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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 05/08/1996CITY OF FORT COLLINS COMMUNITY DEVELOPMENT BLOCK GRANT COMMISSION 1996-1997 FUNDING RECOMMENDATIONS Held Wednesday, May 8, 1996, 5:55 P.M. - 8:20 p.m. At the Community Planning Conference Room 281 North College Avenue Fort Collins, Colorado Commission members present: Dan MacArthur, Chairman William Steffes, Vice Chair Bill Bertschy Linda Coxen David Gordon Violet Guthrie Bobbie Guye Tom Hartmann Tim Ostic Holly Sample Joe Zimlich Staff present: Ken Waido Jackie Davis Mary Hile Julie Smith jib W. oak Street, Suite 500 Fort Collins, Colorado 80521 i9 Fax: (970) Fx 224-1199 CDBG Commission May 8,1996 Page 2 PLANNING AND ADMINISTRATION - 570.206(a) PA1 City of Fort Collins - CDBG Administration. $129.2". Moved by Mr. Bertschy, seconded by Mr. Steffes, seconded by Mr. Ostic: To recommend full cost of $20, 00 for cons Itings. a Motion to mend seconded passed 6-5 .Motion s amendn: To amend ed passed excludeon to thethe Pros of application Necessary function of the CDBG program. Council consensus at work session was to fund administration from the CDBG grant. Whether administration is funded from the grant or general fund is a matter of accounting. The Commission should recommend the funds from its own grant rather than general funds. The consultant would address concerns raised last year. Unbiased information would be helpful. The Commission has attempted its own pro forma development before. Cons of application The Commission should take responsibility for its own pro formas. Money spent on consulting is not available for projects. The consultant and cost thereof is unidentified. Pro formas are not difficult to develop. ACQUISITION - 570.201(a) A07 Habitat for Humanity - Two Homes. $90.000 Moved by Mr. Gordon, seconded by Mr. Browning: To fund in full. Motion failed unanimously. Following action on all applicants, moved by Mr. Hartmann, seconded by Ms. Sample: To fund $30,000 for one unit, with standard CDBG deed restrictions, with applicants be garnered from Neighbor -to -Neighbor, Fort Collins Housing Authority, or CARE. Motion passed 10-1. Pros of application Home ownership program. Good track record presented. Generates community involvement. Generates involvement of homeowner. Valuable service to the community. Cons of application Very high dollars per unit. Local success rate is questionable due to difficulty in finding tenants. Lack of cooperation or collaboration with other agencies. Past successes have been mixed. History shows an average of one unit per year. Leveraging is not good. CDBG Commission • • May 8, 1996 Page 3 (AQ1, Habitat for Humanity - Continued) Concerns expressed by Commission members: At the per -unit cost, $5,000-$15,000 would be more in keeping with grants to other programs. The applicant has been unwilling to be funded under the same restrictions that apply to other applicants. Considerable discussion was generated over the merits of the program, the past history, the conditions that Commission members wished to attach to any funding, and the hesitancy of the program to accept those conditions. It is doubtful whether the applicant will accept funding under those conditions. However, based on past experience, the attached conditions are desirable; and it would be irresponsible of the Commission not to attach such conditions. AQ2. CARE Housina - Acquisition of Land/Development Costs. $75 000. Moved by Mr. Zimlich, seconded by Mr. Bertschy: To fund in full. Motion passed 8-1. Ms. Guthrie and Mr. Ostic abstained from voting. Pros of application Blend of housing is creative and desirable. Program engages in collaborative efforts. Track record merits support. Decreased amount from other projects in past years. Program has brought unit costs down. Good bank support. Disperses affordable housing efforts. Cons of application CDBG funds are already committed to the project. Location is far to the south. AQ3. Fort Collins Housina Authority - Acquisition of Land. $250 000 Moved by Mr. Bertschy, seconded by Ms. Coxen: To fund in full. Motion passed unanimously. Pros of application Agency has good track record. Addresses affordable housing need of the community. Good leveraging through owner financing. Concerns expressed by Commission members: Although the project addresses the public need, a home ownership program would be more desirable. CDBG Commission May 8, 1996 Page 4 AQ4 Downtown Development Authority - Facade/Sidewalk Improvements. $90,000. Moved by Mr. Zimlich, seconded by Mr. Steffes: To recommend full funding. Motion passed 7-4. Pros of application Historic character of the community is important to preserve. Provides for public ownership of the facades. Promotes a vibrant downtown through economic development. Facades are expensive; the program promotes their construction. Cons of application The CDBG-created LDC provides low -interest loans for these purposes. The LDC fund is self -renewing rather than a grant institution. Not a high-ranking priority compared to other issues. HOME OWNERSHIP ASSISTANCE - 570.201(N)(4) H01. Fort Collins Housing Authority - Development Costs. $200,000. Moved by Mr. Steffes, seconded by Mr. Ostic: To fund in full. Motion passed 9-1. Mr Ostic abstained from voting. Following action on all applicants, Mr. Steffes moved to recommend funding of an additional $50,000 for H01, with the unallocated remaining funds to be used as contingency. Motion died for lack of a second. Pros of application Good success rate of applicant. Presents rare but desirable program for home ownership. Units will be affordable, servicing the 50 to 60 percent median income range. (1-101, Fort Collins Housing Authority - Continued) Concerns expressed by Commission members: Although additional funding may be desirable to further write down the loans, it would be unprecedented to award moneys not applied for. PUBLIC FACILITIES 570.201(c) PF1 Elderhaus Adult Day Proarams Inc. - Barn Raising/Kitchen Renovation. $14.183 Moved by Mr. Bertschy, seconded by Mr. Ostic: To fund in full. Motion passed 10-1 CDBG Commission • May 8, 1996 Page 5 (PF1, Elderhaus - Continued) Pros of application • After past rejections, the applicant has acted positively on each suggestion made. Modest amount of money to complete the project. The program provides needed services to a low-income population. Program helps individuals to be productive. Catastrophic health problems and mental health problems general imply low-income. Cons of application Difficult to ascertain the numbers of low-income and types of needs. PF2. Respite Care. Inc. - Facility Restoration. $62 500 Moved by Mr. Bertschy, seconded by Mr. Gordon: To fund in full. Motion passed 10-1. Pros of application Serve a high community need. Good success rate. Good collaboration with other entities. Historical house should be in good shape for clients. Funds needed to keep CDBG investment intact. Clients need safe environment. PF3. Education & Life Trainina Center - Addition to Existina Building $19183 Moved by Ms. Guthrie, seconded by Mr. Hartmann: To fund in full. Motion passed 8-3. Pros of application Large number of people served. Money is for contingency and can potentially be reprogrammed. Good collaboration with private entities. Services are valuable. (PF3, Education & Life Training - Continued) Cons of application Large amount of past funding obviates need for a secondary, smaller grant. CDBG Commission May 8, 1996 Page 6 PF4 Crossroads Safehouse Inc. - Security Systems Upgrade. $15,000 Moved by Ms. Sample, seconded by Mr. Zimlich: To fund in full. Motion failed unanimously. Following action on all other applicants, moved by Ms. Coxen, seconded by Mr. Steffes: To fund the request for $4,408. Motion passed 9-2. Pros of application Need for the perception, as well as the reality, of safety for the residents. Residents should be able to open windows. Relatively modest grant amount. The reduced funding should still provide for an excellent system. Cons of application Problematic as to whether a problem actually exists. Highly inflated cost. Proposed system may not adequately address all needs. Concerns expressed by Commission members: A better assessment should be made of the actual system needed. A comprehensive alarm system to meet these needs should cost much less. The system described could potentially be improved upon, with such items as a silent alarm and backup battery, and still cost less than the amount requested. A denial of funding would be overturned by the Council for this high -profile program. Moved by Mr. Steffes, seconded by Ms. Sample: To fund in full. Motion passed 9-2. Pros of application Valuable service provided to agencies that distribute food. Public building needs to be upgraded to be safe. Not funding could jeopardize ability to continue services. PF6 Hope Counseling Centers Inc - Building Acquisition and Remodeling - $365.000 Moved by Ms. Coxen, seconded by Mr. Gordon: To reject the proposed funding. Motion passed unanimously. Pros of application Conversion to ADA requirements is desirable. CDBG Commission • May 8, 1996 Page 7 (PF6, Hope Counseling - Continued) Cons of application • Does not fit the Commission's criteria well; should not be funding for private office space. Low priority for CDBG funding. Private enterprise; not a desirable recipient for the high level of public funding. Other resources are available. Program could borrow entire amount needed. Large amount of equity available from presently -owned property. Timetable seems overly ambitious. Playgrounds on Library Park are inconsistent with proposed facility use. Lack of creativity using CDBG financing. Concerns expressed by Commission members: Uncertain of the lengths taken to find an alternative building. Uncertain of public ownership should CDBG funds be granted for ADA conversion. PUBLIC SERVICE - 570.201(E) Moved by Mr. Steffes, seconded by Ms. Guye: To fund the full 15 percent allowable to public service projects. Motion passed unanimously. PS1. Disabled Resource Services - Youth Employment Project $15 500 Moved by Ms. Sample, seconded by Ms. Guthrie: To fund in full. Motion passed unanimously. Pros of application Critical service. Other sources of funding are being reduced. High level of service for the funds invested. Helps people move into gainful employment. Reduces help needed by clients from other government sources. PS2. Healthy Start. Inc. dba The Children's Clinic - Medical and Dental Care$89 914 Moved by Mr. Bertschy, seconded by Mr. Ostic: To fund in full. Motion subsequently amended to fund the medical program at 50 percent and the dental program in full. Motion passed,8-2. Pros of application The program is valuable. The service is widely used. Successful track record. The dental program will be harder to fund than the medical. Should not be penalized for building a reserve. Worthy use of funds. Proposed dentist salary is reasonable. Good leverage with community health care providers. CDBG Commission May 8,1996 Page 8 (PS2, Healthy Start - Continued) Cons of application Other sources of funding exist. Other tax dollars should be available through the Poudre Valley Hospital District. Duplication with other services, such as the Family Center. Large amount of reserves. The medical program is in no danger of being closed. Program can be weaned from reliance on CDBG funding. Large amounts of CDBG funding previously invested. Concerns expressed by Commission members: This is potentially an entity to be weaned from the CDBG grant system to become more self -supportive. PS3. Project Self -Sufficiency - $20,000. Moved by Mr. MacArthur, seconded by Mr. Bertschy: To fund in full. Motion passed unanimously. Pros of application Fundamental and grass -roots way of reaching people. Program is effective. Contribution is modest in relationship to the dedication of the program. Project funding shows increase in contributors. Concerns expressed by Commission members: The program applies for funding every year. It may be a candidate to be weaned off reliance on CDBG funding. PS4 Catholic Community Services Northern/New Bridges - Homeless Services. $40,000. Moved by Mr. Steffes, seconded by Mr. Ostic: To fund CCSN in full; to not fund New Bridges. Motion passed unanimously. Catholic Community Services Northern Pros of application Meets a community need. Aids people who have no resources available. Demand accountability from clients. New Bridges Cons of application Billing discrepancy calls into question ability to control money. Salary -only funding calls into question future need for continued funding. Increasing costs could compromise program viability. CDBG Commission May 8, 1996 Page 9 PS5. Radio Readina Service of the Rockies. Inc. - Broadcast Readina Service $7 400 Moved by Mr. Ostic, seconded by Mr. Bertschy: To reject the proposed funding. Motion passed unanimously. Pros of application There is value to the service. Cons of application Small scope of services to be funded. Undetermined numbers and income group to be reached by the program. Undetermined community need. No eligibility guidelines. PS6. Child Care Collaborative - Slidina Scale Tuition Assistance- $35 668 Moved by Mr. Steffes, seconded by Mr. Ostic: To fund in full. Motion passed unanimously. Pros of application Good value for the expenditure. Children have care that could not otherwise be provided. Collaborative effort. Good track record. Allows people to retain jobs and become independent. PS7. Neiahbor-to-Neighbor. Inc. - Comprehensive Housina Counseling $41 000 Moved by Mr. MacArthur, seconded by Mr. Zimlich: To fund all remaining public service grant funds to Neighbor -to -Neighbor. Motion passed 10-1. Pros of application Past success rates. Need exists for program. Input from builders stresses need for housing counseling. Good collaboration with other agencies. Cons of application $225,000 awarded in last cycle not yet spent. Loss shown on balance sheet is raises questions, particularly in light of the $225,000 grant. Concerns expressed by Commission members: This is potentially an entity to be weaned from the CDBG grant system to become more self -supportive. CDBG Commission May 8, 1996 Page 10 CONTINGENCY FUNDS Following action on applicants, Mr. Bertschy moved, seconded by Ms. Sample, to set aside all remaining funds as contingency. Following discussion, the motion was withdrawn. Following action on Crossroads Safehouse, moved by Mr. Hartmann, seconded by Ms. Coxen: To earmark the remaining $100,000 as contingency funds, to target capital construction of affordable housing. Discussion was held concerning the reapplication process needed to award those funds. Motion withdrawn. Moved by Mr. Ostic, seconded by Mr. Bertschy: To adopt the recommendations to Council, with excess of $100,000 to be used as a City contingency fund. Motion passed unanimously. Concerns expressed by Commission members: Perennial applicants who operate desirable and worthy programs, but appear to feel as though they have an entitlement to CDBG funds, should evolve to higher self-sufficiency. Concerns are sometimes raised as to the future of the CDBG program. This is an additional reason for program to become self-sufficient. Although higher uses may exist for the funds than contingency, the Commission can only respond to the merits of the requests before it. Although $1,187,000 is anticipated for this years appropriation, the final figure is uncertain. Funding may be cut further. This amount of contingency is a prudent buffer against further reductions. CDBG Commission • May 8,1996 Page 11 Further Commission action unrelated to funding: At the May 28 work session with Council, the following members have agreed to be advocates of Commission positions regarding the accompanying items: AQ1, Habitat for Humanity - Tom Hartmann. AQ2, CARE - Joe Zimlich. AQ3, Housing Authority - Bill Bertschy. H01, Housing Authority - Bill Steffes. PF1, Elderhaus - Bill Bertschy. PF2, Respite Care - Holly Sample. PF3, Education & Life Training - Violet Guthrie (Dave Gordon backup). PF4, Crossroads - Linda Coxen. PF5, Food Distribution Center - Bill Steffes. PF6, Hope Counseling - Dan MacArthur. PS1, Disabled Resources - Holly Sample. PS2, Healthy Start - Joe Zimlich PS3, Project Self -Sufficiency - Dan MacArthur. PS4, CCSN/New Bridges - Bill Steffes PS5, Radio Reading Service - Bobbie Guye. PS6, Child Care Collaborative - Dave Gordon. PS7, Neighbor -to -Neighbor - Linda Coxen. A meeting is necessitated for approval of the annual consolidated plan for HOME. A lunch meeting will be held on a Monday in June; precise date and location to be announced. CDBG Commission May 8, 1996 Page 12 APPENDIX A The following represents finalized figures obtained after the CDBG Commission meeting on May 8, 1996. Due to an increase in these figures, the public service component of the grant was increased. Commission consensus at the meeting was to grant the remainder of public service funds to Neighbor -to -Neighbor. A poll was taken of all Commission members to gain assent of these final figures. INCOME CDBG Grant 1,202,000 Program income 40,000 Total funds available 1,242,000 APPLICANT AWARDS PA1 - CDBG Administration 109,244 AQ1 -Habitat for Humanity 30,000 AQ2 - CARE Housing 75,000 AQ3 - Housing Authority 250,000 AN - Downtown Development Authority 90,000 H01 - Housing Authority 200,000 PF1 - Elderhaus 14,183 PF2 - Respite Care 62,500 PF3 - Education & Life Training 19,183 PF4 - Crossroads Safehouse 4,408 PF5 - Food Distribution Center 88,432 PF6 - Hope Counseling Center 00 PS1 - Disabled Resource Services 15,500 PS2 - Healthy Start Dental component 39,650 Medical component 25,132 PS3 - Project Self -Sufficiency 20,000 PS4 - CCSN/New Bridges CCSN component 20,000 New Bridges component 00 PS5 - Radio Reading Service 00 PS6 - Child Care Collaborative 35,668 PS7 - Neighbor -to -Neighbor 30,350 Contingency 112,750 Total awards 1,242,000