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Minutes 12-01-21 AHAC CITY OF BOYNTON BEACH State Housing Initiatives Partnership program (SH|P) Affordable Housing Advisory Committee (AHAQ Housing Incentives Workshop#1 � December 1, 2O21, 1:OOprn Zoom Meeting 6799764598 In attendance: Christina Ronoe|us, Michael Corbit, Kevin Fischer, Ketunah]oseph, Cheryl Banks, Ronnie Hoggins, Sari Vastke Staff in attendance: RJ Ramirez, Community Involvement Manager and Michael Rumpf, Planning and Zoning, Mara Frederiksen, Finance Director, Corinne Elliott, Deputy Finance Director LWelcome and Introduction RJ Ramirez, Community Improvement Manager, confirmed meeting attendance as members logged ontoZoom. The Board members introduced themselves. ||' Discussion ofIncentives and Recommendations Michael Chaney,Technical Advisor, Florida Housing Coalition introduced himself and noted heis thereto review the incentives and to review the report that the committee has been asked to produce. Mr. Chaney provided background on the Florida Housing Coalition. They are a non-profit organization who work directly with the Florida Housing Finance Corporation. Mr. Chaney reviewed the concept ofregulatory reform. He shared the AHAC isdesigned to help the local government consider how its local policies, rules, and regulations affect the cost of housing development and in turn, housing affordability, and how the local government can improve its policies toencourage affordable housing. He noted the main responsibility of AHAC is to produce an annual report with recommendations on local affordable housing incentives.The Committee will recommend incentives for affordable housing inthe following ways: • Recommend the modification or repeal of existing policies, procedures, ordinances, regulations, or plan provisions; • Recommend the creation of exceptions applicable to affordable housing; or • Recommend toamend the local government comprehensive plan and corresponding regulations, ordinances, and other policies Mr. Chaney discussed the following ways tomake housing affordable: 1 • Increase the income of the household needing assistance • Decrease the interest rate on money you borrow to make affordable housing • Decrease housing-related debt • Reduce the cost of building He reviewed the summary of AHAC responsibilities: • Review existing plans, policies, and procedures, and laws that impact affordable housing development • Recommend improvements to existing policies or create new incentives that encourage/facilitate affordable housing • Produce a report that recommends and evaluates,at minimum,the eleven (11) incentives required by s. 420.9076(4) • Approve the final report by "affirmative vote of a majority of the membership of the [AHAC] taken at a public hearing" He noted staff will assist the AHAC in meeting its obligations. Mr. Chaney shared the Committee will be reviewing five(5) of the eleven (11) required strategies at today's meeting and the final six (6) required strategies at the December 9 meeting. Dates will be determined both for the Public Hearing and the presentation of the AHAC Report to the Town Council. He stated the report is due to the elected officials by December 31 or as soon as possible so the timeline is compressed. Mr. Chaney reviewed the following five (5) incentive strategies: 1. Expedited Permitting a. The processing of approvals of development orders or permits for affordable housing projects is expedited to a greater degree than other projects b. The time it takes to review development approvals is a factor in the overall cost of a project c. Increased development costs may lower overall prospects for affordable housing Chair Joseph clarified whether the report needs to include recommendations. Mr. Chaney responded that report recommendations are not required. Mr. Chaney shared Florida examples of Expedited Permitting. Mr. Chaney asked Mr. Ramirez or Mr. Rumpf if they had anything to add from the City's perspective. Mr. Ramirez noted this incentive has been in place for a while in the City. 2 Mr. Rumpf acknowledged the ordinance has been in place for a while but in 2011 the Workforce Housing Project became eligible for expedited review. Mr. Chaney asked the Committee to share their perspectives or experiences with expedited processing. Chair Joseph noted it is a good policy, but it does always work out the way it is intended. She said if she were to make a recommendation to add to this policy it would be a language change. She suggested adding language that says "Designated housing expediter on staff works to resolve housing issues." She said one individual from the lender should be designated. Vice-Chair Fischer asked staff how many developers take advantage of the expedited review each yea r. Mr. Rumpf responded they do not see many requests for larger projects, but they have for Centennial multi-family projects. Chris Mitchell joined the meeting and shared his housing rehabilitation contractors have been advised on the expedited process once they receive a permit number. Mr. Chaney suggested Committee members could draft any language changes for the next meeting. Mr. Fischer believes using"singe staff liaison" is a mistake since there should be a backup person. Mr. Ramirez noted the seven (7) business day review often does not happen. Commissioner Romelus asked who is supposed to be the single staff liaison from the City for the expedited review. Mr. Rumpf suggested multiple people should be able to expedite even if one lead person is identified. Commissioner Romelus inquired about the status of the digital tracking system that was implemented. Mr. Rumpf stated that system is working, and it is successful. They are in Stage 2 of the implementation, which is permit intake and review. Commissioner Romelus suggested there should be a timeline integrated into the tracking system and be made available to the public. Mr. Rumpf said he will bring more information on the tracking system to the next Committee meeting. 3 Chair Joseph suggested a stamp or indicator should be placed on an expedited affordable housing project. Mr. Corbit asked if there are any tax incentives or rebates available for CRA projects. He said there might be Sadowski Funds available this year. Commissioner Romelus responded there are CRA funds available and asked Mr. Corbit for more clarification on his question. Mr. Corbit said it would be helpful to know what areas offer incentives or rebates to entice developers to build in specific locations. Discussion ensued about recommended language changes to the ordinance and timeline of the review period. 2. Ongoing Regulatory Review Process a. The establishment of a process by which a local government considers, before adoption, policies, procedures, ordinances, regulations, or plan provisions that increase the cost of housing b. Requires local governments to consider how proposed governmental actions may affect the cost of housing development c. This process does not require any specific action to be taken but it does require local government to consider how proposed actions affect the cost of housing development d. Acts as a housing impact statement e. Process requires staff to determine if various decisions have a financial impact on affordable housing and the actual dollar impact f. Train or identify key housing staff to conduct this housing economic impact analysis Mr. Chaney shared examples of this incentive from Citrus County and Levy County. Mr. Chaney reviewed the SHIP Annual Report and Local Housing Incentives Certification form. Committee reviewed the language of Boynton's Beach Local Housing Assistance Plan. Mr. Ramirez confirmed he will be the staff member in charge of reviewing all policies, procedures, and ordinances. Mr. Chaney asked the Committee to share their thoughts on the regulatory review process. Mr. Mitchell recommended a language change to the state is regarding the Community Improvement Division. It needs to reflect other City divisions and the AHAC Committee as well. 4 Chair Joseph asked what efforts are being made to increase the supply of affordable workforce housing. Mr. Rumpf said more projects may be seen in the next couple of months that would meet those needs. Lately, the City has been focused on incentives. 3. Printed Inventory of Locally Owned Lands a. Also known as a Surplus Lands Inventory b. The preparation of a printed inventory of locally owned public lands suitable for affordable housing c. Reducing or eliminating the cost of land decreases the cost of developing affordable housing d. Statutory Requirement since 2007 e. See FHC Website for Surplus Lands Guidebook f. Surplus Land Statute requires LGs to prepare an inventory list of lands owned in fee simple that are "appropriate for use as affordable housing" g. Any parcels that can be developed for residential purposes are appropriate for use as affordable housing h. Parcels on this list can be used for a variety of purposes: i. Sale or donation for affordable housing develop ii. Sale with proceeds placed in a local affordable housing trust fund Mr. Chaney reviewed the Surplus Lands Inventory flow chart. Mr. Chaney reviewed the language in Boynton Beach's Local Housing Assistance Plan regarding this incentive. Mr. Chaney asked the Committee to share their thoughts on this incentive. Mr. Rumpf confirmed the City has been inconsistent with this effort and he stated it does not currently exist in the Planning and Zoning Department. Mr. Ramirez noted Mr. Mitchell just provided him a list and map of available land and he will share a PDF with the Committee. Mr. Fischer asked about fee payments in lieu of taxes and whether those funds are available. Mr. Rumpf said he would check on that information and bring back an answer for the next meeting. Commissioner Romelus said the list of available properties should be easily accessible and available on the City website. 5 Commissioner Romelus discussed one of the projects recently presented to the CRA included affordable housing in perpetuity. She suggested finding ways to incentivize this concept for developers. 4. Modifications of Street Requirements a. Example:An allowance for parking on only one side of the street i. Reduces the required width for the road, reduces paved area and accompanying drainage/water retention (and reduces those resulting costs) ii. This design allows for parking on the street instead of garage/carport iii. This approach may require a public hearing. Allow administrative approval of flexible options iv. Avoid unintended consequence of creating a substandard neighborhood Mr. Rumpf said, generally, the City's engineering standards have prevailed, and it has not been something that Planning and Zoning has considered. Mr. Chaney asked the Committee to share their thoughts on this incentive. Mr. Fischer asked if there is any provision in the Code that allows for on-street parking to satisfy requirement for development. Mr. Rumpf confirmed there are provisions specifically for properties and projects that front designated on-street parking spaces. Mr. Rumpf noted there are pros and cons to this incentive. S. Transit Oriented Development a. The support of development near transportation hubs and major employment centers and mixed-use developments b. Decrease transportation costs to increase house affordability c. Require or incentivize affordable housing development around centers of opportunity through overlay districts d. Reduce regulatory costs (ex. Parking requirements) e. Create and implement community plans around centers of employment/transit f. Use in concert with other regulatory incentives offered by the AHAC Mr. Chaney asked the City staff if there have been any recent transportation-oriented developments. Mr. Rumpf discussed the Transit Oriented Development (TOD) growth in the Downtown area. Discussion ensued about TOD growth and timeline of ordinances. 6 Mr. Fischer suggested the City evaluates the TOD to require workforce or affordable housing. Mr. Mitchell asked if this incentive could be address with a Land Trust. The Committee discussed the concept of Community Land Trusts. Commissioner Romelus asked Mr. Chaney to share more information on Housing Authorities. Mr. Chaney responded he will follow up in 2022 on an opportunity to share a presentation on Housing Authorities. Discussion ensued about the frustration with the Housing Authority and the auction of local land parcels. Mr. Chaney confirmed the final six (6) strategies will be presented at the next meeting. III. Public Audience None. IV. Next Meeting The next meeting will be held on December 9, 2021 at 9:00 a.m. IV. Adjournment The meeting was adjourned by Chair Joseph at 3:21pm. [Minutes prepared by T. Baclawski, Prototype, Inc.] 7