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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 02/05/1998CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Meeting Minutes February 5, 1998 Bob Browning, Chair Joanne Greer, Vice Chair Chuck Wanner, City Council Liaison The meeting of the Affordable Housing Board began at 4:10 p.m. at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Chairman Bob Browning, Sylvie Glass, Joanne Greer, Stacey Overton, Kay Rios. Bruce Croissant and Sue Wagner arrived later. Staff present: Ken Waido, Ann Watts. Also present: Chuck Wanner, City Council. Public discussion. Ms. Stitzel stated that, in regard to rebates, TRAC immediately subtracts the rebate from the selling price of the unit. The rebate thereby helps maintain affordability. Christa, from CARE housing, stated that the rebates go directly to rent reduction. The rebates help their rent to stay the lowest in Fort Collins. She stated that should the Bull Run or Buffalo Run developments be grandfathered in for rebates for water service, CARE would like the Eagle Tree project to be grandfathered into that program as well. Changes to Rebate Schedule Ann Watts passed out a chart showing the direct relationship between the percent of income served and the amount of rebate granted. Mr. Waido noted that the Board was considering this approach of a percentage so that if Council adds or increases a fee, new schedule do not have to be created for rebate dollar amounts. The results of the percentages reflect the approximate dollar amount that is paid now. Ms. Watts noted that while the percentages work well for home ownership, the Board may wish to examine the income range within the goals for potential modification. Mr. Browning questioned whether lower -end housing would be stimulated by the schedule; he stated that the linear approach would cost the develop about $1600. He questioned why weighting could not be done for the under-50-percent developments. Ms. Watts replied that the whole scale could be shifted to provide a higher rebate. The approach does not have to be linear; it is simpler that way. Weighting lower - end housing is a valid subject for discussion. Mr. Waido conceded that, although the program is designed to encourage ownership, weighting should be done to encourage housing closer to the 30 percent level. Discussion was held on the feasibility of encouraging housing at lower than 30 percent levels. It was generally agreed that the rebate would be prorated or extrapolated to meet those levels. Mr. Browning noted that, surprisingly, a reasonable number of units at the 50 percent level were either available or in progress. Mr. Waido stated that the Council would not review the chart until March 17; Staff will provide a reworked chart in the interim. Mr. Browning recommended that the subcommittee complete its work on the rebate fees recommendations if a comprehensive package will result. In response to questions by Mr. Wanner, Mr. Browning stated that it may be advisable to look at weighting the rebates higher in percentage to the lower end of the scale, rather than using a linear progression. The lower -end housing is in greater need of stimulation; and the higher -end affordable housing is less marginal and therefore less dependent on the relatively small amount of subsidy generated through the program. Proposed Policy - Rebates and Special Purpose Districts Mr. Waido briefed the Board on this item. The Board in the past recommended that a project inside City limits but receiving utility services from a special district should receive a reduced rebate since not all fees are going to the City. The item was delayed on Council's agenda to receive discussion from the general manager of the district in question. Mr. McFadden, the developer, also had concerns to express. Mr. Waido stressed the need for a consistent policy. City policy is clear that developments within a utility district will be served by that district. Staff needs a policy decision of whether fees paid to a district are to be included within the total amount of fees from which the rebate is calculated, or whether fees to the City only are included within the rebated amount. Scott McFadden asked that tap fees rebates continue. The rebate program is a main reason that the company secured two projects in Fort Collins. The Fort Collins program is being copied by other jurisdictions as well. The program is highly valuable. Mr. McFadden stated that the Bull Run project was approved by the City on the bond side in January 1997 and approved by Planning in September 1997. The project was not aware at any time during any approval process that the rebate would not be provided. He, Lucia Liley, and John Fishbach met last summer to confirm that the rebate program was in place, funded, and available. Mr. Waido clarified that there was never an intent that Bull Run or Buffalo Run would not be eligible for rebates; rather, the question was whether the developments would get a full rebate based on the schedule in effect at the time and because no City fees were being a Affordable Housing Board February 5, 1998 Meeting Minutes Page 3 paid for tap and sewer services. The City will be collecting no fees because it is not providing the service. Fee rebate amounts in terms of placement within the city will be affected by the discussion taking place. Mr. McFadden stated that there is no written policy as to the utility district that will be used by a project. It is this developer's preference to use City water and sewer, but that choice was not available. The project finds itself doubly penalized when it is told to use a more expensive district and also told that the City will not provide rebates. Dean Smith, of the Boxelder Water and Sanitation District, stated that the District has about 8,300 users and bonded indebtedness committed to the infrastructure that will serve the subject property. The line in question serves Cherry Hills; Cherry Hills and the City have a handshake agreement on the number of users who can use the line. The District, in good faith, entered into agreements to construct crossings under Mulberry intended to serve these properties and adjacent properties as well. Mr. Smith went on to state that the developer has his options; he asked the Board to consider that it is impinging upon some long agreements that have considerable financial impact, if the Board elects to make a caveat that a gift has conditions or a subsidy has conditions. The District does not think that that is correct, nor does it look upon it kindly when old agreements are being impinged upon. The District has recently expended a large amount of funding in support of this project. In response to questions by the Board, Mr. McFadden stated that the number of affordable units will not be affected since that is a function of bond and tax credit financing. He asked the Board to consider that the project skewed its rents lower on City Staff's representation that the rebate program was in place. Discussion was held on the interest the District had in whether the project received rebates. Mr. McFadden stated that Buffalo Run, at Link and Lemay, has City water and sewer lines through that property, and City services will be used for that. Mr. McFadden, Mr. Smith, and Mr. Waido discussed the effects of the meeting that Mr. Smith and Mr. Waido attended. The City will not serve properties in the District unless the District declines service. Board members noted that District/City lines and agreements were beyond the scope of the Board; rather, the only issue to be decided was to recommend whether fees should be rebated that will not be received by the City. Concerns were expressed whether assurances were given by Staff to the developer. It was noted that the rebate program could be depleted more quickly if funds were paid out without a corresponding receipt from Affordable Housing Board February 5, 1998 Meeting Minutes Page 4 fees. Board members expressed a desire to encourage affordable housing through the program; others expressed a reluctance to expend funds for what was originally considered to be a rebate of City revenues. It was affirmed by several members that City policy is to rebate City fees; the present situation was asking for a special exception. Moved by Mr. Croissant, seconded by Ms. Rios: To affirm the Board's original decision regarding applicability of rebate fees. Mr. McFadden protested that nothing in the City's literature had indicated that rebates would not be applicable. Mr. Smith asserted that applying a condition to the developer was abrogation of a contract. Mr. Browning noted that the City policy did not guarantee rebated fees to anyone. Mr. McFadden replied that he had received assurances that rebate funds would be available. Motion approved unanimously. Mr. Waido noted that the item would be on Council's March 17 agenda. Discussion with City Manager The City Manager is supporting of escrowing funds and increasing staff time in support of the program. The onus is now on Staff and the Subcommittee to devise a method to use this program as efficiently as possibly. TRAC The units have not closed, and various entities, including the City, bank, and Housing Authority, are exploring options. Lou Stitzel offered that FNMA had requested an appraisal of the land separate from the units. That appraisal has been done. TRAC is awaiting approval by FNMA so that the units may then close. Some rents are being received from units. In response to questioning, Ms. Stitzel stated that changes had been imposed during this project that were out of the ordinary, causing TRAC to start from scratch at a very late date, resulting in the present problem. TRAC did not receive permission from the City to collect rents until the end of August. Some people were paying back rents, and payments were in limbo, creating a big funding gap. Human Rights Ordinance No comments were heard on this issue. Public Awareness Subcommittee Affordable Housing Board February 5, 1998 Meeting Minutes Page 5 Kay Rios report. The Subcommittee is considering development of a Web page under the City Web page umbrella. This Web page would contain names, addresses, and contacts of people and entities in relation to affordable housing. A banner may be displayed with the Web page information. A Power Point presentation is being prepared for demonstrations at various events. A luncheon will be held, and interested parties, including Board members, builders, and private and public entities, are being invited. A map is being prepared of affordable housing projects in the city. This is to help counter the NIMBY presence, by demonstrating that these projects are more prevalent and less offensive than imagined. Approval of Minutes Moved by Ms. Greer, seconded by Ms. Glass: To approve the minutes. Motion approved unanimously. Uniform Building Code Felix Lee spoke at length on this subject. Matters of note: A required special underlayment under the roof, or ice dam, will no longer be required. Six nails per shingle will be required, as befits a high -wind area. Window wells for escape windows will increase in size. The new code will relax some accessibility requirements on ground -floor units. The new Code will be in agreement with the Fair Housing Act, State codes, and ANSI guidelines. The Board discussed whether to endorse the proposed changes; Board members did not feel qualified to do so. Affordable Housing Monthly Production Report Ms. Watts distributed the report. She asked for comments concerning the format or suggestions regarding additional format. Anticipated completion dates were requested. Small developers will be shown as well as the larger ones. Ms. Watts noted that she tried to distinguish the projects with all affordable units from the projects with a percentage of affordable units as that information became available. Board members complimented Ms. Watts on the presentation and thoroughness of the report. Ms. Watts showed the Board the graphic presentation in the back of the report. Board members requested that projects completed in 1997 be represented as well as those in progress. It was noted that the graph is another demonstration of the availability of 50 percent units and need for units at the lower end of AMI. Affordable Housing Board February 5, 1998 Meeting Minutes Page 6 HUD - Best Practices HUD had offered to tout the rebate program in their Best Practices publication. When it was revealed that the program was carried out through City funds rather than HUD funds, the offer was withdrawn. HOME Mr. Waido distributed a memo authorized by Julie Smith applying for a waiver to purchase price limits. These limits are set by HUD on a county -wide basis; the Fort Collins market is significantly higher than that set by HUD. Action Plan - Housing Study Ms. Watts distributed an action plan for the inception of a study to determine housing supply and demand, where gaps exist, and where efforts and strategies regarding affordable housing need to be focused. She will first focus on sources of existing data and survey the available information. The study includes questions that need to be answered through analysis of appropriate data. First draft of priorities is targeted for April; discussion of priorities is set for May; finalizing for presentation to Council is targeted for June. Mr. Wanner reiterated Council's commitment to the issue and urged, the Board to take the necessary steps to advance this process. The meeting adjourned at 5:40 p.m