phoenix city council neighborhoods, housing and ... · 3. request for qualifications for on-call...

Neighborhoods, Housing and Development Subcommittee, Rev. 2/10/2016, 11:32 AM

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NOTICE OF PUBLIC MEETINGS CITY COUNCIL NEIGHBORHOODS, HOUSING AND DEVELOPMENT

SUBCOMMITTEE AND

SPECIAL MEETING OF THE PHOENIX CITY COUNCIL Pursuant to A.R.S. Section 38-431.02, notice is hereby given to the members of the PHOENIX CITY COUNCIL NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE and to the general public, that the NEIGHBORHOODS, HOUSING AND DEVELOPMENT SUBCOMMITTEE will hold a meeting open to the public on February 16, 2016, at 10:00 a.m., located in Phoenix City Hall, Assembly Rooms A, B and C, 200 W. Washington St., Phoenix, Ariz. Pursuant to Chapter IV, Section 20, of the Charter of the City of Phoenix, a SPECIAL MEETING OF THE PHOENIX CITY COUNCIL has been called to occur at the same time as the Subcommittee meeting for the purpose of permitting members of the City Council who are not members of the Subcommittee to be present and participate in the INFORMATION AND DISCUSSION ONLY for ITEM 10 on the Subcommittee agenda. No action will be taken by the City Council. The minutes of this meeting will be included in the minutes of the subcommittee meeting. One or more members of the Subcommittee or City Council may participate via teleconference. Agenda items may be taken out of order. The agenda for this meeting is as follows:

1. Call to Order Chairwoman Gallego

2. Call to the Public Chairwoman Gallego

3. Approval of Jan. 19, 2016 Subcommittee Minutes Subcommittee

4. CITY OF PHOENIX HOMELESS INITIATIVES UPDATE Standing report providing an overview of recent accomplishments related to helping alleviate homelessness in Phoenix. This item is for information only.

Moe Gallegos, Human Services Director

5. HUD ANNUAL AGENCY PLAN UPDATE Provide an update on the annual Housing and Urban Development Agency Plan. This item is for consent.

Cindy Stotler Housing Director


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6. CONTRACTORS FOR HOUSING REHABILITATION PROJECTS Request Subcommittee recommend City Council approval to establish a contractors qualified vendor list to participate in bid opportunities for Neighborhood Services Department housing rehabilitation projects. This item is for consent.

Chris Hallett, Neighborhood Services Director

7. HOUSING COUNSELING AND NEIGHBORHOOD REVITALIZATION RFP RESULTS Request Subcommittee recommend City Council approval of the 2015-16 Community Development Block Grant Housing Counseling and Neighborhood Revitalization Program award recipients. This item is for consent.

Chris Hallett, Neighborhood Services Director

8. AWARD OF HOME PROGRAM FUNDING FOR AFFORDABLE RENTAL HOUSING DEVELOPMENT PROJECTS Request Subcommittee recommend City Council approval to loan and disburse federal HOME Investment Partnerships Program (HOME) funds to assist in the development of affordable rental housing projects. This item is for consent.

Cindy Stotler Housing Director

9. PLANNING AND DEVELOPMENT DEPARTMENT ACTIVITY AND STAFFING UPDATE Provide an update on development permit activity and request additional mid-year positions to ensure timely customer service. This item is for information, discussion and possible action.

Alan Stephenson, Planning & Development Director


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10. Special Meeting of the Phoenix City Council Call to Order by Chairwoman Gallego and Roll Call for concurrent meeting of the Phoenix City Council for the purpose of permitting members of the City Council who are not members of the Subcommittee to be present and participate in the information and discussion only on Item 10.

A) REQUEST TO AMEND THE ZONING ORDINANCE

Request Subcommittee recommend City Council approval to modify smoke shop spacing requirements, include e-cigarettes in definition and reduce the percent of floor space allowed from 15% to 5% in order to avoid triggering spacing requirements. Information and discussion.

B) MEDICAL MARIJUANA ZONING REGULATIONS Provide an update on medical marijuana dispensary, cultivation and infusion facilities. Information and Discussion.

Adjourn Special Meeting of the City Council

Alan Stephenson, Planning & Development Director This item is for information and discussion only during the concurrent Special City Council meeting. Action may be taken by the Subcommittee after adjournment of the special meeting.

11. REQUEST TO AMEND THE ZONING ORDINANCE Request Subcommittee recommend City Council approval to modify smoke shop spacing requirements, include e-cigarettes in definition and reduce the percent of floor space allowed from 15% to 5% in order to avoid triggering spacing requirements. This item is for information, discussion and possible action.


12. MEDICAL MARIJUANA ZONING REGULATIONS Provide an update on medical marijuana dispensary, cultivation and infusion facilities. This item is for information and discussion.


13. Call to the Public Chairwoman Gallego

14. Future Agenda Items Chairwoman Gallego

15. Adjournment Chairwoman Gallego

For further information, or reasonable accommodations, please call Michael Hammett, City Manager’s Office, at 602-495-7195 or Nick Valenzuela at 602-262-4449. 7-1-1 Friendly.


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Persons paid to lobby on behalf of persons or organizations other than themselves shall register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying. If you have any questions about registration or whether or not you must register, please contact the City Clerk’s Office at 602-262-6811. Feb. 8, 2016


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Phoenix City Council Neighborhoods, Housing and Development Subcommittee

Summary Minutes Tuesday, January 19, 2015

City Council Subcommittee Room Phoenix City Hall, Assembly Rooms A, B, and C 200 West Washington Street Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilwoman Kate Gallego, Chair Councilwoman Laura Pastor Vice Mayor Daniel Valenzuela Councilman Sal DiCiccio

1. Call to Order

Chairwoman Gallego called the meeting to order at 10:12 a.m. Councilwoman Laura Pastor, Councilman Sal DiCiccio, and Vice Mayor Valenzuela were in attendance.

2. Review and Approval of the November 25, 2015 Neighborhoods, Housing and

Development Subcommittee Minutes Vice Mayor Valenzuela moved approval of the November 25, 2015, meeting

minutes. Councilwoman Pastor seconded the motion, which passed 4-0. 3. Request for Qualifications for On-Call Asbestos and Lead-based Paint

Consulting Councilwoman Pastor moved approval of the consent item. Vice Mayor Valenzuela

seconded the motion, which passed 4-0. 4. February 2016 Graffiti Free Phoenix Awareness Month Item was for information only; no questions were asked. 5. Park Lee Apartments Update Item was for information only; Councilwoman Pastor requested a brief update on

the item. Housing Director Cindy Stotler discussed the location and history of the City’s purchase of the apartments. Ms. Stotler cited high crime rate and high

Staff Present Staff Present Public Present Deanna Jonovich Penny Parrella Tracee Crockett Michael Hammett Cindy Stotler Chris Hallett Moe Gallegos Alan Stephenson Darcy Kober Aubrey Gonzales

Nick Valenzuela Angela Duncan Ron Ramirez Bernice Felix-Baca Chris Christensen Lee Stater Titus Mathew Thaddis Jackson Spencer Self Rachel Milne

Larry Herrera Raye Hepburn Sheila Harris Joel McCabe Craig Tribken Daniel Perle Stanko Zovko


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vacancy as reasons for the City’s purchase of the units. Ms. Stotler stated $10 million in re-stabilization and CDBG/HOME funds were used to redevelop the apartment units. Ms. Stotler further stated the complex was now 98% full and was desirable as the apartments are now more affordable and located near light rail.

Councilman DiCiccio asked what the acquisition and operational costs were for

Park Lee. Ms. Stotler stated all renovation work totaled $10.4 million in Neighborhood Stabilization program and Affordable Housing program funds. She further stated acquisition costs were $5 million and would meet with Councilman DiCiccio once the operational costs were determined.

Councilwoman Gallego suggested the economic impact of policing and vacancy

rate also be determined. Councilwoman Pastor discussed the dynamics of the area before Park Lee had

been remodeled. Ms. Stotler discussed the remodeling of the interior and the impact a lower crime rate had within the community.

6. Annual Performance Assessment, Program Year 2014-15 Item was for information only; no questions were asked. 7. HUD Rental Assistance Demonstration Program Ms. Stotler provided an overview of the Rental Assistance Demonstration (RAD)

program. She stated 815 housing units were considered aged and obsolete facilities needing redevelopment. Ms. Stotler discussed the benefits of the RAD program stating participation in the program would: increase self-sufficiency of property operations through stable Section 8 funding; provide for property reserves, not subject to HUD recapture, to address on-going capital needs; and utilize Low Income Housing Tax Credits as well as private sources of funding to make capital improvements. Ms. Stotler discussed the properties proposed for the RAD application.

Ms. Stotler requested the Subcommittee recommend City Council approval for

Housing to apply for the HUD RAD program to revitalize 815 units in 5 multi-family rental properties in the City’s public housing portfolio and implement the RAD program, if approved by HUD.

Councilwoman Gallego stated her support for the application and discussed

feedback heard from residents who resided in the neighborhoods. Councilman DiCiccio clarified staff’s request was for the application only and a

needs assessment would occur at a later date. Ms. Stotler stated the needs assessment had already been completed as it was part of the application for the program. She further stated staff would come back to the Subcommittee if the application was approved.

Councilman DiCiccio requested clarification on how Section 8 vouchers would work

with the program. Ms. Stotler stated some requirements would remain on the vouchers for a minimum of a year but then residents would have a choice on where to use the vouchers.


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Councilwoman Pastor moved approval of recommendation for City Council approval to apply for the HUD RAD program. Vice Mayor Valenzuela seconded the motion which passed 4-0.

8. Request for Proposals for Real Estate Market Area Demand Study

Consultant(s) Neighborhood Services Department (NSD) Director Chris Hallett stated staff was

soliciting a market study to define how to best use areas of redevelopment throughout the City. He stated the study would identify commercial trends, policy recommendations, and short and long term trends. Mr. Hallett provided a list of redeveloped areas throughout the City. He provided a timeline of the RFP process, RFP due date, evaluation due date, and recommendation date. Mr. Hallett stated limited resources and differential of market areas were areas in which the study would further assist.

Mr. Hallett requested the Subcommittee recommend City Council approval to issue

a RFP to real estate market consulting firm(s) to conduct a comprehensive real estate market area demand study for NSD and Housing Strategic Redevelopment and Neighborhood Initiative Areas (NIA).

Councilwoman Gallego stated the Garfield Redevelopment Area leaders requested

the possibility of updating the zoning in the area. Councilman DiCiccio asked if staff had researched partnering with the private

sector on redevelopment rather than just non-profits. Mr. Hallett stated this was becoming practice and they would continue to offer everybody a chance. Councilman DiCiccio discussed how a development agreement with a private company would allow for maximization of profits and efficiencies.

Councilwoman Gallego discussed past history of redevelopment agreements. Councilwoman Pastor moved approval of recommendation to City Council to issue

a RFP to real estate market consulting firm(s) to conduct a comprehensive real estate market study for NSD and Housing Strategic Redevelopment and NIA’s.

Vice Mayor Valenzuela seconded the motion, which passed 4-0. 9. Slum Property Update Mr. Hallett provided an overview of the Neighborhood Preservation Ordinance

(NPO) and the history of slum property designation on the City and State levels. Mr. Hallett stated no properties within the City are currently designated slum properties. He further stated Woodbridge Apartments was the most recent property designated. Mr. Hallett discussed the former conditions of the apartments and stated in July 2012 the property owners were issued with $47,000 in fines. He further stated in August 2012, the property owners were issued with $2.8 million in criminal charges. Mr. Hallett stated the property was designated a slum property in August 2013. Mr. Hallett stated the property came into compliance in March 2015 and is no longer designated as a slum property. Mr. Hallett stated there were some aging properties within the City but the owners are working to come into compliance. He further stated most issues involve adequate air conditioning during


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the summer months. Mr. Hallett stated the new temperature control standards passed by the Subcommittee have greatly addressed those needs. Mr. Hallett discussed the current outreach on the new temperature standards.

Vice Mayor Valenzuela discussed the need for everyone to know slumlords would

not be tolerated within the City. He stated he was proud of how staff responded and asked for the update to keep focus on the issue. Vice Mayor Valenzuela further stated slum properties would not be tolerated within the City. Vice Mayor Valenzuela requested staff look into the Legends Villa West Apartments to see which areas they may need to come into compliance with the NPO. Vice Mayor Valenzuela discussed the challenges of working across departments and within the community to address the issues but discussed the importance of doing so.

Councilwoman Pastor discussed the challenge of working with properties who have

multiple owners. Mr. Hallett discussed working with multiple owners on educating them with the NPO

as well as education tenants on their rights.

Councilwoman Gallego asked what the difference in the NPO was between single and multi-family properties. Mr. Hallett stated the NPO addressed any rental unit so everyone must abide by the standards. Councilwoman Gallego asked what education was being completed for the temperature standards. Mr. Hallett stated staff was working with the Arizona Multi-Family Association and attended the Landlord Tenant Forum quarterly to provide education. He also stated work was being completed in multiple languages as well.

Councilman DiCiccio asked if the ordinance limited the amounts of families in one

rental unit. Mr. Hallett stated the ordinance was on un-related families in one unit. Councilman DiCiccio commended staff on the slum properties and provided examples of how the process could be improved.

10. Future Agenda Items Councilwoman Gallego requested information on medical marijuana zoning

regulations. 11. Call to the Public None 12. Adjournment Chairwoman Gallego adjourned the meeting at 10:58 a.m. Respectfully submitted, Nick Valenzuela Management Intern


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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Moises Gallegos

Human Services Director

SUBJECT: HOMELESS UPDATE OCTOBER-DECEMBER

This report provides the Neighborhoods, Housing and Development (NHD) Subcommittee with an update on accomplishments and activities towards ending homelessness in the City between October 1 and December 31, 2015. THE ISSUE The City of Phoenix continues to emphasize a regional approach to ending homelessness through a comprehensive, collaborative Housing First philosophy. High priority populations including homeless veterans, chronically homeless families and individuals, and homeless youth are emphasized in the City’s response. The City’s efforts are summarized in three main strategies: I. Managing to the Numbers October – December 2015, 263 families; 315 single, non-veteran individuals; and 199 veterans were housed through the Maricopa regional homeless services delivery system. Homeless families and single individuals enter the homeless service delivery system in Maricopa County through two centralized access points. The Family Housing Hub (FHH) serves as the central point of entry for families. In calendar year 2015, the FHH fielded 19,755 calls and engaged 2,985 families. Of those families, 535 were diverted from the homeless service delivery system through mainstream resources and referrals. Another 2,036 families were referred into the homeless services system and 1,386 families entered programs. The Welcome Center (WC), located at the Maricopa County Human Services Campus is the central point of entry for single men and women. In 2015, 10,350 individuals came through the WC, and 8,152 individuals were assessed. Of those who came through, 61% utilized emergency or overflow shelter services on the Campus; 5% were connected to crisis services, and 16% did not engage in Campus services. Eighteen percent left to unknown locations. II. Starting in Our Own Backyard In December 2012, the Housing (HD) and Human Services Departments (HSD) partnered to allocate 75 Section 8/ Housing Choice Vouchers (HCV) and support services to seven non-profit organizations serving priority homeless populations


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including chronically homeless families and homeless youth. To date, 41 households are receiving housing and support services through this collaboration. In June 2013, the Department of Housing and Urban Development, Office of Public and Indian Housing (PIH) issued a Notice providing “guidance on housing individuals and families experiencing homelessness through the Public Housing and Housing Choice Voucher programs.” In January 2015, the City Council demonstrated their commitment to ending homelessness by being the first city in Maricopa County to establish a preference for chronically homeless individuals and families. HD and HSD partnered to procure and distribute combined housing and supportive service resources to the community. To date, 124 households are receiving housing and support services through this collaboration. III. Community Engagement MROP Partnership: Through collaboration between the Phoenix Police Department (PD), City Prosecutor’s Office, and HSD the Misdemeanor Repeat Offender Program (MROP) provides services, which both reduce crime and address core issues of homelessness. Through December 2015, 1,931 offenders were identified by the PD. Of those, 451 individuals were entered into the tracking system during the quarter, allowing patrol officers access to their history to assist them when they were encountered on the street. The City Prosecutor’s Office worked with 34 individuals through enhanced prosecution efforts, and five individuals received case management services through HSD or Southwest Behavioral Health. Frequent Utilizer System Engagement (FUSE): FUSE is a National demonstration project helping communities break the cycle of homelessness and crisis among individuals with complex behavioral health challenges who are the highest users of emergency rooms, jails, shelters, clinics and other costly crisis service systems. The Maricopa FUSE program is a collaborative effort between the City of Phoenix Fire, Human Services and Housing Departments, and two community-based organizations—Circle the City (CTC) and Southwest Behavioral Health (SWBH). To date, five medically vulnerable, chronically homeless individuals have been stabilized and housed through the innovative collaboration. Men’s Overflow Shelter (MOS) Transition: Since the inception of the MOS transition initiative in June 2014, the Collaborative, convened by Valley of the Sun United Way (VSUW), and composed of VSUW, Maricopa County, Arizona Department of Housing (ADOH), Arizona Department of Economic Security (ADES), and the City of Phoenix, successfully eliminated unsafe conditions at the MOS facility; opened safe, temporary overflow shelter services to meet immediate need; obtained and prioritized resources to permanently house up to 500 individuals; and initiated an in-depth examination of the service delivery system at the Human Services Campus. Collectively, the Collaborative has aligned and targeted more than $5 million in public and private resources, including $2.5 million of new funding to respond to the unmet need and support the transition to effective, sustainable housing solutions. As of December 2015, 184 individuals who were living on the streets or in temporary overflow shelter were housed, and another 103 individuals had completed the housing intake process and were in the process of searching for permanent housing.


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The Collaborative remains committed to ending homelessness through the development of a comprehensive, coordinated system of care with the capacity to meet the diverse needs of homeless persons with multiple barriers will be required for sustainability. In 2016, the Collaborative will focus its efforts on developing sustainable regional solutions in alignment with the updating of the Maricopa Continuum of Care’s Regional Plan to End Homelessness. Encampment Engagement Project: In April 2015, the Phoenix Human Services, Police, Neighborhood Services, and Public Works departments collaborated to address significantly increased neighborhood and business concerns related to homeless encampments in the downtown and central City areas. Together, the team developed a targeted engagement strategy utilizing their diverse areas of expertise to reconnect individuals living on the streets or in areas not meant for human habitation to services. In partnership with community based crisis intervention and outreach providers, the team works in coordination to eliminate homeless encampments and connect individuals to services through a combination of support, enforcement and abatement strategies. As encampments began to emerge in the City, the team mobilized resources to serve beyond the downtown core. As of the end of December 2015, more than 272 individuals in 70 encampments have been engaged in services. Forty-four encampments have been resolved and five individuals have been permanently housed. Dozens of others have entered shelters or enrolled in services in a positive step forward towards ending their homelessness. RECOMMENDATION This item is for information only.


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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler

Housing Director

SUBJECT: ADOPT AND SUBMIT ANNUAL AGENCY PLAN TO HUD, APPROVE CFP, AND AMEND HCV ADMIN PLAN AND ACOP

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend Assisted Housing Governing Board (AHGB) and City Council approve the Housing Department’s 2016-2017 Annual Agency Plan (AAP). Further, the Housing Department requests adoption of the 2016-2017 Capital Fund Program (CFP) and amended Section 8 Housing Choice Voucher (HCV) Administrative Plan and Admissions and Continued Occupancy Plan for Public Housing (ACOP). THE ISSUE The City of Phoenix Housing Department is required by federal regulation to develop and submit an Annual Agency Plan to the U.S. Department of Housing and Urban Development (HUD) each year. HUD also requires the Capital Fund Program application be included as part of the Annual Agency Plan. OTHER INFORMATION The Annual Agency Plan provides an overview of community needs and available resources, identifies methods to address the needs, and translates those methods into policies and programs. The Annual Agency Plan is a comprehensive guide to the Housing Department’s policies, programs, operations, and strategies for meeting local housing needs and goals. Items noted in the 2016-2017 AAP include:

• Changes in the public housing and Section 8 grievance policies; • Expansion of the Housing Department’s homeownership program; • Addition of project-based vouchers; and • Submit a Rental Assistance Demonstration Program application and Choice

Neighborhoods Planning and Action Grant application to HUD. The Capital Fund Program provides funding to upgrade, renovate, rehabilitate and improve the systems and structures of the Housing Department’s Public Housing properties. Approximately 800 apartments and single-family homes will be enhanced by these improvements. The Housing Department worked with a 13-member Resident Advisory Board (RAB) representing the Conventional, Senior, Scattered Sites and Section 8 Housing Choice Voucher programs to develop the Annual Agency Plan in January 2016. As required by federal regulation, the public was given a 45 day notice to provide comments. A public


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hearing will be held on February 11, 2016 to obtain input and comments from the public on the proposed Annual Agency Plan and Capital Fund Program. All comments and input received will be considered in the resulting Annual Agency Plan and Capital Fund Program. The Section 8 Housing Choice Voucher Administrative Plan and the Admissions and Continued Occupancy Policy will be amended to clarify and modify policies and to conform to changes in federal regulations and the Annual Agency Plan. Items to be amended in the 2016-2017 Section 8 Housing Choice Voucher Administrative Plan include:

• Expectation that the Section 8 Housing Choice Voucher waitlist will open during 2016 until sufficient applications have been received; and

• Implementation of making electronic Housing Assistance Payments (HAP) payments to Housing Choice Voucher Program landlords.

Copies of the plans are available at phoenix.gov/housing. RECOMMENDATION Staff requests NHD recommend Assisted Housing Governing Board and City Council approve the Housing Department’s 2016-2017 Annual Agency Plan and 2016-2017 Capital Fund Program and to submit the respective documents to HUD. Further, the Housing Department requests adoption of the amended Section 8 Housing Choice Voucher Administrative Plan and Admissions and Continued Occupancy Policy.


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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Chris Hallett

Neighborhood Services Director

SUBJECT: APPROVAL TO ISSUE A REQUEST FOR QUALIFICATIONS FOR CONTRACTORS TO PARTICIPATE IN NEIGHBORHOOD SERVICES DEPARTMENT HOUSING REHABILITATION PROJECTS

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to issue a Request for Qualifications (RFQ) to eligible contractors to participate as Housing Rehabilitation Contractors, receive bid opportunities, and perform construction services on Neighborhood Services Department (NSD) Housing Rehabilitation projects. THE ISSUE Housing Rehabilitation programs enhance the quality of life for low to moderate-income residents by rehabilitating single-family and multi-family housing units while addressing health and safety hazards, promoting conservation, suitability, and energy efficiency to help support and revitalize communities. The RFQ will establish a Housing Rehabilitation Qualified Vendors List (QVL) for eligible Housing Rehabilitation Contractors to receive bid opportunities to perform construction services on NSD Housing Rehabilitation projects. Contractors will be screened and qualified on an individual basis to determine compliance with eligibility requirements outlined in the NSD Housing Rehabilitation Contractor Application Packet. Each project will be competitively bid among the qualified and eligible contractors. The QVL will ensure NSD has access to eligible contractors to achieve program goals and to remain in compliance with Federal regulations as well as the City’s procurement process. In addition, the QVL will provide contractors with an opportunity to participate in Housing Rehabilitation programs Housing Rehabilitation projects are funded with approximately $9.5 million in grant allocations from the U.S. Department of Housing and Urban Development (HUD), the U.S. Department of Energy (DOE), local utility providers, and the Arizona Community Action Association. OTHER INFORMATION Interested contractors may apply, and if approved, will be added to the QVL. Notification of potential construction contracting opportunities will be distributed to eligible Small Business Enterprise (SBE) contractors registered with the Equal Opportunity Department, and to other interested parties through the City’s solicitation webpage. NSD makes no guarantee as to the number of bid opportunities or awarded bids that will be made to contractors on the QVL.


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RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval to issue an RFQ for eligible contractors to participate as Housing Rehabilitation Contractors, receive bid opportunities, and perform construction services on NSD Housing Rehabilitation projects.


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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Chris Hallett

Neighborhood Services Director

SUBJECT: CDBG HOUSING COUNSELING AND NEIGHBORHOOD REVITALIZATION REQUEST FOR PROPOSALS RESULTS

This report requests the Neighborhood, Housing and Development (NHD) Subcommittee recommend City Council approval of the 2015-16 Community Development Block Grant (CDBG) Housing Counseling and Neighborhood Revitalization program award recipients. THE ISSUE The Housing Counseling program provides comprehensive housing counseling services to assist homebuyers and homeowners who meet the U.S. Department of Housing and Urban Development’s (HUD) income eligibility criteria of 80 percent or less than the area median income. Similarly, the Neighborhood Revitalization program provides comprehensive revitalization services to low- and moderate-income residents of Phoenix. The Request for Proposals (RFP) was issued on December 18, 2015, and proposal submissions were due on January 15, 2016. Proposals were reviewed by a panel composed of staff from the Neighborhood Services and Housing departments. Each proposal was rated on a 160-point scale based on criteria such as proposed outcomes, business history with federally funded programs, and program budget. A total of three organizations will receive funding to provide Housing Counseling services, and two organizations will receive funding to provide Neighborhood Revitalization services. Based on the ratings, staff recommends CDBG funds be disbursed as follows:

HOUSING COUNSELING

Community Housing Resources of Arizona $45,000

Trellis $40,000

Newtown Community Development Corporation $20,000

TOTAL $105,000

NEIGHBORHOOD REVITALIZATION


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OTHER INFORMATION The RFP sought respondents who could provide housing counseling services in four priority areas:

• Pre-Purchase Housing Counseling & Homebuyer Education • Homebuyer Re-entry, Credit Improvement & Debt Reduction Strategies • Mortgage Default, Foreclosure Prevention and Predatory Lending Mitigation

Counseling • Non-Delinquency, Post-Purchase Counseling and Financial Management

Additionally, the RFP also sought respondents who provide major and minor single-family, owner-occupied rehabilitation and home accessibility modification services for physically-disabled individuals. RECOMMENDATION This report requests the NHD Subcommittee recommend City Council approval of the 2015-16 CDBG Housing Counseling and Neighborhood Revitalization program award recipients.

FSL Home Improvements $130,000

Ability360 $75,973

TOTAL $205,973


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CITY COUNCIL REPORT

TO: Deanna Jonovich

Deputy City Manager

FROM: Cindy Stotler

Housing Director

SUBJECT: AWARD OF FEDERAL HOME FUNDING FOR AFFORDABLE RENTAL HOUSING DEVELOPMENT PROJECTS

This report requests the Neighborhoods, Housing and Development (NHD) Subcommittee recommend City Council approval to loan and disburse federal HOME Investment Partnerships Program (HOME) funds to assist in the development of affordable rental housing projects. THE ISSUE On November 6, 2015, the Housing Department (HOU) issued a Call for Interest (CFI) seeking proposals for the private acquisition, rehabilitation and/or new construction of affordable rental housing for the Affordable Housing Community Priorities approved by City Council on September 30, 2015. The HOME funds are awarded to private developers seeking gap financing for construction costs. Eight proposals were received; two proposals did not meet the minimum threshold criteria and the remaining six proposals were reviewed by an Evaluation Committee made up of City staff and community members. All six projects were selected by the Evaluation Committee for funding recommendations based on funding availability and scoring. One additional project, Rosewood Court I, previously submitted and approved under the 2014/15 CFI is included in this recommendations for funding. Funding for all seven projects is based on current available and future allocations of HOME funding, and is pending full underwriting, environmental release of funds, commitments of other financing, availability of federal funds and City Council approval. The overall loan structure will be consistent with HOU Underwriting Guidelines for affordable rental housing projects. Other anticipated financing for the projects (except for Rosewood Court I) include nine percent Low Income Housing Tax Credit equity investment. OTHER INFORMATION The projects recommended for funding allocations are:

1) Camelback Pointe, to be located at 1537 W. Camelback Road (District 4), will consist of 54-units in an affordable multi-family housing complex that will serve chronically homeless individuals. Native American Connections (NAC), a certified Community Housing Development Organization (CHDO), requested $1,259,728 in federal funding to assist with the development of two (2) three-story buildings. The community will be comprised of 54 studio bedroom units and will serve


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households with incomes below 60 percent of the Area Median Income (AMI). All of the units will serve homeless individuals. Supportive services will be provided by NAC and will include educational/vocational opportunities, weekly support groups, recreational and socialization opportunities, life skills, as well as access to outpatient services. The estimated total development cost of Camelback Pointe is $11,437,510.

2) Northern Gardens II, to be located at 2223 W. Northern Avenue (District 5), consists of the construction of a 68-unit affordable multi-family housing complex that will serve low income senior and disabled individuals. Northern Gardens II/Phoenix LP, a subsidiary of WESCAP, requested $1,500,000 in federal funding to assist with the development of one (1) three-story building. The community will be comprised of 53 one-bedroom units and 15 two-bedroom units and will serve households with incomes below 60 percent of the AMI. At least 15 of the units will be set aside for disabled persons with mobility and/or sensory impairments. Supportive services will be provided by USA Housing, Inc., and will include transportation, financial literacy, computer training, job training, wellness classes, community celebrations, cooking classes, gardening classes and exercise classes. The estimated total development cost of Northern Gardens II is $21,670,589.

3) Rosewood Court II, to be located at 5107-5121 N. 16th Avenue (District 4),

consists of the construction of a 35-unit affordable multi-family housing complex that will serve low income senior and disabled individuals. Rosewood Court II Associates LP, a subsidiary of Catholic Charities Community Services, Inc. and Domus AZ LLC, have requested $700,000 in federal funding to assist with the development of three, three-story buildings. The community will be comprised of 30 one-bedroom units and five two-bedroom units to serve households with incomes below 60 percent of the AMI. At least five units will be set aside for persons with disabilities. Supportive services will be provided by Catholic Charities Community Services and will include computer training, transportation, financial literacy, health and wellness classes and support groups. The estimated total development cost of Rosewood Court II is $8,472,325.

4) Rosewood Court I, to be located at 5102-5118 N. 16th Drive (District 4), consists of the construction of a 50-unit affordable multi-family housing complex that will assist low income residents and veterans. Rosewood Court Associates LP, a subsidiary of Catholic Charities Community Services, Inc. and Domus AZ LLC, will be the borrower. The community will be comprised of one, two, and three- bedroom units, and at least eleven units will be set-aside for veterans. Catholic Charities Community Services will provide supportive services. On February 17, 2015 Rosewood Court I, was recommended for funding in the amount of $1,100,000 by the NHD Subcommittee through the 2014/15 CFI. Request for Council action was withdrawn upon the project not receiving Low Income Housing Tax Credits (LIHTC). However, in an appeal, the applicant was later awarded LIHTC and has requested the original $1,100,000 and an additional funding in the amount of $350,000, for a new total funding amount of $1,450,000. The estimated total development cost of Rosewood Court I is $13,420,818.

5) The Gateway Apartments (District 8) will consist of a 48-unit affordable multi-family housing complex that will serve low income residents. G.A. Haan


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Development LLC, requested $500,000 in federal funding to assist with the development of a four-story building. The 48 units will be comprised of two- and three-bedroom units and will serve households with incomes below 60 percent of the AMI. At least five units will be set aside for victims of domestic violence. Supportive services will be provided by the Phoenix Revitalization Corporation and will include crisis counseling, legal services, support groups, advocacy, computer training, job training, financial literacy, nutrition classes, benefits specialist and service coordinator. The estimated total development cost of the project is $11,430,784.

6) El Caro Senior, to be located at approximately 21st and Northern Avenues (District 5), consists of the construction of a 102-unit affordable multi-family housing complex that will serve low-income seniors. Gardener Capital Development Arizona LLC, requested $650,000 in federal funding to assist with the development of three, three-story buildings. The community will be comprised of one- and two-bedroom units and will serve households with incomes below 60 percent of the AMI. At least four units will be set-aside to meet the affordability and rental restrictions of the HOME Program. Twenty-five percent of the units will be set-aside for persons with developmental and physical disabilities. Supportive services will be provided by United Cerebral Palsy of Central Arizona (UCP). The estimated total development cost of El Caro Senior is $18,050,557.

7) El Caro Homes, to be located at approximately 21 and Northern Avenues (District 5), consists of the construction of 50 units of affordable single family rental housing. Gardener Capital Development Arizona LLC, requested $750,000 in federal funding to assist with the development of 51 one-story buildings. The community will be comprised of 50 three-bedroom units and a community center, and will serve households with incomes below 60 percent of the AMI. At least two units will be set-aside to meet the affordability and rental restrictions of the HOME Program. Twenty-five percent of the units will be set-aside for persons with developmental and physical disabilities. Supportive services will be provided by UCP. The estimated total development cost of El Caro Senior is $19,038,853.

The HOME funds loan disbursement for the proposed projects totals $6,809,728 and yields approximately $103,521,436 in potential investment for the delivery of affordable rental housing projects to serve Phoenix low income residents. RECOMMENDATION This report requests the NHD Subcommittee recommend City Council approval to loan and disburse federal HOME funds to assist in the development of the affordable rental housing projects.


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CITY COUNCIL REPORT

TO: Mario Paniagua

Deputy City Manager

FROM: Alan Stephenson

Planning & Development Director

SUBJECT: ADD POSITIONS IN PLANNING & DEVELOPMENT DUE TO INCREASED CONSTRUCTION ACTIVITY

This report provides an update to the Neighborhoods, Housing and Development (NHD) Subcommittee regarding development activity and requests the NHD Subcommittee recommend City Council approval of an associated increase of 19 positions to the base staff level in the Planning & Development Department. THE ISSUE From 2007 through 2009, the Department reduced staff in proportion with the historically low level of development and construction during the recession. The Department eliminated approximately two-thirds of its positions and was created by combining the Planning and Development Services departments with the Historic Preservation Functions to create the Planning and Development Department (PDD). Since that time, development has steadily increased, with a more rapid increase in the last six months as shown in Attachment A. Examples of increases over the previous year include:

• Customer visits to the Development Center have increased 25 percent as shown

in Attachment B, resulting in increased wait times at counters that sometimes

exceed one hour;

• Site pre-application submittals, an indicator of future activity are up 30 percent;

• Total permit valuations, an indicator of the complexity of projects have increased

33 percent;

• Residential permit submittals have increased while staff support has not matched

the volume as shown in Attachment C;

• Residential inspections have increased by 20 percent;

The recent increase in workload in all of these areas has made it difficult for PDD staff to meet customer service expectations and target plan review and inspection time frames. Turnaround times are extremely important to PDD customers, and it is important that an effective combination of contractors and staff be in place to ensure development activity is not negatively impacted. Attachment D outlines the 19 proposed positions that PDD is requesting to meet the current demands and activity levels. OTHER INFORMATION The department expanded the use of contract staff for plan review, inspections as well as temporary administrative staff, spending more than $4.5 million for plan review and inspections in the last 18 months, as shown in Attachment E.


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With the improving economy, on-call contractors are finding it difficult to provide trained reviewers and inspectors for our highly technical positions. As a result, plan review time frames and inspection carryovers are increasing. Contract services will continue to be utilized at increasing levels as is feasible, along with the increases to staffing. Both city and contract staff receive extensive training to ensure technical proficiency, consistency, and quality customer service. While this investment in city staff pays dividends for many years, the much greater turnover in contract staff requires continuous training of new contractors. Contract staff is beneficial to help sustain and prepare for market fluctuations, and City staff provides retained institutional knowledge, consistency and increased customer service. The Department will continue to maintain an optimal balance of staff and contractors with the addition of these positions. The development community has frequently expressed their preference for city reviewers and inspectors on their projects over contractors due to increased consistency and predictability. The intention is to use this additional 19 staff to meet 70 to 80 percent of the increased workload we have already experienced. Contract staff will be used to meet the remaining 20 to 30 percent, plus additional growth in the coming year. This approach allows flexibility in addressing workload fluctuations to meet customer demands in an efficient manner. RECOMMENDATION Staff requests the NHD Subcommittee recommend City Council approval of an associated increase of 19 positions to the base staff level in the Planning & Development Department. Attachments Attachment A: Total Permits and Valuation Attachment B: Development Center Customers Attachment C: Residential Permits Issued & Number of Plan Reviewers Attachment D: Proposed Additional PDD Positions Attachment E: Contract Plan Review and Inspections Spending


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Attachment A Total Permits & Valuation

Source: KIVA report


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Attachment B

Development Center Customers

Source: QMatic report


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Attachment C Residential Permits Issued & Number of Plan Reviewers

Source: KIVA report


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Attachment D

Proposed Additional PDD Positions Position Need Plan Review Coordinator Train staff, coordinate workload and improve

consistency of civil plan reviews (2) General Inspector II Inspect residential construction activity (2) Construction Permit Specialist II Review residential plans and assist customers at the

residential counter Planner I Assist residential customers at the site planning

counter with plan submittal Planner II Review lot splits and combinations and serve as

Abandonment Coordinator due to the increased complexity and public involvement in abandonment process

Planner III Manage site planning counter operations, coordinate master plans and supervise landscape plan review and permitting

Electrical Plans Examiner II Review solar photovoltaic systems and electrical services for complex custom homes

Traffic Engineer II Provide traffic and parking review for new projects, attend pre-application and preliminary site plan meetings and answer traffic related questions at the public service counter

Plumbing/Mechanical Inspector II Inspect commercial construction activity (3) Senior Engineering Technician 1. Provide complicated project fee estimates, create

building permits for major commercial teams, conduct project research for plan review staff, and provide continuous tracking of major commercial projects to assist Team Leaders in keeping projects on target. 2. Address increased plan submission and payment activity at Payments and Submittals counter. 3. Review plot plans for new homes and swimming pools.

(2) Administrative Assistant I 1. Supervise seven Engineering Technicians responsible for routing of site plan and other submittals, processing final plats, plan review notification, and counter coverage. 2. Provide inspections administrative support for vehicles, cell phones, website management and KIVA assistance and training.

(2) Engineering Technician Address increased plan submission and payment activity at Payments and Submittals counter

Records Clerk II Provide overall support for records retention, volume increases as result of increased development activity, and increases in scanning workload, and in volume of Public Records requests


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Attachment E Contract Plan Review & Inspections Spending

Source: Budget report


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CITY COUNCIL REPORT

TO: Mario Paniagua

Deputy City Manager



SUBJECT: ZONING ORDINANCE TEXT AMENDMENT Z-TA-3-15 REGARDING TOBACCO-ORIENTED RETAILERS

This report provides information to the Neighborhoods, Housing and Development (NHD) Subcommittee on a Zoning Ordinance Text Amendment regarding tobacco-oriented retailers. Staff requests the NHD Subcommittee recommend City Council approval of the Zoning Ordinance Text Amendment Z-TA-3-15 as shown in Attachment A. THE ISSUE The purpose of the proposed text amendment is to update the tobacco-oriented retailer definition to include electronic nicotine delivery systems and narrow the exemptions for building area and floor space. The amendment will also increase the separation between parks, schools, and public recreation centers to 1,320 feet. There is an increased public concern regarding the proximity of this use to places where youth may congregate. The new language will also reduce the percentage of floor space that will be exempted from the definition for tobacco-oriented retailers The second request would remove the reference within the Zoning Ordinance regarding building separation between buildings on a lot. This is an issue currently addressed by the adopted Building Code and removing this from the Zoning ordinance will eliminate duplicate regulations.

OTHER INFORMATION The Planning Commission initiated this amendment on May 12, 2015. Twelve Village Planning Committees (VPC) have heard this request. Eight of the VPCs have approved as proposed by staff, four approved with modifications (Attachment B). The Planning Commission heard this case on February 4, 2016 and recommended approval per staff recommendation. RECOMMENDATION Staff requests that NHD Subcommittee recommend City Council approval of Zoning Ordinance Text Amendment Z-TA-3-15 as shown in Attachment A. Attachments:


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A: Zoning Ordinance Text Amendment Proposed Language for Oriented Retailer B: Village Planning Committee Recommendation Summary C: Planning Commission Minutes Excerpt D: Staff Report


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Attachment A

Zoning Ordinance Text Amendment Proposed Language for Tobacco Oriented Retailer

Proposed Language Amend Chapter 2, Section 202 (Definitions) by amending the following definition as follows: Theaters: A building or part of a building devoted to showing motion pictures, or for dramatic, dance, musical, or other live performances.

Tobacco Oriented Retailer: An establishment engaged in the sale and/or display of tobacco related products, including, but not limited to: cigarettes, chewing and dipping tobacco, cigarette papers, ELECTRONIC NICOTINE DELIVERY SYSTEM, or any other instrument or paraphernalia for the smoking or ingestion of tobacco and products prepared from tobacco. This includes uses such as, but not limited to, a cigar store, head shop, or hookah lounge, OR VAPE LOUNGE. A tobacco oriented retailer shall MUST not include any establishment over 10,000 square feet in gross floor area, or any establishment devoting less than 155 percent of its floor space to the sale/display of tobacco related products. Tourist Court: Same as “Motel”.

*** Amend Chapter 6, Section 623.D (Commercial C-2 District—Intermediate Commercial, Permitted Uses) as follows:

***

189. Tire Repairing Equipment and Supplies 190. Tobacco oriented retailers, subject to the following limitations: a. Shall not be located within 500 feet of the same type use. b. Shall not be located within 500 1,320 feet of a public, private, or charter

school providing primary or secondary education, a park or playground, or a licensed daycare facility, OR RECREATION CENTER.

191. Tobacco, Wholesale and Storage

***

Amend Chapter 7, Section 706 (Accessory Uses and Structures) as follows:

***


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B. All detached accessory structures in the side and rear yard, not used for sleeping or

living purposes, are to maintain a minimum setback of three feet from property lines and six feet between structures on the same lot. Swimming pools are to maintain a minimum setback of three feet from exterior property lines.

C. All accessory structures located within the required side yard are not to exceed eight

feet in height.


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Attachment B Village Planning Committee Recommendation Summary

TA-3-15 Amending Tobacco Oriented Retailers to include electronic nicotine delivery systems, increase spacing, etc.

Village Date Recommendations Vote

Ahwatukee Foothills 1/25/2016 Approved with modification to revise the definition to make it clearer

14-0

Alhambra 1/26/2016 Approved 11-0

Camelback East 1/5/2016 continued to 2/2/16

Central City 1/11/2016 Approved with modification to change “electronic nicotine delivery system” to “electronic cigarette” or “electronic vaporizer”

16-0

Deer Valley 1/21/2016 Approved per staff recommendation 9-0

Desert View Chair chose not to hear item N/A

Encanto 1/4/2016 Continued to 2/1/16 to seek input from small businesses

Estrella 1/19/2016 No quorum

Laveen 1/11/2016 Approved with modifications 7-0

Maryvale 1/13/2016 Approved per staff recommendation 11-0

North Gateway 1/14/2016 Approved per staff recommendation 3-0

North Mountain 1/20/2016 Approved per staff recommendation 10-1

Paradise Valley 1/4/2016 Approved staff recommendation with additional recommendation that spacing between similar uses increases to 1,320 feet

11-0

Rio Vista 2/11/2016 Upcoming action requested

South Mountain 1/12/2016 Approved with comment to define "electronic nicotine delivery system" separately and one member thought 1,320-foot spacing seems excessive

12-1


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CITY COUNCIL REPORT

TO: Mario Paniagua

Deputy City Manager



SUBJECT: UPDATE ON MEDICAL MARIJUANA REGULATIONS

This report provides an update to the Neighborhoods, Housing and Development (NHD) Subcommittee and requests direction for Text Amendment to the Zoning Ordinance to strengthen medical marijuana regulation for dispensaries, cultivation and infusion facilities for medical marijuana. THE ISSUE The voters of the State of Arizona passed the Arizona Medical Marijuana Act (AMMA), Proposition 203, on November 2, 2010. In an effort to ensure patient access, Arizona Department of Health Services (ADHS) limited the number of registered dispensaries according to geographic regions referred to as Community Health Assessment Areas (CHAA). CHAAs were initially developed by ADHS using census data to divide the population by location and density. Because of this, more densely populated areas have more CHAAs. ADHS allowed one (1) dispensary registration certificate to be issued per CHAA. Qualifying patients who register with the ADHS will be able to obtain medical marijuana from nonprofit dispensaries licensed by ADHS. The law limits the number of facilities based on licensed pharmacies within the State of Arizona. The City of Phoenix established medical marijuana regulations in 2010, prior to the final rules adopted by the state. The State of Arizona rules allow for a dispensary to move locations within their CHAA at any time and outside of their CHAA, to anywhere in the state, after three years of operation (R9-17-306.B.1.a). Because the majority of dispensaries operating in Arizona were issued certificates in 2012, most are now eligible to relocate. August 2015 was the first time when dispensary certificate holders could move outside of the assigned areas. In order to relocate, a medical marijuana dispensary must do the following:

• complete an application with ADHS • submit copies of use/occupancy permits issued by local jurisdictions • submit an attestation that the location meets local zoning requirements • submit a detailed site/ floor plan, and • pay a $2,500 fee

The time frame for ADHS to process a location change is 90 days from the day all required materials are submitted. OTHER INFORMATION The City of Phoenix requires all medical marijuana facilities to obtain a use permit through a public hearing. Medical marijuana dispensaries are allowed in C-2


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(Intermediate Commercial), C-3 (General Commercial), A-1 (Light Industrial), and A-2 (Industrial). Medical marijuana cultivation and infusion sites are allowed in S-1 (Ranch or Farm – Residence), S-2 (Ranch or Farm – Commercial), A-1, and A-2. There are spacing requirements from other medical marijuana facilities, whether dispensaries, cultivation or infusion sites, from residential zoned properties, from schools, parks, playgrounds, and from places of worship. Attachment A includes a table that shows the requirements in comparison with other large jurisdictions in Arizona, and Attachment B indicates the total number of each existing type in the Phoenix area. RECOMMENDATION Staff requests direction from the NHD Subcommittee on a Text Amendment to the Zoning Ordinance to strengthen medical marijuana regulations for dispensaries, cultivation and infusion facilities. Attachments: A: Summary Medical Marijuana Regulations- Arizona Jurisdictions B: Types of Medical Marijuana Facilities in Phoenix


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Attachment A Summary of Existing Medical Marijuana Local Regulations- Arizona Jurisdictions

Jurisdiction Hours of Operation

Distance between Medical Marijuana facilities Size

Distance from Day Care Facility

Distance from Church/Worship

Distance from School

Distance from Public Library or Park

Distance from Residential Districts

Phoenix 8 am - 7 pm 5280 ft.

2000 sq. ft. net area for

Dispensary only and does not have a size limitation on other MMJ types. NONE 500 ft. 1320 ft. 1320 ft.

250 ft. from

Dispensary/1000 ft. from

Cultivation and Infusion

Flagstaff 8 am - 7 pm 2000 ft.

250 sq. ft. max (caregiver cultivation) 500 ft. NONE 500 ft. 500 ft. NONE

Peoria 8 am - 7 pm 2640 ft. NONE 1000 ft. NONE 1000 ft. NONE 500 ft.

Surprise NONE 3000 ft. 2500 sq. ft. gross

max 1500 ft. 500 ft. 1500 ft. 1500 ft. 500 ft.

Tucson 9 am - 7 pm 2000 ft.

2500 sq. ft. dispensary 3000 sq. ft. cultivation 250 sq. ft. caregiver 1000 ft. 1000 ft. 1000 ft. 1000 ft. NONE

Tempe 8 am - 6 pm 1320 ft. NONE 1320 ft. 1320 ft. 1320 ft. 1320 ft. 500 ft.

Scottsdale 6 am - 7 pm 1320 ft. NONE NONE NONE 500 ft. NONE 500 ft.

Maricopa County NONE 1500 ft. NONE 1500 ft. 1500 ft. 1500 ft. 1500 ft. NONE

Pima County

9 am - 5 pm 2000 ft.

2000 sf dispensary

2000 cultivation 250 sq. ft. caregiver 1000 ft. 1000 ft. 1000 ft. 1000 ft. NONE


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Attachment B

Types of Medical Marijuana Facilities located in Phoenix

Type of Facility

Number of facilities

Dispensaries

10

Cultivation (only)

8

Infusion (only)

0

Combination (dispensary and cultivation)

4

Combination (dispensary, cultivation, and infusion)

4

Combination (cultivation and infusion)

8

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