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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 02/12/1998• City Council Liaison: Staff Liaison: Commission Chair: CDBG COMMISSION MEETING MINUTES February 12, 1998 Bill Bertschy Ken Waldo Holly Sample The meeting of the CDBG commission began at 6:30 p.m. in the City Council Chambers, 300 West Laporte Avenue, Fort Collins, Colorado. Commission members present included: Holly Sample, David Gordon, Phil Majerus, Tim Ostic, Andy Smith, and Joe Zimlich. Linda Coxen, Al Flores, Violet Guthrie, Bobbie Guye, and William Steffes arrived later. Staff members present: Ken Waldo, Jackie Davis, Bob Smith, Julie Smith, Ann Watts, and Mary Hile. Approval of minutes Moved by Mr. Zimlich, seconded by Mr. Majerus: To approve the minutes of January 8, 1998. Motion passed unanimously. Habitat for Humanity - Restriction Waiver Mr. Waido stated that Habitat for Humanity was asking for a blanket waiver from the Commission of the program's 20-year affordability restriction requirement, in favor of Habitat's own policy. Each year, Habitat has come before the Commission with a waiver request, and the Commission has granted it. Therefore, Habitat is requesting an ongoing waiver on the condition that they apply the same methodology to their projects to ensure ongoing affordability. Mr. Waldo noted that Bob Browning, President of Habitat, was present to answer any questions. Moved by Mr. Gordon, seconded by Mr. Ostic: To waive the 20-year affordability restriction for Habitat for Humanity. Mr. Gordon noted the good track record and level of integrity of the organization. It was noted that this topic has been discussed extensively in the past. Motion carried unanimously. Neighbor to Neighbor Ms. Davis noted a letter received from Neighbor to Neighbor requesting that the $145,000 originally approved for the house move be reprogrammed for housing acquisition. Ms. Davis stated her belief that Neighbor to Neighbor was seeking to acquire an existing project and allow for attrition to make units available. $10,000 was used for the down payment for the house. That needs to be returned, and the entire $145,000 would be used as down payment for the project. CDBG Commission Meeting - Minutes February 12,1998 Page 2 Moved by Mr. Zimlich, seconded by Mr. Gordon: To approve the change in project requested by Neighbor to Neighbor. Mr. Zimlich noted that the change in project does not change the intent of the funds, i.e., to obtain housing stock for low-income people. Motion approved unanimously. Old Business Attendance and voting. Mr. Waido stated that the issues raised by the Commission in its last hearing had been forwarded to the City Attorney for comment. The Staff was not prepared for a full discussion on the issue due to the anticipated length of the public hearing. The Staff analysis will be completed for the March meeting. Conflict of interest. The Commission received a letter from the City Attorney regarding this issue. Mr. Flores' involvement is restricted from participating in the Neighbor to Neighbor applications. The appearance of a conflict of interest can sometimes reflect as adversely as a true conflict of interest; it will be up to Mr. Flores to decide whether he can be objective in reviewing, discussing, and voting on the entirety of the applications. The Commission recessed and reconvened at 7:00 p.m., the time set for the public hearing. Public Hearing Ms. Sample outlined the salient points of the meeting: The request for needed funding; the resulting reduced request; analysis by Staff and presentation of their recommendations; comments to be presented by the public; and discussion and voting by the Commission. Staff presentation Mr. Waido noted the history of the funding request of $47 million and the resulting award of $511,740. Typically in CDBG funding, the Commission is required to pare down $2-3 of funding requests per every $1. Tonight's meeting will involve $92 of requests for every $1 to be awarded. Tough choices will need to be made. City Staff formed a Flood Mitigation Subcommittee, headed by Tess Heffernan, who is spearheading the City's flood recovery program. Other members include Glenn Levy of the Poudre Fire Authority, Bob Smith and Marsha Hilmes of the Storm Water Utility, and Jackie Davis from the CDBG program. In addition to recommendations, Staff did a ranking of applicants using traditional CDBG Commission Meeting - Minutes February 12,1998 Page 3 CDBG criteria to facilitate the Commission's review. Staff recommendations are as follows: $180,000 for tenant -based rental assistance. This was requested by the Fort Collins Housing Authority. This would continue the current program funded by the State, FEMA, and a variety of sources. This funding level would continue 30 families for 12 months. If this recommendation is adopted, Staff recommends placing conditions on the families to ensure that they actively pursue, through housing counseling or case management, permanent housing situations. $4500 to Albertson Clark Associates, who prepared the action plan. An action plan is required by HUD. $300,000 to a flood -proofing grant and loan program, to be managed by the Storm Water Utility Department. This program would offer grants and funding on a sliding scale for flood -proofing or mitigation work. Very low income families could receive 100% in grants; at the upper income level, low -interest loans could be made. Bob Smith has affirmed the need for this program in low-income neighborhoods that lie in the 100-year floodplains. $27,240 to program administration. The City will need a special effort to administer this program. Staff is not requesting that the funding go to major capital storm drainage projects. Far too much damage exists for this level of funding to have any impact. Should FEMA funds be realized, those moneys could then be used in areas that have a lower probability of flooding than the areas envisioned as targets for the $300,000 allocation. Mr. Waido noted that the emergency notification systems and most of the public facility storm water improvements were withdrawn from consideration because the level of funding would not have a meaningful impact on those programs. The request for down payment assistance scored high, but HOME currently has $300,000 in place for that program. Land acquisition for housing was considered, but current programs are already struggling to find suitable and affordable sites. The Staff felt that flood -proofing would be a much better expenditure than the emergency housing rehabilitation. In response to questions by the Commission, Staff noted that, under their proposal, any excess funds remaining from the rental assistance program would be reprogrammed to the CDBG program. The current levels of funding per family would remain constant under this proposal. HOME does not have the capability to administer the flood -proofing program; that would be done by Storm Water Utility. Flood -proofing would be used on structures that had been damaged, to prevent future damage. CDBG Commission Meeting - Minutes February 12,1998 Page 4 Ms. Sample opened the hearing to public comments. Craig Pastor, from the Avery Park Neighborhood Association, expressed regrets at the level of funding being seen and respect for Staff work on the proposals. He reviewed the history of the Avery Park area; the initial assurances when the area was first built that it enjoyed 100-year flood protection; developments in surrounding areas which reduced that protection to under a 50-year level; and the damage to the neighborhood on July 28 by direct flooding and sewage backup. Mr. Pastor stated that the work needed to improve the drainage basin to bring the neighborhood back up to 100-year flood protection was estimated at $6.2 million. About $330,000 is raised per year through fees and taxes. The neighborhood needs better protection in place as soon as possible. Although 100-year protection may not have been effective for the July 28 storm, the neighborhood is concerned about preventing other flooding from occurring in the future. Although houses could be flood -proofed, it would be more effective to put that same money into more effective drainage of storm waters. Mr. Pastor stated that many people in the neighborhood are facing serious problems from the standpoint of a 40- or 50-year flood. Many people are considering leaving, viewing the neighborhood as a flood -prone area with no protection. There are many rentals, and some landlords are not being responsible, in that they are not cleaning out units properly before renting them again. Mr. Pastor expressed concern over all the issues and asked the Commission to consider the neighborhood's problems and needs. In response to questions by the Commission, Mr. Pastor stated that he did not know the funding amount that the neighborhood was requesting. Bob Smith and Dave Baumgartner, an upcoming speaker, would comment on that figure. Nina Rubin and Bill Peck spoke on behalf of the Resource Coordination Committee. The Committee has provided over $100,000 in direct assistance to flood survivors, the majority of the funding going to housing assistance. The additional funding of the program in question is needed to support families who need affordable housing. The Resource Coordination Committee works in conjunction with other area organizations, particularly Neighbor to Neighbor and Catholic Charities. Around 27 families are still living in housing subsidized by emergency relief funding. The Committee meets weekly to discuss how to assist families in moving to a permanent housing situation. The Committee strongly suggests that any leftover funds from the proposed program be used to help replace affordable housing lost in the flood. In response to questions by the Commission, Ms. Rubin and Mr. Peck stated that the Committee was working with the Housing Authority and Neighbor to Neighbor to identify CDBG Commission Meeting - Minutes February 12,1998 Page 5 potential housing. There is still a strong need for housing rehabilitation. Many people will not know the true extent of structural damage for a while. Beth Cross, Case Manager from Neighbor to Neighbor, stated that the people with the fewest resources are sustaining the greatest losses. With a minimal amount of funds, the money needs to be maximized as much as possible. She is working with households that have been displaced and lack resources to obtain permanent housing elsewhere. Case management and counseling is needed so that the problem can be resolved before interim funding runs dry. Ms. Cross stated that, with the closing of Pioneer and the destruction of mobile homes by the flood, Fort Collins has lost over 300 of its most affordable housing stock. Unless that stock is replaced for families making $12,000-15,000 per year, the affordable housing crunch in Fort Collins will only grow worse. Neighbor to Neighbor has seen a few households coming forward for damage assistance, but not many. Although families may be loath to tap into equity loans or other resources to repair damaged houses, that approach is still available. Low-income families can apply to the Larimer Home Improvement Program, which assists in home improvement for households at 80 percent or less AMI. David Baumgartner, from the Avery Park Neighborhood Association, stated that the primary drainage for the neighborhood is the New Mercer Canal, Avery Park Pond, and the Clearview Drainage Ditch. The area may have never been at the 100-year flood protection level. With the current capacity of the New Mercer Ditch, it may be lacking even ten-year protection. In addition, Clearview Ditch is receiving new water from developments ongoing around Overland Trail. Mr. Baumgartner suggested that the first line of defense against a repeat of July 28, rather than flood -proofing, is the New Mercer Canal and its ability to move water to the south, through the Spring Creek floodplain, which has been improved and developed. The New Mercer improvement is already a high priority for Storm Water Utility. Mr. Baumgartner asked the Commission to consider whether the money recommended for flood -proofing could be better spent in increasing the capacity of the New Mercer Canal from Elizabeth Street to Prospect Street. In response to questions by the Commission, Mr. Baumgartner and Staff noted the cost of the requested improvements to be $207,495. No homeowner association funds have been allocated to the project, as this association is a voluntary neighborhood association that does not collect dues. Sister Mary Alice, director of CARE Housing, urged the Commission to consider the people most in need of the funds. Fort Collins has done a very good job of coordinating CDBG Commission Meeting - Minutes February 12,1998 Page 6 all its available resources and needs to continue in that effort. Long-range solutions are needed. The families left on rental assistance need the counseling that Ms. Cross suggested. However, the situation of people who make $300 a month living in housing worth $650 a month will soon be untenable. Sister Mary Alice acknowledged the difficulty of the decision facing the Commission and asked that they place people's needs first. She stated that long-term solutions rather than band -aid approaches be used. Many housing providers had a meeting yesterday, and they will be offering an alternative to the City's proposal. They are not critical of Staff's efforts but wish to make their own views known. Rusty Collins, Director of Neighbor to Neighbor, stated that he and Sister Mary Alice are co-chairs of the Affordable Housing Coalition of Larimer County. The Coalition is comprised of over 40 entities from all sectors of housing. Staff made a presentation at the Coalition meeting yesterday, and Mr. Collins complimented Staff for their work. Following that presentation, the Coalition formulated its own recommendations to make to the CDBG Commission. Mr. Collins stated that the highest priority was the creation of continued permanent affordable housing stock. He reiterated Beth Cross' statement concerning the reduction of affordable stock. A multi -unit building could perhaps be acquired devoted to housing flood -displaced families. As attrition occurred, units would be made available for other families in need of affordable housing. Other things could be accomplished, such as condominiumizing or producing rent -to -own units, or concepts where capital investors could retain interest in equity to make a unit affordable. Mr. Collins outlined the next priority, to continue tenant -based rental assistance, in concert with proper case management. He noted Parkinson's Law, as exemplified by the Pioneer situation, where people will expand what they need to do over the time allotted to them. Families need to be benchmarked and monitored in their situations to ensure that they diligently seek and are able to find more permanent housing situations. The next priority cited by Mr. Collins was to target resources to those people with the greatest amount of need and the least amount of resources, i.e., those families impacted by the flood who are currently in temporary housing. The last recommendation of the Coalition is offered in support of the flood -proofing grants and loans. Mr. Collins noted that Fort Collins has always responded to disasters, whether from the Poudre River overflowing or the Dust Bowl days of the '30s. As director of Neighbor to Neighbor, Mr. Collins outlined three illustrations of this: CDBG Commission Meeting - Minutes February 12,1998 Page 7 A family in Laporte had damage to their double -wide that exceeded the value of the home. Ms. Cross case -managed this situation. Through publicity in Fort Collins, a Colorado Springs doctor contributed a mobile home, a value of $45,000. Ms. Cross presented the plan to the RCC Committee, who provided the funds to move the mobile home to a permanent foundation in Laporte. A disabled woman had her trailer destroyed in the flood. She moved to temporary housing but needed to stay close to her doctor because of her illness. Through case management, assistance from the HOME program, she has purchased a townhome and has improved her living situation from the time before the flood. A disabled woman lived in the upstairs of a home and rented the downstairs to provide needed income. The flood destroyed the three -bedroom apartment downstairs. $18,000 was needed for repairs. Ms. Cross, the RCC Committee, and ServiceNet, acquired volunteer assistance that reduced the cost to $3,000. The woman once again has income from her unit. Neighbor to Neighbor has become experts by default on relocation issues as a result of the Pioneer situation. It has been asked to provide counseling support for the flood - displaced families, but it will need to have a full-time employee to do so. The Colorado Division of Housing has expressed its support and received $5,000 from the Anschutz Foundation in Denver. The RCC Committee locally contributed another $10,000. Another $2,000 was received from a bar owner in Loveland. This $17,000 has paid for counseling for six months. Mr. Collins requested an additional amount from the Commission to continue the counseling efforts. Mr. Collins distributed a handout detailing the recommendations from the Coalition. The request for counseling funds is from Neighbor to Neighbor; total funds needed for one year is $30,000, of which $17,000 has already been contributed. He added that some funds might be earmarked towards acquisition of a 20-unit type of structure, to house flood -displaced families. Gary Vette, from the Woodbox Condo Board of Directors and the Avery Park Neighborhood Association, stated that Avery Park was developed in the mid-1960s and currently has approximately 600 housing units. Some of the permanent housing is HUD homes that would benefit from the City expenditure for flood -proofing. Mr. Vette asked if HUD provided the Commission with any reasoning for the appropriation of $511,740. Ms. Sample noted that Staff would be asked that question at the end of the public hearing. Shelley Stephens, of the Fort Collins Housing Authority, spoke at length, thanking the Commission for its diligent efforts and noted that the CDBG appropriation of $375,000 CDBG Commission Meeting - Minutes February 12,1998 Page 8 for the Via Lopez project will be coupled with other funding from the Federal Home Loan Bank, the Colorado Division of Housing, and HOME funds, to result in a groundbreaking on March 5. She invited the Commission to attend. The project encompasses 33 modular homes, 11 of which are earmarked for flood -displaced households. Occupancy is anticipated by June or July. The Housing Authority is looking at the gap period of time that these households are in rental situations. Around 30 households are currently receiving rent subsidies, many of which are in excess of $500/month, indicating a permanent affordability level of $200-300/month. Some of these households can never qualify for home ownership. Ms. Stephens expressed a desire that all these households work with Neighbor to Neighbor for case management and housing counseling, as that resource is indisputably required. Ms. Stephens expressed concern for the renters who will not be able to achieve home ownership or market -rent rentals. Ms. Stephens noted the length and duration of the waiting list that the Housing Authority currently has. The Housing Authority is considering suspension of applications due to the length of time before persons who need to be served can find an opening. The short-term subsidized renter will remain in that fashion until long-term affordable housing is addressed. Ms. Stephens noted a concern as well for landlords who waived screening and qualification in order to help meet the emergency, who now find themselves in untenable tenant relationships as a result. Ms. Stephens noted the current situation facing the 30 families on tenant -based rent assistance. Via Lopez will be the least inexpensive place available when it is finished. Ms. Stephens once again thanked the Commission for its diligence and urged them to consider people who were not present at the meeting who nevertheless had a need for the Commission's concern, sensitivity, and funding recommendations. Frank Goss stated that he lives in the Avery Park neighborhood, with his back yard next to the New Mercer Ditch. Although his house did not sustain much damage, many other neighborhood homes were hard hit. He stated that an allocation of $300,000 to flood - proofing is addressing a very small part of the problem. Upgrading the drainage area would achieve much more and have a greater effect on the community, helping more people within the entire drainage basin. Steve Wilson stated that his house was in the flood. He drew a distinction between secondary intervention, of responding to the effects of the flood, and primary intervention, preventing future flooding. He related some of the effects of the flood that he witnessed. Although rehabilitation can be accomplished, he stated that without preventive action, a devastating problem will happen again. 0 CDBG Commission Meeting - Minutes February 12,1998 Page 9 No other speakers came forward. Ms. Sample forwarded the question to Staff of whether HUD had presented any rationale with its award of funding. Mr. Waido stated that funding was received from the HUD Secretary's discretionary fund for natural disaster relief. The bulk of that funding went to North Dakota. Montana and 12 other counties in Colorado also have received relief funding. Staff did not protest the amount of funding; whatever amount HUD awarded was appreciated. Ms. Sample closed the public hearing portion of the proceedings and invited questions or comments by the Commission. Staff made the following comments in response to Commission questions: The term of 12 months for additional tenant -based subsidies was chosen as a sufficient time to allow the subject families to find suitable, permanent housing. Lower levels of funding can result in fewer families or lesser times. Staff evaluated funding permanent housing. The question of level of funding was troublesome. Had Staff been aware of the Affordable Housing Coalition's recommendation, the recommendation would have received strong consideration and probably been included. Avery Park is online for improvements in its drainage basin. Every property in the city is in a drainage basin. Fees are collected for improvements. The improvements are noted in the basin master plans. New Mercer Canal is a priority; undercurrent funding, it is scheduled for improvements in 2003. Improvements have been made at the Shield Street bridge and in Red Fox Meadows. Those systems had to be built in order to carry the drainage that will occur from the improvements to be made upstream. Since the flood, Storm Drainage has been reviewing improvements to be made in several basins and potential HUD and FEMA funding. Whether funding is received will reflect directly on the improvements and the speed at which the are to be accomplished. If improvements are targeted for one drainage basin, another will suffer. The idea of flood -proofing arose as a means to help people at risk city-wide rather than in one basin. Avery Park has a definite need for drainage improvements. Improvements are identified for both the Mercer Ditch and Larimer No. 2 Ditch. Storm Water is preparing a package delineating improvement needs and financial wherewithal. Council will make a decision on these CDBG Commission Meeting - Minutes February 12,1998 Page 10 issues in April or May. A similar analysis is being made of the Old Town Basin. Many homes were damaged in that basin as well. The improvements online for 2003 may be possibly accelerated. Better drainage in the Avery Park neighborhood will not negatively affect downstream drainage, because downstream improvements were made first. Storm Water does not have an estimate of the number of families affected by the improvements in the Avery Park area. The $300,000 that is collected is used for capital improvements and/or debt service. Minor capital is used for localized drainage problems, such as an intersection that is not draining properly. Remaining funds are banked for future projects. There is no HUD direction on how priority is given to the funding. Any funding directed to a specific project would be awarded after a plan is presented and approved. No project would receive a blank check. If the money is allocated to the New Mercer canal improvements, it would be allocated for that project. If it was directed to another project, it would be used to fund that project. Staff could track the households within the Avery Park area that are low- income that would benefit from flood -proofing funding. Overall, the area would qualify due to the number of student households present. The level of grants, rebates, or loans, would be directly related to the income of specific applicants. Applicants would be recruited through the newspaper, press releases, and other advertising. Many potential applicants have already contacted Storm Water. The New Mercer improvements are estimated at $207,000. A substantial contribution to that improvement would accelerate the schedule. Staff generally looks to have a project completed within 12 months of funding and has an enviable track record of performance under HUD standards. Any award should address the HUD guidelines to: benefit lower -income persons; eliminate slum and blight conditions; address urgent community development need posting threats to community safety and welfare. Less than one percent of HUD funding has traditionally been used in the last category. HUD is believed to be receptive to granting a waiver on low- and moderate -income benefit percentages. A discussion ensued as to whether project completion could be achieved in 12 months. Any reduction in funding for grants and loans would also reduce CDBG Commission Meeting - Minutes February 12,1998 Page 11 administration costs commensurately. Drainage is generally a neighborhood issue rather than a single -home issue. However, flood - proofing addresses the problems of homes within a neighborhood that are particularly vulnerable to flood conditions, even with improved drainage. The City has reviewed the possibility of addressing some of these needs with general fund revenues. If required, the $4500 and Storm Water administration funding could be realized elsewhere. Specific gradations of income would need to be addressed to determine who would receive grants and who would receive loans for flood -proofing. Moved by Mr. Zimlich, seconded by Ms. Coxen: To recommend the following funding: $150,000 allocated to tenant -based rental housing, with a requirement that recipients participate in case management prior to receiving any rental subsidies; $ 30,000 allocated to case management costs; $ 4,500 allocated to the flood recovery plan; $150,000 allocated to the New Mercer Canal improvements; $150,000 allocated to flood -proofing grants and loans; $ 27,240 to be divided between actual necessary costs of administration, with the remainder allocated to flood -proofing grants and loans. In support of his motion, Mr. Zimlich noted an accepted need for ongoing housing counseling and case management. The shift from the Staff proposal to the New Mercer improvements is made based on public input and focusing funding on a specific target with a severe need. In response to questions concerning the focus on one drainage basin as opposed to others, Mr. Zimlich cited his personal opinion and views of the news of the flood, impressions of where the greatest damage occurred, and public input in this night's hearing as well as the previous meeting. In response to a question, Bob Smith stated that each basin is set up with its own funding source; the highest priorities of the basins are set within those basins. Mr. Flores supported the worthiness of the New Mercer Canal as a funding target considering the level of flood damage. In response to a question from him, Bob Smith stated that $150,000 would constitute a substantial step toward that project and move its completion to the winter of 1999-2000. Mr. Waido expressed a concern that this timetable would present 18 months to project funding rather than the 12 preferred by HUD guidelines. CDBG Commission Meeting - Minutes February 12,1998 Page 12 In response to Commission questions, Bob Smith stated that if the entire $207,495 were funded, completion could probably be moved to the spring of 1999. Amendment offered by Ms. Sample: To amend the funding requests between flood -proofing and New Mercer Canal improvements in order to fully fund the New Mercer Canal improvements of $207,495. Amendment accepted by Mr. Zimlich and Ms. Coxen. Mr. Flores expressed a concern that had the brunt of the July 28 storm focused elsewhere, or should future storms focus elsewhere, that other unimproved basins would then see similar devastation. Bob Smith stated that the flood occurred as a result of storm placement; other areas may not see the same type of damage with a similar storm. He agreed with Andy Smith that the proposed improvements to the New Mercer Canal would not bring the basin up to a 500-year level of protection but the standard 100-year level that is seen in other areas within the city. Motion passed unanimously. Upon motion by Mr. Steffes and unanimous vote, the meeting adjourned at 9:10 p.m.