MAMMOTH LAKES HOUSING, INC.
Board of Directors Meeting
Wednesday, February 10, 2016
Mammoth Lakes Housing Conference Room
587 Old Mammoth Rd.
I. Call to Order
II. Roll Call
Members present: Lindsay Barksdale, Larry Johnston, Kirk Stapp, Bill Taylor, and Jiselle Kenny (arrived at 6:30)
Members absent: Colin Fernie
Staff: Jennifer Halferty and Patricia Robertson
Public: Ruth Traxler, Associate Planner, Town of Mammoth Lakes
III. Public Comments
Ruth Traxler commented that Town staff and MLH staff had a productive meeting to talk about a potential Affordable Housing & Sustainable Communities (AHSC) (Cap + Trade funding) application for acquisition and rehabilitation of existing rental units.
IV. Approval of Minutes from the January 4, 2016 regular BOD Meeting
Bill Taylor made a motion to approve the minutes as amended. Kirk Stapp seconded the motion. The motion passed 2-0. Larry Johnston and Lindsay Barksdale abstained.
V. Board Member reports
Lindsay Barksdale reported that she spoke to a homeowner in the mobile home park on Azimuth Road and told them about the CalHome Program to rehab, replace, or purchase. She also mentioned that there appears to be a vacant multifamily property on Alpine Circle that MLH might consider acquiring. Ruth Traxler confirmed that the property was part of the Hillside Project and would be demolished. Lindsay also announced the the Mammoth Mountain Community Foundation is holding a fundraiser on March 5th from 4-6:30 PM at Main Lodge. The event is a Riedel wine glass seminar. Tickets are $125 per person and include appetizers, wine tasting event, set of Riedel wine glasses, and child care.
Larry Johnston mentioned that Mono County has a new Human Resources Director, named Dave Butters.
Kirk Stapp asked Ruth Taxler regarding the status of the transfer of State Road 203 from CalTrans to the Town. Ruth Traxler noted that there was only a preliminary discussion of whether or not CalTrans would consider it. He also asked for an update regarding the Hart Howerton planning process which was initiated by the mountain. Jennifer Halferty explained that she did receive a follow up email which stated that the schedule and framework would be discussed this week by top mountain officials. Kirk Stapp also thanked Larry Johnston for helping to facilitate the creation of Mono County’s Revolving Loan Fund which will help Mammoth Lakes Housing to acquire deed restricted homes when they are listed for sale. He also stated that he went skiing for the first time in 16 years and could not believe how much the mountain has changed. He had an awesome time and will probably go again this Friday.
Patricia Robertson presented Jennifer Halferty with a card signed by the Board of Directors thanking her for her 10 years of service with Mammoth Lakes Housing, Inc.
VI. MLH monthly status report
Kirk Stapp requested an update on the Mammoth Lakes Recreation meetings where the Shady Rest parcel was discussed as a possible site for an events venue. Jennifer Halferty explained that she attended the meetings, and that the Shady Rest parcel was moved to a Tier 2 position which did not make it a Top 10 location for the events venue. She noted that the Town’s vacancy rate is 0%. She also explained that she has a call scheduled with a writer from Powder Magazine to discuss housing issues and solutions. The writer is researching an article about different resort communities in the United States and it will be interesting because typically Mammoth Lakes is not chosen for these types of articles, which often focus on resort communities in Colorado.
Jennifer Halferty explained that MLH staff met with Town staff today to talk about a potential Affordable Housing & Sustainable Communities (AHSC) application. She attended the NOFA training on Monday, 2/8. There is $32 million dollars set-aside for rural communities, and while most projects that are awarded are for new development, the funds can be used for acquisition and rehabilitation as well. She noted that the program offers grants for transit, infrastructure, and ownership components of the application but that the award for rental housing was a loan. She explained that there is an apartment building currently on the market that may work for this round if there was a transit component as well. Concept applications are due March 16th. If you are invited to submit a complete application, those are due by June 20th. She noted that leveraging funds makes the application more competitive. Larry Johnston said that Mono County has about $200,000 from a mitigation fee that could potentially be used towards this project. He asked who else might be competing for the rural set-aside. Jennifer Halferty explained that disadvantaged communities defined by SB 535 would be competitive, probably in the Los Angeles area and the central valley. She explained that the only community eligible in the Eastern Sierra was the Town of Mammoth Lakes because of the Qualifying Transit system that is already in place. Lindsay Barksdale asked if staff was thinking about other potential partners and Jennifer Halferty explained that she has been in touch John Helm at Eastern Sierra Transit Authority (ESTA). Bill Taylor asked if staff knew how much money per unit the rehabilitation needs are at this project. Jennifer Halferty explained that MLH would need to put in at least $35,000 into each unit, as well as more if needed in order to extend the life of the units through the term of the loan, which is 30 years. She concluded by explaining that the Town Council has a strong desire to use existing stock but the only source of funding currently available is this AHSC Program, and it requires financial leveraging in order to be competitive.
Jennifer Halferty gave a brief overview of her Annual Report 2015 to the Town Council. She stated that she presented to Council on 2/3 and explained to them that we need to work together to make sure that we don’t leave the workforce behind. When the Town Council designed the Measure A funds for workforce housing they designed it as a percent so that as TOT increased, the funds for workforce housing, marketing, and transit would all increase in proportion. Currently, that mechanism is disabled due to the cap placed on the workforce housing funds. The Town is collecting record high TOT revenue and we need to assist those members of the workforce who are helping to generate those taxes. At the end of the presentation Councilmember John Wentworth asked Dan Holler, Town Manager, when MLH and the Town Council could have a joint meeting because he felt that Town Council and MLH are on parallel policy tracks.
VII. Review MLH & SHA Second Quarter Financial Statements
Jennifer Halferty explained that the Town paid off their HELP loan in September so that no longer shows on the books. Otherwise, everything looks on track. There were no questions.
VIII. Review and possible staff direction on the Town of Mammoth Lakes FY 2015-16 Workforce Housing Budget
Jennifer Halferty gave an overview of the Town’s budget for workforce housing. Kirk Stapp noted that it was misleading to the public, without a thorough explanation. There was consensus to add the new outline of the budget items to the MLH website.
IX. Review and possible staff direction on letter from Mono County Board of Supervisors
Jennifer Halferty explained that this letter resulted from her meeting with the Board of Supervisors regarding the Revolving Loan Fund. The Town Council also received a copy, but no one has asked that it be brought to the public forum. Bill Taylor noted that the letter was vague as to what the actual issues are and Jennifer Halferty agreed that the zoning of the Sierra Valley Sites as one of the only RMF-1, non-transient zones does make it the most likely place for workforce housing.
Larry Johnston explained that he abstained from the motion to approve the letter to MLH and the Town Council. He requested that MLH reach out to the 11 homeowners who sent the complaints to Supervisor Fred Stump to explain that MLH is doing what they can to address the issues that they have control over. Additionally, the letter could include who to contact at the Town if there are other issues with parking, noise, trash, etc. at units that do not belong to MLH.
Lindsay Barksdale asked if there was any merit to the homeowners’ concern that a concentration of deed restricted units might bring their home values down. Bill Taylor confirmed that multiple studies have shown that there is no correlation between deed restricted housing and market rate values in close proximity to one another.
Jiselle Kenny stated that she thought the letter was a general stigmatization of certain people who live in the Sierra Valley Sites. She noted that parking, noise, and trash were community-wide issues. Larry Johnston confirmed that this was a good educational opportunity.
X. Discussion of an MLH application for the State of California Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP) and adoption of Resolution 16-01 authorizing the submittal of a loan application
Jennifer Halferty explained that MLH staff had walked the mobile home park in Bridgeport today. It needs a lot of work and due diligence regarding the utility hookups. There are currently 6 homes on the property and 2 empty spaces, with the potential for another space. There was staff direction to procure an appraisal of the site.
Bill Taylor moved to approve Resolution 16-01 with amendments. Kirk Stapp seconded the motion. The motion passed 5-0.
XI. Council Member recap for the Town Council meeting
The Board recapped the meeting and highlighted items for Colin Fernie to report out to Town Council.
1. MLH is pursuing the purchase of a mobile home park in Bridgeport using the State of California Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP) in order to preserve and improve affordable housing regionally.
2. MLH provided a thorough breakdown of the workforce housing budget, which includes $806,048 in low-income rehabilitation and homebuyer assistance grants.
3. MLH will send a response to the letter that was sent to both MLH and the Town Council from homeowners within the Sierra Valley Sites.
4. Apartment vacancy rate is 0%.
5. MLH is exploring an opportunity to use Cap + Trade funding for the acquisition and rehabilitation of existing apartments.
XII. Pursuant to Government Code Section 54956.8, the Board will hold a closed session to discuss property negotiations and possible staff directions and/or action – APN 035-010-020-000 and 035-100-003-000
Property: Shady Rest Tract
Negotiating Parties: Jennifer Halferty and her designees representing MLH (prospective buyer); Bill Schumer and his designees representing Sternseld 1088 Trust (prospective seller)
Under Negotiation: Terms of purchase (price, payment terms)
Announcement of action taken in closed session:
There was no action taken in closed session.