HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 04/13/1995C , �� t- f«-V
CDBG COMMISSION
MEETING MINUTES
April 13, 1995
The meeting of the CDBG Commission began at 6:35 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, Rick Ramirez,
Holly Sample, William Steffes, and Joe Zimlich. Staff members present included
Ken Waido, Jackie Davis, and Mary Hile. Dan MacArthur chaired the initial
proceedings in the absence of Ms. Coxen.
Moved by Mr. Steffes, seconded by Mr. Ostic: To approve the minutes of the
March 13, 1995 meeting. Motion approved unanimously.
Mr. Waido advised the Commission on the status of the Education and Life
Training Center request for a change of scope of work, from a two-story to one-
story building, due to lack of funding. Staff does not have authority to authorize
such a change. Discussion was held on the building function and timeliness of the
vote for funding purposes.
Moved by Mr. Steffes: To request from Education and Life Training Center a plan
to detail the variance involved in the proposed change of scope of work and, if
necessary, appear before the Commission at the next scheduled meeting. In
discussion, it was noted that the Center has been waiting three months for
Commission action on the request. Motion died for lack of a second.
Moved by Ms. Sample, seconded by Mr. Bertschy: To empower staff to
ensure the feasibility of the request and, if feasible, to approve the request.
Motion approved unanimously.
Discussion was held concerning Agenda Item 4, Architectural Barrier Removal
Program, and the change of scope therein. It was noted that no funds have yet
been spent for this program. Moved by Mr. Steffes, seconded by Mr. Zimlich:
To approve the requested change of scope. Motion approved unanimously.
Ms. Davis introduced Jim Colbum, a real estate appraiser, who was an applicant
to serve on the Commission.
Ms. Davis informed the Commission that the only update on the FY1994 CDBG
Program was that CARE had a contract on property close to Rocky Mountain
High School. The contract price is $209,000; the funding from CDBG was for
$225,000.
CDBG Commission Minutes
April 13, 1995
Page 2
Discussion was held concerning the TRAC tour, the good attendance, and
graciousness of the residents. Discussion was held concerning public recognition
of Lou Stitzel.
Mr. Waido advised the Board on potential changes for HUD currently afloat in
Congress. A 25 percent local matching grant may be a requirement for future
CDBG funds. Mr. Waido recommended that Commission members contact their
legislators. Discussion was held whether HOME money or affordable housing
money could be used for matching grants. It was noted that CDBG's mission was
not limited to affordable housing issues.
The FY1995 CDBG proposals were passed out to all CDBG members. The
following issues were noted:
Boys and Girls Club withdrew their proposal.
The Mercy Housing Project is located in the county and will need an
annexation petition submitted by the May 3 CDBG Commission
meeting in order to be considered. Annexation procedures were
discussed. An allocation can be approved based on the condition of
successful annexation.
Neighbor -to -Neighbor is not site -specific in its proposal.
Housing Authority is specific in its proposal. The proposed property
is adjacent to the CARE Swallow property. Shelley Stevens has also
requested that a set -aside be allocated for the Pioneer Mobile Home
project.
The City's proposal is not site -specific.
Discussion was held concerning requests for development and other
associated costs. Julie Smith will contact CDBG applicants who are
eligible for HOME funds. Staff will withdraw those applicants from
consideration before oral presentations. HOME funds will be dealt
with by Council, on a case -to -case basis, after recommendation by
CDBG.
The time of the next meeting will be 5:30 p.m., with oral presentations to begin at
5:45 p.m. Commission members were encouraged to pass questions to staff, to
then pass to the applicants, so that issues may be addressed during the
applicant's presentation. Bob Palmer from Facilities will be present to answer
questions concerning Fair Labor standards and costs.
Dickson Robin not being available, the Consolidated Plan Update item was not
addressed.
CDBG Commission IVlfutes
April 13, 1995
Page 3
Mr. Waido expressed confidence that CDBG membership would be reduced from
13 to 11, as recommended by the Commission. Imminent attrition was discussed.
Mr. Steffes briefed the Commission on Roy Porter's presentation concerning
economic development aspects of CDBG. Microenterprise applications do not
need to meet certain public benefit tests that general economic development
does, such as creation of certain dollar amounts per job, and income level of
hirees. HUD is promoting economic advancement for jobs creation. Future
CDBGs may be involved in community development, with other entities having
interest in affordable housing.
CDBG money can be pledged as loan guarantees up to 10 percent of the loan. A
concept was discussed wherein CDBG would loan City money for CDBG-eligible
activities; when the loan is repaid, CDBG has the money available without the
usual CDBG restrictions. It may take a philosophical shift on the part of Council
before such a concept would be adopted. Human resource projects were
discussed as potential beneficiaries of this concept.
Section 108 loans were discussed. A project would need a cash flow to pay back
the loan. Collateral can be provided by the City's general fund and/or the land and
buildings involved in the project. Section 108 funding requires a tum-down from a
local lender. It presents a risk, and some communities have forgiven loans made
through the program. Pro formas must be very detailed as to a project's cash
flow.
Section 108 loans present a way to advance worthy proposals when funds
available for one year are inadequate. The current loan rate is around 8.1
percent. The City has not received applications from developers that propose
using Section 108 loans. The economic development focus of CDBG was
discussed further. Means were discussed in which the Commission can take a
more proactive stance with projects in order to have those projects reflect the
needs of the community. The Commission discussed the balancing the needs of
economic development, and providing people with income, versus the needs of
affordable housing.
Mr. Waido noted that the selection guidelines have been prepared and are
available to anyone who needs them. They will be sent to Commission members.
Mr. Steffes moved adjournment, seconded by Ms. MacArthur. Upon a unanimous
vote, the meeting adjourned at 7:45 p.m.