additional discussion within the CDAC. She said that there is no required motion for this item.

Teixeira asked what exactly Ms. Davis was saying in her letter.

Swarts said that the letter was not necessarily asking for anything; it was just a letter to let the CDAC know about some issues in the Oread Neighborhood Association over the last year.

Norwood asked if it was a possibility that there would be a split in the neighborhood.

Swarts said that is always a possibility. She said there was a large turnover in the elected officials of ONA at the previous year’s election and it was not what many of the residents were expecting. She said that as a result of the election and the learning curve with the new officers, there has been some angst between the competing interests of landlords and owner/occupants.

Norwood asked if ONA had been compliant in their reporting requirements.

Swarts said they have fulfilled their reporting responsibilities.

6. Election of Chair and Vice-Chair.

Norwood opened the discussion of the Chair and Vice-Chair elections and said that the CDAC should look at Chair and Vice-Chair as working together and the Vice-Chair should be groomed through the year to take over as Chair at the next election. The Vice-Chair should be someone who has been on the committee and can step into the position of Chair as a progression.

There was discussion by the committee about this. The committee agreed it would like to see this progression with these positions.

Norwood moved to nominate Mitchell for Chair and Miller for Vice-Chair and that they be appointed to those positions by acclimation of the body. Teixeira seconded the motion and it passed unanimously.

After the election, Julie Mitchell took over Chair duties from Vern Norwood for the remainder of the meeting.

7. Discuss CDBG/HOME Applications/Calendar for allocations.

Swarts said that if the CDAC has any questions regarding a particular application to let staff know. Staff will research the answer and inform the CDAC. The CDAC needs to determine the order of discussing the allocations. In previous years they have opted to first discuss the Capital Improvements, then HOME, and end with Public Services.

Belt said that in looking at the ONA application for this year, there are several additional applications for projects.

Swarts said that typically additional projects occurring in the neighborhoods are joint efforts between the neighborhood and Public Works or Parks and Recreation, depending on the project.

Since Rebecca Buford from Tenants to Homeowners, Inc. was present, Welty asked her to prioritize the activities in the TTH application.

Buford said that however the CDAC sees the split to go, TTH will make it work. The reality is that the rehabilitation process is costly. If the neighborhoods want TTH to buy a blighted structure and rehabilitate it, as opposed to building on a vacant lot, there is additional subsidy that is required. Additionally, there are not as many infill lots available in the community as in the past and TTH does not have the construction pipeline they did several years ago as there has been an increase in the cost of development.

Teixeira asked about the process for the discussions.

Mitchell said that there are no interviews with the applicants unless it is specifically requested by the committee.

Swarts added there is public comment at the end of the meeting so if an applicant wishes to attend the meeting they do have an opportunity to talk. If a committee member has specific questions, the applicant can be invited to attend. Staff can relay questions and answers as well.

Welty noted that some of the agencies did not use all their allocation from 2009 according to the CAPER.

Swarts stated that all the public service agencies/neighborhood associations used their allocation except ONA, PNA, and the East Lawrence Neighborhood Association (ELNA). She said that the CAPER cutoff is July 31 for reporting purposes. Reimbursement requests can be submitted until August 31. In the program year the agencies have to expend funds; there may be reimbursement requests after the CAPER reporting cutoff. These expenditures will be reported in the following year CAPER. As a result, it may look like all the funds allocated were not expended when indeed, they were. With ONA, the coordinator resigned during the year and it took a few months for ONA to hire a new coordinator. PNA did not expend all of their funds but as noted earlier, there were some issues in the neighborhood during the year. ELNA experienced some changes in their board as well. Generally, staff does not worry about expending all of the allocation if it is a fairly small amount and can be explained and if there has not been a pattern established of non-expenditure. For this to happen in just one year is not really a concern.

Mitchell suggested the next meeting begin with discussions of Capital Improvements and then HOME if there is enough time.

The committee agreed.

Swarts said that if any questions arise between now and the next meeting to let staff know.

Welty asked if the Weatherization program will have anything to do with the Take Charge Challenge.

Swarts said that it will. The two staff project specialists will participate in an information table at the Take Charge kickoff. She explained that the Take Charge Challenge is an energy awareness competition between Lawrence and Manhattan. The prize is a $100,000 grant for energy upgrades in the winning community. Signing up for Westar “smart” thermostats, arranging for home energy audits, and changing light bulbs to energy efficient models, are some of the ways that citizens can participate to help Lawrence win the competition. There will also be information at the Lawrence Homebuilders Association Home Show in March. CDD staff has also arranged for homeowners who participated in the Weatherization program this year to receive a package of energy efficient light bulbs. Staff is encouraging all rehabilitation applicants to apply for the ECKAN Weatherization program and Efficiency Kansas as well.

8. Miscellaneous/Calendar.

Swarts reported to the CDAC that the City has adopted the 2009 International Property Maintenance Code. She said that Brian Jimenez had originally presented the code changes and talked about incorporating the environmental code and property maintenance code together. Upon the advice of the Legal Department, they were left as separate codes. The City Commission subsequently adopted the 2009 International Property Maintenance Code and the new code went into effect January 1. The adopted code did not have any changes beyond what was originally presented to the CDAC.

Swarts also reported that with the previously awarded Neighborhood Stabilization Program (NSP) stimulus funds, TTH developed a five unit rental project called the Rhode Island Roost. The project was developed on vacant land that the county owned in the 1100 block of Rhode Island. Two of the units are fully accessible, and all are affordable with two being rented to an individual or family at 50% AMI or lower. That project was so successful the state has awarded the City another $475,000 in additional NSP funding. The City will again be partnering with TTH. At this time, the projects to be undertaken have not been identified but the possibilities include buying and rehabilitating foreclosed properties or building new units on infill lots to provide affordable housing to new homebuyers and/or renters.

9. Public Comment.

There was no public comment.

10. Adjourn.

Norwood moved to adjourn the January 13, 2011 meeting of the CDAC at 6:55 pm. The motion was seconded by Miller and passed unanimously.

Attendance Record

Members

Jan 13

Jan 27

Feb 10

Feb 24

Mar 11

Mar 24

Apr 14

Apr 28

May

Jun

July

Aug

Sept

Oct

Nov

Dec

Deron Belt

Quinn Miller

Julie Mitchell

Vern Norwood

Brenda Nunez

Aimee Polson

Roberta Suenram

David Teixeira

Patti Welty

⁺

Vacant

E Excused Absence