Community Development Advisory Committee

CDAC MINUTES DRAFT March 19, 2013 3:30 P.M. Basement – 23 Union St. Members Present: Les King, Democles Angelopoulos, Robert McKeon, Edward Derr , Lynn Norris & Brian Eckenrode Others Present: Gary Evans and Susan Goldman The CDAC meeting was called to order at 4:00 p.m.. Motion was made by Lynn Norris, seconded by Brian Eckenrode to approve the minutes of the December 20, 2012 meeting. Meeting carried unanimously. Organizational Discussion • John Mathieu resigned • Next meetings: March 21st – Applicant Presentations, March 27th – CDAC deliberations. • Election of Chair o Motion was made by Demo Angelopoulus, seconded by Edward Derr to appoint Les King as Chair of the Community Development Advisory Committee. Motion carried unanimously. • Gary Evans asked for comments on application format • Brian Eckenrode suggested we make a list of “red flag” issues on applicant past performance to look out for when committee reviews the applications • Lynn Norris said she would recuse herself from any discussion regarding Norwich Public Schools Bridges application and Norwich Adult Education application due to the fact that she is a member of the Norwich Board of Education. Applicant Presentations Community Care Team – Lee-Ann Gomes (see attached presentation) Questions: • If Hospitality Center closes what will happen to those that need temporary shelter? Clients will be sent to other shelters in the area. The Hospitality Center has no showers and is not an ideal living arrangement for those that have jobs. • What kind of follow up will be in place for clients that are re-housed? A Housing Maintenance Plan agreement will be executed between the client and the  Community Care Team. This agreement outlines a list of what is expected from the client. A case worker is assigned and follow up visits are scheduled. • How do you prevent client from taking in roommates? Rent goes directly to Landlord and there are regularly scheduled inspections. • How do you avoid CDBG funding becoming an annual line item in your budget? Federal government is starting to shift funding of shelters to re-housing. NHS - Norwich Works – Lee-Ann Gomes (see attached presentation) Questions: • Do all screened candidates receive training? No, some clients are not ready for employment and will be referred to other programs. • Are recent High School graduates eligible for your services? There are other programs that deal exclusively with youth. It is important that young adults that are not attending college become invested in a career path. • Can childcare and transportation assistance be given to clients that aren’t enrolled in a training program? Funds can be used if you are in a training program or have a job and require emergency childcare or transportation assistance. • How do you measure the success of the program? Ray Hulten maintains a spreadsheet that tracks all aspects of the process from intake to gainful employment. He also does three month follow-ups with clients. • Is it reasonable to put a restriction on program recipients that obliges them to remain residents of Norwich for a certain period of time? That would not be feasible and impossible to enforce. Norwich Public Schools - Norwich Adult Education – Mary Berry (see attached presentation) Questions: • How many days a week do you provide services? Beginner class is held 2 times per week and advanced once a week • Could program continue without CDBG funding? Madonna Place location would be discontinued, • What are predominant languages spoken by clients? Chinese, Haitian Creole and Spanish Opportunities Industrialization Center - Danielle Chiaraluce (see attached presentation) Questions: • Is CDBG funding going to be used to leverage additional funding? Always try to have matching funding when applying for other foundation grants and United Way. • What are funds being used for? To keep Norwich office location open and pay project coordinator.  • Where is Norwich Office? It is located in Norwich Human Services. These services are also offered in New London but many Norwich clients can’t access because of distance. • What type of service do you offer? Deal primarily with clients that have been previously incarcerated. Teach basic skills on how to get a job, not job training. Employment skills training, provide transportation assistance. OIC has relationships with employers who hire people with a past criminal record. • Does OIC work with other agencies that provide similar services? OIC holds workshops at the EWIB that are run by OIC employees. Safe Futures – Kathy Zeiner (see attached presentation) Questions: • At what locations in Norwich do you provide services? At courthouse, police department and an office at Backus Hospital. • Are there any other Domestic Violence advocates operating in Norwich? No, Safe Futures is the only agency that provides domestic violence counseling. • Are there any other Domestic Violence agencies that treat the entire family? Safe Futures is the only agency that treats the victim along with the entire family. • Is there a connection between Domestic Violence and homelessness? Yes, many victims of domestic violence become homeless. CD Office – Down payment Assistance – Gary Evans (see attached presentation) Questions: • If according to HUD guidelines down payment assistance is targeted to low – moderate income, won’t those individuals/families not have enough resources to maintain the property and eventually lose it to foreclosure? There is a general misconception about down payment assistance and the housing crisis. The housing crisis was not caused by government regulated down payment assistance programs. It was a combination of issues including unfair lending practices, high interest rates, inflated property values and the removal of requirements that included verifying income. Accessing down payment does not remove the need for applicants to have credit history, suitable income to cover the monthly obligations and cash reserves. Protecting the cash reserves is part of the concept behind down payment assistance. The more money available for emergencies and/or repair the more adaptive the homeowner is to changes. These funds will be used to place low-to-moderate income individuals into homes. Qualified applicants will be required to take homebuyer education which includes budgeting. Statistically, these individuals have limited monthly obligations and therefore at a lower risk for default. In addition, the cost of ownership is less than renting. This also takes into account the increase in income as a result of allowable tax write-offs as well as the long-term benefits of building equity. • Aren’t most people attached to their jobs more than their house, which means greater need to be flexible if the job relocates from the area? Homeownership isn’t right for everyone. One of the first topics discussed in any homeownership class, which is required as part of participation in this program, is whether or not homeownership is right for the person. While there will always be a percentage of  individuals who have jobs that relocate or are subject to downsizing, the City of Norwich should do what it can to fill its vacant housing space and increase homeownership. The population least likely to purchase a home due to the “transient” nature of the employer is the military. As of 2011, fewer than 250 residents serve in this occupation. • How will you find qualified people? Statistically speaking the qualified people will find us. Our purpose is to ensure LMI individuals have fair opportunities to improve their personal situation without draining all financial resources. Statistically, in 2011 & 2012 25% of first time homebuyers relied on gifts of down payment from relatives. • How can an LMI person afford this? The current interest rates would allow an LMI person to own a house for less than they are paying every month in rent, on average. As an example, a family of 4 making $64,400 per year could typically qualify for a mortgage around $1,600/month, or $225,000 purchase price. Fortunately, most properties are around $160 – 180,000. A purchase in this price range would require approximately $12,000 for down payment and closing costs. As stated previously many first time homebuyers receive gifts from family members to cover down payment and closing costs. Unfortunately, the demographic CDBG funds are set to help typically lack family resources. Therefore, the CD office is seeking this funding to ease the burden for some of the acquisition costs and leave money available for emergencies. • Aren’t we putting people into older housing stock without the necessary resources to maintain them? We are trying to encourage homeownership and provide education, incentives and added supports through the rehab/lead programs to improve the overall condition of the housing stock. CD Office – Economic Development Job Creation/Retention – Gary Evans (see attached presentation) New Business None Adjournment Motion was made by Les King, seconded by Demo Angelopoulos to adjourn. Motion carried unanimously. The CDAC meeting ended at 6:35 p.m.