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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 04/05/2012CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES 281 N. College Ave. Fort Collins, Colorado April 5, 2012 4 to 6 p.m. Chair: Dan Byers Staff Liaison: Ken Waido 970-221-6753 City Council Liaison: Lisa Poppaw Board Members present: Ben Blonder, Dan Byers, Jeff Johnson, Troy Jones, Karen Miller, Mike Sollenberger, Wayne Thompson Advance Planning Department Staff present: Joe Frank, Director Council Members present: None Other Staff present: Kate Jeracki, Note Taker Guests: Jen Garner, BBC Research and Consulting; Marilyn Heller, League of Women Voters; Ana Arias, Fort Collins Office of Sustainability Meeting called to order with a quorum present at 4:01 p.m. by Chair Dan Byers Joe Frank announced that Ken Waido is expected to return to work on Monday. There were no changes to the agenda as presented. PUBLIC COMMENT Marilyn Heller handed out a flyer for the League of Women Voters’ public forum on housing for veterans on April 23 at 7 p.m. in the Harmony Library. It will also be broadcast on Channel 14. NEW BUSINESS APPROVAL OF MINUTES — The minutes from the March 1, 2012 meeting were unanimously approved as presented on a motion from Ben Blonder seconded by Troy Jones. ORGANIZATION RESTRUCTURING UPDATE — Joe Frank reported that the process of reorganizing City departments around accountability and sustainability is not yet final, but getting close. When it is finalized, Frank will step down as head of the Advance Planning Department to become the head of a new department dedicated to social sustainability. It will be composed of staff currently responsible for housing and human services, with support from the Office of Environmental Services; no new resources will be added. Plans are in the works to recombine Advance Planning and Current Planning into one department. The Affordable Housing Board will be part of the new department, and Board members should see little change in operations, Frank said. BUDGETING FOR OUTCOMES PROCESS — Joe Frank said that he will share the department’s budget offers with the Board once they have gone to City Council in May. Staff is working on the offers now. He said the Board can email him any ideas and suggestions it would like staff and Council to consider in developing the 2013-14 budget. He added at least one representative from the Board should attend the public BFO forums to be held in June and July. OLD BUSINESS ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE (AI) – Jen Garner of BBC Consulting recapped some of the preliminary results from stakeholder meetings and resident questionnaires. The results will be made public at the Fair Housing Forum on April 16; a draft is due to City Council for approval on May 15 and must be forwarded to HUD in July. Garner said that so far no real problems have been identified; Fort Collins is a fairly progressive city and walks the talk on fair housing. Disability issues have been the biggest so far, and low-income housing seems to be clustered on the north side of town, but any barriers to housing seem to be marketplace issues and affect all classes of the population equally. Dan Byers pointed out the lack of housing for really low-income individuals, making 30 percent to 50 percent AMI. Mike Sollenberger said that developers find it impossible to build projects for the 30 percent AMI market without Section 8 assistance. Sollenberger also raised the issue that CARE doesn’t rent to seniors, only families with children. Dan Byers said he would attend the public forum. Garner added that BBC will be sharing final results with all stakeholders when they are available. OTHER BUSINESS OPEN BOARD DISCUSSION – Mike Sollenberger said current plans have 9,000 new students enrolling in Colorado State University over the next five years. This wave will have a major impact on the availability of lower priced housing, and he would like to see an impact analysis on affordable housing of increased enrollment. Joe Frank said he could invite a CSU representative to make a presentation on the student housing plan at the next Board meeting. He also pointed out that a couple of thousand beds for students are already in the development pipeline. Ben Blonder said CSU understands the impact increased enrollment will have on vacancy rates. Dan Byers suggested the Board send a memo to City Council to applaud them for proclaiming April Fair Housing Month, to keep the issue in front of them. Ben Blonder said that he has had good response to emails he has sent to the Mayor and Councilmembers. Dan Byers asked about the annual review questionnaire Joe Frank sent in the Board’s meeting packet. Frank explained that there needs to be just one response from the Board to be forwarded to City Council for its July 24 work session, so it should be discussed at the May meeting. Mike Sollenberger asked if the Board could receive the questionnaire in a fillable pdf format to do their homework before the next meeting. Frank will send it. Ben Blonder said he will compile all the responses into one after the discussion in May. PROVINCETOWNE SUBCOMMITTEE REPORT – Troy Jones said the subcommittee had come up with three options for the City to address the current situation with deed restrictions in the Provincetown subdivision, and they would like to take the temperature of the Board on each: a. Keep the provisions as is and enforce the covenants that require only owner occupants. The staff time and effort involved is why it hasn’t been enforced to date. It’s supposed to be self-regulating, but the City can’t afford to be in the business of tracking sales and subleases. b. Lift the covenants and walk away. Joe Frank said this would require action by City Council, but board members disagreed on whether market forces would keep the homes affordable for the target market. c. City retains right of first refusal on any sales. It could buy the home and flip it to CARE Housing or another organization or individual that can afford to hold it until a buyer eligible under the covenants emerges. This would put the City in the position of being a temporary landlord. Joe Frank said he would follow up with the City Attorney to explore the implications. Jeff Johnson said the CARE Board is already interested in reaching out to the Housing Authority to discuss the idea. Troy Jones said the advantage of this option is that the City can make sure the home stays owner occupied. Karen Miller pointed out that the subdivision is now less than 50 percent owner occupied and properties have become unwarrantable for both FHA and conventional loans, making it harder to qualify as well as pushing up interest rates. Ben Blonder said the immediate priority should be to get the subdivision warrantable again. This will require more cooperation from the Provincetown HOA to determine exactly how many homes are currently owner occupied. While the City has worked with the homeowner whose difficulties selling her house brought the issue to light, Blonder added that he will do further research on the exact status of that property. Mike Sollenberger said he is very against allowing an investor to put it on the rental market because it will deplete the affordable housing stock. Jeff Johnson pointed out that capping the price that the homeowner can sell the home for keeps the homeowner from receiving the wealth-building benefits of homeownership. Sollenberger said that affordability should trump capital appreciation, otherwise Fort Collins will become like Boulder, with no affordable housing within the City limits. He said as long as buyers are getting help from the City, they should follow the City’s rules. Johnson said the current rules create an exit strategy problem, and the City can’t control the market and whether people prefer to rent or own. Jeff Johnson said the subcommittee would like to set up a meeting with the Colorado Housing Finance Assistance Authority and the state Division of Housing in Denver to learn how other communities have dealt with similar issues. They would report back to the full Board at the next meeting. Joe Frank said City Council is also looking forward to input from the Board on this issue. Dan Byers also asked for a clarification of HUD rules on income restrictions on home sales, a requirement lifted by Fort Collins in 2008 but Wayne Thompson reports are still in place in Loveland. FUTURE MEETING AGENDAS At the May 3 meeting, the board will discuss:  CSU Student Housing Plan.  Annual Review questionnaire.  Revisions to Board bylaws.  FCHA fee waiver.  Report on Denver meeting.  Clarification on HUD rules on income restrictions on homeownership. At some future meeting, the board would like to:  Hear a report on the Land Bank program.  Review the effects of the City’s Green Building Code on housing affordability.  Discuss outreach to Fort Collins Housing Authority on alternative models of ownership for mobile home parks and residents. -- Meeting adjourned at 5:35 p.m. by Chair Dan Byers. --