Fact Sheet Responses

Fact Sheet  (extracted from People for Progress)  Response in red.

AFFORDABLE HOUSING PLAN

If I vote in favor of the affordable housing plan will my taxes increase?

• No. There is no taxing authority attached to the City of Clovis’ Affordable Housing Plan

All money the City uses comes from your taxes. When funds are diverted from other line items in the City Budget, taxes are being used, and line items will need to be replenished from taxes.  It can increase taxes.

Where can I obtain a copy of Clovis’ Affordable Housing Plan (AHP)

• At www.cityofclovis.org or at Clovis City Hall, 321 Connelly Street

Read it.  Especially the parts about achieving the goals of the HPO (Housing Planning Organization)  

Which income groups does Clovis’ Affordable Housing Plan address?

• Residents earning up to 100% of Area Median Income (AMI) ($46,300) and the essential workforce who earn up to 120% of Area Median Income (AMI) ($55,550) which includes the majority of Cannon Air Force Base personnel.

The AHP does not address the income limitations imposed by the Low Income Housing Tax Credit allocation program which applies to the Hotel Clovis.  These limits vary from 40% of AMI ($18,500) to 60% AMI ($27,780). (Letter from Joseph Montoya of NM MFA). 

How long has the City of Clovis been encouraging Affordable Housing?

The City of Clovis’ 1992 Comprehensive Plan Implementation states:
“The most critical actions are those needed to protect the health and safety of the citizen within the community, such as….housing stabilization in the center of the City”

The City of Clovis’ 2007 Comprehensive Plan recommends the city should: “Develop new affordable housing within the City and coordinate with Community Housing Development Organizations that may be interested in working to construct affordable housing in the community.

Since 1992 is a long time.  The Affordable Housing Plan does not make housing affordable to everyone.  It pays developers to provide housing for income restricted groups while undermining developers who build housing for the rest of the people. 

The City of Clovis should identify City-owned lands that can potentially be used for affordable housing.  The city already sells units that are city owned to charitable groups at nominal fees which then rehabilitate these properties into affordable units.  The AHP off shoot, the Housing Planning Organization is tasked with finding tools for the city to acquire privately held property for this purpose = use of eminent domain. 

Explore establishing community-based programs for clean up and/or minor improvement to existing housing.   Programs should be developed which encourage private entities to cooperate with housing owners not ones which implement more government regulation over your property.  Spend money fixing up your home and you may incur income restrictions which limit those you can buy it in the future.

Ensure that current housing stock is maintained in a safe condition”  This is the current job of code  enforcement and building safety. 

Does Clovis’ Affordable Housing Plan (AHP) mandate that all future developments should include affordable housing (also known as “inclusionary zoning”)

• There is no requirement in the City of Clovis’ AHP or ordinance for inclusionary zoning or that any/all future developments be mandated to contain an affordable housing component

This practice may be recommended by the HPO as a tool to reach its goals for the city.  Upon recommendation, the city can mandate the inclusion of low income units in every development.  This practice is what Santa Feans are now fighting against. 

What other communities in New Mexico have or are working on Affordable Housing Plans?

• Alamogordo, Albuquerque, Carlsbad, Farmington/San Juan County, Gallup, Hobbs, Los Alamos, Mesilla, Santa Fe County, Santa Rosa, Silver City, Las Vegas, Lea County, Portales, Taos

Free money is always the temptation offered which allows more government oversight in your community.   It runs the government into debt, while destroying the free markets and private enterprise.  Santa Fe is a disaster.  

Are all New Mexico’s Affordable Housing Plans the same?

·         The format is similar but their goals and objectives are different because the needs of each community are different.

The AHP for Clovis was developed without public input or oversight.  At the time the ordinance was passed, only one Commissioner had read it.  It represents an agenda that only a very small group of people want for the city.  Its focus is rental housing with only two mentions of making home ownership affordable.

What are the Goals and Objectives of Clovis’ Affordable Housing Plan?

1. Increase the supply of affordable rental housing for households earning between 30% to 120% of area median income by working with local/regional developers regarding the need for affordable rental property, communicating funding needs relating to rental construction to area banks, and seeking the reduction of permitting fees for rental developments. This enables a developer to construct units which will bring a profit to them for years to come, while hindering the developer of homes for sale and raising those costs.  City owned lots obtained through condemnation or foreclosure may be donated or sold to a non-profit builder/developer based on the specific income group served. This is already done without the AHP.  Donations reserved for groups serving families earning below 80% of AMI (i.e. Habitat for Humanity). The Affordable Housing Plan seeks to promote infill development of rental housing throughout the city.  Those units will remain restricted by deed to rental or low income families in the future despite the makeup of that neighborhood,

2. Increase and encourage the number of housing renovations and weatherization programs for housing within the 30% to 80% area median income ranges by coordinating with Eastern Plains Housing Development Corporation to expand their rehabilitation program, encouraging non-profits to commence major and minor renovations for eligible households, (this may be done, and should be done, without the AHP – but other private for profit groups should be included in the effort) and to work to reduce permitting fees for affordable housing rehabilitation (already done by the city and can be expanded) and weatherization programs for households earning between 30% and 80% of Area Median Income. Why not the rest of the households? 

3. Promote development of infill housing for single-family and multi-family homes within the 30% to 80% AMI ranges. There are many vacant lots in the older areas of town. These lots will be mapped by the city and shared with local developers and not for profit groups interested in building in these areas. Incentive programs will be created to encourage re-growth in older areas of the community. And what if you don’t want to sell your lot?  This introduces housing that will be rental housing into areas of homes occupied by their owners.  Not necessarily a benefit to neighbors.

4. Ensure adequate provision is made for housing special needs groups. The City of Clovis will continue to work with and support developers seeking to construct special needs housing for the disabled, seniors and homeless. The City will create a list of area homeless providers for use by area organizations and by the United Way 211 hotline.   This is a good idea, and a simpler plan to incorporate it might help. 

5. Increase affordable single-family homeownership opportunities in Clovis by developing a program where City-owned lots may be donated or sold to non-profit developers serving the 50% to 120% Area Median Income. A program will be developed where building permit fees and sewer connection fees may be reduced or waived for developers of affordable housing. City will conduct a review of the current density requirement and seek to make the City’s zoning code more user-friendly.

These words also mean that zoning densities may be increased so that homes can be built on smaller lots, closer together, and that green space requirements may be waived so that it’s cheaper for the developer.  The impact of increased density areas is not being studied, nor is any viable city planning being done by those with credentials in the field.  This could be a disaster coming to your neighborhood.

How long has the City of Clovis owned the Hotel Clovis?

• The Hotel Clovis was constructed in 1931, and the City acquired this historically significant Art Deco building in 2003.  This last acquisition was upon default by Smiley Gallegos.  Remember? 

When did the City approve a developer for the revitalization of the Hotel Clovis?

• Tierra Realty Trust LLC was approved to re-develop the Hotel Clovis by the Clovis Commission in June 2009.   This is true.  He rose to popularity with the MFA under Bill Richardson’s administration, and had favor here also. 

How will the redevelopment of the Hotel Clovis and adjoining new housing be funded?

The Developer has secured 80% of the development’s funding in the form of an equity investment (cash) from a private investor. In return for this equity investment, the investor will receive Section 42 Affordable Housing tax credits and Section 47 Historic Preservation tax credits from the IRS. The tax credit market has fallen since 2008 and tax credits now sell for 75 cents on the dollar rather than 95 cents. Investors who purchase Section 42 and Section 47 tax credits include Home Depot, Berkshire Hathaway, Bank of America, etc.  On Monday, July 18, Joseph Montoya of MFA said that the tax credits were currently valued at 90%.  Tax credits may be the reason the feds are going broke and your taxes are being raised. 

The remaining 20% of the Development funding is sourced by New Mexico Sustainable Building Tax Credits, secondary loans secured by the Developer, and up to $1.4 million in loans/grants from the City of Clovis to cover the shortfall in the tax credit pricing from 95 cents to 75 cents. The City’s loan/grant was approved in a November 2010 Commitment Letter from the City to the Developer. The Affordable Housing Plan will allow the city to transfer and grant funding to the redevelopment. Developer is also required by the City Commission to seek other loans/grants to reduce the city’s financial participation. Developer has since identified a $400,000 grant, and city has identified a $200,000 grant. The development will generate more than $600,000 in gross receipts tax and more than $15,000 annually in property taxes. The development will generate more than 155 jobs during redevelopment, and 30 retail jobs following redevelopment.   The developer gains a property using tax money but does not have to pay back the city’s loan if he doesn’t make a profit.   How much profit do you think he will show on his taxes annually? 

Is the Hotel redevelopment HUD Housing?

• The redevelopment is affordable housing and not HUD housing. People earning up to 60% of Area Median Income may live there. There will be 31 loft apartments in the Hotel, retail and restaurant space, and a daycare. To the south and east of the Hotel there will be 29 apartments. 

HUD provides a housing income source to those with lower income.  It may or may not be being used for those who rent units in the Hotel Clovis.

How much will it cost the Clovis Taxpayer to tear the Hotel Clovis down?

• In 2009 GranCor Enterprises, Inc. estimated more than $2,000,000 to tear the building down. In 2010 GWC Construction quoted more than $2,000,000 to tear the building down, not including removal of the debris.  This is true. 

Has any other company submitted a workable solution to renovate the Hotel Clovis since the City took possession of the building in 2003?

• Tierra Realty has been the only developer to come forward with a workable solution to redevelop this portion of the downtown area.

According to the developer who had an interest prior to 2009, the working relationship between Tierra Realty and MFA needs closer scrutiny. 

If Clovis’ residents approve the affordable housing plan and the building is transferred to the developer will the City of Clovis be liable for the building?

• The City of Clovis will no longer own or be liable for the Hotel Clovis

Unless the developer defaults or has problems with the project, then it will become a problem for the city again.  Isn’t that what happened last time?