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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 01/10/2002CITY OF FORT COLLINS COMMUNITY DEVELOPMENT BLOCK GRANT Meeting Minutes January 10, 2002 Phil rrusCairBill Bty Council Liaison Chairman Phil Majerus called the meeting of the Community Development Block Grant Commission to order at 6:35 p.m., at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Chairman Phil Majerus, Terri Bryant, Bob Browning, Brett Hill, Tia Molander, Jennifer Molock, Billie Rosen, Dennis Vanderheiden, and Cheryl Zimlich. Not present: Linda Coxen and Vi Guthrie. Staff present: Ken Waido, Heidi Phelps, Julie Smith, and Stacy Kelley. /�) WELCOME NEW COMMISSION MEMBERS Mr. Majerus introduced Bob Browning, formerly of the Affordable Housing Board and Habitat for Humanity, and Billie Rosen, formerly of the Affordable Housing Board and the Housing Authority. General introductions were made. APPROVAL OF DECEMBER 13, 2001 MEETING MINUTES Moved by Mr. Vanderheiden, seconded by Ms. Bryant: To approve the December 2001 minutes as written. Motion approved with two abstentions. PUBLIC HEARING No one appeared to make a presentation. ELECTION OF OFFICERS Moved by Ms. Zimlich, seconded by Mr. Vanderheiden: To elect Mr. Majerus as chair. Motion approved with three abstentions. Mr. Majerus nominated Ms. Bryant as vice chair. Ms. Bryant nominated Mr. Hill. Mr. Hill seconded Ms. Bryant's nomination. Ms. Bryant was elected vice chair, with three abstentions. GROWTH MANAGEMENT AREA POLICY Mr. Waido gave a brief history of the origination of this policy, with Council questions concerning the Bethphage project. In response to the situation, Staff drafted a policy that limits funding of projects and programs to those that have a Community Development Block Grant Commission Meeting of January 10, 2002 Page 2 physical location inside the Growth Management Area Boundary. The proposed policy will be presented to Council on February 5. Federal regulations mandate that HOME dollars be spent within the City limits. There was a desire to consider worthy applicants for CDBG and Affordable Housing Funds at least within the GMA. The Affordable Housing Board has recommended that the City give priority to projects within the GMA, but did not find desirable a hard-and-fast arbitrary boundary of the GMA. Staff's policy was in response to the perceived direction by Council to set a solid boundary. In response to questions, Staff explained that the Growth Management Area Boundary is the same as the Urban Growth Area boundary. The Affordable Housing Board felt that projects that benefit the citizens of the city should be considered without specific rule as to boundaries. Bethphage is the first funded project to date that exists outside of city boundaries. It was noted that such projects as Catholic Charities Northern and the Food Bank routinely extend services to clients who are not city residents. Regardless of any preferential policies, Council will have the ultimate authority to approve funding for applicants. However, under the proposed policy, applicants would need to show a benefit to city residents as part of their baseline qualifications. Discussion was held as to the desired arbitrariness of the boundaries. Commission members raised hypothetical situations of applicants who would benefit city residents but have a physical location outside of the GMA. Stringent restrictions lessen the Commission's ability to address the situations before it. Commission members spoke favorably of a policy of preference rather than inclusion/exclusion. It was noted that Bethphage received reduced funding due to location concerns; under the proposed policy, it would be fully qualified. Mr. Waido noted that the Staff recommendation grew out of the Council direction. He stated that based upon the discussion by the Affordable Housing Board and the apparent direction of the discussion of the CDBG Commission, Staff would likely amend its approach to the policy. It is unlikely that Council would revert to the actual city limits as boundaries for the applicants. If the policy is for arbitrary boundaries, points and preferences would not apply. If the policy is for preference, location may then become a matter of weighting within individual applications. Moved by Mr. Hill, seconded by Mr. Vanderheiden: That the CDBG Commission recommend a policy that location in regard to the Growth Management Boundary be part of a ranking criteria rather than an arbitrary Community Development Block Grant Commission Meeting of January 10, 2002 Page 3 policy, with a preference factor given to projects within that boundary. Some jocular discussion was held concerning weighted values based on proximity to the GMB. Mr. Waido reviewed the probable ensuing Staff discussion based on input by two citizen boards. Mr. Majerus advocated continuation of the present lack of policy but felt that the motion as framed was preferable to an arbitrary boundary. Motion approved unanimously. APPLICATIONS Mr. Waido stated that today is the kickoff for the Spring cycle process. Applicants can pick up applications at the office, download them from the Web site, or have application files e-mailed by Staff. The closing date for applications is the last Thursday in February. Proposals will be distributed to Commission members in early March. The interview process will be held in early April, with adoption of recommendations a week later. The Council study session to receive those recommendations is in late April. Final adoption will be at a Council meeting in May. The Commission will have an approximately $2 million entitlement to disburse, with approximately $800,000 contained within reprogrammed funds. The reprogrammed funds are available due to HUD restrictions regarding payment of impact fees. The reprogrammed funds can be available immediately and should be the first dollars spent. The reprogrammed funds must be used in the upcoming funding cycle. There will be two technical assistance meetings; one for public service applicants, another for housing proposals. Staff will require applicants to receive one-on-one technical assistance. The cover letters are more user-friendly. Staff is promoting the public availability aspect. Updates are being provided to prior applicants. Housing providers are being sought out and told that extra money is available in this cycle. Developers are being sought proactively as well. A press release will be promulgated regarding availability of extra money. Commission members are invited to the training sessions on January 28 and February 4. Mr. Waido updated the Commission on the status of funding fees. Staff met with HUD representatives regarding HUD's restriction on payment of impact fees. The lobbying effort was unsuccessful. Staff argued from the standpoint of regulations that were favorable to the concept of funding fees. The HUD staff rebutted with internal memos and past decisions. HUD's viewpoint on this issue is that impact fees become discretionary City funds and cannot be tracked to specific projects. Staff presented court case law Community Development Block Grant Commission Meeting of January 10, 2002 Page 4 on impact fees that monies collected must be used to advance the purpose for which it is collected. Staff encapsulated HUD's opinion using the hypothetical that street oversizing fees cannot be paid with CDBG funds; however, CDBG funds can be used to build a street. HUD staff is taking the issue to Washington, D.C., for a higher -level decision. It was noted the impact fees are a necessary consequence to provide citizen -demanded services in the face of increasingly stringent restrictions on tax collections. CDBG funding encompasses a larger arena than housing; therefore, in the eyes of HUD, the argument that funding is necessarily restricted falls short. OTHER BUSINESS Ms. Phelps noted that the next meeting is February 14, Valentine's Day, if a scheduling decision is needed in light of that fact. Moved by Ms. Zimlich, seconded by Ms. Bryant: To cancel the February meeting. Motion approved unanimously. The CDBG Commission in March will be held March 7. This is a general meeting, not for interviews or recommendations. Posters for the awareness campaign will be available on Monday. The Web site will be updated to advertise the availability of increased funding in this cycle. Applications are online and available as PDF, Word, or Excel files. Mr. Waido related his discomfiture with the absence of presentations at this public meeting session. Standard procedure was followed in advertising this meeting. Mr. Majerus requested Staff to contact the usual suspects to uncover any prominent reasons for this lack of response. Moved by Mr. Hill, seconded by Ms. Molander: To adjourn. Motion approved unanimously. The meeting adjourned at 7:40 p.m.