I_ECR_AH_2021A 09/21/2021 09:06:33 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE AFFORDABLE HOUSING TRANSFORMATIONAL TASK FORCE Date 09/21/2021 Attendance Bridges E Rick Garcia X Alison George X Hisey X Pico X Roberts X Kristin Toombs X Will Toor X Chantal Unfug X Cris White X Woodrow X Woodward X Woog X Zenzinger E Gonzales X Jackson X Time 09:06:33 AM to 02:59:18 PM Place Old Supreme Court This Meeting was called to order by Jackson This Report was prepared by April Bernard Hearing Items Action Taken hWelcome and Purpose Committee Discussion Only hOverview of Subpanel Work Committee Discussion Only hAffordable Housing Needs and Gaps Committee Discussion Only hSustainable and Safe Housing Committee Discussion Only hStrategic Topics Committee Discussion Only hNext Steps Committee Discussion Only Welcome and Purpose - Committee Discussion Only 09:07:18 AM Representative Jackson made opening remarks. 09:07:48 AM Representative Jackson outlined the agenda. 09:09:51 AM Representative Jackson talked about an upcoming survey for public feedback. Overview of Subpanel Work - Committee Discussion Only Attachment Tag File Name http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/F4120918CEC1...$File/subpanel_letter_to_ah_transformational_tfAttachmentA.pdf?OpenElement subpanel_letter_to_ah_transformational_tfAttachmentA.pdf 09:12:29 AM Brian Rossbert and Cathy Alderman, representing the Subpanel of the Affordable Housing Transformational Task Force, talked about their work. Ms. Alderman introduced the subpanel members. A presentation was provided (Attachment A). 09:17:03 AM Mr. Rossbert talked about the pillars or areas of focus established by the subpanel. 09:19:45 AM Ms. Alderman discussed four big questions that the task force will need to answer. 09:20:13 AM The task force discussed requirements related to federal funds and COVID-19. 09:21:54 AM Ms. Alderman provided a definition of affordable housing. 09:24:50 AM The task force discussed gaps in affordable housing, including supply, funding, infrastructure, tenancy support, and systems and administrative agencies. 09:28:24 AM Ms. Alderman talked about groups disproportionately impacted by the COVID-19 pandemic. She suggested that when considering programs the task force may need information about the impact of programs, including economic impact, since funding may not address every impact. 09:30:34 AM The task force discussed the American Rescue Plan Act regulations surrounding various populations, including those with a lower income, people of color, and tribal communities. Other communities may be eligible, as long as impacts to the community are specific and known. 09:31:38 AM Ms. Alderman talked about the information that the subpanel needs: how the Behavioral Health Task Force is proceeding and how funds may be leveraged between the two task forces; the Low Income Housing Tax Credit (LIHTC), including state and federal guidelines; and county and local housing needs, including best practices, models, and other information. A member suggested that LIHTC information may be available through CHFA. 09:33:43 AM The task force discussed easing state requirements and accessing resources; and other information needs, including homeownership gaps and how to fill those gaps, and the unique needs of communities. 09:35:22 AM Ms. Alderman will provide a list of subpanel information needs to the task force. 09:35:50 AM The task force discussed the use of 30 percent of area median income (AMI) as a standard to identify families cost burdened by housing. The discussion included the elements of housing costs, incluing utilities and mortgage or rent. Several members talkeda about hom the AMI is used to access subsidies and vouchers, and other federal assistance programs. Subpanel members indicated this measure is used to determine if families can continue to pay for other costs, such as food. 09:39:29 AM Task force members discussed a comparison between median income and AMI and cross referencing these measurements to communities. Subpanel members expressed an interest in exploring this subject. 09:41:31 AM Choices by individuals related to employment and housing were discussed by members. 09:43:31 AM Task force and supbanel members discussed the percentage of need for types of housing along the housing continuum. Members discussed information about the geographic concentration of need for housing. 09:48:53 AM Alison George, representing the Department of Local Affairs (DOLA), Division of Housing, indicated that her presentation will provide more information about AMI and local communities. 09:49:20 AM There was a discussion about the origin and history of AMI and housing costs. 09:50:44 AM There was a discussion about stabilizing existing affordable housing and the impact of short term rentals. Subpanel members indicated that they had no specific recommendations at this time. Some members expressed an interest in state guidelines for this issue. A task force member suggested that conversations should include a balance between rentals and ownership. Subpanel members indicated that they are discussing needs along the housing continuum and would benfit from additional information. The conversation turned to home ownership funding and policy issues. Task force members expressed an interest in investing in long term solutions, including home ownership and building generational wealth. The task force talked about land banks, including land trust representation on the subpanel. A member discussed placement of land in a trust as a possible federal fund expenditure. 09:55:30 AM The task force discussed a definition of land banking. 09:55:47 AM Task force members discussed homeownership and first-time buyers, including barriers to ownership such as supply, systems, program funding, and the availability of different types of homes. 09:57:43 AM The conversation turned to state and local guidelines related to affordable housing, especially the interplay between the levels, as well as zoning regulations. 09:59:38 AM Ms. Alderman indicated that the subpanel also needs information about the LIHTC and state and federal housing tax credits, including competitiveness and number of housing units built. 10:01:13 AM Cris White, respresenting the Colorado Housing and Finance Authority (CHFA), shared that the LIHTC is over subscribed and the number of units built varies. CHFA will provide this information to the subpanel. 10:01:48 AM Task force members asked if there were points of debate for the subpanel. Ms. Alderman responded that there has been some debate about the responsibility of the market to provide affordable housing. She mentioned that there has also been some discussion about where to use limited government funding to fix issues, for example in the areas of programming or supply. 10:03:56 AM The task force discussed weighting the priority of each proposed solution and measuring success. 10:05:59 AM The committee took a break. Affordable Housing Needs and Gaps - Committee Discussion Only Attachment Tag File Name http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/6565A5EAD7AC...$File/doh_ahttf_presentationAttachmentB.pdf?OpenElement doh_ahttf_presentationAttachmentB.pdf 10:08:04 AM The committee came back to order. 10:23:03 AM Krisin Toombs, Andrew Paredes, and Connor Everson, representing DOLA Division of Housing, provided a presentation about affordable housing needs and gaps (Attachment B). Kristin Toombs, Director Office of Homeless Initiatives, discussed the main cause of homelessness. Ms. Tooms stated the vision for the office is for all Coloradans to have a safe and stable place to live. She said that homelessness should be brief and rare, and no one should be left behind. Ms. Toombs discussed recent trends for homelessness in Colorado and the country, such as a lack affordable housing, health challenges, and systemic inequities creating issues. She indicated that 40 percent of homeless individuals have a disabling condition and/or have behavioral health or medical needs. In addition, she shared that people of color, LGBTQ, and disabled individuals face system inequities. 10:28:21 AM Ms. Toombs indicated that there is a correlation between cost of housing and homelessness. There was a discussion about early indicators of homelessness, gathering data, and extrapolating data. Ms. Toombs shared that the number of people experiencing homelessness has doubled since the start of the pandemic, according to Point in Time studies from January 2021. She stated that people are coming to Denver to seek shelter. She explained the Yearly Point in Time studies which counts the number of people experiencing homelessness by contacting homelss individuals in the community throughout the course of one day. 10:35:30 AM Ms. Toombs presented that homelessness is dynamic with about 18 to 20 percent of individuals chronically homeless. She indicated that incoming homeless individuals typically replace outgoing homeless individuals. 10:36:25 AM Ms. Toombs talked about proven solutions to end homelessness and highlighted a successful program in Fremont County housing veterans. She stated that state, federal, and local resources made housing possible and shared that the community was aware of the need, pulled partners together, and did what was necessary. She suggested that this may not be happening throughout Colorado due do the complex needs of each community and limited resources. 10:38:50 AM Ms. Toombs discussed data related to homelessness. 10:40:08 AM Andrew Paredes, Director of Housing Finance and Sustainability at DOLA, provided information about federal and state stimulus funds available for housing. He stated that $500 million is available: $400 million for affordable housing through recommendations from the Affordable Housing Transformational Task Force; $98.5 million to DOLA Division of Housing through House Bill 21-1329; and $1.5 million for the Eviction Legal Defense Fund. Mr. Paredes indicated that additional funds include $305 million for Emergency Rental Assistance; $175 million to the Homeowner Assistance Fund; and $66 million for homeless families, those at risk for homelessness, or other vulnerable populations. 10:42:59 AM Mr. Paredes provided additional details about the $66 million related to homeless individuals. He indicated that $41 million will be distributed to local municipalities, while DOLA Division of Housing will use $25 million to create additional housing for those with the lowest incomes. 10:43:50 AM Mr. Paredes talked about Senate Bill 21-242. He indicated that $30 million will be used for housing units, rental assistance, and services to support families that are experiencing homelessness or are at risk of homelessness. Mr. Paredes mentioned that funds may be used for non profits or locals to acquire assets to repurpose for housing. He also talked about $15 million being provided directely to DOLA Division of Housing for direct support to those not able to access other assistance programs. Mr. Paredes mentioned that a notice of funds available was released September 3 for local goernments, nonprofits, and for profit developers to identify housing assets to purchase and put into service. He said that $50 million is available and that applicants may also apply for services or direct rental assistance. Mr. Paredes shared that applications are due October 15 and the 15th of each month thereafter. He stated that the division's goal is a 60 to 90 day turnaround for decisions on applications and indicated that the program will allow nonprofits and local governments to compete with market rate developers. 10:47:03 AM Mr. Paredes indicated that funds used to buy housing or provide permanent supportive housing will allow applicants to quickly acquire a property and take the next steps in developing the property, including seeking approvals for zoning, variance, and financing. He said that funds may be paid back within four years. If need be, he said that the asset may be used to provide another type of housing or may be sold to return the money to the fund. There was a discussion about work with local governments. Mr. Paredes suggest that funds may speed up the process and allow different approaches to affordable housing. 10:51:19 AM Mr. Paredes discussed House Bill 21-1271, including $12 million to incentivize local governments to review and rewrite land use code, including technical assistance. He stated that communities may also use funds to make proactive changes and apply for grants for new affordable housing or other community benefits, such as parks. 10:54:08 AM The task force continued to discuss funding for affordable housing. 10:57:00 AM There was a discussion about using funds effectively. DOLA representatives indicated that local communities received ARPA funds, however these funds may be used for other items besides housing. DOLA staff indicated that Division of Housing staff in various regions throughout the state are helping communities determine how to spend funds. Mr. Paredes indicated that project applications require information about supports for a project, both funding and communitywide. He went on to say that smaller communities may have less funding and more community support. 11:02:44 AM The task force discussed the amount of funds that must be used on COVID-19. The Divisision of Housing will look at federal regulations and get back with the task force. 11:05:35 AM There was a discussion about long term projects. 11:08:05 AM Mr. Paredes talked about a pipeline of projects and how development works and is long-term. He said that land is usually acquired five to six years prior to the build date, with existing properties acquired one to two years prior. Mr. Parades stated that as a general rule, assets are leveraged in many forms to build projects. He said that communities looking for properties or vacant land to fill a housing need could take three to four months to find a suitable build site and to buy the propert. He shared that once propoerty is purchased anvironmental and soil tests usually need to be done before a site may be considered suitable for a project. After testing, Mr. Paredes indicated that developers look at the number of units and the cost to create a financial portfolio to fund the project. He state that most developers apply for LIHTC, with applications for grants and other funding taking up to a year or two. 11:12:25 AM The task force discussed the report that will be created as a result of their work. The discussion included additional information needs, such as a backlog of development created by the pandemic and the development process. 11:14:11 AM Connor Everson, representing DOLA talked about affordable housing needs. He talked about a variety of needs, including more housing, sustainable houaing, and housing that is in good condition. Mr. Everson indicated that one third of Coloradans are housing cost burdened. He went on to discuss severely cost burdened households, those with only a few dollars left after paying for housing. He said that that group needs the most affordable housing. Mr. Everson stated that the majority of severly cost burdened households are in the workforce in low wage occupations, followed by those with a fixed income, such as sniors or disabled individuals. 11:19:43 AM Mr. Everson continued to talk about cost burdened households. He mentioned that the most vulnerable group are renters. 11:21:49 AM Mr. Everson talked about trends during the COVID-19 pandemic, including more impacts on lower income households, as well as younger households. He stated that racial and ethnic minorities are three times more likely to be behind on rent. 11:22:50 AM Mr. Everson talked about how affordable housing is an issue throughout the state. He stated that many households are renting beyone their income. He indicated that the number of apartments costing $600 or less has dropped by over half in the last 6 years. Task force members asked Mr. Everson for additional data on the cost of homes and rentals. 11:26:28 AM Mr. Everson stated stated that there has been an increase in housing for moderate, middle, and high income families between 2010 and 2019. However, he indicated that there was less housing for lower income families in the same time period. 11:27:51 AM There was a discussion about proven solutions related to homelessness. The task force discussed federal funds, which typically meet about 10 percent of the need, according to Ms. Toombs. 11:30:59 AM The task force discussed the rise in homeless in Denver. Ms. Toombs indicated that anecdotally, individuals are saying that Denver is the only place to go. Ms. Toombs will look for more data on this issue. The task force talked about a presentation from the State Demographer with regard to where folks are moving. 11:32:17 AM The task force discussed housing-related relief funding related to current AARPA funds. 11:34:37 AM There was a discussion about rental income post pandemic. Mr. Everson stated that rents are increasing. The task force discussed data trends and housing surveys. 11:37:11 AM Cris White, representing CHFA, stated that a statewide assessment will be completed in the near future. He indicated, though, that the survey and data will not be complete for use by the task force. 11:39:35 AM The task force discussed meeting both long term and urgent needs. The Division of Housing talked about their work on rental assistance and supporting communities in acquiring properties for long term and near future needs. DOLA staff stated that needs are often complex and require onging support, rather than just short term. 11:44:46 AM The task force talked about the need for mulitple efforts. 11:45:28 AM The committee took a lunch break. Sustainable and Safe Housing - Committee Discussion Only Attachment Tag File Name http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/DBB4B08BF4C9...$File/HousingClimateConnectionAttachmentC.pdf?OpenElement HousingClimateConnectionAttachmentC.pdf 12:24:49 PM The task force came back to order. 12:25:50 PM Will Toor, Director representing the Colorado Energy Office, provided a PowerPoint presentation (Attachment C) on sustainable and safe housing. He mentioned that buildings are one of the five emitters of pollution. Mr. Toor also stated that about 20 percent of Coloradans are cost burdened with regards to to paying utilites. 12:28:39 PM Mr. Toor talked about energy efficiency and cost. He talked about insulation, air sealing, and passive solar as good options to bring down cost. Mr. Toor went on to discuss clean electric heating and appliances, such as heat pumps for heating water and homes and renewables. He stated that efficiency, emerging technologies, and renewables could lead to energy cost savings and affect indoor air quality in a positive way. 12:31:05 PM Mr. Toor talked about the Basalt Vista Project, an example of an all electric community at net zero impact. He outlined the project of 27 homes in the Roaring Fork Valleey without gas line connections, that insteat rely on a combination of roof top solar and heat pumps. He shared that the total energy bill for these homes is $15 per month or less. 12:32:27 PM Mr. Toor discussed Josephine Commons, a mixed development with 70 senior units, 54 townhomes, 22 duplexes, and 7 single family homes that also use energy efficiently. 12:33:18 PM Mr. Toor talked about Alta Verde in Breckenridg that is being funded with a DOLA grant with a construction start date of March 21, 2022. 12:33:43 PM There was a discussion about a working group studying the challenges to debcarbonize affordable housing. The discussion included tax credits, energy efficiency, electric vehicle ready parking, annual energy benchmarking, and high energy performance standards. 12:35:02 PM Mr. Toor discussed potential strategies for dedicated financing of energy improvements on affordable housing. He discussed retrofitting new construction; grant funds for efficiency, renewables, and electrification improvements; minimum energy standards as a condition in receiving state funds for new construction or rehabilitation; and support for low or zero emission modifications in home development. 12:36:26 PM Mr. Toor touched on land use and highlighted the features of walkable, compact, transit oriented development that uses less energy. He suggested that compact development may increase access to employment. 12:37:23 PM Mr. Toor discussed several transit oriented devopments. 12:39:09 PM Mr. Toor talked about land use and the Greenhouse Gas Emission roadmap. He suggested that compact development may reduce driving. He talked about reductions in household energy use, including smaller units and multifamily units with shared walls that are energy efficient. 12:40:57 PM Mr. Toor talked about compact land use and affordability. He suggested that families may spend less on transportation and may not spend as much time commuting. Mr. Toor touched on exclusionary zoning through occupancy limits; restricting accessory development units; prohibiting duplexes, triplexes, and fourplexes; requiring minimum sizes; minimum parking requirements; limits on apartments, townhomes, and condominiums; and the discretionary review process. 12:43:39 PM There was a discussion about split incentives. The task force discussed long term affordability. 12:49:15 PM There was a discussion about states attempting to address exclusionary zoning, including Oregan, California, Iowa,and Washington. 12:50:40 PM The task force talked about concentrate funding on transit oriented and compact development; public land for affordable housing; building on House Bill 21-1117 and House Bill 21-1271. 12:53:21 PM Mr. Toor responded to questions about capital costs for energy efficient equipment. 12:54:56 PM There was a discussion about CHFA programs, including new buildings and renovations. 12:55:58 PM There was a discussion about support for low emission in modular homes, such as incentives or requirements for low or zero energy homes. Strategic Topics - Committee Discussion Only 12:57:55 PM The Jacob Bornstein, facilitator representing Wellstone Collaborative Strategies, introduced the breakout room discussions: stabilize existing affordable housing and; expand the capacity and safety net. The task force will review the pillars; determine if the subpanel is working on the correct topics; and provide direction to the subpanel. 12:59:37 PM The task force went to breakout rooms. 12:59:48 PM The task force came back to order. 02:35:54 PM Mr. Bornstein summarized breakout room discussions. He indicated that the subpanel will continue discussions in the areas identified by the task force and all priorities should be reviewed in making policy decisions. He mentioned that the breakout groups discussed stabilizing housing, including considering the effects of short term rentals on access. Preserving current affordable units and considering what naturally occurring affordable housing means, such as mobile home parks, were also discussed. Discussions about land use zoning included: new guidelines; zoning as a contract; and incentives to develop housing, cooperatives, or land trusts. 02:41:33 PM Mr. Rossbert summarized the housing and equity topic. 02:42:11 PM Kristin Toombs made a remark. 02:43:55 PM Ms. Alderman provided feedback on the expanding capacity and strengthening the safety net topic. She shared that discussion included: priority guardrails; connections between pillars; modular home manufacturing; and investment in human capacity and services. She said that challenges discussed include overregulation and focusing on purchasing property alone. 02:47:24 PM Task force members talked about additional safety net discussions: community capacity; intergenerational wealth; preventing homelessness; funding; and connections between services and programming. 02:49:51 PM There was a discussion about short term rentals. Next Steps - Committee Discussion Only 02:51:03 PM The task force discussed the next task force meeting date, Wednesday, October 27, 2021; and subpanel meeting date, tomorrow, Wednesday, September 22,2021, online. The task force discussed an upcoming community survey from the subpanel with results possibly available at the October meeting. 02:52:22 PM Staff indicated that upcoming task force meeting dates will be entered so that the dates appear on the task force website. 02:54:04 PM The chair talked about public input when the task force is ready to make decisions. 02:59:18 PM The committee adjourned.