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HomeMy WebLinkAboutAFFORDABLE HOUSING BOARD - MINUTES - 05/02/2024AFFORDABLE HOUSING BOARD REGULAR MEETING 5/2/2024 – M I N U TE S Page 1 May 2, 2024, 4:00-6:00pm Colorado River Room, 222 Laporte Ave CALL TO ORDER At 4:07 PM the meeting was called to order by John Singleton. 1. ROLL CALL • Board Members Present:  John Singleton, Chair  Bob Pawlikowski, Vice Chair  Kristin Fritz, Ex Officio (exited in progress)  Stefanie Berganini  Claire Bouchard (exited in progress)  Josh Beard • Board Members Excused:  Jennifer Bray • Staff Members Present: • Sue Beck-Ferkiss, Staff Liaison – City of Fort Collins • Meaghan Overton, City of Fort Collins • Guests Present: • Councilmember Melanie Potyondy • Caribou Apartments • Lidia Madrid • Lisa Cunningham • Mariana Rocha Rodrigues • Marilyn Heller 2. AGENDA REVIEW – No changes. 3. CITIZEN PARTICIPATION Marilyn Heller from the League of Women’s Voters expressed appreciation for Sue Beck-Ferkiss’ assistance with the “Skyrocketing Housing Prices! Why?” panel the League held on April 11. 4. APPROVAL OF MINUTES Stefanie Berganini motioned to approve the April 4 Regular Meeting Minutes. Josh Beard seconded. Bob Pawlikowski abstained due to recusal from the April meeting. Approved 4-0. AFFORDABLE HOUSING BOARD REGULAR MEETING 5/2/2024 – M I N U TE S Page 2 5. NEW BUSINESS A. Housing Strategic Plan Updates: LUC News – Meaghan Overton, Social Sustainability • The second reading of the third version of the Land Use Code, featuring foundational improvements, will take place on Tuesday, May 7. • The City is currently reviewing Capital Improvement Tax, City Impact Fees, and Fee Credits as part of its budget process and regular fee assignment procedures for development projects. Council had a work session on impact fees, exploring options to expand the fee credit program and allocate additional resources to it. City staff highlighted the importance of fee credits for affordable housing and noted that they have not kept pace with fee increases and construction costs since the program’s inception. The Capital Improvement Tax, a 10-year quarter-cent sales tax set to expire in 2025, allocated $4 million to affordable housing over its duration ($500,000 per year). Renewal discussions are ongoing, focusing on questions such as: What capital improvement projects do various departments have planned? How should potential resources from the tax be allocated? DISCUSSION: • Do we know what the $4 million was spent on? In general, 25% of the funds go toward fee credits and fee relief, serving as a supplement to any additional funding allocated for affordable housing fee credits. The remaining portion is allocated to actual capital expenses associated with affordable housing projects. We had an appropriation of ARPA funds for fee credits, which were subject to discretionary approval from Council. Before the ARPA appropriation, we used General Fund reserves and Affordable Housing Capital Fund to finance fee credits. Then, these funds were redirected towards capital investments in additional projects. • So, there isn’t necessarily a specification on how the funding can be used? No. It is our most flexible funding. The funds must be used for capital expenses, which most new construction and rehabilitation projects are categorized as. It serves as “last resort” funding, typically awarded to projects during its final stages. We prefer for projects to apply for competitive process funding first since that money must be spent quickly. However, if there are gaps in funding or other reasons to ask for this additional funding source, projects may seek discretionary approval from Council to access these funds. B. Assignment of 2024 Private Activity Bonds – Sue Beck-Ferkiss • Sue Beck-Ferkiss gave the Board a brief overview of Private Activity Bonds and what they can be used for. One of the specified purposes is the construction and rehabilitation of affordable housing, which is a priority use of the bond capacity at the City. Private Activity Bonds are needed for 4% low-income housing tax credits, which is a tool most developers are using to build affordable rentals. • The City of Fort Collins has a Private Activity Bond Committee that considers annual bond capacity requests. This year, there were two requests from local organizations CARE Housing AFFORDABLE HOUSING BOARD REGULAR MEETING 5/2/2024 – M I N U TE S Page 3 and Housing Catalyst. Each requested the City’s full allocation. • Sue informed the Board that the PAB committee is recommending giving all this year’s bond capacity to Housing Catalyst. The committee felt that Housing Catalyst’s application was complete and demonstrated readiness to proceed, while CARE Housing’s application did not include all requested components. Sue reminded the Board that Housing Catalyst is also a bond issuer so they can use the bond capacity for their pipeline projects or other projects. • The Board asked for clarification on Housing Catalyst being CARE Housing’s bond issuer. Sue explained that CARE Housing was not able to provide a letter from Bond Council stating that their project was an appropriate application by the requested deadline, so the Private Activity Bond Committee felt uncertain about the project’s feasibility and readiness to proceed. • Sue invited the Board to ask questions, and to make a recommendation to support, not support, or alter the recommendation of the Private Activity Bond Committee. • The Board expressed that during their ranking of the affordable housing projects, CARE Housing’s project seemed ready. However, they also acknowledged they do not have the level of insight into PAB applications as the Private Activity Bond Committee. They also liked the fact that CARE Housing’s project targeted a vast range of AMI (area median income) levels. Sue explained that the Committee recognized both projects were important. Josh Beard motioned to support the Private Activity Bond Committee’s funding recommendation. Stefanie Berganini seconded. Approved 3-0. Bob Pawlikowski abstained. C. Board Planning for 2024 – John Singleton & Sue Beck-Ferkiss D. Board Priority Committee Reports • Knowledge Repository – Bob Pawlikowski & Jennifer Bray • No updates. • Outreach, Education and Partnerships – Claire Bouchard & Josh Beard • John Singleton has stepped down from this subcommittee. Claire Bouchard and Josh Beard will now be leading it. • Sue Beck-Ferkiss suggested that the Community Foundation’s Intersections Report that Claire Bouchard helped with could be a good starting place for this subcommittee. • The Board explored the idea of appointing Board liaisons to other City boards and local organizations. These liaisons would attend meetings on behalf of the Board and provide updates to the entire group during regularly scheduled meetings. • Council and Local Legislative Support – Stefanie Berganini & John Singleton • Stefanie Berganini and John Singleton are continuing to work on a template for different issues that include relevant history, local context, and arguments for and against. • Stefanie provided updates on the three key topics the Board decided to focus on in 2024: deed restrictions, ADUs, and occupancy limits. AFFORDABLE HOUSING BOARD REGULAR MEETING 5/2/2024 – M I N U TE S Page 4 • Deed Restrictions: The Board missed the opportunity to address this issue since Council has already done a first reading of the non-controversial parts of the Land Use Code. Notably, a 60-year deed restriction was included in the most recent revision to the code. While the Board had hoped for a 99-year deed restriction in the updated code, they acknowledge that the inclusion of a 60-year restriction is an improvement from the 20-year restriction in the current code. • Accessible Dwelling Units (ADUs): The Board has more time to craft a statement about ADUs since they were taken out of the most recent Land Use Code due to their controversial nature. There is also ongoing state legislation regarding ADUs, which Council is monitoring. • Occupancy: With the passage of HB 24-1007 (which will overturn U+2) set to take effect on July 1, the Board plans to draft a letter to Council outlining recommendations for its local implementation. Stefanie has prepared a draft letter suggesting several considerations. These include advocating against replacing U+2 with new maximum occupancy limits and instead relying on existing nuisance ordinances and building code requirements to manage household size and conduct. Additionally, the letter proposes an immediate pause in U+2 enforcement to minimize disruption as HB 24-1007 approaches implementation. Furthermore, it suggests planning a public outreach campaign to inform landlords, tenants, housing agencies, and others about the new law and its local impacts on housing rules in Fort Collins. The Board provided feedback and suggested amendments regarding the draft letter. Bob Pawlikowski motioned to approve the letter, subject to discussed amendments, and send it to City Council. Josh Beard seconded. Approved 4-0. • Diversity, Equity & Inclusion in Affordable Housing – Stefanie Berganini • This subcommittee is currently on hiatus since its original leader resigned from the Board. 6. BOARD MEMBER REPORTS a. Stefanie Berganini shared that the Democratic Socialists of America will be hosting a celebration at Oak Street Plaza on Sunday, May 5, to celebrate the overturning of U+2. b. Meeting Logistics • The Board will continue to have hybrid meetings for the remainder of 2024. b. Liaison Reports • Sue Beck-Ferkiss provided an update on the ranking of affordable housing proposals by the Human Services & Housing Funding Board. They chose not to support funding for L’Arche Fort Collins or The Szanton Company. Their reasoning was that L’Arche serves a small number of people relative to the project cost, and that the project would proceed regardless of funding from the Competitive Process, since their funding request served AFFORDABLE HOUSING BOARD REGULAR MEETING 5/2/2024 – M I N U TE S Page 5 to fully eliminate project debt. Regarding The Szanton Company, the Board deemed the project too early in the process to award funding at this time. The ranking of the supported projects is as follows: Housing Catalyst Village on Eastbrook, Loveland Housing Development Larimer Home Improvement Program, Fort Collins Habitat for Humanity Harmony Cottages, CARE Housing Greenbriar-Windtrail Rehab, City of Fort Collins Forestry Division Tree Removal Assistance Program, and Housing Catalyst Remington Parking Lot. • Sue provided a brief update on the Housing Strategic Plan Community Summit. She shared that the initial planning meeting went smoothly, with tasks divided accordingly. There will be a large community event in the fall, preceded by educational and outreach events throughout the summer. She also told Board members to expect committee assignments shortly. • Sue will be sharing a link to the HUD Consolidated Plan survey with the Board. 7. OTHER BUSINESS None. 8. ADJOURNMENT Meeting adjourned at 6:04 PM.