Loading...
HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 12/09/2004CITY OF FORT COLLINS COMMUNITY DEVELOPMENT BLOCK GRANT COMMISSION Meeting Minutes December 9, 2004 Phil Majerus, Chair Bill Bertschy, City Council Liaison In the absence of the Chair, Vice Chair Robert Browning called the meeting of the Community Development Block Grant Commission to order at 6:43 p.m., at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Robert Browning, Michael Kulisheck, Tia Molander, Dennis Vanderheiden, and Jennifer Wagner. Staff present: Ken Waido, Heidi Phelps, Maurice Head, Julie Smith. CITIZEN COMMENT No citizen comment was offered. APPROVAL OF SEPTEMBER 30 MEETING MINUTES The minutes of the September 30, 2004, CDBG meeting were amended as follows: On page 1, Tia Molander and Laura Sutherlin were added to the list of Commissioners present. The spelling of Michael Kulisheck's name was corrected throughout. On page 3, under HO-2 Land Bank Program, the words "Motion approved unanimously." were deleted. Moved by Mr. Vanderheiden, seconded by Mr. Kulisheck: To approve the September 20, 2004, minutes, as amended. Motion approved unanimously. CATHOLIC CHARITIES NORTHERN MISSION BUILDING SCOPE OF WORK AMENDMENTS Mr. Waido explained that the scope of the project approved by the Commission during the spring 2004 cycle of the Competitive Process was changing. Appearing with Ruth Gonzales, Executive Director of CNN, Helen Somersall, Construction Manager, presented a revised scope of work and budget showing reordered priorities for allocating the $50,000 grant. She added that the amount is not changing, just the work priorities and a few of the tasks. John Alvarez, Shelter Manager, provided background that once work on the original projects was begun, other problems were discovered that must be addressed in order to proceed. For example, instead of simply replacing tile in the women's dorm bathroom, because the floor underneath had rotted it will Community Development Block Grant Commission Meeting of December 9, 2004 Page 2 have to be replaced before the tile work can be done. This in turn will require unanticipated repairs in the TV room directly beneath the bathroom. He added none of the work is optional; they just have more priorities than they expected. Ms. Phelps reminded the Commission that it was important that the revised scope of work be general enough not to box in the applicants, but specific enough that only work included in the scope of services be eligible for reimbursement. The grant cannot pay for any work done prior to a contract amendment. Mr. Alvarez confirmed that the work in the original request will still be completed; additional carpet is being paid for by funding other than the grant. Moved by Ms. Molander, seconded by Mr. Vanderheiden: To approve the revised scope of work for Catholic Charities Northern Mission Building repairs. Motion approved unanimously. The applicants thanked the Commission for giving them the flexibility they need to complete the projects. HOME BUYER ASSISTANCE hg Waido gave background on this issue: Staff was asked how the City's Home Buyer Assistance related to Habitat for Humanity. Home Buyers Assistance is designed to help families who can afford monthly payments on a mortgage but lack the necessary lump sum for a down payment and closing costs. Habitat only requires that families pay a flat 30 percent of income, so HBA funds don't have any effect on getting them into the unit; it merely shortens the length of the loan obligation. Staff felt it was not necessary to make changes to the HBA program for Habitat applicants, and they should still be eligible for assistance. Ms. Smith added that while the HBA funds carry over from one year to the next and no one has ever been turned away, the program came close to running out of money this fiscal year, and staff anticipates an increase in the number of applications next year. Mr. Browning was concerned that funding Habitat families, whose monthly mortgage amounts are not lowered, would affect the capability to finance non - Habitat families. Mr. Kulisheck thought it would be equally unacceptable to exclude Habitat families from the program and then have money left over at the end of the year. Mr. Vanderheiden felt it would not be fair or possible to exclude Habitat families from the program. Ms. Phelps said that the staff felt that Fair Housing Laws would prevent anyone who met the income requirements from being excluded from the program. Mr. Head pointed out that no one other than Habitat is serving the needs of people at 50 percent AM] and below, with or without HBA. Mr. Browning contended that this issue should come before the Affordable Housing Board for a policy recommendation. Community Development Block Grant Commission Meeting of December 9, 2004 Page 3 Mr. Waido provided an update on another HBA issue that had been brought up by a member of the AHB. The goal is to devise a method to get the money lent under the HBA program to come back quicker, so it can be available to lend to other families in need. However, under HUD rules, money repaid under the program is not automatically restricted to HBA, so would not necessarily help the program become self-supporting. Staff and the AHB also oppose anything that would create a greater financial burden on the recipients of the assistance in the form of a higher monthly mortgage payment to cover HBA repayment. Ms. Smith said that one problem with trying to reorganize the program is that it had only been making loans since 1998 — they had previously been grants — and of the 800 loans made in that time, 326 are active now. Even without a definite repayment schedule, Ms. Smith said a great number have been paid off in the first five years of the loan, but higher interest rates may affect this. There's not enough of a track record to know for sure. Mr. Waido reported that the AHB had tabled discussion of the issue at its December meeting but will take it up in January for discussion and a vote with more members present. He will keep the CDBG Commission informed of the progress of this issue. COMPETITIVE PROCESS DEBREIFING The Competitive Process spring cycle starts in January. Mr. Waido asked for feedback from the Commission on how the fall cycle had worked. He explained staff is proposing new forms be used for public facilities projects that don't precisely fit either housing or non -housing (public service) categories now. Ms. Molander felt a separate public facilities application would be clearer for the Commission to evaluate. Ms. Phelps added there is a new acknowledgment form for directors of agencies that are owners of record for the property on the Competitive Process application. It states that there are no longer any grants or forgivable loans available under the Competitive Process; all funding is, at minimum, in the form of no -interest due -on -sale loans with a 5 percent service fee. If CDBG money is used, a restriction is placed on the deed that the facilities must continue to be used for CDBG-eligible purposes or the loan must be paid back even if no sale occurs. Mr. Browning proposed Commission members be prepared to devote three days to applicant presentations; Ms. Wagner agreed it is not fair to applicants for meetings to go past 9:30 p.m. Staff agreed that the Commission should keep the discussions on track to make the meetings more productive. Community Development Block Grant Commission Meeting of December 9, 2004 Page 4 CDBG COMMISSION BY-LAWS Mr. Waido explained that the City Clerk's office had no by-laws on file for the CDBG Commission, so he had updated a previous document from the days of the Steering Committee for discussion by the Commission. Mr. Kulisheck asked that item 4 under Article II be amended to include expenditures from any new funding sources that may become available in addition to the specific sources named. Mr. Browning asked how closely the by-laws should conform to the requirements of the City's Boards and Commissions manual, specifically on the timing of election of officers. As presented, the by-laws require election of a Chair and Vice Chair in January; Mr. Browning would prefer elections to be held in December. Moved by Ms. Wagner that the CDBG by-laws be amended to require election of officers in December; seconded by Mr. Vanderheiden. The issue of lame -duck vs. new -member voting was discussed at length. In support of January elections, Mr. Kulisheck pointed out that December meetings are not very well attended; if a vote were taken tonight, only five members would be deciding the officers for the next year, without input of new or absent members. Other bodies, such as the U.S. Congress, allow new members to elect their own leadership. He suggested that the Chair and Vice Chair not have terms expiring at the same time. In support of December elections, Ms. Wagner felt it was important for Commission members get to know each other before voting on officers; she abstained from the vote last January because it was her first meeting. Mr. Browning pointed out that tonight was Mr. Majerus' last meeting, and that the Vice Chair — Mr. Browning himself — will be absent from the January meeting, so a temporary chair will have to be appointed or allow staff to run that meeting. Such a situation could be avoided by electing officers in December. Mr. Browning offered a friendly amendment that effective in 2005, CDBG officers be elected in December. The amendment was accepted by both Mr. Vanderheiden and Ms. Wagner, and the amended motion passed unanimously. Election of 2005 Chair and Vice Chair of the CDBG Commission will be held in January 2005; election of 2006 officers will be held in December 2005. Community Development Block Grant Commission Meeting of December 9, 2004 Page 5 OTHER BUSINESS Ms. Smith distributed the Consolidated Plan Annual Performance Report. On behalf of the staff and Commission, Mr. Waido thanked Phil Majerus, in absentia, for his service over the past seven years. The meeting adjourned at 7:46 p.m.