CENTRE REGION COUNCIL OF GOVERNMENTS (COG) TRANSPORTATION AND LAND USE (TLU) COMMITTEE Monday, 12:15 p.m. Centre Region COG Building Minutes Transportation & Land Use Committee Members Present: Theresa Lafer, Chair Frank Harden, Vice Chair Steve Lyncha Laura Dininni Barbara Spencer Betsy Whitman Rob Cooper State College Borough Harris Township College Township Ferguson Township Halfmoon Township Patton Township The Pennsylvania State University Others Present: Tom Zilla Trish Meek Greg Garthe Michael Patroski Lyssa Cromell Mike Bloom Linda Marshall Ray Stolinas Centre Regional Planning Agency () Centre County Planning & Community Development Office (CCPCDO) CCPCDO Ferguson Township Planning & Zoning 1. CALL TO ORDER AND INTRODUCTIONS Ms. Lafer called the meeting to order at 12:18 p.m. 2. CITIZENS COMMENTS There were no citizens comments. 3. APPROVAL OF MINUTES Motion was made by Mr. Harden and seconded by Ms. Dininni to approve the minutes of the June 4, 2018 COG Transportation and Land Use (TLU) Committee meeting, as presented. The motion carried 6-0. Ms. Spencer was not in attendance at the time the vote was taken. 4. OPEN DISCUSSION FOR COMMITTEE MEMBERS Ms. Lafer reported that the bicycle/pedestrian facilities had to be removed from the Borough of State College s Easterly Parkway reconstruction project due to a high bid. The Borough may be requesting assistance with a grant application to complete the bike/pedestrian component of the project; Senior Transportation Planner Trish Meek confirmed that she can assist as requested.
Page 2 5. A COMPREHENSIVE APPROACH TO AFFORDABLE HOUSING IN THE CENTRE REGION Senior Planner Greg Garthe reviewed that at its June 4, 2018 meeting, the TLU Committee requested that the provide a summary of existing affordable housing programs and initiatives in the Centre Region. He directed the Committee s attention to the narrative in the agenda, which discusses the existing affordable housing framework, the current role of the within this framework, and three potential paths forward: a) Increase staff capacity for affordable housing programs; b) Undertake a consultant study to recommend changes to affordable housing initiatives in the Centre Region, or c) Maintain the status quo. As Mr. Garthe noted, the discussion of housing issues in the Centre Region is complicated because several entities are involved, including Centre County government, the six Centre Region municipalities, and various non-profit organizations. Ms. Lafer thanked Mr. Garthe for introducing this item, and the discussion commenced. Ms. Dininni observed that one challenge in terms of workers ability to find affordable housing in the Centre Region is the differential growth between pay rates and the cost of housing. She suggested partnering with the Chamber of Business and Industry of Centre County (CBICC) to encourage large employers to pay livable wages in order to close the gap. Ms. Lafer pointed out the diagram Continuum of Housing in Centre County (included in the agenda packet) illustrates the complexity of the housing issue and how communication between the local governments and non-profit organizations is essential. Mr. Harden observed that most of the affordable housing in the Centre Region is targeted towards low income individuals (e.g. single-parent families, the elderly, persons with disabilities), while workers earning more than the federal income guidelines for subsidized housing are forced to live in surrounding communities. He noted that because 60% of the area median income (AMI) in the Centre Region is about $30,000 per year ($15-$16 per hour), those needing workforce housing are not eligible for low income housing. He pointed out the cost of longer commutes in terms of time, transportation costs, and environmental impacts is not sustainable, and what is really needed is housing that is affordable and close to jobs. He also pointed out a significant number of Penn State University employees live outside the Centre Region, due in part to a lack of entry level housing. He suggested there may be a need to relax luxury (non-safety related) code items and explore other ways of bringing down the cost of construction in the Centre Region, such as streamlining permits and deferring the cost of utility connections for affordable units. Ms. Dininni remarked on the development community s perception of what is affordable and suggested there may be a need to incentivize the construction of smaller homes. Mr. Lyncha pointed out the shortage of affordable housing in the Centre Region is market driven. He observed that as soon as affordable units go on the market, they are snatched up for conversion to rentals. Ms. Lafer pointed to the Borough s First-Time Homebuyers Program and the State College Community Land Trust as resources for prospective homebuyers, but acknowledged these are not well known. Building on Mr. Lyncha s observation about the conversion to rentals, Mr. Harden said this raises the question of how to keep units affordable as they change hands over time. Mr. Lyncha remarked that real estate in the Centre Region is exorbitantly expensive, and this is a market problem that local government cannot solve. He also pointed out some workers prefer to live outside the Centre Region because they do not want to pay high taxes.
Page 3 Ms. Spencer observed that some developments that appear to be affordable, such as the Vista Woods manufactured home community in Patton Township, are not truly affordable when the lot rental/homeowners association fees are taken into account. Mr. Harden suggested the possibility of incentivizing pocket neighborhoods by charging a single fee to connect utilities to a number of smaller homes on a single lot. Mr. Lyncha pointed out College Township has a workforce housing ordinance in place. He supported Mr. Harden s suggestion about relaxing some zoning requirements, such as open space, in order to make the construction of affordable housing economically viable. With regard to pocket neighborhoods, Ms. Lafer noted the Borough has enacted anti-infill legislation in order to prevent developers from exploiting infill projects for the student housing market. Mr. Lyncha reiterated the lack of affordable housing in the Centre Region is a market problem and said the abundance of high-paying jobs actually drives property values up. Developers are choosing to build big homes on big lots because the market can support it. Using rollover funding in College Township s industrial development authority as an example, Ms. Dininni suggested encouraging investment partnerships that develop work/live projects. She also suggested encouraging the economic development community to focus on attracting companies that pay a living wage. Ms. Lafer pointed out Patton Crossing is envisioned as a live/work development, but neighboring residents spoke out against it because of the density. Mr. Lyncha suggested inviting representatives from the local development community to present information about regulations that could be eased in order to encourage the construction of affordable housing. Mr. Harden agreed that private sector involvement is essential and said the building code has become a luxury code that goes far beyond on safety and welfare. Ms. Whitman expressed concern about the environmental impacts of long commutes and said she would like to see a reduction in the number of miles traveled. Along those lines, she encouraged extending ride share and transit services to outlying communities. She felt strongly that energy efficiency codes should not be relaxed, both for environmental and cost of living reasons. She also felt strongly about the value of diversity that affordable housing can bring to a community. In response to a question regarding Patton Crossing s affordable housing component, Mr. Garthe confirmed that the developer is taking advantage of a low-income housing tax credit for the 5% of units that are required. Mr. Lyncha pointed out the need to differentiate between workforce and low income/homeless housing issues and said there is a real need for housing that young families can afford. Ms. Spencer noted that apartments in the Centre Region are also unbelievably expensive because apartment owners can rent to students by the bedroom. Mr. Lyncha added that much of the low income rental housing in the Centre Region is also occupied by students. Ms. Spencer suggested the need to establish a commission of elected officials, developers, real estate agents, and other housing professionals to discuss incentives, the easing code restrictions and permitting fees, etc.
Page 4 Ms. Lafer explained that the Centre County Affordable Housing Coalition already fills that role, but the problem is incredibly complex. In response to a question from Mr. Cooper regarding the availability of consultants who could provide an analysis of the Centre Region s affordable housing initiatives, Mr. Garthe said the would explore this option if so directed. However, such a study would require approval by the COG General Forum. Ms. Lafer elaborated on Mr. Lyncha s observation that the cost of housing is market driven by saying area real estate agents would like to turn State College Borough homes about every three years. Mr. Lyncha acknowledged that frequent turnover can be expected in such a transient community, and it does tend to drive up real estate costs. Ms. Spencer pointed out some Penn State University students parents are buying units for their children to live in while attending the University, negatively impacting the affordable housing inventory. Ms. Lafer explained that in State College Borough, the regulations governing Student Homes make it very difficult to convert single-family homes to student rentals. Ms. Lafer expressed an interest in learning which of the Centre Region municipalities affordable housing incentives have worked, and which have been ignored. She also expressed concern that if all of the Centre Region s affordable housing is taken up by students, it is not available to anyone else. Mr. Cooper pointed out the development of affordable housing should be encouraged along robust CATA routes and suggested a study to identify potential sites. He also suggested looking to other communities for ideas about zoning regulations that incentivize the development of affordable units. Mr. Lyncha reported that a recent zoning change along Shiloh Road in College Township allowed for the development of a new low-income subsidized housing project. Ms. Dininni suggested raising the real estate transfer tax as a strategy for discouraging the frequent turnover of properties. Ms. Whitman said she would be interested in seeing a consultant study. She described the current process of encouraging affordable housing as piecemeal and felt there should be more coordination at the regional level. As a recently elected municipal official, she felt the need for guidance when making decisions that could have regional impacts. Ms. Lafer, on the other hand, said she would not support a consultant study, based on the COG s experience with the Economic Development Assessment of the Centre Region. In response to Ms. Whitman s concerns about regional coordination, Mr. Harden remarked that the Centre Region Comprehensive Plan is supposed to drive decision making in the Region. He said he appreciates the opportunity to have this discussion and looks forward to the next steps. At this point, Ms. Lafer asked staff for input. In response, Mr. Zilla recommended presentations from local workforce/low income housing experts, followed by presentations from the Centre County Association of Realtors and the local development community. Based on the information provided, the TLU Committee could then make a recommendation to the General Forum regarding the investment of staff time, a consultant study, or support for existing entities.
Page 5 Ms. Lafer reiterated the need to know what the other Centre Region municipalities are doing to encourage affordable housing. Mr. Cooper suggested looking at the City of Chicago s Affordable Requirements Ordinance as an example of a mandated approach to providing affordable housing. Ms. Dininni explained that workforce housing is mandated under Ferguson Township s Traditional Town Development (TTD) Ordinance; however, after constructing the first two phases of the Turnberry TTD, the developer claims that providing the affordable units it is not feasible. Acknowledging that developers may not be eager to provide the affordable units, Ms. Lafer said the contract language must be very specific. Mr. Harden suggested a need to follow up on the affordable units developed using the low-income housing tax credit to see what the current rental rates are. In response, Centre County Senior Planner/Housing Coordinator Linda Marshall reported that Ashworth Woods is at the upper limit of fair market rent, while Waupelani Heights is at the lower limit. Some residents receive housing assistance, but the rents are still too high for someone making 60% of the AMI. Ms. Marshall agreed that it would be helpful to know how the development community views the existing affordable housing ordinances and their reasons for not taking advantage of the incentives. She suggested Andy Haines of S&A Homes and Tommy Songer of Gambone, Songer & Associates as good resources for gaining the development community s perspective; Mr. Haines understands the development process and subsidy programs, while Mr. Songer understands the cost of development and the local real estate market. She also pointed out the Centre County Association of Realtors 2011 market analysis found that homes in the State College Area School District were not affordable, and that data might be of value in future housing discussions. Mr. Zilla asked the TLU Committee members to provide their questions to staff via e-mail so that answers could be provided at the August meeting. 6. OTHER BUSINESS The next TLU Committee meeting is scheduled for Monday, August 6, 2018 at 12:15 p.m. in the COG Building Forum Room. The next CCMPO Coordinating Committee meeting is scheduled for Tuesday, July 31, 2018 at 6:00 p.m. at the Patton Township Municipal Building. Agenda items will include approval of the Centre County Air Quality Conformity Analysis, amendment of the Centre County Long Range Transportation Plan (LRTP) 2044, and adoption of the 2019-2022 Centre County Transportation Improvement Program (TIP). 7. ADJOURNMENT Mr. Lyncha moved to adjourn, seconded by Ms. Dininni. There being no further business, the meeting of the COG Transportation and Land Use (TLU) Committee was adjourned at 1:47 p.m. Respectfully submitted, Lyssa Cromell Recording Secretary