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Home My WebLink AboutMN-IURANI-2016-12-09Approved: 1/13/17 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY (IURA) Neighborhood Investment Committee (NIC) 8:30 AM,Tuesday,December 9,2016 Third Floor Conference Room,City Hall,Ithaca,NY Present:Karl Graham,Chair;Tracy Farrell;Vice Chair;Paulette Manos;Fernando de Aragón;Nels Bohn (staff);Charles Pyott (staff) Excused:Teresa Halpert Guests:George Frantz,George R.Frantz &Associates Shannon MacCarrick,Executive Director,Habitat for Humanity,Tompkins &Cortland Counties I.Call to Order Chair Graham called the meeting to order at 8:33 a.m. II.Public comment None. III.Review of Minutes –October 14,2016 Moved by Farrell,seconded by Graham.Unanimously approved as written.Manos abstaining.Carried Unanimously 2 0. IV.New Business 1. Conceptual Plans for Affordable Owner Occupied Homes at 402 S.Cayuga Street,Habitat for Humanity of Tompkins &Cortland Counties –Review Frantz explained the project is still very much in the preliminary design stages.He then walked through several drawings,including the following: Ithaca Urban Renewal Agency 2 Frantz indicated the bold red line depicted on the site study of existing conditions represents the set back line.In addition,there is a storm sewer pipe on the western portion of the property,which constrains what could be done on the site.The ideal situation would be to move the 12 foot access easement.Frantz indicated that he explored several ideas for the lot.The only design that initially appeared to fit on the property,while conforming to the City Zoning Ordinance,would be three townhouse units.That option,however,would probably be impossible to maintain as affordable living units,so Frantz subsequently designed the current four townhouse option,including the following details: Bold,different colored siding for each townhouse 9½foot drop from front of Cayuga Street sidewalk to ground level on the west side 3 Roof line would probably include solar panels (or at least configured as solar ready) Habitat for Humanity does not build full height subterranean basements,so a rear wall is proposed for the basement level;the future owners would be able decide if they would like to improve that space Potential ADA accessibility Each unit would have a short driveway (assuming easement can be renegotiated) MacCarrick noted that the local Habitat for Humanity chapter has access to Affordable Housing Corporation funding assistance through the statewide Habitat for Humanity organization.She noted that the funding does not categorically require complete ADA accessibility,though Habitat ensures full visitability.Frantz noted that each unit will include a first floor accessible bathroom and that front entranceways from Spencer St.can conform to ADA access route requirements. Bohn asked if the change in grade would pose any problems for the project.MacCarrick replied,yes.It would certainly cost more than a typical project. (De Aragón arrived at 9:10 a.m.) Bohn noted the project would only be eligible for HOME funding as a new construction project,so the financing package will need to be carefully considered,given decreased HOME funding and other competing funding proposals for HOME funds. Bohn also noted that,while the IURA owns the land,it does not have any agreements in place on how to dispose of it,so it will need to determine the best approach for doing that (e.g., open solicitation or negotiation with Habitat for Humanity as the preferred sponsor). Farrell observed the proposal seems very close to the Committee’s original wish list of elements it had been seeking for the site (e.g.,owner occupied,benefits low to moderate income families,environmentally conscious).Other members agreed. 2. Tompkins County Housing Summit Discussion Bohn reported that among the issues that were discussed at the summit were:accessibility; affordability;perspectives from both large and small developers,the Ithaca Board of Realtors, Tompkins Financial Corporation;and personal accounts of individual experiences with housing in the area.Tompkins County’s Planning Commissioner Edward Marx also presented the recent Downtown Ithaca Alliance (DIA)housing study results.Other subjects of discussion included: Instances of employers studying the local market and deciding not to locate here,once they examined housing availability Cornell University’s plan for a new 500 bed dormitory on its North Campus in five years brainstorming session of strategies for improving housing affordability/availability (e.g., launch local movement to prohibit source of income information as a means of denying housing) More information on the summit and future activity can be found on the official web site: www.housingtompkins.com. 4 Bohn added that Tompkins County just adopted a $50,000 annual budget for promoting affordable housing,which the Human Services Coalition (HSC)has been asked to develop a proposed use for (e.g.,rapid re housing,homelessness prevention,halfway house,community outreach). V.Old Business 1. Ithaca Neighborhood Housing Services (INHS)Scattered Site Housing Preservation Project Report Bohn remarked the INHS Scattered Site Housing Preservation Project is a complicated undertaking,comprising the following major components (as excerpted from its proposal): improve the quality of life for 98 low and moderate income families restrict the units as affordable housing for 50 years improve the energy efficiency of the portfolio to reduce greenhouse gases and cost of utilities improve the curb appeal of the buildings and,as a result,the blocks and neighborhoods where they are located capitalize reserves to mitigate ongoing maintenance and operating risk invest equity from the sale of the portfolio into the development of new affordable housing The total renovation budget would be over $6,000,000,which would be part of a total development budget of over $19,000,000.INHS will be asking the City to exempt the properties from taxes.Instead,INHS would make annual payments based on 12%of the properties’Net Operating Income (NOI)for a period of 30 years.(Net operating income is the amount of income equal to gross rents received,less operating costs.) Farrell observed one of the largest costs of the project appears to be the property management component.She suggested INHS could find ways of reducing those costs.Bohn replied that the financial projections are based on actual historical expenses according to INHS,as well as the assumption that many of the properties had been undermanaged under prior non INHS ownership. Farrell questioned whether there would really be such a great need for property management,once INHS has completed all the upgrades. Bohn noted the proposal will be discussed at the Planning and Economic Development Committee of Common Council,next week.No action is required by the IURA. 5 2. Status Update:Legislation Regarding Property Tax Assessment for Sales Price Restricted Homeowner Properties Bohn reported that the State passed legislation permitting the tax exemption of for sale, owner occupied,resale restricted housing,to address the problem of tax assessors valuing these kinds of properties at more than the resale restricted rate.The City will be considering adopting its own legislation,which would help INHS keep new for sale affordable housing projects financially viable and maintain the affordability of Ithaca’s existing housing stock. Property owners would apply individually to the tax assessor. 3. HUD Assessment of Fair Housing for Grantees –Report Bohn explained that the new HUD Assessment of Fair Housing for Grantees requirement for HOME/CDBG grantees would be in addition to the IURA’s Analysis of Impediments to Fair Housing conducted in 2015.HUD will require that its grantees examine various different mechanisms for addressing fair housing (e.g.,online,extensive public participation).The assessment is aimed to examine concentrations of poverty and racial/ethnic minorities in a given geographic area,and help grantees identify steps for enhancing local housing choices. The deadline for Ithaca is:November 4,2017.The work would probably involve up to a nine month process,tied to the creation of the IURA’s next five year Consolidated Plan.Once the IURA has filled its existing Community Development Planner vacancy,it should be able to begin work on it.Probably the single greatest time commitment would be the public participation process. 4. Project Updates Bohn reported that Liquid State Brewing Company,Inc.should be closing on its $70,000 IURA loan for a start up craft micro brewery with taproom at 527 W.Green Street. VI.Motion to Adjourn The meeting was adjourned by consensus at 10:47 a.m. Minutes prepared by Charles Pyott,edited by N.Bohn