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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 09/01/2005CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES 281 N. College Ave. Fort Collins, Colorado September 1, 2005 Kay Rios, Chair Denise Rogers, Vice Chair Ken Waldo, Staff Liaison, 970-221-6753 Kurt Kastein, City Council Liaison, 970-223-0425 Board Members Present: Kay Rios, Denise Rogers, Michelle Jacobs, Kevin Brinkman, Joe Hebert, Jon Fairchild and Peter Tippett. Advance Planning Staff Present: Maurice Head, Ken Waido. Council Members Present: None. Guests: Chris Hodges, President and Chief Manager, Emerald Housing Partners; Brian Dale, Investment Banker, Newman/GMAC; Chuck Seest, Interim Finance Director; Greg Byrne, CPES Executive Director; Darin Atteberry, City Manager; Ginny Sawyer, Neighborhood Administrator, Neighborhood Services. Kay Rios called the meeting to order with a quorum present at 4:05 p.m. There were no comments from the public. New Business Minutes The August 4 minutes were amended to read, on page 3, third paragraph under 3- Unrelated Ordinance, second sentence, as follows: "His first comment dealt with the costs of permits and inspections. Based on Ms. Heffernan's July 7 figures, Jon Fairchild felt the costs were reasonable, working out to about $5 per month per unit, but he felt that the City should try to keep the costs to that level and try to not go higher." Kevin Brinkman moved the minutes be accepted as corrected; Peter Tippett seconded, motion carried unanimously. Oakbrook I Private Activity Bond (PAB) Request Maurice Head introduced Chris Hodges, President and Chief Manager of Emerald Housing Partners, the applicant applying for the Oakbrook I Private Activity Bond. Fort Collins Affordable Housing Board September 1, 2005 Minutes Page 2 of 5 Mr. Hodges appeared before the Board to ask them to consider his request for PAB funding. Oakbrook I is a low-income, 100% project based Section-8 apartment complex for seniors that has gone into foreclosure. Emerald Housing Partners plans to purchase and rehabilitate the property using a combination of private activity bonds and 4% low income tax credits. The lending and investing partners are Newman/GMAC of Denver and Paramount Financial Group, who will purchase the private activity bonds. The property will be evaluated by a third party engineering firm. $700,000 to $800,000 in renovation work is needed, as required by the low income tax credit program, including roof and parking lot repair are needed. Mr. Hodges would also like to replace original appliances and carpeting. In addition, Emerald Housing Partners will gather tenant input and work to improve the property in other areas. Mr. Hodges informed the Board that property renovations and enhancements will not increase rents nor displace tenants, since the property is Section-8 subsidized. Michelle Jacobs asked the applicant to explain the function of private activity bonds. Mr. Hodges responded that the PAB provide cash to acquire the project and perform rehabilitation. Brian Dale, an investment banker with Newman/GMAC, explained that the private activity bonds are a low interest rate funding mechanism. The PAB are revenue bonds, therefore they are secured and supported by operations of the property and the mortgage of the property. The bonds are from federally allocated money, and are not an obligation of the City of Fort Collins. Kay Rios said she believes it is essential that the property be kept affordable for seniors. Mr. Hodges told the Board that the property currently has a very high occupancy rate and a waiting list. He feels that renovation will improve marketability. The property is 1 year into a 5 year HAP renewal. Rents recently have been adjusted down to market, and given the recent renewal and high occupancy of the project, Mr. Hodges is confident the Section-8 subsidization will be renewed, especially if the property is rehabilitated with PAB and low income tax credit funding. Kay Rios asked the Board to provide a recommendation to Council to approve Chris Hodge's request for PAB funding. Jon Fairchild moved to approve the request, Joe Hebert seconded. Motion passed unanimously. Brian Dale informed the Board that September 15 was the date for PAB funding relinquishment for municipalities. Chuck Seest assured the Board that he would work to expedite the process in order to be ready for Council's September 20, 2005 meeting. Budgeting for Outcomes Update Darin Atteberry, City Manager, began with a brief description of the City's motivation for switching to the Budgeting for Outcomes process. For the last two Fort Collins Affordable Housing Board September 1, 2005 Minutes Page 3 of 5 decades, the City's sales and use tax revenues have increased at a rate of 8% to 13% a year, and City spending has matched that. Recently, however, the revenue curve growth has decreased to a rate of 0% to 3%; City spending must decrease at a similar rate. Mr. Atteberry said the City must refocus on economic health given the current funding environment. Budgeting for Outcomes is a tool to evaluate the worth of services and departments. Mr. Atteberry listed proposed funded and cut budget items for various City services. The new budget will include specific service cuts rather than departmental -wide reductions. Affordable housing program funding will be less than the $2.3 million dollar goal recommended in the City Manager's 10 year budget outline. The affordable housing production fund will be cut, but affordable housing program funding and staff support will continue with a $133,000 contribution from development fees. Mr. Atteberry stated that he cannot recommend funding affordable housing given the current budget cuts. Dial -A -Ride will be decreased from its current GMA extent to the minimum area necessary to meet federal ADA requirements. Dial -A -Ride will take a 20% to 25% cut in the proposed budget, which will save the City approximately $175,000. Kay Rios expressed her concern that the people who will suffer the most from the new budget are seniors, the disabled, and fixed and low income citizens. Michelle Jacobs added that youth will suffer as well. Mr. Atteberry disagreed that youth will be affected negatively. He did, however, agree with Ms. Rios that the groups she listed will be affected negatively. In addition, Council has asked the City Manager's Office for a report on the effectiveness and efficiency of Boards and Commissions. Council would like to study the amount of staff time involved, and whether existing boards with overlapping agendas should be merged. Mr. Atteberry said the City strongly believes in the role of Boards and Commissions, but that more citizen involvement may be necessary to minimize City costs. The draft budget must be delivered to the City Clerk by the first Monday in September. The City Manager's Office delivers a recommended budget to Council, who has the authority to pull unfunded offers above the funding line and rearrange the order of funding priorities. Citizen participation is possible September 1 through November 15. Boards and Commisions can help facilitate public involvement by writing letters and attending Council work sessions. The final reading is on November 15. The approved budget will take effect January 1, 2006. Kay Rios stated that the Board should download the online draft budget after September 5, and find areas they believe are being under prioritized by the City. Kay Rios asked staff to include Budgeting for Outcomes to the October agenda. The Board will make a memo to Council regarding their position at that time. 3-Unrelated Ordinance Update Fort Collins Affordable Housing Board September 1, 2005 Minutes Page 4 of 5 Ginny Sawyer from the Neighborhood Quality of Life Task Force gave an update on the 3-Unrelated Ordinance. The August 23 Council work session proposed a new definition of family that will separate occupancy from the definition of family so that the City will not have to prove relatedness. On October 18, the task force will go back to Council and P&Z Board for Land Use Code changes. Agenda Item Summary gives the new language for the occupancy limit change - a single family home would house three adults and their dependants, or a single family and one caretaker. The provision in home occupation for two boarders is being removed as well, so that single family homes cannot have a loophole for more than four unrelated adults. The task force will provide Council with two options - A and B. Both options Change violation from a criminal to a civil offense. Option A limits occupancy to three unrelated adults. Option B includes a citywide permit for up to four adults, with requirements for parking, safety certifications, and a 3 year permit fee. Ms. Sawyer stated the current fee estimate is on the range of $225 to $240, in order to keep the system self sustaining. Ms. Sawyer also noted that not defining family based on occupancy has appeased many critics of the ordinance. Kay Rios asked that staff add the 3-Unrelated Ordinance to the October agenda. Ms. Sawyer agreed to send the draft ordinance to the Board. The Board will make a recommendation memo to Council at their October meeting. Old Business Update/Reports on Sub -Committee Efforts None. Liaison Reports None. Other Business Open Board Discussion Kay Rios informed everyone of a Red Cross Benefit at the Sunset Event Center Saturday, September 3 to benefit Hurricane Katrina victims. Kay Rios introduced Marilyn Heller, League of Woman Voters, organizer of the Affordable Housing bus tour. Ms. Heller said the tour still has open spaces and invited the Board to attend. The tour is September 23, at 8 AM, beginning at the mission and visiting various affordable housing projects in Fort Collins. Fort Collins Affordable Housing Board September 1, 2005 Minutes Page 5 of 5 The Board scheduled the Fall competitive process rankings meeting for Thursday, September 15 at 5 p.m. Staff will notify Board by email and mail packets to absent members. Meeting adjourned 5:57 pm. Respectfully submitted by Stephanie Sydorko September 20, 2005