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AHAC Minutes 10/07/2013 Affordable Housing Advisory Committee Minutes October 7 , 2013 MINUTES OF THE COLLIER COUNTY AFFORDABLE HOUSING ADVISORY COMMITTEE MEETING October 7, 2013 Naples, Florida LET IT BE REMEMBERED that the Collier County Affordable Housing Advisory Committee met on this date at 3:00 PM in REGULAR SESSION in Administrative Building "F," 3`d Floor, of the Government Complex, Naples, Florida, with the following Members present: Vice Chair: Christian Davis John Cowan Alan Hamish Clyde Quinby Excused: Chairman Steve Hruby Albert Batista Raymond Cabral Patricia Fortune Absent: Gerald Murphy Mark Strain ALSO PRESENT: Kim Grant, Director—Housing, Human & Veteran Svcs. Elly McKuen—Operations Analyst Jason Rummer—Public Services — Operations Analyst Priscilla Doria— SHIP Grant Coordinator 1L. [34 COLLIER COUNTY AFFORDABLE USING ADVISORY COMMITTEE 2013 OCT -8 PM 12: 25 CLERK OF COURTS AGENDA Board of County Commission Chambers Collier County Government Center 3299 Tamiami Trail East, 3rd Floor Naples,Florida 34112 October 7, 2013 3:00 PM COMMITTEE MEMBERS Steve Hruby,AHAC Chairman Raymond Cabral,AHAC Committee Member Christian Davis,AHAC Vice-Chairman Patricia Fortune,AHAC Committee Member John Cowan,AHAC Committee Member Y Clyde C.Quinby,AHAC Committee Member Alan Hamisch,AHAC Committee Member Gerald Murphy,AHAC Committee Member Mark Strain,AHAC Committee Member Albert Batista,AHAC Committee Alternate COLLIER COUNTY STAFF Kim Grant,Director, Housing, Human and Veteran Services Elly Soto McKuen,Operations Analyst Priscilla Doria,SHIP Grant Coordinator NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER PRIOR TO SPEAKING. ALL REGISTERED SPEAKERS WILL RECEIVE UP TO THREE (3) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. DURING COMMITTEE DISCUSSION, COMMITTEE MEMBERS MAY ASK DIRECT QUESTIONS TO INDIVIDUALS. PLEASE WAIT TO BE RECOGNIZED BY THE CHAIRMAN, OBTAIN A MICROPHONE,AND STATE YOUR NAME AND AFFILIATION FOR THE RECORD BEFORE COMMENTING. ANY PERSON IN NEED OF A VERBATIM RECORD OF THE MEETING MAY REQUEST A COPY OF THE VIDEO RECORDING FROM THE COLLIER COUNTY COMMUNICATIONS AND CUSTOMER RELATIONS DEPARTMENT OR VIEW THE VIDEO ONLINE AT WWW.COLLIERGOV.NET. IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS MEETING, YOU ARE ENTITLED, AT NO COST TO YOU, THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT. ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNTY COMMISSIONER'S OFFICE. I y AHAC Meeting October 7,2013 Item#3A 1. CALL TO ORDER 2. ROLL CALL OF COMMITTEE MEMBERS AND STAFF 3. AGENDA AND MINUTES A. Approval of today's agenda B. Approve Revised AHAC Minutes—August 19,2013 C. Approve AHAC Minutes—September 9,2013 4. INFORMATION ITEMS A. Affordable Housing Model—Staff B. Board of County Commission Workshop(October 1,2013)-Staff C. PUBLIC COMMENT a. Persons wishing to speak must register prior to speaking. All registered speakers will receive up to three(3)minutes unless the time is adjusted by the Chairman. D. DISCUSSION ITEMS AND PRESENTATIONS E. STAFF AND COMMITTEE GENERAL COMMUNICATIONS F. ADJOURN a. Schedule for next meeting: November 4,2013 October 7,2013 1. CALL TO ORDER Vice Chairman Davis called the meeting to order at 3:07 PM and read the procedures to be observed during the meeting. 2. ROLL CALL—COMMITTEE MEMBERS AND STAFF Roll Call was taken. A quorum was NOT established; four(4) voting members were present. Vice Chairman Davis elected to go forward with an"Informational Meeting." 3. APPROVAL OF AGENDA AND MINUTES A. Agenda None. B. AHAC Meeting Minutes—August 19,2013 None. C. AHAC Meeting Minutes—September 9,2013 Vice Chairman Davis asked the secretary to research the number of voting members at time of roll call. 4. INFORMATION ITEMS A. Affordable Housing Model Staff gave a slide presentation which outlined an Affordable Housing Model Revised Draft for additional discussion and input. Kim Grant indicated the revised draft was based on feed back received at the September 9, 2013 AHAC meeting. She proceeded in a"Workshop"environment and reviewed each slide and requested the Advisory Committee's guidance on determining factors. (Slide Presentation pages indicated) The Advisory Committee (AC) directives are below each indicator. Right Now Indicators: - Key Planning Elements and Data Considerations (Slide 6) - Want current information? AC: Use more current information. - AMI (Slide 8)—Income Groups 80%or less or go higher? Staff recommended using 80%or less. AC: At 80% it would most likely to catch the market for those folks in need of affordable housing. Key Planning Elements and Data Considerations: (Slides 9-10) Kim Grant explained the Environmental Elements used for consideration were Interest rates,Persons per household and Job growth. She reviewed discussion points as being; Source of the data, How to interpret/use the information and the red-yellow-green scale chosen. The scale recommended by Staff identifies needs: • Green—Do not need to worry about more affordable housing. • Yellow—May need to start thinking about affordable housing. October 7,2013 • Red—May need to start taking action to have more affordable housing available. Average Median Income: (Slide 11) She noted an Appendix,which gave a description of all of the entities used, was previously provided to the Advisory Committee as an email attachment. Discussion was made on AMI and using 80%of AMI with median housing prices. AC: Agreed Population Growth: (Slide 12) Kim Grant read source into record: National Association of Home Builders(NAHB)/Wells Fargo Housing Opportunity Index (HOI)—NAHB is a trade association that helps promotes the Policies that make housing a national priority and that all Americans have access to safe, decent and affordable housing, whether they choose to buy a home or rent. The NAHB/Wells Fargo Housing Opportunity Index (HOI) is a measure of percentage of homes sold in a given area. Jason Rummer distributed the Best and Worst 20 Year Review Charts on Median Housing Price, Median Income and Housing Opportunity Index (HOI)Percentage for the Naples-Marco Island Metropolitan Statistical Area (MSA). (See attached) He explained the Best 20 Year Review denotes the AMI was half of the median housing. The worst years were from 2005 1st quarter-2008 2nd quarter. The average housing costs were between$296,000- $300,000. When home prices rapidly increase the opportunity to purchase one falls quickly. 48-49% of Collier County residents are not able to afford an average median house. When the median AMI drop below 62.5 the affordable index goes down. Vice Chairman Davis indicated the AMI is well below HOI due to one of the problems during 2005 through 2008 negative amortization loans. Lenders allowed buyers to qualify for negative amortization mortgages. Kim Grant summarized; 80%of AMI is on border line of yellow and red scale. The breaking point between red and yellow is going to be equal to what the person at 80% AMI could buy a median priced house. It was noted there is an affordable housing deficit; 38.8% share of homes are affordable for median incomes. There is a need for 50% share of affordable homes which indicates the need for affordable housing. She read source into record: University of Florida Shimberg Center for Housing Studies; the Shimberg Center conducts research into housing policy and planning, with a special focus on housing affordability for Florida residents. They provide data and applied research to state agencies, local planners, the housing industry, non profits, and others involved in shaping housing policy in Florida. This is a well regarded data source. AC: Agreed. October 7,2013 Median Sales Price: (Slide 13) She continued to read source into record: Federal Bank of Atlanta— The Federal Reserve Bank of Atlanta is part of the central bank of the United States. The Federal Reserve System consists of twelve (12)Reserve Banks located around the country and the Board of Governors in Washington, D.C. The Atlanta Fed territory covers the Sixth Federal Reserve District, which includes Alabama, Florida, and Georgia, and portions of Louisiana, Mississippi, and Tennessee. The Atlanta Fed and the other Reserve Banks play an important part in all three of the Fed's functions: monetary policy, bank supervision and regulation, and the operation of a nationwide payment system, etc. This is considered to be a very reliable source. Clyde Quinby asked where the data for the Median Sales Price comes from for the local market. Kim Grant did not know if Habitats sales prices are figured in to the statistical median price for the County and will find out. She read source into record. The Federal Financial Institutions Examination Council (FFIEC) is a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination offinancial institutions by the Board of Governors of the Federal Reserve System (FEB), the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB), and to make recommendations to promote uniformity in the supervision offinancial institutions. They are a well regarded organization for producing data and do include local data. Collier County tracks real property sales data. Jason Rummer explained the FFIEC uses all the Collier County Census Tracts to produce reports. Staff asked"How should we set the border line between red and yellow." (Right Now: Key Planning Elements and Data Considerations—Slide 13) AC: Back at 2 % times. Vice Chair Davis recommended directly correlating the %of Collier County residents that meet the AMI is where the benchmark should be set. Jason Rummer distributed and reviewed The Number of Persons per Household is derived from taking census tract population and dividing by the number of households. (See attached) In the 32 census tracts FY 2013 used for the model the following applied: • 74,552 -Housing Units • 157,058 -2013 Population • 50,241 —Number of Households • 3.1 —Average Persons per household • $45,725 —Average Median Income • 69.6% -% of Collier County AMI A October 7,2W 3 In the remaining Collier County Census Tracts FY 2013 the following applied: • 119,977—Housing Units • 164,462—2013 Population • 69,276—Number of Households • 2.4—Average Persons per Household • $86,828—Average Median Income • 132.2%-%of Collier County AMI For the entire Collier County Census Tracts FY 2013 the following applied: • 194,529—Housing Units • 321,520—2013 Population • 119,517—Number of Households • 2.7—Average Persons per Household • $65,700—Average Median Income • 100.0%-%of Collier County AMI Vice Chairman Davis recommended the Red, Yellow, Green Housing Opportunity Index chart would stay stagnant. It was noted the Red, Yellow Green Indicator Charts would be require they be updated quarterly. Staff will research a more collective way to collect data from local source comparable to what FFIEC put out to get Median Sales Price data. Staff will restructure the Red, Yellow and Green Chart similar to what was done with AMI Key Planning Elements were reviewed and discussed: • Interest Rates (Slide 17) CA: Should table, need more data. Turn this into a Data Point. • Number of persons per household (Slide 18) CA: Leave in. • Job Growth (Slide 19) CA: Turn this into a Data Point. Staff recommended 32 of 70 census tracts be the data used for the Model. ➢ Where 100%of population has less than AMI ➢ 48.8%population (2nd Quarter, 2013) ➢ AMI for this population decreased 9.7% from last year Vice Chairman Davis expressed concern with not seeing the whole picture with a certain amount of perceived prejudice. He asked if numbers be ran with all census tracts and all AMI,population and home values. Staff will do model with both sets of 32 and 70 census tracts and bring back to the next meeting. When you have blended numbers(70 census tracts) it is hard to show the need for affordable housing. October 7,2013 Wages versus Rent Chart (Slide 29) • Fair Market—2013 - 1 Bedroom- $896 - 2 Bedrooms - $1,116 - 3 Bedrooms - $1,457 Vice Chairman Davis stated he liked the Projection part of the presentation but would like to see the changes incorporated for himself and Committee Members who were not able to attend the meeting today. Kim Grant stated Staff will make tweaks suggested and run numbers for both the 32 and 70 census tracts for the model. B. Board of County Commission Workshop (October 1,2013) - Staff Kim Grant reported at the BCC Workshop on Advisory Committees there was discussion on maintaining the AHAC but only performing the tasks that are statutorily required. Staff will follow-up to see if there was any Board action. 5. PUBLIC COMMENT (None) 6. DISCUSSION ITEMS/PRESENTATIONS (None) 7. COMMENTS—STAFF/COMMITTEE MEMBERS (NONE) NEXT MEETINGS: Regular Meeting: November 4,2013 Location: BCC Chambers,3rd Floor,Administrative Building"F" The Informational Meeting adjourned at 4:52 PM. . c