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AHAC Strategic Plan 03/02/2023 DraftMarch 2, 2023   1 MINUTES OF THE COLLIER COUNTY AFFORDABLE HOUSING ADVISORY COMMITTEE STRATEGIC PLAN SUBCOMMITTEE MEETING Naples, Florida, March 2, 2023 LET IT BE REMEMBERED, the Collier County Affordable Housing Advisory Committee Strategic Plan Subcommittee, in and for the County of Collier, having conducted business herein, met on this date at 10 a.m. in REGULAR SESSION at the Collier County Growth Management Department Building, Conference Room #609/610, 2800 Horseshoe Drive North, Naples, Florida, with the following members present: Chairman: John Harney Jennifer Faron Steve Hruby (excused) Paul Shea (also attended) County Staff Members Also Present: Cormac Giblin, Interim Director, Economic Development & Housing Mike Bosi, Director, Planning & Zoning Jaime Cook, Director, Development Review Jamie French, Department Head, GMD Susan Golden, Immokalee Housing & Family Services Derek Perry, County Attorney’s Office Chris Montolio, Operations Analyst, Economic Development & Housing Kelly Green, Accountant, Economic Development & Housing March 2, 2023   2 Any persons in need of the verbatim record of the meeting may request a copy of the audio recording from the Collier County Growth Management Department. 1. CALL TO ORDER & ROLL CALL Chairman Harney called the meeting to order at 10 a.m. A quorum of three was present. 2. APROVAL OF AGENDA AND MINUTES a. Approval of the February 2, 2023, meeting minutes Ms. Faron made a motion to approve the agenda. Second by Mr. Shea. The motion passed unanimously, 3-0. b. Approval of today’s agenda (No changes; approved) 3. DISCUSSION ITEMS a. AHAC Strategic Work Plan Development Chairman Harney reported that:  After discussing bylaws, our focus of what we want to accomplish has changed.  After the state set up AHAC programs with bylaws, no one has changed them.  Our focus is to develop a strategic plan for this year that can be modified over time.  The annual report we provide to the state is a point-in-time annual report. It’s important to look back at it to see what we accomplished and where we stand.  It’s important to track these items after AHAC approval so we can see who’s considered them, how long they’ve had them and if they need encouragement from us to move them forward.  He created a spreadsheet with the items AHAC has discussed over the last year so we can track them through various approval processes.  He wants staff to determine if he covered all items and where they stand. Mr. Giblin said his spreadsheet list is inclusive and the approval needed for each item depends on what type of item it is. For example, most can be passed without the need for state approval. This will focus the subcommittee on what’s important to work on for the year. A discussion ensued and the following points were made:  Tracking is important to see what’s going on after approval.  AHAC approval should top the list.  Items could be classified by function, such as promotion at NIMs and our ideas to the BCC through Commissioner Hall.  The AHAC should have the ability to hear proposals.  Records should be grouped in terms of priority and assigned to a staff and AHAC liaison.  A timeline will help target the AHAC’s efforts.  Add details about what occurred after the AHAC’s approval.  Add tactical information about what’s needed now.  Look at projects that weren’t completed or started.  Look back at what the AHAC did and what worked, an accountability document.  Mr. Giblin was asked to organize the spreadsheet and create a tracking form.  Promotion will be needed to get some items to move forward. March 2, 2023   3 [The subcommittee discussed the spreadsheet, categories and each item’s status.] Mr. Bosi reported that:  There are guest houses in the Urban Estates and the Board of County Commissioners directed us to consider allowing those to be rented for workforce housing.  The question is whether it interferes with the property owner’s homestead exemption; we need to explore that with the Property Appraiser.  We need to understand the implications from the impact-fee status.  The AHAC can determine what the opportunities are.  There are some opportunities within state statutes that say that if you allow for guest houses to be rented, you can have regulations to dedicate them to affordable housing.  Staff will provide the AHAC with criteria so it can make a recommendation.  We’re at the very beginning of this process. A discussion ensued and the following points were made:  Impact fees are being treated differently by every county, so there’s flexibility on how Collier County can approach that.  This would just involve impact fees for guest houses. Chairman Harney asked about the status of the Rural Fringe. Mr. Bosi reported that:  Amendments to the Rural-Fringe Mixed-Use District have been transmitted to the state, which has provided no comments related to those proposals and it remains at the local stage.  One proposal is 12.2 units per acre for affordable housing.  It needs Planning Commission review at an adoption hearing; the Planning Commission would then make a recommendation.  The Board of County Commissioners would then either adopt or reject it in April or May.  We need the AHAC to make a recommendation.  We need to consider Adjacent Dwelling Unit (ADU) rules and a strategy.  We need to determine the knowns and bring those to the AHAC for discussion and direction.  The AHAC would make a recommendation on a potential draft of what amendments would be made to the Land Development Code.  Within the Growth Management Plan, there are specific restrictions on the density allocated within the Estates Zoning District.  The GMP may need to be amended to allow for additional density within single-family lots because they’d be going from one unit to two units. That’s an increase in density on a parcel of land that’s restricted to one unit per 2¼ acres.  That may lengthen the process involving when items can be brought forward Planning Commission and the Board of County Commissioners consideration. Chairman Harney asked if there’s been any estimate or anticipation of what the number of units would be that might be developed. Mr. Giblin said that’s what the study will determine. Mr. Bosi said we need to develop information and see what needs to be amended to make this a reality. A discussion ensued and the following points were made:  Commissioner McDaniel asked us to look into this in January. March 2, 2023   4  The number of developers who do this will depend on rules the AHAC comes up with.  We need to understand what’s needed and what should be amended to move forward.  Commissioner Saunders has said no one has asked him to initiate this.  We need to hold at least two public meetings in the Oakes Estates and Logan Woods, the two largest Urban Estates areas, to get feedback on whether they’d support this.  Many ADUs were built there without permits.  Most are probably not being rented for personal family use.  The standard rules now are that guest houses go through Site-Plan approval, Building Permit approval and zoning.  The rental prohibition is outlined in the LDC. Staff often copies and pastes that into a permit as an informational comment to ensure property owners know up-front that rentals are not allowed.  An amendment would lift the restriction that they can’t be rented out for commercial purposes.  The limitation on a guest house is it can be up to 40% of the total square footage of the primary structure.  There are limitations on who can occupy them and limitations on renting for commercial use.  The site would still need to meet all requirements for site coverage and drainage, etc.  The AHAC’s recommendation could be that guest houses can be used as an additional source of affordable housing.  If we allow it to be 40% of the primary residence, we’ll have a hard time selling the concept. We need to cap an ADU because we don’t want more people and traffic.  NIMs will be troublesome if property owners can build a guest house based on a percentage of their own house.  Staff has reviewed guest houses that are bigger than the primary houses, 2,000-3,000 square feet, but most are 700 square feet.  What other restrictions would be needed if you rent them out? Chairman Harney said it’s important to look at what the environment is like to build in Collier County. Do we have a simple place for developers to see those rules? Mr. Giblin reported that:  That was part of the passage of the Community Housing Plan.  Community outreach and engagement are pillars of that.  There were four or five initiatives, including community engagement and advocacy.  The BCC designated money to hire a PR firm or marketing company.  The county developed www.CollierCountyHousing.com, a one-stop website for housing and affordable housing in Collier County.  Tabs cover various questions, such as “I need housing,” or “I provide housing.”  There’s a list of developer incentives and applications and a tab for developer opportunities.  It’s relatively current and updated by staff.  The information AHAC is working on can be added to that website. Ms. Faron provided a report about the DSAC meeting:  She attended her first meeting yesterday and DSAC was open to what the AHAC is trying to accomplish.  The DSAC seemed open to allowing an AHAC member to join the group as a voting or non-voting member.  We’d invite a DSAC member to sit in on AHAC meetings. March 2, 2023   5  The DSAC is ultimately implementing the policies we discuss.  That connection point is important because it makes no sense to have a great policy that you can’t implement. Mr. French reported that:  Linking the two groups is something he’s discussed with DSAC member Bob Mulhere, a former planning and zoning director for the county who is now in the private sector with Hole Montes Engineering.  The DSAC would support a non-voting member and Bob would serve on this committee as a non-voting member to enhance the conversation.  Bob has over 40 years of experience and is an AICP fellow who has worked with just about every developer in the county and state.  He’s been a mentor to me and this staff for many years.  It’s helpful to hear the private sector’s issues.  We’ll look into amending the ordinance that created the AHAC and DSAC to allow a non-voting member, which could help if there isn’t a quorum.  This is about enhancing the conversation about removing barriers and adding industry insight on what’s coming in the future.  Staff will work with the County Attorney’s Office to move this forward.  The AHAC has a non-voting member, Michael Puchalla, executive director of the Collier Community Land Trust and HELP.  With the removal of Joe Trachtenberg, the AHAC will need to elect a chair and vice chair.  Ted Blankenship has been attending on behalf of Naples City Council, at the invitation of the board, but he’s not an official member.  The website should contain anything informational, such as impact fee, zoning and elevation information that a contractor may need.  We can try to enhance customer service and the experience so developers and property owners can find the highest and best use for their property.  We will enhance the website. Chairman Harney said the county needs 10 more companies as good or better McDowell Housing Partners and noted that the AHAC hears about things too late in the process. Mr. French said staff has a spreadsheet that’s distributed to commissioners by district and updated monthly that can be provided to the AHAC so they can see the status of developments and what’s coming up. If a business is coming here, there’s an associated housing need. Chairman Harney said that would be useful for the AHAC. Ms. Faron asked if there was a way to know where a project is in the process. If a meeting is coming up, it would be helpful for the AHAC to know about so they could send someone to attend as a supporter. Mr. French said it all starts with zoning, then site development and building. They’d see a pre-application so the AHAC could meet with staff to learn about it. Developers pay $500 for staff to do a cursory review of an idea to see if it would work. That doesn’t cover staff time, but it is helpful. The fee goes to the Enterprise Fund and gets applied to the application process if it moves forward, so developers get their money back. A discussion ensued and the following points were made:  AHAC members want to be alerted to meetings they could attend.  They want to be aware of affordable-housing projects coming up. March 2, 2023   6  Staff can provide the AHAC with a monthly list of NIMs.  A folio number search in CityView will show what’s coming up with a property.  Staff will provide the AHAC with what they’ve requested by Friday.  The AHAC needs to work with employers on housing needs; the Economic Development group works on that.  Affordable-housing issues are brought to the AHAC and then to the BCC, but sometimes what’s approved by the AHAC evolves into something different.  Housing, income and population statistics would be helpful for the AHAC.  Property insurance will increase 35-75%. That needs to be considered. Mr. Giblin reported that:  The BCC adopted the Housing-Demand Methodology. One of the main reasons we drafted the housing plan was due to the county’s housing affordability issue.  The methodology was developed to look at the gray area, how many units we needed and income levels we needed to target.  The methodology considers about 15 variables, such as population growth, the Census, income, building permits issued yearly, new entrants into the county, average household size.  It allows us to determine how many affordable units at different income levels are needed to satisfy that need at the adopted level of service.  The methodology specifies the gross numbers, but doesn’t specify how many studios, one- or two-bedroom units are needed. Chairman Harney noted that when the City of Naples looked at that, they found the greatest need was studios and single-bedroom units. That was not expected, and there’s nobody building that in the county now. If we have this information and we have an LDC that would support higher density, that’s something that should be on the county’s website to let developers know this is a need. Mr. Giblin said the market will build what they feel is needed, but we can incentivize for what we need. A discussion ensued and the following points were made:  How does this information translate into recommendations for the AHAC?  Needs in the City of Naples will be different from those in the county.  There are one-bedroom units being proposed in Golden Gate, but not enough to satisfy demand.  Statistics show there are more people living alone now.  Census data comes out around this time and is used to update county needs. Mr. Giblin provided a report on cost-burdened residents:  One housing plan point was cost-burdened residents paying more than 30% of their income for housing.  Collier County has 40,000 to 50,000 cost-burdened households. They live here, they’re paying more and it’s unaffordable.  The BCC’s goal, through the methodology, is to reduce that by 1% yearly.  The methodology tells us how many units we need and takes into account new entrants into Collier County, our business structure, what jobs are created and what people are expected to earn.  Many factors are involved in the methodology, with a goal to reduce overall cost.  About 120,000 households are involved, about 40% of the total. March 2, 2023   7 Chairman Harney noted that it would take 30 years to resolve that. Our next consideration is to work with shopping center owners to redevelop shopping centers. Mr. Bosi provided an update about redeveloping shopping centers:  The GMP amendments for the last of the housing initiatives are going before the BCC on March 28.  Within that, we have an increase in density up to 25 units per acre if affordable- housing is provided.  The county is incentivizing the allocation of 25 units an acre within commercial centers to see if a shopping center might not be the highest and best use.  Residential multifamily apartments may be a higher and better use for a portion of that shopping center.  That’s the prime purpose of the GMP amendment, and to allow for that higher density.  The economy is moving away from brick and mortar.  We’re trying to get Courthouse Shadows to take half or 30% of their land and dedicate it to multifamily housing through an incentive.  The area has a full arrangement of infrastructure, public transit and walking opportunities. Ms. Faron noted that the trend across the country is for poorly performing retail centers to look at that concept. Coastland Center is probably not one of the county’s better performing asset and they are probably looking at ways to reinvest and revigorated. This will come as amendments are approved. An AHAC member could be part of that presentation when a group comes to present something with an affordable-housing component. She believes it will come naturally. Mr. Bosi said multifamily housing would add a customer base within walking distance to shop at a center. It doesn’t just increase rents. Incentivizing for this will add more vibrancy to a shopping center. Chairman Harney asked if there were any pending shopping center conversions. Mr. Bosi said there were none. Mr. French reported that:  There are 22 activity centers in Collier County. This has been built into our code for years.  Collier County is unique compared with the rest of the country. Business here chases rooftops. We’re a residential community.  Building permits show this is predominantly a single-family home market.  There’s not enough commercial or industrial to support the local economy that’s already here, the local households.  That adds to the complaint that our roads and the traffic are so congested because everything is forced to drive west to where retail centers are.  The county discussed this with Benderson Development and they weren’t interested. Instead, they added a Planet Fitness to fill a large vacancy. They believe there will be a revitalization effort in the area and retail will bring in more money.  Benderson is the largest shopping center developer in the country next to Kite Realty.  We’ve discussed this with Kite, which is in 23 states. It adds residential in Indianapolis and in the west, but it does not work in Collier County. March 2, 2023   8 Mr. Bosi said staff has incentivized this and has modified the Growth Management Plan to allow a shopping center to add 22 units per acre of residential, so when they eventually realize this isn’t a bad idea or there’s a future owner, they can take advantage of it because it’s already in place. [The AHAC removed that item from their spreadsheet.] Mr. French told the AHAC that:  They’ve spoken with the media and the public about this concept.  We don’t know why the BCC created Activity Centers.  He’d love to see Bed Bath & Beyond transformed because it’s on one of the county’s busiest intersections and is ripe for that.  Ownership is not interested. The owner has put the burden on tenants to make improvements.  We spoke to the YMCA about coming into an Activity Center when they were struggling to do something different there.  We can’t get anyone interested in Activity Centers. They’re either not receptive, it doesn’t fit or there isn’t enough value in it for them. Chairman Harney asked if the item on the list about AHAC members reaching out to national and affordable builders overlaps something already in place. He knows the county does this. Mr. Giblin reported that:  The county must have a product to sell, a piece of land or money on the table.  The last time they did it was through a Request For Information (RFI), which gets distributed by our Purchasing Department.  The idea was to widen our net and find a builder in Georgia or California, etc., that could do things differently.  We were pleasantly surprised and got 11 responses to the RFI. We got presentations from developers as far away as Colorado and California.  The next step after the RFI is a Request For Proposals, so we took the information we gained from the RFI and turned it into an RFP.  We sent out the RFP and got multiple hard proposals. That’s how the county reaches out to developers on a national scale. We need something on the table for them to look at us. Mr. French noted that Tallahassee has centers with four stories of commercial and eight for residential. We have height restrictions. Collier has looked at Orlando and its regional partnership with the University of Central Florida. Lake Nona in Orlando is something we could do here. We need to publicize our story, the Golden Gate City Overlay and what we’re doing in East Naples. A discussion ensued and the following points were made:  Our story needs to be on the county website, including what we’ve done, our successes and what we’re looking for.  The spreadsheet includes “reviewing current impact fee policies regarding affordable developments.” Staff is working on that and is considering a deferral for the golf course property. It’s 10 years now and the developer needs 20.  “Making a recommendation about building-height exceptions for affordable housing” is on the spreadsheet. There’s nothing in the LDC that says how high. March 2, 2023   9  One recommendation is affordable housing by right. An LDC section says that if you develop it under certain parameters, it removes controversy from the equation.  Conversion of commercial to residential has a specified setback limitation if they sit along major collector roads outside of activity centers that abut residential development. The setback is half the height of the building.  We need the economies of scale. The best way to do that is vertical, not horizontal.  The higher the building is, the more costly it will be due to elevators and other equipment. It’s cheaper to build three-story buildings with 100 units.  The City of Naples allows a 42-foot height requirement. The county needs to tell the public we have no intention of building 10-story buildings.  The intent of the GMP amendment was to make affordable-housing less intrusive.  Developers are gravitating toward three-story buildings now.  A three- to four-story profile may better fit the character of the community.  Height restrictions have changed since the building collapse in Miami and involve the distance from the coastline. The state said three stories or more. If it’s two stories over parking, that’s three stories.  It’s useful to look at the parking spaces required for homes. If fewer spaces are needed, that leaves more money for housing.  The county does offer builders alternative parking calculations and developers can even provide off-site parking with shuttles or walkable solutions.  Seed to Table has a parking agreement across the street. It’s also used as a park- and-ride for beach buses.  The required annual state report needs to be on the spreadsheet list.  AHAC asked staff what else they wanted the council to do. Mr. French told the AHAC:  Focus on anything related to affordable housing or high-density projects with an affordable housing element.  To garner support, we need to show we’ve provided maximum visibility before it goes to the Planning Commission or the BCC for consideration.  We don’t need AHAC approval on this one by law, but we’d be happy to provide a report and a brief description. We don’t want to trouble the developer with having to go before the AHAC because they’re paying their staff and there is no requirement for them to go before the AHAC.  We could provide the AHAC with a staff analysis on projects.  If an AHAC member wants to attend a meeting to show a project has the AHAC’s support, that would be helpful.  We need to bounce ideas off the AHAC.  Good workforce housing with transitional housing is needed.  We need to find our path within the county Community and Human Services Division, which provides an annual report to the AHAC.  We’re going to talk about planning future initiatives, how that ties in to economic development and how it’s performing, versus talking about grants.  We need to discuss how well we’re doing with advertising, the availability of funding, how programs are performing and who their customers are.  The AHAC doesn’t deal with financials, just policy, how it relates to the interaction with the community and how we can advance affordable-housing efforts. Mr. Shea called this a huge step for the AHAC, breaking down the county silos and bringing the council to the GMC. Maybe this will have an impact. March 2, 2023   10 Chairman Harney said he will put together everyone’s notes on the spreadsheet and provide that to Kelly. He asked if there was enough notice to post the AHAC vacancy. Mr. Giblin said it’s being posted. 4. PUBLIC COMMENT None 5. NEXT MEETING DATE TBD Conference Room 609/610 Growth Management Community Development Department Ms. Faron made a motion to adjourn. Second by Mr. Shea. The motion passed unanimously, 3-0. There being no further business for the good of the County, the meeting was adjourned by the order of the chairman at 11:48 a.m. COLLIER COUNTY AFFORDABLE HOUSING ADVISORY COMMITTEE STRATEGIC PLAN SUBCOMMITTEE ______________________________________ John Harney, Chairman