Charlotte City Council
Housing and Neighborhood Development Committee
Summary Meeting Minutes
March 20, 2008
COMMITTEE AGENDA TOPICS
I.
II.
III.
FY09 Focus Area Plan Follow-Up
Foreclosure Follow-Up
2008 Meeting Schedule
COMMITTEE INFORMATION
Council Members Present:
Susan Burgess, James Mitchell, Michael Barnes, Warren Cooksey and
John Lassiter
Council Members Absent:
None
Staff Resource:
Julie Burch, Assistant City Manager
Staff:
Stanley Watkins, Neighborhood Development
Richard Woodcock, Neighborhood Development
Stephanie Small, Neighborhood Development
Bob Hagemann, City Attorney’s Office
Anna Schleunes, City Attorney’s Office
Others: See Sign In Sheet
Meeting Duration: 10:35 a.m. – 11:45 a.m.
ATTACHMENTS
Agenda Packet – March 20, 2008
Housing and Neighborhood Development Committee
Meeting Summary for March 20, 2008
Page 2
DISCUSSION HIGHLIGHTS
FY09 Focus Area Plan Update
Stanley Watkins explained that at the February 6, 2008 meeting, it was recommended that the FY09
Focus Area Plan (FAP) be reconfigured to be more outcome based. In response to that
recommendation, staff requests that the Committee approve the FY09 Housing and Neighborhood
Development Focus Area Plan recommendations and give staff additional time to prepare more
rigorous outcome measures for the FY10 H&ND Focus Area Plan. Council member Burgess noted that
foreclosures is not listed on in the FAP and suggested that it be added. Committee member Lassiter
added that development of a neighborhood preservation strategy could be added without hard
measures. Committee member Mitchell requested that the focus area initiative #5 be amended to
include leadership development.
Action: Upon a motion by Lassiter and seconded by Mitchell, the Committee voted unanimously
to 1) add to the FAP a goal to develop and adopt a strategy to address foreclosures in
Charlotte’s neighborhoods, and 2) reword focus area initiative #5 to include leadership
development
Members in attendance: Burgess, Mitchell, Barnes, Cooksey and Lassiter.
Foreclosure Follow-Up
Richard Woodcock presented background and updated information on the rate of foreclosures in the
city. Mr. Woodcock also provided information best practices used in other cities to address the
problem, as well as current federal, state and local initiatives. He explained the city’s proposed
foreclosure strategy, which seeks to increase the awareness and accountability of property owners,
lenders, property managers and housing service providers for foreclosure prevention and intervention
and to address highly impacted foreclosure neighborhoods through a pilot program designed to
preserve the neighborhood.
Committee member Burgess stated that a balance of prevention and treatment is a good direction in
which to proceed. Ms. Burgess asked if there are non-profit agencies that could buy foreclosed
homes? Mr. Watkins stated that staff proposes to partner with non-profit agencies to do various
work in the neighborhoods. Committee member Barnes stated that many do not know how to be good
neighbors and questioned whether in some instances such problems are created by the Section 8
program. Officer Leonard of CMPD stated that it would be difficult to obtain such information. He
added that there is not direct correlation between crime and Section 8. Ms. Burgess suggested that
a presentation on the Moving to Work program be given to the Committee.
Ms. Burgess suggested that it would be good for the city to work with non-profit agencies to
purchase foreclosed homes and create homeownership opportunities, as opposed to having them
Housing and Neighborhood Development Committee
Meeting Summary for March 20, 2008
Page 3
purchased by investors. Committee member Barnes stated that information on the lenders and
buyers would be useful in helping to solve the problem. Mr. Barnes expressed concern about too much
government involvement in private neighborhoods. The Committee agreed that a tour of
neighborhoods with high foreclosure rates would be helpful and agreed on a tour date of April 1,
2008.
Action: Received as information. No action taken.
2008 Meeting Schedule
The Committee discussed the upcoming April date and agreed to reschedule due to a conflict. Staff
will query schedules to find an alternate meeting date for April.
The meeting was adjourned at 11:45 p.m.
City Council
Housing and Neighborhood Development Committee Meeting
Thursday, March 20, 2008 – 10:30 a.m.
Charlotte-Mecklenburg Government Center
Conference Room 280
Committee Members:
Susan Burgess, Chair
James Mitchell, Vice-Chair
Michael Barnes
Warren Cooksey
John Lassiter
Staff Resource:
Julie Burch, Assistant City Manager
____ ___
AGENDA
I.
FY09 Focus Area Plan Follow-Up (Attachment A)
II.
Foreclosure Follow-Up (Attachment B)
III. 2008 Meeting Schedule (Attachment C)
_________________________________________________________
Distribution:
Mayor/Council
Curt Walton, City Manager
City Leadership Team
Corporate Communications
Debra Campbell – Planning Department
Anna Schleunes- City Attorney’s Office
Mujeeb Shah-Khan- City Attorney’s Office
Saskia Thompson- Manager’s Office
CDC Executive Directors
Housing Trust Fund Advisory Board
Neighborhood Leaders
Budget Office
Economic Development Office
Tom Flynn
A.C. Shull
Community Relations
Ruffin Hall
Phyllis Heath
Lisa Schumacher
Ann White
Phil Cowherd
Charlotte Housing Authority
Charles Woodyard
Troy White
Charlotte-Mecklenburg Housing Partnership
Pat Garrett
Charlotte-Mecklenburg Police Department
Chief Darrel Stephens
Gerald Sennett
Ken Miller
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Willie Ratchford
Ledger Morrissette
Neighborhood Development
Stanley Watkins
Richard Woodcock
Stan Wilson
Stephanie Small
Walter Abernethy
Pat Mason
Attachment A
Focus Area Plan Follow-Up
Housing and Neighborhood Development Committee
March 20, 2008
Request: Approve FY09 Housing and Neighborhood Development (H&ND) Focus Area Plan
recommendations and give staff more time to prepare more “rigorous” outcome measures for FY10
H&ND Focus Area Plan.
Background: At the February 6, 2008 meeting, a concern was raised about the “output” versus the
“outcome” nature of some of the measures in the FY09 H&ND Focus Area Plan. Also, a technical
adjustment was recommended for the infrastructure objective to account for the investments
made by the city. The day’s agenda did not permit a full discussion on the origin and background on
the objective measures. Staff indicated that it would look into the concerns and report back to
the Committee.
Recommendation: City staff has researched the six objectives contained in the FY09 H&ND Focus
Area Plan. Attached is a matrix that shows staff’s research efforts to date and preliminary
observations regarding potential outcome measures.
Currently some of the objective measures are considered “outcome” based. Other measures can be
amended to that end but would involve considerable staff time and expenditures to ensure accurate
data collection. Staff is prepared to review each of the objectives and discuss the opportunities
and challenges associated with amending the objectives.
The five Focus Area Plans and Priority Areas are scheduled for adoption by the City Council on
March 24, 2008.
Attachments
FY09 H&ND Focus Area Plan w/Infrastructure Technical Adjustment – A1
H&ND Focus Area Plan Goal Analysis – A2
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FY 2009 Strategic Focus Area Plan
“Creating great neighborhoods
in which to live, work, and
play.”
The City of Charlotte’s long-term health, vitality, and distinction as a leading city is predicated upon its ability to develop and sustain its neighborhoods. Social changes, crime and disorder, physical deterioration, and
economic disinvestments create challenges for the City’s residential, commercial and industrial neighborhoods. The City’s housing and neighborhood strategy focuses on quality of life measures, expanding affordable housing, effective code enforcement, infrastructure investments, and successful neighborhood revitalization initiatives. The City will be responsive to addressing the needs of all neighborhoods, but will develop
unique approaches and solutions to address each of the City’s challenged, transitioning, and stable neighborhoods. (Also see Community Safety, Economic Development and Transportation Focus Area Plans for more housing and
neighborhood development strategies.)
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Housing and Neighborhood
Development
DRAFT
Strengthen Neighborhoods
H&ND.1 Focus Area Initiative:
► Measure:
Targets:
Prior Year:
H&ND.2 Focus Area Initiative:
► Measure:
Targets:
Prior Year:
H&ND.3 Focus Area Initiative:
► Measure:
Targets:
Prior Year:
Reduce the number of challenged neighborhoods
Number of challenged neighborhood statistical areas
FY2009— n/a
FY2008— 22
FY2007— n/a
Expand the supply of affordable housing
Number of completed affordable housing units
FY2009— 600
FY2008— 800
FY2008YTD— 400
FY2007—1,640
Eliminate sub-standard housing, neighborhood nuisances and zoning violations
Number of housing units, nuisance complaints and zoning violations brought into
compliance
FY2009— Housing—2%*
Nuisance—41,000 Zoning—8,500
FY2008— Housing—2,600 Nuisance—40,000 Zoning—8,000
FY2007— Housing—2,761
Nuisance—42,732
FY2008YTD- Housing – 1,432 Nuisance – 16,446
* - Not to exceed 2% of the housing stock
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Zoning—7,385
Zoning – 4,042
Housing and Neighborhood
Development
DRAFT
H&ND.4 Focus Area Initiative:
► Measure:
Targets:
Prior Year:
H&ND.5 Focus Area Initiative:
► Measure:
Targets:
Prior Year:
Graduate neighborhoods from the revitalization plan process
Number of revitalization neighborhoods completed (8 neighborhoods have revitalization plans)
FY2009—1
FY2008—1
FY2007— None
Educate and engage residents in achieving model neighborhood standards through
successful problem solving initiatives.
Percent of neighborhood organizations implementing successful problem solving
initiatives
Number
Success Ratio
FY2009—360
80%
FY2008—360
80%
FY2007—113
123%
Invest in Infrastructure
H&ND.6 Focus Area Initiative:
► Measure:
Targets:
Prior Year:
Provide comprehensive neighborhood infrastructure (curb and gutter, sidewalks,
road improvements, streetscape, etc.)
City neighborhood infrastructure investments vs. infrastructure needs
FY2009— $15.0 million/$769 million
FY2008— $15.0 million/$715 million
FY2007— $ 8.9 million/$651 million
FY2008 YTD- $6.1 million/$715 million
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Attachment A2
Housing & Neighborhood Development Focus Area Plan
Goal Analysis
Current Goals
3/11/2008
Current Measures
Summary of Investigation
Goal 1: Reduce the number of challenged
neighborhoods
Measure: Number of challenged
neighborhood statistical areas
Targets:
FY2009— n/a
FY2008— 22
Prior Year:
FY2007— n/a
This goal measures the city’s success based on the biannual Neighborhood Quality of Life Study. The
study classifies 173 Neighborhood Statistical Areas as
Stable, Transitioning or Challenged based on a
statistical analysis of 20 local variables addressing
social, crime, physical and economic dimensions.
This is an outcome measure.
None. The current measure represents an acceptable
outcome measure.
Goal 2: Expand the supply of affordable
housing
Measure: Number of completed affordable
housing units
Targets:
FY2009— 600
FY2008— 800
Prior Year:
FY2007—1,640
This goal was originally established to measure the
city’s affordable housing production against a unit
goal of 5,000 established by City Council in 2002.
The targets include new construction, rehabilitation
and home purchase subsidies. This goal is based upon
funding from all available housing financing sources –
federal, state and local. This is an output measure.
Industry acceptable outcome measures for affordable
housing address affordability, availability and quality
of housing. They include:
o Number of units affordable to range of incomes
o Number of physically deficient units
o Number of overcrowded housing units
Goal 3: Eliminate sub-standard housing,
neighborhood nuisances and zoning
violations
Measure: Number of housing units, nuisance
complaints and zoning violations
brought into compliance
Targets:
FY2009—
Housing—2%*
Nuisance—41,000
Zoning—8,500
FY2008—
Housing—2,600 Nuisance—40,000
Zoning—8,000
Prior Year:
FY2007— Housing—2,761
Nuisance—42,732 Zoning—7,385
This goal measures housing, nuisance and zoning
enforcement activities. These are output measures.
Housing – The preferred measure is progress
toward the elimination of physically deficient units.
However, the only good source of the total number
of deficient units is the decennial census. Windshield
surveys or sample surveys can help establish a
baseline, but can be cost prohibitive. We need to
explore a less costly method of estimating
substandard housing
However, in an effort to achieve an outcome measure
for housing, it has been proposed that the housing
enforcement goal be changed to measure
enforcement efforts against the overall residential
housing stock beginning in 2009.
Nuisance – The best outcome measure is a third
party estimate of the cleanliness of the city. One
option is the Keep Charlotte Beautiful Annual
Cleanliness Index.
Zoning – Staff could not find a good outcome
measure for zoning enforcement.
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Attachment A2
Current Goals
Current Measures
Goal 4: Graduate neighborhoods from the
revitalization plan process
Measure: Number of revitalization
neighborhoods completed (8
neighborhoods have revitalization
plans)
Targets:
FY2009—1
FY2008—1
This goal measures the City success in graduating
from revitalization neighborhoods. In order to
achieve graduation, revitalization neighborhood plan
must be 75% complete; the neighborhood has been in
the transitioning category for two consecutive
Quality of Life Studies and the neighborhood
organization must be at least 80% effective. This is
an outcome measure.
None; the current measure represents an acceptable
measure.
This goal measures the neighborhoods engaged in
problem-solving initiatives with the City and their
success ratio. The City reaches out to neighborhoods
through the neighborhood Liaison Program,
Community Oriented Policing and other programs.
This is an outcome measure for this type of work
None; the current measure represents an acceptable
outcome.
This measure was instituted by City Council a
number of years ago to measure their investment in
neighborhood infrastructure against the neighborhood
infrastructure need. A question was raised about
change in the denominator given planned investments
in infrastructure. The denominator is based on the
estimated neighborhood infrastructure need as
reported by the Neighborhood Quality of Life Study.
This is an outcome measure.
None; the level of investment versus need represents
an acceptable goal. The denominator is adjusted as
estimated.
Prior Year:
Summary of Investigation
FY2007— None
Goal 5: Educate and engage residents in
maintaining model neighborhood
standards
Measure: Percent of neighborhood
organizations implementing
successful problem solving
initiatives
Targets:
Number
Success Ratio
FY2009—360
80%
FY2008—360
80%
Prior Year:
FY2007—113
123%
Goal 6: Provide comprehensive
neighborhood infrastructure
Measure: City neighborhood infrastructure
investments vs. infrastructure
needs
Targets:
FY2009— $15.0m/$769m
FY2008— $15.0m/$715m
Prior Year: FY2007— $ 8.9m/$651m
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Attachment B
Foreclosures Follow-Up
Housing and Neighborhood Development Committee
March 20, 2008
Request: Provide direction to staff on addressing foreclosures in the City of Charlotte.
Background: Since March 2007 the Housing and Neighborhood Development Committee has
been reviewing and researching the foreclosure issue. The Committee has reviewed local
and national foreclosure trends, discussed best practices in other cities and states,
examined local efforts regarding foreclosure and discussed state and federal efforts.
Program Description: City staff will provide an overview of the foreclosure issue and
propose a strategy for moving forward. The following areas will be addressed:
ƒ
Foreclosure Analysis - Since 2000, the number of foreclosure filings in Mecklenburg
County has increased from 2,300 to 7,934, a 244 percent increase. In addition,
certain moderately priced subdivisions have suffered foreclosure rates of 20 to 40
percent. This is a growing crisis in the county, which mirrors trends occurring
nationally.
ƒ
Best Practices – A number of cities and states have initiated foreclosure prevention,
intervention and recovery programs. Foreclosure programs in Baltimore, Boston,
Chicago and Syracuse are cited as models to address this growing issue. The North
Carolina Housing Finance Agency’s Home Protection Pilot program is an example of a
program currently in operation in this region.
ƒ
Federal Actions – The Federal Housing Administration (FHA) has worked with city
staff to conduct housing seminars on foreclosure and implement a discount purchase
program for foreclosed FHA insured properties in the Charlotte area. Congress is
considering several bills to address various aspects of foreclosure.
ƒ
State Actions – During last year’s session, the North Carolina State legislature
passed two bills to help reduce predatory lending. One bill makes mortgage fraud a
felony and the other requires that lenders record the loan originator on loan
documents. A third bill, which requires new notifications to homeowners and grants
specified rights in the event of foreclosures, passed the House and has been sent to
the Senate.
ƒ
Proposed Foreclosure Strategy – Currently, the city partners with Community Link in
order to provide pre-ownership housing counseling, and with United Family Services to
provide post-ownership housing counseling. The city is proposing an expansive
foreclosure strategy aimed at providing information, education and advocacy and
addressing highly impacted foreclosure neighborhoods.
Attachment:
Proposed Foreclosure Strategy (B1)
8
Attachment B1
PROPOSED CITY OF CHARLOTTE FORECLOSURE STRATEGY
March 20, 2008
PROBLEM DEFINITION
The growing number of housing foreclosures is a major issue both nationally and locally.
Between 2000 and 2007, the number of foreclosure filings in Charlotte-Mecklenburg increased
244 percent, from 2,311 to 7,943 filings. It is estimated that approximately 40 percent of all local
foreclosure filings have resulted in the loss of a home.
Foreclosures have brought financial ruin to families, reduced property values in neighborhoods,
and resulted in abandoned housing that, in some cases, has been vandalized and become
havens for criminal activity. One unanticipated impact of the local foreclosure crisis is the large
occurrence of foreclosures in some neighborhoods that are less than five years old. These
foreclosures have created conditions similar to those in some of the city’s revitalization
neighborhoods.
PROGRAM OBJECTIVES
ƒ Increase the awareness and accountability of property owners, lenders, property managers
and housing services providers for foreclosure prevention and intervention; and
ƒ Address highly impacted foreclosure neighborhoods through a pilot program designed to
preserve the neighborhood.
PROPOSED FORECLOSURE STRATEGY
I. Education, Outreach and Advocacy (City-wide)
A) Establish city website for resources/referrals
B) Coordinate with local pre and post-homeownership counseling agencies
C) Collaborate with local banks on available mortgage instruments
D) Collaborate with state and federal agencies on prevention and intervention strategies
E) Support state and federal legislation to cure mortgage abuses
II. Neighborhood Preservations Strategy(Local)
A) Select highly impacted neighborhoods to participate in a pilot project (No more than two)
B) Form neighborhood preservation team (Includes public, private, non-profit and resident
members)
C) Establish Neighborhood Preservation Goals
D) Develop Coordinated Strategy
1.) Community Safety
2.) Code Enforcement
3.) Foreclosure Prevention/Financial Literacy Counseling
4.) Housing Purchase/Rehabilitation/Resale
5.) Infrastructure
6.) Neighborhood Capacity Building
7.) Employment
8.) Social Services
9.) Youth Involvement and Engagement
E) Develop Implementation Plan/Budget
F) Monitor/Report Progress
CONCLUSION
The goals of this strategy are to increase public awareness of the foreclosure problem and
address specific neighborhood impacts resulting from high incidences of foreclosures. The first
goal will be achieved through dissemination of information and resources that housing providers
and consumers can use to address foreclosure problems. The second goal is aimed toward
9
Attachment B1
quickly turning around and stabilizing neighborhoods that are highly impacted by foreclosures.
Achievement of these goals will help the city transition through the foreclosure crisis.
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Housing & Neighborhood Development Committee
2008 Meeting Schedule
All meetings at 12:00 noon in Room CH-14 (except where noted)
March 20 – 10:30 p.m., Room 280
April 9
May 14
June 11
July 9
August 13
September 10
October 8
November 19
December 10
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