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HomeMy WebLinkAbout1993-05-10 93-256 ORDERCOUNCIL ACTION Date 1993 Item No. 93=256 Item/Subject: Authorization to Sign and Submit Application for Housing Alliance Designation Responsible Department: Community and economic Development Dept. Commentary: Designation as a Maine Affordable Housing Alliance 1s a requisite for participation in the Maine State Housing Authority's Housing Opportunity Zone Program (See attached program description). To date, only two of the authorized zones have been established. One is in Portland and one is in. Lewiston. HSHA would welcome an application from Bangor. Nhile no specific area has yet been specifically identified for possible future City Council designation as a Housing Opportunity Sone, several ral areas'en the west side have been tentatively discussed as possibilities. The Housing Alliance has met three times; minutes and agendas are attached for your information. De mnor Hee Manager's C smtf.,�., �6D. /Co+rw�T�L� "S ,�iif2tGl�rvlAV.� y Reneger Associated Information:C,&,O:NJQ;..L_,:,.z Aur+ 1. Finance Director City Solicitor Introduced For: X Passage First Reading Referral Page 1 of 93-256 Anipmd to domain Blanchette, May 10, 1993 CITY OF BANGOR (TITLE.) (0dr9rt _ Authorization to sign and submit to the Maine State Housing Authority an APPLICATION FOR DESIGNATION AS A MAINE AFFORDAERE HOUSING ALLIANCE COMMUNITY ...... ......._.__ ._. .......... ..... ... ......... THAT the City, Council of Bangor, as the local governing body, hereby authorises and directs the City Manager to have prepared, sign and submit to the Maine State Housing Authority n Application for Designation as a'Maine Affordable Housing Alliance Coamunity, a copy of which is attached hereto a "Exhibit A" and consisting of four (4) consecutively numbered pages. 93-256 - ORDER IN CITY COUNCIL May 10, 1993 Title, - Peeeed ��- �Gr `yMaine iState e4Housing Authority an Application ation foe C;�CLER Designation as Maine Affordable flous3ng A111avi ce Commodity .................................. mwa(q-1'&.W Councilman 93-256 MAINE STATE HOUSING AUTHORITY APPLICATION: FOR DESIGNATION AS A MINE AFFORDABLE HOUSING ALLIANCE .COMMUNITY 1. Municipality: City of Bangor 2. Contacts: Local Chief Official: Edward A. Barrett Title Ci[v Mnnaver Address ?3 Harlow HtrQat Bangor HE 04401 Phone (20]1 945-4400. ext 301 3. Local Housing Need: p. Please provide a description of your local housing need. You may wish to include information which you have about rising costs, increasing rents, vacancy rates, evictions, homelessness, waiting lists, or other indicators of which you are aware.' - A. Please refer to Comprehensive Housing Affordability (CHAS) enclosed. q. What appears to be "0 moat .important or critical housing issue facing the community at thin time] A. Continued operation of Greater.eangor Shelter. Provision of single room occupancy facility with supportive services for longtime homeless persons with mental disabilities. 4. Affordable Housing Strategy: Q. What strategy seems most appropriate to address local needs at this time? Possibilities might include affordable homeownership, new rental housing, public housing, housing designed for people with special needs, etc. Please describe your strategy. A. Obtain continuous funding for operation of Greater Bangor Shelter. Build new, or renovate existing, facility for an SRO with supportive services forlong-term homeless with mental disabilities. q. - refers to question A. - refers to answer s Q. net local resources have you identified that might be useful in pursuing your strategy? Some examples from other communities include: municipally owned land; local zoning changes to encourage affordability; willingness to seek state infrastructure loam or grants; state owned land in the community that is surplus; tax title, vacant, or foreclosed land; local businesses, financial Institutions, or other entities willing to contribute; volunteered expertise. A. Greater Bangor Shelter volunteer network, State or local operating/per diem reimbursement, university, college dormitories, Federal Dept. of Defame excess housing inventory, Federal Home Loan Banc/Maine State Housing Authority/CDBG Entitlement Grant financing. Q. what potential obstacles will need to be Overcome if your strategy is to succeed? $. Competition for available physical and financial resources. Securing financing in teams consistent with payment of local property taxes on project property. Q. what state resources might you need to assist with implementation of your affordable housing strategy? You need not list specific programa. A. Maine State Housing Authority Bureau of Mental Health - - Department of Human Services Local Housing Alliance: Number of participants: 13 Organizational name, if any: Banner Brea HousingAlliance Alliance Chair: T.J. Maztzial Name T.J. Mart¢'al Title Board Member S Chairman Agency Bangor Housing Authority Address 73 Harlow B MB Q. List Numbers: A. (Please note: NO specific membership is required, as. long as the local housing alliance is broadly-based and representative of the Coassunity. The following are only Suggested members.) Organization or Group Were of Representative Mayor/Selectman/Manager Patricia Blanchette Planning Board or Department Housing Consumers/Tenant Groups Judy Gpay Conservation Cosaiiasion Local Comprehensive Plan. Comm. Health S Welfare Dept. Mary-Ann Chalila Building Department Public Works Department Local Housing Authority T.T. Martzial Non-Profit Housing Agency ,Iacauelvn Wagner Social Service Agency Rerry Sack Banking, Financial Institution Sohn Moore Real Estate Sales Clergy Will' 1 d Housing Development Darrell Cooper Architects,Engineers,Deeigner/Builder Robert Eellv Local CD Advisory COI®. Manufacturing, Industry Others Banker C 1 L Mo Shelter Ooerator Bus n Brain rd Habitat for Humanity Carol Lackey Penguis CAP 6 Housfno StephenMoge s ASSY C.D. Director Stanley Moses Banker Craig Boyd Q. Please describe housingalliance activity to date, including reference to the date of organization, frequency of meetings, and date of the moat recent meeting. A. Informational meeting - March 23p 1993; Organizational meeting - April 6, 1993; Bi-weekly meetings. Next meeting - April 20, 1993. Q. What are the goals for the local housing alliance for the next three to six months? �. Designation as -e Maine-Affordable Housing Alliance. Identification and designation of a Housing Opportunity Zone. Identification of specific goals and resources. Selection of specific project(s). 4 6. Development Status: Q. List any housing alliance projects which are being suhsitted in conjunction with this application for future identification: Project Developer Number of Unite Funding 7. Certification: I/we do hereby state that the city/town of Bang_ is committed to the development of an affordable housing strategy and to the development of an effective local housing alliance. I/we request that this municipality be designated as a Maine Affordable Housing Alliance Community. Edward A. Barrett - City manacer April 27, 1993 Chief Municipal Officer Title Bate Signature Gen-5/MSHAHaA1 MAINE STATE HOUSING AUTHORITY 1. PROGRAM DESCRIPTION: Hpusina Opportunity Zone Proaram The Housing Opportunity Zone Program(HOZ)is a program created by the Affordable Housing Partnership Act of 1989 and is administered by the Maine State Housing Authority. The intent of the program is to assist municipalities in their efforts to restore deteriorating urban neighborhoods. The Authority may establish up to four demonstration zones, each comprised of a different municipality or Portion of a municipality. These demonstration zones shall serve as a tool. for stimulating residential revitalization in deteriorating neighborhoods. 2. ELIGIBILITY REQUIREMENTS: Entities: Municipalities that have a designated local or regional housing alliance are eligible to apply for program funds. Municipalities must submit an application for designation as a Maine Affordable Housing Alliance community prior to the designated funding application deadline. For the purposes of this program, urban municipality is defined as a municipality having a papulation greater than 5,000 or the two municipalities with the greatest population within their county. To apply, the municipality must choose one contiguous area to be designated as a Housing Opportunity, Zone(HOZ). Activities: Subject to the availability of funds, the Authority may Provide direct financial assistance to municipalities in the form of loans or grants for the following: 1. Restoration of residential dwelling units. 2. Shelters for homeless. 3. Removal of structures which are beyond rehabilitation. 4. Creation of recreational and park areas. 5. Such other types of assistance which the Authority determines are eligible under both the provisions of the Act and the restrictions on the available sources of funds. 3. APPLICATION PROCESS: Applications for designation of housing opportunity zones shall not be accepted on an on-going basis. processing of applications shall be done periodically on a direct solicitation basis until up to four zones have been designated. Selection priorities and criteria shall be designated at the time of direct solicitation. 4. LOW INCOME TARGETING REQUIREMENTS: Very low and low income persons within the designated zones. 5. CONTACT PERSON(S): Jim Andrews MAINE STATE HOUSING AUTHORITY 1. PROGRAM DESCRIPTION: Municipal Land Acgvisition and Municipal Infrastructure Program The Affordable Housing Partnership Act of 1989 mandated the creation of the municipal assistance and land acquisition programs for the purpose of providing money and other resources to municipalities to acquire. improve or preserve land for affordable housing. The Land Acquisition Loan Fund for Municipalities, a revolving loan fund, was capftalized_ with initial funding of $500,000 and the Municipal Infrastructure Program, also a revolving fund, was capitalized with initial funding of $4 million. Through law interest rate(3%) non- recourse loans , each provides for the acquisition or development for the homeless and lower and moderate income households. - 2. - ELIGIBILITY REQUIREMENTS:. - - Entities: Municipalities that will own, manage or actively develop affordable housing and who evidence the establishment of a regional or municipal housing. alliance. Activities: One key objective of the Municipal Land Acquisition and Municipal Infrastructure Programs is to be responsive to a particular community's affordable housing needs. Therefore a wide variety of housing options can be explored under the programs. Eligible projects can involve new construction, conversion, rehabi l itation, or acquisition of existing housing. Applicants must endeavor to propose projects which qualify for tax-exempt bond financing. 3. APPLICATION PROCESS: .Applicants for either fund must submit a completed ° Municipal Assistance and Land Acquisition Programs Application°. Applications will n, reviewed for selection on a quarterly basis. 4. LOW INCOME TARGETING REQUIREMENTS: Homeownership proposals: At least 30% of the homes must be affordable to a 4 -person household with an income at or below 803 of the area median income. Rental/Cooperativeproposals: At least 20% of the housing units must be affordable to households with income at or below 50% of the area median Income. 5. CONTACT PERSON(S): Jim Andrews - HANGOR AREA HOUSING ALLIANCE AGENDA TUESDAY MARCH 23, 1993 10:30 am Council Chambers Bangor City Hall 1.) Welcome c Introduction' Kerry Sack, Housing Coordinator Community Health 6 Counseling Services 2.) Nomination 6 election of Chairperson and Secretary. 3.) James E. Andrews, Coordinator of Special projects Maine State Housing Authority, Development Division "The role of a Local Housing Alliance, and the MSHA Housing Opportunity Zone (HOZ) Program.,' 4.) Discussion of Bangor City Council Resolve 93-173 passed February 22, 1993 'Calling Upon the State of Maine to Assist Municipalities in Reducing the erosion of Municipal Assessed values Resulting from the Purchase of Taxable Residential Properties by Non -Profit Tax -Exempt Entities." (attached). This proposed legislation would remove the current tax exemption for rental housing owned by Non -Profit charitable corporations; limit the current tax exemption for rental property owned or operated by MSHA and local Housing Authorities; require tax-exempt low-income housing projects to pay municipal service charges established under 36 MRSA 652 (1) (L); and prohibit the use of MSHA funds to finance conversions of existing rental housing from taxable to tax- exempt status. 5.) Ideas, and specific projects this Housing Alliance should commit it's time and energy to. 6.) Open discussion - 6.) Next meeting, schedule, etc. Minutes of Bangor Area Housing Alliance meeting March 23, 1993: Meeting started at 10:40 am Present[ John Moore" Kerry Sack Patricia Blanchette - Jacqueline Wagner William England - - T.J. Martsial Stan Moses Darrell Cooper Carol Lee Moore - - Stephen Mutate Mary -Anne Chalila - James Andrews AGENDA ITEM R1 1 Harry Sack gave a brief introduction concerning the need for a local Housing Alliance, and how the Alliance .compliments the City's Comprehensive Housing Affordability Strategy (CHAS). She skipped ITEM $2, and introduced James Andrews, Coordinator of Special Projects for MSHA.. AGENDA ITEM A3 Jim Andrews explained the 3 programs at MENA that require design and approval of the local Housing Alliance. The local Housing Alliance must be approved and acknowledged by the City, although it can be totally separate from the City, or an advisory committee to the City. Paperwork for the approval of the Alliance must be signed by the City Manager. This exact Procedure, and structure Will be discussed at the next meeting as Agenda Item fit. Brief explanations of these programs were included in the packets Jim gave to everybody, these have been reproduced for those who were not at this meeting (enclosed). 1.) Housing opportunity Sone (HOE). MENA will fund 4 projects state wide under this program, Portland and Lewiston have already received $750,000 each. There is $500,000 remaining. The municipality must first designate a contiguous area as a. HOZ. This area will then be eligible to receive funds (non-recourse loan, typically at 3t) to promote affordable, safe, and decent housing. Rehabilitation, demolition, homeless shelter, creation of recreational areas are all eligible activities, but funding is essentially wide open to any proposal the local Alliance feels appropriate for their housing needs. - 2.) Municipal Land Acquisition Program $500,000 available 3.) Municipal Infrastructure Program $4,000,000 available. 2. These programs are typically leveraged with other funding sources such as CDBG or bank financing to complete a Proposal package. If rental units are developed as part of a proposal, 20% of the units must be affordable to tenants whose income is 504 of median. If Age eownerahi units are developed, 30% of the units must be affordable to owners who are at 80% of median.. Monies cannot be ausedffordable to pay for delivery of special, or social services to tenants or owners. However, administrative fees to any agency tenantcoordis a proposal is an allowable expense. Jim expects to announce a. new funding round within 2 weeks. At that time updated program descriptions will be available. This generated so much discussion, on everything from designating a HOZ, to Single Room Occupancy projects (SRO), - to the Freese's building, to local landfill problems that two hours went by and we decided to postpone the remaining agenda until our next meeting in two weeks on: MRS—DAY APRIL 6 AT 10:30 IN CITY COUNCIL CHA!ffiERS f$ CZ1• HAI, RD F} R, Meeting adjourned at 12:45 pm BANGOR AREA HOUSING ALLIANCE AGENDA TUESDAY APRIL 6, 1993 10:30 am Council Chambers Bangor City Hall 1.) Nomination s election of Chairperson and Secretary. 2.) Review APPLICATION FOR DESIGNATION AS A MAINE AFFORDABLE HOUSING ALLIANCE COMMUNITY (enclosed) 3.) Discussion of Bangor City Council Resolve 93-173 passed February 22, 1993 'Calling Upon the State of Maine to Assist Municipalities in Reducing the erosion of Municipal Assessed Values Resulting from the Purchase Of Taxable Residential Properties by Mon -Profit Tax-EXempt Entities.- (attached). This proposed legislation would remove the current tax exemption for rental housing owned by Non -Profit charitable corporations; limit the current tax exemption for rental property owned or operated by MSRA and local Housing Authorities; require tax-exempt low-income housing projects to pay municipal service charges established under 36 MRSA 652 (1) (L); and prohibit the use of MSHA funds to finance conversions of existing rental housing .from taxable to tax- exempt status. Notes At the last meeting, Jim Andrews said all applications for MHMA funds will now consider full assessed taxes in any pro -forma analysis, regardless Of the tax statue of the applicant. 4.) Ideas, and specific projects this Housing Alliance should commit it's time and energy to. 5.) Open discussion 6.). Next meeting, schedule;. etc. Bangor Area Housing Alliance April 60 1993 10:30 AM, City Council Chambers MINUTES MEMBERS PRESENT: Sohn Moore Berry Sack Pat Blanchette T.S. Martzial Stan Moses Carol Lee Moore Stephen Moores Bob Kelly Mary -Anne Chalila Suaan Brainard Carol Lackey NDA ITEM t1 - Election of Officers After an introduction of those present, an election Of officers took place. On a motion by Kerry Sack, seconded by Mary Ann Challla, T.S. Martzial was elected Chairperson. On a motion by Mary -Ann Chalila, seconded by Pat Blanchette, Stan Moses was elected Secretary. AGENDA ITEM a2 - Application for Designation as a Maine Affordable Housing Alliance Community: It was determined that a City Council Order would be needed to authorize the City Manager to sign the City's application. An order will be drafted for the next City Council agenda. In reviewing the application forms, it was suggested that a copy of the CHAS (Comprehensive Housing Affordability Strategy) be submitted and referred to in the application sections: 3. Local Housing Need and 4. Affordable Housing Strategy. Several potential projects were discussed including: Acquisition and rehabilitation of ccndemnea-residential property: Acquisition and resale 0£ excess. New Capehart A£r FOSCe housing to first time home buyers or to home owner cooperatives. -' Development of single room occupancy facilities for the long ,term homeless. The need for supportive services, especially mental health services, for formerly institutionalised homeless persons was emphasized, as was the need for statereimbursementfor shelter operatingcostsand for -the provision of services for homeless persons with the need for supportive services., The percentage of emergency shelter clients :with such needs Lis now in the range of 65% to 100%. -1- AGENDA ITEM !4 - Ideas and Specific Projects: It was the consensus of those present that we should not submit e specific project in the Application For Designation Aa A Maine Affordable Housing Alliance Community, but, rather, look for windows of opportunity^ for the future selection of a project or projects. There was strong support for the development of SRO -type homeless shelter facilities with support services. AGENDA ITEM a3 - Non-profit Owned Residential Property Tax -Exemption: There was a discussion of the City Council's recent call for state legislation to remove non-profit owned housing from the list of tax-exempt properties. There was widespread support for this position, because of the increased tax burden placed on owners of the remaining residential property and the resultant difficulty of continued public funding for affordable housing and associated supportive services. There was also some concern expressed for small non -profits who were now struggling to survive and have no resources to pay for the increased operating cost associated with the payment of property taxes. In the came of newly developed non-profit owned housing, it was felt that lenders, particularly public lenders, should calculate an affordable interest rate for the borrower based on operating cost which includesthe payment of property taxes. AGENDA ITEM 45 - Open Discussion: Items of general discussion during the meeting included Various areas which would or would not be suitable for designation as a Housing Opportunity Zone. These areae included the University College campus, Bangor International Airport, New Capehart Air Force housing, the Beason College neighborhood, downtown and Carroll Street. The need for site control was mentioned. The activities of Habitat for Humanity to develop affordable and taxable housing for low-income first-time homeowners. Two such homes have been constructed, sold and occupied in Bangor, with a lot being sought for another. Empowerment of low-income families through affordable home ownership. The need to place a resale value cap on such Properties to reduce profit taking was mentioned. The need for an affordable housing coordinating agency. The use of service feesas"a'. partial substitute for the payment of property taxes by residential property owning non -profits. The percentage of tax-exempt property in the City of Bangor is now 52%. -2- The addition of a fire protection fee to the Water District fee was mentioned, but the Suggestion that the water District operate the Fire Department was thought to be unnecessary. Large non -profits, such as Eastern Maine Medical Center, demand extensive public services, yet contribute no property tax revenue. AGENDA ITEM 46 - Next Meeting: There being no further business, the next meeting was set for two weeks hence on Tuesday, April 20 at 10:30 AM in the City Council Chambers, and the meeting was adjourned at a few minutes past noon. -3- 93-256 MAINE STATE HOUSING AUTHORITY APPLICATION FOR DESIGNATION AS A MAINS AFFORDABLE HOUSING ALLIANCE _COMMUNITY 1. Munlcipalityf City of Bangor 2. Contacts: Local Chief Official: Edward A. Barrett ' Title City Manager Address 31 0440 Phone !3011 995-9400, ext. 301 3. Local Housing Need: Q. Please provide a description of your local housing need. You may wish to include information which you have about rising coats, increasing rentst. vacancy rates, evictions, homelessness, waiting lista, or other indicators of which you are aware. A. Please refer to Comprehensive Housing Affordability (CHAS) enclosed. q. What appears to be the most .important or critical housing issue facing the community at this time? A. Continued operation of Greater .Bangor Shelter. Provision Of single room occupancy facility with supportive services for longtime homeless persons with mental disabilities. 4. Affordable Housing Strategy: q. What strategy seems most appropriate to address local needs at this time? Possibilities might Include affordable homeownership,new rental housing, public housing, housing designed for people with special needs, etc. Please describe your strategy. A. Obtain continuous funding for operation of Greater Bangor Shelter. Build new, or renovate existing, facility for an SHO with supportive services for long-term homeless with mental disabilities. Q. - refers to question A. - refers to answer .0. what local resources hews you identified that might he useful in pursuing your strategy? Some examples from other communities include: municipally owned land; local zoning changes to encourage affordability; willingness to seek state infrastructure loans or grants; state owned land in the community that is surplus; tax title, vacant, or foreclosed land; local businesses, £inaniel institutions, or other entities willing to contribute; volunteered expertise. 8• Greater Bangor Shelter volunteer network, State or local Operating/per di® reimbursement, university, college dormitories, Federal Dept. of Defense excess housing inventory, Federal Home Loan Banc/wain State Housing Authority/CDBG Entitlement Grant financing. p. what potential obstacles will need to be overcome if your strategy is to succeed? A• Competition for available physical and financial resources. Securing financing in terms consistent with payment of local property taxes on project property. q. what state resources might you need to assist with implementation of your affordable housing strategy? You need not list specific programa. A. Heine State Housing Authority Bureau of Mental Health Department of Human Services 5. Local Housing Alliance: Number of Participente: is Organisational name, if any: Rancor Area Houeina Alliance Alliance Chair: T..i: Martaial Name T.J. Martxial Title Board Member 6 fAainn•n Agency Banoor Housing Authority - Address _73 Harlow St.. Bangor. ME L Q. List Memberes A. (Please note; No specific membership is required, as long as the local housing alliance is broadly-based and representative of the community. The following are only suggested members.) Oxcani_ 1 Raine of Representative Mayor/Selectman/Manager Patricia Blanchette Planning Beard or Department Housing Consumers/Telt Groups _Judy Guav Conservation Commission Local Comprehensive Plan. Comm. Health 6 Welfare Dept. Marv -Ann Chalila Building Department Public Works Department Local Housing Authority T.T. Mnxtziel Non -Profit 0ousing Agency Gecguelvn Wagner Social Service Agency Eerry Sack Banking, Financial institution _,John Moore Real Estate Sales Clergy 'William England Rousing Development Darrell Coover Arth1tects,8nginears,Designer/Builder Robert Kelly Local CD Advisory Cons. Manufacturing, Industry - Others Banker carol Lee Moore Shelter Operator - Susan Brainard Habitat for Hadanity Carol Leckev Reaggiff-ap-A-Musing Stephen Mooers Asst.C.D. Director Stanley Moses Banker Crag Boyd Q. Please describe housing alliance activity to date, including reference to the data of organization, frequency of meetings, and date of the most recent meeting: A. Informational meeting - March 23, 1993; Organizational meeting - April 6, 1993; Bi -weekly meetings. Rest meeting - April 20, 1993. Q. What are the goals for the local housing alliance for the next three to six months? A. Designation as a Maine -Affordable Housing Alliance. Identification and designation of a Housing Opportunity Zone. Identification of specific goals and resources. Selection of specific project(s). S. Development Statue: q. List any housing alliance projects which are being submitted in conjunction with this application for future identification: Project Developer Number of Unita Funding ]. Certification: i/we do hereby state that the city/town of Secant is committed to the development of an affordable housing strategy and to the development of an effective local housing alliance. x/we request that this municipality be designated as a Maine Affordable Mousing Alliance Community. Edward A Barrett City Manager Anril 22, 1993 Chief Municipal Officer Title Date Signature Gen-5/HSHAHsAl MAINE STATE HOUSING AUTHORITY 1. PROGRAM DESCRIPTION: Housing OpportunJtY Zone Program The Housing Opportunity Zone Program(HOZ)is a program created by the Affordable Housing Partnership Act of 1989 and is administered by the Maine State Housing Authority. The intent of the program is to assist municipalities in their efforts to restore deteriorating urban neighborhoods. The Authority may establish up to four demonstration zones, each comprised of a different municiyality or Portion of a municipality. These demonstration zones sha71 serve as a ..toolfor stimulating residential revitalization in deteriorating neighborhoods:., 2. ELIGIBILITY REQUIREMENTS: Entities: Municipalities that have a designated local or regional housing alliance are eligible to apply for program funds. Municipalities must submit an application for designation as a Maine Affordable Housing Alliance community prior to the designated funding application deadline. For the purposes of this program, urban municipality is defined as a municipality having a population greater than 5,000 or the two municipalities with the greatest population within their county. To apply, the municipality must choose one contiguous area to be designated as a Housing Opportuni ty, Zone (HOZ). Activities: Subject to the availability of funds, the Authority may provide direct financial assistance to municipalities in the form of loans or grants for the following: 1. Restoration of residential dwelling units. 2. Shelters for homeless. 3. Removal Of structures which are beyond rehabilitation. 4. Creation of recreational and park areas. A. Such other types Of assistance which the Authority determines are eligible under both the provisions of the Act and the restrictions on the available sources of funds. 3. APPLICATION PROCESS: Applications for designation of housing opportunity zones shall not be accepted on an on-going basis. processing of applications shall be done periodically on a direct solicitation basis until up to four zones have been designated. Selection priorities and criteria shall be designated at the time Of direct solicitation. 4. LOW INCOME TARGETING REQUIREMENTS: very low and low income persons within the designated zones. 5. CONTACT PERSON(S): Jim Andrews MAINE STATE HOUSING AUTHORITY 1. PROGRAM DESCRIPTION: Municipal Land Acquisition and Municipal Infrastructure Program The Affordable Housing Partnership Act of 1989 mandated the creation of the municipal assistance and land acquisition programs for the purpose of providing money and other resources to municipalities to acquire, improve or preserve land for affordable housing. The Land Acquisition Loan Fund for Municipalities, a revolving loan fund, was capitalized, with initial funding of $500,000 and the Municipal Infrastructure Program, also a revolving fund, was capitalized with initial funding of $4 million. Through law interest rate(3a) non- recourse loans , each provides for the acquisition or development for the homeless and lower and moderate income households. 2. ELIGIBILITY REQUIREMENTS:- - Entities: Municipalities that will' own, manage or actively develop affordable housing and who evidence the establishment of a regional or municipal housing alliance. Activities: One key objective of the Municipal Land Acquisition and Municipal Infrastructure Programs is to be responsive to a particular community's affordable housing needs. Therefore a wide variety of housing options can be explored under the programs. Eligible projects can involve new construction, conversion,rehabilitation;or acquisition of existing housing. Applicants must endeavor to propose projects which qualify for tax-exempt bond financing. 3. APPLICATION PROCESS: Applicants for either fund must submit a completed " Municipal Assistance and Land Acquisition Programs Application". Applications will n, reviewed for selection on a quarterly basis. 4. LOW INCOME TARGETING REQUIREMENTS: Homeownership proposals: At least 3M of the homes must be affordable to a 4 -person household with an income at or below 80% of the area median income. Rental/Cooperativeproposals: At least 20% of the housing units must be affordable to households with income at or below 50% of the area median income. 5. CONTACT PERSOM(5): Jim Andrews Minutes of Bangor Area Housing Alliance meeting March 23, 1993: Meeting started at 10:40 an Present:' John Moore" Kerry Sack Patricia Blanchette .. Jacqueline Wagner William England T.S. Martilal Stan Mosea Darrell Cooper. -- Carol Lee Moore Stephen Mooers Mary -Anne Chalila - James Andrews AGENDA ITEM 01 Kerry Sack gave a brief introduction concerning the need for a local Housing Alliance, and how the Alliance compliments the City's Comprehensive Housing Affordability Strategy (CHAS). She skipped ITEM M2, and introduced James Andrews, Coordinator of Special Projects for MERA.. AGENDA ITEM B3 Jim Andrews explained the 3 programs at MESA that require design and approval of the local Sousing Alliance. The local Housing Alliance moat be approved and acknowledged by the City, although it use be totally separate from the City, or an advisory committee to the City. Paperwork for the approval of the Alliance must be signed by the City Manager. This exact procedure, and structure will be discussed at the next meeting as Agenda Item 42. Brief explanations of these programs were included in the Packets Jim gave to everybody, these have been reproduced for those who were not at this meeting (enclosed). 1.) Housing Opportunity Sone (HOZ): HERA will fund 4 Pra3ects state wide under this program, Portland and Lewiston have already received $750,000 each. There is $500,000 remaining. The municipality must first designate a contiguous area as a HOZ. This area will then be eligible to receive funds (non-recourse loan, typically at 3%) to promote affordable, safe, and decent housing. Rehabilitation, demolition, homeless shelter, creation of recreational areas are all eligible activities, but funding is essentially wide open to any proposal the local Alliance feels appropriate for their housing needs. 2.) Municipal land Acquisition Program $500,000 available 3.) Municipal Infrastructure Program $4,000,000 available. 2. These programs are typically leveraged with other funding sources such as COBG or bank financing to complete a Proposal package. If rental unite are developed as part of a Proposal, 209 of the units must be affordable to tenants whose income is 509 0£ median. If homeowner hie units are developed 309 of the units must be affordable to Owners who are at 009 of median. Monies cannot be used to pay for delivery of special, or social services to tenants Or owners. However, administrative fees to any agency coordinating a proposal is an allowable expense. Jim expecte to announce a. new funding round within 2 weeks. At that time updated program descriptions will be available. - This generated ao much discussion, on everything from designating a HOS, to Single Room Occupancy projects (SRO), to the Freeze's building, to local landfill problems that two hours went by and we decided to postpone the remaining agenda until our next meeting in two weeks oni JY AMI .6 AT 1000 JN CIT4-pUN RI.00R. CHAMBERS IH CITY - Meeting adjourned at 12295 pm Bangor Area Housing Alliance April 6, 1993 10:30 AN, City Council Chambers MINUTES MEMBERS PRESENT) John More Merry Sack � pat Blanchette T.J. Martiial Stan Moses Carol Lee Moore Stephen Moores Bob Melly Mary -Anne Chalila Susan Brainard Carol Lackey AGENDA ITEM 41 - Election of Officers Afteranintroduction of those present, an election of Officers took place. On a notion by Merry Sack, seconded by Mary Ann Chalila, T.J. Martcial was elected Chairperson. On a motion by Mary -Ann Chalila, seconded by Pat Blanchette, Stan Moses was elected Secretary. AGENDA ITEM #2 - Application for Designation a6 a Maine Affordable Housing Alliance Community: - It was determined that a City Council Order would be needed to authorise the City Manager to sign the City's application. An order will be drafted for the next City Council agenda. - In reviewing the application forms, It was suggested that a copy of the CHAS (Comprehensive Rousing Affordability Strategy) be submitted and referred to in the application sections: 3. Local Housing Need and 4. AffordableHousingStrategy. Several potential Projects were discussed including: Acquisition and rehabilitation of condemnedresidentialProperty: Acquisition and resale of excess. New Capehart Air Force housing to first time home buyers or to home owner cooperatives. .. Development of single room occupancy facilities for the long term homeless. _ The need for supportive services, especially mental health services, for formerly institutionalized homeless persons was emphasised, as was the need for statereimbursementfor shelter operating costa and for the provision of services for homeless persons with the need for supportive services. The percentage of emergency shelter clients with such needs is now in the range of 654 to 1004. -1- AGENDA ITEM i4 - Ideas and Specific Projecta, It was the consensus of those present that we should not submit a specific project in the Application For Designation AS A Maine Affordable Housing Alliance community, but, rather, look for -windows Of opportunity" for the future selection of a project or projects. There was strong support for the development of SRO -type homeless shelter facilities with support services. NDA ITEM 83 - Non-profit Owned Residential Property Tax -Exemption There was -a-discussion of the City Council's recent call for State legislation to remove non-profit owned housing from the list of tax-exempt properties. There was widespread support for this position, because of the increaaed tax burden placed on owners of the remaining residential property and the resultant difficulty of continued public funding for affordable housing and associated Supportive services. There was also some concern expressed for small non -profits who were now struggling to survive and have no resources to pay for the increased operating cost associated with the payment of property taxes. In the case of newly developed non-profit owned housing, it was felt that lenders, particularly public lenders, should calculate an affordable interest rate for the borrower based on operating cost which includes. the payment of property taxes. AGENDA ITEM e5 - Open Discussion:. Items of general discussion during the meeting included Various areas which would or wouldnot be suitable for designation as a Housing Opportunity Zone. These areas included the University College campus, Bangor International Airport, New Capehart Air Force housing, the Musson College neighborhood, downtown and Carroll Street. The need for site control was mentioned. The -activities -of Habitat for Humanity to develop affordable and taxable housing for low-income first-time homeowner,. Two such homes have been constructed, sold and occupied in Bangor, with a lot being sought for another. Empowerment of low-income families through affordable home ownership. The need to place a resale value cap on such properties to reduce profit taking was mentioned. The need for an affordable housing coordinating agency. The use of service fees as a partial substitute for the payment of property taxes by residential property owning non -profits. The percentage of tax-exempt property in the City of Bangor is now 529. -2-