Housing Commission

CITY OF FALLS CHURCH HOUSING COMMISION MINUTES PURPOSE OF MEETING: The five-member Commission is appointed by the City Council for three-year terms. The Housing Commission maintains awareness of housing needs and opportunities, including affordable housing; proposes housing policy initiatives and changes; investigates fair housing complaints and conciliates these complaints; mediates conflicts relating to the Virginia Residential Landlord & Tenant Act and offers reconciliatory services in conflicts relating to other housing laws. DATE OF MEETING: May 15, 2024 PLACE OF MEETING: In Person City Hall Dogwood Room w/ Virtual Option MEETING CALLED TO ORDER BY: Meredith Anderson at 6:32 p.m. THOSE PRESENT: Commission Members Guests Meredith Anderson – Chair Mikayla Edmunds, Student Rep Jordan Hicks – Vice Chair Pamela Lee, NHP Hannah Jordan Staff Sara Ferrara Brenden Woodley Robert Kravinsky Kayleen Mark City Council Liaison Letty Hardi • Roll Call – Chair Meredith Anderson o All commissioners present • Approval of Minutes – Chair Meredith Anderson o Jordan Hicks moved to approve and Robert Kravinsky Seconded • Public Comments – Chair Meredith Anderson o No comments • HHS Updates – Brenden Woodley & Kayleen Mark o Affordable Homeownership Program (AHP) Update (Brenden Woodley) – Fourth property was sold to eligible homebuyer. This was a one-bedroom unit at Park Towers. National Housing Partnership Foundation is in the process of making offers to purchasing the fifth unit. We currently have two 3-bedroom units  and one 2-bedroom unit that we are unable to sell. Postcards for the program is now available and everyone is encouraged to share. o Options for AHP Ineligible Property (NHP Director or Development Pamela Lee) – There is a 2-bedroom unit we are not able to sell located at 128 Haycock as it was not approved for FHA financing. 1. Option 1 – sell the unit, it was appraised for more than $15,000 we paid for it. Drawback is we will lose the unit from the AHP. 2. Option 2 – Keep unit and sell under a rent to own structure. NHP will maintain ownership and serve as property manager. We will identify a buyer, preferable one in a current 80% ADU and the household will pay 80% AMI rent. Hopefully after 2 years, the unit can qualify for conventional financing. At that point the buyer will have about 10% towards the down payment saved. This will be a great way to also explore a rent to own options program in the City. • Sara Ferrara asked if we bought the unit from the program, where would the funds be used instead. Brenden mentioned we have about $500,000 in the AHF that is discretionary and will be used for things like this. Sara also asked what happens if the renter decides they don’t want to move forward, can they walk away? Brenden mentioned they can, they will be paying the same rent but with this program, the money gets put into an account for their benefit and equity appreciation. • Robert Kravinsky asked about the structural repairs and who is paying for the repairs. Pam Lee mentioned the HOA is paying and there are 4 buildings and the work is being done in phases. • Meredith Anderson said she loved the idea of rent to own, but is concerned that we will have to create another set of rules, which in the beginning is uncertain and can spiral to other rules. She mentioned that there is a lot to consider such as if the renter’s situation changes and if the structural issues are not completed in the time frame. • There was a question of is there a time frame to use the Amazon grant funds and Brenden mentioned there is no time line but there is a renewal period which we are not close to. • Letty Hardi asked if there is an option just to rent for the time frame and then find a buyer when the unit is ready. There is the concern of taking on new things at this time with so much going on. Sara Ferrara mentioned the renter can stay until we find them another unit at the end and Hannah Jordan asked what if the renter changes their mind and wants to keep renting? Meredith Anderson mentioned it is an easy option but more risk associated with rent to own. Robert Kravinsky mentioned this can be a pilot with this one unit to determine for the future if rent to own option makes sense. • Letty Hardi asked what is the cost to sit on the unit. Pam Lee mentioned that the HOA is $620 a month and tax is about $3,600 a year. NHP has been holding the unit since end of November and it costs about $1000 a month. • Vote by commission members to continue looking into it. All members agreed.  o VA Village Update (Brenden Woodley) - Closing is still delayed due to Virginia Housing delaying submitting to their loan committee. Everything has been submitted on our end. Should be a simple closing for the City and hopeful for mid- July. o Housing Update (Kayleen Mark): 1. Fair Housing training completed on 5/15/2024 for Property Managers in the City. Great turn out and the training was very engaging. Training for City Council is scheduled for next Tuesday, 5/21/2024, at 8:00pm. 2. Broadcast email message was sent out to CFC all users and the schools about new ADUs that are becoming available and to expand wait list. Lots of great responses and interest in the new buildings. Kayleen will also work on a flyer to advertise the new buildings that are coming available with the ADUs. 3. HUD will issue the new income limits soon, and once the limits are released, Kayleen will share in the June meeting. o Affordable Living Policy (Hannah Jordan) – The group is still trying to figure out how to update the policy. Process is going slower than expected, but making progress. • 2024 Housing Commission Goals - Chair Anderson sent out the latest draft of the annual report and got food feedback. HC needs to vote on 2024 goals and how the HC wants to present the affordable housing 2040 numbers. o Recommendation to give different scenarios for the affordable unit to City Council and maybe HC say which they think should be focused on. Maybe preservation. o Recommendation to increase affordable unit percentages in City from 3-4%. Hannah Jordan recommended that HC should ask for 6%. Sara Ferrara agreed that HC should make a strong recommendation for 6% and if HC doesn’t advocate for more, nobody else will. Letty Hardi mentioned that many other communities benchmark even higher. o Jordan Hicks mentioned that preserving should be goal 1 and expansion is goal 2 and HC should highlight the devastating effect if preservation is not done. o Sara Ferrara moved to vote for 6% and Hannah Jordan second. Unanimous vote for 6% including preservation. Move to vote on 2024 goals by Sara Ferrara and second by Jordan Hicks. All vote “I” • Steve Sprague Housing Champion Award – No discussion as short for time. • Other - o Future meeting locations – Joint HSAC meeting • Adjourn o Jordan Hicks moved to Adjourn and Sara Ferrara seconded o Adjourned 7:30 pm.