City of St. Petersburg Housing Services Committee APRIL 25, 10:30 a.m. Conference Room 100/City Hall

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1 City of St. Petersburg Housing Services Committee APRIL 25, 10:30 a.m. Conference Room 100/City Hall Mission Statement: To effectively address the on-going need for affordable livable rental and owner-occupied housing units within the city (by proposing legislation, developing clear-cut policies, supporting proven strategies and providing for the implementation of best practices). Members and Alternates: Councilmembers Karl Nurse, James Kennedy, Steve Kornell, Charlie Gerdes, and Wengay Newton (alternate) Support Staff: Joshua Johnson A. Call to Order B. Approval of Agenda C. Approval of Minutes 1. Minutes of March 28, 2013 D. New Business 1. Administration to present funding options to complete the reconstruction of the Jamestown Apartments - Tish Elston, City Administrator 2. Update of Foreclosure Counseling Assistance - Deborah Scanlon, President & CEO, St. Petersburg Neighborhood Home Solutions 3. Update of NSP-1 & NSP-3 - Stephanie Lampe, Sr. Housing Development Coordinator E. Follow-up (information only): 1. Provide a copy of the status of NSP projects. 2. Provide a spreadsheet of past year's housing accomplishments and current status. 3. Provide copy of Vacant and Boarded Properties. F. Adjournment

2 Attached documents for item Minutes of March 28, 2013

3 CITY OF ST. PETERSBURG Housing Services Committee Meeting March 28, 10:30 a.m. PRESENT: ABSENT: Committee Chair Karl Nurse, Councilmembers James Kennedy, Charlie Gerdes and Wengay Newton (alternate) Councilmember Steve Kornell OTHERS PRESENT: Councilmembers Leslie Curran and Jeff Danner; Leisure & Community Services Administrator Clarence Scott; City Attorney Pam Cichon; Housing & Community Development Director Joshua Johnson; Downtown Facilities Director Dave Metz; Code Compliance Assistance Director Gary Bush; Sr. Housing Development Coordinator Stephanie Lampe; City Architect Raul Quintana; Jamestown Apartments Manager Don Crawford; Assistant Code Compliance Director David Dickerson; and Assistant to the City Clerk Patricia Beneby Committee Chair Nurse called the meeting to order. Councilmember Gerdes moved for approval of the Agenda. Chair Nurse added two additional items of business to the Agenda: 1) update of foreclosure settlement and 2) properties offered to the City. All were in favor of the amended Agenda. Councilmember Gerdes moved for approval of the January 31, 2013 Committee minutes as submitted. All were in favor of the motion. In connection with the new business, Jamestown Apartments Update, Mr. Dave Metz and Mr. Don Crawford began their presentation by discussing what has transpired to date at the Dwight Jones Center and at Jamestown Apartments. Mr. Crawford provided a short power-point presentation of before and after photos of Dwight Jones Center and Jamestown Apartments. He discussed the amount of funding budgeted, the source of the funding for Dwight Jones, Jamestown Apartments Phase I and II, and discussed the remaining funding of approximately $2 million that is needed to complete the remaining 30 plus units. Mr. Crawford reported that the Pinellas Urban League expended $61,600 to weatherproof 21 units at Jamestown. Questions were asked in reference to cost savings due to the rehabilitation of the Dwight Jones Center. Mr. Raul Quintana responded that the City used energy grant money to replace mechanical units at the facility to save money on operation of the facility. He indicated that due to the improvements made at the facility, the Boys and Girls Club was scheduled to receive a portion of its escrow account. Mr. Crawford indicated that Phase II will begin on Monday, April 1, Chair Nurse and members of the Committee thanked Mr. Metz and Mr. Crawford for a job well done. No action was taken. In connection with the new business, Foreclosure Registry Update, Mr. Gary Bush, Director of Codes Compliance Assistance Department, indicated that the Foreclosure Registry has been in operation for a little over one week, and that he did not have a large amount of information at the present time. Mr. Bush reported that to date, approximately 400 cases are on file, and that a website has been developed and is up and running which provides information to vendors. The Committee requested Mr. Bush to come back after the program has been up and running after the next few months to provide an update. Additional comments were made requesting a demonstration of the program during Mr. Bush s return and that Mr. Bush provide information on homestead and non-homestead properties. No action was taken. 1

4 In connection with the new business, NSP-1 and NSP-3 Update, Ms. Stephanie Lampe reported that four NSP-1 properties are available for sale, with three under contract; five (5) NSP-3 properties are under construction; and that the new housing units are expected to be completed prior to June 30, Ms. Lampe further reported that the City received notification from the U.S. Department of Housing and Urban Development that it had met the expenditure deadline for NSP-1 funding by documenting that it expended the entire grant allocation received from the U.S. Department of Housing and Urban Development ( HUD ) prior to the deadline of March 5, The City also received communication from HUD that it did not meet its 50% expenditure deadline on March 9, In response to HUD s notification, the City was in the process of completing a letter of response with a time-line for completing the implementation of projects prior to March 9, 2014 (when 100% of funding must be expended). Ms. Lampe provided that HUD disseminated information on Wednesday, March 27, 2013, to all grantees who did not meet the expenditure deadline to continue to implement projects, and that HUD will conduct informal consultations to determine the ability of grantees to complete their projects prior to March Ms. Lampe indicated that the developer design RFQ will be solicited by the Purchasing and Material s Management Department beginning on April 2, Comments were made in reference to removing the photographs of homes that have been sold from the Webpage of the NSP Program, and other comments were made to leave pictures of the properties that have been sold on the webpage to show the history of the program, but identify which properties have been sold. No action was taken. In connection with the new business, Foreclosure Settlement Update, Chair Nurse informed the Committee of information he received that show the State of Florida does not appear to be using the Foreclosure Settlement funds as intended and have decided to not allocate State Housing Initiatives Partnership ( SHIP ) funding as intended. Mr. Joshua Johnson reported that the State is proposing to use a large segment of the remaining $200 million in funding that was under the control of the State Attorney s Office to provide down payment assistance for teachers, veterans, active-duty military personnel, nurses, doctors and state attorneys and public defenders. Mr. Johnson further reported that the Governor has requested $50 million in funding for SHIP during FY , but all reports coming from the state capital indicates that no funding will be allocated for the SHIP Program. Following continued discussion regarding the SHIP funding, Councilmember Kennedy moved to have a resolution prepared and approved by Full Council which supports the continued funding of the SHIP Program. All were in favor of the motion. In connection with the new business, properties offered to the City, Chair Nurse began the discussion by asking what funding sources the City has to accept property offered to the City by other entities. Mr. Johnson responded that in instances where a remnant is offered as happened recently by the Florida Department of Transportation. The offer is reviewed by all interested departments and a response provided to the Real Estate and Property Management Department of the interested department. In the case of the property discussed, Housing owns a parcel adjacent to the offered remnant but feel that at this time, we should wait until the FDOT decides to donate the property to the City. Funding that is usually used to acquire property consist of Housing Capital Improvement Program ( HCIP ) funding. The Housing and Community Development Department has almost expended all of its HCIP funding, and City Council will need to make a decision on how it would fund such acquisitions in the future. A question was asked about a parcel located at th Avenue South that was offered to the City by Wells Fargo. Staff had not received a copy of the memorandum at the time of the meeting and responded that it would review the offer and determine if it was appropriate to accept. No action was taken. Ms. Barbara Inman, Executive Director of Habitat for Humanity, indicated that she often spend time in Tallahassee and have been spending time locally advocating for SHIP. Ms. Inman confirmed that the 2

5 Senate Bill announced for the Mortgage Settlement Fund included $70 million for SHIP. She spoke in support of the Bill on the Senate Floor to use SHIP for its intended purpose. Ms. Inman responded that each local government should invite their representative on a tour to show them the wonderful affordable housing developments that have been assisted with SHIP funding. She suggested forwarding a resolution to the State would be something positive. There being no further business, the meeting adjourned at 11:40 a.m. 3

6 Attached documents for item Administration to present funding options to complete the reconstruction of the Jamestown Apartments - Tish Elston, City Administrator

7 MEMORANDUM TO: The Honorable Karl Nurse, Chair, and Members of the Housing Services Committee FROM: Tish Elston, City Administrator / 1-p SUBJECT: Financing Options for Completing Jamestown Renovations DATE: April19, 2013 Thirty-nine units will remain to be renovated in Jamestown at the completion of Phases I and II of the current improvements. Staff of the Downtown Enterprise Facilities Department (DEFD) has projected that Jamestown would break even, i.e., revenues cover current expenses, at 87% occupancy. They have also projected that at 1 00% occupancy an annual surplus of as much as $98,000 could be generated to establish a Reserve for Replacement & Repairs. With the number of units remaining to be repaired, assuming we continue the efforts to upgrade all units, it is unlikely 100% occupancy will be achieved during the remaining renovation period. To determine the City's ability to undertake the remaining renovations, Finance staff took preliminary costs developed by DEFD for completing the renovations of the 39 units at a level between the Phase I and Phase II costs and developed a debt service schedule for a 1 0-year borrowing to complete these renovations. This scenario would have an annual debt service cost of$260,000. Since the Jamestown Enterprise Fund will not be able to pay the debt service, this cost would fall to the General Fund. Until significant improvements in General Fund revenues occur, the General Fund is not in a position to add over a quarter of a million of debt service costs. It should be pointed out that the length of a borrowing cannot exceed the useful life of the improvements financed. Based on this analysis, staff looked at the following options for the remaining units: 1. Remaining units at Phase II improvements costing $30,000 per unit. 2. Remaining units at Phase II improvements plus electrical panel replacement costing $35,000 per unit. In rough numbers, the Option 2 costs would result in debt service costs in the neighborhood of $165,000-$175,000 annually, assuming the funds were borrowed in a single borrowing.

8 Further staff discussions indicated that the renovations cannot be accomplished on the 39 units at one time. Rather, the City Architect and Jamestown Manager suggest renovating eight units at a time, with each group requiring approximately 6 months to complete, a total of 2 Yz years. This would indicate that a staggered borrowing might be studied. Borrowing for each successive group of eight in six month intervals would decrease debt service costs, enable an orderly progression and management of the improvements, and possibly enable Jamestown to contribute to debt service payments on a limited basis as occupancy increases as improvements are completed. Staff has not had an opportunity to develop a debt service schedule for the staggered approach described above. The Mayor is recommending we develop and move forward with the Option 2 financing and renovation plan to complete the remaining 39 units. Details of financing costs will be provided to Council and incorporated into the FY 2014 recommended budget. Additionally, efforts will continue to seek alternative sources for funding Jamestown improvements. cc: Mayor Bill Foster Rick Mussett Chris Ballestra/Clay Smith Don Crawford Raul Quintana Anne Fritz Tom Greene

9 Attached documents for item Update of Foreclosure Counseling Assistance - Deborah Scanlon, President & CEO, St. Petersburg Neighborhood Home Solutions

10 RALPH FOWLER "At 75 you don't start over. And I thought that at my age I was losing everything and the.re was nothing else I oould do. I've always taken care of my family; but when you get something in the mail that says greetings you are going to be in foreclosure and then someone knocks at the door and gives you papers to that effect and have you sign them, it just takes all the wind out of your sail. " "Without Neighborllood Home Solutions, none of this would have ever happened. I CXlllkln't do it by myseh. A load had been lifted olfo me. My house was given back to mejr NOLISHA WORRELL "I tried to seek assistance by going to different attorneys that were advertising for helping with loan modifications and helping with getting you get back on track. And that was very costly and they was not able to help me. "I came and spoke with a representative. I felt a little embarrassed and stf)t orlgl nally thinking that wt:ni you knt:ni I am in a foreclosure, this is kind of embarrassing, bad to society. But the representative assured me that everything was fine; this is something that is gong on with the whole world; it's not just me. And a month we turned it aroij1d it around nt:ni I am able to start making my payments with the loan company. GARTH KAR.ffiER We lo\ e them. I mean It took a lot or stress orr or us because we reel like we ha\ e someone In oui' comer that 8 (lolng to bat ror U8 and that can comnmnlcate ror us that maybe you know carries a little clout with the mortgage companies and the banks rather th11n-you know- me. BUD AND TORI BLANKENSHIP (BUD) "I don't know what happened to the economy that just all of a sudden everything went flat. And I don't know what caused it and in my life I've never seen a time when property didn't increase in value. I( you own land it would be alright. R (BUD) "We were scared to death; I mean I thought we would be homeless. (TORI) "But Linda gave us hope." (BUD) "Yeah and she said 'You're not the only one, you're not the only ones in this shape. You're not lazy. You're not out of work. Youjust...you know... the economy has just got you in a trap." (BUD) "We would still be in this trap if it hadn't been (or Linda." (TORI) "It's having somebody that truly cares about you and your situation instead of somebody on the other end of the phone. But to have her... uhm... kind of as the safety. You know, she took care of everything and she made it ok." HYACINTH FRANCIS "I am so thankful that I came here and I received the help that is here. It's like a burden been lifted off me. So, I would say thanks to this program. It helped me a whole lot.

11 Attached documents for item Update of NSP-1 & NSP-3 - Stephanie Lampe, Sr. Housing Development Coordinator

12 Attached documents for item Provide a copy of the status of NSP projects.

13 HOMES FOR SALE April15, NEW CONSTRUCTION PROJECTS Bed Gross Lot Sales Price & ADDRESS Rooms Baths Sq. Ft. Size Date nd AveS x127 SOLD th AveS x122 SOLD th AveS 3 2 1,245 50x145 SOLD th St S 3 2 1,245 60x100 SOLD th Av S 3 2 1,245 50x120 $95, th AveS 3 2 1,245 46x128 SOLD th AveS 4 2 1,350 45x127 $79, th AveS 3 2 1,308 50X100 SOLD MLK St. S 3 2 1,200 60x130 SOLD rd St S 4 2 1,206 63x110 SOLD th St S 3 2 1,443 45x119 SOLD th Ave N 4 2 1,306 40X127 SOLD th AveS 3 2 1,200 50x121 SOLD th AveS 3 2 1,450 48x138 $82,000 BUILDER American Housing Corporation American Housing Corporation Griffin Construction Griffin Construction Griffin Construction Griffin Construction New Millinnial Homes American Housing Corporation New Millinnial Homes General Home Development General Home Development Griffin Construction American Housing Corporation Griffin Construction 'II[ REMODELED HOMES Bed Gross Lot ADDRESS Rooms Baths Sq. Ft. Size Sales Price th AveS x99 SOLD th AveS 3 3 2,251 50X102 SOLD Melrose Ave S 3 1 1,012 47X97 SOLD th AveS 3 2 1,200 45X97 SOLD th Ave N X127 SOLD th Ave N 3 2 1,348 45x118 SOLD th Ave N x116 SOLD Freemont Terr S 3 2 1,239 42X90 $47, th Ave N 2 1 1,300 50x117 SOLD Queen St N X126 SOLD st.patersbura OTHER REMODELED HOMES Union Street I 3 I 2 1 1, sxa3 Sold !Fairfield Avenue S I 3 I 2.5 I 1,376 I 43x99 Sold Limited Down Payment Assistance Available I!DUAL HOUSING OPPORTUNITY

14 Attached documents for item Provide a spreadsheet of past year's housing accomplishments and current status.

15 ( ( ( Housing Delivery Goals Chart for FY Oct 1, 2012 through Sep 30, 2013 Purchase 2 $36, $189, $18, $225,153 Purchase Rehab Rehabilitations 2 $104, $173, $277,919 Lead Abatement Developer g :mcy I I I $ I $37, I 4 I $48, I I I I I 9 I $96,255 2 $29, $15, $44,218 ugh September 30, 2013 Revised

16 (. ( ( " Housing Delivery for FY ,..;Oct 1, 2011 through Sep 30, 2012 Purchase 6 $100, $246, $12, $359,052 Police Purchase Police Rehab Rehabilitations 1 $49, $118, $201, $369,039 Lead Abatement Developer IQ I 9ncy I 4 $29, $202, $237, $468,944 $1, $16, $54, $72,357 6 September 30, 2012 Revised

( ( ( City of St. Petersburg Housing Delivery for FY 201 0-2011 Oct 1, 201 0 through September 30, 2011 4 $38,350.00 17 $151,435.

17 ( ( ( City of St. Petersburg Housing Delivery for FY Oct 1, through September 30, $38, $151, $24, $213,785 Police Rehab Rehabilitations I I I 4 I $111, $77, $55, $243,982 Lead Abatement I I I Developer Housing I I I 4 1 $36, I 2 $19, $3, $58,690 Emergency Repair I 7 I $41,38o.2s I 12 I $91,76o.so I 5 I $44, I 5 I $35, I I I I I 29 I $213,077 $ $29, $12, $41,937 $12, $98, $57, $51, $219, September 30, 2011 Revised

18 (. ( ' ( ' i 0-30% 30-50% AMI AMI Units $ Units $ City of St. Petersburg Housing Delivery for FY uct 1, 2uus 1 nrougn :sep ~u. 201 o IBo % 60-80% 120% AMI AMI AMI Units $ Units $ Units ll:ow 150% AMI Total Total$ $ Units $ Units Expended Purchase Assistance 7 $130,000 Teacher Purchase 6 $69, $453, $63, $715,925 $98,100 5 $98,100 Police Purchase I ; Police Rehab Rehabilitations 2 $100,000 3 $82,948 2 $62,000 2 $99, $162, $162,659 9 $344,788 Lead Abatement 2 $21,000 2 $14,000 Developer Housing 1 $2,000 2 $7,975 7 $44,975 Energy Conser 2 $2,429 2 $10,000 Emergency Repair 2 $74, $99,826 Warranty 1 $4,715!My Safe Florida 6 $40,408 5 $24, $22,839 5 $43,175 $22, $100, $240,455 1 $4,715 lsarrier Free 6 $22,012 8 $29,845!'.. lui IL'allt:< I Hardening 6 $67, $157,023!Housing!Replacement Total 20 $287,492 I< 4~.. ~/~~~;,~ : i!through September 30, 2010 Revised $11, $62,857 5 $68,364 5 $72,000 3 $37, $402,287..: 2ft }'f ~::~~-,,~y: ;:, ti'.)c~c 'f :;~::.:~ 9i:~;:~Mi ~l i:: ~'f~ _\;;-;; ~ ~~~~ 2~~g; :;. _. 11'~. $2,176,958

19 Attached documents for item Provide copy of Vacant and Boarded Properties.

20 SUPPORTING STRONGER NEIGHBORHOODS Boarded-Up Vacant Structures ~---,_-...,,,~.=, '1-11t----'-=-'-c-,-~ --,_,.,9'i111''---~ 700 -t '------~ ~-- _: :_----' ~ ~ ~-- ~~2--~~~ ~~ ~~~ ~ ~~--w~--~~-~w-~ ~ ~~-~= '-'~ f"""'t-----= ~~L-~~L-~~~~~~~~~~w.~~~~~~~~~~~~~~ 20( Fiscal Years c::::::jcity (other) =childs Park c:::::::jmidtown Citywide Total Codes Compliance Assistance Chart represents boarded-up vacant structures identified through field investigations. A boarded-up vacant structure is any residential or commercial structure, regardless of ownership, that Is both vacant and has securing boards over doors and windows. Each identified vacant structure with securing boards is inspected periodically to ensure the structure remains secure. City performance measure comparisons are for the prior 10 years. Data through 12/31/2012; updated annually. Childs Park not measured prior to 2006.

The Sadowski Act Local Housing Trust Fund

The Sadowski Act SHIP Program: What s Happening Now The Sadowski Act Local Housing Trust Fund monies fund the local SHIP program in all 67 counties and 50 entitlement cities in Florida. Having a dedicated