Docstoc

Income Tax Calculator for State of Oregon

Document Sample
Income Tax Calculator for State of Oregon Powered By Docstoc
					                  OREGON STATE HOUSING COUNCIL
                                  Minutes of Meeting
                          Oregon Housing & Community Services
                             Large Conference Room –124 a/b
                    725 Summer Street NE, Suite B, Salem, Oregon 97301

                                            9:00 a.m.

                                    September 30, 2005

MEMBERS PRESENT                               STAFF PRESENT
Buz Ortiz                                     Bob Repine, Director
Scott Cooper                                  Jack Kenny, Deputy Director
John Epstein                                  Bob Gillespie, Housing Division Administrator
Maggie LaMont                                 Jon Gail, Home Ownership Manager
Stuart Liebowitz                              Roz Barnes, Housing Development Rep.
Larry Medinger                                Kim Manie-Oskoii, RAD
Jeana Woolley                                 Shelly Cullin, Loan Officer
                                              Debie Zitzelberger, Loan Officer
GUESTS                                        Kim Manie-Oskoii, RAD
Tony Chrisman, Chrisman Development &         Carole Dicksa, HOME Program Manager
  Management, Inc.                            Robert Franco, Housing Services Rep.
Stephen Kliewer, Executive Director,          Lisa Joyce, Interagency Policy Strategist
  Wallowa Valley Center for Wellness          David Foster, Policy Strategist
Len Brannen, Shelter Resources                Richard Bjelland, State Housing Analyst
Paul Rainey/AOHA                              Jack Duncan, RAD
David Crawford, Geller Silvis &Associates     Vince Chiotti, RAD
                                              Darcy Strahan, RAD
                                              Betty Markey, Housing Resources Manager
                                              Vicki Massey, Housing Resources Asst. Mgr.
                                              Teri Kucera/Jo Rawlins, Recorder
                                              *RAD = Regional Advisor to the Director
                                              **HDR = Housing Development Representative


I.     CALL TO ORDER: Chair Buz Ortiz calls the September 30, 2005 meeting to order at
9:10 a.m. and asks for roll call. Present: Scott Cooper, John Epstein, Maggie LaMont, Stuart
Liebowitz, Larry Medinger and Chair Buz Ortiz.

II.    PUBLIC COMMENT: None.

III.   APPROVAL OF MINUTES:

Maggie LaMont notes a spelling error on page 15, line, 9. Change ―owneres‖ to ―owners.‖




Page 1—Oregon State Housing Council – September 30, 2005
              MOTION: Maggie LaMont moves that the Housing Council approve
              the minutes of the September 30, 2005 Council meeting as amended.

              VOTE: In a roll call vote the motion passed unanimously. Members
              Present: Cooper, Epstein, LaMont, Liebowitz, Medinger, and Chair
              Ortiz.

IV.     CONSENT CALENDAR:
Maggie LaMont refers to Loans 11 and 12 (page 25) and notes that $51,000 was contributed
toward the purchase price of #11 and $52,000 for loan #12. Are they getting grants to help them?
Do we show secondary financing on these? Jon Gail: The loans could be with grants, a gift from a
family member, or secondary financing that we do not show. The file shows that $58,000 was from
the borrowers; there is no secondary financing. Bob Repine: Is it a targeted or non-targeted area?
Gail: Non-targeted [area]. LaMont: There are no prior home ownerships? Gail: Right. If they did
have prior ownership, a borrower could use equity from the sale of a home. But in the case of Loan
# 11 that was not the case. With Loan 12, the borrowers got a subordinate loan in the amount of
$52,000. He discusses trends in the mortgage industry.

Chair Ortiz: Are you seeing a reduction in volume because of housing costs? Gail answers yes.
Price has been a big factor and the market has good interest rates (below 6% this week). Also,
interest-only loans are emerging and make up 33% of the market. He notes the competition from the
different innovations within the industry. Jack Kenny: This may become a policy issue for us in
the near future. Other state housing agencies are taking action and some states are doing interest
only loans for three years.

              MOTION: Larry Medinger moves that the Oregon State Housing
              Council approve the Consent Calendar.

              VOTE: In a roll call vote the motion passed unanimously. Members
              Present: Cooper, Epstein, LaMont, Liebowitz, Medinger, and Chair
              Ortiz.

Scott Cooper asks how frequently staff will report on loan program statistics? Jon Gail: We agreed
the report would be quarterly. Next month is the next report.

Bob Repine announces that Jon Gail is leaving OHCS and will work for US Bank as a CRA Loan
Officer. He notes Mr. Gail‘s years of contribution to the agency and the single-family program. He
commends both Jon and his staff for their tremendous effort in making the Single Family Program a
success, as the program plays a very important role in the financial success of the agency. Bob
thanks Jon for his contributions and wishes him the best of luck.

Jack Kenny adds that Jon Gail followed a dynamic manager, but took the program to another level.
He commends Jon‘s and Bob Larson‘s innovative work on the down payment assistance program.
Jon also worked on making the website professional by linking in lenders and making it more user
friendly to interested parties. Under Jon‘s management, the Single Family reached performance
measure goals and made outreach to minority communities.



Page 2—Oregon State Housing Council – September 30, 2005
Jon Gail thanks everyone for the opportunity to have a job that he enjoyed very much and could
apply his trade. He promises to offer assistance or support from the private sector side of the
mortgage origination business and be there for the Department in any way it needs it.

Scott Cooper comments that the program has been one of the most effective and best run
components of the agency‘s portfolio. He expresses appreciation for all of Jon‘s work.

Chair Ortiz second‘s Mr. Cooper‘s comments. We obviously are going to miss you and hate to see
you leave. I‘m sure you‘ll be successful in your next opportunity. Thank you very much.

Councilor Jeana Woolley arrives at the meeting (9:20 a.m.).

Bob Repine states that Councilor Jeana Woolley has arrived and was delayed due to a power
system outage in the Portland area. He informs her that the public comment period has closed and
Council has taken two actions: Agenda Items II. and III.

New Business discussed next because Lisa Joyce had not yet arrived.

V.      NEW BUSINESS
Wallowa River House – HOME Fund Request. Roz Barnes introduces guests Tony Chrisman of
Chrisman Development and Management, Inc., Stephen Kliewer, from Wallowa Valley Center for
Wellness (WVCW), and Kim Manie-Oskoii, the Regional Advisor to the Director (RAD), filling in
for Bruce Buchanan. Barnes reports that the Department‘s funding includes $165,000 in Oregon
Affordable Housing Tax Credits, $100,000 in Trust Fund, $27,971 in Weatherization, and a request
for $844,779 in HOME funds today. Wallowa River House is a joint effort between WVCW and
Chrisman Development. It will be an 11-unit project in Wallowa that will house very low-income
residents with severe and persistent mental illness and who also suffer from a chronic physical
condition (―dual diagnosed‖). Barnes describes the project (page 32) and notes that the complex
will have a kitchen and meals will be provided. Although Wallowa River House was received in
the Spring 2005 applications, it is being presented today because the Steering Committee requested
additional information before it would approve the application. She gives an overview of the
concerns on page 32 and how each was addressed. Concerns included design of the units, the
proposed level of services, the types of amenities and how the services would be carried out,
demonstrated need for the project and location of it for a valid market assessment. Also addressed
were community concerns around whether or not residents at Wallowa River House might pose
some type of threat to other Wallowa residents and business owners. Although there is not a police
force in Wallowa, there is a Sheriff‘s Office and five of the deputies live in Wallowa. WVCW
owns and operates two other very successful residences in two other communities. Neighbors have
been satisfied with the residents that live there, and any fear of violence or threatening situation in
the community is unfounded based on their experience. During a Wallowa City Council meeting in
March 2005, two business owners from those two communities stated they had never experienced
negative issues with this population. A site plan of Wallowa River House is distributed.

Chair Ortiz: Does the State assist the tenants with an income stream? Stephen Kliewer: The units
are subsidized by the State. When an individual comes in, they are responsible for what they would
normally pay for an apartment. Most of them have a SSI payment that they receive. Chair Ortiz:



Page 3—Oregon State Housing Council – September 30, 2005
Out of that, what‘s the actual number currently that they pay in rent? Tony Chrisman: The rent is
below the fair market rents. Kliewer: The balance of what it costs us to provide services comes
from the State of Oregon Mental Health and Addiction Services (OMHAS). We are currently
talking with OMHAS to establish the rate. There are small variations possible in terms of the
population that they are trying to place out of the State Hospital and into the community level. I‘ve
been part of a task force that‘s been looking specifically at eastern Oregon. Our project, called Blue
Mountain Recovery Center in Pendleton, is at risk of disappearing totally because of a Medicaid
waiver issue that will prevent us from placing Medicaid patients in that institution as of October
2006. That and other issues are creating a tremendous need for us in eastern Oregon, althou gh it is a
statewide issue to develop community-based housing strategically.

Stephen Kliewer introduces himself as the Executive Director for WVCW, the community mental
health program for Wallowa County. He discusses his work with mental health directors in Baker,
Umatilla, Union, Malheur and Grant Counties. All are working as part of a regional strategy to
make sure those clients that are dual diagnosed have a place to go for proper care. The advantage of
Wallowa River House is that is for the dual diagnosed and that there is a state population to draw
from due to lack of units for this population. Normally, people with physical illnesses go to a
nursing home for CNA care, nurses and medical directors; however, most do not take residents with
mental illnesses. The mentally ill would normally go into a standard residential treatment home but
if they also have physical complications, they are put at risk physically because those homes do not
have CNAs, nurses and doctors. He discusses their work to develop housing for the dual diagnosed
in Eastern Oregon and notes that Wallowa County is,..―kind of the County that is doing the
medically vulnerable.‖ He talks about Blue House, a residential foster home in Enterprise, and the
Joseph House, a residential treatment home for dual diagnosed residents who receive care from
nurses and CNAs. For that kind of care, WVCW receives funding from the Extended Care
Management Unit of OMHAS that subsidizes basically the whole program. It is much cheaper for
the State, as opposed to having people in the State Hospital. Studies have shown that people in
community-based projects do better than people who are institutionalized in the State Hospital. Our
goal is modeled after the ―recovery model‖, which is to move this population toward a healthier,
more satisfying life and provide the ability for them to live potentially independent lives and
become functioning members of their communities. As a non-profit, we also raise donations to fund
some programs. He discusses local community fundraising and their equine program.

Scott Cooper: Did you say from your regional discussions or planning it was decided that this
population was going to be directed toward Wallowa County? Kliewer: Not the entire spectrum of
the population. Regionally, our task force has said we need x number of units. Because of the kinds
of staffing that WVCW has, we are the most logical center for dual diagnosed people. Cooper asks
if they have a policy? Kliewer: It is not a policy but an agreement or decision that we made with
one another to avoid duplicating services. He describes the existing and proposed projects in other
counties and the populations served. Cooper points out that Kliewer‘s statements lead into the
Community as Customer Initiative. They have identified the population and are willing to accept
the regional impact of the outflow from the institutions and make this type of housing available in
their communities. He commends Kliewer and his group.




Page 4—Oregon State Housing Council – September 30, 2005
Jack Kenny: Is the Medicaid funding going away due to waiver issues? Kliewer: You can‘t place
a Medicaid patient in a project that has more than ‗x‘ number of units. We‘ve had a waiver for that,
which is not going to be renewed.

John Epstein asks if Chrisman‘s will run the project when it is completed. Tony Chrisman: We
will do the HOME-side compliance and make sure the rents are right and that the paperwork is done
correctly. Epstein: Are you the owner? Chrisman: Yes. We have a Memorandum of
Understanding (MOU) that WVCW will operate the project. We have developed a lot of affordable
housing for seniors but do not have the expertise to do this type of project alone. We have a HOME
project in Enterprise where most of the tenants are WVCW‘s clients. Kliewer: We provide the
services to keep that clientele in the community. Chrisman has been incredibly helpful in working
with us. We respect them in terms of their ability to manage projects, and asked them to partner
with us in planning this project. John Epstein: Are you committed that staff spends 6 hours a day
in Enterprise or 40 hours a week? Kliewer: There will be 24/7 awake staff on site, a requirement
for these types of residents. Epstein: This Performa addresses the real estate and the rents; the
funding comes from your other sources to serve this population outside the rent structure. Kliewer:
The clients will rent the apartments from Chrisman and WVCW will rent the common area space
from them and run the program.

Chair Ortiz: How long has your organization been in this area? Tony Chrisman responds that
Chrisman Development has been doing affordable housing for about 15 years, specializing in senior
and family affordable housing. Wallowa River House is their 11 th project with OHCS. I live in
Wallowa, a town of about 800 people.

Bob Repine states for the record that, as Director of OHCS, he received a series of petition letters
that were signed by concerned citizens regarding the presence of law enforcement, the security of
the citizens around the project and issues of devaluation, which are a variety of normal general
concerns from a community that has not had an abundance of this type of development. In response,
he directed staff to verify whether there has been a historic trend of property devaluation because of
other anomalies in that community. Staff looked at the law enforcement and went through the
scenario of emergency health response issues. Most importantly, he wanted to mitigate as much of
the community‘s concerns regarding the design and its security features. He thanks the applicants
for working on the original design and creating a livable court area. In a non-intrusive way it
becomes a more enclosed area because the back is closed off to prevent the tenants from wandering.
Our partners worked aggressively with us, including architect John Czarnecki, to change the design
so the built product would fit in the area and be accepted by the community. I can confidently say
to you and on this record that I think we have addressed, to the capacities that we are permitted
legally and are responsible for all the concerns that were expressed in all the petition letters that I
received. The partners have met all the obligations and responses to our concerns. I support the
modifications that are here today.

Chair Ortiz: Were these letters received after the presentation was made by other business people
from the other two towns? Tony Chrisman: It was during the conditional use permit hearing
(which we were granted) that it became an open issue and several neighbors had issues with the
project. Tony notes that Chrisman Development received a unanimous letter from the City Council
[for] support. Bob Repine notes that the site is by the road to Wallowa Lake. Other residences are



Page 5—Oregon State Housing Council – September 30, 2005
on large parcels (not 5,000 sq. ft. lots). Nearby, the Nez Perce Interpretive Center is located on a
huge open space used for annual tribal meetings and ceremonial purposes. Chrisman: They were
very supportive of this project. Repine: The project site is in the least intrusive area of the
community and not going to be redeveloped.

Jeana Woolley: When you did this research, did you share the results back with the people who
petitioned? Repine: Yes. As we finalized our information, we corresponded with the folks to insure
that they realized OHCS was a funder, but only as long as the development met all land use
requirements and was approved by local government for siting. Our roles were somewhat limited
and we took a close look at their issues but that did not necessarily solve all the issues. We took all
the appropriate steps and do not have any out-of-compliance issues with land use laws or decision
policies.

Stephen Kliewer states that WVCW has been developing this project with the Wallowa City
Council and the Wallowa County Commissioners, who are comfortable with the project. In the last
3-4 months, he received two calls asking if WVCW received the money and when would they start
hiring. Bob Repine: This project adds a job component to the community. Kliewer states he
expects 5-9 full-time staff and one qualified mental health associate (QMHA) that will have good
living wages and benefits - a positive benefit for Wallowa County.

               MOTION: Larry Medinger moves that Housing Council approve an
               $844,779 grant reservation of HOME funds to Chrisman Development
               and Management, Inc. contingent upon meeting all HOME requirements
               and conditions of award.

               VOTE: In a roll call vote the motion passed unanimously. Members
               Present: Cooper, Epstein, LaMont, Liebowitz, Medinger, Woolley and
               Chair Ortiz.

B.      Darwin Apartments – HOME Fund Request.
Carole Dicksa presents a request of $489,768 in HOME funds for Darwin Apartments, located in
Brookings. It is an existing housing development consisting of 36 units on a two-acre site,
originally constructed in 1982. The project was originally funded through the USDA Rural
Development (RD). A physical inspection of Darwin revealed that the condition of the project is
extremely poor. The buildings have extensive dry rot, interior mold, sagging roofs, leaking
windows and many other issues. It appears that the design of the original project was not
appropriate for the harsh coastal climate of Brookings. Due to the dilapidated state of the project,
Shelter Resources decided to demolish the buildings and reconstruct the entire project. The new
development features 9 two-story buildings plus a 1,558 sq. ft. community building. Higher quality
construction will reduce exterior wear and tear. RD will allow assumption of the current 1% loan in
the amount of $403,000, and will apply the site-based rental assistance to the newly constructed
units. Additional financing includes a new permanent loan to which RD has agreed to subordinate.
Low Income Housing Tax Credits (LIHTC), Low Income Energy Assistance Program (LIEAP),
Trust Fund and HOME complete the financing package. Despite its condition Darwin is occupied
and maintains a wait list. The current residents are extremely low-income, with 25 of the 36 units
occupied by families earning less than 30% of the median income for Curry County. The site-based



Page 6—Oregon State Housing Council – September 30, 2005
rental assistance maintains affordability as residents pay approximately 30% of their income toward
rent. The current residents will be temporarily relocated in accordance with the Uniform Relocation
Act as required by the HOME program. Each family will be placed in temporary housing with any
additional rental charges or out-of-pocket expenses covered by the HOME funds. Relocation
expenses are an eligible project cost and appear to be adequately estimated. Current tenants are
encouraged to move back into Darwin after the construction is completed. She introduces Len
Brannen and Strahan.

Chair Ortiz: Questions from the Council?

John Epstein: Are you part of the original ownership structure? Brannen: No.

Chair Ortiz asks how the units were able to get into such dire condition. Brannen: From a project
specification standpoint, up front it was poorly and cheaply constructed in a coastal environment
without adequate protections. Frankly, it was a lack of attention by ownership and management.
The project is in pitiful shape. We worked with OHCS staff and an architect and went through
every unit to determine the rehab costs. The risk/reward benefit of doing that were extreme; in some
cases you would have to tear down because of potential mold issues. Then we a pproached RD and
OHCS for the resources (to rehab the project).

Bob Repine: For a project that was built in 1986, it looks 40 years old. It has a contemporary
design but no overhangs. Virtually all the windows and walls are exposed. For a coastal design,
everything is wrong to expect any kind of longevity out of it. The layout is questionable relative to
the area in the community. The new design moves the parking inside the facility as opposed to the
perimeter. There is no other land in this community that you can afford for affordable housing that
will have a longer, lasting relationship with the community. The high school, middle school, and
elementary school are on property where all the campuses are adjacent to each other and have
common space in between. It is really a very good location for family units.

John Epstein notes that the financing structure was approved last CFC. He asks why the new social
services has made staff comfortable enough to bring this project back to Council. Carole Dicksa:
For clarification, the project was actually scored high enough to be funded last spring, but staff
needed to clear up how Shelter Resources was developing services in the project. Roberto Franco
talks about staff‘s work with Len and Shelter Resources to restructure their housing services
program for Darwin and other proposed projects. They presented OHCS with a different model of
housing services, whereby they will partner with the Southwestern Oregon Community Action
Committee (SWOCAC), who provides and runs a center. SWOCAC will provide information and
referral services for their programs, e.g., food stamps, job search and job opportunities. They are
proposing legal counseling for low-income people, and periodic trainings and group meetings for
domestic violence victims.

John Epstein asks if SWOCAC has the motivation to provide services on an ongoing long-term
basis and whether they will get funding for those services. Roberto Franco: Shelter Resources and
SWOCAC have an agreement that Shelter will provide them some financial incentives to deliver
those services on site. Len Brannen adds that as developers, they are not experienced at providing
services, so they solicited good people from the local community. He notes that this type of project



Page 7—Oregon State Housing Council – September 30, 2005
has limited resources on an annual basis. Historically, we have paid a very sizable sum to service
providers as an incentive for coming in. The issue has been how you keep the incentive going for
the long term and making sure that those services continue. We tried to creatively address that as
Shelter Resources is addressing it both within and outside of the project. We have a new agreement
on multiple projects in order to make that happen long-term. Franco notes that Shelter Resources
has added to their housing development/residence services program a management person to
oversee and work with the different service agencies in the projects to insure the flow of
communication and that the residence services plans that they have proposed are being
implemented. Brannen: And reported on.

Bob Repine discusses OHCS‘s work with Shelter Resources to enhance its service philosophies.
Shelter has a large portfolio with OHCS. Len reorganized his operations and created a service
element within his structure. We feel very comfortable that he has laid the template out of what that
service should do and how it should work. We are ready to release this project.

Scott Cooper asks how residents will be relocated, given the 1.5% vacancy rate and the cost of
properties in Brookings. Carole Dicksa: The temporary relocation is the most difficult aspect of
the project because of the lack of available housing. Shelter Resources will do it building by
building. The residents will continue to pay the same rent that they pay at Darwin Apts., but
because the temporary housing is more expensive, the difference will be paid through the HOME
fund as is required by the Uniform Relocation Act. If they stay in units without cooking facilities,
they will be compensated for meals. Brannen adds that Shelter Resources hired a local broker who
does property management. Although no tenants have been relocated because Shelter is going
through construction loan closings, they have already rented some temporary homes because they
may not be available later. Those will be supplemented with any available kitchenette motel rooms.
The $290,000 for relocation costs involves packing the belongings of the tenants, moving them with
bonded movers and retaining them there for nine months.

Jack Kenny: Who is the property manager? Brannen answers that Neal Management has managed
the property to date for three years and has had reasonable experience with OHCS. Bob Repine
points out that Neal Management is relatively new to Darwin Apartments and was probably the
people who improved the buildings.

               MOTION: Jeana Woolley moves that Housing Council approve a
               $489,768 loan reservation of HOME funds to Shelter Resources,
               contingent upon meeting all HOME requirements and conditions of
               award.

               VOTE: In a roll call vote the motion passed unanimously. Members Present:
               Cooper, Epstein, LaMont, Liebowitz, Medinger, Woolley and Chair Ortiz.

VI.     OLD BUSINESS. A. Community as Customer Initiative. Jack Kenny reports that the
second and final part of the Community as Customer Survey of 10 mayors‘ opinions about
affordable housing development is on page 27. Due to the small number of responses, he cautions
that the survey is not comprehensive or statistically valid, nor does it reflect on the performance of




Page 8—Oregon State Housing Council – September 30, 2005
the Regional Advisors to the Director. Some of the planning staff that was interviewed stated that a
project might see turnover of 2-3 mayors from its planning phase to rent up.

Lisa Joyce gives an overview of the Final Report. She reviews the Key Findings on page 27, lines
13-16 from mayors who responded to the survey.
 Local business does not support affordable housing;
 Local residents do not support affordable/workforce housing development;
 State policy presents a barrier to affordable housing; and
 Affordable housing development helps the economy.
The mayors who knew about OHCS feel they have a strong partnership with the agency, it just
depended on their experience. People have opinions that are divorced from any real experience
when they haven‘t had an experience with people with disabilities, for example, or with this agency.
That belief is generally more positive when those opinions are replaced by an experience. Scott
Cooper: What percentage knew about OHCS? Joyce guesstimates 40% as some did not respond.
She talks about the themes that came out during the survey (pages 27-28). When asked to identify
the top three housing needs of their communities, many mayors pointed to the need for home
ownership versus rental developments. The theme of ownership came through a lot. Finally, when
folks were asked to write a definition of what affordable housing was, often that definition didn‘t
have anything to do with their area median income. It was ―houses that people can afford to buy.‖
She talks about an Advocacy Campaign, Spokespeople and Information to gather for a campaign.
Council and staff could engage in addressing the negative perceptions about affordable housing and
replace them with a more positive reality, and heighten awareness of what the agency does and the
role of affordable housing in the community. For instance, the Neighborhood Partnership Fund
identified Food Banks as effective in addressing these issues among the general public; a business
person might place more credence on messages delivered by peers, or a trio of speakers such as Bob
Repine, Housing Council member and a community partner. The RADs could be a resource. She
talks about the messages to get out.
 Identifying first, what are the local needs for housing.
 What are those demographic shifts that are occurring in the State that are going to increase
    the demand for affordable housing and impact the availability of affordable housing?
 Poverty data, and bigger than just what the federal definition of poverty is. In our Poverty
    Report we built a basic family budget and it really demonstrated that you had to have two
    working people to really afford a decent lifestyle in many of Oregon‘s counties.
 Success stories to share. There are many communities around the state that have good stories
    to tell about what housing has done and what that project has meant to their community.
Tactics that Council might consider:
 Editorial Board Visits.
 Visiting the Chamber of Commerce and other service organizations.
 Writing a response to data that comes out. For example, if a study were to come out about
    housing affordability, OHCS could respond by identifying the problem and what the agency
    is doing about it.
 Increasing the use of media release; responding to national stories.
She discusses the detailed responses on page 30.

Scott Cooper talks about the mayors‘ definition of affordable housing and how that might be the
problem as to why we are not able to deliver on our expectation, given the design of our


Page 9—Oregon State Housing Council – September 30, 2005
programs and what we are trying to do. The dialog needs to be changed so people understand we
are trying to reach out to deserving populations that won‘t be able to find a house, shelter or
lodging, and make sure that those folks are taken care of, with emphasis on the words
―deserving” and ―gaps”. We need to redesign our terminology before we try to sell our product.

Stuart Liebowitz: What do we want to say, who we want to say it to, and how do we want to
say it. The concept of the ―deserving poor‖ has been a cultural thing for years. The two
presentations we just heard would not fit into the ‗deserving poor.‘ These are very low-income
people or mentally ill and we have traditionally served disproportionately those populations.
Today, folks talked about urging a local partnership and are willing to step out in front on the
mentally ill issue. They would be prime spokespeople to talk in other areas and say, this is not
only non-threatening to your community, but it is actually embraced by your communities, once
they understand the how and why.

Larry Medinger: The broader community is a main thread of this initiative. There are many
affordable housing issues that are beyond that and not specifically for the very deserving of
society. In Oregon, people live 20 miles away from where they work because the housing is
affordable where they live. I see us as a possible player in trying to solve some of those
problems so we are not dependent on the commuting public to solve housing affordability. It is a
tremendous social dysfunction, when workers are strangers in the community where they work.

Chair Ortiz asks Lisa about the response, ―Some indication that mayors believe state policy
presents a barrier.‖(Pg. 30, line 15). Lisa Joyce responds that everybody loves their local thing but
believes that a higher level of government is the barrier. Chair Ortiz: Bob suggested that Oregon‘s
land use policy is a barrier. The reality is that the new housing being built is not subsidized and not
affordable to the community we are trying to work with. He notes that at various meetings he has
attended that the acceptance of bringing an affordable project to a community depends on the
organizations that bring it in and the population to be served. He discusses having some
enforcement of the comprehensive plan that requires ‗x‘ amount of stock available to do these types
of projects, or some projects will never get done.

Bob Repine talks about his experience with mayors in rural and urban settings. The mayor‘s
position in many communities is a reflection of confidence by the citizens. When the RADs
responded to this survey, they saw the mayors and/or city councils members as the people
engaged in policy discussion and delivering the message. They saw consistency in the planning
department and the development sector of all communities.

Jeana Woolley: Is there any money in the budget for public education in support of these
recommendations and to develop a campaign identifying the people who need affordable housing
in each community? Jack Kenny: Yes. We knew going forward that if we were going to take
affordable housing to the next level in the state in terms of providing it that we would have to do
the targeted outreach. He suggests that Council perhaps do a demo project. Woolley talks about
how to get people‘s attention by developing messages that have emotional weight. Our public
relations effort would need to have stories about individuals around the state who really have
benefited so that you dispel the notion of who is ―deserving‖. Kenny agrees. OHCS‘s Housing
as Economic Stimulus booklet has a lot of facts for people who learn from facts and who will



Page 10—Oregon State Housing Council – September 30, 2005
support funding based on facts. It also includes human-interest stories. Woolley suggests a video
presentation that shows a broad cross-section of special populations or groups of people
statewide that come from different circumstances who are being served by affordable housing
and projects funded by OHCS. After the video, staff can discuss facts and figures. Lisa Joyce
talks about the benefits of long-term relationships and developing grass-roots networks. Woolley
notes that would be the follow-up discussions with community policy leaders to create coalitions
around moving affordability issues in the housing sector forward. Kenny: I think we can do that.
He talks about working with the Coalition of Affordable Housing, an advocacy group.

Scott Cooper talks about institutionalizing OHCS‘s message to help people understand what the
agency is doing and has done. For instance, staff could mail out the Single Family Section‘s
reports on a scheduled basis to 36 major media outlets to show the number of people that we are
helping in each community and the number of single-family home ownership loans done. The
Poverty Report should be printed every year and sent out county-by-county, especially since the
Oregon Progress Board has been abolished. Then follow-up with Housing Council presentations,
and Chamber and editorial board visits.

Stuart Liebowitz talks about Council and staff ―connecting the dots‖ to show how rental
housing can be viewed as a stepping-stone for healthy communities and individuals. Resident
services can provide renters the education and stability they need to move up to that home
ownership level at some point.

Larry Medinger talks about limited resources and leveraging other people‘s dollars and getting
communities motivated to deal with their own specific problems. Council and staff could work in
a leadership and education role to help them solve their own problems.

Chair Ortiz: Do we want to continue this at another time and move on with the agenda?

Bob Repine: There was a motion about advocacy. We can take the information we have heard
today and if you give us that directive to go work on it, we will then come back to you with some
ideas. For instance, doing media coverage or reviewing how the Poverty Report is produced.

Larry Medinger expresses his support for Cooper and Woolley‘s ideas but would like Council
to be open to all kinds of strategies. He would support a motion to develop this along the lines of
advocacy and education and so on. Bob, are you saying we need a motion?

Repine: In this discussion with the Council, if the Council believes that this is something you
want us to follow through on, this is where we start engaging you in the discussion. So having
some confirmation of ‗continue and report back to us‘ is what we‘d like to hear at this point.

Chair Ortiz: I don‘t think that there‘s any question that we want to continue this. This is our
whole mission here. What do you need from us to tell you to continue?

Jeana Woolley: Input is needed from this body about what course to take based on ideas heard
today. She suggests a Council Subcommittee to work with staff on a larger discussion, or if at
this level, putting it on the agenda again. Council should help develop the way you're putting



Page 11—Oregon State Housing Council – September 30, 2005
together ideas of what you think you heard. Or if we don‘t need a larger discussion, if the whole
Council wants to be engaged, at this level it needs to be on the agenda again.

Maggie LaMont states that not all of the Council members were present when a facilitator came
in and helped Council set real specific goals last year. She recommends scheduling a meeting
soon so Council can narrow the steps down and prioritize the good ones.

Jack Kenny agrees that having a subcommittee is a good idea. He recaps Council‘s comments.
 Chair Ortiz and Larry discussed land use, setting policy and empowering communities with
    tools to provide incentives.
 What kind of financing mechanisms are out there?
 Should we be supporting bungalow housing or something so that home ownership can be
    back to where two wage earners making a decent wage can actually buy a house in Oregon?
    Why isn‘t that happening?
 Is there a role for the Council as the policy experts?
 Stuart discussed underserved populations and people with high needs. We need to change our
    mayors‘ surveys so that they realize that is part of being a community leader — taking care
    of those in high need.
 Jeana‘s suggestion about how do we get those success stories out about how a community
    was helped. Here‘s how they helped each other.
 Scott suggested institutionalizing a consistent message of who we are and what we do.
Jack suggests putting together subcommittees and then taking their recommendations to a
facilitated meeting with staff to determine whether staff has the budgetary or statutory authority
to implement the subcommittee‘s recommendations.

Woolley moves that Council support Jack‘s suggestion that a subcommittee, self-selected, would
work with Lisa Joyce to develop and refine Council‘s ideas and then bring them to the full group
to be processed. A time frame should be developed and deadlines set. Kenny offers, with Lisa
Joyce‘s help, to draft a mission statement for the sub-group. It would be sent to Council and after
volunteers stepped forward, a meeting would be scheduled. Ortiz: Does Lisa have the time to
work on this, and [does] Jack? Repine: Mr. Chairman, you need to codify the motion and see if
there is enough support for it.

       MOTION: Woolley moves that the Council work with staff to develop ideas to
       bring back to the Council on how to implement the Committee as Customer
       Initiative.

       VOTE: In a roll call vote the motion passed unanimously. Members Present:
       Cooper, Epstein, LaMont, Leibowitz, Medinger, Woolley, and Chair Ortiz.

Chair Ortiz announces a break.

VII. SPECIAL REPORTS. A. Personal Financial Modeling.
David Foster introduces himself as OHCS‘s policy strategist and distributes several handouts. The
Changing the Poverty Equation – Workings Towards a Culture of Thriving handout includes an
abridged version of a more thorough paper that‘s in development about changing the poverty


Page 12—Oregon State Housing Council – September 30, 2005
equation, along with other attachments related to Individual Development Accounts (Ides). The
paper reveals that non-thriving is the default condition of all living things. Poverty is the natural
and very expected outcome where a culture fails to construct a strong and integrated foundation of
values and tools to assure individual thriving. Thriving requires these elements to be carefully
woven into individual, family and societal roles. It also demands both developmental ("preventive"
strategies) and remedial tools, what some people call crisis management or assistance. Richard
Bjelland was asked to create a Personal Financial Asset Building Calculator, which was within the
context of our asset building initiatives, that would allow individuals and families to explore how
setting aside small amounts each year helps them accumulate the financial resources for long-term
goals like homeownership, saving for college, and a secure retirement.

Richard Bjelland reports on the Using the Personal Asset Building Financial Planning
Calculator (Calculator). He explains that David Foster asked him to develop a tool that would
assist people in creating an asset building strategy. As the Calculator was developed, it became
more apparent that it had many applications far beyond those looking at participating in an asset-
building program. The tool uses life stages as a vehicle to examine different periods. There are
five life stages identified as critical periods of time which have different characteristics as far as
the capacity and the ability for people to either make contributions or the likelihood that they
would make withdrawals from their asset accounts. Those periods are: 1) Child aged 0-13; 2)
Youth aged 14 to 18; 3) Young Adult aged 19 to 25; 4) Adult aged 26-50; and 5) Adult: aged 51
and over. He explains different scenarios that an individual might use the Calculator during any
one of those periods. The Calculator is structured so that you can explore the impact of incentive
matching programs that might be available to people who are attempting to create assets for
future life needs. Another important aspect is the fact that you can have different contributors to
an individual‘s asset account – family members or even a charity or social programs.

The Personal Financial Planning Calculator sheet, Housing Council 1, is a scenario that might
be used by someone who wants to build up assets to purchase a home and build up money for a
down payment. One of the advantages of this is that it allows people to quickly test out the
impacts of trying to test out various savings strategies and is flexible enough that you can
determine any amount at any time when you want to make withdrawals. There are two types of
withdrawals: either a monthly withdrawal or you can purchase an annuity. The calculator will
automatically calculate, based upon age when the annuity is purchased and the term of the
annuity, how much annuity payment you have due to you based on your asset balance in your
account. The second sheet uses the same assumptions but then plugs in whether they were able
to participate in a match program through an asset building strategy. David Foster has been
working on developing that concept. It is actually in existence for qualifying individuals where if
they agree to create an asset account, then there will be a matching amount up to some maximum
amount. Just by comparing the two, you can see the impact by having an asset matching account
program available, and the impact on an individual‘s future financial situation. There has been
discussion that this would be an excellent tool that schools could use, in high schools in lifestyle
courses, to show the power of a savings program. By taking some fairly small steps today, you
can have a significant impact on your future financial viability.

David Foster: This is a teaching tool that we are intend to build into our financial education
programs with the IDA strategy that we‘re implementing. We hope that the Housing Authorities



Page 13—Oregon State Housing Council – September 30, 2005
and their Family Self-Sufficiency Program would implement this. It is going to be web based in
about 2 weeks.

Bob Repine adds it‘s his dream to see the Department of Education and school districts once
again start teaching students about ―asset building‖ as opposed to ―asset expenses‖.

John Epstein: What are the incentives to getting an IDA? David Foster: In the state of Oregon,
we have the ability to take their savings up to a certain limit and match it. The ORS allows $1 to
$5 dollars, but virtually all the programs are either at $2-$3 depending on the asset class in which
they are participating in. Scott Cooper: Do they get $1 for every $2-$3 they save? Foster: $2 for
every $1. Cooper: Is there a tax credit that funds that? Foster: Correct. The state‘s initiative is
funded by a tax credit that you can all contribute to - a 75% state income tax credit.

Jeana Woolley: Is anything planned in terms of making people aware that this tool is there? For
instance, you said the Housing Authorities could use this tool with their Family Self-Sufficiency.
She suggests hosting a presentation to youth organizations (other than sports) on how to use this
tool with their clients, e.g., the Girl Scout Councils. David Foster responds that staff will
approach the 2007 Legislature because current Oregon Revised Statutes don‘t easily
accommodate youth within the structure. At $660,000 per year, staff was limited on what they
were able to do. However, staff hopes to be close to $2 million this year in available funds.
Bjelland: We‘ve been having some discussions about having perhaps a booklet or pamphlet
prepared which illustrates the tool and how it could be used. Woolley discusses connecting the
tool to a school initiative and whether there could be a one-time state match to their account if
they could demonstrate some ability to save up to a certain point. David Foster notes that he
recently sent to folks, who work with youth, a rough draft of a Youth IDA strategy that will be
proposed to the 2007 Legislature. Richard Bjelland adds that he has been working on the
changing demographics that are taking place across the US and in Oregon including the impact
of students not completing their education. Woolley asks to see the Youth strategy.

VIII. REPORTS
A. Report of the Chief Financial Officer - Rick Crager
       Bond Calendar. Conduit Loans. OHCS successfully closed 5 conduit transactions for the
Guardian Management projects that were approved by Council on August 26, 2005. The closings
were complex, yet 5% was obtained on the long term and a range of 4.7%- 4.8% on the short term
piece. The Redwood Apartment transaction is scheduled to close October 3, 2005. This transaction
has a variable rate issue where the sponsor will enter into an interest rate swap to hedge that
variable rate risk. For the record, that is their interest rate swap and not our interest rate swap that
they are looking to engage in. Single Family. Staff is working on a single family deal.
Reservations continue to come in consistently. We do need to get a transaction done in the first part
of November. We may have to do a little recycling with some of our Pre Ulman recycled loan
proceeds because we‘re going through the reservations pretty quickly. Multi-family. We may look
at a deal at the end of the year.
       OHCS Report to Housing Council – Status of Current Resources – As of September 15,
2005. At the August Council meeting, Jeana Woolley had asked for a report on OHCS program
resources that Council was authorized to approve at their monthly meetings. He gives a basic
summary of the major funding types and staff‘s forecast of 2005-07 revenue sources and how



Page 14—Oregon State Housing Council – September 30, 2005
they will be allocated through the CFC or outside the CFC, the multifamily loan program, the
single family loan program and regional housing centers. DHS passes $1 million in General
Fund to OHCS for our Alcohol and Drug-free housing. In addition, OHCS receives other fund
resources for HELP, the Low-Income Housing Tax Credit (LIHTC) program and the Oregon
Affordable Housing Tax Credits (OAHTC). Our Multi-Family, Elderly & Disabled and Single
Family programs fall under our tax exempt bonding authority. The Housing Development &
Guarantee Account (the Trust Fund) receives its resources from our public purpose charge
money that we receive from utilities. Finally, the Housing Weatherization Grants (ECHO)
receives a portion ($1.9 million) from the public purpose charge money and is allocated for
weatherization dollars through collaboration with our Community Resources and Housing
Divisions.

Scott Cooper leaves Council meeting at 12:50 p.m.

Jeana Woolley thanks Rick for his report and notes how helpful it is has been for her. She suggest
that the ―available revenue,‖ be added to his spreadsheet. If you had a line that indicated how much
has been committed or granted to date, you could see what is left with a balance. Crager answers
that this report covered uncommitted resources at this point, but that line item will be added.
        Enterprise Funds Annual Audit. Crager states that OHCS‘s financial statements are tied
to the agency‘s bond activity. In fiscal year 2004, the portfolio was down nearly $15 million. In
reviewing the unaudited financial statements, he notes the agency is up $7 million. The Enterprise
Fund has two parts: the Elderly & Disabled Loan Program (always successful and the majority of
the $7 million increase) and the Housing Finance Fund, which consists of single family, risk-
sharing loans and multiple purpose bonds, which broke even this year.

B. Report of the Deputy Director – Jack Kenny
       OIG Audit Update. Staff recently met with HUD in Portland regarding their demand that
OHCS pay them $3 million in 30 days. HUD has backed off from that demand and is re-
analyzing their legal claim against OHCS with their attorneys in Washington, D.C., and whether
they can legally claim these funds from OHCS. He commends Dawn Voelker and her staff for
their work in this area.
       Katrina Relief Efforts. He discusses OHCS‘s part in the State‘s hurricane relief efforts
relative to housing. Evacuees are expected to move into Oregon; federal relief agencies and
other organizations have provided information about vacancies. OHCS has information on its
website and a toll-free 1-800 number is available, and food has been made available that can be
redirected to evacuees. Jack commends Dawn Voelker and her staff in Asset and Property
Management; Jodi Jones and Martha Lyon in Community Resources; and Betty Markey in
Housing Resources for all their hard work and quick responsiveness to this crisis.
       Preservation. OHCS finally received a response from HUD last week. He notes that a
project may come before Council in December. Bob talks about how Rick will structure the deal:
making a loan out of proceeds before he sells bonds. If Council approves the loan, it be for the loan
and not based on a bond sale.
       Visitability Rules are one-year old and staff has been meeting with external partners to
review those rules. This issue was discussed during the 2005 Legislature and how it impacted the
cost of affordable housing. He promises to report again on this issue in the future.



Page 15—Oregon State Housing Council – September 30, 2005
       Manufactured Home (MH) Park Closures. OHCS has been in the news recently about MH
park closures and the displacement of residents in Oregon. Jack reports that staff is taking initiative
and looking at models from other states (Vermont and New Hampshire), as to how MH park
residents are purchasing their parks. He notes that the success of this issue in Oregon will be
dependent upon how organized residents can become when faced with a MH park closure.

C. Report of the Director – Bob Repine
        Community Development Block Grant (CDBG). OECDD held a Community
Development Forum hearing on August 17 regarding changes to the CDBG Program. Bob
distributes Bob Gillespie‘s letter dated September 1, 2005 to Mary Baker at OECDD. In the
letter, OHCS asks OECDD to maintain the permissible use of CDBG funds for off-site
infrastructure at OHCS‘s affordable housing projects. The letter was copied to Gordon Fultz at
AOC. Bob notes he has asked Scott Cooper for his help as well. The public notice period closes
today. Next, OECDD will go to a recommendation process.
        National Trust for Historic Preservation Conference was held September 27 – October 2
in Portland. OHCS was a sponsor. Both John Czarnecki and Vicki Dugger from the Oregon
Downtown Development Association staffed the booth. He notes that John, who is Chairman of the
Portland Society, Design Committee, shared information relative to our housing investment in
historic buildings. ODDA participated to talk about their mission of redeveloping in downtowns.
Bob distributes and discusses handout Wise Use of Our Historic Resources.

C. Report of the Chair.
Chair Ortiz asks staff to report on their findings regarding the high vacancies at the Sandy Vista
project. Jack Kenny answers that he contacted Catholic Charities (CC), who said that the issue
involves RD‘s definition of migrant housing. Apparently, after some tenants had been there a
certain amount of time, their status changed to farmworker as opposed to migrant, so they lost their
RD subsidy. CC is working with RD to see if they couldn‘t expand the number of units that were
non-migrant or if they could get some kind of waiver or relaxation on how to define migrant. Ortiz:
There‘s a dire need for the housing. Bob Repine: I am meeting with RD‘s new Executive Director
Mark Simmons next week. I will bring that up.

Chair Ortiz: We are adjourned. 1:07 p.m.




__________________________________            __________________________________
Buz Ortiz, Chair             DATE             Bob Repine, Director        DATE
Oregon State Housing Council                  Oregon Housing & Community Services




Page 16—Oregon State Housing Council – September 30, 2005

				
DOCUMENT INFO
Description: Income Tax Calculator for State of Oregon document sample