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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.