E | Consideration and Adoption of Resolution No. 2023-51: A resolution adopting the Rental Incentive Bond Program, providing framework for the expenditure of $5,000,000 in general obligation bond funds for incentivizing the creation of affordable rental units. | ||||||||||
Housing Planning Manager Jennifer Mikelson addressed Council and noted that the item had been discussed at the October 24, 2023 Work Session and that she was available for any questions. | |||||||||||
Moved by Councilmember Jim McCarthy, seconded by Councilmember Khara House to read Resolution 2023-51 by title only, but with one minor change. The intent of the minor change was to tailor the program to be consistent with the Information Pamphlet that the voters were given to inform them of what the program would be. The change proposed was an addition to the Rental Incentive Bond Program Submittal Requirements, Minimum Threshold Criteria. Specifically, add the criterion that “The Project includes a minimum of 10% market rate-rental units.” Vice Mayor Aslan asked if a housing development had been identified at 90% affordable and 10% market rate. Councilmember McCarthy indicated that he was not aware of one and the reason he made the motion was because he felt that the action was consistent with what was included in the publicity pamphlet from the bond election. Vice Mayor Aslan stated that he did not believe that the amendment would be practical and that it was unlikely that a 90% affordable development would come forward. He did not want to exclude applications that were 100% affordable developments. Councilmember Matthews agreed with Councilmember McCarthy and indicated that the intent was to incentivize market rate developments to include affordable housing. She asked about the process for the remaining $15 million from the bond. Housing Director Sarah Darr stated that there were three identified activities remaining within the bond. One was expanding the down payment and closing cost program and Council approved changes to those programs a few weeks ago. The other two activities included redevelopment of city properties which would not require a working group, and adaptive reuse to target adaptation of existing vacant structures from one use into rental housing. The adaptive reuse would take more time because there was not a model to work from, they would have to develop the program in its entirety. Councilmember House stated that while the intention was to incentivize market rate developers, she felt that the overall objective was to increase access to and the supply of affordable housing. She seconded the motion to allow the Council to engage in a discussion and while she agreed with the sentiments of the amendment, she believed that it would limit the potential benefit to the community. Mayor Daggett stated that the goal was to get affordable housing constructed and she felt that the language within the resolution did that and adequately addressed what was on the ballot and within the voter pamphlet. | |||||||||||
Vote: 2 - 4 | |||||||||||
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Moved by Councilmember Miranda Sweet, seconded by Councilmember Lori Matthews to read Resolution No. 2023-51 by title only. | |||||||||||
Vote: 5 - 1 | |||||||||||
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A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL, ADOPTING THE RENTAL INCENTIVE BOND PROGRAM | |||||||||||
Moved by Councilmember Miranda Sweet, seconded by Councilmember Lori Matthews to adopt Resolution No. 2023-51. | |||||||||||
Vote: 5 - 1 | |||||||||||
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