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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 09/28/2000CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES September 28, 2000 Bob Browning, chair (970) 225-0137 Kay Rios, Vice -Chair Ken Waido, Staff Liaison (970) 221-6753 Chuck Wanner, City Council Liaison (970) 484-0810 The meeting of the Affordable Housing Board was called to order by Bob Browning at 4:35 p.m., at 281 N. College Ave., Fort Collins, CO. A quorum was present. Board members present: Bruce Croissant, David Danforth, Isabel Garity, Stacy Overton, Kay Rios, Bob Browning Staff Members Present: Ken Waido, Maurice Head Council Liaison: Chuck Wanner was not present OPEN PUBLIC DISCUSSION None II. NEW BUSINESS Committee members gave the following overviews of each project requesting funding from the CBDG. Volunteers of America — Kav Rios Kay Rios distributed a written report to the Board identifying the various strengths and weak points of the VOA application. Please see attached report. City Land Bank — Bob Brownina Bob Browning provided the Board with his understanding and viewpoint of the funding application. He reported to the Board that in his opinion the City Land Bank should not be funded because the idea of allowing land to lay fallow for 15 years when it is needed right now is counterproductive. He also posed the question; why are there no opportunities for ownership under this plan, rather than just rentals? Kay Rios and Isabel Garity understood his concerns, but they are "on the fence", stating that the idea Affordable Housing Board 0 September 28, 2000 Meeting Minutes Page 2 has merits but agreed that it has problems. Bob proposed to the Board that a letter be drafted to City Council stating their negative opinion on the idea. David Danforth moved that a letter be sent to City Council opposing the land banking idea, Bob Croissant 2nd, motion carried. Fort Collins Housina Corn. — Bob Browning This application posed the question that it will be the first time that funding would be used for routine maintenance and repairs. The Board felt this might set a precedent for this particular type of funding. The Board agreed that assistance with maintenance of low income housing helps to preserve the units, but decided not to recommend full funding because there exists an inherent responsibility of management to include in their rents funding required for necessary repairs. Northern Hotel The Board is continually frustrated with this project for numerous reasons, i.e. define "senior", what is the income level that will be targeted, 40% or 50% AMI? A lot of the aspects of this project are ill-defined and many physical issues have not been addressed such as asbestos abatement occurring only on the top 3 floors. The Board also wondered why they needed more money if Alliance Construction signed a contract for a specified dollar amount. The Board also wanted to know how much City funding the project has already received. In general, the Board agrees that there are too many unanswered questions regarding this project to award it anymore funding right now. Habitat for Humanity — Stacy Overton Stacy's immediate reaction to this application was "GO CANDACE!". She was very excited about the new director's obvious enthusiasm and dedication to the projects of Habitat. However, Bob pointed out that the organization was already behind on one project and that they shouldn't be given any more funds until they have completed the projects already underway. If they were able to finish the project in the next 6 months they could come back and ask for funding during the spring cycle. During discussion, the suggestion was made that if they are rewarded any funding, that it should be a loan and not a grant, which would eventually put the money back into the funding cycle. In spite of all these concerns, Stacy felt that this organization has made a difference in the community and felt they should be funded as a show of support for continued success. CARE Housing — David Danforth David reported that the project will mature in 2003, will house 50 families and that the land will cost 270K. He also felt that CARE has been a good organization in the past and is currently the only non-profit organization which targets 30% AMI without rental subsidies. The downside of CARE's funding application was that it contained numerous typographical errors that suggested that they did it in a hurry and didn't spend enough ` Affordable Housing Board • Is September 28, 2000 Meeting Minutes Page 3 time on it. There was also some sentiment that the application wasn't complete. Even so, he felt that this organization would use the money wisely and therefore recommended that the approval of the funding application to show the Board's support for a job well done. David Danforth moved to send the following recommendations to the CDBG Commission for funding approval, along with a letter stating the pro's and con's of each application, Stacy Overton, Isabel Garity opposed the allocations, motion carried by majority. They also agreed to relay the sentiment that just because money is available doesn't mean it all has to be awarded. If an application isn't justified, it shouldn't be funded just because money is available. VOLUNTEERS OF AMERICA - $500,000 FCHC — Rehab $ 79,550 CHODO — Projects $ 92,250 CHODO — Operations $ 28,200 CARE, INC. — land acquisition $200,000 SURPLUS $209,055 OTHER BUSINESS The Board discussed the upcoming CDBG meeting next Thursday at 5:45 p.m. and felt that it would be beneficial for somebody from the Board to attend. Kay would try to be there but requested a back-up for discussion of the land bank program. Bob and Isabel both said they would try to attend. The next Board meeting will be in November, there is no reason to meet in October. The meeting adjourned at 5:40 p.m. ' Affordable Housing Board • September 28, 2000 Meeting Minutes Page 4 POINTS TO INCLUDE IN LETTER TO THE CDBG VOLUNTEERS OF AMERICA Questions regarding design and budget on Kay's handout 1. Do all units have outside access or internal hallways that link them? If outside, what security is available. 2. How is parking addressed? 3. How will management staff be selected? Is there an age requirement for the on - site manager? Will income level apply to the manager as well (they state that 100% of units are affordable)? How about training requirements for manager? 4. VOA proposes a residents' association to help with management/resident issues. This is an absolute key to the success of the unit in terms of assuring quality of life for the seniors. 5. The administrative fees seem quite high. Maintenance line item seems low. Is this a salary for a live-in manager? FORT COLLINS HOUSING AUTHORITY REHAB 1. What is the root cause of the required maintenance, age or mismanagement? 2. This allocation will set a precedent for funding routine maintenance, does the CDBG want to do this? 3. The AHB feels that helping to maintain low income housing helps to preserve the project, but they are not recommending full funding because there is some inherent responsibility of management to budget and collect adequate rents for necessary repairs. NORTHERN HOTEL 1. The AHB feels that there are many unanswered questions regarding this project; specifically the physical aspects of the building that will be appropriate for senior housing, i.e. lighting, A/C, parking and other issues that affect quality of life. 2. Define senior. 3. What is the actual income level, 40% or 50% of AMI? 4. Does the actual projected cost of 6.3 million include the cost for commercial space or is this figure just for the residential aspect of the project. 5. A contract was signed which guaranteed a maximum price. Why now are they coming back for more money for asbestos abatement when the contractor should have known from the beginning that this would be an issue, given the age of the existing building. 6. What is the actual breakdown of city funding and where is it being spent? 7. Why are the developer's fees so high? 8. This should be a loan, not a grant. Affordable Housing Board • September 28, 2000 Meeting Minutes Page 5 9. Why should affordable housing fund commercial over -runs? HABITAT FOR HUMANITY 1. The AHB wishes to show their support for Candace Mayo and that they have confidence in her abilities to improve all aspects of the organization. However, the AHB is concerned that Habitat for Humanity is already delinquent on another project and feels they should continue working on this particular project before they ask for money for another one. They suggest that they correct these problems and re -apply for funding in the spring. CITY OF FORT COLLINS LAND BANK 1. The AHB unanimously believes any land bank program will be counterproductive to affordable housing. It will increase competition for vacant land and thus raise prices. The area needs affordable housing now, not in five years from now. CARE HOUSING 1. The AHB unanimously applauds CARE for their continual implementation of quality and fiscally responsible housing projects. The board recommends full funding of their application. GENERAL STATEMENT The Affordable Housing Board wishes to convey their sentiment that all applicants must meet applicable standards in order to be considered for funding. The Board does not feel compelled to fund sub -standard projects just because money is available.