I_ECR_AH_2021A 12/08/2021 09:06:27 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE AFFORDABLE HOUSING TRANSFORMATIONAL TASK FORCE Date 12/08/2021 Attendance Bridges * Rick Garcia X Alison George X Hisey * Jodeh X Jeff Kraft X Pico X Kristin Toombs X Will Toor X Cris White X Woodrow X Woodward X Woog X Zenzinger X Gonzales X Roberts X Time 09:06:27 AM to 11:56:23 AM Place Old State Library This Meeting was called to order by Roberts This Report was prepared by April Bernard Hearing Items Action Taken hIntroductions Committee Discussion Only hOverview of Funding Recommendations Committee Discussion Only hReview Impact Metrics Committee Discussion Only hDiscussion and Voting on Funding Allocations Committee Discussion Only hSubpanel Policy Recommendations Review Committee Discussion Only hNext Steps and Closing Committee Discussion Only Introductions - Committee Discussion Only 09:06:40 AM The chair, Representative Roberts, made introductory remarks and provided an overview of the agenda. Overview of Funding Recommendations - Committee Discussion Only Attachment Tag File Name Attachment http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/EF614699A646...$File/AttachmentASubpanelLtrAllocations.pdf?OpenElement AttachmentASubpanelLtrAllocations.pdf Attachment http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/B96D9471EA82...$File/AttachmentBSummaryAHTTFVoteUpdatedRecommends.pdf?OpenElement AttachmentBSummaryAHTTFVoteUpdatedRecommends.pdf 09:08:17 AM Jacob Bornstein, representing Wellstone Collaboritive, presented an overview of subpanel funding recommendations. He provided the following handouts to the committee: a letter from the subpanel to the committee (Attachment A) and a Summary of Affordable Housing Transformational Task Force Vote and Updated Recommendation Language (Attachment B). 09:10:06 AM Mr. Bornstein responded to questions from committee members. There was a discussion about recommendations in categories A, revolving loan fund, and C, nonprofit local government grants. 09:11:16 AM Director Alison George, Department of Local Affairs (DOLA), Division of Housing, indicated that the department recently learned that loans cannot be made to local governments due to the Taxpayer's Bill of Rights (TABOR) restrictions. Review Impact Metrics - Committee Discussion Only Attachment Tag File Name Attachment http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/E54726DC0831...$File/AttachmentCAHTTFFundingStrategy.pdf?OpenElement AttachmentCAHTTFFundingStrategy.pdf 09:12:48 AM Mr. Bornstein provided an overview of the impact metrics document (Attachment C). He stated that the metric was created with assistance from DOLA and the Colorado Housing and Finance Authority (CHFA); and explained how the impact of each recommendation is reflected in the document. 09:16:45 AM Mr. Bornstein responded to questions from task force members and discussed resident owned communities and the estimate of impacts for each category. He indicated that the first two columns of the impact information assume that all money is spent on a recommendation. These numbers were calculated as a benchmark. The last column represents the recommended percentages. 09:20:05 AM Mr. Bornstein discussed basic assumptions in the chart; direct versus periphery impacts; and funding overlap between task forces and other options to fund recommendations. 09:24:44 AM Task force members discussed local contributions within calculations; current allocations for the Division of Housing; and the Governor's proposal on modular housing, including the component on manufacturing. Discussion and Voting on Funding Allocations - Committee Discussion Only 09:28:29 AM There was a discussion about other recommendations folded into recommendations A and C. A task force member noted that Recommendation H, sustainable rental assistance, is currently in both recommendations A and C, but rental assistance is awarded as a grant, rather than loan. The task force agreed to remove recommendation H from the larger recommendation A and include H only in the larger recommendation C. 09:29:49 AM Representative Roberts discussed including the Governor's proposal on green energy solely in recommendation A. Will Toor suggested that the proposal should be in both recommendations A and C and explained how grant funding is used for the program. 09:34:20 AM Task force members discussed inclusion of the Governor's sustainable communities proposal within recommendation C, rather than recommendation A. Representatives from DOLA indicated that the proposal should stay in both recommendations A and C, but that local governments may prefer grants, especially for infrastructure. 09:37:23 AM Task force members discussed the inclusion of recommendations B, gap financing with expansion of of tax credit and other funding programs, and D, maintain existing affordable housing, within Recommendations A and C. Ms. George indicated that recommendation B is a core part of what DOLA provides for housing projects involving CHFA. She indicated that a property must have significant cash flow to qualify for loan financing, while properties with low cash flow may need a grant. Ms. George suggested that flexibility is needed for both situations and that recomendations B and D should be included in recommendations A and C. 09:41:26 AM The task force agreed to move the Governor's proposal on strong communities from recommendation A to C. The word "sustainable" is corrected to "strong". 09:44:44 AM There was a discussion about the perceived lesser impact of recommendations E, resident owned communities, mobile home parks, and land banking; F, property conversion for transitional or long-term housing; G, permanent supportive housing and supportive services fund; and J, modular housing. The task force talked about moving these recommendations and their funding into recommendations A and C. Several members discussed the positive impact of the recommendations on home ownership, building inter-generational wealth, the transformational nature of the recommendations, and increasing the supply of affordable housing. 09:51:52 AM The task force discussed the Governor's proposal on homelessness and the amount of funding the other task forces may provide. 09:55:53 AM Mr. Bornstein indicated that the Behavioral Health Transformational Task Force is recommending $54 million be allocated to transformational and supportive housing. While the charges of the task forces may not directly overlap, Mr. Bornstein indicated that the Affordable Housing subpanel envisioned some matching frunds from the Behavioral Health Transformational task force. 10:01:37 AM Ms. George proposed adding a statement of support to recommendations F and G and indicating that these recommendations may be funded through other task forces. Task force members discussed folding recommendations F and G into both recommendations A and C, and allocating funding from recommendations F and G to other recommendations. 10:05:37 AM Motion Keep recommendations F, property conversion for transitional or long-term housing, and G, permanent supportive housing and supportive services fund, on the list of recommendations, but do not allocate funds to these recommendations. Moved Bridges Seconded Will Toor Bridges Rick Garcia Alison George Hisey Excused Jodeh Jeff Kraft Pico Kristin Toombs Will Toor Cris White Woodrow Woodward Woog Zenzinger Gonzales Roberts YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection 10:10:20 AM Several members voiced a preference for providing more funding for recommendations A and C. A member suggested that funding between A and C should be equal. A motion was made to divide $60 million from recommendations F and G equally between recommendations A and C. The motion was withdrawn. The task force discussed providing more funding for recommendation J, modular housing, perhaps another $8 million to bring the total funding to $40 million. Several task force members discussed how recommendation J may be less likely to be funded through other task forces. 10:18:38 AM The task force discussed recommendation J, modular housing, and the impact of funding. A motion was made by Representative Roberts and seconded by Will Toor to provide an additional $8 million for recommendation J, bringing the total funding to $40 million. A substitute motion was made by Representative Woodrow and seconded by Representative Roberts to provide an additional $18 million for recommendation J, bringing the total funding to $40 million. Representative Woodrow withdrew his substitute motion. Representative Roberts withdrew the first motion. 10:25:03 AM The task force members discussed allocating funds to recommendations, either by dollar amount or percentage. 10:28:18 AM The task force discussed allocating $60 million to recommendations A and C from funding previously allocated to recommendations F and G. A member suggested allocating equal amounts of funding to both recommendations A and C, bringing the totals to $149 million each; and increasing recommendation J to $50 million. Another member proposed allocating $150 million each for recommendations A and C, and reducing funding to recommendation J. 10:34:46 AM The task force took a recess. 10:35:02 AM The task force came back to order. 10:44:53 AM The task force discussed a 60 percent to 40 percent split of money between recommendations A and C with the intent that the money would go further. There was a discussion about funding for each item within a larger recommendation. The task force determined that an allocation is for the total recommendation, and does not specify funding for items within each total recommendation. 10:46:48 AM Motion Adjust funding of recommendations for a total of $400 million to include: recommendation A, revolving loan fund, $150 million or 37.5 percent of funds; recommendation C, nonprofit and local government grants, $150 million or 37.5 percent of funds; recommendation E, resident owned communities, mobile home parks, and land banking, $35 million or 8.75 percent of funds; recommendation J, modular housing, and Governor's innovative housing proposal, $40 million or 10 percent; and Governor's CHFA missing middle proposal, 25 million or 6.25 percent of funds. Moved Gonzales Seconded Bridges Bridges Yes Rick Garcia Yes Alison George Yes Hisey Excused Jodeh Yes Jeff Kraft Yes Pico No Kristin Toombs Yes Will Toor Yes Cris White Yes Woodrow Yes Woodward Yes Woog Yes Zenzinger Yes Gonzales Yes Roberts Yes YES: 14 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS 10:48:02 AM Motion Adopt the total funding package recommendations, as amended by the task force. Moved Gonzales Seconded Jodeh Bridges Yes Rick Garcia Yes Alison George Yes Hisey Yes Jodeh Yes Jeff Kraft Yes Pico No Kristin Toombs Yes Will Toor Yes Cris White Yes Woodrow Yes Woodward Yes Woog Yes Zenzinger Yes Gonzales Yes Roberts Yes YES: 15 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS 10:51:44 AM Members discussed possible bills related to recommendations of the task force, including funding and specific elements in the larger recommendations. 10:53:36 AM The task force discussed how the final report will be drafted. 10:58:30 AM Representative Roberts indicated that the committee must approve the report by January 11, 2022, with submission to the General Assembly and Governor on January 21, 2022. The chair indicated that the task force will need to see the report before January 11 to provide feedback. The subpanel also requested time to review the report. Subpanel Policy Recommendations Review - Committee Discussion Only Attachment Tag File Name Attachment http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/70894E695E9F...$File/AttachmentDNonFundingRelatedPolicyRecommends.pdf?OpenElement AttachmentDNonFundingRelatedPolicyRecommends.pdf Attachment http://www2.leg.state.co.us/CLICS/CLICS2021A/commsumm.nsf/0/855718B31908...$File/AttachmentEAdditionalPolicyItems.pdf?OpenElement AttachmentEAdditionalPolicyItems.pdf 11:01:16 AM Cathy Alderman and Brian Rossbert provided subpanel policy recommendations to the task force for review (Attachments D and E). The subpanel recommended expanding the affordable housing tax credit, creating a standing committee on housing and homelessness, providing funding for DOLA to expand the Statewide Housing Needs Assessment, and ensuring sustainable funding for supportive services and integrating these services with affordable housing. 11:05:40 AM Ms. Alderman responded to questions from committee members on homelessness. 11:10:30 AM There was a discussion about the the format of the proposed standing committee. Ms. Alderman suggested that department heads are important subject matter experts to include in the discussion. Mr. Rossbert suggested that the committee may be more effective with the ability to propose legislation. 11:13:45 AM Ms. Alderman talked about the sharing of best practices regarding homelessness and including this subject in the larger housing discussion. 11:19:31 AM The task force discussed how policy recommendations may become future bills. 11:24:23 AM The subpanel consensus on policy recommendations was discussed. 11:26:42 AM Motion Add the four subpanel non-funding related policy recommendations to the final task force report including, expand state housing tax credit; establish a standing committee on housing and homelessness; provide funding for DOLA to update and expand a statewide housing needs assessment; and ensure sustainable funding for supportive services and integration with affordable housing. Moved Gonzales Seconded Rick Garcia Bridges Rick Garcia Alison George Hisey Excused Jodeh Jeff Kraft Pico Kristin Toombs Will Toor Cris White Woodrow Woodward Woog Zenzinger Gonzales Roberts YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection 11:26:43 AM Mr. Rossbert and Ms. Alderman presented additional policy recommendations where the subpanel did not achieve consensus, including: funding to evaluate the impact of local government and state zoning and development laws on affordable housing; short-term rentals; homelessness resolution or response; statewide contractor licensing and land use policy; first right of refusal for renters and nonprofits or developers; data and systems integration; workforce, and other ideas (Attachment E). 11:28:58 AM Mr. Rossbert shared the subpanel discussion on short-term rentals, including taxing structures and use of properties. 11:33:13 AM Ms. Alderman indicated that many of the subpanel policy discussions included the inherent struggle between state and local government control. 11:34:11 AM Mr. Rossbert talked about the "other" category of recommendations. He indicated that time constraints limited discussions, including subjects such as construction defect laws; land banking and land trust strategies; intergovernmental agreements to increase the pace of projects; the continuum of affordable housing; a public bank; and review of other state strategies for affordable housing policies and priorities. 11:38:45 AM There was a discussion about providing information on the pros and cons of specific ideas. The subpanel will provide documentation of conversations. Task Force members asked the subpanel to further address, at the December 15, 2021 subpanel meeting, policy recommendations where the subpanel was unable to come to consensus. 11:44:37 AM There was a discussion about focusing on tap fees and how fees are established. A Task Force member asked that the subpanel discuss these fees further. 11:46:48 AM The chair suggested that the subpanel to further discuss providing funds for an evaluation of local government zoning and local and state development laws and rules and regulations that impact the development of affordable housing. He asked the subpanel to work with local governments on the language of a potential policy. 11:48:18 AM Representative Roberts asked the task force to review policy recommendations before the next meeting and discussed the addition of policies to the final report. He asked that short term rentals be added to the report. The subpanel will meet to attempt to arrive at consensus on additional policy recommendations. Those additional recommendations where there is consensus will be included in the final report. Next Steps and Closing - Committee Discussion Only 11:53:59 AM Representative Roberts announced that the December 21, 2021 meeting is cancelled. The next meeting may be January 6, 8, 10, or 11, 2022. A notice will be sent to task force members once the date is finalized. He asked Wellstone staff to provide a draft report to the task force by the end of year. The last meeting should include final policy recommendations, updates, and final approval of the report. 11:56:23 AM The committee adjourned.