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2022-02-24 REVISED TOWN OF BERLIN SPECIAL JOINT MEETING OF THE BERLIN PLAN OF CONSERVATION AND DEVELOPMENT COMMITTEE AND BERLIN AFFORDABLE HOUSING PLAN ADVISORY COMMITTEE SPECIAL MEETING MINUTES THURSDAY, FEBRUARY 24 AT 6:00 PM IN PERSON BERLIN BOARD OF EDUCATION 238 KENSINGTON ROAD BOARD OF EDUCATION CONFERENCE ROOM AND VIA ZOOM VIDEO CONFERENCE AND CONFERENCE CALL 1. Call to Order Chairman Millerd called the meeting to order at 6:00 p.m. 2. Pledge of Allegiance 3. Roll Call Attendance: Affordable Housing Plan Advisory Committee Members Present: Amy Balko, Robert Dombrowski, Ann Gamelin, George Millerd Members Absent: Christopher Coppola, Tracy Shipman, Tracy Sisti Plan of Conservation and Development 2023 Committee Members Present: Sandy Coppola, Diane Jorsey, Brian Rogan, Joan Veley, Peter Zarabozo, Timothy Zigmont Members Absent: Jon-Michael O’Brien, Steven Biella Jr. Staff Present: Arosha Jayawickrema, Town Manager Maureen Giusti – Acting Town Planner James Mahoney – Economic Development Coordinator Jennifer Coppola – Corporation Counsel Francisco Gomes - FHI Studios Consultant Eric Halvorsen, VP and Principle, RKG Associates – Sub consultant on the project 4. Presentation by and discussion with FHI Studio, RKG Associates, Inc., Town Staff, and Counsel Regarding the 2022 Berlin Affordable Housing Plan to include review of the following: A. Connecticut Affordable Housing Requirements Francisco Gomes - FHI Studios Consultant said the POCD project schedule is a parallel process with the Affordable Housing Plan and the Plan of Conservation and Development. The Affordable Housing Plan has a more urgent deadline and we want to get that passed in the next couple of months because it is due to the state on June 1. There is more time on the POCD and we plan on finishing that by year end. The Affordable Housing Plan requirement is a fairly new requirement imposed by the state upon municipalities across Connecticut. The state is requiring every town and city produce, or update a plan at least once every 5 years. The plan has to identify how the town or city will increase the number of affordable housing units within a municipality. It is a public process, the plan has to be made available to the public for review for at least 35 days. It is recommended to regularly update and maintain the affordable housing plan. The state wants it to be used as a reference and guide. The plans are starting to take shape across the state. About a quarter of the towns in Connecticut have produced a plan and they vary quite a bit. There is some recent guidance that was issued by the Regional Plan Association (RPA) and Connecticut Department of Housing. It provides an outline for things that should be included. We are following this and it is going to be our playbook. We will assure this plan addresses all of the key issues and looks into all areas that the guide advocates. The Affordable Housing requirement, Connecticut 8-30g compels every town and city in Connecticut to work towards achieving, or maintaining an affordable housing stock of 10%. The state has a very strict definition of what affordable housing is and it must meet specific criteria. Towns and cities that do not have 10% affordable housing stock, or do not make sufficient progress towards that goal to qualify for a moratorium are vulnerable to development applications for affordable housing that bypass your zoning regulation. It is undesirable to not have control over what is going to be built, how dense, where it is located and what it looks like. That is an extra incentive to ensure that you hit the 10% mark and hold it, to maintain control over residential development applications. Berlin is just shy, at 9.24%, however the town each year does an inventory and submits paperwork to the state. Next year’s numbers are going to include the 2020 census estimates which show more housing overall in Berlin. That reduces the share of affordable housing, so that gap is going to widen by the new census data. There are a lot of projects and housing units in the pipeline. It is feasible that the town can close that gap and cross the 10% threshold and stay above it, but it needs to stay proactive in doing so. Affordable Housing is defined as housing that is deed restricted. If it is rental housing, it can only be rented to households earning a certain income. The formula for that is equal to, or less than 80% of median household income for the area. For deed restricted ownership the sales price has to be within a certain range to be affordable to that same group of people. It can also be government assisted housing and there are various tax credit programs and low-income programs. Tenant Rental Assistance Programs (RAP) and Housing Choice for Section 8 housing vouchers also qualify, as do subsidized loans such as CHFA and USDA loans. Those are the units that contribute and areas that will be a focus of this plan, increasing the number of housing in one of those programs, or one of those deed restricted type of housing. B. Berlin’s Affordable Housing Stock and Trends The Berlin Housing Authority was established in 1978. Marjorie Moore Village and Percival Heights senior housing was developed in 1982. Some senior and age restricted housing was developed in the early 2000’s. Also, in the past decade, Fieldstone Crossing and River’s Edge which is 100% affordable, Newport Center is 25% affordable and Percival Avenue Housing Authority is age restricted affordable. Deming Ridge and 404 Berlin Turnpike have been approved and those are mixed use at 20-30% affordable. Other developments on the Berlin Turnpike are application pending, or expected, 550 and 1696 Berlin Turnpike and 309 Main St. and those would be in the same range. The units don’t count until they are actually built. Some factors in considering where affordable housing would be most appropriate include where you have sewer and water infrastructure to support the density. Affordable housing is more dense because it is more economical to build in that way. Where impacts to establish single family neighborhoods would be minimal and in proximity to other infrastructures such as transportation, roads that have capacity to carry vehicles necessary to serve the development, or proximity to transit. Also, in proximity to other goods and services such as grocery stores that people can easily access. There are some other factors, but these are the general ideas when you think about locating affordable housing that should be considered. In 2010, Berlin had a little over 8k housing units and total amount of housing units is 752. That is comprised of government assisted units mostly, 50 tenant rental assistance, 142 CHFA loans and 4 deed restricted units. Other types of housing might also be deed restricted. There are 138 non-exempt municipalities in Connecticut, including Berlin, that are not above that 10% threshold and Berlin is at the very top being very near 10%. Affordable housing has been growing over time and Berlin as a community is doing much better than the state as a whole in growing its affordable housing supply. Berlin was at 7.2% in 2011 and a decade later it is at 9.24%. Berlin is headed in the right direction. The key and challenge is to continue moving up in affordable housing supply. The 2002 numbers were about 3% with a lot of growth in the early 2000’s. That flattened out a little over the past decade, but fairly positive growth. There was a dip in 2010 as a result of the 2010 census coming out with an overall higher housing unit count. The share of affordable housing shrunk comparably and it took a couple of years to get caught up. Chairman Millerd said when you look at the 142 CHFA affordable units, CHFA are mortgages on the house and they are in in flux all the time. If someone with a CHFA mortgage sells their house, the new owner might not get a CHFA mortgage. Also, the committee spoke with bankers and CHFA loans are currently almost non-existent. No one will take a CHFA loan and wait for the long approval process with so many people making offers on their house, so that is in our disfavor. When we talk about affordable housing, we do have to meet this rigid requirement from the state, but if you look at the landscape of Berlin, there are a lot of other houses that would fall into the affordable range if they had the right criteria associated like deed restricted. There may be opportunities to some level of incentive by agreeing to deed restriction. That is also an option to get the numbers up. The trailer park units on Deming Rd. are affordable, but not deed restricted. Those are some of the other things to think about. Commissioner Veley asked with affordability and deed restriction, does the deed restriction expire after so many years? FHI Studios Consultant Gomes said it does, 30 years is typical, but some are shorter. Economic Development Coordinator Mahoney said Connecticut 8-30g requires 40 years, but a lot of our deed restricted units are much more than 40 years. Orchard Ridge for example, because CHFA is financing these units and they require, or favor longer deed restrictions. A lot, if not all, are much more than 40 years. There are no units that are expiring and we have some time on the ones that are already deed restricted. Commissioner Veley asked why they have a deed restriction on an affordable house? Economic Development Coordinator Mahoney said these are the rental houses, Stonebridge, Orchard Ridge and Sage Pond Place. Those projects are all deed restricted because they are financed by the state and the state requires them to be deed restricted. Commissioner Veley asked if there is any specific reason why the deed restriction for the affordable house would expire? That seems to be working against us, or against any town. Does that work against us? Economic Development Coordinator Mahoney said most of the financed state deed restricted are deed restricted for much more than 40 years, but it is something that we can look at. With the planning regulations right now, we are tying our requirements to the state requirement, but we could consider making it a longer requirement for projects where deed restrictions are required. Commissioner Zigmont said he didn’t see deed restricted affordable unit projects for Olesky, Valentine and Acorn on the report. Economic Development Coordinator Mahoney said he checked the deeds of those developments and they were either less than 40 years or more than 80% income, so they do not count. Also, if they were 20 years ago, they would of expired already. Some of the requirements had changed over the years. How to make deed restricted units stay deed restricted for as long as possible so we don’t lose ground is a concern. C. Housing Plan Survey Results FHI Studios Consultant Gomes said the Affordable Housing Survey had very good participation with over 750 participants, primarily residents that have been in Berlin for 20 years or more. Mostly age 30 to 69 with a wide range of income levels and households with varying housing costs. The majority were homeowners living in single family detached homes. We heard mostly from those living in family households vs. living by themselves, or with roommates. One of the questions was whether there is enough housing in Berlin to meet future needs and that was somewhat fairly split. Also, a lot of people just aren’t sure. Is the cost of housing a concern was also split and would Berlin benefit with more housing options including more affordable housing options was an exact split. The real estate values question showed a large share of people thought it would have a negative impact on real estate. People were also very concerned about adverse impact with respect to traffic. Affordable ownership seems more preferred over affordable rental. Also, assisted units for seniors was an overwhelming yes. Senior units are very favorable to people in town and ownership units are highly favorable. More housing rental units was more negative. Commissioner Veley asked how we determined which participants that took the survey were from Berlin, or considered moving to Berlin? Corporation Counsel Coppola said there was a question that asked whether they live in town or not. FHI Studios Consultant Gomes said that we could sort and filter the data, but overall we heard overwhelmingly from Berlin residents. FHI Studios Consultant Gomes said what drives the demand for housing and drives up the cost is demand vs. supply. Berlin has seen increased population growth over the past few decades. In 1970 there were 14k in the community and now it is closer to 21k. Household size has been increasing. The population is driven by the baby boom effect. We have growth in retirement age residents. Also, fewer people in their 30’s and 40’s and fewer kids, so some changes in the demographics. The community has older demographics and that is occurring statewide. The 40’s and 50’s is where we will experience projected loss, but this could also change. There is some housing diversity. Housing permits are mostly single family and multi-family unit permits have been inconsistent. Market rate units have increased since 2014. Economic Development Coordinator Mahoney added that additional units have been approved and the Town of Berlin is up 188 units for affordable units that are CHFA financed. FHI Studios Consultant Gomes said 25% of homeowner households with a mortgage spend more than 30% of their income on housing costs. Berlin does well with owners without a mortgage compared to Hartford County and the state. Renters in Berlin have lower incomes than home owners. The income disparity is a big difference. The housing cost burden is experienced more by renter households. Median home sale prices have increased and homes in Berlin are worth more. D. Housing Needs Assessment Eric Halvorsen, VP and Principle, RKG Associates said one of the challenges with increased housing prices is it ends up pushing more ownership units out of reach for buyers who many qualify for CHFA mortgage. In recognition that housing prices all over CT as a result of the pandemic jumped up, we analyzed home sales in 2019, 2020 and 2021 and compared sales prices of homes sold in Berlin to the maximum mortgage price limit of a CHFA mortgage. The total sales didn’t change too much, but fewer homes would qualify in 2020 as the pandemic escalation happened. In 2021, more homes sold in Berlin than in 2019 and 2020. About 227 homes were sold. Fewer of those qualified. The median sales price of a single-family home since 2017 and early 2022 had an increase of over $100k in about 5 years. Great if you own a home, but not great if you are trying to own a home. We did not see the same results for condos in Berlin. Condos are priced less than houses. Same is true in 2021, the median sales price changed from 2017 to 2020 in condo sales. Prices dipped and rebounded by when 2021 closed out. About 17% of owner households earn incomes at or below 50% of the AMI, or less than $45k per year for a household of 3. That is 1,150 total households. They would qualify for a house worth up to $169k. There are not a lot of homes selling at that price. For the graphs, we allocate owner occupied units by values to each of the income levels based on what a household can afford to pay and subtract the number of units from the number of households at each income level. Berlin has a deficit in housing supply for homes that are affordable to families at or below 50% AMI. Renters have the same deficit and compete for the middle market units. When lower income households have to pay more for housing, they spend less in other areas. Chairman Millerd said houses that sold in the CHFA gray area, the prices are pretty high, what is the affordability of those particularly when you consider loan rates? There are income limits on CHFA homes. Some seniors live in small ranches and are life-long residents. They own 3-bedroom homes, but can’t sell them due to nothing being available that is affordable. The problem is getting worse. The homes go into disrepair and later on get flipped at higher prices. A nice starter home is not even an option when there is no place for the seniors to go. Maybe in another 10 years the problem will get even worse if only 5 of the apartments in a mixed use development are affordable. E. Land Use and Zoning Assessment Berlin is mostly residential with a lot of undeveloped open space. The Berlin Turnpike and Kensington Center have some industrial, but are overwhelmingly residential, 30% of Berlin is parks, or open space with 22% low density residential, 14% moderate density residential, 10% industrial and 5% agriculture. There is a small geographic area of multi-family housing districts in Berlin, plus several others are being added in the Berlin Turnpike, Deming Rd. area. The multi-family units have a decent amount of activity and those projects have been developed over the years with development occurring progressively. There are still areas that are potentially developable, many in single family districts. Chairman Millerd asked if there is sewer and water in those areas? FHI Studios Consultant Gomes said this presentation doesn’t show those areas but they have been mapped and yes, looking at areas that currently have infrastructure would be a starting point. FHI Studios Consultant Gomes provided a list of questions to the committees such as how is the town doing with respect to the creation of affordable housing? Chairman Millerd said the affordable housing isn’t really affordable. Economic Development Coordinator Mahoney added that 50% AMI units require state and federal programs to create those units. Also, Commissioner Veley said there needs to be a do-able average to try to get to the lowest target rate. The waiting list is long on places like Marjorie Moore Village and there is a need for more senior housing. Should the town continue its strategy of approving housing at higher densities at sites with all utilities and good road access in the transit-oriented development (TOD) area of the Berlin Turnpike Corridor? Commissioner Rogan noted and Commissioner Zarabozo concurred that newly approved developments have not had the chance to determine their success. Chairman Millerd noted developers have noted the length of the process when zoning changes are necessary and the Town should be proactive to streamline. He added Berlin is very desirable for these kinds of places which makes the loans easier to get. Commissioner Zigmont said the TOD zone has been successful due to transportation and the workforce. The transportation drives the turnpike, but he feels that the town has failed the seniors with not developing senior housing and the state dropped the ball with CHFA funds, the money is not available now. Commissioner Jorsey added the land use spaces on the map, the bulk of the green space ownership is mostly owned by the town and the City of Meriden and Meriden is looking to protect its watershed area and less likely to open it to development. Economic Development Coordinator Mahoney said the graph excluded those areas. Should zoning modifications be made considered accessory apartments? It is currently very restrictive. Commissioner Veley said she doesn’t think it needs to expand beyond that. Planner Giusti noted that there was discussion to look at the ADU regulations last year of so and and staff has looked into recommending tweaks, there have been a few allowed variances in the past as well. Corporation Counsel Coppola added that it is a hot topic in terms of affordable housing and needs to be dealt with by January 1, “opt out” deadline in response to the new legislation for it. She noted there are parameters in the legislation if they would count as affordable units. Should inclusionary zoning provisions be added? Applicable if you institute per district, it would be up to the town to decide. It could turn off developers to build, but could also help if done well. Chairman Millerd said you would take small parcels. Corporation Council Coppola said we have invited developers for community outreach in the past. The next question focused discussion on the consultant analysis of the BTD Zone and if modifications should be made to the zoning along the Berlin Turnpike. Questions arose regarding commercial and industrial uses versus residential uses in the corridor and in relation to the tax base. Should density increase in Kensington Village Overlay to require a 20% affordable requirement? We have higher density in core 1 and there could be vacant or underutilized properties that may have opportunities to redevelop. Mr. Millerd said the mixed-use style is bringing together the center of Berlin. Commissioner Rogan noted there may be small scale opportunities where older homes could add a couple of units. Planner Giusti said the Avenue restaurant was two parcels and it expanded for the restaurant. The older homes with driveways in the back have opportunities. Chairman Veley noted there may be opportunities to bring senior housing to the center. FHI Studios Consultant Gomes said where development would occur, in some ways that is for developers to decide, but what do the committees think about more development in that area? Maybe 200 more housing units at a greater density. Commissioner Veley said we would need to be careful of over saturation and find a balance. We are not opposed, but have a limited resource and want to capture a specific feel for people to come. FHI Studios Consultant Gomes said he will distribute the full list of questions to the committee members and they can email their feedback as well. F. 2013 Berlin POCD Housing Goal The goal states the town should work to preserve the current balance of housing stock while infusing any new growth with a sense of traditional neighborhood design, compatibility with adjacent uses and ownership options that support housing choice for people of different ages and means. Chairman Millerd said the town has an aging demographic with more seniors over the next 10 years, it needs to meet the needs of the seniors. FHI Studios Consultant Gomes said maybe it is more about preserving the neighborhoods and the strength of those neighborhoods. It is not about the housing portfolio per se, as it is about assuring that the housing development that you have doesn’t compromise the strength of your neighborhoods in your community. Chairman Millerd said we should strive to have a plan that meets the needs of our citizens of Berlin. FHI Studios Consultant Gomes said there is some work do on the statement and they will run with that and it will translate to the housing plan. G. 2023 Berlin POCD Draft Vision Statement The affordable housing plan needs to be in alignment with the vision statement. It is a working statement and FHI Studios Consultant Gomes would like to know if it resonates. Commissioner Veley agrees. Chairman Millerd said we are good. Commissioner Zarabozo said there were just some grammar adjustments needed. H. Draft 2022 Berlin AHP Community Values Statement FHI Studios Consultant Gomes reviewed the values statement with the committee and said it is a requirement of the plan to have a mission statement, or vision statement called a values statement in this case. FHI Studios Consultant Gomes said maybe the committee wants it to be less of a vision statement and more of a statement as to who you are as a community. Commissioner Zigmont said improving infrastructure is an important component to include and to expand services to the police department, fire department, highway department and health services as we look down the road. I. Potential Plan Goals and Implementation Strategies for 2022 Berlin AHP There were 3 policies in support of that goal. Policy A said the neighborhood plan shall be the primary component of residential development. All new residential development should support existing neighborhoods, and create a neighborhood environment with activity centers, recreational areas, and pedestrian circulation. FHI Studios Consultant Gomes said the second sentence there is limiting and suggests residential development should not occur anyplace else except residential neighborhoods. Policy B said Residential development design should support the principles of both Berlin’s development and its conservation policy, including the integration of elements that preserve and protect Berlin’s unique natural environment. FHI Studios Consultant Gomes said it basically should be in alignment with the POCD. It is somewhat of a vague statement. Policy C said new residential development should be of the highest design standards in a manner that creates a high-quality residential environment and enhances the adjacent residential neighborhoods. FHI Studios Consultant Gomes said how to you define that, if you want to design affordable housing it would be high quality vs. highest quality. The Plan Goal is to achieve the development of additional affordable housing units in Berlin that will meet the needs of town residents and will meet and exceed the State’s mandate of a 10% affordable housing supply. FHI Studios Consultant Gomes asked if there should be other goals on the list that the affordable housing plan is working towards? Maybe expand housing for seniors. Corporation Counsel Coppola added to change the state mandate wording. Also, Commissioner Zigmont said it should read the needs of all town residents. FHI Studios Consultant Gomes introduced strategies for affordable housing to help increase affordable housing. Strategy 1: Provide more affordable home ownership opportunities. Strategy 2: Provide more affordable housing for seniors. Strategy 3: Refine existing zoning regulations to better support affordable housing. Strategy 4: Maintain a focus on expanding affordable housing supply. There are some other potential actions as well. J. Next Steps FHI Studios Consultant Gomes said to digest the information and think about it and provide more feedback. The POCD needs to launch community engagement efforts. They will schedule stakeholder focus group meetings for early March. Transportation facilities and infrastructure is the meeting discussion next month and the Affordable Housing work continues. The next POCD committee meeting is 3/24 at 6:00 p.m. Corporation Counsel Coppola said she will send out an email asking for availability for Affordable Housing Plan Advisory meeting dates in March. 5. Public Comment Aurora Urteville, Berlin resident Ms. Urteville said she is very interested in affordable housing and where it is going. Affordable housing is really needed in this community. 6. Adjournment Ms. Veley moved to adjourn at 8:48 p.m. Seconded by Mr. Zarabozo. Those voting in favor: Amy Balko, Sandy Coppola, Robert Dombrowski, Ann Gamelin, Diane Jorsey, George Millerd, Brian Rogan, Joan Veley, Peter Zarabozo, Timothy Zigmont Vote being: 10-0. MOTION CARRIED. Submitted by, Alina Brown