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AHAC Subcommittee 01/10/2025 - Draft January 10, 2025 1 MINUTES OF THE AFFORDABLE HOUSING ADVISORY COMMITTEE SUBCOMMITTEE MEETING Naples, Florida, January 10, 2025 LET IT BE REMEMBERED, the Affordable Housing Advisory Committee Subcommittee in and for the County of Collier, having conducted business herein, met on this date at 9:00A.M. in REGULAR SESSION at the Growth Management Department Building, 2800 North Horseshoe Drive, Naples Florida with the following members present: Chairwoman: Mary Waller Hannah Roberts Paul Shea Catherine M. Myers Jennifer Faron ALSO PRESENT: Cormac Giblin, Dir., Housing Policy & Economic Development Sarah Harrington, Housing Policy & Economic Development Manager- Planning Priscilla Doria, Operation Support Specialist January 10, 2025 2 1. CALL TO ORDER & PLEDGE OFALLEGIANCE The meeting was called to order at 9:00am and the Pledge of Allegiance was recited. 2. ROLL CALL OF SUBCOMMITTEE MEMBERS AND STAFF Roll call was taken and a quorum was established. Commissioner Kowal was also present for a portion of the meeting. 3. APPROVAL OF AGENDA AND MINUTES a. Approval of Today’s Agenda Ms. Faron moved to approve the Agenda. Second by Mr. Shea. Carried unanimously 5 – 0. 4. INFORMATIONAL ITEMS AND PRESENTATION None 5. PUBLIC COMMENT Persons wishing to speak must register prior to speaking. All registered speakers will receive up to three (3) minutes unless the time is adjusted by the Chairman. None 6. DISCUSSION ITEMS a. Tenant Pay Increase The Subcommittee reviewed the proposal “AHAC Subcommittee Recommendation 10/15/24 Affordable Housing Rental Unit Tennant Grace Period Policy” submitted by representatives of the development industry regarding tenant income increases and losses in qualifications for reduced rent. The following was noted during discussion:  The purpose of the meeting is to develop a recommendation on the proposed policy for consideration by the full Committee.  The issue has been raised to deal with cases where the tenant’s income no longer qualifies for reduced rent, so the landlord has the option not to immediately displace the tenant if they so desire.  The goal of the program is to provide the housing as a temporary measure with the hope the tenant reaches the market income level and leaves the program. It would be beneficial to ensure there are as few deterrents as possible for a tenant’s employment decision which may result in their change of status in the program. The Subcommittee reviewed the proposed language with the following noted:  The overall concept is to provide the developer/landlord with options, however there is a benefit to ensuring tenant stability by allowing some type of grace period if their income increases.  The grace period should ensure the timeline includes a school year cycle, so children don’t have to change facilities midyear.  The annual compliance monitoring could be the base point with a grace period of 6 to 12 months before the tenant is required to relocate.  One option for the developer is to swap the tenant’s affordable unit designation to market rate and convert an existing market rate unit to the affordable category so the tenant may remain in the unit.  If a unit swap is allowed, assurance needs to be made the overall ratio of affordable and market units remains in conformance with the approval governing the development.  Any policy recommended should include developments where 100 percent of the units are “affordable.”. January 10, 2025 3  Absent of a policy, there is no grace period, and the developer needs to seek removal of the tenant when it’s determined they no longer meet the income criteria.  Although there is no direct protection offered the tenant (which is not the responsibility of the County), the policy provides an option for developers or landlords. Generally, those renting properties to quality tenants are not anxious to remove the lessees due to the logistics, potential competition for acceptable tenants and the costs associated with releasing a unit.  The language exempting certain changing in income circumstances from the policy including a change in employment, change in marital status and other source income should be stricken as it is not necessary to determine the rationale for the individuals pay increase. Staff and the Subcommittee reviewed the proposed policy on the visualizer and revised the language real time. Following the discussion, the Subcommittee unanimously recommended the main Committee approve the following language: If at time of the annual compliance monitoring, a developer/ landlord is found to have a tenant no longer meeting the income requirements, the developer/ landlord has the option of allowing the tenant to remain in the unit for up to and not to exceed a 12-month grace period from the date of the annual monitoring. When a tenant exceeds the income requirements, the developer/ landlord has the option to utilize a floating unit within the development to substitute the unit occupied by the tenant that is no longer income qualifying for an alternative unit within the development that is income qualifying. In all cases, the developer/ landlord shall still be responsible for maintaining the agreed to mix of total number of units per %AMI income categories as approved by the governing documents. Tenant Household Income will be calculated in accordance with LDC Section 2.06.05.B.4. (using most recent filed tax return). Scenario: 1. A household is initially income qualified to lease an affordable unit. 2. At some point the tenant’s income increases pushes them over the income limit. 3. Tenant’s new income is reported on their yearly tax return. 4. During the yearly monitoring the tenant is found to be over income. 5. Tenant is put on notice that their household income will be recalculated at the next yearly monitoring, and if still over income, the developer must replace them with an income qualifying household; alternatively, the developer could certify the occupant of an alternate unit. Existing AHDB LDC Section on How Income is Calculated: 2.06.05.B.4. Income verification. The County Manager or designee or the developer shall obtain written verification from the potential occupant (including the entire household) to verify all regular sources of income to the potential tenant/owner (including the entire household). The written verification form shall include, at a minimum, the purpose of the verification, a statement to release information, employer verification of gross annual income or rate of pay, number of hours worked, frequency of pay, bonuses, tips and commissions and a signature block with the date of application. The verification shall be valid for up to 90 days prior to occupancy. Upon expiration of the 90-day period, the information may be verbally updated from the original sources for an additional 30 days, provided it has been documented by the person preparing the original verification. After this time, a new verification form must be completed. The income verification may take the form of the most recent year's filed income tax return for each occupant who had filed and will occupy the affordable housing unit. January 10, 2025 4 7. STAFF AND COMMITTEE GENERAL COMMUNICATIONS None 8. NEW BUSINESS None 9. ADJOURN NEXT AHAC MEETING DATE AND LOCATION: January 16th, 2025, at 9:00 AM 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 order of the chair at 10:31AM. Affordable Housing Advisory Committee, Subcommittee _________________________________ These minutes approved by the Committee on _________________ as presented________ or as amended ___________.