2007-01-02 - Laserfiche WebLink

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4 REPORTS : UPDATE TO HOUSING STRATEGIC PLAN AND CHARLOTTESVILLE AFFORDABLE HOUSING INVESTMENT PROGRAM Mr. Jim Tolbert, Director of Neighborhood Development Services, said that Council deferred action on the Housing Vision Theme at its previous work session so that the proposed Charlottesville Affordable Housing Investment Program (CAHIP) could be discussed in more detail. He said other changes made at the work session have been incorporated. Mr. Tolbert said that the Housing Advisory Committee has been meeting since September, and recommended CAHIP with funding to come from the following primary sources: 1) 25% transient room tax set aside - $500,000; 2) developer contributions - $500,000; 3) CDBG/HOME entitlement - $570,000; and 4) one cent real property tax set aside - $420,000. The proposal suggests that the funds be used as follows: 1) CDBG Housing/HOME/HOME Match funds for next 10 years to Charlottesville Redevelopment and Housing Authority’s (CRHA) efforts to revitalize public housing for a total FY 08 allocation of approximately $570,000; 2) developer contributions – all affordable housing contributions collected would be dedicated to the Thomas Jefferson Community Workforce Housing Fund for low and moderate-income homebuyers (under $80% AMI), estimated at $500,000 a year; 3) one cent real property tax set aside – dedicated to initiatives that preserve and expand homeownership opportunities for low-income (under 60% AMI) Charlottesville residents, approximately $420,000; and 4) 25% transient room tax set aside – dedicated to initiatives that preserve and expand supportive housing opportunities for very low-income (under 30% AMI) Charlottesville residents with special needs (elderly, disabled, homeless, etc.), approximately $500,000. Mr. Tolbert reviewed proposed guidelines for evaluating projects seeking CAHIP funds. He said the proposal does not restrict that CAHIP funds necessarily be spent in the geographical limits of the City. He said that all CAHIP funds, except CDBG/HOME/HOME match dollars would be managed by the Charlottesville Area Community Foundation to open up the possibility of regional contributions to these funds. Mr. Tolbert said that Council will have the ability to adjust CAHIP allocation formulas in the future. Mr. Tolbert listed the decisions that Council needs to make as follows about the proposal: 1) commit all CDBG and HOME dollars that are not dedicated to administrative or social programs to this project for 10 years? 2) set aside 25% of transient room taxes? 3) dedicate the equivalent of one cent of the real property tax to the fund; 4) using the Charlottesville Area Community Foundation to administer the workforce housing dollars? And 5) direct HOME/CDBG dollars to CRHA? Ms. Hamilton asked about the role of the Community Foundation and if it is envisioned that there will be regional contributions. Mr. Tolbert said the feeling was that the Foundation will be able to work with this donor base as they are already managing workforce housing funds now. Ms. Hamilton asked about the administrative costs, and Mr. Tolbert said he did not know. Mr. Taliaferro said that as he understands it, the funds would not have to be spent in the City. He said he does not have a big problem with that, but he would like to see people in the City taken care of. Mr. Taliaferro suggested that the County be approached for matching funds. Ms. Hamilton said she agrees that if funds are spent in the County then the County ought to be contributing financially. Mr. Taliaferro said housing is not a City only issue. Mr. Tolbert said he can get more information on the amount of money the County is spending on housing now. Mr. O’Connell said that staff is in the process of evaluating budget proposals, and said there are a lot of things to consider. He said one option is to phase the program in