HEALTH AND HUMAN SERVICES COMMITTEE
JANUARY 13, 2004        4:00 P.M.
SCOTT HEYMAN CONFERENCE ROOM


Present:  M. Robertson, Chair; P. Penniman; N. Schuler; M. Koplinka-Loehr

Excused: F. Proto

Staff:      P. Carey, Social Services Commissioner; H. Filiberto, Planning Department; I. Stein, Office for the Aging Director; E. Marx, Deputy County Administrator/Commissioner of Planning; M. Dill,      Human Services Coalition; B. Falcao, Health Planning Council; T. Albert, Youth Services

Guests:   A. Edelman, Realtor; B. Edelman, Lisa Morocco; C. Nocera, Red Cross; A. Hovaguimian, Alcohol and Drug Council

Called to Order

    The meeting was called to order at 4:00 p.m.

Changes to the Agenda

    There were no changes to the agenda.

Chair's Report

    Ms. Robertson said she will be reviewing the Committee's 2003 goals and putting together a report.  She will also be pulling from the minutes information concerning the housing issues discussed by the Committee into one document. 

    In addition she asked Ms. Dill to provide an analysis of bed nights for the Committee to review.  Since 1997, bed nights have been increasing dramatically.  In 1997, there were fewer than 6,000 bed nights and in 2002 there were almost 14,000 bed nights.  That number was exceeded in 2003; the committee will get more information later.

    Ms. Robertson said she has also asked the Health Department and Social Services Department to provide information on generic drugs and the idea of getting them from Canada.  She hopes this will be a topic of discussion at a future meeting.

Approval of Minutes

    It was MOVED by Mr. Koplinka-Loehr, seconded by Ms. Schuler, and unanimously adopted by voice vote by members present, to approve the minutes of the December 8 and December 16 meetings.

Appointments

    It was MOVED by Mr. Koplinka-Loehr, seconded by Mr. Penniman, and unanimously adopted by voice vote by members present, to submit the following appointments to the full Legislature for approval:

    Mental Health Services Board
    Mary Agnew - term expires December 31, 2007

    MR/DD Subcommittee
    Martin Luster - Mental Health Services Board representative; term expires December 31, 2006
    John Bezirganian - Mental Health Services Board representative; term expires December 31, 2007
    Amy Dunham - community member representative; term expires December 31, 2007

Presentation on Housing Market

    Ms. Robertson introduced Audrey Edelman, Realtor, who provided a power point presentation on the housing market in Tompkins County.  Ms. Edelman began the presentation with an overview of the history of real estate values since 1980 and commented that real estate has changed dramatically in the last four to six years.  Between 1980 and 1989 the only time the average price of a single family home decreased was in 1982 when interest rates rose to 16-17 percent.  During those nine years, houses continued to appreciate.  In 1989, the market decreased and people were unable to sell their homes or postponed selling.  During 1988, 970 houses were sold; in 1989, the number decreased by 322.  The market remained flat for the next several years and in 1997 prices began to climb.  The current market is now similar to the 1980s.  Below is a list of prices for the average single family house:
    1997 - $104,855
    1998 - $112,262
    1999 - $113,596
    2000 - $117,243
    2001 - $124,417
    2002 - $137,432
    2003 - $151,554

    Ms. Edelman said that in 2003, 41 percent of the homes sold in Tompkins County were under $100,000 and 25 percent were over $200,000. 

    She explained that 2001 to 2003 were good years with real estate because of the record-low mortgage rates; in 2001 the interest rates went to a 41-year low.  Other factors at that time included investors switching from stock market to home ownership, 9/11 reinforced the desire for home ownership, and prices increased because inventory was low.

    She spoke about the decrease in inventory of houses on the market. The following are the numbers of homes for sale at the same point in each of the last five years:

    April 1999 - 1,767   
    April 2000 - 1,495
    April 2001 - 1,363
    April 2002 - 927
    April 2003 - 707

    At this time Ms. Edelman addressed the following questions: 

Are prices too high to buy a house in Ithaca now?
 Economists remind us that, historically, over the past 30 years, real estate has been a very good investment.
 Some people are afraid that prices have peaked in Ithaca and that the housing "bubble" will burst.
 Unless the inventory of homes in Ithaca increases dramatically, prices will not be adversely affected.
Who is buying?
About half of the county’s housing sales are handled by associates in Edelman’s office.  The following are statistics from within her own office:
 Local - 62 percent
 Out of town - 38 percent
Ms. Schuler asked whether “local” included people who moved here from out of town, rented for a year, and then bought a home. Ms. Edelman said that could be the case for some of these buyers; she did not have information on how long someone had been “local” before they bought.

Marital Status
 Married - 56 percent
 Single - 28 percent
 Unmarried Partners - 9 percent
 Unknown - 7 percent

Educational Level of Buyers
 High School - 11 percent
 College Graduates - 19 percent
 Graduate Degrees - 60 percent
 Unknown - 10 percent

What are the people buying?
 First Home - 39 percent
 Relocation - 38 percent
 Larger Home - 14 percent
 Smaller Home - 5 percent
 Vacation Home - 4 percent

What is the occupation of our buyers?
 Teaching/Research - 33 percent
 Administrative - 19 percent
 Health Care - 12 percent
 Self-employed - 11 percent
 Blue Collar - 8 percent
 Other - 17 percent

Buyers' Household Income
 $20-39K - 15 percent
 $40-59K - 21 percent
 $60K or more - 42 percent
 Unknown - 22 percent

Ms. Edelman commented that 10% of our population is 65 years old or more.  Traditionally for years houses sold the most during the months of March, April, and May.  However, the selling season in 2003 and again this year has extended from February through July. 

Why our community?
 "America's Top Small City in the East" - Rating Guide to Life in America's Small Cities
 "Most Enlightened Town" - Utne Reader
 "Top 25 Terrific Places to Bring up a Family" - Mothering magazine
 "Top 5 Places to Buy a Retirement Home" - Smart Money

What are the positive things happening in our community that encourage people to move here?
 New Library
 New YMCA
 Sciencenter expansion
 Museum of the Earth
 The Rink and The Field in Lansing
 Research Park
 Kionix
 ADIC, Advanced Digital Information Corporation
 Autodesk
 Moldflow
 Tansact Technologies

Why might people choose other communities instead of ours?
 Higher salaries
 Lower taxes
 Centrally isolated - air transportation a problem
 Lack of sewer permits for new construction
 Anti-growth attitude toward new big business

Outlook for 20004
 National Association of Realtors expects the housing market to continue as a strong sector of our economy, and they project 2004 as the second best real estate year in history.
 What the future brings is dependent on:
 Interest rates
 World situation
 National economy
 “I think that the housing in Tompkins County is very HEALTHY right now.”

In answer to questions, Ms. Edelman said that the mortgage market is such that, even for lower income people, if you’re employed and don’t have bad credit, you can get a mortgage.  She felt that the housing supply will continue to be tight, as fewer people are leaving the area. Some reasons are that people feel Tompkins County is safer than other communities, and some people who would have already retired in a better economy are finding now that they can’t afford to retire yet.

Update on First-Time Homeownership Program

    Mrs. Filiberto reported on the County's First-time Homeownership Program and said the program is funded through the Small Cities Community Development Block Grant program.  Better Housing of Tompkins County is the partner the County contracts with to deliver the services.  The program provides up to 30 percent of the purchase price as a second mortgage at a three percent interest rate.  The mortgage is for 15 years and payment is deferred for the first three years.  The hope is to get the homeowner to build their equity to begin paying back the mortgage.  The cost of the second mortgage generally ranges between $90-$150 per month.  One of the components of the program is an introductory educational workshop which provides an overview of the program.  A client guidebook outlining the entire process is given to each participant at the informational meetings.  One of the most important areas for homeowners to know is the importance of saving money for maintenance and upkeep. 

    The program began in 1993 and more than 800 people have attended the introductory meetings.  There have been 194 homes closed on since September 1, 1994.  Mrs. Filiberto noted that all the clients in the program fall below 80 percent of the median family income level in Tompkins County (which is $41,250 for a family of three). 

    The program has loaned a total of 3.7 million dollars in second mortgages over the last ten years and leveraged 10.2 million dollars from private lenders.  The purchase price of the homes generally ranges between $40,000 and $100,000.

    When the second mortgages are paid back, it is called program income and can be re-loaned to keep the program going.  To date, $784,000 has been received in program income and $540,000 has recently been committed to approximately 24 clients.  Six separate grants have been received from the federal government to further the program. 

    At this time Mrs. Filiberto highlighted some of the success rates with the program as compared to FHA mortgages.  She reported there have only been two properties foreclosed and only two homeowners currently repaying their loan are more than 30 days late.  She also spoke about the real estate market and the impact it is having on the program.  Clients continue to find homes but it is taking a little longer and they are spending a little more on the homes.  Mrs. Filiberto commented that more assistance is needed by staff and as a result the cost per client has increased, reducing the amount of money available to help more clients.  The good news is that families are still finding homes and the introductory meetings continue to be well attended. 

    In response to Mr. Penniman's inquiry, Mrs. Filiberto said that no one has ever been turned away; however if there were more resources, the County would be able to continue the program indefinitely.   She believes there are enough funds currently that will last through the end of the year.  The Department is applying for another grant in 2004 that could be available this time next year.  The grants usually provide approximately $540,000 for the program. 

    Ms. Schuler spoke about the suggestion by Assistant Assessment Director, Jay Franklin, at a recent committee meeting that the County consider offering a longer, six-week program similar to Ithaca Neighborhood Housing's program rather than the current two-hour model. Ms. Schuler said she received correspondence from Better Housing’s Executive Director, Stacey Crawford, explaining that they feel the success rate of the current program indicates a six-week workshop model is not required for success of first-time homebuyers.  The correspondence from Ms. Crawford also reiterates the successes of the program as outlined above by Mrs. Filiberto. 

    Ms. Dill spoke about the COMPASS II report and said the issue of housing maintenance and repairs came up a lot in the surveys.

    At this time, Ms. Dill distributed information concerning an analysis of emergency shelter nights in Tompkins County, including the Red Cross shelter, motels paid for by DSS, and the shelter of the Task Force for Battered Women.  It was noted that the number had gone up to 15,353 in 2003, an increase of 10%/  Ms. Dill reported the next Homeless and Housing Task Force meeting is February 4, 2004 at 10:00.  She also reported that the FEMA funds we get annually have been cut because our unemployment rate has gone down.

    Ms. Carey explained a contract for emergency shelter was negotiated yesterday and asked Mr. Nocera to comment on the specifics.  Mr. Nocera said it is a two-tier approach.  The first tier covers fixed expenses at $66 per night which includes the cost of the hotel night and case management services provided.  The second tier includes the costs of variable expenses at a total of $38.50 per hotel night. 

    Mr. Nocera suggested that transitional housing be a strategy that should be looked at this year.  He said this would reduce the costs of hotel use substantially.   Ms. Carey said one area discussed during contract negotiations was the goals for case management services.  She is hoping to create a database that will identify and monitor the case management services being utilized.

Social Services Department

    Ms. Carey provided a brief overview of the Department's financial reports.  She noted that year-end information is still coming in.  The Safety Net program appears to be on the rise, however the Department will continue to monitor this situation to determine why it is increasing.   

    A brief discussion followed concerning the State's task force report on Medicaid and Ms. Carey said she will meet with her staff to see if there are areas where she can provide additional information.  She will also be attending a Social Services Commissioners conference at the end of the month where this will be discussed and will share comments from the conference she feels may be helpful.  Mr. Penniman also suggested that it would be helpful if Legislators attending the New York State Association of Counties meeting received the same information.

Human Services Coalition

    Ms. Dill provided a report to the Committee concerning budget impacts on services and agencies. 

    Mr. Penniman was excused at this time.

    Ms. Dill expressed the appreciation of the agencies to the County for all the support provided.  At this time, she reviewed the trends agencies are experiencing including widespread stress among clients and employees. The agencies need basic operating funds, but are forced to build their budgets on one-time grants and fundraising. Some have lost funds in state and/or federal cuts, or are receiving stagnant State funding or now are told that previous state grants require a match for the first time.  Overall there has been a loss of staff in the nonprofit sector since 2001, benefits have been reduced, and there have been no salary increases. The only new staff have been about 20 VISTA volunteers brought into the community through a combined effort of Cornell University and United Way.  The Human Services Coalition is doing a salary and benefit survey of the nonprofit community, and that is nearly finished.  Two capital projects are going forward: the expansion of the Drop-In Children’s Center (to add 28 slots) and expansion of the Green Street facility of Unity House.

    Ms. Dill reminded the Committee the Human Services Coalition's annual meeting is February 5, 2004 and Kathy Okun, the First Lady of Cornell University, will be the guest speaker.

Youth Services

    Budget Adjustments
    It was MOVED by Mr. Koplinka-Loehr, seconded by Ms. Schuler, and unanimously adopted by voice vote by members present, to submit the following transfer and budget adjustment to the full Legislature for approval:

From Acct              Title                                                        Amt            To Acct             Title(s)   
7020.51000634        Youth Bureau Planner                         $19,821       7020.54000        Program Expense

Explanation:  The Legislature reduced the personnel line of the County Youth Services 2004 Budget by $19,821.  The reduction was made in Program Expense.  This transfer will accurately reflect the cut in the Planner position and restore Program Expense line to $0 as planned.

 BUDGET ADJUSTMENT

Tompkins County Youth Services Department 
Revenue Acct              Title                                                         Amt            App. Acct.         Title(s)   
7020.42070                    Contribution from Private Agencies  $11,902       7020.51000634    Youth Bureau Planner

Explanation:  This reflects an increase in our 2004 revenue from the City of Ithaca to coordinate the Community Drug Task Force for services during 2004.  Due to budget cuts, the Planner position was reduced to 23 hours per week.  With this increase in revenue, that position can be brought back up to 28 hours per week.

Adjournment

    The meeting adjourned at 5:41 p.m.

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