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HomeMy WebLinkAbout2003 - Housing Catalyst - Annual ReportFORT COLLINS HOUSING AUTHORITY YEAR IN REVIEW 2003 Just as a house is built upon a solid foundation, the Fort Collins Housing Authority is built upon its mission: To promote adequate and affordable housing, economic opportunity and a safe living environment free from discrimination. FCHA currently assists approximately 1,500 families (3,750 individuals) throughout Larimer County through various programs. These programs include federally subsidized Low Income Public Housing, Section 8 Rental Assistance and management of the Wellington Housing Authority. Management also includes the Fort Collins Housing Corporation's non -subsidized affordable housing properties, and the historic Northern Hotel low income housing tax credit development. Fort Collins Public Housing Fort Collins Housing Authority Public Housing Program consists of 154 units owned by the Authority. Operating subsidy allows the program to serve families earning virtually no income, but regulations authorize serving families earning up to 80% of area median income. Attachment A provides 2003 demographics. For 2003, Fort Collins Public Housing had an average vacancy rate of 2%. This program had an annual turnover rate of 16%; meaning 24 of the 154 units had a family move -out during the year. The average unit turn -around time for public housing in 2003 was not good. It averaged 36 days which is a "D" rating by HUD's Public Housing Assessment System scoring methodology. This number includes both maintenance and leasing time. Due to wait list processes, it has been very difficult to lease people in a timely manner. For 2004, applicants for the Public Housing Program will be required to submit a full application with verifications in order to be placed on the list and also to remain on the list. The list will be purged more frequently in hopes that only serious applicants will be offered housing. This waiting list was recently purged and there are currently 247 applicants remaining on the list. At this time, the anticipated length of wait is 12 to 24 months for an offer of housing. Another factor in the long unit turn -around times for public housing is the number of units turned over annually in the Affordable Housing Program which will be discussed below. Wellington Public Housing The Fort Collins Housing Authority manages the Wellington Housing Authority through an intergovernmental agreement. There is a Board of Commissioners who meet on a monthly basis to review activities, set policy and prepare and authorize budgets and capital improvement plans. The Wellington Housing Authority consists of 42 public housing units. Applications have been submitted for the past few years for Section 8 Housing Choice Vouchers for Wellington, but appropriations for the program have been small and funding was not awarded to WHA. Wellington Public Housing vacancy rate for 2003 was 3%. This program had an annual turnover rate of 31 %. There was a great deal of movement during the first part of the year but the occupancy stabilized after that time. Wellington Public Housing also had a high average unit tum-around time of 34 days. Here again, the wait list process has been changed for 2004 so that only the most serious applicants will be offered housing. As of December 2003, there were 72 applicants on the Wellington Public Housing waiting list, with an estimated wait of 18-24 months before an offer of housing. Staff held an annual meeting with Wellington Public Housing residents this year, and also hosted a Tea Party for the residents of the 14 Wellington Senior Housing units. Staff members work closely with the Larimer County Sheriff s department, Wellington Code Enforcement Officer, and other local officials. Housing Choice Voucher Program The Fort Collins Housing Authority administers approximately 850 Housing Choice Vouchers (HCV), also known as Section 8, for Fort Collins and Larimer County. The Larimer County allocation of 100 of these vouchers is administered through an intergovernmental agreement, 65 of which were received through a grant awarded in 2003. Attachment A provides 2003 program demographics. The Fort Collins Housing Authority administered $5,444,000 in Housing Assistance Payments (HAP) to local landlords on behalf of participating families in 2003. FCHA values local landlords a great deal and continues to work on ways to improve their satisfaction with the program. HAP checks are sent in a timely manner, a landlord brochure and program information is readily available, and FCHA staff are active members in the Fort Collins Apartment Owners Association where they interact with local landlords on a regular basis. In April, FCHA staff set up a booth at the Association's annual trade show at which over 200 local landlords and property owners attended. HUD grades this program through its Section 8 Management Assessment Program or SEMAP. We anticipate an A rating again for 2003 and 100% of our HUD allocation was utilized. This year, the Board of Commissioners passed a resolution to "project -base" 20% of the voucher portfolio for use in properties owned by local affordable housing providers experiencing difficulty preserving their permanently affordable housing due to local market conditions. The Fort Collins Housing Corporation, CARE Housing and Neighbor to Neighbor were selected by an independent third party committee to receive an allocation of project -based vouchers. These vouchers are being assigned to these properties as they turnover and are anticipated to be contracted to these new properties by the spring of 2004. The program had typically seen an average of seven vouchers turn over each month, but for the latter part of 2003 only three vouchers per month were relinquished by families and re -issued to the project -based units. At this rate, this program is experiencing a 4% turnover rate annually. As of December 2003, there were 908 applicants for the HCV program. This waiting list was closed on February 15, 2003. The anticipated wait is now three years from the date of application if additional vouchers are received in 2005. A separate waiting list is administered for people interested in the project -based voucher program. There are currently 25 applicants on that list with a wait of one to four months. All units leased under the Housing Choice Voucher Program must pass a Housing Quality Standards (HQS) inspection each year in order to receive subsidy. FCHA has one full time inspector on staff. This inspector is well trained in the inspection protocol and FCHA utilizes a hand-held computer which "syncs" to our housing management software to do these inspections. Staff work toward using the most current technology whenever feasible. Single Room Occupancy: Supportive Housing For Homeless On behalf of the Fort Collins Housing Corporation, the Fort Collins Housing Authority operates three sites with 42 total single rooms of permanent supportive housing for individuals who are homeless upon admission. Two of these projects known as The Homecoming I and II receive direct HUD rental subsidy. The third project, Linden House, receives no operating or rental subsidy at this time. A Fort Collins CDBG grant was written and awarded in the amount of $222,565 for the Homecoming I on Myrtle Street. This grant consists of $103,565 for replacement of a failing heating system, roof, and several other Housing Quality Standards items, and $119,000 to pay of the remainder of the mortgage on this building. An application for rental subsidy for Linden House was submitted but not awarded. This application was written in conjunction with the Latimer Center for Mental Health and United Way, and was a part of a larger continuum of care for homelessness. This grant was very competitive nationwide and only the Colorado Coalition for the Homeless in Denver was funded for Colorado. A request will be made to the Northern Front Range Continuum of Care to sponsor an application in the spring of 2004 for rental subsidy for Linden House. This funding is from HUD's McKinney Homeless funds, which must be submitted through the Continuum of Care committee. Linden House has typically run at a loss and has been subsidized over the years by other Corporation property income. This site is leased from a private owner. The current lease runs through 2006 and the owner wants to execute a lease for an additional ten years. This year, staff was able to get the Larimer Center for Mental Health to provide case management for the residents of Linden House. In the past, case management for these residents was not coordinated or mandatory. 3 Additional goals for 2004 include securing funding for upgrades at the Homecoming II on First Street through grant sources or the Interfaith Community Partnership Summit, and securing upgrades for Linden House through a benefit to be held in February. This is a highly unstable population. There were 44 move -outs in 2003 for a turnover rate of 105%. As of December 2003, there were 67 applicants on this waiting list with an expected wait of up to six months. Throughout all of the turn-overs, staff was able to maintain a yearly average occupancy rate of 92%. Affordable Housing Program (Fort Collins Housing Corporation) The Fort Collins Housing Authority is the management agent for the Fort Collins Housing Corporation. The Corporation owns 381 units of housing scattered throughout Fort Collins. This portfolio consists of every type of housing from single family detached to the 95-unit Sleepy Willow apartment complex. The vacancy rate for this program as of December 2003 was 7%. Keeping these units fully occupied has been a challenge for over a year. In 2003, a total of 174 turned over for a turnover rate of 51 %. As of December 2003, staff were working with 25 applicants for this program with an expected wait of up to four months depending upon family size and needs. Average household income for the Affordable Housing Program by family size is as follows: Family Size Average Annual Income 1 $ 9,552 2 $13,700 3 $14,381 4 $17,405 5 $18,577 Total Average $12,716 A great deal of capital improvement/modernization work was in progress or completed for the Housing Corporation in 2002-2003: CDBG Corp Rehab Phase III 258,000 CDBG Sleepy Willow Deck Replacement 83,430 CDBG Myrtle SRO Rehab 103,565 Total 444,995 In 2003, staff prepared an application for acquisition of an 8-plex in Fort Collins in conjunction with City of Fort Collins utility easement staff. This application was not submitted due to timing issues on the owner's part and may be brought forward in 2004. Staff prepared feasibility reports on several other potential acquisitions in 2003, however none were prudent due to price and the current state of the economy/local housing market. Northern Hotel The Fort Collins Housing Authority is the contracted management agent for the Northern Hotel Limited Partnership. As management agent, the Authority provides all leasing functions, which include eligibility and compliance work for all of the grant and funding sources that require income eligibility. Documentation and reporting is required by the Low Income Housing Tax Credit Program of the Colorado Housing and Finance Authority, the Colorado Division of Housing HOME program, the Federal Home Loan Bank of Topeka, and for all of the income requirements of the Housing Choice Voucher Program. The Authority "project -based" 47 Housing Choice Vouchers to the Northern Hotel in 2001 due to severe vacancy problems. Since that time, the program has been full as it is now serving people earning well below 30% of area median income. Of the 47 total households in the Northern Hotel, the average annual income is $8,499. The average tenant rent is $166 for the one -bedroom units and $171 for the two -bedroom units. As of December 2003 there were 17 applicants for this program with an expected wait of six to twelve months. Maintenance management of the Northern Hotel remains challenging. The Fort Collins Housing Authority Facilities and Maintenance Manager spends a great deal of time working on systems that also effect the commercial space of the site. Any work provided above and beyond the scope of the management agreement is billed at a separate "owner's representative" rate to cover this expense. FCHA is now also providing IT support for the computer lab at the Northern Hotel. Facilities and Maintenance Department CDBG Phase II Rehab Project: Rehabilitation work was completed on 40 units of the Housing Corporation's rental units. This work involved the replacement of roofing, vinyl siding, windows, storm doors, gutters, concrete, fencing flooring tree pruning tub surrounds kitchen cabinets and exterior doors. CDBG PHASE III Rehab Project: Rehabilitation work began in September of 2003 on 18 Housing Corp units. Rehabilitation consists of concrete replacement gutter replacement, exterior paint, exterior siding, roof replacement window replacement, storm door replacement, new water heaters, plumbing replacement, extensive tree pruning furnace replacements, porch and roof structural repair. This project will be completed in January of 2004. CDBG Sleepy Willow Deck Replacement: In January of 2003 Maintenance staff saw movement of several decks on the 96 unit Sleepy Willow Apartments. A structural engineer was hired and the decks were found to be rotting and unsafe. A CDBG grant was awarded and the defective decks were safely demolished and reconstructed using treated lumber and Trek type decking. Work was completed and this grant was closed in July of 2003. CDBG 811 Myrtle Rehab: The old nursing home that is now being used as an SRO building had an original heating system installed in the early 1970's. During the winter of 2002, leaks developed under the concrete slab in the heat line. Staff found the leak and repaired it, but another developed in the spring of 2003 and could not be located. A CDBG application was submitted and awarded for a new heating system, roof replacement, and other needed upgrades for the entire building. Public Housing Capital Fund: Capital work continued on Fort Collins public housing units utilizing HUD's Capital Fund Program money. New siding continues to be installed on several of the homes. The maintenance facility received some cosmetic upgrades, and security system upgrades were installed at both administrative offices. A new lock and key system has been purchased and 70% of the units have been upgraded. Two Wellington public housing units received complete upgrades, including new flooring, interior doors and casings, baseboards, and texture and paint. Drainage work was completed at Wellington's seniors' complex. The seniors' units received new lighting. Bids for cabinet replacement and gutter replacement have been requested. Work Orders Completed 2003: • Staff completed 616 emergency service calls within 24 hours • Staff completed 2471 routine resident generated service calls with an average completion time of 6 days • Staff completed 322 long-term service calls • Total service calls completed in 2003 including our vacant unit work orders is 3654 Homeownership Programs FCHA's Housing Choice Voucher Homeownership Program continued to be a model for other housing authorities across the region. Twenty families started off the year in the program working on goals of self-sufficiency in preparation for homeownership. The first three families to successfully achieve their goals of homeownership closed in 2003. New Homeowner Statistics: Family Size 5 Annual Income $38,116 HAP $198 Purchase Price $167,000 Time to Purchase 6 months 7 6 $12,012 $27,164 $1120 $562 $243,700 $185,000 7 months 8 months Emily Bullard, the Homeownership Coordinator, continued to develop and implement plans for administration of homeownership services and programs to ensure that applications and selection of participants were in accordance with procedures, rules and regulations of the FCHA Administrative Plan and with HUD. A waitlist was established C9 which now holds over 55 pre -qualified families. Networks and relationships were developed with community lenders, real estate companies, housing organizations and other key persons in the community. Two lenders committed to serve families on the program and a third will come on board in early 2004. Homeownership presentations were given to potential participants, community organizations, lenders and other parties. Emily prepared a presentation for Mountain Plains Regional Council of NAHRO for the annual conference. The session feedback sheets showed that the presentation was excellent and conferees would like to see the session repeated at future conferences. FCHA is a pioneer in utilizing the Section 8 program in this way only recently allowed by Congress. Staff also continued to analyze properties listed for foreclosure, which had some form of subsidy attached in order to determine if purchase and resale would be feasible. There were no properties in 2003 that made financial sense to purchase. Family Self Sufficiency The Housing Choice Voucher Family Self -Sufficiency (FSS) program continued to serve approximately 40 families. This program is funded through a one-year renewable grant for salary and benefits of the coordinator. In 2003, there were five graduates from the Voucher FSS Program. Each of them received the escrow they had accrued. Three participants have reached incomes high enough to no longer qualify for housing assistance. Graduates Escrow Disbursements Family 1 - $1,136 Family 2 - $1,065 Family 3 - $1,149 Family 4 - $2,813 Family 5 - $12,913 The Public Housing FSS program is open to all public housing families, however this program has historically had a difficult time getting a great deal of participation. A new coordinator was hired in the late summer of 2003 and he seams to have generated a renewed interest in the program from these families. There are currently 12 families formally contracted with goals, however, supportive services are provided to many more families. (There are 196 total Fort Collins and Wellington public housing units vs. 884 Housing Choice Voucher Program units.) This program is currently funded with a three- year grant from HUD that expires in April of 2004. A grant was written for continued funding, however only the Denver Housing Authority and the Jefferson County Housing Authority were funded in Colorado. HUD has recently allowed an "add -on" to the public housing operating budget for an Elderly/Disabled Service Coordinator. This position was submitted in the 2004 budget to HUD and once approved will continue self-sufficiency services currently provided. Special events through the FSS programs in 2003 included the 6u' Annual Mervyns Childspree, which this year provided back -to -school clothes for 60 children. Several grants were received for client assistance funds and were used for families who are actively working on their goals for items such as car repairs, certain medical expenses, childcare, etc. A gift of $1,000 was also received for holiday client assistance from the Fort Collins Apartment Owners Association. The Fort Collins Housing Authority provides two offices and computer support to the local non-profit Project Self -Sufficiency. This program provides self sufficiency services to single mothers and often serves families in the Authority's housing programs. Maintenance Department Fort Collins Housing Authority Maintenance Department special accomplishments for 2003 include creating a formal written Maintenance Procedure manual, finalizing automation of the inventory system, and getting the automated procurement system up and running. Twenty-year capital replacement schedules were prepared, however it has been difficult to implement the schedules for the Housing Corporation's portfolio due to revenue deficits due to vacancy rates. The revenue forecast for 2004 is much better, partially due to improved occupancy and partially due to the project -basing of Housing Choice Vouchers. Finance An automated purchase order/requisition system was implemented in 2003. This process is now completely computerized and allows for checks and balances throughout the purchasing processes. This was a very difficult system to implement both in IT set up and procedure development, but is currently working well. Direct deposit for payroll was implemented in 2003. The option of direct deposit for housing assistance payments will be offered to landlords participating in the Housing Choice Voucher Program in 2004. A goal for 2004 is to track all costs by unit or project. Historically, the Fort Collins Housing Authority and the Fort Collins Housing Corporation have taken a portfolio approach to costing and budgeting. Due to the economy, vacancy problems, and revenue concerns, it will be important to know the costs of operation of each unit in order to assess whether certain units should be sold and whether economies of scale outweigh the benefits of scattered sites. Information Technology The Fort Collins Housing Authority strives to keep all information technology systems up-to-date to provide the best possible service to our customers. Several new replacement computers were purchased in 2003. The computer network is through the City of Fort Collins, to include the Novell system, Groupwise and Internet access. Emphasys Computer Systems is our Housing Authority software vendor for transmission of all data to the U.S. Department of Housing and Urban Development. Community Coordination and Advocacy In 2003, FCHA provided leadership and advocacy through the following: • Fort Collins Apartment Owners Association • Neighborhood Task Force • Larimer County Affordable Housing Coalition • Larimer County Workforce Investment Board: Executive Committee and Youth Council • PSS Meetings • Social Services Family Response Team • Northern Front Range Continuum of Care • Interfaith Council • Interfaith and Community Partnership Summit • Eastgate Homeowners Association • Stanford Homeowners Association • Thunderbird East Neighborhood Association • Northside Neighborhoods Plan Technical Advisory Committee • FirstCall ServiceNet • Homeless Day Shelter Steering Committee • City Manager's Executive Lead Team • National Association of Housing and Redevelopment Officials: State, Regional and National Committees • City of Fort Collins, City Plan Update Technical Advisory Committee • Housing NOW Conference • Colorado Coalition for the Homeless • Larimer County Home Improvement Program (LaHIP) • Larimer County Homeownership Program (LaHOP) • Larimer County Drug Task Force • 287 Bypass/CDOT Impact Committee Other Accomplishments • Board of Commissioners created a development partnership criteria and application. • Staff reviewed the agency's Core Values and focused on customer service. • The agency received another clean audit report. • Employee benefits were reviewed and a new health insurance provider was selected with minimal impact to employees. A Section 125 Flex Plan for employees was approved for 2004. • Labor market adjustments were approved for 2004 with information from the annual wage survey data. 0 Attachment A Fort Collins Public Housing 2003Demographics 2003 Fort Collins Public Ho sing Distribution by Avera a Annual Income % Extremely Low Income, Very Low Income, Low Income, Below 30% of Median or 50% of Median or $32,400 80% of Median or $51,850 < $19,450 family of 4 for family of 4 for family of 4 77 12 2 2003 Fort Collins Public Housin& Average Annual Income ($ Fort Collins Public Housing 9,137 Colorado Overall Average 10,324 2003 Fort Collins Public Housing Distribution bv Source of Income With any wages With any welfare With any SSUSS/Pension With any other income 33 1 27 35 1 25 2003 Fort Collins Public Housing Distribution by Total Tenant Payment % $0 $1-$25 $26-$50 1 $51-$100 1 $101-$200 1 $201-$350 1 $351-$500 $501+ 1 0 171 18 1 29 1 21 1 8 6 2003 Fort Collins Public Housing Distribution by Family Type (%) Elderly, Elderly, Non- Non- Elderly, Elderly, Non- Non- All no with elderly, elderly, no with elderly, elderly, female children, children, no with children, children, no with headed non- non- children, children, disabled disabled children, children, househld disabled disabled non- non- disabled disabled with disabled disabled children 5 0 2 61 5 0 19 8 63 Housing Choice Voucher Program 2003 Demographics 2003Fort Collins HCVAvera eAnnual Income $ Fort Collins Public Housing 9,859 Colorado Overall Average 9,627 2003 Fort Collins HCV Distribution by Source o Income (% With any wages With any welfare With any SSI/SS/Pension With any other income 18 1 24 1 72 1 22 10 2003 Fort Collins HCVDistribution by Total Tenant Payment $0 $1-$25 1 $26-$50 1 $51-$100 1 $101-$200 1 $201-$350 1 $351-$500 1 $501+ 1 01 13 1 13 1 32 1 25 9 8 2003 Fort Collins HCVDistribution b Family Type Elderly, Elderly, Non- Non- Elderly, Elderly, Non- Non- All no with elderly, elderly, no with elderly, elderly, female children, children, no with children, children, no with headed non- non- children, children, disabled disabled children, children, househld disabled disabled non- non- disabled disabled with disabled disabled children 10 0 8 44 7 0 22 9 48 2003 Fort Collins HCVAvera a Tenant Payment by Famil Type ($ Elderly, Elderly, Non- Non- Elderly, Elderly, Non- Non- All no with elderly, elderly, no with elderly, elderly, female children, children, no with children, children, no with headed non- non- children, children, disabled disabled children, children, househld disabled disabled non- non- disabled disabled with disabled disabled children 213 224 232 235 215 207 192 239 224