DATE: May 29, 2015
TO: Board of Mayor and Aldermen
FROM: Alderman Pearl Bransford
Eric Stuckey, City Administrator
Chris Bridgewater, BNS Department Director
Kathleen Sauseda, Housing Development Coordinator
SUBJECT:
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Discussion And Consideration Of A Request By Alderman Pearl Bransford Regarding Additional Funding Of The Housing Reserve.
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) to consider a request by Alderman Bransford to replenishing the City's Housing Reserve. This account was established in 2010 to assist with the cost of development fees, sanitary sewer and water development fees (access, system development, tap and effluent fees).
Background
The Housing Reserve was established in 2010 in conjunction with the Inclusionary Zoning Ordinance for Existing Developments. The funds in the Housing Reserve are intended to assist not-for-profit entities and developers that are developing affordable housing dwelling units within the City of Franklin and that are to be sold and occupied by families whose income fall within the low or moderate income range in the Greater Nashville Metropolitan Statistical Area (MSA).
Since adoption of the ordinance through January 2015, $270,975 has been deposited by developers who have received approval for increasing density in existing developments and have decided to pay fees-in-lieu of building the required housing units. Earlier this year, the BOMA approved two resolutions appropriating funds from the Housing Reserve to the Franklin Housing Authority ($194,162 for the Reddick Phase II project) and Mt. Hope/Hard Bargain ($30,000 as a match to a private grant of $50,000 for their housing redevelopment project).
Currently, a balance of approximately $46,000 exists in the Housing Reserve. Alderman Bransford is requesting the Board of Mayor and Alderman replenish the Housing Reserve through a one-time allocation of $250,000 from the City's general fund reserves.
Financial Impact
The City's general fund reserves are projected to reach $34.2 million by the end of Fiscal Year 2015. This amount well above the minimum balance stated in the Board's reserve requirements. As a result, sufficient funds are available to support the transfer of $250,000 to the Housing Reserve from the City's general fund reserves.
Recommendation
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Sufficient funds are available within the City's general fund reserve to support a one-time transfer of $250,000 to replenish the Housing Reserve. In addition to this initiative, it is further recommended that the Board of Mayor and Alderman request staff and the Housing Commission to draft and present a revised Inclusionary Housing Ordinance within ninety (90) days to help ensure the Housing Reserve has greater capacity to support initiatives by community organizations interested in building deed-restricted affordable and/or workforce housing.