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AHAC Minutes 08/15/2023August 15, 2023 MINUTES OF THE COLLIER COUNTY AFFORDABLE HOUSING ADVISORY COMMITTEE Naples, Florida, August 15, 2023 LET IT BE REMEMBERED, the Collier County Affordable Housing Advisory Committee, in and for the County of Collier, having conducted business herein, met on this date at 9 a.m. in REGULAR SESSION at the Collier County Growth Management Community Development Department Building, Conference Room #609/610, 2800 Horseshoe Drive N., Naples, Florida, with the following members present: Chairman: Steve Hruby Vice Chairman: Jennifer Faron Arol Buntzman (via Zoom) Thomas Felke Gary Hains Commissioner Chris Hall Todd Lyon Hannah Roberts Paul Shea Andrew Terhune (via Zoom) Mary Waller County Staff Members Present: Jamie French, Department Head, GMCD Cormac Giblin, Planning Manager, Development Review, GMCD Sarah Harrington, Interim Dir., Housing Policy & Economic Development, GMCD Mike Bosi, Director, Planning & Zoning, GMCD Derek Perry, Assistant County Attorney Jaime Cook, Director, Development Review, GMCD Kevin Summers, Mgr., Technical Systems Ops, GMCD (via Zoom) Kristi Sonntag, Director, Community & Human Services Division, PSD Donald Luciano, Assistant Director, Community & Human Services Division, PSD August 15, 2023 Any persons in need of a verbatim record of the meeting may request a copy of the audio recording from the Collier County Growth Management Department. 1. CALL TO ORDER & PLEDGE OF ALLEGIANCE Chairman Hruby called the meeting to order at 9:03 a.m. and outlined guidelines for public speakers. 2. ROLL CALL OF COMMITTEE MEMBERS AND STAFF Ms. Harrington called the roll call. A quorum of nine was present in the boardroom; two joined via Zoom. [The pledge of allegiance was recited.] 3. APPROVAL OF AGENDA AND MINUTES a. Approval of today's agenda Vice Chair Faron asked to add a discussion item about establishing criteria for how and when AHAC provides a letter of support for a project. Chairman Hruby said it would go under discussion items as Criteria for Project Support Planning Commissioner Shea made a motion to approve the agenda, as amended Second by Commissioner Hall. The motion passed unanimously, 11-0. b. Approval of July 18, 2023, AHAC meeting minutes Ms. Waller made a motion to approve the July 18, 2023, meeting minutes. Seconded by Planning Commissioner Shea. The motion passed unanimously, 11-0. 4. INFORMATIONAL ITEMS AND PRESENTATION a. Golden Gate Golf Course — Rural Neighborhoods Update (Steven Kirk) Mr. Kirk detailed a PowerPoint presentation, telling the AHAC. • The golf course project is divided into two phases. • A 252-unit phase targets essential personnel, which is defined as employees of health care, education, and first -responder fields, with a second priority for government workers. • The second phase is 100-120 units of senior housing. • Veterans will be in both portions; the goal is 10% veterans in both. • Seniors are placed toward the lake on the site plan toward the bottom and essential service personnel are divided between nine buildings, 24- and 36-unit, three-story walk-up units of one, two and three bedrooms. • The site plan was approved in 2022 and the lease was approved this April. • This is truly workforce housing. The target population is incomes at 50%, 80% and 120% of AMI to target essential personnel. • There are 75 one -bedroom, one -bath units; 115 two -bedroom, two -bath units; and 62 three -bedroom units. PA August 15, 2023 • Although it's 50%, 80% and 120% AMI, rents are limited to 50%, 80% and 100% of AMI so there's a $300-$500 rent differential on market rates in the community. If you were at 120% AMI and 120% rent, you'd be very close to market rent. • The goal is to create a rate differential to attract people who commute to the community to work or who cannot take jobs here because they can't afford housing. At the 100% rent limitation, depending on bedroom size, there's a reasonable gap below market rent. • Most affordable housing targets 60% AMI or less, and in rare instances 80% AMI and under, but when you move from 60% to 120%, amenities are important to residents. You're competing against older market -rate properties that have many amenities. This amenity -rich community will attract employees to our community. Mr. Kirk detailed the timetable: • We expect to go back to the Board of County Commissioners for the second September meeting to amend the lease's legal descriptions and surveys to match the property better than what was done in April. And our potential borrower/potential lender, Prudential Real Estate and HUD-221(d) (4), prefers to have the borrower as the lessee. Rural Neighborhoods is assigning its lease to the borrower, so we'll be substituting the two borrower entities for Phase I and Phase II as the tenants. • The golf course has a moderate amount of arsenic, an environmental problem that will need to be cleaned up throughout the entire 120-125 acres. • Now that we're going first, we anticipate doing a soil management plan to remove arsenic. That means taking the top layer of soil, encapsulating it under roadways and buildings so no one can touch it, and replacing the top 2 feet of soil with clean fill and burying arsenic where no one can touch it. • We expect a DEP decision on the soil management plan within 10 days. The county is the fee -simple owner and responsible party, but we took the property as is and we're responsible for arsenic on the residential portion. Moving soil is being priced now. • Our SDP (Site Development Plan) comments are in and before the Growth Management Division and we hope they'll be approved in the next 30 days so it can be finalized. • We're working on an ERP (Environmental Resource Permit) with the South Florida Water Management District, which is a challenge. We're in golf course Tract 5, which includes part of the Greenway. The remaining tracts are to the north, the former Big Shots golf course, future government buildings, and a veteran nursing home. • The golf course is the drainage basin for all sites on the golf course, so the change in use — veterans versus a driving range — has slowed the county's overall ERP. • We're proceeding on our own ERP independently and it's dependent upon the future golf course drainage to the canal. • We're beginning the HUD eight -step process and expect to work with the county and HUD to advertise our use of land that was once in a flood zone. It will be built up and out of the flood zone. The eight -step process is expected to begin its advertising around September 1. August 15, 2023 Mr. Kirk outlined challenges and why they haven't broken ground: • Over the past 24 months, we've seen the largest increase in interest rates in 15- plus years. We intend to borrow about $58 million. Every 25 basis points in change in the interest rate generally shorts borrowing by $1.5 million, so 50% basis points leaves us being unable to borrow an additional $3 million. • That's not unique to what we're doing, but it clearly was part of the demise of Bigshots Golf and many other projects in the development pipeline. • We expect to get our costs from our selected contractor, DeAngelis Diamond. Building costs, which are due April 24 and are critical, have escalated dramatically over the past 18 months. They're a moving target. • We thank the county for being generous with its support. Land was leased to us at no cost for 99 years, there were moves to waive and reduce impact fees and offer county grant support. • What complicates development is that by the time you have three to five layers of funding, meeting everyone's requirements becomes complex. • We expect a HUD -firm commitment in November and hope to close and break ground after that. A discussion ensued and the following points were made: • Interest rates and supply -chain issues have caused problems for projects nationwide. • Was there ever an opportunity to partner with another development company to achieve a speedier timeline? • Rural Neighborhoods is involved in joint ventures. For this project, it's getting the benefit of a for -profit development partnership in a non -partnership way. Minneapolis -based Dominion Development, the nation's third largest affordable housing developer, with 40,000 units, including in Florida, is providing Rural Neighborhoods with pro-bono assistance — true corporate civic involvement. • Dominion is donating the time of one partner and an associate, about one day weekly for each. • One caveat forgetting the $10 million commitment from the local foundation community was the project had to be 100% non-profit developed. That was outlined in the Invitation to Negotiate. • There are probably lessons learned there. One is that greater environmental review of the property prior to acquisition would have been wise. • Rural Neighborhoods performed about $100,000 in environmental testing, which caused a delay. As a team, the landowner, county, and developers could have understood that problem earlier in the process. • There was always a year's delay to get a PUD approved. It may have helped to have some of the PUD done prior to the Invitation to Negotiate. • There are many challenges. It's less supply -chain now and more labor problems and construction pricing. Many developers don't know what number to put down or whether it's good for three months or weeks. • The residential buildings and amenity center total about 315,000 square feet and every $3-per-square-foot increase causes a $1 million impact. That's below or above the number we have in our pro forma. Rural Neighborhoods has to solve C! August 15, 2023 and find layered funding. We may be able to go back to our current financial sources, to a degree, but it will have an impact. Construction is expected to take 14-18 months for 252 units and there will be phased issuance of Certificates of Occupancy. The project will be built so residents can occupy the first buildings when they receive a CO, and the amenity center will join them when it's complete. We want to break ground quickly to hold those prices. Chairman Hruby noted that they've been shepherding this for a while, and it will be a great project. b. Styx Cos. Golden Gate Inn Letter of Support (S. Harrington) Chairman Hruby said we voted last month to support this and asked staff to draft a letter, which he reviewed and has commented on. Ms. Harrington said the letter of support was drafted, revisions were incorporated and is ready to sign. It was emailed to AHAC members on Saturday due to the developers' deadline. Chairman Hruby asked if the county could be consistent with how it sends agenda packets and warned members it may have gone into spam because it was 210 pages. Rather than email, he suggested a download from OneDrive. Ms. Harrington said she expected everything to go more smoothly next time and noted they only have one staff member supporting this. (She read the letter to the AHAC after some said they hadn't received it.) A discussion ensued about density and zoning and Mr. Bosi told the AHAC. • If the building were to be razed in 15 years, the PUD amendment would still allow a developer to build 215 units on 6.15 acres. • The development standards allow for what's being proposed to be in perpetuity unless the PUD is amended. • The hotel will be converted to affordable, luxury, Class -A studio apartments. • Restrictions included within this proposal will be maintained within the PUD. Ms. Waller made a motion to approve signing the letter of approval for Styx Companies' Golden Gate Inn conversion proposal. Seconded by Mr. Lyon. The motion passed unanimously,10-0, Vice Chair Faron abstained due to a conflict of interest (a Form 8B was provided last month). Chairman Hruby said he will sign the letter and staff will send it. Action Item: Look into OneDrive or Drop Box to send communications to the AHAC due to problems with receiving them or large emails eoina into seam. August 15, 2023 c. LGAO (Local Government Area of Opportunity) Application Presentation (S. Harrington) Chairman Hruby told the AHAC this involves three projects vying for the Local Government Area of Opportunity designation. The county must select one. It's AHAC's obligation to make a recommendation to the County Manager, who will make that award. This is a serious obligation. He asked if anyone had a conflict of interest or discussions with any applicants about the projects. Commissioner Hall said he may have spoken once with McDowell about the Ekos project. (A McDowell employee later clarified that the commissioner had only spoken to them about another project, Ekos on Collier Boulevard, not this project.) Chairman Hruby said he had a perceived or real conflict of interest. He chairs the Collier County Community Land Trust Board of Directors and McDowell has two projects it's partnering with, so he'll recuse himself from a vote on that project. When the AHAC discusses it, the County Attorney recommends that he leave the room. Vice Chair Faron cited concern over voting on the projects when she never received the 210-page email packet, which went into spam. Given the gravity, she would have preferred to have the packet more in advance to properly review it. We need more time than barely 48 hours. She's concerned about the AHAC's ability to make good judgments. She understands they'll listen to presentations, but asked why it couldn't have been provided earlier. She read 20 pages. Chairman Hruby noted the applications weren't received until Friday. Ms. Harrington said the deadline for applying was noon Friday and it takes time for staff to acquire and to combine the applications and review them, add them to the agenda and send information to the AHAC. Some portions were sent via OneDrive. Vice Chair Faron said she understood and asked if they had to vote today. Ms. Harrington said yes, due to developers' deadlines. To meet deadlines, they need a recommendation. A discussion ensued and the following points were made: • The deadline to send a recommendation to the state is September 12. • The county manager must review them after AHAC's recommendation. • AHAC members were concerned about making a good decision within a tight deadline. • In the future, they'd like earlier application deadlines. Chairman Hruby told the AHAC: • We should let them go through their presentations. • If you're satisfied and comfortable with discussing them and voting, do it. • If you're not, and you're willing to come back next week, you can take three or four days to review them and discuss them and vote next week. Mr. Giblin told the AHAC. • This is the first time we've ever run a system like this. The state just implemented Gl August 15, 2023 this program two years ago. • The way the tax -credit system works is the state makes rules in spring/early summer and releases its low-income housing tax credit, NOFAs (Notice of Funding Availability). We don't know when they're going to release those, and state application rules change yearly. • Once they're released, local governments must act quickly. • This year's rules say we need to come up with a mechanism to take advantage of as much tax credit money as we can for our local government. • The timeframe between when the state released its final application to when we publicized this on July 19 to give applicants adequate time to prepare applications will always be an accelerated timeline. • As a result, in 2021, the BCC relegated this to an administrative decision by the County Manager. The BCC realized there's no time to collect applications, send them to the BCC for review and then make an award. • Last year, these went straight to the County Manager for a review and decision. • This year, we decided to have a more open public process, presenting them at a public meeting and inviting applicants to make presentations. • There will always be an accelerated timeline when it comes to this funding. Vice Chair Faron suggested that in the future, they take the time off the developers' timeline, not the AHAC's. Developers are used to crunch time. It's two to three days. Chairman Hruby said they have a solution to that and asked the presenters to address the scoring criteria and points. We need you to convince us that you're entitled to the points on the scoring system to make our jobs easier. a. NuRock Acquisitions LLC — Residences at Seminole Crossing (Paul Greilich) i. 80 units: 100% affordable, between 33%-60% AMI ii. Immokalee iii. Affordability Period of 99 years Mr. Grelick told the AHAC. • We're a fully integrated development construction management company with 30 years of experience in affordable housing development. • We've built about 17,000 multifamily units in Georgia, Texas, and Florida. • In Florida, we have 10 projects that are completed or in the pipeline. • The 9-acre site is located just south of downtown Immokalee, on First Street and School Road, just west of the Seminole Casino Hotel, about 20 miles from here. • The site has excellent visibility on First Street, a corner location, and is heavily wooded and vacant. • It has excellent access to the CAT system locally and regionally. • There's a very strong demand for affordable housing in the Immokalee submarket. There hasn't been a 9% family deal funded since 2008, 15 years with no development like this. • There's a high priority in this location. • We're proposing 80 new units between 33% and 60% AMI, 56 two -bedroom -two baths and 24 three -bedroom -two baths. • The average square footage is 850- and 1,025 square feet. 7 August 15, 2023 • Rents will be $47041,100 for two bedrooms and two baths, and $546 and $1,200 for three twos. • We're proposing three 3-story, garden -style buildings with surface parking and a heavy emphasis on amenities. • We'll have a freestanding clubhouse and pool area with a cabana. The clubhouse will contain common space, including a reading room, lobby, leasing area, management offices and space for residents to gather and socialize. • Zoning is in place. The site was approved by Ordinance 08-53 for 140 multifamily units, but we're proposing less. We're within the approved ordinance's allowable use, density, and dimensional criteria. • Within the CAT system, we anticipate 15 proximity points, well over the requirement for Florida Housing (Finance Corp.) in 2023-201, the RFA. • Groceries, medical services, everyday essentials, schools, and other things are very close to the site, which is centralized in Immokalee. • It's across the street from Immokalee's largest employer, the casino, which has 900 employees. That's a hub of activity and economic activity in Immokalee and is a regional draw. • We'll preserve a little over 3 acres of trees and wetland onsite and preserve it in perpetuity. The development will be clustered toward the north portion. • There's a robust package of resident programs — financial counseling services, career counseling, resume preparation, academic programs, and after -school support — all free to residents. • All buildings will be Florida Green Building Coalition certified. • We believe this could be a catalyst project for Immokalee, with our level of investment and it would stimulate energy in the local economy, attract new businesses and residents. • The main drive is off School Road, with three 3-story buildings and a centrally located pool, clubhouse, and cabana. • We tried to be mindful of what was approved by the zoning ordinance and didn't deviate substantially. We wanted to respect what the commission and community envisioned and build on that. • Units will feature balconies and a very efficient design. We'd work with county staff to determine preferred aesthetics, architecture, etc. • The development timeline. After submitting it to Florida Housing, we'd work through the obligatory challenge period, invitation to credit underwriting and get this started as expeditiously as possible. • We understand there's an immense need in Collier County to deliver units by mid- to late-2025. • In Florida, NuRock has 10 projects, eight completed and two in the pipeline, including a 9% tax credit deal from the last cycle that we won in Broward County. Chairman Hruby asked to hold questions until after all presentations are completed. Ms. Harrington asked Mr. Grelick to provide a quick summary to assist AHAC for scoring evaluation criteria, the number of units, total percentage of AMI, the range you're going to be targeting, anticipated completion date, and the length of time for perpetuity for affordable housing. August 15, 2023 Mr. Grelick told the AHAC: • 80 total units. • 100% are affordable. • Between 33% and 60% AMI. • The affordability period would be 99 years. • Estimated completion and the final CO would be October 2025. • For the 10% commitment to the at -risk population, we're committing 10% ELI (Extremely Low Income) units, with a preference for special -needs units. • Maximum economic impact. This could be a game -changer for Immokalee in terms of the investment it would bring, the economic growth it could stimulate, and it could be a big project. • To leverage funds, we reached out to the Immokalee CRA because there's potential for a partnership and we'd work diligently with them to leverage funding and create a partnership. i. National Development of America Inc. — Casa San Juan Diego (John Raymond) i. 52 units: 90% of units at 60% of AMI and 10% at 33% AMI ii. Immokalee iii. Affordability Period of 99 years Mr. Raymond told the AHAC. • We've submitted LGAO applications for two county sites. • Which is needed the most? Without this designation, it's extremely difficult to get a 9% award without the LGAO designation, so it's which project you want to fund. • National Development is based in Fort Myers and has been developing affordable housing in Southwest Florida for the last 40 years. • We have several active projects in Florida, Texas, and Louisiana. • The land for both projects is owned by the Diocese of Venice and will part of the deal. • Casa San Juan Diego is zoned for 80 units; there will be 56 in the initial phase. • Ability to execute and get funding. We were just awarded a $40 million CNI (Choice Neighborhood Initiative) grant by the Lake Charles Housing Authority in Louisiana. We also have a partnership with the Waco Housing Authority in Texas for 648 units. We have five projects under construction in Southwest Florida, four of which are Florida Housing projects. The fifth is a public -private partnership with the City of Bradenton and Manatee County to develop 137 workforce housing units downtown Bradenton. • We have several applications in process with Florida Housing Finance Corp. • The project is in Immokalee, behind Our Lady of Guadalupe Church, which is at the intersection of Hancock Street and Boston Avenue. • We presented it last year. Both roads are county roads and don't meet right-of- way requirements for county maintenance due to significant damage and potholes. Boston Avenue is a gravel road, so we'd be improving that road. • The purchase and sale agreements are in the application. • The project will consist of 52 units, 90% of which will serve 60% AMI or less, M August 15, 2023 and 10% at 33% AMI or less. • We're committing to 99 years of affordability. • With the church's involvement as general partner, they're committing that as an eternal affordable housing commitment. • Although there are churches involved, the limited partner will be a for -profit entity, so the project will pay taxes, and everything will follow the same federal Fair Housing guidelines as other affordable -housing projects. • Our team. Fort Myers -based Brooks and Freund is the general contractor. They recently completed a 233-unit project for us in Lake Charles, Louisiana, and they're now under construction for a 136-unit new construction tax credit project in Fort Myers. • For property management, we work with NDC Asset Management in Bradenton for all our projects. They're currently managing 10,000 units across the East Coast and the Southeast. They effectively manage everything we've built. Mr. Raymond discussed scoring: • Debt coverage and financial viability. We're projecting a 1.24 debt -coverage ratio, which gives us some room with the current interest -rate volatility. In the last week, we're up 25 basis points on the 10-year Treasury, so it's a challenge. • Prior loans with Collier County. We've never received an LGAO from Collier County. We received preliminary awards for grant funding on Casa San Juan Diego that were contingent upon a Florida Housing Finance award in the sale tax credit round, but we never finalized those awards. We completed the preliminary financial review and were approved. • Initial budget. We currently have 400 units under construction in Southwest Florida. Brooks and Freud has over 1,000 under construction in Southwest Florida. We feel good about our numbers, but we're a long way from finishing the project. It's a cautionary tale with where the market has been. We're less volatile than 12 months ago, but it's an unknown battle. • Everything we build is all block construction; we don't do stick. Block has been a challenge lately, especially with new insurance requirements and impacts of Hurricane Ian prompting more robust construction. • Resident programs. We'll have full services, an onsite clubhouse, after -school programs for children, adult -literacy, and financial management programs. The adjacent Our Lady of Guadalupe Church has an onsite food bank that will be available for residents. In our previous Catholic Church projects, they've assigned members to provide counseling that's not on the property's P&L. • Unit development amenities. The clubhouse will have a full computer lab and lounge, there will be a large recreational field and a concrete court for games such as basketball and speed soccer. All units have a free Energy Star -rated washer and dryer. • We're following all the Florida Housing Finance Corp. Guidelines and certifications. • Commitment to at -risk populations. We're committing 10% of units to extremely low income, at 33% AMI. This will serve the family demographic. We will look for additional special needs but can't violate federal Fair Housing guidelines for the demographics required by the state. August 15, 2023 • Economic impacts. For affordable housing, anything that lowers the cost burden on a family and provides a home and long-term stability is a major impact on a family. They're not forced to move, they're not wary of massive rental increases or home conditions. This provides a long-term home base to set up their families for growth and success. • Proximity to services, transportation, and employment. We're within walking distance of Pinecrest Elementary School, there are numerous pharmacies nearby and full medical services. They're not within walking distance in the summer, but we're adjacent to CAT transit, which provides access to everything. There are multiple grocery stores, both regional chains and local grocers. • Leveraging and other funds. We have a letter of support from the Immokalee CRA. Once we get an award, we'll work on furthering that support. We have numerous other projects that have CDBG and HP (Homeless Prevention) funds. We'll explore other avenues to best serve this project and community. • We meet all Florida Housing application requirements, and we'll agree to all the loan terms. • The site is just south of Main Street and 9th Street and downtown Immokalee is just northeast of it. The initial site plan shows 80 units, with 52 units in Phase I. [The AHAC took a 10-minute court -reporter break from 10:13-10: 23.] j. National Development of America Inc., St. Agnes Place i. 56 Units: 90% of Units at 30% AMI and 10% at 33% AMI ii. Naples iii. Affordability Period of 99 years Mr. Raymond told the AHAC. • National Development is based in Fort Myers and has been developing affordable housing in southwest Florida for the last 40 years. • There are many similarities among some of the 9% projects with regards to the energy efficiency requirements and our in -unit amenities are similar. We're providing Energy Star -certified washer and dryers for every unit, as well as appliances. • The major difference with this site is it's more in town, off Collier Boulevard and Vanderbilt Beach Road, immediately adjacent to St. Agnes Catholic Church and across the street from Winn -Dixie. • Proximity to services. We're across the street from a major grocery store and Max Health Primary Care. There are numerous amenities, including top public schools in the immediate area and CAT transit on Collier Boulevard. • With the cost of land in Collier County, as you get closer to Naples, affordable housing deals are more cost prohibitive, but due to our Catholic Church partnership, this site is available. • There are many similarities with Casa San Juan Diego. We have the site, it's currently owned and the development entity has it under control. • There will be 56 units; 90% at 60% AMI or below; and 10% at 33% AMI or below. • The site is currently zoned and we're committing to the 99-year affordability 11 August 15, 2023 period. • Ownership structure is St. Agnes Place Ltd., and the Diocese of Venice and National Development of America are the general partners. • This is a slightly different structure than Casa San Juan Diego. • Any details missing from this presentation are included in the application. • This is a protected 1.2 debt coverage ratio: we're at $12.3 million in hard costs. • This will be a mix, 50% two -bed, two -bath, and three -bed, two -bath units. • Construction budget. We're using similar numbers to Casa San Juan Diego and our current Southwest Florida projects. This is a much smaller site, so our site work number will be lower. We also don't have to improve two off -site roads, as we did with Casa San Juan Diego. • Resident programs. After -school programs for children, adult literacy programs and financial management programs. Additional services will be provided by the church; there is no food bank onsite. • Amenities. All units will have cable and internet available, free washer and dryers and all Energy Star appliances. There will be a clubhouse with a lounge and kitchenette and a computer lab available to all tenants. • Proximity to public services. Oak Ridge Middle School is a mile up the road. Walgreens, Max Health Primary Care, Collier Area Transit and Winn -Dixie are all available immediately across the street off Collier Boulevard. k. McDowell Housing Partners, Ekos at Golden Gate (Bill Zunamon) i. 96 Units: 15.6% of units at 30% AMI; 9.4% of Units at 50% AMI; 28% of units at 80% AMI ii. Naples iii. Affordability Period of 99 years Mr. Zunamon told Commissioner Hall that he hadn't spoken to McDowell about this Ekos project. That was Ekos on Collier Boulevard, so there's no conflict because this has never been presented to anyone here. Mr. Zunamon detailed McDowell and the project. • McDowell Housing Partners focuses on workforce and affordable housing. • We have three projects in Collier County, one that is scheduled to open for occupancy in October, Harmony, which is a partnership with the county via land lease. And Allegro and Cadenza, sister projects, both of which have 160 units for senior and elderly housing funded through the Florida Housing SAIL (State Apartment Incentive Loan) program. Those are expected in February 2024 and October next year. • Cadenza is our latest project. • This project is Ekos at Golden Gate, with 96 units. It's on Golden Gate and Wilson boulevards. • The mix is 36 one -bedrooms, 42 two -bedrooms and 18 three -bedrooms. • What we noticed from Harmony on Santa Barbara is the need for not just one - bedrooms, twos, and threes, but more importantly, an income average. We have a range from 30% to 80%. After speaking with staff, in between there, we have 50% and 60% units. What we're running into as an issue on Harmony is we 12 August 15, 2023 have 30, 60, and 80, and 50s is an underserved population here, so we're trying to maximize and allow every AMI to be achieved. • The project is in a Geographic Area of Opportunity, a small, difficult development area. • The 9% RFA has three goals that will be awarded for a family development located in one of these areas. We selected this site because it will achieve two of the six LGAO awards and an additional three. • It's very difficult to win a 9% award, so giving yourself three extra chances gives the county three extra chances in terms of what site to select. • The site plan will be through the Live Local Act and is commercially zoned. All project threshold criteria were signed off on, including zoning. This uses what we've learned from the Live Local Act process, under RM-16 standards and max height of three stories, which considers the area. • Construction type. Four three-story concrete block buildings. Anything built in Collier should be concrete, given the hurricanes and insurance costs. • Amenities currently include a pool, fitness center, clubhouse, media room, pavilion area and dog park. • Timeline. The expectation of Florida Housing is the application will be in September, followed by a litigation and challenge period. Invitation to credit underwriting is expected in January, with the financial closing a year later. Anyone who doesn't close within a year from the invitation to credit underwriting will face Florida Housing Finance penalties. We expect construction will be complete by May 2026 and the project stabilized by December 2026. • We qualify for the maximum number of goals the 9% round is awarding. A huge factor of Florida Housing scoring is leveraging. At 96 units, the way leveraging works is how many credits you're requesting divided by units, among other factors, including concrete, which increases leveraging. The unit count guarantees we'll be in Leveraging Group A of the two group levels. • All other information is in the application. [Chairman Hruby left due to his conflict and turned the meeting over to Vice Chair Faron.] Ms. Harrington suggested that the AHAC review the selection criteria and if there are any questions, they can ask the applicants to come back to answer them. Ms. Harrington reviewed the selection criteria, telling the AHAC: • 10 points — applicant's development and construction experience. • 5 points — experience and quality of the development team. • 5 points — applicant's management experience, or experience and quality of management company. • 5 points — financial feasibility to complete and operate the project, including but not limited to, cost estimates, cash flow, debt -service coverage ratios, percentage of public monies requested compared to project cost, leveraging of public resources, including the requested county loan. 15 points — Applicant's performance and or compliance, including any prior 13 August 15, 2023 defaults of any prior loans or contracts with Collier County. This is Kristi Sonntag's area of expertise. • 5 points — The reasonableness of the cost of the project for the development. • 5 points — Resident programs. • 5 points — Unit and development amenities. • 5 points — Energy efficiency. • 7 points — Commitment to set aside at least 10% of the units in the development to an at -risk population such as homeless, seniors, special needs, etc. • 3 points — Maximum economic impact. • 10 points — Developments that provide a lift to the neighborhood and could lead to additional revitalization and/or neighborhood improvements. • 5 points — Proximity to public transportation services and employment. • 7 points — Leveraging of county funds with other resources that could be used to meet the FHFC required contribution level and leveraging of county funds with other funds to achieve greater impact on the community and neighborhood. • 3 points — Ability to meet FHFC requirements for the contribution to be part of the permanent financing with minimum loan term. A discussion ensued and the following points were made: • Staff reviewed applications but haven't filled out a scoring form. • It doesn't seem fair to vote on these now, with how little time they were given to review the information. • They're used to being provided with a staff review and recommendation. • Planning Commissioner Shea said he'd abstain because he doesn't believe his vote will help County Manager Amy Patterson make a decision that's fair to the applicants. • Ms. Waller said she's on a grant review committee and is used to tight timelines. • If scoring is 5 points and they don't believe it deserves the maximum 5, they can mark it 3 or 2, etc. • Ms. Harrington agreed they had valid concerns. • Staff has had no time to meet to review applications and does not have a recommendation now. • Mr. Giblin said this is no different from the annual grant application cycle involving CDBG, SHIP and HOME funding applications. Those go to a review committee and staff have no influence/input about how to score applications. • Ms. Sonntag noted the process removes staff from the decision and allows the advisory board and committees to make recommendations to the county manager. • Mr. Felke said he does this in Lee County, but his concern is that the timeline is very short. He appreciates the open and transparent process but didn't expect to have to vote today. • Mr. Giblin said the AHAC could make a recommendation and say they've heard all the presentations, and all seem eligible, none are ineligible and staff and the county manager can make the decision. • Vice Chair Faron agreed they're all viable, we're comfortable with any getting funding and the county manager can make the decision. 14 August 15, 2023 These are all the applicants who applied. All met the deadline and they're listed in the order they were received. They still have questions for applicants and asked about the process. Ms. Harrington told them to listen to presentations, discuss questions for applicants and if they feel comfortable, make a recommendation. If they don't feel comfortable choosing one, they can recommend that all projects are eligible for review by the County Manager's Office. The AHAC decided to ask applicants questions in case that changes their recommendation. Mr. Grelick answered questions about NuRock's Immokalee project and the following points were made: • Zoning is in place, RM 16, a 2008 rezoning. Staff confirmed the re -zoning and ordinance are still valid. • Free resident services are provided as part of the overall management budget; they're part of the operating cost. • Rents will pay for management staff and administration of resident programs. • We have an onsite, full-time professional management staff with decades of experience administering programs. • Services will be provided by NuRock, but we'd reach out to local services and organizations to partner if it's advantageous. This sounds like a good fit. • Buildings will receive a Florida Green Building Coalition certification. For a three-story building, it's a home certification. It's a threshold of environmental efficiency and includes low -flow fixtures and toilets, efficient lighting, environmentally sensitive building materials, and how the site is laid out. Preservation of wetlands and trees is critical, so we're implementing a holistic approach to environmental sensitivity. • We'd first elevate the buildings. This isn't in a floodplain, but we'd ensure its above base -flood elevation by at least 1-2 feet to reduce risk. Preserving wetlands onsite is critical to managing stormwater, so we'd retain stormwater onsite. We'd work with the Southwest Florida Water Management District to permit it appropriately. • Construction materials. Concrete -block construction, the most resilient for hurricanes. • 10% (eight units) will beat 33% AMI and the majority will beat 60% AMI. • The 10% would be ELI (Extremely Low Income) units and a set -aside for special -needs units, such as the elderly and veterans. Ms. Roberts asked about performance and compliance of prior loans and contracts. Ms. Sonntag reported that NuRock has no contracts with Collier County and hasn't applied for any. That would be a score of 0. Mr. Raymond answered staff and AHAC questions about National Development of America's two projects and the following points were made: 15 August 15, 2023 • There are two types of resident services. Core services are required by Florida Housing and are provided by our management team and local volunteers. In Bonita Springs, at their Pueblo Bonito, the Boys & Girls Club is onsite and other local volunteers come to work with them or onsite with kids. One of their vendors volunteers to provide financial management programs and the Diocese of Venice provides free services, such as a food bank, counseling, financial services, food scarcity, etc. • Casa San Juan Diego's proximity to the wastewater plant is a few hundred yards. The buildings are all in the northeast corner of the site and as part of construction, the pond is in the southwest corner and there also will be berm and landscaping buffers. • The Immokalee project is zoned RM8, with an available Affordable Housing Density Bonus. • At St. Agnes, zoning is part of the master plan development with the original church. The overall site is about 50 acres, which allows for 56 units. • Which project would score better? Both are eligible for base scoring. Casa San Juan Diego doesn't have goals associated with it. It's in a CRA, but it's not a goal this year. Without an LGAO, that application may have a 1 % chance. St. Agnes is in a Geographic Area of Opportunity, so that has the LGAO goal tied to it and would further bolster that application. • The decision between the two comes down to what's best for the county and community. They're both big priorities for us. Only one out of these four will be funded, regardless of the LGAO, because there's a county tally as well. Ms. Sonntag reported that National Development of America applied two years ago for HOME funding, which was awarded, but they haven't exercised that option. In the past, they have rescinded grant funding awarded to them. Mr. Zunamon answered questions about McDowell's Ekos at Golden Gate and the following points were made: • The cost of resident services is included in operating expenses. The cost is accounted for under revenue and management services. • There are Florida Housing requirements that at least three of these programs be implemented. We always implement a minimum of three or more at some projects. • HELP will assist our Collier projects moving forward and provide direct assistance to elderly residents. • We always look for further opportunities and will continue to search for as many opportunities as possible for residents. • AMI is 30%-80%, but 15% are at 30%, an additional five, which is a requirement when doing average income. We also specified units at 50%, 60, and 80 to encompass as many ranges as possible. • Zoning is C4 or C3 and it's already been presented to Mike Bosi, who signed off on the zoning form. It's commercial, but with the Live Local Act, you can go straight to an SDP. • Timeline on FECO. Stabilization will be by 2026. Given an assumption of invitation to credit underwriting by January 2024, they expect to close in fG9 August 15, 2023 January 2025 on construction financing. A conservative construction timeline is about 16 months. Ms. Sonntag reported on McDowell's compliance with prior county loans/contracts: • McDowell won an RFP with the county in 2019. They were awarded land for the project on Santa Barbara. • McDowell also received a SHIP award and turned back that award. • McDowell also is partnering with Community & Human Services to adopt a meals program for senior residents at the Allegro. They modified the kitchen and did whatever was needed to have a hot breakfast and lunch program for seniors. • McDowell also has an American Recovery Plan award for part of their impact fees that was awarded under Amendment 8 that the BCC approved last month. They're awaiting their agreement with the county and opted to take that as a loan versus a grant and will be repaying that at year 15. The AHAC discussed scoring criteria and other issues and the following points were made: • Proximity to public transportation is not the same as public transportation access. Two proposals are a half -mile away from a public transit stop, but if they had to go to work downtown, that's a two-hour trip by public transit. • The county developed its scoring criteria using best practices used by other Florida municipalities, cities and counties, and staff also reached out to the Florida Housing Finance Corporation. Acting Chair Faron told the AHAC and applicants: • The presentations and discussion are a critical part of the process. • We all have various levels of expertise and education, but don't feel qualified to score one today. • We've heard them all and all are in compliance, so we think all four are viable candidates for this funding. • We would recommend that County Manager Amy Patterson and her staff make the best recommendation with our support of all. Planning Commissioner Shea said their vote should qualify that we haven't done extensive reviews of the applications because we didn't have enough time. Acting Chair Faron told the AHAC. • Either you have the experience, or you don't. She won't rate an applicant based on 15 years versus 20 years of experience. • Some scoring points stand out, such as proximity to public transportation, AMI levels, resident programs, etc. • Some could elevate applicants beyond the scoring sheet, but she doesn't feel they're qualified to do that and don't have the time. • In the interest of time, we should take a vote to recommend these projects for consideration by the County Manager's Office and her staff, and we don't have any objections to any based on our cursory review and the presentations, which 17 August 15, 2023 were very well done. We should allow the county staff and her team to make the best decision based on what we give her. Planning Commissioner Shea made a motion to say the AHAC has reviewed all four LGAO applicants and all are eligible, none are ineligible, the AHAC does not have sufficient time to select the top applicant; and the AHAC recommends that County Manager Amy Patterson and her staff make the final decision. Seconded by Planning Commissioner Lyon. The motion passed unanimously, 10-0; Chairman Hruby abstained and was not present inside the boardroom. Ms. Waller asked if they had to tell the applicants what the next steps are. Ms. Harrington said they'd put it in writing, and she'll speak with Acting Chair Faron after the meeting. [Chairman Hruby rejoined the meeting at 11:10 a.m.] [Mr. Lyon left the meeting at 11:12 a.m.] d. Affordable Housing Monitoring Spreadsheet/Map (S. Harrington) Ms. Harrington displayed a map and discussed the spreadsheet. • The map displays all the approved affordable housing developments. • At the top on the left-hand side in the map legend, there are three circles with colors. The white circle with a number sign that's colored yellow has ESP (essential services personnel) preference; the blue circles are approved developments that have done payments in lieu. • The map shows approved affordable housing developments spread throughout Collier County and the variation. There is east to west coverage and north to south coverage. • There's an Immokalee insert. As projects/developments are approved, they will be updated and put on the map later. • When you look at the map, there's a number in a circle. To learn more about an individual development, there's a map legend and you can find the development name and address. That was done intentionally because apartment names change. • Having the apartment names on a separate legend allows the map to be accurate for longer and locations are less likely to change than apartment names. A discussion ensued and the following points were made: • This is tied to staff s matrix spreadsheet. • This is not interactive. It's a hard copy map so staff can ensure it's accurate, standalone and can be used with the map legend. • You can use the matrix to look up an apartment complex, how many units it has and how many are affordable. The matrix will allow monitoring. • The map and legend are ready to go live; there's no date yet. The county is working with its GIS and IT team, but some employees are out of the office. • The county is working with GIS to try to make it an interactive map and will bring that back to the AHAC when it's ready. • The county is working to calculate the total number of units. 1F:? August 15, 2023 • At the top left of the map, there are numbers behind it that tell you the number of approved developments in each district. In the future, it will show the total affordable -housing units. • It now shows there are affordable housing developments throughout Collier County. This took teamwork, many employees to ensure accurate information. • A lot of people will be looking for this. • It will dispel the urban myth about affordable housing in Collier County, that it's all in one district • Some of these maps are expiring. This map will be updated annually and affordable -housing developments that are no longer active will be removed. • When you click on the information about affordable housing, it will tell you where to start and when the period you need to explore is. • It would be good if you could get all the information you need about that site to properly evaluate the affordable housing project. • The term of affordability should be clear. That would be a very applicable piece of information for an online interactive map. • For developments such as Rivergrass, the payment in lieu of goes to either the Trust Fund or another count funding source. • For Rivergrass, commissioners allowed them to make the contribution directly to a housing trust held by the Community Foundation of Collier County. For all others, the money comes to the county, mostly for the Trust Fund, and Kristi Sonntag runs an annual application cycle to distribute the money, which can only be used for affordable housing. 5. PUBLIC COMMENT Michael Puchalla, executive director of HELP and the Collier County Community Land Trust, told the AHAC. • HELP is the only HUD -approved local housing counseling agency. • There were conversations today about wraparound services and financial education. This is an important time for the community to understand some resources available for homeownership. • Many employers are struggling to retain and recruit employees and we've gone through a lot of economic turmoil due to the pandemic and hurricanes. • We're promoting our Home Buyer Academy, which helps people understand where they can improve credit, how they can become mortgage -ready and understand what resources HELP has to engage in home ownership. • We have SHIP down -payment assistance funding available. We can guide people through the application process. • The Hometown Heroes program is being codified through the Live Local Act and some of these funding sources can be layered. • We're strongly encouraging people to reach out. The website is floridahelp.org, where there's an application. • We're holding a Homeowner Education Workshop with NABOR from 5-7 p.m. Wednesday, September 13. It will be a brief conversation about these topics and will cover how people can become more educated. How can they take that first step to reach out to understand what steps to take toward home ownership. It can seem completely unattainable right now. We want to ensure people know where 19 August 15, 2023 resources are available and how to access them. • We encourage everyone to reach out to our free service, engage with one of our counselors, or come to our workshops. • We offer online home buyer education, an important step to engage in these resources. Jacqualene "Jackie" Keay, new director of The Journey Home, told the AHAC: • We're a veteran -based organization and our mission is to end veteran homelessness. • We want to catch vulnerable veterans before they become homeless. • Her frustration is that we have funding on the backend to help veterans, but the most difficult challenge is finding housing they can afford. • She's been advocating for affordable housing for three to four years and is frustrated because everyone is working in silos. There are so many people with their own ideas, agendas and egos that get in the way. • We have to look at our resources, bring them to the table and see what works for the majority. • She's looking for solutions and is working with an organization and community members who are very concerned about what's going on. We're looking at country clubs that need staff. We're getting them to buy in. • We don't want to say anything official yet, but we want to buy into these housing projects and work with local churches, which have a lot of property. Many want to get involved in legacy projects. • One of the biggest challenges is finding property and working with officials and people in the industry to work on housing, density and putting it together. • The biggest challenge is land, and we have that option, so we're looking to partner with the local government and officials who want to solve this problem. • Some people do not want to solve it. Some think it's too great to solve. There's no such thing as an unsolvable problem. It's a matter of bringing the right people with the good intention of solving it, bringing the resources to the table, shuffling them around and doing what's best for the community. Chairman Hruby asked if it was a 501(c)(3). Ms. Keay said she's not sure what we are now, but we have a lot of wealthy country clubs and wealthy community members who are ready to put their money to work. [It's an LLC, a Florida dba of the Randolph County Veterans Shelter Inc.] Planning Commissioner Shea said when you're ready, can you come back and make a presentation about how you're organizing? That's the part of the community we need to tap into if we want to solve this problem. Ms. Keay said she definitely will and told the AHAC: • She checked with The Journey Home yesterday and we're looking at putting a letter together. • We're looking at country clubs that are willing to invest money to buy units before a shovel goes into the ground. • It's a matter of us bringing these resources together and leveraging them. 0401 August 15, 2023 We're looking for bankers willing to take on this project, but we do have a bank that's willing to finance our projects, which are completely affordable housing. We have country clubs willing to buy in and buy the lease or buy apartments to rent them out to employees. We're looking at churches that are willing to donate land or work with us as a legacy project and get incentivized for doing that. Churches have a lot of land here and some are willing to be partners in solving the affordable -housing crisis. Chairman Hruby said that's a unique niche market that nobody else he knows of is tackling, so good luck. Ms. Keay said they don't need luck, we have God. She thanked them. 6. DISCUSSION ITEMS a. AHAC Revised Work Plan Overview (S. Harrington) Ms. Harrington said the hard copy of the 2023 annual work plan includes all changes made since the last meeting; they're highlighted in yellow. The first is July 18. Vice Chair Faron said it should say today's date. It should be updated for each meeting and have that meeting's date. At the top, it says as of April 25, but that's when this was initially implemented and worked on. Her intent was that the work plan would be as of the date we're discussing it. Whenever we set goals, it's not as important as the date for the current status, so she suggests April 25 should be August 15. A discussion ensued and the following points were made: • The August 22 NIM involves a Growth Management Plan Amendment and a Planned Unit Development. (Updated due to information provided later by Mr. Bosi.) The amendment is to expand an industrial zoning district and will not involve affordable housing. • The NIM scheduled for September also does not involve affordable housing and is related to increasing building height in a commercial -residential -industrial project. • The AHAC wants to be alerted to NIMs with an affordable -housing component. • Mr. Bosi explained that whenever we get a Growth Management Plan Amendment associated with a PUD and a developer asks to go beyond what the GMP allows, the BCC requires that if you're asking for more density, affordable housing should be provided, and staff will ask for it. • The developer presents GMP and PUD plans and through staff review, we ask for additional affordable housing at 22.6%. That's the BCC policy. • An AHAC member will attend a NIM to provide information/comments. • The AHAC September meeting will focus on working on the annual Housing Incentive Strategy Report. • The priority is for staff to complete that task by the next meeting. • The third change added the Florida Department of Commerce. • The fourth change specifies that it's providing updates from the July meeting and moving forward as applicable. That will be covered later in this agenda. • The next item is to have the LGAO applicants present their projects; we just completed that. • The next adjustments are to incorporate that there's been no change in these 21 August 15, 2023 topics since the previous meeting. • Vice Chair Faron noted that what's missing is an action item from last month, the AHAC Strategic Work Plan Subcommittee making a recommendation on a policy for sale or disposal of county -owned property. That can be No. 10 for next month. • The county's priority is to complete the annual Housing Incentive Strategy Report. If time allows, we can work on a policy for the sale or disposal of county property. • The document says "draft." That word should be removed. • The annual Housing Incentive Strategy Report should go to the BCC for approval in November. Last year, it went to the BCC in December, so the process is starting now. Cormac and Sarah started working on it this week to formulate it and get it before the boards before then. • The AHAC would like to review it as soon as possible. Action Item: The county will work to complete the annual Housing Incentive Strategy Report and discuss it with the AHAC at next month's meeting. Action Item: Staff was asked to schedule an AHAC Strateeic Work Plan Subcommittee meeting to ask the BCC to set a policy for disposing of the five surplus properties. Action Item: Remove the word "draft" from the Work Plan. b. Housing Forum Workshop Dates (S. Harrington) Ms. Harrington told the AHAC dates for a half -day housing forum workshop on the Live Local Act were sent out by email on July 26. A discussion ensued over the dates and AHAC members settled on 1-5 p.m. on Sept. 20. A discussion ensued and the following points were made: • Agenda packets were emailed out based upon the publicly posted AHAC email list. If there's any incorrect information, please review it and update it. • Several AHAC members aren't receiving emails, or they went into spam. • Developers who work with the county should be invited to the Housing Forum Live Local Act workshop. • AHAC members can suggest developers to invite. • Developers the county works with, developers who presented today and others in the county queue should be invited. • The agenda is still pending. • The meeting concept is that in light of the Live Local Act, the county has met with many developers interested in using the Live Local Act, but they're running into similar roadblocks in terms of using the RMF 16 land -use regulations on sites proposed to be converted to commercial. They don't fit and don't work. Our requirements don't fit on sites to make them viable, even with the Live Local Act. • The goal is to get everyone in a room to determine if there are commonalities to their obstacles, such as parking, water management, setbacks, etc., and see if recommendations could be made to amend the LDC to accommodate the Live Local Act. 00A August 15, 2023 • The AHAC wants to ensure that staff, including Mike Bosi, attend the workshop. • AHAC members will email recommendations about attendees to staff by Friday. c. DSAC/AHAC Committee Update (S. Harrington) Ms. Harrington said the AHAC liaison who will be a non -voting member of the DSAC went to the DSAC for a vote and was approved. It will now go to the BCC for approval. Vice Chair Faron said she's been going to the DSAC meetings as an audience member for the past few months and is happy to continue unless somebody else wants to do it. It's a worthy connection for us. d. ADU Update (M. Bosi) Mr. Bosi reported that the scheduled NIMs in August and September don't involve any affordable -housing components. (This information was added to the discussion in 6.a.) Mr. Bosi reported on the status of the ADUplans: • We originally scheduled a public information meeting for September 13 at the North Collier Regional Park but are canceling that date. • Instead, we will have three public information meetings at North Collier Regional Park, the Lely South Regional Library and Golden Gate Community Center. • We were instructed to employ Metro Meter a real-time result -surveying software program that works with smartphones to get real-time data and responses for survey questions about the public's preference on being able to rent out guest houses and renting them out if they're income restricted. Questions also include tenure and what the length of time for rentals should be. • We probably will schedule the meetings for mid -October, and they'll be on successive weeks so we can cover the Urban Estates in three general locations to make it more convenient for property owners to attend and provide feedback. • We'll bring the results to the AHAC and let you know about their preference for renting out guest houses to anyone or if they want an income -restricted program. • The AHAC can make a recommendation to the Board of County Commissioners. The BCC asked us to find information about the community's preference before we can start a Land Development Code amendment process. We need to get property owners' preferences about how they'd feel about the proposal. That's our strategy. • We already established survey questions. • We're going to send 3,500 postcards to individual property owners to publicize the three public information meetings to solicit input. • We're hoping to bring that back to the AHAC for the November agenda and will ensure you get it well before the weekend before the meeting. Ms. Waller asked if the county was considering the ADU proposal in other areas. Mr. Bosi said that's not the direction the Board of County Commissioners provided. Mr. Bosi reported that: • The BCC indicated they wanted to see what the climate was related to the Urban Estates to see if that was something they could get going, and if it was a success, 23 August 15, 2023 they may consider other areas, such as the Rural Estates or any zoning district that would accommodate guest houses or guest suites. The only place it could work within the single-family zoning district is the RSF1. RSF1 means one unit per 1 acre. One acre is the minimum lot size, so that's another zoning district within the urban area where ADUs could be successful. The BCC hasn't asked us to expand it to that, but they want to see if Urban Estates property owners are interested. e. Surtax Update Recent Activity (S. Harrington) Ms. Harrington reported that we've had one presentation request for surtax funds, so far, and the consensus was that it was a development that would not be able to receive a staff recommendation due to the location of the proposed development. f. Live Local Act Update Recent Activity (S. Harrington) Ms. Harrington said if there are any developers considering applying or if they have an idea, we'd be happy to speak with them. We recently had conversations with an employer who wants to utilize the Live Local Act for employees. The employer has drawings, an idea and is further along in the process, so it's very promising. g. Criteria for Project Support Vice Chair Faron told the AHAC. • She's been thinking about how and when we will provide letters of support. It's worthy of a conversation soon about how we can do that. • What criteria are we using? Is it just because it has affordable housing in it and, therefore, we give it a stamp of approval? What about timing? When should we be hearing proposals? • Last week, we heard from Styx about the Golden Gate Inn conversion. They're one week into their due diligence period. • She wants the AHAC to consider this. It's her recommendation to develop an easy process, a set of criteria to evaluate projects that will help us determine whether to provide a letter of support. • Not every project with affordable housing is worthy of a recommendation. It certainly goes through staff, but we should have criteria. Chairman Hruby told the AHAC. • He had an email discussion with Cormac and Sarah about the presentations we heard. • There are three or four simple criteria that could be used to support a project. • Leverage. How many units are you getting for the amount of investment that the county is going to make, and the cost of the investment. • A letter of support is a really good idea. • Location. Is it where we want to be or is it out in the boondocks? • Who is it serving? Where in the AMI scale are we serving these folks? • Those are three major considerations for affordable housing, but he could think of more. • We could use a scoring sheet like we just used to score the development deal. • Mr. French probably has others to add. 24 August 15, 2023 Mr. French told the AHAC. • His office will not bring the AHAC anything that doesn't serve some level of legitimacy that the AHAC would give good consideration. • He shares all information with the County Manager's Office every step of the way for all projects that come forward. • If there are environmental considerations, we tell the developer why staff wouldn't support that, such as it would not make good planning or environmental sense, the location, or not being able to overcome hurdles with surtax dollars, etc. • We drew you in when we wrote the policy and we want your input, but it's the Surtax Committee's decision and that's what voters wanted. Your input is important, but it's input. It needs to go through the Surtax Committee, where staff will provide good representation. • The County Manager's Office oversees the Surtax Committee through Deputy County Manager Ed Finn and John McCormick, the director of Facilities and Real Estate. • This is more of a real estate policy piece. They're going to seek our advice and ask if it works. That's why we want our input to be valued early on. • Watch the Board of County Commissioners on Tuesday. When the agenda is available, you'll know why. We're bringing forward a project with an intent to negotiate if we can get BCC support. • Also, through The Villages property, through the former Collier Enterprises, which is now Tarpon Blue Companies, we've already pre -negotiated land and have been approached on it. • The county secured the right of first refusal because when it was first brought to the county, we felt the negotiations could have been better in the PUD before it went to the Planning Commission. • Now the county has the right of first refusal to close on that property and work that deal. That allows us to control our destiny and make sure those properties stay in perpetuity for attainable housing. He prefers "attainable" versus "workforce" because every home you live in was attainable with your budget. • There are a lot of staff resources that went into this between Jaime, Mike, Cormac, and Sarah. We're trying to put it all together. • For Tuesday's BCC meeting, we're going to strongly recommend that it takes a surtax route on a couple of fronts from an economic -development perspective and from an affordable -housing perspective. We may be able to tie in some Conservation Collier dollars. • It's a giant property and we're hopeful the BCC will support us. • There's a lot going on, but there are steps we must first take before we can bring it back to you. We're not always going to have fresh items for you to review monthly, given demand, limited staffing, and availability, and getting budgets approved. • This group is very budget conscious because it's tied directly to the general fund. • You have one staff member and he's (French) trying to get you one more. PQ August 15, 2023 We're working on it. Jaime is under the same criteria. We have a lot of moving parts, but we need the Surtax Committee to support these ideas. Unless we meet their criteria and we can sell it to them, it will be a tough sale. That's why when we bring you an item, it will be vetted, and we'll be seeking your support. Chairman Hruby asked how the AHAC can evaluate and decide what we want to support. That's our goal. Mr. French responded that. • We recognize it will be in a particular price range. • We like staff s idea of offering transitional options as new entrants come into the community, a particular job range, are new to their career, or at a certain income level. We want them to grow and thrive in the communities. By offering options to allow them to keep their kids in the same school district and continue to be near those shops and recreation areas, that's a great opportunity as we look at transitional models. • We don't think the hotel conversion is a bad idea because we'd love to see that. Golden Gate City is probably the last frontier for redevelopment because we've lost so many opportunities. • Immokalee is still very prosperous regarding the ability to grow outside its town boundaries and available lands for development. • There are a lot of sensitive lands, so as you consider these, keep an open mind, and look beyond just the development. What do neighboring schools look like, what's the availability of shopping or recreation, where's the county going with its Growth Management Plan and Future Land Use map? • What's the level of service defined in some of these areas versus what happens when you allow residents to rent guest houses? Can we prevent vacation rentals by those owners? Is that desirable? How do we ensure a good policy is considered that will ensure that happens going forward? Is the investment worth it for a property owner to either get a mortgage or use their own resources to fund construction? • In this market, we have a lot of money chasing very scarce resources, so it inflates costs and time. If somebody will get tied up for I1/2 years building a guest house, it may not be worth it. The market may change in that time. • Consider a proposal beyond its face value on how it fits in a community and what those available resources are, whether it's buses, schools, parks, etc. • You do an excellent job in asking good questions, whether it's a developer with a great idea or a private landowner looking for the highest and best value for a property and how they can make an impact in the community. 7. STAFF AND COMMITTEE GENERAL COMMUNICATIONS Ms. Sonntag reported that we finished the monitoring for Allura Naples. All 31 units are in compliance, and we did 100% monitoring of all affordable units. Sarah has the report and will make sure it's included with your agenda package next month. We'll include those reports as we monitor so you have them for review. 001 August 15, 2023 what those available resources are, whether it's buses, schools, parks, etc. You do an excellent job in asking good questions, whether it's a developer with a great idea or a private landowner looking for the highest and best value for a property and how they can make an impact in the community. 7. STAFF AND COMMITTEE GENERAL COMMUNICATIONS Ms. Sonntag reported that we finished the monitoring for Allura Naples. All 31 units are in compliance and we did 100% monitoring of all affordable units. Sarah has the report and will make sure it's included with your agenda package next month. We'll include those reports as we monitor so you have them for review. 8. NEW BUSINESS (None) J9"\ 1][411190 Ms Waller made a motion to adjourn. Second by Planning Commissioner Shea. The motion passed unanimously, 11-0. 10. NEXT MEETING DATE 9 a.m. September 19, 2023 Conference Room 609/610 Growth Management Community Development Department There being no further business for the good of the County, the meeting was adjourned by the order of the chairman at 12:10 p.m. CO E IkOUSXNG/ADJIISQR' COMMITTEE Steve These minutes were approved by the com ttee on t 'F�023 (check one) as presented ✓ , or as a ended 27