CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  5-7-19
Staff Contact:	Britt Crum-Cano, Economic Development Administrator Diane Stoddard, Assistant City Manager
Recommendations/Options/Action Requested:
Receive proposed revisions to the 826 Pennsylvania Street NRA Plan, adopted November 15, 2016 by Ordinance No. 9304, clarifying administration and compliance requirements for affordable housing. Refer to the Public Incentives Review Committee (PIRC) and Affordable Housing Advisory Board (AHAB) to review and provide recommendations.
Executive Summary:		Background: The City Commission approved an NRA Plan for 826 Pennsylvania Street on November 15, 2016.  At that time, an affordable housing provision was being considered as part of an update to the City’s economic development policy, but it was not yet in place.  Since two 1-bedroom units were being proposed for affordable housing as part of the project, the City Commission sent the 826 Pennsylvania Street NRA request to the Affordable Housing Advisory Board (AHAB) for review and recommendation.  At their October 10, 2016, AHAB voted (7-0) to recommend the City Commission approve the NRA for the project. At that meeting, staff asked the board to assist City staff in developing a plan to monitor affordable units during the period of affordability. Shannon Oury from AHAB agreed to assist staff in determining the information required to certify and monitor the affordable units. The City’s economic development policy was updated and adopted January 15, 2017. This update included an affordable housing provision specifying a percentage of units to be set-aside for affordable hosing if the project included more than four (4) residential units. At this time, AHAB was still working on defining affordable housing and related requirements. Proposed Revisions to NRA Plan: On March 1, 2019, Staff received the first annual application for NRA rebate (for the 2018 tax year) from 826 Pennsylvania Street.  The Owner provided additional documentation with the application which indicated that one of the tenants occupying an affordable housing unit had a change in income toward the end of 2018 as a result of getting a new job. At the time the NRA Plan was drafted, it did not contemplate various tenant scenarios that might impact affordable housing compliance. Staff has since consulted and worked with Shannon Oury of the Lawrence Douglas County Housing Authority (LCDHA) and Tom Jackson of the National Development Council (NDC) to draft additional affordable housing guidelines that accommodates tenant changes as well as keeps with the intent of the affordable housing program and goals.  This amendment incorporates those guidelines and is intended to clarify reporting and compliance requirements related to affordable housing.  Next Steps: Staff feels the proposed revisions to the 826 Pennsylvania Street NRA Plan are ready to be reviewed by PIRC and AHAB for providing further recommendations to the City Commission, County Commission and School Board.  The AHAB meeting is scheduled for May 13, 2019.  The PIRC meeting is scheduled for May 15, 2019.   An amendment will then be considered by the City Commission, County Commission, and USD 497 School Board at future meetings.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Sound Fiscal Stewardship Collaborative Solutions
Fiscal Impact (Amount/Source):		The fiscal impact to the City is negligible and this item was not in the 2018-2019 budget or CIP since proposed changes are for administrative and compliance clarification purposes.
Attachments:		826 Pennsylvania Street NRA Plan, Cooperative Agreement & Ordinance No. 9304 AHAB Meeting Minutes, dated 10-10-2016 826 Pennsylvania Street NRA Plan changes (draft)

Reviewed By: (for CMO use only)

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