Board of Directors Meeting

Monday, June 1, 2015
6:00 p.m.

Mammoth Lakes Housing Conference Room
587 Old Mammoth Rd.


I.    Call to Order

II.    Roll Call
Members:  Bill Taylor, Kirk Stapp, Larry Johnston, Colin Fernie, Lindsay Barksdale, and Tom Mazaitis
Staff: Jennifer Halferty and Patricia Robertson
Public: Tom Hodges, Mammoth Mountain Ski Area; John Wentworth, Town Council; Jen Daugherty, Senior Planner; Dan Holler, Town Manager

III.    Public Comments
There were no comments from the public.

IV.    Approval of Minutes from the May 4, 2015 regular BOD Meeting
Bill Taylor made a motion to approve the minutes. Lindsay Barksdale seconded the motion. The motion passed 4-0. Colin Fernie and Tom Mazaitis abstained.

V.    Review and adoption of the amended MLH Bylaws and appointment of the Officer of Vice President of Sales
There was discussion of the amendments to the Bylaws. Bill Taylor made a motion to adopt the amended Bylaws and appoint the Officer of Vice President of Sales. Larry Johnston seconded the motion. The motion passed 6-0.

VI.    Review of the latest Town of Mammoth Lakes Draft Nexus Study/Fee Study
Jennifer Halferty gave a brief overview of the stakeholder process that MLH has participated in. Colin Fernie asked who participated in the calls. Jennifer Halferty clarified the participants as Town staff: Dan Holler, Sandra Moberly, and Jen Daugherty; representatives from Mammoth Mountain: Rusty Gregory, Dave Lichens, and Tom Hodges; developers and their representative: MarK Carney, John Hooper, Chuck Lande; representatives from the contractors association: Jesse Baldwin, Ron Day.

Bill Taylor asked if there were going to be any fundamental changes in the next draft. Jennifer Halferty said that she thought there would be reductions in the number of employees per hotel room, land value, and soft costs for workforce housing developments. Bill Taylor stated that AECOM has to justify their work and they have the broadest experience so it will be interesting to see what rationale they use.

Kirk Stapp stated that he did not want to have the same debate on these issues. He thought it may be a good idea to present Town Council with a letter explaining the opportunities and constraints faced by the community in terms of workforce housing. That way Council has the opportunity to weigh the options on a factual basis before making their decisions.

Bill Taylor stated that he was struck by the employee generation by income category numbers presented by AECOM. He noted that employees generated at 60% AMI and below are approximately 80% of all employees generated and that those workers generated at 80% AMI and below are about 90% of the workforce created. There are not enough grants and TOT from Measure 2002A to address this amount. There are not many employees generated at the higher income levels from 81-150% AMI, and we can probably generate housing solutions for these employees. What problems are we creating for ourselves? Kirk Stapp noted that it typically takes about three years to recognize units with grant funding.

There was a discussion regarding the difference between the Regional Housing Need Allocation (RHNA) used in the Housing Element and the 2011 Needs Assessment. Jennifer Halferty clarified that the RHNA is a number calculated by the State in an effort to predict how much the State will grow and divide the housing need between jurisdictions throughout the State based on population. The 2011 Needs Assessment was an on-the-ground study which took into consideration local context and determined the number of households currently over-crowded, over-paying for housing, or who live outside of Mammoth Lakes but wish to live in Mammoth Lakes.

Tom Hodges mentioned that he thought 1,200 needed workforce units number was too high. He explained that at the current pace of development, it would take 70 years to achieve build-out and using the total number of workforce units needed at build-out makes it seem like we need those units today. He also mentioned that the 1,200 number includes all income levels, and that there is no gap at 120% AMI and above. Tom Mazaitis stated that wages do not keep pace with real estate values and that as we all know, real estate values are climbing but wages remain the same. This means that as real estate values increase, more of the workforce at higher income levels will struggle to find affordable homes. Jennifer Halferty clarified that the federal income levels for Mono County released by the U.S. Department of Housing & Urban Development decreased this year, which further impacts the community.

Tom Hodges stated that development couldn’t afford any fees.

Larry Johnston pointed out that as you approach build-out, land values increase. He speculated on how much the last piece of available land would cost? Would that parcel be for affordable housing? Tom Mazaitis agreed that the limited land really changed the dynamic of the discussion.

Kirk Stapp mentioned the challenges associated with trying to acquire underutilized assets including high HOA fees, special assessments, and lack of livability. Larry Johnston also mentioned that when you rehabilitate units, you have no net gain. Lindsay Barksdale agreed and asked how many smaller condo complexes there were in town. She also thought there may be negative impacts to creating a sense of community if we buy units in complexes that are mostly owned by second homeowners and have local members of the workforce buy or rent them.

Bill Taylor pointed out that in Tom Hodges’ Position Paper, the example of down payment assistance only works for an 88% AMI household; however, according to AECOM the majority of employees generated by new development are below this income category. He noted that if MLH and the Town are going to take on the lion’s share of mitigating for impacts at 60% AMI and below, then we’ll need Measure 2002A funds to do it. He stated that Tom Hodges’ Position Paper cites 2002A funds as an opportunity for housing and he agreed with that.

Bill Taylor suggested that the Housing Policy be revisited biannually. He thought the policy should be monitored to measure achievement against the General Plan goals.

Kirk Stapp made a motion to draft a letter to the Town Council, that the President of the Board would sign, and copy the Planning and Economic Development Commission. Lindsay Barksdale seconded the motion. The motion passed 5-0. Colin Fernie abstained.

VII.    Review of Draft Workforce Housing Comprehensive Housing Strategy
The Board reviewed and discussed the Draft Workforce Housing Comprehensive Housing Strategy. Jennifer Halferty provided and overview of the changes that were made and mentioned that it would go before the Town Council on August 5th.

VIII.    Review and discussion of the Draft Fiscal Year 15/16 Operating Budget
Jennifer Halferty presented the Draft 15/16 Operating Budget. There were no comments. The final budget will be presented for adoption at the July 6th meeting.

IX.    Board Member Reports
Larry Johnston announced that Lynda Salcido was currently acting as interim COA for Mono County. The County is actively recruiting a permanent CAO as well as a Human Resources Director. He also noted that he attended that CA Association of Counties last week where he learned that the State budget was expected to be $6 Billion over forecast this year due to increases in capital gains taxes. Jennifer Halferty confirmed that the Governor approved an increase in the housing set-aside from cap-and-trade funds.

Kirk Stapp announced that he met with Pat Hayes, General Manager for the MCWD, who stated that in May water usage was reduced by 40%. They also continue to rest two wells.

X.    MLH Monthly Status Report
Jennifer Halferty reported that the unit at Aspen Village Townhomes (#H105) will close escrow this week. She also mentioned that the unit at San Joaquin Villas (#18 D2) is listed and is currently being shown. She noted that we filled a unit at Aspen Village for a household that works in the service industry. She confirmed that Measure 2002A is being proposed to be funded at 63% in the Town’s draft 15/16 budget. She mentioned that she spoke to the Town Council regarding the Community Indicators Report which noted a growth in single family home sales prices of 8%. Additionally, annual occupancy monitoring of owners with down payment assistance and/or deed restricted units is underway and currently 24% of owners have responded. Lastly, she mentioned that MLH has been accepted into the CFED I’m HOME program which helps promote manufactured housing as an affordable housing asset.

XI.    Adjourn