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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 06/08/1995• • C �/ C /&- r /,_ V CDBG COMMISSION MEETING MINUTES June 8, 1995 The meeting of the CDBG Commission began at 6:30 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. Commission members present at the meeting included Chairman Linda Coxen, Bill Bertschy, Jim Elias, Bobbie Guye, Dan MacArthur, Tim Ostic, William Steffes, and Joe Zimlich. Staff members present included Ken Waldo, Jackie Davis, Dickson Robin, Julie Smith, and Mary Hile. Approval of minutes was tabled pending a quorum. Ms. Coxen expressed gratitude to staff for their assistance over the past year and suggested that Commission members treat staff to a dinner. Following discussion, it was decided that Commission members and staff would meet at Jefferson Grill, on July 13, at 5:00 p.m., with the regular public meeting to follow at 6:30 p.m. Mr. Robin presented the draft of the consolidated plan. The public comment time of 30 days begins this day and will run to July 8. Mr. Robin solicited comments from the public, either at the present hearing or to be submitted later to him or Ms. Davis. The minutes of Mr. Robin's presentation will be included in the appendices section of the consolidated plan. Mr. Robin made the following comments: The consolidated plan was drafted per requirement of HUD to identify community development and housing opportunities or needs in Fort Collins, and how those needs may be met through the HOME and CDBG programs. The consolidated plan as adopted will supersede the previous CHAS document as the City's primary community development/affordable housing plan. Funding from CDBG and HOME will be based on the priorities of the consolidated plan. Collaboration and information exchange among various nonprofit organizations, for -profit entities, private organizations, City agencies, and other public organizations played essential roles in the drafting of the plan. Mr. Robin outlined the three sections of the consolidated plan: Section 1, assessment of affordable housing and community development needs in Fort Collins; Section 2, formulating a five-year strategic plan to prioritize and address the needs set forth in Section 1; and Section 3, setting forth a one-year action plan identifying specific projects to be undertaken for funding in the upcoming year. CDBG Commission Minut a June 8, 1995 Page 2 In Section 1, Mr. Robin outlined the following elements that were reviewed: Housing market conditions; housing needs; needs of the homeless; facilities for the homeless; and community development needs. Mr. Robin outlined the trends and needs identified in response to current and future demand: Additional affordable rental/homeowner housing; to facilitate low- and moderate -income households in achieving home ownership; expansion of services for, and prevention of, homelessness; additional transition housing; increase in public housing for very -low- income and special needs people; employment training and assistance for the special needs population. Regarding Section 2, Mr. Robin related the following priorities in addressing the issues, over five years, that were identified in Section 1: Stimulating housing production for low- and moderate -income households, using Federal, State, and local funding; increasing home ownership opportunities for low- and moderate -income housing; providing services for, and assisting in the prevention of, homelessness; provision of transitional housing to break the cycle of homelessness; increasing the housing supply for the special needs population. Mr. Robin stated that the priorities identified in the five-year plan are not absolute for its duration. The City will probably revisit priorities on an annual basis and may seek to update the document whether or not it will be a HUD requirement to do so. Implementation and funding for all priorities will come from CDBG and HOME. Regarding Section 3, Mr. Robin noted that the section described specific activities to take place in the coming year; those activities will be facilitated through CDBG and HOME; and there may be opportunities for funding from other sources. In illustration of upcoming activities, Mr. Robin highlighted: the Housing Authority acquisition of an existing 24-unit complex; land purchase for construction of a four -unit housing complex; 48-unit CARE project; the 116- unit Kaufman & Broad project. Mr. Robin reiterated the City's responsibility for monitoring implementation of the consolidated plan and the requisite CDBG and HOME funding. He invited comments and questions on the plan. In response to questioning by Commission members, staff informed the Commission that the HOME program may provide loans as well as grants. Loan proceeds may then be reprogrammed. Kaufman & Broad set up their proposal as a loan with 3 percent interest. Grants may be made when a project's margins are so tight that the project would not otherwise proceed. CDBG Commission houtes • June 8, 1995 Page 3 In response to further questions, Mr. Robin stated that HUD has an emphasis to address homelessness through services and transitional housing as well as shelters. A consolidated plan table identifies the number of homeless people in Fort Collins, and that number has increased from the previous CHAS documents. As recommended by Mr. Steffes, the final document will show the actual constitutional article rather than "Amendment 1." Future CDBG and HOME recommendations will refer to the five-year strategic plan and one-year action plan for defining the Commission's priorities. The "community development" guideline is fairly general in its application. The final version of the consolidated plan will allow applicants to know whether their project is in conformance with the priorities addressed in the plan. The listing for transitional services in the consolidated plan is by example; new programs are not excluded. Mr. Robin will address rewording of the paragraph. The reinvention blueprint for HUD is problematic at the moment, and the consolidated plan can be used for housing fund expenditures within other HUD configurations. Crossroads and other changes decided by Council will be added to the document. Discussion was held concerning the adjustment of administration fees from CDBG funds to general funds. The following public comment was heard: Shelley Stephens thanked Mr. Robin for his efforts. She noted how helpful the tables would be as a reference when the Housing Authority seeks funding and how its requests are in accordance with the community's stated needs. She further emphasized the importance of the consolidated plan to define community goals. She stated that the Housing Authority is acquiring a building to create a full -continuum service facility for homeless people. Betty Maloney from the Larimer County Affordable Housing Task Force commented upon the manner in which the CHAS and consolidated plan documents have made statistics and information available for agencies in the community. The provision of this data has aided the local agencies considerably in their efforts. Ms. Maloney advocated the study of building mobile homes to help meet the demand within that section of the affordable housing spectrum. Lou Stitzel added her compliments to the report and commented that the report reflects the degree of collaboration within the community of the nonprofits, for -profits, and governmental agencies. She noted that the concept of, land trusts has generated queries in many Western states, as far away as Alaska and Hawaii. Other land trusts are being developed in Colorado, and the Institute for Community Economics will conduct land - trust training using HUD funding. CDBG Commission Minutce June 8, 1995 Page 4 Ms. Stitzel further stated that due to community cooperation, Fort Collins has become an excellent community to develop quality demonstration projects to attract its share of interest and funding. She stated that the affordable housing concepts are for more than five years at a time, but looking toward paradigm shifts; that the private sector cannot meet all the shelter needs of the community; and that should shelter needs go unmet, a Middle Ages phenomenon will occur where only the rich own the land. Mr. Dickson asked the Commission to place endorsement of the consolidated plan on its July agenda. Revisions will be made to the plan over the next 30 days as comments and suggestions are received. Mr. Waido advised the Board on the issue of city residency for CDBG recipients. The issue was generated by a Habitat for Humanity house built for a family currently working and living in Greeley. CDBG funds are used to address Fort Collins housing problems. As views were voiced on the issue, questions developed of: defining a resident; and whether to require programs to deal only with residents. Neither the City Charter nor HUD regulations address the issue. Since sending the memo to the Commission, staff has developed potential options to determine residency: through drivers licenses; voter registration, with physical address; and other options outlined in the memo. Mr. Waido suggested an approach by the Commission that would: 1) define how programs are targeted toward residents; and 2) define how to identify residents. Resulting discussion encompassed: general proofs for residency; the lack of a City standard for residency; residents in the Urban Growth Area; lack of City bidding preferences to local entities; the circumstances through a donor church by which the Greeley family came to acquire the Habitat home versus circumstances such as the Housing Authority waiting list; the feasibility of exempting certain program, such as the mission, from residency requirements. Moved by Mr. MacArthur, seconded by Mr. Ostic: To find it appropriate to develop a residency requirement for projects receiving CDBG funding. Moved by Mr. Ostic, seconded by Mr. Elias: To amend the motion that any organization providing services to the homeless be exempt from residency requirements. Discussion was held on focusing services, including homeless, on Fort Collins residents; whether such an approach was practical and/or enforceable; whether such a policy could be established without having enforcement; and other special circumstances such as Crossroads and the Food Distribution Center. Motion to amend failed, 3-3. Discussion was held on the appropriateness of adopting a residence policy; scoring applicants on the number of city residents served in the prior year; CDBG Commission Mif'futes • June 8, 1995 Page 5 whether homeless programs are appropriate for inclusion in a residence policy; the applicability of HOME funds to the motion. In response to a question from the Commission, Ms. Stephens stated that the Housing Authority considers Fort Collins people first, but that the discussion was important to the Housing Authority due to the homeless program that would be initiated. Residency is established through any available criteria. The possible existence of an unwritten CDBG residency policy was discussed; and, if applicants do not know of and do not make reference to such policy, whether the Commission can properly decide that compliance is being met. Ms. Davis stated that if a residence policy was formed, Habitat would have to pay the Commission back the development fees that have been provided. Motion passed unanimously. Discussion was held on formulation of a residence policy and its potential applicability to the UGA. Mr. Waido informed the Commission that Laporte was not within the UGA. Other close -lying areas not within the UGA were discussed. The possibility was broached of placing residential policy in the applicant's selection criteria. The potential problem was raised of funding a multi -unit project that nonresidents would ultimately move into. Mr. Waido suggested that: Staff had received direction from the Commission that a policy be in place; staff could now consult with legal staff concerning definitions of residency; similar situations could be researched in other communities; and after research, the staff would proffer recommendations to the Commission. Commission members expressed concern that: the administrative burden of projects not be increased; whether the scope of the problem merited a great deal of attention; how compliance could be effected. Ms. Smith advised the Commission of the Affordable Housing Board concern that the home buyer assistance program, with a $5,000, presently requires Commission approval; that staff should be allowed to process these small applications pursuant to the applicant meeting Federal requirements. In response to Commission questions, staff stated: Income eligibility for the program is 80 percent of median, pursuant to Section 8 guidelines; a resolution is needed to amend the March resolution that set forth the current procedure; $50,000 per year is presently earmarked for the program. Moved by Mr. Steffes, seconded by Mr. Zimlich: That staff be authorized to approve up to ten HOME applicants per year, for a total of $50,000, for the closing costs assistance; that applications beyond the $50,000 need to be reviewed by the Commission. In discussion, it was noted that the time to approve under the present system may well disrupt the closing schedule. Motion approved unanimously. CDBG Commission Minutes June 8, 1995 Page 6 Regarding the Pioneer set -aside fund, Mr. Waido informed the Commission that the money was not presently earmarked for a particular use or entity; the funds would not be available until October; the funds will have to be used for a CDBG- eligible activity that addresses the Pioneer relocation effort. The Commission discussed the April 26th public meeting. Attendees felt the meeting was generally positive. Mr. Waido set forth efforts staff has made regarding Pioneer, including networking with property owners and developers and developing the survey presently in use. At this late date, a mobile home park could probably not be developed by spring. The Housing Authority will give the Pioneer people priority in providing alternative housing. Any new development could be delayed by opposition, unless the property were zoned MM, medium density mobile home, and developed as a use -by -right. No properties presently have that zoning. Mr. Donaldson is willing to participate in development but not to take the lead in a PUD process. In support of the Pioneer effort, CDBG funds could be used for certain planning aspects. Mr. Waido outlined the ways an RFP process could be approved. Council's direction has been to have private enterprise as the moving entity rather than the Planning Department. It was noted that even if housing is found for Pioneer residents, the move will exacerbate the housing problem for other city residents. In response to comments by the Commission, Mr. Waido noted that the homeowners in the park would prefer to keep their units and have an opportunity to own land for their units; that perhaps such land could be purchased as a community of Pioneer residents; that some units are not able to be moved from the park; that another option would be for RFQs, Requests For Qualifications, in which applicants would set forth their ability to perform the work required. Mr. Waido set forth the advertisement policies for such a procedure. The Commission reiterated that $235,000 would fall short of the total funds needed to move the Pioneer residents. Mr. Waido informed the Commission of the memo sent to City Council suggesting that time has run out to exercise any timely viable options. Mr. Waido briefed the Commission on the Council actions with the Donaldson PUD application. Ms. Guye noted that a quorum existed to approve the minutes. Moved by Mr. Ostic, seconded by Ms. Guye: To approve the minutes of May 3, May 4, and May 10, 1995. Motion approved unanimously. Ms. Coxen noted the HUD letter regarding conflicts of interest. Mr. Waido advised the Commission of the upcoming meeting with HUD on June 22 to discuss this issue. He informed the Commission regarding the concerns expressed by Affordable Housing and that staff would ultimately be required to enforce the HUD policy. He noted the difficulties of a past situation in which Lou Stitzel was both a CDBG Commission Mintes June 8, 1995 Page 7 Commission member and an applicant. He briefed the Commission on the potential sanctions by HUD. The possibility of a future work session with Council was discussed. November seems to be a propitious time. The message from Council to work more closely with the Affordable Housing Board was noted. A joint meeting will be proposed. Mr. MacArthur was requested to be liaison to the Affordable Housing Board. The resignation letter submitted by Mr. Byington was perused and potential future members discussed. The vagaries of end -of -term dates, reappointment dates, and achieving a quorum were discussed. Mr. MacArthur moved adjournment, seconded by Ms. Guye. Upon a unanimous vote, the meeting adjourned at 8:35 p.m.