ULI Houston

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ULI Houston
Galveston Housing Recovery Technical Assistance
Panel September 15 - 16, 2009
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About the Urban Land Institute
The mission of the Urban Land Institute is to
provide leadership in the responsible use of land
and in creating and sustaining thriving
communities worldwide. Founded in 1936, ULI is a
501 (c) (3) research institute with more than
30,000 members.
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About this ULI Technical Assistance
Panel Chairman Brian Roop Senior Vice
President Bank of America Dallas
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About ULI Advisory Services
Advisory Services ULI advisory services panels
provide strategic advice to sponsors on land use
and real estate development issues. Panels link
developers, public agencies, and other sponsors
to the knowledge and experience of ULI and its
membership. Established in 1947, this fee-based
program has completed over 500 panels, in 47
states, 12 countries, and 4 continents. Sponsors
praise panels for their comprehensive, pragmatic
approach to solving land use challenges.
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Panelists and Areas of Expertise Laura Bailey,
Managing Vice President, Community Development
Finance, Capital One Bank Finance /
Development Strategy Pamela Minich, President,
Minich Strategies Market Feasibility/ Market
Research James Noteware, President and CEO,
Noteware Development Development /
Implementation Strategy Donald Sampley, Assistant
Director, City of Houston Community Development
Dept. Public / Private Partnership Strategy Ray
Stanland, PhD, AICP, Founding Principal, Stanland
Associates Urban Planning / Implementation
Strategy
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Our Assignment The Long Term Recovery Committee
gave the ULI Technical Assistance Panel an
assignment to answer these questions
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How do we increase housing for middle-income
homeowners and improve workforce and public
housing in Galveston? How do we create
incentives to spur new development and renovation
of existing properties that align with the Vision
as articulated in the Long-Term Community
Recovery Plan and the current Galveston
Comprehensive Plan?
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What is a sustainable housing development for
Galveston Where is it? What type of housing?
What is the price point? When / how should it be
built? Who should build it? How do we increase
the percentage of home ownership in
Galveston? How do we unify ULI panel
recommendations, Galveston Long Term Recovery
Committee's recommendations, CDBG request and
other plans to come up with a unified mixed
income, mixed use development plan?
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A Simplified Statement of Our
Assignment Increase and Improve Galveston
Housing
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This Panels Process

• Reviewed ULI National Advisory Panel work and
  findings
• Reviewed Citizens Long Term Recovery Committee
  Report
• Held Background Briefing and Site Tour
• Supplemented previous work with qualitative
  interviews
• Discussed, debated, deliberated
• Presented recommendations today, will publish
  written report of findings

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The Panel Process
The ULI National Advisory Panel recommended
formation of a Redevelopment Authority.
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The Technical Assistance Panel thinks
Revitalization Authority is a more
appropriate title and scope
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• Market Research
• Pamela Minich
• Middle Income and Workforce For-Sale Housing
• Household income 25,000 - 75,000

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• Strategic Market Research
• Supply
• Existing inventory of single family housing
• Need a detailed inventory, including price point
  and location
• Demand
• Lack understanding of unmet demand, latent
  demand
• Hypothesize island employees living off island
  employees in nearby cities

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• Demand Drivers
• Employment opportunities on island
• Lifestyle factors historic, outdoor recreation,
  natural beauty
• Limitations
• Quality of public schools
• Inadequate infrastructure
• Higher relative housing cost
• Limited retail and personal services

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• Primary Target Market
• Households without school-aged children
• Recommend Strategic Market Study
• Statistically defensible
• Quantify home buyer demand by location, housing
  type, price, size, features and neighborhood
  amenities
• Include employees and residents on island and
  nearby

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• Market Opportunity
• Compare detailed demand information with existing
  supply
• Identify best opportunities for increasing home
  ownership
• Likely result need for both existing and newly
  built single family housing
• Ideas for stimulating for-sale housing demand

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• Development Strategies
• Laura Bailey/ Donald Sampley
• Encourage Full-time Resident Homeownership
• Improve / Protect Infrastructure
• Subsidize Lot Costs to Developers Who Build to
  New Code and Architectural Control
• Repair Grants Up To 50,000, Forgiven Over
  Residency Period
• Weatherization and Energy-Efficiency Grants

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• Encourage Full-time Resident Homeownership
• Deed Restrictions with Anti-Flip Provisions
• Downpayment Assistance Up To 50,000 / 120 AMI
  with Residency Period and Upkeep Requirements

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• Improve Rental Housing
• Code Enforcement
• Ordinance Requiring Registration and Management
  of Property
• Regular Cycle of Inspections
• Repair Grants up to 50,000 for Single Family
  Rental Home, 30,000 per Door for Multi-family
  Property

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• Distribute Affordable Housing Through Larger
• City Area
• Will require cooperation between Revitalization
  Authority and Galveston Housing Authority
• GHA would need to receive compensation for sites

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• Build New, Mixed-Income Communities With High
  Design Standards
• Hope VI Grants
• Tax Credits
• Incomes Range from 30 of AMI 120 of AMI

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• Implementation Strategies
• Jim Noteware, Ray Stanland
• Challenges
• Federal Requirement to Replace 569 Units
• Optimize Land Resource (availability / condition)
• Inventory of 9,000 Vacant Homes
• Adequacy of Infrastructure
• Strategy and Vision
• Focused Management

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Three Action Items and Priorities 1.
Acquisition and Preparation of Land Address
vacant inventory Assemble land for residential
reuse 2. Neighborhood Revitalization
Strategies Core Project (s) Neighborhoods
Throughout City Results in Sustainable
Neighborhoods
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3. Create City Revitalization Authority Define
Roles and Responsibilities Capacity/Focus
Priorities City AgencyReports to City Manager,
Works with City Manager, Housing Director
and GHA Appoint Advisory Board / Civic Leaders
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• Revitalization Authority Functions
• Bring money, land and deal making capacity
  through power of public private partnership
• Focus on housing, commercial and economic
  development
• Brings together land, financing and deal making
  capacity
• Nimble, transparent, entrepreneurial
• Models (Pittsburgh, Cincinnati, Baton Rouge,
  Chattanooga, Mississippi Gulf Coast)
• Partner with other nonprofit development agencies
  and local foundations
• Sophisticated market intervention strategy
• Coordinate City, County, Army Corps, Park Board
  and other
• Pro-active approach

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• Revitalization Authority Powers
• Power to contract
• Power to manage and provide
• Economic development financing
• Commercial development financing
• Housing financing
• Power to contract with other development partners
  (Historic Galveston, Galveston Housing Authority,
  Galveston Business Incubator)
• Power to create Land Bank

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• Revitalization Authority Structure
• Governance
• 5-11 members
• Elected leaders, business leaders, community
  leaders
• Appointed by Mayor, approved by Council
• Professional staffing that can
• Assemble resources and capacity to capture fair
  share
• Layer various funding streams and resources
• Use public resources to leverage private
  investment
• Secure resources from diverse sources

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• We thank our sponsor,
• The Citizens Long Term Recovery Committee
• And its chair,
• Betty Massey
• working in cooperation with
• The Galveston Housing Authority
• We welcome your questions.