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Work Session Minutes of the Town of Cary, NC

Affordable Housing

August 12, 2008

Conference Room 10035, 316 N. Academy St., Cary, NC

 

 

At 5:07 p.m. council members left Cary Town Hall to tour affordable housing projects within the Town of Cary.

 

Council members present:  Mayor Harold Weinbrecht, Mayor Pro Tem Julie Robison, Council Members Gale Adcock, Don Frantz, Erv Portman and Jennifer Robinson

 

Absent:  Council Member Jack Smith

 

The purpose of the tour was to acquaint council with the type of affordable housing created in the Town of Cary.  Council toured two affordable housing projects. 

 

The first projected visited by council was Callan Park (Habitat for Humanity) which consists of five minimally attached homes.  The houses were designed to follow the look and feel of the existing community. 

 

Council next visited Highland Village (DHIC) and toured The Commons, which consists of 52 one-bedroom and 16 two-bedroom apartments for seniors 55 and older; the Manor, which consists of 32 one-bedroom apartments for seniors 62 and older; and Highland Village apartments which have 50 one, two and three bedroom non-age restricted apartments.  Highland Village Towns were under construction and when completed will feature 48 three bedroom townhomes. 

 

Council was also shown some rehabilitation housing projects in downtown Cary, which is a program for low-income homeowners who need one or two major repairs made to their home. 

 

The tour ended at 6:10 p.m.

 

__________________

 

Mayor Weinbrecht called the work session to order at 6:28 p.m.

 

Present:  Mayor Harold Weinbrecht, Mayor Pro Tem Julie Robison, Council Members Gale Adcock, Don Frantz, Erv Portman, Jennifer Robinson, and Jack Smith

 

Philip Smith of the Planning Department said that the purpose of the work session is to provide council with an update to the affordable housing and consolidated plan.

 

Tracy Stone-Dino, of the Planning Department, provided an overview of the work session and stated that the Town has been using two funding sources.  (Staff’s PowerPoint Presentation is attached to and incorporated herein as Exhibit A.) 

 

Mrs. Robinson asked if the Town uses Community Development Block Grant (CDBG) funds for rehabilitation and whether that is considered affordable housing.  Mrs. Stone-Dino said yes.  She said the Town helps individuals who may not necessarily meet the income requirements but have an apparent need in terms of housing.  Mr. Smith said projects are based on the greatest need, the income of the family, and the estimated cost of the rehabilitation project.

 

Mrs. Stone-Dino said that staff has received feedback that the existing goals established in 2000 are good goals to build upon.  She said that the Town can continue to build upon its successes through partnerships made with non-profit organizations and strategically position ourselves with community resources from the affordable housing fund, the CDBG, and other funding sources.

 

Mrs. Stone-Dino introduced the consultants working on the project with the Town: 

Dr. Ernest Swiger, Swiger Consulting, Inc. (Stroudsburg, PA); Carol Lowy, Housing & Community Development Services, Inc. (S. Jersey, NJ); and, Dr. Ned Murray, Professor at Florida International University and Associate Director of the Metropolitan Center at FIU (Miami, FL).

 

Mr. Swiger reviewed the project objectives.  He said that consultants met with stakeholders to gathered information.  He said that everyone interviewed agreed there is a need for affordable housing in Cary.  He said they would like to develop some baseline of support and activity for the program. 

 

Ms. Lowy said that in 1974 when the housing act was passed by the federal government it was to be a program operating under a business plan—the concept wasn’t focused on housing. 

She said that under the business plan benchmarks have to be reported to Housing and Urban Development (HUD) and the community.  She said that the community development fund doesn’t provide the flexibility to build housing; it allows you to acquire land, pay for soft costs related to developing housing, and allows for infrastructure and financing, but it doesn’t allow you to build the actual structure. 

 

Ms. Lowry says that HUD money is a national objective to assist low moderate income families.  Moderate income is 80 percent of the median income for the area.  She said that within that group 15 percent or less of that income is considered the lower income group.  She said it’s difficult to providing housing for the 30 percent less than median income group because of their financial situation.  She said that HUD is looking at increasing the threshold for what is considered to be affordable housing and local resource subsidize those structures.  She provided examples of affordable housing projects in New Jersey ; Mr. Swagger provided examples of affordable housing projects in Colorado ; and Dr. Murray provided examples of affordable housing projects in Florida . 

 

Mr. Murray discussed the methodology for determining the demand for affordable housing in the Town.  He said that the methodology is based on an economic assessment of Cary, looking at the relationship between demand and need.  He said that estimates are based on Cary’s current existing sales. 

 

Mr. Portman said a more appropriate analysis would be to identify the sales of the most affordable 20 percent of homes in Cary, compare the median market average to that income, and do that for each tier.  Dr. Murray said that is something they will do.  He said it’s a process of looking at where Cary is relative to the various income categories and comparing it to the typical home price in the Town. 

 

Dr. Murray said that the number of owner and renter households are currently cost burdened (anything over 30% of monthly income going toward housing costs).  Mr. Portman asked how those numbers were ascertained.  Dr. Murray said they came from the American Community Survey which is based on census numbers. 

 

Mr. Swiger reviewed the preliminary opportunities, challenges, and next steps.  He stated that the affordable housing and consolidated plan has to be to HUD by mid-May. 

 

Mr. Smith said that staff would like to get initial direction from council regarding the type and size of the program they would like to see.  He said that staff would then bring back to council implementation strategies for different aspects of the plan. 

 

Mayor Pro Tem Robison asked staff to provide council with more elements of the consolidate plan.  Mr. Jack Smith said that he would like an understanding of Cary’s existing inventory and who it provides for so that council has the whole picture.  Mr. Murray said their game plan is to focus on the consolidated plan.  He said that HUD sets the types, amount and analysis of data needed.  He said they need to think about programs, objectives and means.

 

Mayor Pro Tem Robison said she would like to have some elements of the consolidated plan done by the next work session so that council focus on strategy.  Mr. Portman said he would like a statistical analysis of Cary and some best practices in terms of what can be done.  Mr. Frantz would like focus to be on incenting the private sector for some contributions.

 

Mayor Weinbrecht said he would like to see data inside of the Maynard loop as opposed to outside of the loop.  Mayor Pro Tem Robison said she would like to see geographic strategies.   Mrs. Robinson said that houses needing rehabilitation are inside the Maynard loop; she would like to target affordable housing outside of the Maynard loop. She said the school system looks at free and reduced lunch as a means of assigning children and dispersing affordable housing outside of the Maynard loop would help some of those families. 

 

Mr. Frantz said he would like council to tour some of the projects that they don’t want to encourage; he would like to see some of the projects that were done 5 or 10 years ago and identify things they don’t want to repeat. 

 

Mr. Smith said that staff will schedule another work session later in the fall to provide more data to council. 

 

Mr. Jack Smith said there needs to be a lot of interacting with council along the way, prior to the next work session. 

 

The work session ended at 7:52 p.m.