City Council

June 13, 2017 CITY OF SARATOGA SPRINGS SPA Housing Ordinance Workshop City Council Room 1:30 PM 7:00 PM CALL TO ORDER ROLL CALL SALUTE TO FLAG PUBLIC COMMENT PERIOD / 15 MINUTES CONSENT AGENDA 1. Nothing at this time. MAYOR’S DEPARTMENT 1. Nothing at this time. ACCOUNTS DEPARTMENT 1. Nothing at this time. FINANCE DEPARTMENT 1. Nothing at this time. PUBLIC WORKS DEPARTMENT 1. Nothing at this time. PUBLIC SAFETY DEPARTMENT 1. Discussion: SPA Housing (Inclusionary Zoning Amendment) SUPERVISORS 1. Nothing at this time. ADJOURN City Council Meeting 6/13/17 June 13, 2017 CITY OF SARATOGA SPRINGS SPA Housing Ordinance Workshop City Council Room 1:30 PM PRESENT: Joanne Yepsen, Mayor Michele Madigan, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Christian Mathiesen, Commissioner of DPS STAFF PRESENT: Meg Kelly, Deputy Mayor Maire Masterson, Deputy Commissioner, Accounts Eileen Finneran, Deputy Commissioner, DPS Vincent DeLeonardis EXCUSED: Franck Coppola, Jr., Deputy Commissioner, DPW Matthew Veitch, Supervisor Peter Martin, Supervisor RECORDING OF PROCEEDING The proceedings of this meeting were taped for the benefit of the secretary. Because the minutes are not a verbatim record of the proceedings, the minutes are not a word-for-word transcript. CALL TO ORDER Mayor Yepsen called the meeting to order at 1:33 p.m. PUBLIC COMENT Mayor Yepsen said the public comment period is limited to a total of 15 minutes and individuals are limited to two minutes. Mayor Yepsen opened the public comment period at 1:34 p.m. No one spoke. Mayor Yepsen closed the public comment period at 1:34 p.m. PUBLIC SAFETY DEPARTMENT Discussion: SPA Housing (Inclusionary Zoning Amendment) Page 2 of 5 City Council Meeting 6/13/17 Commissioner Mathiesen advised this workshop was requested by the Council to work with the banking industry experts and the developers. Commissioner Franck stated he asked Mark Hogan (Saratoga National Bank) and John Carusone (local attorney) to attend the meeting. Monte Franck, member of the IZOD Committee was also in attendance. Bankers Mark Hogan provided the Council with a couple qualification scenarios he created. There is no way to know what someone’s debt load is but he created the scenarios based upon situations he has seen. These scenarios did not take into consideration PMI (private mortgage insurance) or HOA fees. One concern is what location(s) this price point will work for affordable housing. He believes it will be difficult for a developer to deliver at these figures. He is also concerned with area variances for subdivisions. Brad Birge, of the City Planning Department, advised the ordinance provides the Planning Board the ability to waive provisions. The developer will determine the number of units based upon the minimum threshold and then identify the number of units for density bonus. The developer would present what would be needed to meet the inclusionary zoning. There is an analysis that goes along with determining the number of homes for a subdivision. Mark Hogan asked how a developer is going to know who the people are in the moderate or middle income. Monte Franck advised the target audience is the 80 – 110%. The developer would only do this if they knew they had a rental assistance certificate. Mark Hogan questioned the restriction of being able to take advantage of the 7 – 10 year ARM. There was discussion regarding how the certificate of occupancy (C.O.) is going to be issued as it currently states the inclusionary unties must be occupied in order to get the C.O. The only solution he can see is selling the inclusionary units first. Monte Franck advised there is a provision that allows for requirements to be waived. Commissioner Franck stated when reading the current inclusionary document, it sounds like the thought process was geared toward condos. John Carusone stated on the last page under enforcement and oversight, the phrase regarding COs will preclude a bank from lending to anyone within that project. Commissioner Franck stated the point being missed is the banks are not going to give out any loans without the inclusionary zoning properties being sold/closed first. Vince DeLeonardis, city attorney, stated we know we will have the inclusionary zoning buyers. If we don’t have them it will be waived as a non-issue. John Carusone advised it is very hard to foreclose on a property. In section 4.4.9, last paragraph, subsection 7; the time limit should be tight. Either the City has to buy the property or the bank has to be able to foreclose. Vince DeLeonardis agreed the times should be shortened to 30 days for the City to decide if they want to purchase the property in the event of a foreclosure. Page 3 of 5 City Council Meeting 6/13/17 John Carusone advised once that happens the property is no longer an inclusionary property and sold as a market unit. Commissioner Franck asked what happens if a single person purchases the property, gets married, then gets divorced and the spouse gets the property; what happens in that case. Developers Present: Sonny Bonacio, John Witt, Tom Newkirk, and Jim Burns. John Witt advised the inclusionary zoning will de-value lots. If the land cost is zero, he still can’t build a home for less than $380,000. This falls outside the affordable housing numbers. The ordinance has too many ‘mays’ and ‘shalls’. This can’t work with new construction. Tom Newkirk asked if there is a goal for the number of units per year. Paul Feldman of the Housing Authority advised per the study done, the total number of units needed in the City is 190. Tom Newkirk advised there are 3 ways of taking care of affordable housing: co-mingle, separate facility, and city sponsored. Inclusionary zoning doesn’t work for single family dwellings particularly in RR areas. Also, 30 years is too restrictive; 10 years may be better. Limit the zones/overlay zone. Vince DeLeonardis advised this is to be incorporated across the city and not segregate in certain parts of the City. We can have overlays but not according to someone’s income. Sonny Bonacio advised on the rental side the developer is paying full taxes for the next 30 years. There is no mitigation or pilots on taxes. At the end of the day, if the bank is not happy we are done. The devil is in the details. They are bringing up details to make it work. Tom Newkirk asked of the bankers if there is a chance of getting permanent financing under inclusionary zoning. Monte Frank stated once it is accepted it is built into the financial plan. Sonny Bonacio stated other cities will give the developer the pilots; long term you are equalizing out. He provided a list of questions. Section 240.3 definition of affordable cost - they would like to know if utilities are included or not. The city’s medium income is a moving number. The rent needs to be very clear like HUD. The ‘mays’ and ‘shalls’ need to be ironed out. The inclusionary housing agreement needs to be a template. Density bonus has to be based on zoning. Brad Birge of the Planning Department stated there has to be an understanding by the Planning Board and the City that there is going to be additional density. There is going to be additional height in certain areas and additional density to incorporate the units. Commissioner Madigan stated she feels this in under descriptive. Sonny Bonacio stated the only thing the City is bringing to the table is telling the developers you get more – design to these new criteria. The developer is seeing ‘may’/’shall’. You have to definitively say here is what we are going to do. Mixed messages are being sent. It states the City can charge a fee; what is the fee? We are done talking about the concept; we are at needing the details as they are the guys who are expected to do this. Commissioner Madigan stated the document regarding the Housing Authority is not referenced in this document. That needs to be included before this gets voted on. Page 4 of 5 City Council Meeting 6/13/17 Commissioner Franck stated he doesn’t feel the document is ready yet. Why wouldn’t we make it clear in the document? Council agreed to get red-lined versions to Vince DeLeonardis within 2 weeks for him to get all comments included and a draft ready. ADJOURNMENT There being no further business, Mayor Yepsen adjourned the meeting at 3:14 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 7/5/17 Vote: 5 - 0 Page 5 of 5