HomeMy WebLinkAboutAHTFMinutes_2016_04_14Brookings Affordable Housing Task Force
April 14, 2016 Minutes
A meeting of the Brookings Affordable Housing Task Force was held on Thursday, April 14, 2016 at 1:00
p.m. in the Brookings City and County Government Center. Members present: Patty Bacon, Jacob Mills,
Mary Jo Minor, Kelan Bludorn, Angie Boersma, Mike Lockrem, Al Heuton and Ryan Krogman. City staff
present: Jeff Weldon, City Manager, Kevin Catlin, Assistant to the City Manager and Mike Struck,
Community Development Director.
Chair Bacon call the meeting to order at 1:02 p.m. A motion was made by Boersma, seconded by
Krogman, to approve the agenda. All present voted yes; motion carried.
A motion was made by Krogman, seconded by Minor to approve the minutes. All present voted yes;
motion carried.
Next Scheduled Meeting. Thursday, May 12, 2016 at 1:00 pm.
Discussion on Affordable Housing Definition. Struck gave a brief review of the affordable housing
definition as agreed upon at the March meeting as a lead in to the next discussion item. The Brookings
Affordable Housing Task Force definition of affordable housing is as follows:
Families who pay more than 30 percent of their gross income for housing (principal/rent,
interest, taxes, insurance, and utilities) are considered cost burdened and may have
difficulty affording necessities such as food, clothing, transportation and medical care.
Monthly Income Available for Housing. Struck provided an overview of household and family income
available for housing based upon the definition of affordable housing. Utilizing 30% of gross income, the
following tables show what a household or family could afford to spend on housing based upon their
income.
INCOME AND BENEFITS (IN
2014 INFLATION-ADJUSTED
DOLLARS)
Brookings city, South Dakota
Estimate Percent
30% of
Gross
Income
Monthly Income
Available for
Housing
Total households 8,369 8,369
Less than $10,000 641 7.7% $3,000 $250
$10,000 to $14,999 577 6.9% $4,500 $375
$15,000 to $24,999 1,391 16.6% $7,500 $625
$25,000 to $34,999 957 11.4% $10,500 $875
$35,000 to $49,999 1,265 15.1% $15,000 $1,250
$50,000 to $74,999 1,656 19.8% $22,500 $1,875
$75,000 to $99,999 732 8.7% $30,000 $2,500
$100,000 to $149,999 842 10.1% $45,000 $3,750
$150,000 to $199,999 153 1.8% $60,000 $5,000
$200,000 or more 155 1.9%
Median household income
(dollars)
41,061
Mean household income (dollars) 55,978
Estimate Percent 30% of
Gross
Income
Monthly Income
Available for
Housing
Total Families 4,397 4,397
Less than $10,000 103 2.30% $3,000 $250
$10,000 to $14,999 111 2.50% $4,500 $375
$15,000 to $24,999 500 11.40% $7,500 $625
$25,000 to $34,999 522 11.90% $10,500 $875
$35,000 to $49,999 671 15.30% $15,000 $1,250
$50,000 to $74,999 869 19.80% $22,500 $1,875
$75,000 to $99,999 491 11.20% $30,000 $2,500
$100,000 to $149,999 822 18.70% $45,000 $3,750
$150,000 to $199,999 153 3.50% $60,000 $5,000
$200,000 or more 155 3.50%
Median family income (dollars) 54,532 (X)
Mean family income (dollars) 76,458 (X)
Boersma pointed out that Total Families could exclude a single person living alone in the data.
Consensus of the task force is to find more data on number of families or households by number of
children. Additional discussion ensued on the number of houses on the market that would equate to a
monthly mortgage consistent with the income tables. Krogman and Bludorn gave a quick overview of
the MLS for the Brookings area in specified price ranges consistent with the first time homebuyers
program. The market does not have many listings as this time. Historically, the surrounding
communities have been able to provide a few listings in these price points, but not seeing the listings so
far in 2016.
Issues Affecting Affordable Housing.
Members discussed various issues affecting affordable housing and individuals. Banks qualify applicants
for loans that families cannot simply afford in reality. Banks tend to leave out certain liabilities which
inflates the loan. Lenders do not count food stamps toward income. Child support is counted toward
income.
There are vacancies in the low income subsidized housing market. There may be an issue with
substandard housing in this particular market. Applicants simply do not want to live in a substandard
residence so they choose to live somewhere else at a higher cost. Some people would rather cost
burden themselves rather than beresponsible for maintenance costs on a fixer-upper. Since there is a
shortage of housing for families (e.g. family has three (3) children, but only house available on the
market is a 2 bedroom) they have to consider upsizing to a 3 bedroom at a higher cost. Affordable
housing does exist for qualified applicants in the form of voucher (section 8). However, Brookings is
having issues with applicants living in the area for one year, then porting the voucher over to a different
state.
A list of approximately 26 items were identified as real or perceived issues affecting affordable housing
at the March meeting. The following items were discussed:
Covenants and Restrictions - Increase housing costs by requiring certain square footage on main
floor, exterior facade, garage size, etc. The City does not control covenants and restrictions as that
is a developer requirement. Developers generally provide covenants and restrictions during the
build out phase of a subdivision as a means to provide some protections and assurances to potential
homebuyers. Once the development is built out, it is up to a homeowners association or the
homeowners to enforce. This can lead to additional costs as well as create conflict when trying to
enforce as it often becomes a civil matter.
Suggestion to create a spreadsheet with the issues and have check boxes for who is responsible for
enforcing/incorporating (i.e. city, developer, homeowners association, individuals)
Cost of Undeveloped Land - Market driven. Typically, undeveloped land is agriculture land adjacent
to the city or within a reasonable distance of the city and does not have utilities near or to the site.
Developers negotiate the price with landowners. Developers also have to keep in mind they are
responsible for infrastructure costs. Brookings Municipal Utilities’ policy is to require developers to
front infrastructure costs on any given development.
Minimum Lot Sizes and Setbacks - Struck provided a table with the minimum lot area, minimum lot
frontage/width, front yard setback, side yard setback, and rear yard setback for each residential
district and the various types of residential uses allowed within each zoning district. A copy of the
zoning map was made available for the task force to view the various residential zoning districts
throughout the community. There have been two new residential zoning districts created since
2011, which were primarily for the protection of single-family neighborhoods (R-1C) and in an
attempt to respond to developers' interest in affordable housing (R-1D). Developers are responding
to the zoning changes and incorporating the R-1C into new residential subdivision design. The R-1D
was recently created and there may be some interest moving forward in this district.
Carry Costs of Developers - Carrying costs can be a major burden to developers as development
takes time and money, yet financial commitments need to be met in a timely manner. Items related
to carrying costs include: taxes, interest, engineering, utility improvements, etc. Bludorn mentioned
a good rule of thumb is to figure 5% of your lots are annual carrying costs. Mills explained how
platting of lots affects carrying costs as well as the discretionary formula provided by Brookings
County. These are all items that need to be calculated into individual lot prices.
Action Items: Bacon and Bludorn will work on family household data by number of members in the
family. Heuton and Krogman will review housing stock.
Motion to Adjourn by Heuton, second by Boersma at 3:00 pm.