Charlotte City Council
Housing and Neighborhood Development Committee
Summary Meeting Minutes
March 21, 2007
COMMITTEE AGENDA TOPICS
I.
Foreclosures & Predatory Lending – Council Priority
(Attachment A)
II.
Neighborhood Councils
(Attachment B)
COMMITTEE INFORMATION
Council Members Present:
Michael D. Barnes, Susan Burgess, Anthony Foxx, Don Lochman, and
Pat Mumford
Council Members Absent:
None
Staff Resource:
Julie Burch, Assistant City Manager
Staff:
Stanley Watkins, Neighborhood Development
Richard Woodcock, Neighborhood Development
Stephanie Small, Neighborhood Development
Cynthia Woods, Neighborhood Development
Pamela Lopez, Neighborhood Development
Debra Campbell, Planning
Meeting Duration: 1: 45 p.m. – 3:00 p.m.
ATTACHMENTS
1.
Agenda Packet – March 21, 2007
Housing and Neighborhood Development Committee
Meeting Summary for March 21, 2007
Page 2
DISCUSSION HIGHLIGHTS
I. Foreclosure and Predatory Lending
Richard Woodcock gave a brief overview of the information on foreclosures that was
presented at the March 7, 2007 Housing and Neighborhood Development Committee
meeting. Mr. Woodcock noted a 27 percent state wide increase in foreclosure rates over
the last five years, and a 62 percent increase in Mecklenburg County. He added that the
actual number of foreclosures in Charlotte jumped from 1,810 in 2005 to 2,245 in 2006.
Richard Woodcock explained that pre-ownership counseling is required by City sponsored
homeowner programs and the City provides $210,000 annually to help provide
homeownership, education and counseling services. He added that the City provides
$170,000 annually to help provide post-ownership counseling.
Mr. Woodcock also provided updated information on the role of the federal government in
foreclosures, noting that the FDIC monitors and regulates banks and savings associations
and the Federal Housing Administration (FHA) provides loans and mortgage insurance
programs. He explained that Senator Dodd, United States Senate, has held Banking
Committee hearings on foreclosures, but there is concern that federal legislation may preempt stricter state laws.
Committee member Mumford questioned how the HousingCharlotte program operates.
Stanley Watkins answered that through the HouseCharlotte program, federal and local
funds are used to provide down payment, closing cost and interest rate buy-down assistance
to low and moderate income families, in the form of a deferred loan. Mr. Watkins noted
that the City has requested its banking partners to be notified when a client with a
HouseCharlotte loan goes into default, but due to privacy concerns, such information cannot
be released. Committee member Burgess suggested to the Committee that the request for
notification be placed on the legislative agenda because the City has a financial stake in the
households and the goal is to prevent such loans from going into default.
Committee member Foxx asked if there were breakdowns for foreclosure rates based on
race or income, in order to identify whether a disproportionate number of minority groups
were being steered toward adjustable rate mortgages as opposed to fixed rate loans?
Stanley Watkins responded that a disparity study is proposed as a recommendation set
forth in the Analysis of Impediments to Fair Housing Study, which will be discussed at the
April 2, 2007 Council workshop.
Committee member Lochman stated that pre-ownership counseling, rather than postownership counseling is needed. Committee member Mumford asked how the City gauges the
Housing and Neighborhood Development Committee
Meeting Summary for March 21, 2007
Page 3
return on investment for the annual expenditure of $170,000 in post-ownership counseling?
Mr. Woodcock answered that the number of clients serviced is counted but we do not have
statistics on how many may have lost their homes. Stanley Watkins added that, through the
HouseCharlotte pre-ownership counseling program, a record of accounts receivable is
maintained and inspections of the homes are done through the life of the loan. Postcounseling services are open to anyone; not limited to persons who reside in a City sponsored
affordable housing property. Stanley Watkins responded that staff would research to
determine the number of foreclosures for clients that used the HouseCharlotte program or
post counseling program.
Committee member Burgess mentioned recent initiatives in Boston and Chicago that have
been successful in addressing foreclosure rates. Ms. Burgess suggested that staff
research models that have been used by other cities to address problems with foreclosures
and determine what should be included in the local legislative agenda. Committee member
Barnes requested a comparison analysis to show where the high instances of foreclosure
exist in the City, in an effort to provide solutions such as neighborhood improvements, code
enforcement services, additional public safety action that can be implemented now to help
slow down the decline of such neighborhoods. Ms. Burgess suggested a comparison of
neighborhoods in the same price ranges that don’t have foreclosure problems to determine
the factors that contribute to the problem.
II. Neighborhood Councils
Stephanie Small explained that a neighborhood council is a group of citizens representing
several neighborhoods working on common issues and concerns who offer advice to local
government decision makers on neighborhood related policy issues. Ms. Small presented
examples of neighborhood councils from across the country and local neighborhood
coalitions and provided information on the roles, services provided, structure and operation
of the various councils. She stated that the main issues to consider when establishing a
neighborhood council are the role of the council, provisions for funding and staff support
and the basis by which councils will be formed.
Committee member Lochman asked how neighborhood councils differ from neighborhood
associations? Ms. Small responded that neighborhood councils may receive funding and may
register with the state as a non-profit group.
Committee member Mumford stated that the City Council is charged with making decisions
that are for the good of the entire community, not just a specific district or area. Mr.
Mumford stated that there is no need to duplicate existing efforts or replicate services
Housing and Neighborhood Development Committee
Meeting Summary for March 21, 2007
Page 4
that staff already provides. He expressed concern that the establishment of neighborhood
councils may create false expectations that the representatives are unable to fulfill.
Committee member Burgess requested that staff solicit feedback on interest in
neighborhood councils from attendees at the upcoming Neighborhood Symposium and report
back to the Committee on the response.
Other Business:
Committee member Burgess reminded the Committee of the upcoming Neighborhood
Symposium on March 31, 2007.
The meeting was adjourned at 3:00 p.m.
City Council
Housing and Neighborhood Development Committee Meeting
Wednesday, March 21, 2007 – 1:30 p.m.
Charlotte-Mecklenburg Government Center – Rooms 270/271
Committee Members:
Susan Burgess, Chair
Anthony Foxx, Vice-Chair
Michael Barnes
Don Lochman
Pat Mumford
Staff Resource:
Julie Burch, Assistant City Manager
____ ___
AGENDA
I.
Foreclosures & Predatory Lending – Council Priority
(Attachment A)
II.
Neighborhood Councils
(Attachment B)
Note: Attached is March 7, 2007 Follow Up Report (Attachment C)
_______________
Distribution:
Mayor/Council
Pam Syfert, City Manager
City Leadership Team
Corporate Communications
Debra Campbell – Planning Department
Anna Schleunes- City Attorney’s Office
Saskia Thompson- Manager’s Office
CDC Executive Directors
Housing Trust Fund Advisory Board
Neighborhood Leaders
Budget Office
Ruffin Hall
Phyllis Heath
Lisa Schumacher
Charlotte Housing Authority
Charles Woodyard
Troy White
Charlotte-Mecklenburg Housing Partnership
Pat Garrett
Charlotte-Mecklenburg Police Department
Chief Darrel Stephens
Gerald Sennett
Neighborhood Development
Stanley Watkins
Richard Woodcock
Stan Wilson
Stephanie Small
Walter Abernethy
Pat Mason
A Way Home
Chris Wolf
Keith Wilson
Attachment A
Foreclosures – City Council Priority Issue
Housing and Neighborhood Development Committee
March 21, 2007
Committee Action Requested:
Review information on home foreclosures in Charlotte and the roles of the State of North Carolina
and the City of Charlotte in the possible reduction of the foreclosure rate. Consider staff
recommendation and provide direction on possible next steps.
Background:
City Council determined that the growing number of home foreclosures was a Council Priority for
review in FY07. Foreclosures are legal proceedings whereby a bank or other secured creditor
repossesses real property due to the failure of the borrower to comply with the mortgage or deed
of trust. Foreclosure rates have grown steadily over the past five years across North Carolina.
Mecklenburg County rates are higher than state wide averages.
Description:
ƒ Over the past two years foreclosures, as listed in Mecklenburg County’s property tax records, have
totaled 1,810 and 2,245 in 2005 and 2006 respectively.
ƒ
High concentrations of foreclosures impact neighborhoods, as vacant houses invite vagrants and
vandalism, foreclosed dwellings often become rentals, and area property values may rapidly
decrease.
ƒ
Foreclosures occur for a number of reasons that involve reduced income of the borrower.
According to United Family Services, 65 percent of delinquency problems are work related or
due to job loss.
ƒ
Federal Role:
Senator Dodd, Chairman of the Senate Banking Committee, is holding hearings on the surge in
home foreclosures and questionable lending practices. There has been concern that federal
legislation may preempt state laws that may be more restrictive. Information searches have
not turned up any bills on foreclosure or predatory lending that have been introduced at this
time.
ƒ
State’s Role:
The North Carolina Commissioner of Banks has identified problems with the lending industry
and subprime lending as a major part of the problem. The role of the State is to regulate
lenders and pass laws protecting the rights of lenders and borrowers. The NC Commissioner of
Banks recommends public disclosure of high foreclosure lenders and more effective counseling
requirements.
ƒ
City’s Role:
The City’s role in reducing the rate of foreclosures is to support consumer education, housing
counseling services, (including a proposed expansion of post-ownership counseling) and legislative
efforts to regulate lending
Attachment A
ƒ
The City has a contract with Community Link to provide pre-ownership counseling and a contract
with United Family Services to provide post-ownership counseling.
Next Steps:
ƒ Continue support for housing counseling programs and request an additional Housing
Counselor as an FY-08 request.
ƒ
Support State legislative efforts to regulate lending institutions.
Attachment B
Report on Neighborhood Councils
Housing and Neighborhood Development Committee
March 21, 2007
Committee Action Requested:
Provide direction to staff concerning Neighborhood Councils.
What is a Neighborhood Council?
ƒ A neighborhood council is a group of citizens representing several neighborhoods working on
common issues and concerns.
ƒ In some cities, the neighborhood councils have informal roles and, in others, very formal roles.
ƒ They focus on service delivery, zoning and development, growth management and other
neighborhood related issues.
ƒ They may be independent, citizen organizations or government supported organizations serving
as a connecting link between neighborhoods and the elected and appointed officials on
neighborhood issues.
How are Neighborhood Councils Organized?
ƒ Some local governments establish Neighborhood Councils through a process of adopting an
ordinance and the duties and/or partnership details are declared by way of resolution.
ƒ A council area may be formed around the whole city or distinct geographies or boundaries within
the city. For example, in the City of Tacoma, WA the Neighborhood Council areas are defined
by the existing planning service area boundaries.
ƒ In most cases, neighborhood councils represent all stakeholders within the specified Council
boundary. Stakeholders are defined as those who live, work, or own property in the
neighborhoods within the specified boundary.
ƒ In some government structures, where neighborhoods are formally recognized by way of a
registration process, councils are formed with members from neighborhood organizations who
formally register with the City’s Planning Department or Neighborhood Services office. In this
case, each neighborhood organization elects one active member to serve on the council.
How do Neighborhood Councils Operate?
ƒ While the neighborhood councils have no formal powers, they offer advice to local government
decision makers who use their advice for neighborhood related policy decisions.
ƒ Many cities provide financial and staff support to the councils. However, because each
neighborhood council is independent, members of each council decide their own specific mission
and activities.
ƒ In some instances, the councils are registered with the State as a non-profit group, which
allows them to obtain additional funding sources like grants to perform community development
projects.
Examples of Neighborhood Councils:
The City of Charlotte has some independent, citizen neighborhood councils. Examples are the
Charlotte East Community Partners and the West Boulevard Coalition.
1
Attachment B
The Charlotte East Community Partners (CECP) is established to promote the interests, economic
well being and to address the housing and human services needs of the Charlotte East Community.
The CECP meets monthly and is managed by its Board of Directors.
The board of directors is comprised of 15 persons representing east area neighborhoods, multifamily dwellings and businesses. Some of the neighborhoods represented are Winterfield, Windsor
Park and Shannon Park. Officers of the CECP consist of a President, Vice President, Secretary and
Treasurer. Officers are elected by the Board of Directors and serve a one year term. The CECP
provides input on issues like City rezoning cases, transit and housing.
The West Boulevard Coalition (Coalition) is established to promote unity by creating a safe, clean,
drug free environment. The Coalition meets monthly and is managed by its Board of Directors.
The Coalition is an informal organization comprised of board members from several Westside
neighborhoods. Some of the neighborhoods represented included Arbor Glen, Barringer Woods,
Clanton Park and Ponderosa. The Coalition works closely with faith based and non-profit
organizations. Their primary focus is on schools and landlord/tenant issues. More specifically, they
are focusing on dropout rates, low performing schools, low test scores, and code enforcement. One
of their most recent accomplishments included the new Stratford YMCA. The Coalition is currently
in the process of obtaining its 501C(3) status.
See the attached table, which provides a brief snap shot of neighborhood councils from the
following Cities:
1. Durham, NC
2. Raleigh, NC
3. Columbia, SC
4. Rock Hill, SC
5. Reno, NV
6. Tacoma, WA
Considerations for Establishing Neighborhood Councils:
ƒ
What role(s) should Neighborhood Councils hold?
– Advisory role
– Formal role
ƒ
ƒ
ƒ
Will City funding be provided?
Will City staff support be provided?
What is the basis by which Neighborhood Councils will be formed?
– Council Districts
– Distinct Geographies
– Planning District boundaries
ƒ
2
Attachment B
Examples of Neighborhood Councils from Other Cities
Durham, North Carolina - David Harris, President harrisdl2003@yahoo.com
• The City of Durham’s Inter Neighborhood Council is an independent, non-profit organization
that does not receive financial or staff support from the City.
• The Council is made up of representatives from neighborhood organizations throughout
Durham’s City and County. Each neighborhood is entitled to send one representative and one
alternate to serve on the council and must pay an annual membership fee.
• The council’s responsibilities include:
1. Advising both the City and County on policy issues which affect neighborhoods.
2. Research and inform its members of issues affecting residential neighborhoods.
3. Making recommendations to the City Council and Board of County Commissioners on
appointments to boards such as the Board of Adjustments, Planning Commission,
Environmental Affairs Board, etc.
4. Fostering cooperation among existing neighborhood organizations and encouraging the
establishment of neighborhood organizations where none exist.
Raleigh, North Carolina - Hardy Watkins, Community Services Director (919) 831-6100
• There are 18 geographically located Citizen’s Advisory Council’s (CAC) within the City.
• The function of the CACs is to serve as a formal vehicle for citizens to give input on issues of
interest, which affect their community/neighborhood to the City's decision-makers.
• The Councils meet monthly and are responsible for reviewing presentations regarding
neighborhood policy items from various City departments and advise the City on issues that
impact their community/neighborhood.
• The CACs are the only advisory bodies of the City Council whose membership is strictly
voluntary. The number of members varies from council to council.
• The Community Services Department offers staff support and programming to each council.
Columbia, South Carolina – Roland Smallwood, Community Liaison (803) 545-3381
• The Columbia Council of Neighborhoods (CCN) is an umbrella organization made up of the
various recognized and approved neighborhood associations of the City.
• The Council’s primary purpose is to promote communication and cooperation between
organizations, foster a sense of community and assist each other by providing a forum where
member organizations can bring specific concerns for discussion, receive reliable information
and support for legitimate causes.
• The Council provides a connecting link between neighborhoods and the elected and appointed
officials and units of local government that it advises on issues of neighborhood concern.
• The Council meets monthly and receives presentations from various local and state agencies and
City and County departments and provides advice to City Council and School Board, on
neighborhood issues.
• The Council has an indirect impact on the allocation of CDBG funding and the General Fund
through a citizen’s survey.
• Approximately $50,000 is allocated to the Council each year for program and administrative
services.
3
Attachment B
Examples of Neighborhood Councils from Other Cities (Continued)
Rock Hill, South Carolina – Terry Windell, Neighborhood Coordinator (803) 326-3877
• The Council of Neighborhoods has been in existence for about seven years. It was organized as
a result of several neighborhoods having common issues (ex: storm water and infrastructure).
• The Council acts in an advisory capacity to the City Council, City and County Departments and
other local agencies on neighborhood related issues.
• The Council meets monthly and receives presentations from various agencies and City
departments (i.e. Planning & Zoning, Code Enforcement) and provides advice on neighborhood
issues.
• The Council is a 35 member group with an executive team comprised of a President, Vice
President, Secretary and Treasurer. Members can be appointed to the Council by their home
owners or neighborhood associations. The Council is also assigned a City staff person to act as
a liaison between the City and the Council of Neighborhoods.
• Approximately $4,000 is allocated to the Council of Neighborhoods each year. Funds are used
to cover printing and postage costs and are also used to send at least two representatives to
the annual NEUSA Conference.
Reno, Nevada – Charles Goode, Director, Community Relations Division (775) 321-8318
• The City of Reno has eight Neighborhood Advisory Boards (NAB) – nine members serve on each
board.
• NABs advise the City Council on policies that affect neighborhoods throughout the community.
• The Boards meet monthly and receive presentations from various city departments (i.e. Planning
& Zoning, Code Enforcement) and advise the City on issues that affect neighborhoods.
• The boards are also responsible for awarding annual neighborhood improvement grants to
neighborhood-based organizations through the City’s Community Pride Grant Program - $50,000
per board.
• Council allocates approximately $19,000 for administrative services to the NABs each fiscal
year.
• The boards are open to residents who live within a neighborhood in the NAB boundary.
• Members are a group of volunteers who are appointed by the City Council for three-year terms.
Tacoma, Washington – Elton Gatewood, Neighborhood Council Coordinator (253) 591-5229
• The City of Tacoma has eight Neighborhood Councils. The councils are open to all residents
within each council boundary. The number of members varies from council to council. Members
are elected to one year terms in November.
• The councils are independent, non-profit organizations who are responsible for 1) advising the
City on neighborhood issues; and 2) awarding annual neighborhood improvement grants to
neighborhood organizations through the Innovative Grant program - $20,000 per council.
• Also, each council is allocated $5,000 per year for personal services contracts to cover the cost
of administrative needs and $10,458 for daily activities.
• In addition to providing financial support, the City Manager assigns an intern to each council to
serve as liaisons between the councils and the City.
4
Attachment C
Follow Up Report
Housing and Neighborhood Development Committee
March 21, 2007
The following items are requests for information that resulted from the March 7, 2007
H&ND Committee Meeting:
1. Committee Request: Provide statistics relating to Chris Wolf’s comment that CharlotteMecklenburg has one of the highest percentages of socio-economic
disparity in the nation.
Result: Chris Wolf will provide additional information on this matter.
2. Committee Request: Provide report on study that is designed to look at the relationship of
CDC’s to the City and possible restructuring.
Result: City Council directed staff to prepare a report on the business methods of CDC’s.
Staff hired a consultant to prepare the report, which will be completed in mid
April. Staff will schedule a presentation to the City Council.
3. Committee Request: Look into feasibility and legality of adding a provision on the property
tax bills to allow voluntary contributions.
Result: Legal staff is researching and will provide follow up information.
4. Committee Request: Research the potential costs associated with homelessness due to
reliance and dependence on other publicly-funded systems, such as
emergency medical care, judicial and correctional services, chemical
dependency treatment and foster care services.
Result: Staff will draft a preliminary report on the feasibility of generating such a report.
5. Committee Request: Provide information on federal regulations pertaining to foreclosure
and predatory lending.
Result: Senator Dodd, Chairman of the Senate Banking Committee, is holding hearings on the
surge in home foreclosures and questionable lending practices. There has been
concern that federal legislation may preempt state laws that may be more
1
Attachment C
restrictive. Information searches have not turned up any bills on foreclosure or
predatory lending that have been introduced at this time.
6. Committee Request: Provide information on the status of the Brookhill Village project,
located on South Tryon Street.
Result: Brookhill Village is an existing privately owned development comprised of
approximately 400 units that is currently for sale. Skeet Harris is the broker.
There is a 100 year lease on the property. Mr. Harris consulted the
Planning Department about appropriate uses for the site prior to placing it on the
market. There is some concern amongst staff and some Council members about the
elimination of this much privately owned affordable housing. While there is nothing
requiring affordable housing be a part of the redevelopment of the site, Mr. Harris is
aware that this is a priority and is looking for buyers to be sensitive.
2