AHAC Minutes 11/04/2013 MINUTES OF THE COLLIER COUNTY
AFFORDABLE HOUSING ADVISORY COMMITTEE
MEETING
November 4, 2013
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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," 3rd Floor, of the Government Complex, Naples, Florida, with the
following Members present:
Chairman: Steve Hruby
Vice Chair: Christian Davis
Raymond Cabral
John Cowan
Patricia Fortune
Gerald Murphy
Clyde Quinby
Mark Strain
Excused: Albert Batista
Absent: Alan Hamish
ALSO PRESENT: Kim Grant, Director—Housing, Human & Veteran Svcs.
Elly McKuen— Operations Analyst
November 4,2013
1. CALL TO ORDER
Chairman Hruby called the meeting to order at 3:03 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 established; eight(8) voting members were present.
Mr. Murphy and Mr. Cabral arrived after roll call was taken.
Mr. Murphy arrived at 3:04 pm.
3. APPROVAL OF AGENDA AND MINUTES
A. Agenda—November 4,2013
Mr. Cowan moved to approve the November 4, 2013 Agenda as presented. Second by
Vice Chairman Davis. Motion carried unanimously; 7-0.
Mr. Cabral arrived at 3:05 pm.
B. Approve Revised AHAC Minutes—August 19,2013
Mr. Cowan moved to approve the revised August 19, 2013 Minutes as presented.
Second by Vice Chairman Davis. Motion carried unanimously; 8-0.
C. Approve Revised AHAC Minutes—September 9,2013
Mr. Cowan moved to approved the revised September 9, 2013 Minutes as presented.
Second by Mr. Quinby. Motion carried; 8-0.
D. Approve AHAC Minutes—October 7,2013
On October 7, 2014 an "Informational Meeting"was held. Approval of minutes is
not required.
4. INFORMATION ITEMS
A. Affordable Housing Model
Staff gave a slide presentation which outlined an Affordable Housing Model— Working
Draft. Staff provided a hard copy of the slide presentation Affordable Housing Model—
Working Draft revised November 4, 2013 for discussion and input, 2013 Rental Market
Study:Affordable Housing Needs (University of Florida) and the AHAC Alternative
Model/Index Chart and Information dated October 2, 2013.
Kim Grant reviewed items addressed on October 7, 2013 and revisions incorporated in
Working Draft as follows:
• Model to 140%AMI rather than 80%
• Show four(4) core elements only on the red/yellow/green model
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November 4,2013
• 100% of Census Tracts were used
• Habitat included or not—not to skew
• AMI data source to be utilized—HUD of Wells Fargo
• Maintained data on rental and calculated projections of need.
Kim Grant explained the task given to HHVS, in which AHAC has been supporting
HHVS on, has been a projection model. The intent was to replace what was in the prior
housing element; which just had a number. HHVS has been searching for a way to do a
reasonable projection basis.
The delta that exists today was added into the working draft. 38.3 %of available housing
units fall below the 100%AMI to serve 48.8%of the population. 20,425 units are
needed including 400 plus rental units for those less than AMI; an indicator there is a
need. More people are living in houses and/or more people are cost burden to be in the
houses they are in.
Chairman Hruby stated he agrees with a projection model demand and need but noted
the other half of the equation is to create a change indicator. The change indicator will
drive the projection.
Mr. Strain stated he did not agree with the basis used to establish the need. Don't agree
that a negative number was used because the recession opened up a lot of affordable units
that were not there before. The AHAC chose to allocate 4 people per household but the
State of Florida uses 6 people per household. He stated using 4 persons per household
makes the need more generous in showing more of a need then there really is.
Ms. Fortune explained the AHAC subcommittee has been working on the model for
over a year and the market fluctuates quickly as it did back in 2005 and 2006. We
struggled to come up with a number where to start. She recommended placing the
change indicator in the first position and the projection of need in the second position.
Mr. Strain voiced concern when the AHAC submits the Affordable Housing Model to
the BCC with a recommendation to change the GMP and it will impact tax payers and
businesses both in millions of dollars in costs. Golden Gate has over 1,000 affordable
foreclosed units in Golden Gate.
Mr. Hruby noted affordable rental units need to be addressed. This is where the biggest
demand and need is.
Mr. Murphy stated many foreclosures are being purchased by investors. The investors
are required to hold the purchases for 6-8 years. The investors will rent out at current
market rates. It will be years before those homes will be available to purchase. He
indicated the only way affordable housing units become available is when someone living
in an affordable unit is able to purchase a home. The inventory for affordable housing
dropped. New rentals will be created with new construction.
Kim Grant reviewed the Key Planning Elements and Data Considerations.
• Average Median Income
• Population Growth
• Median Sales Price
• Housing Opportunity Index
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November 4,2013
Chairman Hruby suggested projecting out quarter by quarter.
Mr. Cabral asked Staff if they reviewed any models that are working.
Jason Rummer responded other models reviewed were from New Jersey and
Connecticut. Staff tried to find similar communities. He advised the other models used
population growth, availability and how to address bringing in more units that are
affordable.
Discussion was made on population growth in conjunction with indicators, affordable
housing units approved, keeping math a simple equation,the review of elements quarterly
and affordable housing permits pulled.
Mr. Strain suggested factoring in the affordable housing that have been approved but not
yet built.
Kim Grant summarized conclusions as follows:
• Use one (1) set of components at various levels of AMI and Housing Opportunity
Index charts
• Incentive cap turned off and on to be determined
• Refine population projection numbers and use as another element of package or
maybe another indicator
• More interest in available and/or available to be built needs to be used as an
indicator
• Reviewed on a quarterly basis as oppose to giving a number.
If interest rates sky rocket, the interpretation of information may change.
Maybe the methodology would be to:
• These are the factors
• This is how we are going to report on them
• These are our data sources
• Look at comprehensively
• Make a recommendation.
Public Speakers
Taylor McLaughlin—An Affordable Housing Specialist and Lender
Debi Mahr-Homeless and Hungry Coalition
B. Volunteer—DRUDREF Ranking and Review Committee—Grant Application
Review
Kim Grant asked for a member of AHAC to sit on the Ranking and Review Committee
in January. The volunteer will be required to attend a meeting and review and rank grant
applications at their leisure. It will take approximately 10-20 hours.
Mr. Cabral volunteered.
5. PUBLIC COMMENT
(None)
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November 4,2013
6. DISCUSSION ITEMS/PRESENTATIONS
(None)
7. COMMENTS—STAFF/COMMITTEE MEMBERS
Mr. Murphy moved to adjourn. Second by Mr. Cabral. Motion carried unanimously, 8-0.
NEXT MEETINGS:
Regular Meeting: December 2,2013
Location: BCC Chambers,3rd Floor,Administrative Building"F"
There being no further business for the good of the County,the meeting was adjourned
at 5:00 PM by order of the Chairman.
COLLIER COUNTY AFFORDABLE
Ho _ i. ADVISORY COMMITTEE
Ai/
Stepr rust,' Chairman
The foregoing Minutes were approved by Committee Chair on cCT li�' z9/4, , 2013,
"as submitted" OR "as amended" F 1.
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