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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 09/12/19960 City Council Liaison: Staff Liaison: Commission Chairman: CDBG COMMISSION MEETING MINUTES September 12,1996 Bob McCloskey Ken Waido Dan MacArthur, Chair Home: 490-1574 Work: 667-2747 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 included: Chairman Dan MacArthur, Bill Steffes, David Gordon, Bobbie Guye, Holly Sample, Joe Zimlich. Viola Guthrie and Linda Coxen arrived after the start of the meeting. Staff members present: Ken Waido, Jackie Davis, Julie Smith, and Mary Hile. Sister Mary Alice Murphy and Terry Wahl were also present. ELECTIONS Mr. MacArthur called for nominations from the floor for the election of new officers. Moved by Mr. Steffes, seconded by Ms. Guye: To elect Mr. MacArthur as chair. There were no other nominations. Motion carried unanimously. Moved by Ms. Guye, seconded by Mr. Gordon: To elect Mr. Steffes as vice chairman. There were no other nominations. Motion carried unanimously. CARE HOUSING Ms. Smith reviewed the application for HOME funds by CARE. The request is for $125,000. No 1996 funds have been committed. $134,750 in construction funds and $80,750 for CHoDO groups are available. CARE is a CHoDO. Ms. Smith further noted that Mr. Robin had found the application to be satisfactory. The application meets all the HOME qualifications. Mr. MacArthur set forth the format for the CARE presentation: Five minutes for the presentation; ten minutes for question -and -answer. Sister Mary Alice Murphy presented the architect's sketch of the 12-plexes proposed. Three 12- plexes in the development will be for affordable housing; 36 units out of the total 92. Costs increase in the southeast part of the City. Some housing materials are more expensive; however, the maintenance costs should go down with the upgraded materials. The PUD and tax credits have been obtained. CDBG Commission Meeting Minutes September 12, 1996 Page 2 Sister Mary Alice updated the Commission on the Swallow project. Eight units are filled. Four more will be filled this weekend; four more next weekend. By the end of November, CARE hopes that they will all be filled. She thanked the Commission for helping to make the project possible. The new units are the result of cooperation between the nonprofit developer and CARE. This is CARE's first attempt with this concept. CARE is working with the developer through the entire process, in a consolidated fashion. CARE, like the City, would prefer to have affordable housing dispersed throughout the community. However, as previously stated, many costs are higher in the southeast; therefore, CARE is hoping for the full amount requested. Terry Wahl stated that the Swallow units were being finished on time, with the first units to be completed by August and the development completed in November. CARE's goal is to primarily serve people at the 40 percent area median income bracket, or $17,000-17,500 per year. Mr. Wahl noted that in the Greenbriar financing, CARE received 24 percent of the total project cost; in Swallow, that number dropped to 6 percent; and in Eagletree, the number is projected at 6 percent. In Greenbriar, CARE collected over $100,000 in private foundations; in Swallow, $50,000; and the amount to be collected at Eagletree, if any, is yet to be determined. City support has become more and more critical. Mr. Wahl stated that Greenbriar continues to cash -flow. The expectation is for Swallow and Eagletree to both be profitable. Costs are comparable to Swallow - $44-46/square foot, or $45,000 a unit, hard costs. In response to questions by Commission and Staff, the CARE representatives stated: An open house will be held at Swallow, probably at the end of October. This project is not in the Provincetown subdivision, which has been the focus of some controversy. Provincetown is to the west and south. There is an expectation that income generated from the project and tax credits will be used to fund future projects. Some of the Greenbriar income may be used to fund the Eagletree project. State funding will get tighter. The State is looking more to local communities to help with funding. The existing projects are being looked at as funding sources should government funding dissipate. Moved by Ms. Sample, seconded by Mr. Zimlich: To fund the request at the full amount applied for. Items noted: This award would use the majority of available funds for this class of project. Approximately $90,600 remains. Concerns remains about the high level of Federal subsidy - 66 percent. Motion carried unanimously. CDBG Commission Meeting Minutes September 12, 1996 Page 3 REVIEW Ms. Davis presentation. [am, K aTiLlI! The CARE project will be very nearly completed by September 30. Neighbor to Neighbor is paid in full. The Housing Authority acquisitions have been completed. The Housing Authority rehabilitations on Third Street and West Mulberry are slated for completion November 1996. The Swallow project was just started, but the construction agreement has an incentive to finish units by January. The 517-1/2 East Prospect is being reviewed under the PUD process. Education and Life Training; the bid documents are being completed; an archeological dig was done, finding nothing; the 30-day comment waiting period from the State Historical Preservation is in effect. It is hoped that the project will be finished by the end of the year. One West is completed. Seven of the ten architectural barrier removal projects have been completed. Not all the funds are being used for individual architectural barrier removals. The remainder will be used for Elderhaus. Fiscal year 1995 Mobile home park assistance. $200,000 has gone for relocation. $110,438.22 remains. 40 families have not yet moved out. Perhaps 10 or 12 have no relocation plan. 12 of the 40 families are slated for Parkway townhomes. Those families will be able to move their homes to Poco Drive until the townhomes are completed. Some families may feel that if they wait to the end, they will receive more from the City and JDM than is presently offered. There may be funds left to reprogram once all the families have moved. Parkway townhomes. A balance of zero is shown. The funds will be reimbursed to TRAC for the property that was acquired. Construction has started. The Housing Authority items for West Elizabeth and West Swallow are completed. The Eagletree item will be closed once the completed contract has been negotiated. That is anticipated for November. TRAC; $50,000 has been used for development fees for Parkway Townhomes. Construction has started on the community building; those funds will be paid out as well. Ms. Stitzel is exploring obtaining an SID property across the street from this development but needs approval of the TRAC Board. Respite Care is completed. Food Distribution is completed. CDBG Commission Meeting Minutes September 12, 1996 Page 4 Crossroads is completed. All Public Service items will be completed by September 30. Fiscal year 1996 Habitat has a contract for 1313 Laporte Avenue. Habitat is asking for a waiver on the CDBG affordability requirement. The CARE acquisition is for the Eagletree property. The other items had no substantive updates. Future items Staff expects Housing Collaborative will fill out an application. This agency buys foreclosed houses and resells them. Friends of the Library may ask for funds for its literacy program. Kaufman and Broad is looking at senior housing. HOME funds will probably be applied for as well, for Phase 2 on their Parkway project. Staff has not heard what funds will be available for FY 1997. The best guess is approximately the same amount as in 1996. Mr. Waido complimented the Commission on the last selection process as being the best that Staff had seen. He noted that the composition of Council may change by next May. The Commission may wish to evaluate the timing of the work sessions. Commission members expressed their satisfaction with the application form. Staff is placing CDBG information on the Internet. Questions were raised as to the new relationship between Healthy Start and the hospital. Commission members inquired whether more funding would be available to the clinic and thereby free up some of the limited CDBG funds available for public service items. Commission and Staff discussed the possibility of a meeting with the clinic and the hospital to discuss future funding needs and sources, and perhaps to clarify the relationship among the clinic, the hospital, and the Hospital District. Further discussion was held on the advisability of meeting with United Way to discuss funding needs, priorities, and sources. It was noted that such a procedure would be more proactive than the Commission has been in the past. The agenda and intent of the Commission should be fully set out before such a meeting would occur with any agency. Inquiry was made as to whether this is an appropriate role for the Commission. Other comments included a desire to discover what the realities were of hospital abilities to aid the clinic; and the impact of the hospital district lawsuit on funding. Larimer County Development is another agency that would be suitable for such a meeting. CDBG Commission Meeting Minutes September 12, 1996 Page 5 Discussion was held whether these agencies should be met with separately or at one time. The Commission and Staff consensus was to meet these three entities separately. Other Commission comments noted that Healthy Start generally consumes the larger part of the public service CDBG funds; that if Healthy Start received funding from other sources, more CDBG money would be freed up for other needs; and opening communication with other agencies would be helpful. The Commission expressed its satisfaction with the selection criteria and procedures that were used for 1996. Staff noted that the application form is now on diskette. Mr. Waido noted discussion held about "weaning" entities from CDBG funding; that no decision had been affected by such a criteria; that such criteria was not contained in the Commission's policies; and questioned the propriety of such a discussion. Commission and Staff noted the following: that one goal for applicants is developing alternative sources; that applicants are looked at with more favor if they can show active attempts to develop alternatives funding sources; that some funding sources are unlikely to award money unless funding already exists, creating a Catch-22 situation for applicants. It was agreed that no application had been turned down due to a lack of "weaning" from CDBG funding. Mr. Waido presented the background of the Habitat request for the affordability waiver. Staff and Commission discussed the Habitat program of the second mortgage on the house in order to maintain its affordability. Habitat in the past asked for a blanket waiver; the Commission agreed to review the requests on a case -by -case basis. Commission and Staff noted the following in regard to the Habitat request: that Habitat claims its program betters the one adopted by CDBG for maintaining affordability; that CDBG's policy is clear for wanting a 20-year waiver versus the 15-year waiver proposed by Habitat; that it would be possible, given a rise in the real estate market, for the homeowner to pay off the second mortgage, receive a profit, and the home would be lost affordability; that the second mortgage funds would go toward reinvestment in another home; and that such second mortgage funds' value would be depreciated from that of the original funds. Moved by Mr. Steffes, seconded by Mr. Gordon: To deny the waiver requested by Habitat for Humanity. Further discussion included: that Habitat should be willing to work with the Commission and the rules that are in place; Habitat will not accept CDBG funds under the Commission's affordability restrictions; the program is commendable; Habitat's attorney has criticized the CDBG restrictions as having too many loopholes; granting the waiver may place an expectation with Habitat that future waivers will be granted as well; that flexibility is important in housing issues; whether the Habitat claims have merit; that the Habitat guarantees contain inadequacies; any loopholes in CDBG guidelines are not readily apparent; that the CDBG lien does not fully protect the program. Further discussion brought forth the following comments: that HUD is growing increasingly flexible; that Council desires staff to maintain flexibility in affordable housing programs; that any funds refused by Habitat would be reprogrammed; that for a homeowner to realize a profit and take a CDBG Commission Meeting Minutes September 12, 1996 Page 6 Habitat home out of the affordable market, home values would increase rapidly; that future funding decisions should be made with the proviso that the affordability restriction would remain in place, if the Commission felt strongly about it; that funding should not be offered and then removed due to Commission opinions that were not made a condition in the decision -making process; that Council would probably override the Commission's decision to deny the waiver. Motion withdrawn, with consent of the second. Moved by Mr. Zimlich, seconded by Ms. Guye: To approve the waiver requested by Habitat for Humanity. Discussion was held that the concerns should be expressed at the next funding process; that Habitat and the Commission should be able to compromise on suitable affordability restrictions. Motion approved unanimously. Discussion was held whether to hold the October meeting. Staff will evaluate the agenda and make the decision. Ms. Davis noted that the Children's Clinic has merged with the hospital. She presented copies of the acquisition agreement. The dental clinic has hired a dentist. Ms. Smith updated the Commission on the State program for displaced mobile home residents. The State has approved a program, open to anyone who is economically eligible County -wide. Those who cannot afford a Fort Collins home can now look anywhere in Latimer County and receive assistance. The requirements for this program are a maximum four percent loan over ten years; applicants are to provide $500 at closing, plus a one percent origination fee on the HOME money (maximum $50). This program was to be administered by the Loveland Housing Authority. That agency is not equipped to administer this program. Five contracts out of the allowable 16 already exist. The State has indicated a willingness to work past the 16 allowed. City Council will need to have an ordinance allowing the funds to flow through the City of Fort Collins in giving aid to the Loveland Housing Authority. This would only exist for the first phase of funding. Fort Collins would not administer the second phase. The consensus of the Commission was to recommend that Ms. Smith be given Council support to facilitate the administration of this program. There being no further business, the meeting adjourned at 7:50 p.m