Housing update: council discusses Milestone site, NPHS offer and subcommittee conflict; city attorney to review Milestone status

Councilmembers used the Aug. 19 meeting to update the public on affordable housing efforts, describe next steps for a three-acre site west of City Hall and discuss internal subcommittee process and potential conflicts of interest.

Staff said the three-acre parcel had earlier been approved for a Milestone Housing project. The city attorney will meet with Milestone Housing to determine the status of any existing contract or obligation; staff said no action will be taken on alternative proposals for the site until Milestone's position is confirmed. Staff said if Milestone cannot or will not move forward, the city can consider other proposals and funding strategies (for example, contributions, tax-credit competitive applications and partnerships with other affordable housing providers).

Councilwoman April Ramirez raised a concern she had received from a constituent about Councilmember Scott's financial connections to an entity identified in the constituent's email. Councilmember Scott denied any financial interest in CVHC or in property within the city tied to that provider. Councilmembers discussed the appropriate subcommittee process: Ramirez said she had not had an opportunity to deliberate on certain items and sought clarification about how subcommittee engagement and joint reporting to the full council should occur. Councilmembers agreed the housing and homelessness subcommittee should meet and reconcile items before making recommendations to the full council.

Staff described an offer from NPHS (an entity expressing interest in developing the three-acre site) but said the item was informational only; no action was taken on NPHS's offer. Staff emphasized that financing for affordable housing typically combines multiple sources (local contributions, tax credits and outside funding) and that projects compete regionally for federal/state resources like low-income housing tax credits.

Public commenters urged more local collaboration on homelessness response, offered to host working-group meetings and asked the council to consider small, pragmatic measures (trash cans, porta-potties, managed sites) while more permanent housing solutions are pursued. The council directed staff to consult the city attorney and to place any governance/legal questions about the subcommittee on a future agenda for review; the mayor said staff will also investigate whether recusal or reassignment is necessary based on the city attorney's advice.

Why it matters: the three-acre parcel is a city-owned asset identified for affordable housing; legal or contractual obligations with Milestone Housing must be clarified before the city can solicit or accept alternative proposals. The discussion also highlighted process questions on subcommittee deliberations and conflict-of-interest concerns raised by a councilmember and a constituent.