ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to Concur with the Recommendation from the East Village Growth Cell Tax Increment Financing Economic Development Advisory Committee, and the East Village Growth Cell TIF Redevelopment Plan and Project, to APPROVE the AMENDMENT to the EAST VILLAGE GROWTH CELL (EVGC) Housing Program and Associated Program Guidelines.
Body
BACKGROUND:
The EVGC Housing Program was approved by Council on August 25, 2015. 2016 was the first year the program was available to residents. The East Village Growth Cell Tax Increment Financing District (TIF) Housing Program is a 50/50 matching grant program, which provides up to $15,000 of assistance to property owners of single-family residential, owner-occupied properties (duplexes and mixed use structures are excluded from the program) for permanent building and site improvements on parcels within the boundary of the East Village Growth Cell TIF. The purpose of the Program is to increase the owner-occupancy rate, improve the outward appearance of homes, and increase the assessed valuation of properties within the East Village Growth Cell Boundary.
The following provides a summary of the applications received for 2016:
• 68 applications were received.
o 21 applicants chose not to move forward with their proposed project.
o 32 applications were approved and decided to proceed with proposed work:
§ 16 completed projects
§ 10 in progress
§ 6 approved but not yet started
o 15 applicants on the wait list for 2017.
Overall, the Program went well for the first year; however, there were a few issues that arose, which have prompted the proposed changes to the Program. The following is a summary of the issues that were encountered during the first year of the Program:
• Property owners not having money available at time of application or even at time of notice to proceed (waiting until the 90 day window to start is about to end).
• Not enough contractors
• Delay in getting bids
• Delay in starting work
• Too much time given to the contractors to start the work
• Not knowing when the work has started
• Work taking too long
• Some instances of permits not being obtained
The following table outlines the proposed changes to improve the Program for 2017:
|
Proposed Program Change |
EVGC Recommendation |
Justification |
|
1. Include a Program purpose statement. |
Support |
To make the intent of the Program clear to applicants, as no purpose statement was included for 2016. |
|
2. Added a length of time that the properties must remain owner-occupied. Properties must remain owner-occupied for 3 years. |
Support |
To avoid potential situations of properties being renovated and sold immediately. |
|
3. Added language to further clarify that the Program is for single-family owner-occupied residential dwellings |
Support |
The Program was always intended for single-family residential dwellings but ‘single-family’ wasn’t included in the guidelines. |
|
4. Exterior Improvements only |
Support |
For 2016, mechanical system upgrades and energy efficiency improvements were allowed, in addition to exterior improvements. This resulted in more change orders, work scopes that weren’t detailed enough, and staff was unaware of when work had started. |
|
5. Applications will be accepted from March 1st to August 1st, as funding is available. |
Support |
For 2016, applications were accepted on February 15th with no closing date. The proposed change will allow enough time for bids to be provided before the weather allows for work to start and will allow work to be completed before the weather is prohibitive. |
|
6. Require two bids at time of application. |
Support |
For 2016, the applicant was given 30 days to provide bids, which slowed the process down. |
|
7. Contractors will be paid when the project is complete. |
Support |
For 2016, contractors were paid up front, which presented some problems if there were any issues with the work. |
|
8. Required permits must be pulled and work must being within 30 days of receipt of a notice to proceed. |
Support |
For 2016, applicants were given 90 days for the work to start, which kept other applicants on the wait list for too long. This change will also help ensure that all required permits are pulled. |
In addition to the above Program guideline changes, the following process changes will be made by Staff:
• A certified check made out to the contractor must be provided by the property owner to the City, within two weeks of an approved application.
• Committee members and staff will outreach to area contractors in an effort to get more contractors on the City’s list.
• A final document that certifies that all work was completed as requested and required will be signed be signed by the City, the property owner, and the contractor at the end of the project.
FINANCIAL IMPACT: When the program was originally approved August 15, 2015, $250,000.00 in available TIF Increment was designated to the EVGC HOUSING PROGRAM for 2016 and 50% of the Unrestricted TIF Fund Balance was designated to the Housing Program for subsequent years thereafter, for the remaining life of the TIF; approximately $89,740.12 will be designated to the Housing Program for 2017 and approximately $56,801.56 is remaining for 2016; for an estimated total of $146,541.68 available in 2017.
NEIGHBORHOOD CONCERNS: No concerns were expressed during the October 4, 2016 EVGC meeting when program changes were discussed.
IMPACT IF APPROVED: The housing program will continue to serve the East Bluff, with the changes as proposed.
IMPACT IF DENIED: The program would remain unchanged.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: Community Development