[I. CALL TO ORDER]
[00:00:10]
JULY 7 20 22 IN A TOWN OF THE HOUSING COMMITTEE MEETING IS NOW CALLED TO ORDER.
>> CAN YOU GET A ROLL CALL PLEASE? >> FROM HAMILTON PRESIDENT DAN
WOOD HERE. >> JOHN NICOLE WHEN IN CHAMBERS MAKE JAMES HERE THERE DENOTES
POLITE DAN GRACE STAPLES HERE. >> THANK YOU. WHEN THE ADOPTION OF THE AGENDA
[III. ADOPTION OF THE AGENDA]
IS NEXT. CAN WE GET SOMEONE TO MAKE THEM CANNOT GET A MOTION TO ADOPTTHE AGENDA PRESENT. >> I'LL MAKE A MOTION SECOND IS THE MOVE AND PROBABLY SECOND ALL IN FAVOR LET THEM KNOW BY SAYING I OPPOSE AS. WE ALSO HAVE THE MINUTES FROM
[IV. ADOPTION OF MINUTES 1. June 2, 2022]
JUNE 2ND 20 22. CAN I GET A MOTION TO TAP THOSE MINISTERS AND MAKE A MOTION TO ADOPT THOSE MINUTES TARGET TO MOVE AND PROBABLY THE SECOND ALL IN FAVOR.>> I SAY I. I HAVEN'T. >> I BELIEVE EARNING ONE WHO WANTS TO VOTE OTHERWISE THINKING OKAY. PUBLIC COMMENT.
WE HAVE NO PUBLIC COMMENT. >> THANK YOU. MAKES YOU DO ALL A NEW
BUSINESS. PLEASE. >> THERE IS NO BUSINESS.
[VII. NEW BUSINESS]
>> ARE YOU GOING TO PRESENT THE NEW BUSINESS THEN? >> YES, SIR.
LET ME GO AHEAD AND AS YOU KNOW WE'RE BEGINNING OUR NEW FISCAL YEAR AND WE'RE CONTINUED WITH THE SAME BUDGET THAT WE HAD IN OUR LAST FISCAL YEAR. I WON'T GO THROUGH THE NUMBERS FOR EACH OF OUR PROGRAMS BUT AGAIN THE BUDGET REMAINS THE SAME ONE HUNDRED NINETY FOR THE HOME REPAIR FOR SAFE AND RIGHT REPAIRS. WE ARE CLOSING OUT FOUR APPLICATIONS FROM THE SCHOOL YEAR TWENTY TWO AND THEN WE ALREADY HAVE FOUR APPLICATION FOR OUR NEW FISCAL YEAR. AND WE'VE SENT TWO APPLICATIONS OUT FOR INCOME VERIFICATION AND I DO WANT TO ADD TO THAT VICTORIA SMALLS PROVIDED SOME INFORMATION ABOUT OUR HOME REPAIR PROGRAM OR A NEIGHBORHOOD ASSISTANCE PROGRAM FOR THE LAST FOUR YEARS.
>> AND AS YOU CAN SEE FROM THE CHART ON SCREEN, WE'VE SPENT MOST OF OUR BUDGET FOR SAFE AND DRY REPAIRS FOR LAST YEAR. THAT COULD BE A COMBINATION OF FACTORS FROM PEOPLE APPLYING FOR ASSISTANCE AFTER COVERED THE NEED DEFINITELY IS GREATER AND I HAVE TO SAY THAT VICKIE HAS DONE A GREAT JOB OF REACHING OUT TO THE COMMUNITY AS WELL.
>> THANK YOU. ANY QUESTIONS OR COMMENT ON THE REPORT? GOOD LOOKING REPORT. GREAT. GOOD.
OKAY. OKAY. IS THAT ALL YOU HAVE, SIR? YES, SIR. IT'S ARE YOU READY TO GIVE YOU UPDATES?
[VIII. 1. State of Mind Contract Update, Richardson LaBruce, Town Attorney]
>> I AM, MR. CHAIRMAN. WELL, THANK YOU MEMBERS OF THE AFFORDABLE HOUSING COMMITTEE FOR HAVING ME HERE TODAY. I I WOULD LOVE TO BE ABLE TO PRESENT AND WITH A YOU JUST ASSIGNED AGREEMENT HERE AND THE SIGNATURE PAGES. THIS IS WHERE WE STAND AFFORDABLE. WE'RE NOT QUITE THERE YET. I DO BELIEVE THAT THE TAIL MANAGER IS MEETING WITH THE HEAD OF THE DEVELOPMENT FIRM THAT'S WORKING ON THIS PORTABLE
[00:05:03]
HOUSING AGREEMENT LATER TODAY TO DISCUSS THE PROGRESS AND WHAT WHAT MAY BE HOLDING THAT UP AS FAR AS WHERE WE STAND. WE HAVE AN AGREEMENT THAT TOWN COUNCIL AS WELL AS I ASSUME THE HOUSING COMMITTEE KNOWS THAT THE TOWN COUNCIL HAS APPROVED IN PRINCIPLE SUBJECT TO A FEW MINOR MODIFICATIONS THAT WE WERE MAKING. ONE OF THOSE MODIFICATIONS WAS A ORIGINALLY ATTACHED DOCUMENT WAS A PROPOSED SET AFFORDABILITY COVENANTS THAT DEALT WITH RENTAL RESTRICTIONS SINCE THE FIRST PROJECT THAT WE'RE DOING IS GOING TO BE SINGLE FAMILY OWNERSHIP. THOSE HAVE TO BE REVISED AND WHAT WE'RE USING AS OUR BASELINE DOCUMENT HAS BEEN PREPARED BY THE CITY OF CHARLESTON.SO WE'RE USING SOME COVENANTS IN THE CITY OF CHARLESTON AS DONE FOR SOMETHING THE FAMILY HOME OWNERSHIP PROJECTS IN THE PAST AND JUST MODIFY THOSE TO MAKE SURE THAT THEY FIT FIT FOR TEN NINETY FIVE MAIN RIVER ROAD IF I'M PROVIDING TOO LITTLE INFORMATION OR TOO MUCH INFORMATION I'LL JUMP IN. AND PLEASE PLEASE ASK ANY QUESTIONS THAT YOU THAT YOU HAVE. AS YOU ALL KNOW, NANNY FOUND MAY RIVER ROAD PROJECT IS GOING TO BE IT'S INTENDED TO BE 14 I BELIEVE 14 PROPERTIES 14 UNITS AND WE'RE UP TO 14 UNITS POSSIBLY TWELVE AND IT'S GOING TO BE MIX MIX THAT INCOME LEVELS.
SO THERE CAN BE CERTAIN THAT CAN BE DESIGNATED FOR 16 BELOW. I'M CERTAIN THAT IT COULD BE DESIGNATED FOR 80 AND BELOW AND CERTAIN FOUR HUNDRED AND BELOW. IT'S GONNA BE MIXED BEDROOM TYPES AS FAR AS WE KNOW FROM CONSOLE, FROM CONSULTING WITH THE DEVELOPER THE PROJECTS STILL SEEMS TO BE A PRIORITY OF THEIRS. THEY BELIEVE THAT IT'S GOING TO BE EFFECTIVE AND THEY'RE GOING TO BE ABLE TO REPLICATE SIMILAR PROJECTS THROUGHOUT BLUFFTON.
ONE OF THE BIG THINGS I I ANTICIPATE THIS IS KIND OF SPECULATION I ANTICIPATE IS
PERHAPS SLOWING THIS PROCESS DOWN A LITTLE BIT. >> IS THE UNCERTAINTY REGARDING INTEREST RATES BECAUSE THEY'RE GOING TO HAVE TO SECURE FINANCING AS WELL AS MATERIAL COSTS AND MAKING SURE THAT THE AGREEMENT ADEQUATELY COVERS ANY SUBSTANTIAL RISE IN ANY OF THOSE. I THINK IT DOES WHILE ALSO PROTECTING THE TOWN.
BUT WE BELIEVE THAT WE'RE GOING TO HAVE A SIGNED AGREEMENT WITHIN THE NEXT 30 DAYS.
>> I HAVEN'T REQUESTED PHONE CALL WITH THE COUNCIL FOR THE DEVELOPER.
LATER TODAY IF POSSIBLE TO SEE IF WE CAN FIGURE OUT WHAT EXACTLY THE MAJOR HOLD UPS ARE . I TRULY WISH I COULD GIVE YOU SOMETHING DEFINITIVE AT THIS MOMENT BUT UNFORTUNATELY I JUST DON'T HAVE THAT THAT ABILITY ANY ANY QUESTIONS?
>> YES, THIS IS VERY STAPLES. I DO HAVE A QUESTION. YOU SAID 60 BELOW 80 BELOW 100 BELOW. IS THAT 60 BELOW INCOME, TOTAL FAMILY INCOME?
WHAT ARE. >> YES, MY HOUSE IS IN THE STAPLES THE SO THAT WE HAVE AND
I'M SORRY I DON'T MEAN TO. >> I THINK I'M MAYBE HAVING SOME INTERNET ISSUES HERE.
LET ME SEE IF I CAN MOVE THIS COMPUTER. >> ALL RIGHT.
>> THERE WE GO. MISS STAPLES, I'M SORRY IF I CUT YOU OFF.
I DIDN'T MEAN TO. I THINK NO. OKAY.
SO THE WAY THAT WE HAVE IT FRAMED IS 60 PERCENT. I AM I.
SO IT IS GONNA BE BASED OFF THE AREA MEDIAN INCOME THAT'S ALSO GOING TO BE DETERMINED BY HOUSEHOLD SIZE AND THE WAY THAT WE DRAFTED THIS DOCUMENT IS ESSENTIALLY CREATE A DEFINITION OF QUALIFIED HOUSEHOLD. SO A QUALIFIED HOUSEHOLD IS GOING TO BE A HOUSEHOLD THAT MEETS THE MANDATORY EMR REQUIREMENT BE AT 60 PERCENT BELOW 80 PERCENT BELOW 100 PERCENT BELOW. BUT ALSO HAS ALSO WILL BE AN APPROPRIATE HOUSEHOLD SIZE TO FIT WITHIN THE APPROPRIATE UNIT. SO THAT WE DON'T HAVE A HOUSEHOLD WITH FIVE OR SIX INDIVIDUALS TRYING TO GET INTO A ONE BEDROOM OR TWO BEDROOM.
I THINK IT'S ABOUT IT'S MAKING SURE THAT OR YOU KNOW, A HOUSEHOLD OF TWO GOING INTO A THREE BEDROOM HOUSEHOLD UNIT THAT MAY BE AVAILABLE TO THE WAY THAT WE STRUCTURED THAT IS BASED OFF OF HOUSEHOLDS. IT'S TIED TO THE DETERMINATION OF AREA MEDIAN INCOME FOR BEEF CALLEIGH AND THAT WILL OBVIOUSLY CHANGE YEARLY AND IT'S BUILT INTO THE AGREEMENT
[00:10:03]
TO BE ADJUSTED AS THE ATTEMPTED TO ANTICIPATE A DATE OF PURCHASE.SO JUST BECAUSE YOU QUALIFY IN 2020 DOESN'T NECESSARILY MEAN WHEN THE UNITS ARE UP FOR SALE
ON 20, 23 OR 20 24 AND YOU MAY QUALIFY. >> DO WE HAVE ANY IDEA WHEN I KNOW WE LOOK GET SOME BOTTLENECKS? ANY IDEA WHEN WE COULD BREAK GROUND? ARE WE JUST TOO FAR AWAY FROM THAT? WE HAVE A GENERAL IDEA AND THE GENERAL IDEA IS IT IS SORT OF WHAT'S BEING HAMMERED OUT THE WAY AGAIN THIS AGREEMENT IS STRUCTURED IS THAT THERE ARE DEADLINES FOR THE DEVELOPER TO DELIVER CERTAIN MATERIALS. THIS FIRST PHASE IS GOING TO BE A LOT OF THE SOFT COST ASSOCIATED ACTIONS LIKE GETTING THE GETTING EVERYTHING DESIGNED AND PERMITTED AND MAKING SURE THAT THE TOWN SOUNDS OFF ON THE ARCHITECTURAL RENDERINGS. WHAT'S GOING TO HAPPEN? THE INTERIOR IS GOING TO BE DONE AND THE SITE PLAN ONCE THEY HAVE THAT THEY'LL NEED TO GET THEIR FINANCING IN ORDER AND WE HAVE THAT SCHEDULE FOR ANYWHERE FROM THAT PERIOD FROM 90 TO 180 DAYS. ONE OF THE THINGS WE WANT TO MAKE SURE THAT WE DO IS GIVE ENOUGH TIME SO THAT THE DEVELOPER DOESN'T HAVE TO COME BACK TO TOWN COUNCIL REPEATEDLY TO REQUEST EXTENSIONS OF THAT DEADLINE BUT ALSO BE REASONABLE AND NOT GIVE AN ENTIRE YEAR TO GET STUFF DONE THAT CAN BE DONE IN SIX TO NINE MONTHS. SO THERE WAS THAT'S PART OF WHAT'S BEING BEING WORKED ON AND WE'RE QUITE FRANKLY BECAUSE WE'RE NOT DEVELOPERS WE HAVE SINGLE PROPERTIES BUT NOT REALLY HAVE ANY RECENT WORK WITH TWO BUILDINGS APARTMENT PARK OR TOWNHOMES OR DEFERRING A LITTLE BIT TO THE DEVELOPER BUT WHAT THEY BELIEVE IS A REASONABLE TIMEFRAME. SO I WOULDN'T SAY WISHFUL THINKING WOULD BE AS EARLY AS
THE BEGINNING OF 2012 3. >> REALISTICALLY I WOULD THINK MAYBE MARCH.
>> OKAY. OKAY. IT JUST DEPENDS ON THE.
I THINK THE FINANCING IS THE BIG QUESTION. THE FINANCING IS WHAT MAY TAKE A LONG FOR THE DEVELOPER ROOTS . THANK YOU.
HER WHO IS STAPLES ORIGINAL QUESTION MAY HAVE GOT A LITTLE DISTORTED SHE SAID 16 AND BELOW
. IS THAT WHAT YOU ALSO SAID? >> LET ME CLARIFY MY NUMBERS
MAY COME OVER HERE TO WHERE I CAN ACTUALLY SEE THE AGREEMENT. >> I HAVE IT AS SO WE HAVE WE
HAVE THREE DIFFERENT CATEGORIES THAT WE DESIGNATED. >> THERE IS LOW INCOME, MODERATELY LOW INCOME AND MEDIAN. SO WHAT WE HAVE IS MEDIAN INCOME IS A HUNDRED PERCENT IS ESSENTIALLY 80 PERCENT TO 100 PERCENT OF THE AM I MODERATELY LOW INCOME IS THAT 60 TO 80 PERCENT AND THEN UNITS THAT ARE DESIGNATED FOR LOW INCOME INDIVIDUALS IS 60 PERCENT OR BELOW. SO IF YOU QUALIFY AS A IF YOU QUALIFY FOR THE 60 PERCENT OR BELOW THERE WILL BE A HANDFUL OF UNITS IN THERE.
BUT IT'S ALSO GOING TO BE THOSE QUALIFICATIONS ARE GOING TO BE DEPENDENT UPON OR MA'AM JUST TRY TO MAKE SURE THAT I SAY THIS CORRECTLY THE ABILITY TO ADEQUATELY SUPPLEMENT THAT INCOME TO BE ABLE TO GET A TO GET THAT LOW AND TO A LOT OF THE WAY ONE TIME WITH THESE WITH MY REQUIREMENTS IT'S EASY TO PUT THEM INTO INTO A FRAME WHEN YOU'RE DEALING WITH RENT, WHEN YOU'RE DEALING WITH THE ACTUAL PURCHASE OF PURCHASE OF SINGLE FAMILY HOMES, IT CAN SOMETIMES BE MORE COMPLICATED BECAUSE THE INCOME DIFFICULTIES THAT WE CAN HAVE WITH QUALIFY AND HOW IT'S GOING TO BE DETERMINED WITH THE AMOUNT OF THE DOWNPAYMENT AND I'M BEING A LITTLE BIT INTO A LITTLE INTO THE WEEDS HERE INTO THE DETAILS BUT THE IDEA IS TO OFFER CERTAIN UNITS AND MAKE SURE THAT THEY'RE RESTRICTED FOR PEOPLE WHO ARE 60 PERCENT OR UNDER A.M. WE HAVE THAT WE'RE MEETING THAT OBVIOUSLY HUGE DEMAND AND ARGUMENT.
>> HILDA GIVEN IS THAT TO UNDERSTANDING THAT WE'RE DOING 60 AND BELOW TO MAKE THIS.
[00:15:04]
>> YES. I MEAN I'M OKAY WITH THAT BUT THAT'S NEWS TO ME.
I JUST THOUGHT WE WERE DOING 60 AND BOAT OVER THE 60 BELOW. SO WHAT? HOW MUCH IS BELOW? I'D HAVE TO REFER TO A LEAD PROJECT TEAMS WOULD LOOK AT RICH. LOOKS LIKE HE'S GOING TO LOOK FOR A NUMBER.
EACH OF THE PROJECT TAKES BECAUSE I KNOW EACH OF THE PROJECTS HAD DIFFERENT MIXES THAT WE TALKED ABOUT IN THE PAST. IT'S BEEN A LONG TIME IN THE
PAST BUT I KNOW EACH PROJECT WAS DIFFERENT. >> I DON'T KNOW RICHARDSON IF YOU HAVE THAT HANDY I DO SO FOR TWO NINETY FIVE MAY RIBAUT AND IT'S GONNA BE TWELVE SINGLE FAMILY RESIDENTIAL DWELLING UNITS AND ALL UNITS ARE GONNA BE CONSTRUCTED FOR SINGLE FAMILY HOME OWNERSHIP THERE SHOULD BE SIX IN THE END IS GONNA BE TWO BEDROOM DWELLING
UNITS AND SIX OF THEM WILL BE THREE BEDROOM. >> IT IS ANTICIPATED IT'S GONNA BE MIXED VELMA WITH FOUR DESIGNATED FOR THAT MODERATELY LOW INCOME WHICH IS THE ONE HUNDRED PERCENT TO 80 PERCENT FOR ARE FOR LOW INCOME UNITS WHICH WOULD BE THE 60 TO 80 AND FOR ME I MISSPOKE 4 FOR ME THAT INCOME UNITS WHICH ARE 80 TO 100 FOR 4 MODERATELY LOW WHICH ARE 80 TO 60 AND 4 FOR LOW INCOME WHICH ARE 60 IN LOW AGAIN THIS IS DO YOU COULD DEFINE HOW WHAT IS BELOW 60 NEEDED AND STILL NEED A VISUAL WHAT SIX MILLION LOW COULD BE EVERYWHERE. SO WHAT IS SO GOOD IS BELOW CHARLOTTE I DON'T KNOW IF YOU
HAD THAT THAT THAT MATRIX HANDY. >> THE DIFFICULTY EMI WHAT IS A HIGH I'M ONE TO WHILE LOOKING I'M GOING TO SAY I MY MEMORY WHICH IS FAVORABLE I AGREE WITH THREE AND I REMEMBERED ORIGINALLY THE 60 80 100 RANGES AND I'M IN I DON'T HAVE A PROBLEM GOING BELOW 60 PERSONALLY BUT WHEN YOU GET INTO THE AFFORDABILITY FACTOR YOU IF YOU GO TO LOW YOU ACTUALLY CAN'T AFFORD THE HOUSE TO BEGIN WITH.
>> I'M. >> THIS IS JOHN. I'M A LITTLE CONFUSED HERE.
HOW IS THE PRICING AFFECTED? I UNDERSTAND QUALIFICATION OF BUYERS.
YOU'VE GOT ONE GROUP OF PEOPLE THAT CAN QUALIFY UNDER 60 AND THE OTHER GROUP YOU KNOW, ABOUT 100 OR MORE. BUT HOW DOES THE PRICING FIT INTO THAT?
IS IT ALL OF THE SAME PRICING OR. >> I MEAN WHAT'S THE ROLE? THAT TO ME AFFORDABLE IS IS THE PRICE OF THE UNIT NOT THE BANK .
THE BUYER EUROPE YOU'RE RIGHT. >> AND THE WAY THAT IT TYPICALLY WORKS AND AGAIN IT'S IT'S EASIEST TO CONSIDER THIS IN THE CONTEXT OF RENTALS BUT THEN I'LL I'LL DISCUSS IT IN THE CONTEXT I UNDERSTAND WHY DON'T WE TYPICALLY DEFINE AFFORDABLE ROUND? IS THAT A MONTHLY RENT INCLUSIVE OF A REASONABLE UTILITY ALLOWANCE WHICH WOULD BE YOUR ELECTRIC UTILITIES, YOUR WATER UTILITIES? THERE'S THAT'S USUALLY SET BY YOUR LOCAL HOUSING AUTHORITY. SO BEFORE HOUSING AUTHORITY WILL SET A UTILITY ALLOWANCE UNDER NINETY TWO DOLLARS SO YOUR MONTHLY RENT PLUS YOUR REASONABLE YOU TWO UTILITY ALLOWANCE CAN NOT EXCEED IF PURSE FOR A LOT OF THOSE LOW COMING IN IT'S THE LESSER OF ONE TWELFTH OF 30 PERCENT 60 PERCENT OF THE AREA MEDIAN INCOME.
SO ESSENTIALLY YOU TAKE THE AREA MEDIAN INCOME 60 PERCENT OF THAT YOU DIVIDE IT BY 12 SO YOU HAVE ESSENTIALLY YOUR MONTHLY AREA MEDIAN INCOME 60 PERCENT AND YOUR HOUSING COSTS CANNOT EXCEED THAT 30 PERCENT FIGURE. SO NO MORE THAN 30 PERCENT OF YOUR INCOME GO TO THE HOUSING COSTS. THAT'S HOW THEY DO QUALIFIED.
WELL, IT IS A COMPLEX MATRIX THAT THAT HUD HAS DEVELOPED FOR WHAT IT IS.
WHAT'S A FAIR COST WHEN YOU'RE DEALING WITH SINGLE FAMILY HOME OWNERSHIP? IT'S A LITTLE BIT DIFFERENT BECAUSE THE WAY THAT STRUCTURE IS GOING TO BE DEPENDENT UPON THE ABILITY AND YOUR ABILITY TO PUT DOWN WHAT AS A DOWN PAYMENT BECAUSE YOU'RE HERE IN YOUR MONTHLY COSTS CAN'T REALLY BE DETERMINED ON THE FRONT OTHER THAN WHAT IS YOUR MORTGAGE
[00:20:04]
GONNA BE? WHAT'S ANY OF YOUR HOMEOWNERS ASSOCIATION FEES? WHAT ARE YOUR UTILITY COSTS AND INSURANCE COSTS AND THAT SHOULD NOT EXCEED MORE THAN 30 PERCENT OF YOUR YOUR MONTHLY INCOME. AND THAT'S CONSIDERED A YOU KNOW, A FAIR STANDARD RECENTLY . AND LET ME SEE IF I CAN FIND THAT AS IT IS NOT.AND IT IS NOT AS PART OF THIS. BUT I REVIEWED IT AS IT MAKES SEPARATE CONTEXT.
>> IF I COULD REDUCE AND I DON'T KNOW IF THIS IS WHAT YOU'RE LOOKING FOR IT WOULD BE HELPFUL. BUT STAFF HAS PULLED TOGETHER BECAUSE THEY HAVE THE HOUSING AFFORDABILITY MATRIX SAYS BECAUSE YES. PRICING IT IT'S ALWAYS FLUCTUATE BASED ON THE THE FAMILY THE FAMILY SIZE AND THINGS LIKE THAT.
BUT THE FAIR MARKET RENT THAT TAKES IT TO ACCOUNT, YOU KNOW, YOUR UTILITIES NUMBER BUT ALL THAT GOOD STUFF THAT MAKES IT VERY COMPLICATED LIKE RICHARDSON SAID AND I DO HAVE
AND I WILL ADMIT I'M NOT SAVVY ENOUGH WITH THEM. >> MICROSOFT SEEMS TO KNOW IF I CAN EVEN SHARE THIS SINCE I'M NOT THE ORGANIZER BUT I DON'T KNOW IF THIS IS WHAT YOU WERE LOOKING FOR. RICHARDSON BUT SO FOR EXAMPLE, THE BEAUFORT COUNTY HUD FAIR MARKET RENT AND THEY HAVE WE ALSO HAVE ONE FOR HOME OWNERSHIP TO KIND OF GIVES A GUIDE FOR EXAMPLE FOR A THREE BEDROOM FAIR MARKET RENT WHICH IS THE UTILITY ALLOWANCE PLUS BASE FAIR MARKET RENT WOULD BE SIXTEEN HUNDRED DOLLARS AND EIGHTEEN SIXTEEN ONE THOUSAND SIX HUNDRED EIGHTY DOLLARS UTILITY ALLOWANCES TWO HUNDRED SIXTY EIGHT DOLLARS THAT FAIR MARKET RENT WITHOUT UTILITIES IS THIRTEEN FIFTY. SO THERE'S THERE IS A MATRIX THERE AND WE'VE ALSO TRIED TO CALCULATE IT WITH USING THE LIKES OF THE HOUSING AFFORDABILITY AS WELL AND LOOKS LIKE MAYBE KEVIN'S TRYING TO PULL THAT UP SO I DON'T KNOW IF THAT THAT HELPS ANSWER SOME OF THE QUESTIONS CONCERNING WHAT THOSE COSTS WOULD BE.
>> HE'S A AGAIN IF I CAN IF I CAN JUMP IN HERE. HERE'S SOME HERE'S AN ANALYSIS THAT WE'VE DONE KIND OF SOMEWHAT RECENTLY IN ANOTHER CONTEXT AS TO WHAT IS AN AFFORDABLE HOME PURCHASE PRICE AND B FOR TELL ME. AND SO A LOT OF THESE NUMBERS ARE THEN PROBABLY CHANGED SINCE THEN. BUT YOU'RE LOOKING AT A MEDIAN HOME PURCHASE PRICE IN THIS AREA ROUGHLY THREE HUNDRED AND SEVENTY FIVE THOUSAND DOLLARS.
SO IF YOU TAKE THAT THREE HUNDRED SEVENTY FIVE THOUSAND DOLLARS, THE AMOUNT OF AND YOU LOOK AT THE WHAT THE AVERAGE INTEREST RATES ARE, WHAT THE MONTHLY AND WHAT YOUR MONTHLY INTEREST RATE WOULD BE. YOU LOOK AT YOUR LOAN LENGTH 30 YEARS AND DRAINED AND 16 MONTHS WHAT'S YOUR REASONABLE LOAN AMOUNTS GOING TO BE WHETHER THAT'S GOING TO BE A 20 PERCENT DOWN PAYMENT OR I'M MORE LIKELY THREE POINT FIVE SO THAT YOU CAN QUALIFY AS A FIRST TIME HOMEOWNER UNDER UNDER SOME OF THOSE HUD PROGRAMS AND THEN YOUR ADDITIONAL MONTHLY PAYMENTS WHICH INCLUDE PROPERTY TAX COUNTY PROPERTY TOWN PROPERTY TAX SCHOOL DISTRICT PROPERTY TAX FIRE DISTRICT SOLID WASTE FEES, YOUR STANDARD UTILITIES OTHER UTILITIES AND HOMEOWNER'S INSURANCE. SO WHAT WE HAVE DONE IS YOU TRY TO CALCULATE WHAT A REASONABLE MONTHLY PAYMENT IS. SO PEOPLE AT 300 75 IF YOU ABOUT 370000 ALL THE SAME PUT DOWN 20 PERCENT YOU'RE GOING TO HAVE A LOAN AMOUNT OF ABOUT THREE HUNDRED THOUSAND WITH A THREE POINT TWO INTEREST RATE WHICH PROBABLY A LITTLE BIT LOW RIGHT NOW YOU'RE LOOKING AT A MONTHLY PAYMENT OF 13. IF YOU TAKE THAT INTO CONSIDERATION AND THEN ADD YOUR AT YOUR ADDITIONAL MONTHLY HOUSING COSTS WHICH INCLUDE THOSE PROPERTY TAXES, UTILITIES, HOMEOWNERS ASSURANCE YOUR MONTHLY PAYMENT JUMPS FOR THAT 13 OF 1 TO 18 FIFTY SEVEN . WELL WE THEN TRY TO DETERMINE IS WHAT IS THAT MONTHLY COST? WHAT SORT OF PERCENTAGE IS THAT COMPARED TO THE AREA OF MEDIAN INCOME FOR THAT PERCENTAGE LEVEL? SO WE WORKED OFF ONE HUNDRED PERCENT AND JUST USING AREA MEDIAN HOUSE PRICE VERSUS ONE HUNDRED PERCENT. AM I YOU'RE LOOKING AT THE COST BURDEN AND PERCENTAGE OF HONESTLY ANYWHERE FROM THIRTY FOUR PERCENT TO UP TO 40 PERCENT IN WAS YOU TO BE AT THAT 30 PERCENT FIGURE. SO THE IDEA HOW WE WOULD WORK THIS IN THE CONTEXT AFFORDABLE HOUSING DEVELOPMENT IS WE'RE NOT GOING TO BE SELLING THE MEDIAN HOME PRICE. THE DEVELOPER WHEN THEY GET THEY'RE GOING TO HAVE TO FIGURE OUT A HOME PRICE THAT WILL ALLOW A QUALIFIED INDIVIDUAL TO PURCHASE AND MEET THOSE 30 PERCENT THRESHOLDS. SO YOU ESSENTIALLY WORK IN REVERSE ORDER.
YOU KNOW WHAT YOUR PERCENTAGE IS GOING YOU KNOW WHAT YOU'RE 60 PERCENT AREA MEDIAN INCOME IS AND WHAT YOU'RE AT WITH YOUR MONTHLY INCOME WILL BE. HOW DO YOU GET TO 30 PERCENT WHEN YOU INCORPORATE ALL OF THOSE FEES AND COST AND SO YOUR PURCHASE PRICE IS RIGHT IS
[00:25:03]
LIKELY GOING TO DROP FROM THREE HUNDRED SEVENTY FIVE THOUSAND TO LET'S SAY A HUNDRED ANDFIFTY FIVE THOUSAND FOUR HUNDRED AND SIXTY THOUSAND. >> AND SO THE TOWN SUBSIDY PROVIDING THE LAND PROVIDING A I CAN'T REMEMBER THE EXACT FIGURE SUBSTANTIAL 6
SUBSTANTIAL SUMS TO OFFSET SOME OF THE DEVELOPER COSTS. >> THE IDEA IS THAT THE DEVELOPER IS GOING TO BE ABLE TO REDUCE THOSE HOUSING PRICES TO A TO MAKE THEM MARKETABLE TO
PEOPLE THAT MEET THE 60 PERCENT MY REQUIREMENT. >> BUT IF I UNDERSTAND CORRECTLY THE DEVELOPER IS STILL WALKING WITH THREE SEVENTY FIVE BECAUSE OF THE
SUBSIDIES THE PRICES AVAILABLE TO A LOW INCOME PERSON. >> NO CERTAIN THE SUBSIDIES ARE ON THE FRONT END OFFSETTING SOME OF THE COSTS ASSOCIATED WITH ENGINEERING WORK AND THE ARCHITECTURAL RENDERINGS AND THE WAY THAT THIS AGREEMENT IS STRUCTURED IS WE'RE PUTTING A TOWNS PUTTING UP SAID EXCUSE ME THE TOWN IS PUTTING UP THE MONEY ON THE FRONT END TO PREPARE ALL THE DESIGN DOCUMENTS THE SIDE PLAN TO ENGINEER WORK THE ARCHITECTURAL WORK AND THEN IS GOING TO DEED THE PROPERTY OVER WITHOUT ANY SORT OF MONEY COMING BACK TO IT TO THE DEVELOPER ONCE ALL THOSE DOCUMENTS ARE SIGNED OFF AND ALL THOSE DOCUMENTS IS ESSENTIALLY THE COLLATERAL SO THAT THE DEVELOPER DOESN'T GO THROUGH, WE'RE GOING TO HAVE THE RIGHT TO GET THE LAND BACK BUT ALSO HAD THE RIGHT TO ALL OF THOSE DOCUMENTS THAT WE PAY FOR SO THAT IF THIS DEAL FOR SOME REASON IT JUST DOES NOT BECAUSE IT BECOMES FINANCIALLY ATTRACTIVE IMPRACTICAL FOR THE DEVELOPER TO MOVE FORWARD. THE TOWN ISN'T STARTING OVER FROM SQUARE ONE WE'VE GOT THE SITE PLAN. WE'VE GOT THE ARCHITECTURAL RENDERINGS, WE'VE GOT A LOT OF THE INFORMATION WE NEED TO BE ABLE TO PUSH THIS PROJECT THROUGH WITH MAYBE ANOTHER. THAT'S NOT THE HOPE BUT THAT'S THE THAT'S THE WAY WE'VE STRUCTURED IT. SO THE DEVELOPER WE'RE HOPING TO DO IS LOWER THE COSTS THAT ARE BEING PUT OUT BY THE DEVELOPER TO DEVELOP THIS PROJECT SUFFICIENTLY THAT THEY CAN SELL THESE UNITS AT THESE AT THESE LOWER COSTS THAN THEY WOULD OTHERWISE BE ABLE TO SELL. YOU KNOW, A MARKET BREAKING MAY .
LET ME SAY SOMETHING I GUESS ANOTHER WAY TO ANSWER, JOHN, IF I UNDERSTAND CORRECTLY IS YOU TAKE THE THREE HUNDRED THOUSAND DOLLAR HOME IN TOWNS WOULD BE ACTUALLY PUTTING ONE HUNDRED FIFTY THOUSAND AND YOU'RE TRYING TO GET DOWN TWO HUNDRED FIFTY THOUSAND.
IS THAT A FAIR WAY OF LOOKING AT IT? >> YES, IT IS.
I MEAN IT'S JUST YOU'RE YOU'RE TAKING OFF THE DEVELOPER INSTEAD OF GIVING THE DEVELOPER A SUBSIDY AT SALE. WHAT YOU'RE DOING IS OFFSETTING THE DEVELOPERS COST ON FRONT.
AND THE OTHER THING ABOUT THE AND I KNEW THE AVERAGE MEDIAN HOME BEFORE COUNTING WAS 375.
BUT THAT BEING SAID, THE SQUARE FOOTAGE OF THAT SIZE HAVE VERSUS THE SQUARE FOOTAGE OF THE HOUSES THAT WE'LL BE BUILDING OR NOT THE SAME. ABSOLUTELY.
ABSOLUTELY. AND THAT MEANS THAT MEANS THE THREE SEVENTY FIVE THOUSAND AVERAGE MEDIAN HOUSE FOR BEAUFORT COUNTY IS NOT EXACTLY WHAT WE'RE MATCHING TO WHAT
WE'RE TRYING TO DO. >> WE MAY BE ACTUALLY BUILDING TWO HUNDRED FIFTY THOUSAND OUR HOUSE BASED ON SQUARE FOOTAGE CORRECT? ABSOLUTELY.
>> BUT WE STILL WE STILL AT A IS THE CROSSROAD BECAUSE WE HAVE HEARD FROM THE DEVELOPER AND WE THE MEETING I AM SORRY COUNCILMAN HAMILTON, I'VE GOT SPOTTY, SPOTTY SERVICE APPARENTLY EVERYBODY MY COMPUTERS I THOUGHT ABOUT YOU HIT PAUSE AND I INTERRUPTED YOU
. >> I WAS JUST GONNA SAY THAT WAS THIS THE IS SAYING YOU STILL DON'T HAVE ENOUGH INFORMATION FOR US TO BASED ON WHAT WE GET WHEN WE SIGNED A CONTRACT EVEN TO HAVE A DEVELOPER GIVE US ON WHAT PRODUCT THEY'RE GONNA BUILD IN SQUARE FOOTAGE AND TO USE WHATEVER BUT WE STILL GET CLOSE ENOUGH TO NUMBERS UNTIL
[00:30:04]
DEVELOPERS GIVE US MORE INFORMATION AND. >> ARE YOU GOING TO BE IN A
MEETING TODAY TO BLOCK? >> I WAS NOT I WAS NOT PLANNING ON BEING IN THAT MEETING.
I THINK I THINK IT WAS STEVE AND MY UNDERSTANDING IT WAS JUST STEVEN AND GENTLEMEN FROM STATE OF MIND MR. GROSSMAN. BUT I DIDN'T HAVE I WAS NOT PLANNING ON BEING IN ANY CITY THOUGH YOU IN THE MEETING NOW, SIR, IS JUST AS STEVEN AND THEN I'M OUT.
>> I WOULD I WOULD I WOULD LEAVE THIS TO STEVEN THAT YOU COULD BE PRESENT AT THE MEETING. WE NEED WE NEED SOME NEED SOME MORE CONVINCING, IF YOU WILL,
IN THEIR MEETING. >> WELL, I'LL HEATHER IF YOU WILL TALK TO STEVEN, I'VE GOT TO RUN AS SOON AS I GET THROUGH HERE DON'T PAD AND THEN I'VE GOT A TWELVE THIRTY CALL I WOULD SAY IF YOU CAN GET STEVE IN AND MENTIONED THAT AND THEN I'LL MAKE IT A POINT TO TRY TO BE THERE I WILL SAY I AM DISAPPOINTED PROGRESS I MEAN I THINK RICHARDSON WHAT I JUST HEARD LEAVE YOUR LIPS. YOU HAVE OBVIOUSLY DISSECT THIS THING INTO A SCIENCE THE NUTS AND BOLTS NUMBERS AND EVERYTHING YOU OBVIOUSLY WELL EDUCATED ON WHAT WE'RE TRYING TO DO HERE BUT I'M DEFINITELY DISAPPOINTED BY THE PROGRESS. I MEAN YOU KNOW, A YEAR AGO PRICES OF INVENTORY WENT THROUGH THE ROOF WHICH I UNDERSTOOD BUT MORTGAGE RATES WERE LOW. WELL NOW PRICES DROPPING BUT MORTGAGE RATES ARE RISING.
SO IT'S KIND OF LIKE A CATCH 22 HERE AT SOME POINT THEY'VE GOT THEY'VE GOT TO PULL THE TRIGGER AND CALCIUM DOESN'T LIKE CAN IF I CAN JUST QUICKLY JUST TO PROVIDE A LITTLE BIT AS YOU ALL
SOLD TODAY, IT REALLY IS A THIS IS A COMPLICATED AGREEMENT. >> THERE'S OBVIOUSLY GOING TO BE RISKS FOR THE TOWN BEING THE YOU KNOW, PUTTING UP THE MONEY FRONT IS TRYING TO MINIMIZE AND MITIGATE THAT RISK AND FROM THE DEVELOPER STANDPOINT THEY IT'S GONNA BE DIFFICULT FOR THE DEVELOPER TO MAKE SURE THE SCHEDULE WORKS THE BUDGET WORKS WHEN WE HAVE INTEREST RATES THAT SEEM TO BE GOING ALL OVER THE PLACE AND ALSO THE THE COST I DO THINK IT'S SIMPLE THAT THEY HAVE BEEN VERY EASY TO PUT TOGETHER A FORM IMO YOU THAT DIDN'T GO INTO AS MUCH DETAIL BUT I THINK THE LIKELY SCENARIO WOULD HAVE BEEN HAVING TO COME BACK TO REVISE, REVISE, REVISE AND REVISED. WHAT WE'RE HOPING TO PUT TOGETHER HERE IS A FRAMEWORK THAT CAN BE REPLICATED EASILY THAT EVERYBODY KNOWS THEIR PROCESS THEREBY KNOWS THE STAMPS NOW KNOWS WHO IS RESPONSIBLE FOR WHAT ACTION AND I AM ALSO DISAPPOINTED WITH THE THE PACE OF IT. I WOULD LOVE NOTHING MORE THAN TO HAVE THIS AGREEMENT SIGNED AND JUST MOVING FORWARD ON THIS CONSTRUCTION. BUT I I THINK THIS IS ONE OF THE FIRST WAYS THAT I CAN TELL ONE OF THE FIRST TRUE PUBLIC PRIVATE PARTNERSHIPS FOR AFFORDABLE HOUSING AND BE FOR COUNTY AND THE WAY THAT IT'S BEING DESIGNED.
I KNOW THAT WE'VE HAD WE'VE HAD INTEREST FROM OTHER JURISDICTIONS AROUND HERE AND WANTING TO DO SIMILAR THINGS. I'M LOOKING FOR COPIES OF THIS AGREEMENT TO BE ABLE TO MAKE SURE THAT THEY CAN REPLICATE AND DO IT ON THEIR OWN. SO AGAIN, I CAN'T I CAN'T DISCOUNT THE CONCERNS WITH THE TIMING THE DOES AND THEN BEING THAT THEY'RE MOVING TO DEAL WITH HEALTH BECAUSE THERE ARE SOME OTHER SUPPORT THAT WE CAN GET FROM VENDORS OF THE HOUSING TRUST TRUST FUND IS BEING DEVELOPED BUT YOU TAMAR LOOK AT THAT AS FIRST COME FIRST SERVE IN THAT I THINK WE NEED TO BE IN A PLACE WHERE WE COULD BE FIRST IN LINE AND MAYBE THEN YOU CAN HELP TRANSLATE THAT TO THE DEVELOPER BEING MY MIND MIGHT HELP US A LITTLE BIT AS FAR AS NEGOTIATION GOES, THIS IS JOHN AGAIN A YEAR AGO MAYBE IT WAS TWO YEARS AGO WE WERE TALKING ABOUT THREE PROPERTIES AND THE BIG ONE WAS OVER BY THE HARGRAVE SIDE.
>> ARE THOSE COMPLETELY OFF THE TABLE UNTIL WE GET FIGURE OUT HOW MAY RIVER OUT AND CAN GET
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DONE? >> COUNTY COUNCIL MADE A DECISION THAT WE WANTED TO I GUESS FEEL OUR AWARENESS IS PROBABLY GOOD WOULD YOU SAY TO MAKE SURE THAT WE GET A GOOD RELATIONSHIP ON ONE PROJECT FIRST AND IN THIS BEING PROBABLY THE EASIEST ONE TO CONSTRUCT WE DECIDED THAT THIS WOULD BE A ONE DAY WE'LL SAY OKAY THIS REALLY WORKING ON THAT. SO BUT NO THE OTHERS ARE NOT OFF THE TABLE.
IT JUST THAT IT'S BEEN IS IT'S BEEN IT'S BEEN DIFFICULT JUST AS YOU CAN SEE THE PROCESS PROGRESS. SO NOW WE WE JUST TRYING TO MAKE SURE WE WE HAVE THE RIGHT FIT IN EVERY ANGLE SO THIS BE A GOOD PROJECT TO MEASURE BY EVERYONE UNDERSTAND THAT IT'S IN YOU HAVE ANYTHING ELSE IN NOT UNLESS YOU WANT ME TO ANSWER ANYTHING ABOUT THOSE THREE PROPERTIES BUT IT WAS ORIGINALLY THAT WAS THE STRUCTURE OF THE AGREEMENT.
>> IT WAS EVERYTHING WAS TIED TOGETHER AND AS CIRCUMSTANCES CHANGE AND AS WE CAN AND DOES GET TO THE AGREEMENT TOWN COUNCIL WITH DISCUSSING IT WITH TERRY WITH WITH MYSELF OR WITH STEVE AND THEN HEATHER AND ALL THE ENTIRE TEAM I WROTE DOWN JUST IT MADE IT MADE MORE SENSE TO TRY TO REDUCE THE COMPLEXITY AND KEEP THOSE OTHER TWO PROPERTIES SO THAT WE CAN MOVE FORWARD WITH STATE OF MY PARTNERS IF THIS WORKS ON TO NINETY FIVE OR IF WE DECIDE WE WANT TO GO IN A DIFFERENT DIRECTION WITH THOSE WE'LL HAVE THAT FLEXIBILITY THE THAT AND THAT'S IT FOR ME I CAN I CAN CERTAINLY SIGN OFF IF YOU WOULD LIKE AND I DON'T KNOW IF YOU'LL HAVE MORE ON YOUR AGENDA HERE TODAY BUT IF THERE ARE ANY OTHER QUESTIONS I'LL BE HAPPY TO ANSWER ON ANY OF THE QUESTIONS FOR WHICH ZANE IS YOU GO THROUGH HIS DEGREE WE BOTH THE RIBAUT THE END OF THIS JOURNEY ANY OTHER QUESTION FORWARDS AND NO I DON'T HAVE
ANY HERE THE. >> KEVIN , DO YOU GUYS HAVE ANYTHING YOU WANT TO SHARE? I KNOW. GOOD. THANK YOU.
I WOULD BE OPTIMISTIC AND SAID DAN AND STEPHEN WILL BRING US A SIGNED CONTRACT INTO THE NOW I . THANKS EVERYONE. WELL, GOOD MEETING IN HOPEFULLY
BASEBALL WILL AND WE HAVE A BETTER REPORT NEXT MONTH. >> THANK YOU.
ALL RIGHT. HERE ABIDE BY
* This transcript was compiled from uncorrected Closed Captioning.