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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 12/14/19950 • CDBG COMMISSION MEETING -MINUTES December 14, 1995 The meeting of the CDBG Commission began at 6:25 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. Commission members present at the meeting included Chairman Dan MacArthur, Bill Bertschy, Linda Coxen, Bobbie Guye, Tom Hartmann, Holly Sample, and William Steffes. Staff members present included Ken Waido, Jackie Davis, Dickson Robin, Julie Smith, and Mary Hile. Moved by Ms. Coxen, seconded by Mr. Steffes: To approve the minutes of November 9, 1995. Motion approved unanimously. Mr. Waido noted that the upcoming work session would be on January 9, 1996. He reviewed the following issues to be discussed with Council; two sets of applications, one for housing proposals and the other for non -housing proposals; selection criteria; continuation of processes used by CDBG and HOME; whether CDBG funds should be prioritized for affordable housing; and percentage of CDBG funds to be used for administration. Mr. Waido stated that the work session would begin at 6:15 p.m. and urged maximum attendance. The Habitat for Humanity dedication was announced for the following Saturday. Mr. Waido reviewed the upcoming January meeting and the public hearing for community development needs, which will entail the consolidated plan, the HOME program, and any other Federal funding to be received. Discussion was held regarding scheduling. Moved by Ms. Coxen: To consolidate the January meetings to January 9, 1996. Motion died for lack of a second. Discussion moved to the letter from ETS. Moved by Ms. Sample, seconded by Ms. Coxen: To support the ETS letter. Discussion was held concerning the status of transportation services. Motion approved unanimously. CDBG originally paid for some transportation equipment. Ms. Davis will inquire of Ron Phillips or Tom Frazier as to the status of the equipment. Staff reviewed the following elements of the Pioneer situation: • Neighbor to Neighbor is counseling residents on alternative housing. • TRAC, Neighbor to Neighbor, and Mr. Parsons are exploring a joint development of the Dry Creek property. • A local church group raised $50,000 at a fund-raiser to assist with relocation. • HOME funds are helping three families with home ownership. • HUD is working with agencies to relocate Pioneer families. CDBG Commission Minutes December 14, 1995 Page 2 • The six-month notice to vacate will be given around March. • The Dawson group is proceeding with redevelopment plans for the Pioneer property. The process will take nine months to a year. APPLICATIONS IN RESPONSE TO THE PIONEER RFP Applicant: Fort Collins Housing Authority. Shelley Stephens reviewed the previous presentation and noted that a revised budget had been submitted. The community building will not be built initially and could be a target for private and public fundraising efforts. Surrounding neighborhoods see a need for a community center. Ms. Stephens reviewed the new write -down figure, unit price, and the possibility of rebates. She requested that if funding is made available for less than request, that it be made for a specific number of units rather than spread through the 33-unit project. Handicapped -accessible units would cost an additional three percent. Those units would still be available for a family of four with less than 50 percent median income. The PUD process has been started with the project, and with the Pioneer need, the first units should be completed by July or August. In regard to HOME funding, the Housing Authority is exploring leases with option to buy. The price cap for local banks on first-time home ownership has been raised from 85,000 to 92,000. There will soon be nothing available in the under- $100,000 range. Ms. Stephens suggested a window of eligibility for Pioneer residents of 30 to 90 days, with the project then opened to 80 percent median income families. In response to questions by Commission members, Ms. Stephens stated: HOME funds will not be available until October. The lease with option to buy would help in obtaining HOME funds at that time. The project is not affected by the Authority's waiting list. In response to further questions by the Commission, Ms. Julie Smith stated that $90,000 of existing HOME funds could be reallocated to the home ownership program. Applicant: Neighbor to Neighbor, Inc. Rusty Collins noted that the amount applied for had been changed from $165,000 to $200,000. He called upon Don Parsons for further explanation. Mr. Parsons, developer of the Dry Creek annexation, noted that many Pioneer CDBG Commission M•tes • December 14, 1995 Page 3 units are not movable to other locations. Since financing is not yet arranged, the funds would be best used in developing or purchasing new homes. Mr. Collins noted the problems and costs involved in moving the units to other properties. His proposal would increase the per -family grants to $1250 and use $85,000 to fund the costs of moving mobile units. He delineated the various agencies in the application and noted the diverse nature of the sources of funding. Beth Music stated that she had counseled 75 to 80 families, either in her office or over the phone. Many residents, particularly the elderly or disabled, are on fixed income and require help to move and repair their trailers so that they will not add to the subsidized housing burden in Fort Collins. Many residents have credit issues which complicate the home ownership potential. She has helped ten families move; of that number, five have moved their units to other parks, one has moved out of town, and the others are in rental situations. In response to questions by the Commission, the Neighbor to Neighbor staff stated: Approximately 77 percent of residents are 60 percent or less of area median income. Due to the cost of mortgages, perhaps 20 percent of the families are looking at home ownership. Approximately 138 out of 170 units can be moved. Many residents will be selling their units for less than their remaining mortgage, so the resulting debt will further complicate their ownership potential. Neighbor to Neighbor has demographics on the Pioneer residents who have sought counseling. They will attempt to get a wider survey of the community on a variety of income and credit issues. Survey attempts to this point have met with limited success. Ownership is a possibility that is being explored within the new development. It is hoped that the development will be in the ground by the time relocation takes place. Applicant: The Resource Assistance Center for Nonprofits, Inc. Ms. Stitzel announced that TRAC's bid regarding townhouses at the SID site had been approved by Council and that the HOME application will be submitted shortly. Financing is coming to resolution. She shared anecdotal information regarding the townhouse development. TRAC is working with the Dry Creek project and Neighbor to Neighbor to achieve permanently affordable housing. Rather than using the second CDBG award of $50,000 for development fees, TRAC plans to place it in acquisition. In response to questions by the Commission, Ms. Stitzel stated: Agreements still need to be worked out, and the Commission will be updated as events unfold. The 11 units will be occupied in August. She detailed the grant moneys that would go to land acquisition, CHODO, administration, and supplies. One in ten units will be handicapped -accessible. The PUD will be accomplished through a combined preliminary and final. CDBG Commission Minutes December 14, 1995 Page 4 TRAC is presently considering ownership of 35 acres of the Dry Creek property. The percentage of property ownership is unknown until the flood plain area is resolved. $35,000 of the award will be used for acquisition, closing, and architectural and other fees. $35,000 will be used for gap financing to obtain the property. If Fort Collins HOME funds are not available, TRAC would apply for State HOME funds. Ms. Stitzel detailed the purposes of the land trust concept. The entire neighborhood participates in the success of the community unit. Action by the Commission. Moved by Mr. Steffes, seconded by Ms. Sample: To defer discussion of TRAC funding for $50,000 to the January meeting. Discussion was held concerning the lack of a detailed agreement. Motion carried 5-1. Moved by Ms. Coxen, seconded by Mr. Steffes: To approve $200,000 for Neighbor to Neighbor and $35,000 for TRAC. Moved by Mr. Bertschy, seconded by Mr. Hartmann: To amend the motion to split discussion and consideration of the two items. Discussion centered on whether the result of the two applications was a joint proposal. Motion to amend carried, 4-2. Moved by Mr. Steffes, seconded by Ms. Coxen: To amend the motion to consider the TRAC application first. Motion to amend carried unanimously. Discussion was held on the benefits of promoting home ownership; that the $35,000 in the TRAC application was a viable use of those funds; whether approval of the motion would preclude consideration of another application; whether a different combination of allocations would better address the problem; the viability of the TRAC project being finished by the target date; and the use of the 1995 CDBG allocation for other purposes. Further discussion was held on parliamentary protocol. Motion failed, 2-3. Mr. Bertschy expressed concern regarding his perception of a rushed feeling to the proceedings. Discussion was held concerning the presentations at the November meeting and the schedule to be followed in resolving the issue. Further discussion was held regarding selection criteria. A potential motion for discussion was deliberated. Moved by Ms. Sample, seconded by Mr. Hartmann: To fund Fort Collins Housing Authority $150,000 for approximately 20 units; and to fund Neighbor to Neighbor $85,000 to refurbish and relocate mobile homes. Discussion was held regarding: the need to refurbish mobile homes for moving; the ability of TRAC to complete its project without the $35,000 allocation; whether Pioneer residents would use the TRAC project; whether funding the Housing Authority for more units would be a better use of money; that the Housing Authority project cannot address the 150 at -risk families at Pioneer; the potential of TRAC being allocated money in the new funding cycle; the ability of TRAC to help the lower -income segment of the 0 CDBG Commission Minutes December 14, 1995 Page 5 population; other funding sources possible available to $85,000 to refurbish the units needed to be moved; th money for refurbishing and moving units. Motion carried, The meeting adjourned at 8:50 p.m. e TRAC; the ability of the availability of matching 5-2.