SHIP - Affordable Housing Advisory Committee

City of Gainesville SHIP - Affordable Housing Advisory Committee Meeting AGENDA Date: Tuesday, April 11, 2023, 6:00 p.m. Location: Historic Thomas Center, Building B 306 NE 6th Avenue Gainesville, FL Jamie Bell, Jackie Davis, Aymee Ginard- Cepeda, Mary Lou Hildreth, Saeed Khan, Members: Michael Raburn, Jennifer Rivers, Reina Saco, Fred Schilffarth, Belinda Smith, Octavia Washington If you have a disability and need an accommodation in order to participate in this meeting, please contact the Office of Equity and Inclusion at (352) 334-5051 at least two business days in advance. TTY (Text Telephone Telecommunication Device) users please call 711 (Florida Relay Service). For Speech to Speech (STS) relay, please call 1-877-955-5334. For STS Spanish relay, please call 1- 877-955-8773. For STS French Creole relay, please call 1-877-955-8707.  Pages A. CALL TO ORDER Agenda Statement: The City of Gainesville encourages civil public speech. Disruptive behavior is not permitted during City Commission and Advisory Board meetings. Please do not bring food, drinks, props, signs, posters, or similar materials into the meeting room. B. ADOPTION OF THE AGENDA C. APPROVAL OF THE MINUTES D. BUSINESS DISCUSSION ITEMS 2023-324 ARPA Affordable Housing Projects Funding Recommendations 3 (B) Department: Housing & Community Development Description: The Affordable Housing Advisory Committee is to discuss and evaluate requests for ARPA funding for affordable housing projects. Based on those evaluations, the Committee will make funding recommendations to the City Commission. Fiscal Note: The City Commission has allocated $7.2 million from the City’s American Rescue Plan Act funds for new development of affordable housing. Recommendation: The Affordable Housing Advisory Committee: 1) review and discuss the applications for funding for affordable housing projects; 2) complete the evaluation form for each project; and 3) based on the evaluations, recommend that the City Commission approve certain funding amounts for the projects. E. PUBLIC COMMENT F. MEMBER COMMENT G. NEXT MEETING DATE H. ADJOURNMENT Page 2 of 221  City of Gainesville Agenda Item Report File Number: 2023-324 Agenda Date: April 11, 2023 Department: Housing & Community Development Title: 2023-324 ARPA Affordable Housing Projects Funding Recommendations (B) Department: Housing & Community Development Description: The Affordable Housing Advisory Committee is to discuss and evaluate requests for ARPA funding for affordable housing projects. Based on those evaluations, the Committee will make funding recommendations to the City Commission. Fiscal Note: The City Commission has allocated $7.2 million from the City’s American Rescue Plan Act funds for new development of affordable housing. Explanation: The City Commission has allocated $7.2 million from the City’s American Rescue Plan Act (ARPA) funds for new development of affordable housing. Included within that total, the City has earmarked the following:  $6 million for affordable housing developers (for-profit and/or nonprofit) to subsidize the development of new affordable rental housing (single-family and/or multi-family); and  $1.2 million for affordable housing developers (for-profit and/or nonprofit) to subsidize the development of new affordable single-family and/or multi-family housing for first time homebuyers. On February 8, 2023, the City published a Notice Of Funding Availability (NOFA) in the Gainesville Sun and on DemandStar. In addition, the City sent the NOFA, via email, directly to more than 50 affordable housing developers. All applications were due on March 6, 2023. The City received seven applications for five rental and two ownership projects. The combined total request is for approximately $11.9 million, to subsidize 334 affordable units. More specifically, the City received requests for $850,000 for homeownership Page 3 of 221 projects, which is $350,000 less than allocated. In contrast, the City received requests for $11,071,000 for rental projects, which is nearly twice the amount allocated. At the April 11, 2023 meeting, AHAC’s first task will be to discuss and score each project, based on the attached evaluation criteria. Then, based on those scores, AHAC is to make a funding recommendation to the City Commission. The AHAC may recommend that a project be funded at a level less than or equal to, but not more than, the amount requested. Therefore, based on the amounts requested, the maximum funding that AHAC can recommend for homeownership projects is $850,000. Because that is $350,000 less than allocated for homeownership projects, the funding for rental projects can be increased by that amount to $6,350,000. Strategic Connection: ☐ Goal 1: Equitable Community ☐ Goal 2: More Sustainable Community ☒ Goal 3: A Great Place to Live and Experience ☐ Goal 4: Resilient Local Economy ☐ Goal 5: “Best in Class” Neighbor Services Recommendation: The Affordable Housing Advisory Committee: 1) review and discuss the applications for funding for affordable housing projects; 2) complete the evaluation form for each project; and 3) based on the evaluations, recommend that the City Commission approve certain funding amounts for the projects. Page 4 of 221  2023-324A NOTICE OF FUNDING AVAILABILITY American Rescue Plan Act for Affordable Housing Projects The City of Gainesville (City) has allocated $8 million from the American Rescue Plan Act (ARPA) for affordable housing programs. Included within that total, the City has earmarked the following:  $6 million for affordable housing developers (for-profit and/or nonprofit) to subsidize the development of new affordable rental housing (single-family and/or multi-family); and  $1.2 million for affordable housing developers (for-profit and/or nonprofit) to subsidize the development of new affordable single-family and/or multi-family housing for first time home buyers. The maximum subsidy for the development of new rental housing is $35,000 per affordable unit. The maximum subsidy for the development of new single-family housing for first time home buyers is $50,000 per affordable unit. The requirements for recipients of this funding to subsidize the development of new affordable housing include, but are not limited to, the following:  The affordability period for subsidized units must be at least 20 years.  During the affordability period, the rent for subsidized units must be affordable, as defined by the US Department of Housing and Urban Development (HUD), to households whose income does not exceed 65% of the Gainesville Area Median Income (AMI), adjusted for household size.  During the affordability period, subsidized units can only be rented to households whose income does not exceed 65% of the Gainesville AMI, adjusted for household size.  During the affordability period, the sales price for subsidized units must be affordable, as defined by HUD, to households whose income does not exceed 300% of the Gainesville Federal Poverty Level (FPL), adjusted for household size.  During the affordability period, subsidized units can only be sold to households whose income does not exceed 300% of the Gainesville FPL, adjusted for household size. Applicants for this funding may be required to present the project, either virtually or in-person. Funding awards are subject to approval by the City Commission and are based on funding availability. Additional details (including evaluation and scoring criteria), and application forms are available on the City’s website at https://www.gainesvillefl.gov/Government-Pages/Government/Departments/Housing-Community-Development/. If you have any questions, please contact John Wachtel at (352) 393-8565, or by email at wachteljs@gainesvillefl.gov. The City will accept applications for ARPA funding for Affordable Housing Projects beginning Thursday, February 9, 2023. Applications must be submitted by 7:00 a.m. (local time), on Monday, March 6, 2023. Late applications will not be accepted. Applications will be accepted only by email in the form of a full color PDF to coghousing@gainesvillefl.gov. The City WILL NOT accept applications submitted by mail or FAX. All signatures within an application packet must be in blue ink; and all attachments must be titled and labeled. The City reserves the right to reject any and all applications. The City of Gainesville is an Affirmative Action/Equal Opportunity/Drug Free Workplace Employer. The City of Gainesville is committed to a policy of nondiscrimination in all City programs, services and activities, and will provide reasonable accommodations upon request. To request accommodations for non-English speaking persons, individuals with disabilities, and individuals with hearing impairments, please contact the City of Gainesville Office of Equity and Inclusion at (352) 334- 5051 (voice) or (352) 334-2069 TDD; TTY users please call 711. FAIR HOUSING/EQUAL OPPORTUNITY/DISABILITY ACCESS JURISDICTIONS Page 5 of 221 Page 6 of 221  2023-324B Department of Housing & Community Development ARPA FUNDED NEW AFFORDABLE HOUSING PROGRAM DESCRIPTION Total Funding Available: $7.2 million ($6 million for rental development, and $1.2 million for new construction for first time homebuyers).  Affordable housing developers must apply via email. Initial window to apply will be three or four weeks. The window to apply can be “re-opened” if funds are available.  Staff develops and publishes a Notice Of Funding Availability (NOFA).  Staff will use existing email distribution lists and coordination with the Builders Association of North Central Florida to develop a new email distribution list of affordable housing developers. Staff will send the NOFA to addresses on that list.  Staff will post the NOFA on DemandStar, the City’s website, and the City’s social media sites.  Staff will develop an application form and a PowerPoint template for applicants to complete and submit.  Staff will develop evaluation criteria and a 100 point scale.  Applications will be vetted and summarized by staff, then distributed to the Affordable Housing Advisory Committee (AHAC). AHAC will discuss and evaluate the applications using the 100 point scale. AHAC will then make a recommendation to the City Commission. The AHAC evaluation and recommendation will be based solely on the application. Applicants will not give presentations to, or answer questions from, AHAC. The AHAC may recommend that a project be funded at a level less than or equal to, but not more than, the amount requested, the amount available, and the maximum funding per unit.  A Staff Evaluation Committee (SEC) will discuss and evaluate the applications using the 100 point scale. The SEC will determine whether or not it wants any of the applicants to present their projects to the SEC. Ultimately, the SEC will make funding recommendations to the City Commission, which will make the final funding determination. In the agenda item to the City Commission, the SEC will give both their own recommendation, and the AHAC recommendation. The SEC may recommend that a project be funded at a level less than or equal to, but not more than, the amount requested, the amount available, and the maximum funding per unit. When the AHAC and SEC recommendation is forwarded to the City Commission for final determination, the City Commission will determine whether or not they want the applicants to make a presentation. If an application is approved by the City Commission, the City and the developer will enter into a Grant Agreement where the City reimburses the developer for part of the cost of each affordable unit. Before Page 1 of 2 Page 7 of 221 being reimbursed, the developer must send an invoice and back-up to the City; then the City will pay the invoice via Electronic Funds Transfer (EFT). Beginning 24 months after the execution of the Grant Agreement, the City will have the option of re- allocating any funds that remain unspent. Development of New Rental Housing Funding Allocated: $6 million Minimum Affordability Period: 20 years Maximum Funding per Affordable unit: $35,000 Maximum Income of Beneficiaries: 65% AMI Other Requirements: Specific terms ensured through a Grant Agreement and a Declaration of Covenants and Restrictions that are executed by both the Applicant and City. Developing these documents will require the ARPA Consultant and several City departments to coordinate. This will probably include HCD, Finance, Purchasing, and the City Attorney’s Office. Development of New Owner-Occupied Housing Funding Allocated: $1.2 million Minimum Affordability Period: 20 years Maximum Funding per Affordable Unit: $50,000 Maximum Income of Beneficiaries: 300% FPL Other Requirements: Specific terms ensured through a Grant Agreement and a Declaration of Covenants and Restrictions that are executed by both the Applicant and City. Developing these documents will require the ARPA Consultant and several City departments to coordinate. This will probably include HCD, Finance, Purchasing, and the City Attorney’s Office. Page 2 of 2 Page 8 of 221  2023-324C CITY OF GAINESVILLE-Affordable Housing Advisory Committee-ARPA Project Evaluation Form-April 11, 2023-Evaluator Name: Max Jessie's Creekside Eden Park, Oakview Apts., E. Univ. Av. Woodland Criteria NHDC Points Village Commons Ph. 2 Ph. 2 Cottages Park, Ph. 2 Affordability of Affordable Units. More points for lower rents/sales price. 12 Affordability Period of Affordable Units. More points for a longer 10 affordability period. Funding per Unit of Affordable Units. More points for lower funding per 4 affordable unit. Development Timeframes. More points for faster completion given readiness to proceed (e.g., site control, appropriate zoning, etc.) and capacity of 10 applicant. Location of the project. More points for projects in locations that: further the City’s goal of providing affordable housing in all areas of the City; are compatible with surrounding areas; and are near off-site amenities that meet 15 the needs of the project’s residents (e.g., employment, retail, recreation, healthcare, banks, transportation, education, and entertainment). Owner Occupancy of Affordable Units. More points for structuring a greater number of affordable units to be owner occupied. Not applicable to rental 10 projects. Resident income mix. More points for a greater mix of incomes. 4 On-site amenities. More points for amenities that meet the needs of the project’s residents (e.g., playground, recreational facilities, clubhouse, 4 laundry facilities, storage facilities). Marketing and outreach to potential residents of Affordable Units. More points for using local sources such as nonprofits and faith-based institutions 7 to find tenants and/or homebuyers for the affordable units. Property management plan. More points for property management experience, including maintenance and maintenance plan. Not applicable to 5 home ownership projects. Developer experience building residential projects in Gainesville. More 4 points for more overall experience, including staff and subcontractors. Developer experience building Affordable residential projects in Gainesville. More points for more overall experience, including staff and 8 subcontractors. Overall feasibility of the project. More points for greater feasibility. 7 TOTAL 100 Page 9 of 221  ARPA Project Summary 2023-324D Can the project move forward # of ARPA Funding Total ARPA w/out ARPA 1st Step # of Rental or Affordability Total Project Project Name Developer Address/Location Affordable Requested per Funding Building Type funding, or w/only Meeting Units Ownership Period Costs Units Affordable Unit Requested a portion of the Complete requested amount? No; the project 10 years, not does not work South side of NW 39th Modern Trends sure how to Detached Single- w/out the full Creekside Commons Av., approx. 1,100 feet 12 12 Ownership $50,000 $600,000 $3,000,000 Y Development LLC ensure Family amount of west of NW 13th St. compliance requested ARPA funding 10 years, New Construction Neighborhood Housing ensured by a Detached Single- Yes. Will adjust # of Affordable Housing and Development To Be Determined 5 5 Ownership $50,000 $250,000 $1,125,000 N 10 year note & Family homes Program Corporation mortgage W/out full ARPA At least 10 funding, the East University Avenue Mitchell Realty Services years, ensured Detached Single- 3 NE 20th St. 18 18 Rental $35,000 $630,000 $2,485,000 project will be Y Cottages Inc. by a personal Family market rate, not promise affordable Eden Park at Ironwood Apt. Bldg. (2&3 Ironwood Associated, Ltd. 1330 NE 39th Av. 96 96 Rental Not Specified $34,750 $3,336,000 $23,100,000 No response N North, Phase 2 BRs) To move forward, 99 years, the project needs The Hutchinson ensured by a 4-plexes (2&3 Jessie's Village 215 SE 21st St. 24 8 Rental $35,000 $280,000 2,250,000 at least $140,000 Y Foundation Inc. written BRs) for 4 affordable agreement units No; w/out the full 30 years, amount of Oakview Apartments, ensured by an requested ARPA JE Properties 825 NW 16th St. 51 51 Rental $35,000 $1,785,000 $15,346,775 Apt. Bldg. (1 BR) Y Phase 2 agreement funding, the w/FHFC. project will be infeasible The project needs 50 years, Gainesville Housing Garden-style at least $4,536,000 ensured by a Woodland Park, Phase 2 Authority & Norstar 24 SE 19th Pl. 144 144 Rental $35,000 $5,040,000 $40,207,187 Apt. Bldg. (1, 2, (90% of the Y deed Development USA, LP & 3 BRs) request) to be restriction financially feasible TOTALS 350 334 $11,921,000 $87,513,962 Page 10 of 221  2023-324E Page 11 of 221 Page 12 of 221 Page 13 of 221 Page 14 of 221 Page 15 of 221 Page 16 of 221 Page 17 of 221 Page 18 of 221 Page 19 of 221 Page 20 of 221 Page 21 of 221 Page 22 of 221 Page 23 of 221 Page 24 of 221 Page 25 of 221 Page 26 of 221 Page 27 of 221 Page 28 of 221 Page 29 of 221 Page 30 of 221  2023-324F ARPA for Affordable Housing Funding Request Neighborhood Housing and Development Corporation New Construction Affordable Housing Program City of Gainesville 3/3/2023 Page 31 of 221 Page 32 of 221 Page 33 of 221 Page 34 of 221 Page 35 of 221 Page 36 of 221 Page 37 of 221 Page 38 of 221 Page 39 of 221 Page 40 of 221 Page 41 of 221 Page 42 of 221 Page 43 of 221 Page 44 of 221 Page 45 of 221 Page 46 of 221 Page 47 of 221 Page 48 of 221 Page 49 of 221 Page 50 of 221 Page 51 of 221 Page 52 of 221 Page 53 of 221 Page 54 of 221 Page 55 of 221 Page 56 of 221  2023-324G Page 57 of 221 Page 58 of 221 Page 59 of 221 Page 60 of 221 Page 61 of 221 Page 62 of 221 Page 63 of 221 Page 64 of 221 Page 65 of 221 Page 66 of 221 Page 67 of 221 Page 68 of 221 Page 69 of 221 Page 70 of 221 Page 71 of 221 Page 72 of 221 Page 73 of 221 Page 74 of 221 Page 75 of 221 Page 76 of 221 Page 77 of 221 Page 78 of 221 Page 79 of 221 Page 80 of 221 Page 81 of 221 Page 82 of 221 Page 83 of 221 Page 84 of 221 Page 85 of 221 Page 86 of 221 Page 87 of 221  2023-324H Page 88 of 221 Page 89 of 221 Page 90 of 221 Page 91 of 221 Page 92 of 221 Page 93 of 221 Page 94 of 221 Page 95 of 221 Page 96 of 221 Page 97 of 221 Page 98 of 221 Page 99 of 221 Page 100 of 221 Page 101 of 221 Page 102 of 221 Page 103 of 221 Page 104 of 221 Page 105 of 221 Page 106 of 221 Page 107 of 221 Page 108 of 221 Page 109 of 221 Page 110 of 221 Page 111 of 221 Page 112 of 221 Page 113 of 221 Page 114 of 221 Page 115 of 221 Page 116 of 221 Page 117 of 221 Page 118 of 221 Page 119 of 221 Page 120 of 221 Page 121 of 221  2023-324I Page 122 of 221 Page 123 of 221 Page 124 of 221 Page 125 of 221 Page 126 of 221 Page 127 of 221 Page 128 of 221 Page 129 of 221 Page 130 of 221 Page 131 of 221 Page 132 of 221 Page 133 of 221 Page 134 of 221 Page 135 of 221 Page 136 of 221 Page 137 of 221 Page 138 of 221 Page 139 of 221 Page 140 of 221 Page 141 of 221 Page 142 of 221 Page 143 of 221 Page 144 of 221 Page 145 of 221 Page 146 of 221 Page 147 of 221  2023-324J Page 148 of 221 Page 149 of 221 Page 150 of 221 Page 151 of 221 Page 152 of 221 Page 153 of 221 Page 154 of 221 Page 155 of 221 Page 156 of 221 Page 157 of 221 Page 158 of 221 Page 159 of 221 Page 160 of 221 Page 161 of 221 Page 162 of 221 Page 163 of 221 Page 164 of 221 Page 165 of 221 Page 166 of 221 Page 167 of 221 Page 168 of 221 Page 169 of 221 Page 170 of 221 Page 171 of 221 Page 172 of 221 Page 173 of 221 Page 174 of 221 Page 175 of 221 Page 176 of 221 Page 177 of 221 Page 178 of 221 Page 179 of 221 Page 180 of 221 Page 181 of 221 Page 182 of 221 Page 183 of 221 Page 184 of 221 Page 185 of 221 Page 186 of 221 Page 187 of 221 Page 188 of 221 Page 189 of 221  2023-324K Page 190 of 221 Page 191 of 221 Page 192 of 221 Page 193 of 221 Page 194 of 221 Page 195 of 221 Page 196 of 221 Page 197 of 221 Page 198 of 221 Page 199 of 221 Page 200 of 221 Page 201 of 221 Page 202 of 221 Page 203 of 221 Page 204 of 221 Page 205 of 221 Page 206 of 221 Page 207 of 221 Page 208 of 221 Page 209 of 221 Page 210 of 221 Page 211 of 221 Page 212 of 221 Page 213 of 221 Page 214 of 221 Page 215 of 221 Page 216 of 221 Page 217 of 221 Page 218 of 221 Page 219 of 221 Page 220 of 221 Page 221 of 221