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The meeting was called to order at 2:00 p.m. by Chairman E.H.
Culpepper, who provided a brief welcome and a call for self-introductions.
Sarah Lawton, newly hired as Regional Resource Coordinator, was
formally introduced and welcomed. The list of meeting attendees
(RAC members, staff, and guests) is located at the end of these
minutes.
Following introductions, Chairman Culpepper called for ratification
of the minutes from the February 26, 2002 meeting held at the
Monticello Government Complex in Monticello, Georgia. Cardee Kilpatrick
moved, seconded by Sonny Turner, that the minutes be approved.
Without further discussion or corrections, the motion carried
and the minutes were approved. Chairman Culpepper then introduced Dr. Brenda Cude of the University
of Georgia, Department of Housing & Consumer Economics, Housing
& Demographics Research Center, and invited her to discuss
the Center's recently completed workforce housing study. After
crediting the Department of Community Affairs and the Rural Development
Council for their funding and technical assistance, Cude explained
that the purpose of the study was to build a better understanding
of the relationship between housing affordability and availability,
and community and economic growth and development. In defining income parameters of the population targeted for
the study, Cude offered that workforce incomes range "between
minimum wage and $60,000 per year," pointing out that many
University system employees fall within this bracket. She then
stated that 680,000 Georgia households have combined incomes of
less than $20,000, and that 1,050,000 households earn less than
$30,000, annually. Considering that the latter group is reasonably
capable of affording a home costing up to $86,800, and that the
average sales price of a new home in Georgia is $157,801, a significant
portion of the population is priced out of today's housing market. Cude further explained that primary data for the study was collected
from three sources: 1) discussions and surveys held at town hall
meetings hosted across the state, 2) a survey of the Georgia Economic
Developers Association, and 3) employee surveys in three selected
industries in rural Georgia. Participants in the town hall meetings
were asked to identify gaps in the housing market by type. Businesses
chosen were either new to Georgia or were established companies
that recently expanded operations. Cude explained that Spanish
speaking facilitators were used when necessary, to ensure that
input from all workers was included in the database. Secondary
data on demographic and economic trends related to Georgia's housing
was also used. Cude elaborated on the conclusions and implications of the study.
Both town hall meeting participants and individuals surveyed expressed
a need for a greater selection and abundance of low-moderate housing
options. A lack of creditworthy buyers and the limitations of
size on small towns' ability to generate a large demand for housing
were seen as barriers to attracting private industry and developing
workforce housing. They also expressed concerns regarding the
effect of rental and government subsidized housing on the health
of the tax base and its ability to support a successful school
system. To remedy these problems, the Center recommended the creation
of a coalition to address Georgia's workforce housing issues.
Additionally, the Center recommended the increase of the supply
of quality, low-to-moderate income rental housing, as well as
the increase in supply of owner-occupied single-family housing.
To combat a lack of knowledge of existing housing assistance programs,
the Center suggested increased efforts to improve the "consumer
literacy" of Georgia's workforce. Finally, the Center suggested
providing more assistance to local officials, both with identification
of funding resources and community interaction. Chairman Culpepper then called upon Rope Roberts, Workforce Housing
Subcommittee chair, to discuss recent activities. To initiate
the discussion, Roberts identified four key ingredients of a successful
workforce housing project: 1) bankers who are willing to lend
money; 2) a developer who is willing to accept a guaranteed 10-12.5%
profit margin; 3) a local government to talk about the possibilities
for planning and zoning variances; and 4), the purchase of available
land at a fair price. Other points to consider when attempting
to lower cost without sacrificing quality included prefabrication,
which allows construction to continue regardless of weather conditions.
Uninterrupted progress prevents the increases in cost associated
with weather delays, etc. Roberts further suggested that several
variations on an efficient floor plan would avoid additional,
similar problems. As an example, Roberts suggested that the committee's project
would produce a group of 1,200-1,400 square foot homes, with construction
costs averages of $62.50 per foot, or $75,000 per home. Assuming
a lot cost of $10,000 and a buyer down payment of 10 percent,
the total loan amount per home would equate to approximately $76,000.
At a rate of seven percent with a term of 30 years, consumers
would owe monthly payments of $509 per month. Considering traditional
lending standards, Roberts estimated that buyers must earn wages
of $10.49 per hour to afford homes within this range. E.H. Culpepper reminded the group that, although this project
fits within the parameters of the RAC plan, it is important to
complete this project without contributing to urban sprawl. Cude asked the committee to consider finding a large employer
for the project who would be willing to subsidize credit education,
and also explore opportunities to pre-qualify buyers who would
not otherwise be creditworthy, suggesting that both activities
would be necessary for the project's long-term success. Roberts
responded that the subcommittee is addressing exactly that challenge
in this project; in fact, an employer has all ready agreed to
participate. Roberts further noted that, as a cost-saving effort, many developers
establish construction storage sites to allow for bulk purchasing,
storage, and assembly of prefabricated parts. He explained, however,
that a developer's willingness to make such an investment is closely
connected to housing demand, which is, in turn, linked to residents'
ability to purchase the homes (creditworthiness). Cardee Kilpatrick
mentioned a contact from the Red Carpet Tour who expressed interest
in temporary relocation for this purpose, but worried about the
availability of a local skilled labor pool. Jim Burgess noted that existing housing in need of rehabilitation
is another source for workforce housing and first time homebuyers.
Social Circle has struggled with absentee landlords, but the City
is in the process of developing an urban development ordinance,
which will empower the City to acquire neglected properties. Social
Circle's mill village would be particularly appropriate for rehabilitation.
Burgess' concerns revolve around the long-term solvency of the
buyers and tenants, and the availability of options to safeguard
the development against the encroachment of slumlords. Roberts
referred to Cude's earlier statements about the need for credit
education. Cude then distinguished between homebuyer education
and homeowner education, stating that the two were equally important. Chairman Culpepper asked of options to build safeguards against
problems related to absentee landlords and crime into the workforce
housing project. Roberts offered that there are areas in the country
where varying income levels are accommodated in the same housing
community via local ordinance requirements. He also noted that
resort destinations, for example, often require developers to
construct housing for the service workforce prior to the construction
of higher income homes and guest quarters. Following the housing discussion, Chrissy Marlowe discussed the
region's Growth Management Initiative. She explained that as a
result of the at-large RAC meeting held March 18, 2002 to assess
growth management needs within the region as they pertain to corridor
management, a three-part growth management program would be developed.
The program, designed for presentation by RAC members to local
governments within the region, will contain the following components:
1) an education component defining quality growth; 2) a community
guide/workbook as to regional collaboration, and 3) a sample billboard
ordinance with accompanying guiding principles. To refine the program goals, Chairman Culpepper requested that
a meeting of the growth management committee (Iola Stone, Rope
Roberts, Jim Burgess, Charles Crawford, Stan Coley, and Susan
Holmes) be held. The meeting was scheduled for May 7, 2002 at
3pm at the Classic Center. Jennifer Normanly of the Georgia Department of Community Affairs
(DCA) then presented a staff report. She invited RAC members to
the Davis House in Greensboro following the meeting, where a reception
for GMA's Heart & Soul Tour was taking place. Normanly also
discussed the activities of the Leadership Committee on behalf
of group chair Susan Holmes. Three members of the committee met
March 18, 2002 to discuss the "How Government Works in Georgia"
video (shortly to be renamed). As a result of the meeting, the
video message was refined to highlight projects which foster successful
economic development though proactive, collaborative community
development. Specific projects and video speakers will be selected
in June 2002, with an anticipated completion date of mid-Summer.
Following Normanly's report, Susie Haggard of the Georgia Department
of Industry, Trade and Tourism updated the group on the activities
of the Workforce Development Partnership of Northeast Georgia,
which recently received a grant award from the School to Work
program to initiate an awareness campaign and improve the organization's
website. Additional monies are also being pursued by the Partnership
to create a regional, seamless educational/ training program for
the hospitality industry. Chairman Culpepper commended Haggard
on her efforts to develop education through training in the hospitality
field. Gratitude was also extended to Chris Ramsey for refreshments.
With no further business, the meeting was adjourned at 3:30pm.
The next meeting is scheduled for June 27, 2002. Advisory Council members in attendance included Tim Bramlett,
Jim Burgess, Stan Coley, Charles Crawford, E.H. Culpepper, Kenneth
Easom, Cardee Kilpatrick, Christina Ramsay, Rope Roberts, Danny
Stone and Howard "Sonny" Turner. Not in attendance were:
Paul Chambers, Wendell Dawson, Art Dunning, Lam Hardman, Susan
Holmes, John Howard, Roy Lambert, Bill Lewis, Bob Sosebee, Iola
Stone, and Joe Whorton. Regional guests included: Allen Nicas
of the Elbert County Development Authority; Joe Tichey of the
Northeast Georgia Regional Development Center; Karen Fite of Georgia
Tech Economic Development Institute; Bill O'Keeffe of the Monticello-Jasper
County Chamber of Commerce; Melanie Arias of the Development Authority
of Jasper County; and Jim Hunt, former RAC member. Winfred Owens
represented DCA's Office of Regional Services, and Chrissy Marlowe
represented DCA's Office of Growth Management. Regional Staff
included DITT Regional Marketing Manager Susie Haggard, DCA Regional
Representative Jennifer Normanly, and DCA Resource Coordinator
Sarah Lawton.
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