Housing Task Force

Housing Task Force Meeting #21 Date: Thursday, November 14, 2024 @7:00 pm Location: Village of Port Chester Conference Room Attendees: Arley Arno, Chester Edwards, Monica Fonseca, Jane Lippman, Kathy Pandekakes, Catrina Shivers, Aldo Vitagliano, Andrew Weiss, Ursula Winchell. Absent: Margaret Adamson, Lisa Cordasco, Luis Yumbla Guest Speakers: Rose Noonan (Executive Director of Housing Action Council) Tiffany Zezula (Deputy Director of Pace Land Use Law Center) and Myles Monaghan (Real Estate Developer and Director of Affordable Housing) Meeting opened at 7:03pm. Brief Summary: Rose Noonan and Tiffany Zezula discussed their role in providing technical assistance to the task force. Mr. Monaghan discussed financial aspects of creating affordable housing, including the process of determining eligibility and the challenges of balancing costs and income. The group also discussed the potential for redevelopment in Port Chester, the challenges faced by developers due to regulatory uncertainty, and the importance of clear rules and strategic planning. The conversation ended with a discussion on the importance of focusing on small steps to create momentum and the potential for local preferences in housing projects. Affordable Housing Technical Assistance Discussion Rose Noonan and Tiffany Zezula are working on a memo regarding local preference and the development process, and planned to discuss the technical aspects of creating affordable housing. They also welcomed questions about ADUs and other municipalities' experiences with this technique. The group also discussed the possibility of focusing on specific topics based on their interests. Affordable Housing Eligibility Verification, Lottery Housing Qualification and Guidelines Rose Noonan discussed the financial aspects of creating affordable housing, highlighting the role of Housing Action Council in various development projects. She explained that the affordability of housing is determined by the Median income of Westchester County, which is used as a benchmark for eligibility. She also clarified that the income levels are based on gross income, not tax return adjusted income. She further explained that the process of determining eligibility involves a thorough review of applicants' financial information, including tax returns, W-2s, 1099s, bank statements, and investment accounts. She discussed the process of qualifying lottery winners for housing, stating that it generally takes about six months. She also mentioned a homeownership development in New Rochelle, which is expected to start marketing and qualifying applicants in 2025. She clarified that Housing Action Council is not currently involved in this development, as it is being handled by Westchester County. She also explained the affordability guidelines for different income levels, noting that it can be challenging to find buyers for units targeting 80% of the area median income. Housing Affordability in Port Chester Rose Noonan explained that the affordability of housing is determined by the target income levels and the assumptions made about taxes, insurance, and financing. She suggested that if the assumptions change, the affordability of housing would also change. She also noted that the numbers for Port Chester would likely be lower than those for the county. She mentioned that the village of Port Chester's median income is lower than the county's, which would result in lower rent and sale prices. She suggested that the community might consider using their own median income levels instead of the county's. She also mentioned that there is a bill being considered by the county legislators to individualize income levels per region, which could affect the affordability of housing. Affordable Housing Development Challenges Rose Noonan discussed the complexities of affordable housing development, emphasizing the high construction costs and the need for subsidies to make projects viable. She explained the concept of a limited equity co-operative and the challenges of balancing costs and income, and also highlighted the importance of energy efficiency in affordable housing developments and the role of non-profit lenders like the Community Preservation Corporation. She concluded by discussing the process of calculating net operating income and the total development cost, emphasizing the need to consider all expenses, including developer fees. Affordable Housing Feasibility and Solutions The group discussed the feasibility of building affordable housing units in the current market. Rose Noonan explained that the process of marketing and selling these units can take a long time, and the potential buyers are often purchasing off of plans. It was suggested that renting might be a more viable option due to the high interest rates and the difficulty of qualifying for ownership. Rose Noonan agreed, noting that the down payment and closing costs are significant hurdles for potential buyers. They also discussed the possibility of developers contributing to a fund for down payment and closing cost assistance, which Rose Noonan confirmed is being used in White Plains and New Rochelle. The conversation concluded with the idea of optimizing the project by including higher rent units to subsidize the lower income units. Port Chester Redevelopment and Affordable Housing Tiffany Zezula discussed the potential for redevelopment in Port Chester, highlighting the need for creative thinking and partnerships with churches for affordable housing. She also mentioned the challenges of comparing Port Chester's scale to that of cities. The group discussed the potential for redevelopment at a landmarked church in Westchester Avenue, suggesting it could be converted into affordable housing. Myles Monaghan an affordable housing developer from Mega Corporation, introduced himself and shared his company's focus on creating affordable communities. He also discussed Mega's approach to sustainability and their pre-construction module. The conversation ended with Mr. Monaghan preparing to share his screen to show examples of Mega's work. Affordable Housing Projects and Partnerships Mr. Monaghan discussed various affordable housing projects developed by his organization, including a senior housing building in the Bronx, a mixed-income building in Long Island City, and a redevelopment of a public housing development in Brooklyn. He also mentioned a recently completed project in Astoria, Queens, which includes market-rate and affordable condos, and a project in development in Poughkeepsie, New York, which will provide 187 affordable housing units, including 30 for formerly homeless individuals. He emphasized partnerships with faith-based institutions and local nonprofits in these projects. Addressing Regulatory Uncertainty in Development Mr. Monaghan discussed the challenges faced by developers due to regulatory uncertainty and unclear rules. He emphasized the importance of certainty and clear rules for developers to make informed investment decisions and identified three key areas for municipalities in Westchester to focus on: the planning stage of development, site plan approvals, and environmental reviews. He highlighted the need for municipalities to be more strategic in their planning and to establish clear standards for developers to follow, and also mentioned the difficulties faced by developers when requirements change during the review process, particularly regarding parking requirements. Affordable Housing Development Challenges Mr. Monaghan discussed the challenges faced in affordable housing development, particularly in the planning and building permitting stages. He highlighted how ambiguity in approvals and short-staffed departments can significantly delay projects, affecting their financial viability and ultimately reducing the amount of affordable housing. He also mentioned the importance of providing a development schedule to municipalities, though he noted that these schedules are often disregarded. He suggested that implementing Environmental Impact Studies (EIS) could help streamline the process and provide more certainty for developers. It was asked about the feasibility of discussing timelines with municipalities, to which Mr. Monaghan responded that while schedules are often provided, they are not typically a governing factor in the approval process. Port Chester’s Development Opportunities and Challenges Mr. Monaghan highlighted the village's unique features, such as its harbor and local businesses, but also pointed out potential issues like high water tables and environmental concerns. He suggested that the village should be thoughtful about these issues when incentivizing more development. He mentioned the village's initial form-based code, which was a hit for development certainty but led to confusion and redesigns when parking requirements were increased. He concluded by noting that Port Chester might not have been fully prepared for the interest in transit-oriented development. The group agreed to consider these points and possibly bring them to the Board of Trustees' attention. Focusing on Small Steps and Preferences The group expressed gratitude for the meeting and the insights shared by all. The guest speakers emphasized the importance of focusing on small steps to create momentum and suggested that the group should consider targeting specific issues, such as ADU legislation. They also discussed the potential for local preferences in housing projects, mentioning the New York State Human Rights Commission and the possibility of a test project. Rose Noonan and Tiffany Zezula ended the conversation by promising to send a memo about preferences by the next meeting. Next steps Housing Action Council to provide memo regarding local preference and other preference options and case law to the Committee. Committee members Review the housing study and housing needs report from Port Chester. Consider focusing efforts on 1-2 key strategies or initiatives rather than trying to address all housing issues at once. Review meeting notes and information to date to help develop interim recommendations. Explore potential for a "test project" focused on preferences that aligns with Port Chester's diversity. Reach out to Maria Imperial, Commissioner of NY State Human Rights Commission, regarding fair housing considerations for local preferences. Review preference memo from Housing Action Council before next meeting. Consider inviting Housing Action Council representatives to January meeting to continue discussions. Prepare questions/topics for December 12th meeting. Begin formulating interim report and recommendations. Next Meeting: Thursday, December 12, 2024 7pm Village Conference Room 222 Grace Church St. Port Chester NY. (CANCELLED)