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I_ECR_AH_2021A 12/08/2021 09:06:27 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  AFFORDABLE HOUSING TRANSFORMATIONAL TASK FORCE
Date 12/08/2021
Attendance
Bridges *
Rick Garcia X
Alison George X
Hisey *
Jodeh X
Jeff Kraft X
Pico X
Kristin Toombs X
Will Toor X
Cris White X
Woodrow X
Woodward X
Woog X
Zenzinger X
Gonzales X
Roberts X
Time 09:06:27 AM to 11:56:23 AM
Place Old State Library
This Meeting was called to order by Roberts
This Report was prepared by April Bernard
Hearing Items Action Taken
Introductions Committee Discussion Only
Overview of Funding Recommendations Committee Discussion Only
Review Impact Metrics Committee Discussion Only
Discussion and Voting on Funding Allocations Committee Discussion Only
Subpanel Policy Recommendations Review Committee Discussion Only
Next Steps and Closing Committee Discussion Only

Introductions - Committee Discussion Only
09:06:40 AM  
The chair, Representative
Roberts, made introductory remarks and provided an overview of the agenda.



Overview of Funding Recommendations - Committee Discussion Only
09:08:17 AM  
Jacob Bornstein,
representing Wellstone Collaboritive, presented an overview of subpanel
funding recommendations.  He provided the following handouts to the
committee: a letter from the subpanel to the committee (Attachment A) and
a Summary of Affordable Housing Transformational Task Force Vote and Updated
Recommendation Language (Attachment B).
09:10:06 AM  
Mr. Bornstein responded
to questions from committee members.  There was a discussion about
recommendations in categories A, revolving loan fund, and C, nonprofit
local government grants.
09:11:16 AM  
Director Alison George,
Department of Local Affairs (DOLA), Division of Housing, indicated that
the department recently learned that loans cannot be made to local governments
due to the Taxpayer's Bill of Rights (TABOR) restrictions.



Review Impact Metrics - Committee Discussion Only
09:12:48 AM  
Mr. Bornstein provided
an overview of the impact metrics document (Attachment C).  He stated
that the metric was created with assistance from DOLA and the Colorado
Housing and Finance Authority (CHFA); and explained how the impact of each
recommendation is reflected in the document.
09:16:45 AM  
Mr. Bornstein responded
to questions from task force members and discussed resident owned communities
and the estimate of impacts for each category.  He indicated that
the first two columns of the impact information assume that all money is
spent on a recommendation.  These numbers were calculated as a benchmark.
 The last column represents the recommended percentages.  
09:20:05 AM  
Mr. Bornstein discussed
basic assumptions in the chart; direct versus periphery impacts; and funding
overlap between task forces and other options to fund recommendations.
09:24:44 AM  
Task force members
discussed local contributions within calculations; current allocations
for the Division of Housing; and the Governor's proposal on modular housing,
including the component on manufacturing.



Discussion and Voting on Funding Allocations - Committee Discussion Only
09:28:29 AM  
There was a discussion
about other recommendations folded into recommendations A and C.  A
task force member noted that Recommendation H, sustainable rental assistance,
is currently in both recommendations A and C, but rental assistance is
awarded  as a grant, rather than loan.  The task force agreed
to remove  recommendation H from the larger recommendation A and include
H only in the larger recommendation C.
09:29:49 AM  
Representative Roberts
discussed including the Governor's proposal on green energy solely in recommendation
A.  Will Toor suggested that the proposal should be in both recommendations
A and C and explained how grant funding is used for the program.
09:34:20 AM  
Task force members
discussed inclusion of the Governor's sustainable communities proposal
within recommendation C, rather than recommendation A.  Representatives
from DOLA indicated that the proposal should stay in both recommendations
A and C, but that local governments may prefer grants, especially for infrastructure.
09:37:23 AM  
Task force members
discussed the inclusion of recommendations B, gap financing with expansion
of of tax credit and other funding programs, and D, maintain existing affordable
housing, within Recommendations A and C.  Ms. George indicated that
recommendation B is a core part of what DOLA provides for housing projects
involving CHFA.  She indicated that a property must have significant
cash flow to qualify for loan financing, while properties with low cash
flow may need a grant.  Ms. George suggested that flexibility is needed
for both situations and that recomendations B and D should be included
in recommendations A and C.
09:41:26 AM  
The task force agreed
to move the Governor's proposal on strong communities from recommendation
A to C.  The word "sustainable" is corrected to "strong".
09:44:44 AM  
There was a discussion
about the perceived lesser impact of recommendations E, resident owned
communities, mobile home parks, and land banking; F, property conversion
for transitional or long-term housing; G, permanent supportive housing
and supportive services fund; and J, modular housing.  The task force
talked about moving these recommendations and their funding into recommendations
A and C.  

Several members
discussed the positive impact of the recommendations on home ownership,
building inter-generational wealth, the transformational nature of the
recommendations, and increasing the supply of affordable housing.
09:51:52 AM  
The task force discussed
the Governor's proposal on homelessness and the amount of funding the other
task forces may provide.
09:55:53 AM  
Mr. Bornstein indicated
that the Behavioral Health Transformational Task Force is recommending
$54 million be allocated to transformational and supportive housing.  While
the charges of the task forces may not directly overlap, Mr. Bornstein
indicated that the Affordable Housing subpanel envisioned some matching
frunds from the Behavioral Health Transformational task force.
10:01:37 AM  
Ms. George proposed
adding a statement of support to recommendations F and G and indicating
that these recommendations may be funded through other task forces.  

Task force members discussed folding recommendations F and G into both
recommendations A and C, and allocating funding from recommendations F
and G to other recommendations.


10:05:37 AM
 Motion Keep recommendations F, property conversion for transitional or long-term housing, and G, permanent supportive housing and supportive services fund, on the list of recommendations, but do not allocate funds to these recommendations.
Moved Bridges
Seconded Will Toor
Bridges
Rick Garcia
Alison George
Hisey Excused
Jodeh
Jeff Kraft
Pico
Kristin Toombs
Will Toor
Cris White
Woodrow
Woodward
Woog
Zenzinger
Gonzales
Roberts
YES: 0   NO: 0   EXC: 1   ABS:  0   FINAL ACTION:  Pass Without Objection
10:10:20 AM  
Several members voiced
a preference for providing more funding for recommendations A and C.  A
member suggested that funding between A and C should be equal.  A
motion was made to divide $60 million from recommendations F and G equally
between recommendations A and C.  


The motion was withdrawn.

The task force discussed providing more funding for recommendation J, modular
housing, perhaps another $8 million to bring the total funding to $40 million.
 Several task force members discussed how recommendation J may be
less likely to be funded through other task forces.  
10:18:38 AM  
The task force discussed
recommendation J, modular housing, and the impact of funding.  A motion
was made by Representative Roberts and seconded by Will Toor to provide
an additional $8 million for recommendation J, bringing the total funding
to $40 million.  

A substitute motion
was made by Representative Woodrow and seconded by Representative Roberts
to provide an additional $18 million for recommendation J, bringing the
total funding to $40 million.  

Representative
Woodrow withdrew his substitute motion.  Representative Roberts withdrew
the first motion.
10:25:03 AM  
The task force members
discussed allocating funds to recommendations, either by dollar amount
or percentage.
10:28:18 AM  
The task force discussed
allocating $60 million to recommendations A and C from funding previously
allocated to recommendations F and G.   A member suggested allocating
equal amounts of funding to both recommendations A and C, bringing the
totals to $149 million each; and increasing recommendation J to $50 million.
  Another member proposed allocating $150 million each for recommendations
A and C, and reducing funding to recommendation J.
10:34:46 AM  
The task force took
a recess.
10:35:02 AM  
The task force came back to order.
10:44:53 AM  
The task force discussed
a 60 percent to 40 percent split of money between recommendations A and
C with the intent that the money would go further.  

There was a discussion about funding for each item within a larger recommendation.
 The task force determined that an allocation is for the total recommendation,
and does not specify funding for items within each total recommendation.


10:46:48 AM
 Motion Adjust funding of recommendations for a total of $400 million to include: recommendation A, revolving loan fund, $150 million or 37.5 percent of funds; recommendation C, nonprofit and local government grants, $150 million or 37.5 percent of funds; recommendation E, resident owned communities, mobile home parks, and land banking, $35 million or 8.75 percent of funds; recommendation J, modular housing, and Governor's innovative housing proposal, $40 million or 10 percent; and Governor's CHFA missing middle proposal, 25 million or 6.25 percent of funds.
Moved Gonzales
Seconded Bridges
Bridges Yes
Rick Garcia Yes
Alison George Yes
Hisey Excused
Jodeh Yes
Jeff Kraft Yes
Pico No
Kristin Toombs Yes
Will Toor Yes
Cris White Yes
Woodrow Yes
Woodward Yes
Woog Yes
Zenzinger Yes
Gonzales Yes
Roberts Yes
YES: 14   NO: 1   EXC: 1   ABS:  0   FINAL ACTION:  PASS


10:48:02 AM
 Motion Adopt the total funding package recommendations, as amended by the task force.
Moved Gonzales
Seconded Jodeh
Bridges Yes
Rick Garcia Yes
Alison George Yes
Hisey Yes
Jodeh Yes
Jeff Kraft Yes
Pico No
Kristin Toombs Yes
Will Toor Yes
Cris White Yes
Woodrow Yes
Woodward Yes
Woog Yes
Zenzinger Yes
Gonzales Yes
Roberts Yes
YES: 15   NO: 1   EXC: 0   ABS:  0   FINAL ACTION:  PASS
10:51:44 AM  
Members discussed
possible bills related to recommendations of the task force, including
funding and specific elements in the larger recommendations.
10:53:36 AM  
The task force discussed
how the final report will be drafted.
10:58:30 AM  
Representative Roberts
indicated that the committee must approve the report by January 11, 2022,
with submission to the General Assembly and Governor on January 21, 2022.
 The chair indicated that the task force will need to see the report
before January 11 to provide feedback.  The subpanel also requested
time to review the report.



Subpanel Policy Recommendations Review - Committee Discussion Only
11:01:16 AM  
Cathy Alderman and
Brian Rossbert provided subpanel policy recommendations to the task force
for review  (Attachments D and E).  The subpanel recommended
expanding the affordable housing tax credit, creating a standing committee
on housing and homelessness, providing funding for DOLA to expand the Statewide
Housing Needs Assessment, and ensuring sustainable funding for supportive
services and integrating these services with affordable housing.
11:05:40 AM  
Ms. Alderman responded
to questions from committee members on homelessness.
11:10:30 AM  
There was a discussion
about the the format of the proposed standing committee.  Ms. Alderman
suggested that department heads are important subject matter experts to
include in the discussion.  Mr. Rossbert suggested that the committee
may be more effective with the ability to propose legislation.
11:13:45 AM  
Ms. Alderman talked
about the sharing of best practices regarding homelessness and including
this subject in the larger housing discussion.
11:19:31 AM  
The task force discussed
how policy recommendations may become future bills.
11:24:23 AM  
The subpanel consensus
on policy recommendations was discussed.


11:26:42 AM
 Motion Add the four subpanel non-funding related policy recommendations to the final task force report including, expand state housing tax credit; establish a standing committee on housing and homelessness; provide funding for DOLA to update and expand a statewide housing needs assessment; and ensure sustainable funding for supportive services and integration with affordable housing.
Moved Gonzales
Seconded Rick Garcia
Bridges
Rick Garcia
Alison George
Hisey Excused
Jodeh
Jeff Kraft
Pico
Kristin Toombs
Will Toor
Cris White
Woodrow
Woodward
Woog
Zenzinger
Gonzales
Roberts
YES: 0   NO: 0   EXC: 1   ABS:  0   FINAL ACTION:  Pass Without Objection
11:26:43 AM  
Mr. Rossbert and
Ms. Alderman presented additional policy recommendations where the subpanel
did not achieve consensus, including: funding to evaluate the impact of
local government and state zoning and development laws on affordable housing;
short-term rentals; homelessness resolution or response; statewide contractor
licensing and land use policy; first right of refusal for renters and nonprofits
or developers; data and systems integration; workforce, and other ideas
(Attachment E).  
11:28:58 AM  
Mr. Rossbert shared
the subpanel discussion on short-term rentals, including taxing structures
and use of properties.
11:33:13 AM  
Ms. Alderman indicated
that many of the subpanel policy discussions included the inherent struggle
between state and local government control.
11:34:11 AM  
Mr. Rossbert talked
about the "other" category of recommendations.  He indicated
that time constraints limited discussions, including subjects such as construction
defect laws; land banking and land trust strategies; intergovernmental
agreements to increase the pace of projects; the continuum of affordable
housing; a public bank; and review of other state strategies for affordable
housing policies and priorities.
11:38:45 AM  
There was a discussion
about providing information on the pros and cons of specific ideas.  The
subpanel will provide documentation of conversations.  

Task Force members asked the subpanel to further address, at the December
15, 2021 subpanel meeting, policy recommendations where the subpanel was
unable to come to consensus.
11:44:37 AM  
There was a discussion
about focusing on tap fees and how fees are established. A Task Force member
asked that the subpanel discuss these fees further.
11:46:48 AM  
The chair suggested
that the subpanel to further discuss providing funds for an evaluation
of local government zoning and local and state development laws and rules
and regulations that impact the development of affordable housing.  He
asked the subpanel to work with local governments on the language of a
potential policy.
11:48:18 AM  
Representative Roberts
asked the task force to review policy recommendations before the next meeting
and discussed the addition of policies to the final report.  He asked
that short term rentals be added to the report.  The subpanel will
meet to attempt to arrive at consensus on additional policy recommendations.
 Those additional recommendations where there is consensus will be
included in the final report.



Next Steps and Closing - Committee Discussion Only
11:53:59 AM  
Representative Roberts
announced that the December 21, 2021 meeting is cancelled.  The next
meeting may be January 6, 8, 10, or  11, 2022.  A notice will
be sent to task force members once the date is finalized. He asked Wellstone
staff to provide a draft report to the task force by the end of year.  The
last meeting should include final policy recommendations, updates, and
final approval of the report.


11:56:23 AM   The committee adjourned.






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