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I_ECR_AH_2021A 09/21/2021 09:06:33 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM 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
Welcome and Purpose Committee Discussion Only
Overview of Subpanel Work Committee Discussion Only
Affordable Housing Needs and Gaps Committee Discussion Only
Sustainable and Safe Housing Committee Discussion Only
Strategic Topics Committee Discussion Only
Next 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


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


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


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.