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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 04/10/1997E City Council Liaison: Staff Liaison: Commission Chairman: CDBG COMMISSION MEETING MINUTES April 10, 1997 Bob McCluskey Ken Waido Bill Steffes Home: 493-1674 Work: 484-2662 The meeting of the CDBG Commission began at 6:40 p.m. in the Community Planning Conference Room, 231 North College Avenue, Fort Collins, Colorado. Commission members present at the meeting included Chairman Bill Steffes, Linda Coxen, Joe Zimlich, Violet Guthrie, Tom Hartmann, and David Gordon. Commission members absent included Bill Bertschy, Bobbi Guye and Tim Ostic. Staff members present included Jackie Davis and Mary Hile. Staff member absent included Julie Smith and Ken Waido. APPROVAL OF MINUTES Moved by Mr. Hartmann, seconded by Mr. Zimlich: To approve the minutes of the March 6, 1997 joint meeting of the Affordable Housing Board/CDBG Commission. Motion carried unanimously. CARE Housing Funding Request: Ms. Davis noted a request for $50,000 in additional construction costs for Eagle Tree and an additional $5,000 for Social Service, coming out of HOME funds. Budget lists construction as, $55,850 and CHDO as, $34,750, totaling $90,600. Sister Mary Alice, Susan Nabors, and John Dalgren presented an overview of the request from CARE Housing. They presented an architects rendition of three 12-plexes for a total of 36 units. It is located within market rate housing at Trilby and Lemay. The request encompasses extra expenses, such as, site work, and hard construction costs. Landscaping, clubhouse, pool and water costs have all risen. Costs have risen from $74,000 to almost $82,000. Ms. Nabors stated the new philosophy is for affordable housing to be integrated into market -priced neighborhoods to alleviate neighborhood protests and property devaluation. Rents are affordable to reach the lower part of the AMI in the area. Greenbriar is at 39 percent AMI and the Swallow project at 49 percent AMI. Income basis is $12,000 to $24,000 per year. There is a concern that much of the affordable housing being produced is for the 60 to 80 percent AMI market. Sister Mary Alice explained that by associating with CDL Partnership, costs are down $15,000. The clubhouse will be full cost, but CARE'S participation is 39 percent for landscaping and 39 percent for the pool. The pool was not really needed for affordable housing; however, the contractor felt that the market units would only be viable with a pool. Assessment of 15-months to cover pool costs will also be necessary. N CDBG Commission Minutes April 10, 1997 Page 2 Ms. Coxen congratulated Sister Mary Alice for her continuation with worthwhile projects and research. Extra project costs were inquired and Sister Mary Alice explained that tax credits have not been sold as of this date, but a good market exists for that endeavor. If that is not possible, the developers fee will provide for staff costs and up -front money for the next project. Soft costs were discussed, including attorney, development, and induction fees. Project reserves have to be established in order to receive tax credits, which are a useful financing ploy. This strategy allows for offering units to lower AMI families, in the 36, 45 or 50 percent area. There are 15-year IRS requirements, but the project adheres to a 50-year requirement, so cash flow is important. Reserves are held back for any unexpected expense. Rebates will not be expected, as the project is out of the central city area. Costs are higher in suburban areas. The Commission inquired as to rents. The rents are projected at the low end of $300/month, single mother with one child, up to a top end of $540/month. The average is $390. Rent restriction is 30 percent of individual family income. Rents can go down with less income. Overall averages are expected to smooth out any fluctuations that occur with individual families. Moved by Ms. Coxen, seconded by Mr. Zlmlich: To approve $55,000 for the CARE project, with a breakdown of $50,000 for construction and $5,000 for counseling. Motion approved unanimously. Sister Mary Alice thanked the Board. She announced the groundbreaking ceremony and said invitations would be forthcoming. Annual Review Process: Discussion was held concerning the present system of a single cycle for CDBG. It has been asked whether a continuous funding means could be used so that applications may be submitted at any time during the year. The Commission and Staff noted that the Consolidated Plan would have to be amended. The Commission does not wish to add a bureaucratic burden and more administrative costs that would be necessitated by the higher level of staffing needed to process ongoing applications. There are advantages in reviewing all applications at the same time rather than first -come, first - served. The present system provides a certain period for timeliness for projects needing money. Applicants are knowledgeable of proposal timing and when funds are available. United Way and other funding organizations have nearly the same funding cycle as CDBG. Mr. Steffes noted that the Affordable Housing Board was charged at the joint meeting to research subsidy projects that would provide housing at very low AMI levels. One CDBG Commission Minutes April 10, 1997 Page 3 possibility is spending a larger percentage of available funds in a single project. Feedback has not yet been received. 1997 CDBG proposals: Requests are at $1.7 million; CDBG has $1.3 million available. The selection guidance system is being used once again to rate projects. April 30th begins the oral presentations, starting at 6:00 p.m. Dinner will be included both nights. May 7th will be final review and May 8th will be additional meeting night, if needed. Lou Stitzel has applied for both CDBG and HOME funds with regard to the SID property that was approved at the first reading by City Council. TRAC is requesting reprogrammed funds of $121,000. There is a need to expedite the project. Public Service dollars have to be looked at separately as they are limited to 15 percent of total budget. Work session is May 27 and starting time to be determined. Status Report and Updates 1995 Projects The TRAC Parkway Townhomes' project needs to close, with the balance of Pioneer Mobile Home Park's relocation costs to be used for the people in those units. TRAC received $45,507, with development costs less than budgeted. Ms. Stitzel is planning on using the balance for acquisition of the other SID property across the street. The proposal is $121,762, with $54,000 for acquisition. The Fort Collins Housing Authority's land acquisition project at the 1300 block of W. Swallow project will be completed by June. CARE Housing's Eagle Tree land acquisition and development costs are awaiting completion of the infrastructure. 1996 Projects. Habitat has acquired the lot on Laporte and will start construction. It is also in process of purchasing lots by Carmike Theaters. Shelley Stephens is working on acquisition for the Housing Authority, but no results as of this date. DDA facade improvement program: one of the projects is across from the Galleria, adjacent to Trimbel Court. Another proposed project is the Rand Scott building, next to Fort Ram. CDBG Commission Minutes April 10, 1997 Page 4 The Housing Authority is bringing 600 Tenth Street to Planning and Zoning on April 28th for final approval; construction to begin in June 1997. The kitchen renovation at Elderhaus is completed. Respite Care is working on the design phase, with construction starting in May. Education and Life training: Rehab is nearly completed. Crossroads: Staff is working with the director on that project. Food Distribution Center. Painting is completed and bid documents have been sent to Purchasing for the sprinkler work Disabled Resources has served 25 people. Healthy Start: Medical has served 4,184; Dental, 166. Project Self -Sufficiency has served 42 people. Catholic Community Services: No report. Child Care Collaborative has served 791 people. Taste of Nations for Neighbor to Neighbor has been moved to the Lincoln Center. The Senior Center was too crowded last year for the even.. Mr. Sloan was introduced by Linda Coxen. He is interested in becoming a Commission member. Other Business: Mr. Zimlich noted that his wife serves on the Board of the Women's Center of Larimer County, an uncompensated position for a nonprofit agency. He stated that the Commission should be aware of that potential conflict of interest. It was the consensus of the Commission that, absent personal or financial gain, there was no conflict of interest. Mr. Steffes, Chairman read a proclamation from Mayor Ann Azari announcing Fort Collins Colorado Community Development Week Ms. Davis mentioned a possibility of a city bus tour for the education of Council and Commission members later in the year. Past experience has been beneficial. Note was made of the apparent quality of the Kaufman & Broad's Woodlands project. It is believed to be targeted at the 50 to 60 percent of AMI market.