1. I. Review of FY12 and FY13 expenditures; and II. Review AH Plan/CAHAB and recommendations for implementation; and III. Craft budget recommendations in support of CAHAB objectives and AH Plan implementation CAHAB FY 2014 Budget recommendations

2. Affordable/Workforce Housing FY12/FY13 Expenditures FY 12 $30,000 Affordable Housing Study and Plan (CDBG PI) $40,000 Road to Home (Community Housing) $14,400 HRDC Community Development (CDBG PI) $48,600 WMMH (Big Box) FY 13 (to date) $40,000 Road to Home (Community Housing) $14,400 HRDC Community Development (CDBG PI)

3. In FYs 12 and 13 we…. Completed the City’s first affordable housing needs assessment and affordable housing plan in 10 years; Began implementation of the adopted affordable housing plan; Created a City process for reviewing and supporting Low Income Housing Tax Credit Applications; Supported the creation of 6 units of permanently affordable rental housing for very-low income households for Western Montana Mental Health; Supported applications for LIHTC projects proposing 53 new units (1 project, providing 11 units was funded); Reviewed and advised City Commission regarding PUD amendments for previous affordable housing requirements; Crafted recommendations for affordable housing incentives; Reviewed proposed impact fees as related to affordable housing; Met with potential developers of affordable housing (Staff) to facilitate development/rehabilitation/preservation of affordable housing in community; and, Facilitated meetings with current owners of affordable housing to preserve units in the community, particularly in mobile home parks.

4. In FY 14 we want to ….. Expand and increase CAHAB outreach, activities and programs; Expand and improve outreach to affordable housing developers and property owners; Continue implementation of Affordable Housing Plan; Update rental study; Support development of 40 future LIHTC units; Support development of rental units/resources for very-low income households; Continue support for programs providing assistance to first-time homebuyers; Support development of affordable properties for households seeking homeownership; Support preservation of mobile home parks; Provide information to potential developers of affordable housing to facilitate new development and preservation of existing units; Support HAVEN to expand capacity; and Continue efforts to identify and implement incentives for the development/rehab/preservation of affordable housing.

5. Affordable Housing Plan Priorities and Recommendations 1. Increase & preserve affordable housing supply 2. Consider amendments to city regulations 3. Assure financial and organizational capacity 4. Share crucial market data; report on progress Following are the action items Numeric goals are for 2012-2016 (five years)

6. 1. Increase & preserve supply 1.Build and sell 25 affordable homes (nonprofits) 2.Build and sell low-market-rate homes (builders) 3.Increase assistance to homebuyers - Counseling for 750, 2 nd mortgages for 100 4.Build and rent 200 subsidized apartments 5.Renovate and add to special needs housing 6.Repair existing affordable homes - 25 complete repairs, 25 partial repairs, 400 weatherizations 7.Encourage energy efficient construction/repairs

7. 2. Review/change regulations 1.Continue suspension of inclusionary zoning - done 2.Defer or subsidize impact fees for some homes – new IF structure 3.Allow smaller lots – flexibility with dimensions – in process 4.Allow more flexibility in re-platting subdivisions – in process 5.Review requirements for accessory units – in process 6.Clarify zoning status of group homes – planning dept 7.Review ordinances RE: mobile home parks – planning, HRDC 8.Investigate ways to reduce cost impact of open space requirements – CAHAB recommendation

8. 3. Increase financial and organizational capacity 1.Maximize access to federal funds – HAVEN sponsorship, LIHTC support 2.Use workforce housing fund efficiently 3.Build capacity of local nonprofits – HAVEN, GGHAC

9. 4. Share crucial data and track progress 1.Follow new protocols for updating income and price targets 2.Obtain and share rental market data – update in FY14 3.Publish annual reports on work plan progress versus goals – in process

10. Eligible Activities and Funding Criteria (Affordable Housing Plan, Appendix B) Rental Projects serving extremely low-income renters and/or special needs clients (up to $20,000/unit) Home purchase assistance (up to $10,000/unit) Pre-purchase counseling program (up to $40,000/year) Emergency housing repairs by volunteer groups (up to $1,000/home); other emergency repairs up to $7,500/home Coordination of CAHAB and housing plan monitoring (up to $50,000/year) Subsidies of development-related fees ($ amount not identified)

11. FY 14 Proposed Budget for Affordable/Workforce Housing Proposals/Contracts to Date: $40,000 Road to Home for support of Homeownership Center $14,400 Contract with HRDC for administration of affordable housing programs Potential Projects: HRDC: Assist with the purchase and preservation of mobile home park Other items to consider: Updates to rental survey, approximate cost: $5,000 Other projects in support of housing plan

12. FY 14 Affordable/Workforce Housing Budget Proposed Funding Sources Continue to fund ongoing housing operations for Road to Home and contract administration in the proposed amount of $54,400 ($40,000 from Community Housing Fund and $14,400 from CDBG PI); Increase the number of Mills currently levied from approximately.5 mills to 1mill to support expansion of activities The value of one mill is $86,226; In 2012, City residents living in the median residential home paid approximately $3.71 for each mill levied. The same home would expect the following increases if additional revenue was raised through mills to fund affordable housing: 1/2 Mill increase = $1.85 Utilize remaining Big Box balance and a portion of Community Housing fund balance to support new projects Consider a mechanism for the funding of major affordable housing expenditures