CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: April 4, 2022 Action Required: Resolutions (2) (1 reading only; no public hearing) Presenter: Alex Ikefuna, Interim Director, Office of Community Solutions Staff Contacts: Sam Sanders, Deputy City Manager, Operations, Alex Ikefuna, Interim Director Brenda Kelley, Redevelopment Manager Title: Charlottesville Affordable Housing Fund (CAHF) Fund and Housing Advisory Committee Structure Clarification Background: On March 1, 2021, the City Council approved the Affordable Housing Plan that was prepared by RHI Consultants. The plan was a major component of the 2021 Comprehensive Plan which was adopted by the City Council on November 15, 2021. The Housing Plan has several recommendations, including restructuring of Housing Advisory Committee (HAC) and creation of a Charlottesville Affordable Housing Fund (CAHF) to oversee the use of CAHF funds. The Affordable Housing Plan (AHP) recommended that the “City should build a governance structure that institutionalizes an equitable and efficient implementation of the Affordable Housing Plan (page 62 of the Housing Plan).” The AHP also recommended that: • The City reform the structure and function of the Housing Advisory Committee (HAC) to represent a broader range of viewpoints and focus on housing policy recommendations, not funding allocations (page 62 of the AHP) • Empower a new advisory committee with both community and staff representation, to make recommendations about the priorities and distribution of the CAHF (page 62 of the AHP). Discussion: On December 6, 2021, the City Council had a work session on the restructuring and role of the Housing Advisory Committee (HAC), and the creation of a CAHF Committee designed and empowered to set funding priorities and distribution of funds. Council also directed staff to present a final recommendations for approval. 1) Housing Advisory Committee – Proposed Reconfiguration The City Council followed the recommendations in the Affordable Housing Plan and reduced the number of HAC membership from 21 to between 10 and 15. The new membership being proposed would establish the following seats (see also page 72 of the AHP): Membership Group/Background Number Affordable housing providers/recipients of funds 3 Read Estate professionals (may include brokers, 3 lenders, developers, architects, etc.) AT-Large community members 2 Affordable Housing residents or beneficiaries 3 Total 11 City Council Member Non-Voting Member 2) Proposed Charlottesville Affordable Housing Fund (CAHF) Committee The City Council discussed their preferences in setting up a nine-member CAHF Committee to oversee the use of CAHF funds, set priorities and review City staff recommendations for fund awards. These are not necessarily members of HAC. The following represents the proposed CAHF Committee composition: Membership Group/Background Number At-Large community members 3 Affordable Housing residents or beneficiaries 3 City staff 3 Total 9 Alignment with City Council’s Vision and Strategic Plan: yes. Affordable Housing Plan Guiding principles: Racial equity, regional collaboration and comprehensive approach, Comprehensive Plan Guiding Principles • Equity & Opportunity – All people will be able to thrive in Charlottesville. • Community Culture and Unity – Charlottesville’s rich and diverse culture and form will be celebrated, and the entire community will feel welcomed, valued and respected. Strategic Plan (2018-2020) Goals: Goal 1.3 to increase affordable housing options, Goal 1.5 to intentionally address issues of race and equity, and Goal 5.4 to foster effective community engagement. Community Engagement: There have been several community engagement meetings and activities conducted as part of the comprehensive plan update and affordable housing planning process. Budgetary Impact: None. Alternatives: Council may elect not to approve the recommendations. Council may also decide to leave things as they are. Recommendation: The City Manager and staff recommend that the City Council approve the proposed HAC reconfiguration and establish the Charlottesville Affordable Housing Fund Committee to oversee CAHF funds. Attachments (2) • Resolution re-establishing HAC Recommended motion: “I move the RESOLUTION amending and re-enacting the City- Council advisory body known as the Housing Advisory Committee” • Resolution establishing the Affordable Housing Fund Committee Recommended motion: “I move the RESOLUTION Establishing a City Council Advisory body to be known as The Charlottesville Affordable Housing Fund Committee” RESOLUTION Amending and re-enacting the City-Council advisory body known as the Housing Advisory Committee WHEREAS the City Council first established an advisory body known as the Housing Advisory Committee (HAC) in 1978, and the composition of the HAC and the matters upon which City Council desires to receive input and recommendations from the HAC have from time to time been modified between 1978 and the present; and WHEREAS on March 1, 2021, this Council approved an Affordable Housing Plan for the City, the recommendations of the AHP were incorporated into the Comprehensive Plan adopted by the City Council on November 15, 2021, and the recommendations included restructuring the Housing Advisory Committee (HAC); now, therefore, BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that there is hereby re-established an advisory body to the Charlottesville City Council, known as the Housing Advisory Committee (HAC), and the HAC shall have the following purposes and membership: 1. Purposes: the purposes of the HAC shall be: a. to advise the City Council as to affordable housing needs that are not being served within the City of Charlottesville, b. recommend ways to encourage the for-profit housing sector to provide a variety of affordable housing opportunities, c. advise City Council as to the need to improve or delete existing programs, support, or assistance, d. advise City Council on the potential for regional, interjurisdictional cooperation in affordable housing programs. 2. Membership: membership of the HAC shall be appointed by City Council for 2-year terms, subject to the term limits set forth within City Code 2-8. Membership within Category 1 shall be limited to nonprofit entities, who may designate the individual who will represent their entity on the membership of the HAC. If there exist no more than three (3) active nonprofit housing providers within the City when a vacancy exists, then City Council will not be bound by the term limits within City Code §2-8 in filling the vacancy. Within each category of membership, the terms shall be staggered so that not more than one of the terms will expire in any 12-month period. Membership Group/Background Number Category 1: Non-profit entities who are actively 3 engaged in the construction or renting of affordable housing units within the City Category 2: Read Estate professionals (may include 3 brokers, lenders, for-profit developers, architects, etc.) Category 3: AT-Large community members 2 Category 4: Affordable Housing beneficiaries 3 Total 11 City Council Member Non-Voting Member RESOLUTION Establishing a City Council Advisory Bodh to be known as The Charlottesville Affordable Housing Fund Committee WHEREAS on March 1, 2021, this Council approved an Affordable Housing Plan for the City, the recommendations of the AHP were incorporated into the Comprehensive Plan adopted by the City Council on November 15, 2021, and the recommendations included establishing a committee responsible for advising City Council on matters pertaining to the use and expenditure of funding within the Charlottesville Affordable Housing Fund (CAHF); now, therefore, BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that there is hereby established an advisory body to the Charlottesville City Council, to be known as the Charlottesville Affordable Housing Fund Committee (“CAHF Committee”), and the CAHF Committee shall have the following purposes and membership: 1- Purposes: the purposes of the CAHF Committee shall be: a. to recommend to the City Council/ City administration suggested priorities for the use of CAHF funding, b. to review the City administration’s recommendations for award(s) of CAHF funding, c. to provide general input and oversight of the administration and effectiveness of the CAHF funding mechanism, including, without limitation, input as to the best ratio of grants to loans to be disbursed from CAHF, and d. to recommend ways in which the City Council may ensure the sustainability and proper use of the CAHF over time, 2- Restrictions: No grants or loans from the CAHF shall be awarded to persons serving on the CAHF Committee, or to other legal entities of which any such person is a member, or in which such a person has a personal interest as the Virginia State and Local Government Conflict of Interests Act defines that term. 3- Membership: membership of the HAC shall be appointed by City Council for 2-year terms, subject to the term limits set forth within City Code 2-8. Membership Group/Background Number At-Large community members 3 Affordable Housing beneficiaries 3 City staff 3 Total 9