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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 03/01/2001CITY OF FORT COLLINS COMMUNITY DEVELOPMENT BLOCK GRANT Meeting Minutes March 1, 2001 Phil Majerus, Chair Alfred Flores, Vice Chair Bill Bertschy, City 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, Alfred Flores, Terri Bryant, Vi Guthrie, Jennifer Molock, Dennis Vanderheiden, and Cheryl Zimlich. Linda Coxen arrived late. Staff present: Ken Waido, Heidi Phelps, Maurice Head, Julie Smith, and Stacy Kelley. STAFF ROLE CHANGES Mr. Waido introduced Heidi Phelps. Ms. Phelps and Ms. Smith will share administration of the HOME and CDBG program jointly. Ms. Phelps has been a City employee within the Department for eight years. The philosophy behind the shared responsibility is customer service from a shared expertise and knowledge base. ELECTION OF OFFICERS (CHAIR AND VICE CHAIR) Mr. Majerus called for nominations. Ms. Zimlich nominated Mr. Majerus to continue as Chair. No other nominations were named. Mr. Steffes moved to close nominations for Chair and elect Mr. Majerus by acclamation. Ms. Zimlich seconded the motion. Motion approved unanimously. Mr. Majerus opened nominations for Vice Chair. Mr. Majerus nominated Mr. Flores to continue as Vice Chair. No other nominations were made. Mr. Majerus closed nominations and called for the vote. Mr. Flores was elected unanimously. APPROVAL OF JANUARY 11, 2001 MEETING MINUTES Changes were noted: Year from 1999 to 2001. Mr. Vanderheiden noted that his name had been misspelled. Mr. Flores asked for clarification of the BAVA subarea plan on page 8; Mr. Waido noted that the minutes accurately reflected the situation. Ms. Guthrie noted the following: Awkward language on page 2. Page 5; fifth paragraph; "aided" should be "added." Page 4, "16" should be "6." Page 6, fifth paragraph: "Once side" should be "aside." Moved by Mr. Steffes, seconded by Mr. Flores: To approve the minutes of January 11, 2001, as amended. Motion approved unanimously. RE -PROGRAMMING OF KING PROPERTY FUNDING Community Development Blo. Brant Commission Meeting of March 1, 2001 Page 2 Mr. Waido distributed a memo stating that the Housing Authority was abandoning its efforts on the King property. The onsite and offsite improvements that are needed would bring the project into a nonaffordable status. The project is not feasible as presently postured. The CDBG funds are being returned for reallocation. Discussion was held about use of the funds as a contingency for more immediate funding needs in the upcoming funding cycle. Reprogramming does not affect the public service and administration allocations of the present -year funding. The land involved may be subject for review within the new land bank program. Mr. Majerus inquired whether drainage and improvements are assessed to the landowner. Mr. Waido explained the requirements of the improvements and sharing of expenses between the property owner and the City. The landowner bears the cost of required improvements for that property; the City contributes for additional improvements needed to be made on that property for improvements for the basin generally. LAND BANK MEMO DISCUSSION Mr. Head noted a memo in the Commission packet that summarized the discussion with City Council. He summarized the contents of the memo, the philosophy of land banking, and the presentation as made to City Council. Certain salient portions included: Nonprofits targeted for 30 to 50 percent AMI. Land sold at discount to nonprofits. Land sites must be close to certain existing amenities. Purchases will be too small to affect the retail housing market. The program will cost $170,000 more than the total placed into the fund over a 15-year period but will provide ready sites for future affordable development. Mr. Head noted that the Affordable Housing Board supported the concept by a 6-2 margin. City Council is supportive. The memo to the Commission is for the Commission's information and introduction to the anticipated amendment reading on March 20, 2001. Mr. Head distributed: a memo from Rusty Collins; an opinion column on the issue; and a headline article on affordable housing land needs. Ms. Zimlich inquired about the time period needed to hold acquired land. Mr. Head stated that after the first few parcels had been purchased, the evaluation would be made at that point as to future disposition and funding. Mr. Waido noted that the Affordable Housing Board feels that the land bank program should not be an applicant for funding in the competitive process. Community Development Blo, Grant Commission Meeting of March 1, 2001 Page 3 It was noted that other City departments are generally in search of property, sometimes obtaining more land than necessary due to property owner requirements to purchase the entire property. A possibility is seen for cooperation with those entities in obtaining land bank property from the excess property acquired by those departments. In response to questions, Mr. Head noted that feasibility evaluations would be made quickly upon approval of the land bank process. Mr. Head feels that many opportunities will be opened in this process. The success of the program will be seen by the results garnered when compared against the targets. The value of availability of land for affordable housing years down the road arguably supersedes any narrow study of program profitability or complete funding self-sufficiency. It is foreseen that a nonprofit entity would apply for CDBG funding to purchase property acquired by the land bank program. HUD has been consulted and is agreeable to this process. The City Attorney is keeping a close eye on the program to ensure that the City is not engaging in land speculation. There are City Charter and ordinance prohibitions against land speculation. Mr. Head stated that City Council will not need to approve each sale. It is unknown at this time whether future discounted land will, by itself, make a 30 percent AMI project feasible. It does present another "tool" in the City's affordable housing toolbox. Moved by Mr. Flores, seconded by Ms. Coxen: To support the land bank program; the Commission is not averse to future applications for monies through the CDBG and Affordable Housing Fund funding process. In discussion, Commission members stated that it was their intent to review all possibilities that would generate affordable housing. Mr. Waido noted that the City cannot be the sole source of funding for these projects. In response to questions, Mr. Waido noted that the difference between this process and the SID problems in the past is that these properties are being picked and chosen by a certain and specific City site selection process. It was questioned why an affordable housing developer searching for property could not simply find land that was available to the City. Staff members noted that the land bank process is a long-range program, and that history shows that affordable housing developers are generally not prepared when a parcel becomes available. This program would make the parcel more affordable when the developer is prepared to proceed on a worthy project. Land held by the City is tax-exempt. Motion failed, 4-5. Moved by Mr. Flores, seconded by Mr. Steffes: To support the land bank program. Concerns and comments: One year is a short time to evaluate the program. A flat future real estate market would be counterproductive to the land bank efforts. A Community Development Bic Grant Commission Meeting of March 1, 2001 Page 4 question was raised whether the Commission was acquiescing to restrictions that others would place on the process. It was noted that no potential applicant was being encouraged or excluded by this motion. Motion approved 7-2. AFFORDABLE HOUSING FORUM UPDATE Ms. Smith gave a history of an educational forum originally scheduled for March. That forum has been delayed, in potential favor of a task force to be formed to address the target of the process. Other Staff members noted that the education process has been aggressive over the years. The mission of the Affordable Housing Board fills the role of a "task force." Other strategies are being explored. MANUFACTURED HOUSING REPORT Mr. Head gave a review of the report. This report grew out of the problems generated from the Harmony Park issues. The mobile home market in the city and county is tight and is growing tighter. The report addressed short-term and long-term conditions and needs. Outside private funding was obtained to assist with the report. Mr. Head reviewed the list of the issues studied and addressed by the report. Staff has consulted with a mobile home park developer (CWS), who may be addressing construction of a park in Fort Collins. That developer, due to its methods and capitalization, can be a competitive player in making such a project profitable. Staff is working with that developer in addressing the market realities in Fort Collins. Two needs are seen: To preserve existing stock; and to develop viable new stock. The developer is interested in Fort Collins specifically and is as yet undaunted by the planning process. The product is superior to existing stock, and land ownership options are seen as still open. Development, impact, and utility fees were discussed, particularly in view of the density of the type of project being discussed. Mr. Waido gave a complete overview of the vagaries of fees apportionment in light of public interest, practicality, and legal precedent. In response to questions, Mr. Waido stated that rehab fees are appropriate for both CDBG and HOME funding. Ms. Smith noted that any house on a permanent foundation is available for homebuyer assistance. Mobile home units are generally not considered to be eligible. Further, because of the rent situation, these units are subject to eviction. Parcel sales have been discussed but have not been advanced at this point. The demographics of mobile home parks were discussed. The populations are generally considered to be quite diverse. STATUS REPORTS Community Development Blo, Grant Commission Meeting of March 1, 2001 Page 5 Ms. Smith distributed a written report. She noted that homebuyer assistance applications have increased with lower rates. General discussion was held over individual items, with no amendments offered. Ms. Smith noted that the Woodlands project has not made its yearly payment; the new management is not cognizant of the payback agreement and will review it. Mr. Waido and Ms. Smith explained the history of this issue. Ms. Smith gave a review of administration expenses. DISTRIBUTION OF FY2001 CDBG PROPOSALS The FY2001 CDBG proposals were distributed. Mr. Waido distributed and explained a memo on the Housing proposals. He distributed a score sheet as prepared by staff. He then distributed a summary score in spreadsheet fashion. Blanks are provided for Commission member scores next to Staff scores. Mr. Waido then distributed summaries of the nonhousing proposals, divided into Facilities and Public Service projects. In response to questions, Mr. Waido explained the terms of a conflict of interest. The City definition relates to direct financial benefit. If there is a direct financial benefit, a conflict of interest exists. HUD rules are broader and address more the perception of a conflict of interest. Mr. Waido advised the Commission to be conservative in its approach and declaration of conflict of interest. A conflict of interest for one applicant would preclude involvement in the entire process in that category. The Affordable Housing Board will review the housing proposals, create a priority list and recommendations, and will present their findings to the Commission at a meeting to be set. The Board will also attend the Commission deliberations session. Staff explained the process of accumulating scoring. It has proven to be consistent methodology over the years. Staff provided Commission members with overall numbers within the various categories. In response to questions, Mr. Waido gave a brief overview of a building that was originally bought with CDBG funding and is now being applied to be bought by a different entity, again using CDBG funding. SCHEDULE OF INTERVIEWS Public Service interviews will be held on Wednesday, April 4, 2001; Housing and Ffacilities interviews will be held on Thursday, April 5. Both sessions will be held at the CIC room. Dinner will be at 5:30 p.m., with interviews beginning at 6:00 p.m. Deliberations will be held Thursday, April 12, 2001. That meeting will be held at 5:30 p.m. at 281 North College Avenue. Community Development Bloom.. Grant Commission Meeting of March 1, 2001 Page 6 OTHER BUSINESS Staff distributed a packet on the Boards and Commissions Manual. Mr. Waido noted that an attorney from the City Attorney's office could be present for any legal questions. Upon motion, second, and unanimous approval, the meeting adjourned at 8:35 p.m.