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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 12/07/19950 AFFORDABLE HOUSING BOARD MEETING MINUTES December T, 1995 The meeting of the Affordable Housing Board began at 4:00 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. Board members present were Chairperson Mary Cosgrove, Tom Sibbald, Tony Kavanagh, Sue Wagner, and Bob Browning. Staff members present were Ken Waido, Dickson Robin, and Joe Frank. Betty Maloney, from the Affordable Housing Task Force of Larimer County, addressed the Board stating that the Task Force would be holding their annual meeting on the 14th of December and invited all Board members to attend the meeting. Meeting topics would include an update on the CDC presented by Gena Janett. Ms. Maloney also stated that the Task Force's education committee had met on the 6th of December and was developing a new slide presentation for the general public with an attempt to incorporate the Pioneer Mobile Home issue. Ms. Maloney stated that the Task Ford committee was ready to coordinate with the Board concerning education efforts. Mr. Robin stated that the Board's subcommittee was not yet ready to meet with the Task Force committee and would perhaps be ready in January or February. He stated: An ongoing program for public involvement with affordable housing was being assembled; and when the subcommittee was ready to go out into the area and take pictures, that would be an opportune time for the two committees to meet. Mr. Sibbald noted an addition that need to be made to the November 2nd meeting minutes. At that meeting during the Model Energy Code discussions, Mr. Kavanagh pointed out that mortgage lenders no longer considered energy conservation measures and hadn't utilized energy scores for some time. Mr. Kavanagh stated that energy score essentially means nothing in terms of increased housing affordability. Mr. Sibbald stated that Staff had cited an example that energy code confirmation would increase the mortgage availability from 100,000 to 108,000. Mr. Kavanagh stated that theoretically three basis points are given in the ratio, but such is already being pushed on paper. There is a credit, but in reality, it doesn't exist. No motion was made for approval of the November 2nd minutes. The determination was made that a motion would be postponed until the noted omission could be adequately noted in this month's minutes. Ms..Cosgrove asked for input from the Board concerning overall Board direction in the future and direction in terms of agendas and overall Board direction. She noted that some expression of concern had been heard in terms of the work plan and in terms of communication between the Board and Council. llAffordable Housing Bo • December 7, 1995 Page 2 Mr. Kavanagh expressed his frustration with the feeling of a lack of accomplishment resulting from the Board meetings. Mr. Kavanagh stated that when he interviewed with the Council to become a member of the Board, his goal was to be able to present some outreach and education to the community in terms of assisting individuals in breaking the cycle of renting. Mr. Waido stated that the City had been funnelling CDBG funds to Neighbor to Neighbor for a housing counseling program, part of which addresses educating people on budgeting, maintaining, etcetera. Mr. Kavanagh stated that such counseling efforts were insufficient. He believes the City or a true nonprofit company needs to extend such an outreach program. He pointed out that the banking and real estate communities are providing education programs but feels people attend such programs with a fear of being forced into something or that options presented must take place through the company presenting the education program. Mr. Sibbald stated that no demonstrative measure of results were available to illustrate the effectiveness of the Neighbor to Neighbor counseling. Mr. Sibbald also stated that no meaningful measures of housing efforts exist outside of CDBG, the private sector, or nonprofit efforts. Mr. Sibbald added that such an issue exists in the 1996-1997 work plan, but it is not tied into the affordable housing information survey. Mr. Browning stated that in the two years the Board has been in existence, not one house has been stimulated, and the units that were stimulated would have come into existence regardless. Mr. Browning said that in all of his experience in both the military and private sectors, he could never remember a more consistent waste of time than this Board has been. He also expressed his frustration with being stymied by either Staff or Council every time the Board has attempted to make progress and stated that the recommendations made by the Board are completely discounted by Council. Mr. Browning additionally stated that the only reason he has not resigned from his position as Board member is due to his belief that quitting is a very distasteful action. Mr. Sibbald agreed with Mr. Browning's comments and stated that he would be terminating his position as a Board member upon completion of his term in June. Mr. Sibbald additionally voiced his frustration with the lack of attendance of Board members to the monthly meetings. Ms. Wagner stated that she had never seen the master plan of agenda that had once been outlined. Ms. Cosgrove stated that the plan goes back to Task Force days, before the Board was formally constructed, and said that some items have moved forward over the course of the last two years and some have received very little attention. She also stated that the plan is an item that the Board has requested from Staff. Affordable Housing A • December 7, 1995 Page 3 Mr. Sibbald stated that projects such as the CDC and the rebate programs are merely subsidy efforts and doesn't feel subsidy is a solution to affordable housing problems. Mr. Browning pointed out that $6,000 worth of cost increases had been added on by Council in their most recent meeting. Mr. Sibbald said that all Council has been prepared to do thus far is allow for subsidies and feels costs should be addressed through the development standards and regulations. Mr. Frank stated that he felt the Board's upcoming work program was ambitious and pointed out that Council has devoted new resource to the affordable housing program. He also stated that the integration of housing throughout the community will arise in development of the city plan and feels incentives for production of housing units will need to be developed. Mr. Frank feels the input of the Board would be very valuable in that regard. Mr. Sibbald stated that such is merely more subsidy. Mr. Sibbald pointed out that since the Board's inception, the cost of housing has risen up approximately $100 per month within the city limits just from new park land fees, development review fees, and the Model Energy Code 1991. Mr. Browning stated that impact fees had increased in the area of $2,300 to $2,400. Mr. Sibbald added that he could think of $2,600 of actual out-of-pocket increases. Staff replied that it was important for Council to hear such concerns from the Board. Ms. Cosgrove suggested requesting a study session with the Council. She also suggested possibly writing a letter to the Council concerning these issues. Ms. Wagner asked if the Board had ever had a study session with Council previously. Mr. Waido stated that he couldn't recall the Board, per se, having one. However, task force members previous to the creation of the Board had met with Council. Ms. Wagner expressed her belief that a study session would enable face-to-face communication concerning Council's expectations of the Board. Ms. Cosgrove stated that she felt it would be a good idea to request a session with Council. Ms. Wagner said that she feels the spectrum of what the Board is to cover is so broad that perhaps narrowing down what Council would like to see accomplished would be beneficial. Mr. Frank stated that the CDC may be able to stimulate the production of more housing due to money leverage possibilities that will exist for the program. Mr. Browning replied that stimulation of the program would come about if the City were to reduce their impact fees, and the fees needed to be reduced at the beginning of a proposed project, not upon completion. Mr. Sibbald pointed out that Council has once again changed the phasing program. He stated that the first time the phasing program was changed, within 90 days of the first phasing plan that went into effect, a rise from 15 to 20 percent in land costs occurred within the confines of the phasing plan, a cost increase which will not be lowered in the future. Mr. Sibbald reiterated his point from previous meetings that the average new home in Fort Collins through September 1995 cost $178,000. The average new home in I INAffordable Housing Bo • December 7, 1995 Page 4 Greeley through September of 1995 cost $126,000. A $30,000 difference existed between Fort Collins and Loveland through September of 1995. In addition, a lot can be purchased in Greeley for approximately $15,000 to $18,000. Mr. Sibbald said that building material costs are the same in Greeley, Loveland, and Fort Collins, and the difference in housing price is a result of the development standards and the high land costs in Fort Collins. This price difference will result in builders going to the Greeley and Loveland areas to build their homes. Mr. Frank stated that these facts were important information. However, a study needs to be performed to determine what factors contribute to such differences. He feels one of the items that the housing index study must address is the substantiation of such differences. He believes Council is hearing such facts but is asking for additional information. Mr. Sibbald stated that the information results from valuation of trust deeds. Mr. Sibbald stated that median incomes for the years 1993 and 1994 are flat and the same will probably occur in 1995 due to the fact the local economy is attracting much greater numbers of low -paying jobs than had been attracted previously. He pointed out that no economic development effort has taken place in the City for some period of time because it is not City policy. He also believes that one of the best economic efforts the City has is the trends statistics and would like a current copy of such. He noted that the Board has never talked about economic development and believes it is a discussion that should be held. Staff stated that such an discussion would be put on the agenda. Mr. Waido gave a short Staff presentation. He stated that the Planning and Zoning Board will be meeting on December 8th in a work session format and will be discussing a clause for planning. Staff does not feel such is a good idea and is putting together some options. Mr. Waido also announced to the Board that he had received a letter from John Pollack from the State Division of Housing stating that they wished to hold a press conference On December 13th in Fort Collins to talk about a market study for the community. Mr. Waido was asked in the letter for a suggested location for the conference and a mailing list. Mr. Waido addressed two items concerning the rebate program; 1) On December 19th he will be sending the item to Council to add the column for 30 percent AMI rebating up to $4,200 for the homeownership; 2) Four criteria have been developed for Council's consideration regarding establishing guidelines for rebates outside of the city limits, those being: - Project must be located within the UGA. - Project must have either City water or City sewer utilities so some fees would be required regardless. - Project conforms to the phasing criteria of the City which are in effect at that time. - Project rebate is proportionally based on what is actually paid to the City versus what would have been paid. Mr. Browning asked, within the UGA, where City water or sewer would not be utilized. Mr. Waido replied that water and sewer is not provided south of Harmony Road, in the northwest area, and in portions of the northeast area. Affordable Housing Boo • December 7, 1995 Page 5 Mr. Sibbald questioned the importance of the issue of providing water and sewer. Mr. Waido replied such are the only collections made outside of the city limits. Ms. Cosgrove questioned if the phasing element would perhaps eliminate all projects, and if so, perhaps Staff time would be better spent elsewhere. Mr. Waido stated that the proposal is in draft form and would not require a lot of additional Staff time. Mr. Robin stated that no significant developments have yet occurred concerning the Pioneer Mobile Home Park. Don Parsons is continuing to work with local nonprofit entities in terms of putting the Dry Creek project together. Mr. Parsons, TRAC, and Neighbor to Neighbor have submitted a joint application for the allocated CDBG monies. Mr. Sibbald pointed out that financing of old -model mobile homes could be an obstacle for Mr. Parsons due to the fact that banks will not usually finance older mobile homes. Ms. Wagner told the Board that nine local banking institutions recently attended a meeting concerning the CDC. At the meeting the general consensus was an acknowledgment and a willingness of the banks to participate in the program. Questions exist concerning the administrative costs of having a CDC. The institutions feel this is an opportune time to bring to the City's attention issue concerning affordable housing. It was also believed that a need exists to help generate better -paying jobs rather than continuing to generate low -paying jobs. Ms. Cosgrove stated that she may be giving each Board member a sheet requesting the top five items that each member would like to see the Board or the City work on in the realm of affordable housing in an effort to get a feedback from the Board. Ms. Wagner moved adjournment, seconded by Mr. Browning. Upon unanimous vote, the meeting adjourned at 5:10 p.m.