HomeMy WebLinkAboutAffordable Housing Board - Minutes - 09/20/2012CITY OF FORT COLLINS
AFFORDABLE HOUSING BOARD
MINUTES
SPECIAL BOARD MEETING
281 N. College Ave.
Fort Collins, Colorado
Sept. 20, 2012
4 to 6 p.m.
Chair: Dan Byers
Staff Liaison: Ken Waido 970-221-6753
City Council Liaison: Lisa Poppaw
Board Members present: Dan Byers, Jeff Johnson Troy Jones, Mike Sollenberger,
Wayne Thompson
Board Members absent: Ben Blonder, Karen Miller
Staff present: Ken Waido
Council Members present: None
Other Staff present: Chadrick Martinez, Executive Director, Fort Collins Housing
Authority; Kristin Fritz, Senior Project Manager, Fort Collins Housing Authority; Kate
Jeracki, Note Taker
Guests: Marilyn Heller, League of Women Voters
Meeting called to order with a quorum present at 4:15 p.m. by Chair Dan Byers
AGENDA REVIEW
No changes.
PUBLIC COMMENT
No public comment.
NEW BUSINESS
Dan Byers announced that Ben Blonder has resigned from the Affordable Housing
Board. In addition, Mike Sollenberger and Wayne Thompson are both coming to the end
of their terms in December and have indicated to Ken Waido that they do not intend to
seek reappointment. Ken asked Board members to help with recruitment of new
members.
2
PRIORITY RANKING OF AFFORDABLE HOUSING PROPOSALS
Ken Waido reviewed the six applications for Affordable Housing funds have been
received for the Fall Cycle of the Competitive Process. The Board discussed each
request, then assigned priority ranking for recommendations to the Community
Development Block Grant Commission. Jeff Johnson recused himself from the
discussion because of a conflict of interest; he sits on the board of Funding Partners,
which is involved in request HO-6.
HO-1 -- $50,000 grant from the Affordable Housing Fund for the City of Fort Collins
Homebuyer Assistance Program
HO-2 -- $50,000 grant from HOME funds for the City of Fort Collins Homebuyer
Assistance Program
The overall program funding is anticipated to serve a minimum of 42 households earning
less than 80 percent of Area Median Income with loans of up to 6 percent of a home’s
purchase price – up to $10,000 – for downpayment and closing costs. AHF monies
provide the City’s portion of the funding match for CDBG loans; HOME funds provide
the required federal match. Funds paid back from loans to homeowners are returned to
general Competitive Process coffers.
HO-3 – $156,240 grant from HOME funds for the Fort Collins Housing Authority’s
Tenant-Based Rental Assistance CDDT program
HO-4 – $17,434 grant from the Affordable Housing Fund for administrative support for
Fort Collins Housing Authority’s Tenant-Based Rental Assistance for CDDT program
HO-3 is for the rental assistance component of the Community Dual Disorders Team’s
program to support chronically homeless people. The amount requested would provide
fro 24 months of rental and deposit assistance for up to 10 individuals suffering from
both severe mental illness and a severe substance abuse disorder. Such assistance is
eligible for HOME funding only. HO-4 is to support administrative functions of the
program — eligibility, compliance, coaching, housing search. Lease negotiations,
housing retention and re-housing issues. HO-4 could be covered by HOME or CDBG
funds, but there is no current funding available in those budgets, so the funding must
come from the AHF.
HO-5 -- $75,000 grant from the Affordable Housing Fund for the Larimer Home
Improvement Program (LaHIP)
LaHIP is administered by the Loveland Housing Authority and provides low- and no-
interest loans to county homeowners – including within the city limits of Fort Collins – to
address health, safety and energy-efficiency repairs to their homes. The program is
available to families earning no more than 80 percent AMI, but the average participant is
closer to 50 percent. The Emergency Funds Program provides a one-time-only grant of
up to $1,000 to very low-income families – 50 percent AMI or below – for emergency
3
repair needs. The amount requested will match the larger state DOH grant for housing
rehabilitation. Request components are $42,500 for rehab for an estimated three
households; $25,000 for emergency repairs for an estimated 25 households; $7,500 for
program administration. Repaid loans are returned to the program; fund must come from
the AHF.
HO-6 – $1,072,081 loan to Villages Ltd. For Property Acquisition: Phase 1
This request from the nonprofit development arm of the Fort Collins Housing Authority
seeks to provide partial financing for the purchase of 284 affordable rental units at risk of
converting to market rate rents. The amount requested is 5 percent of the total purchase
price of $21,456,215 for three adjacent properties at the northeast corner of Horsetooth
Road and Shields Street which serve households between 45 percent and 80 percent of
AMI. The applicant has secured significant commitments for other financial layering of
the project, which must close by Dec. 15. Purchase of the property will extend
affordability of units to 2043.
Chadrick Martinez of the Fort Collins Housing Authority explained that HO-6, the
Villages project, is being underwritten by First Bank and Funding Partners. Villages has
also applied for a $2 million grant from the Colorado Division of Housing for the first
phase of the project. Phase II will be the tax credit phase, in which the nonprofit will take
out short-term – 12-24 month – debt for rehabilitation of the units.
Dan Byers asked if the financing should fall through on the acquisition, would the units
go to market rate rentals? Ken Waido said yes.
Martinez explained that the current owner’s 15-year tax credits are expiring at the end of
the year. The Villages represents 15 percent of the City’s tax-credit portfolio and has
since the early 1990s. If they were to go to market rates, it would take 10-15 years to
replace 60-80 units at a time, and longer than 2 years to approve a deal, and another 15
years to get back to where we are right now. He added that the property is worth keeping
affordable, given the number of units in one spot, but some components are at the end of
their useful life and will require $20,000 to $30,000 per unit to rehab. The location has
passed all HUD-required environmental reviews, and FirstBank is not requiring any
additional. Full funding of the amount requested is required because of the many pieces
of the financial puzzle that need to fit together, Martinez said. If they don’t make the
closing, the deal’s off the table.
Mike Sollenberger said this was the most exciting opportunity to retain and expand the
city’s affordable housing base he has seen and offered kudos to Martinez. He asked if
there was enough money to fund all of the projects fully. Ken Waido said that all of the
housing projects could be funded, but the CDBG has an additional $680,000 in requests
for four additional proposals – three for Public Facilities and one for Economic
Development – in the Fall Cycle.
4
After discussion, the Affordable Housing Board gave the proposals the following
ranking:
1. HO-6; recommended full funding
2. HO-3 and HO-4; partial funding acceptable
3. HO-1 and HO-2; partial funding acceptable
4. HO-5; partial funding acceptable
Dan Byers felt they were all good programs, and asked Boardmembers for comments on
the rankings to share with the CDBG Commission at its meeting on Oct. 11. HO-6 was
the obvious first choice, and the Board felt it should be fully funded even if other
proposals were not. Wayne Thompson pointed out that it keeps a huge number of units
affordable, units that would take a decade and a half to replace.
Troy Jones said HO-3 and HO-4 are important because of the very-low income
population served. Ken Waido added that it is part of the city’s effort to break the cycle
of homelessness.
Wayne Thompson said it seemed that HO-3 and 4 spend a lot of money to help 10
people, and HO-1 and 2 provided more bang for the buck. Ken said he expects demand
for homebuyer’s assistance will pick up soon, now that the City has hired someone to
administer the program.
Mike Sollenberger thought HO-5 should be a lower priority because the people served
are already in a home. Wayne Thompson felt that it was something that could help people
stay in their homes by addressing safety and quality of life issues.
IMPLEMENTATION ACTIONS FOR STUDENT HOUSING ACTION PLAN
PLAN
Given City Council’s fast track for implementation of portions of the plan, Dan Byers
asked the Board if they would like to send an immediate memo to Council outlining how
these changes would affect affordable housing as a whole. Ken Waido said Phase I
changes, including requiring an operations manual for any multifamily project to be made
available to the public, are set to be considered immediate; Phase II and III will be
considered at Council’s Oct. 23 worksession.
Kristin Fritz pointed out that the Planning and Zoning Board was scheduled to consider
Phase II items later this evening (Sept. 20). One of the specific issues is lowering the
limit on the number of units that trigger a Type II review, which requires public hearings
in front of P&Z, to 50 units or 75 bedrooms. According to the currently Land Use Code
such small projects are reviewed by a hearing officer only in a Type I review.
Jeff Johnson said limiting Type I reviews to projects with less than 50 units or 75
bedrooms was a real bad idea. He pointed out that it is already difficult enough to get
modifications for affordable housing projects. Chadrick Martinez added that elevating the
5
level of review provides another place for objections, and when affordable housing
projects ask for modifications, it raises more red flags. Mike Sollenberger agreed, saying
the entire Land Use Code does not need to be changed to address specific problem areas.
He also rejected the idea of defining “student housing” in the Land Use Code and then
restricting it in certain areas. Students can pay greater than market rents, which pushes all
rents up and has a direct impact on supply and demand.
Johnson was most concerned about the unpredictability of Type II reviews that can have
a direct negative impact on affordability across the board. A hearing officer can take the
time needed to review a project for code compliance and technical issues; decisions made
in public hearings can be based on subjective factors and complicated issues can be
difficult to articulate. The Type II process can also result in time delays that cause
developers to lose control of the property and/or financing opportunities, such as the
Villages project discussed earlier in the meeting. The sentiment was to leave the Land
Use Code unchanged.
Troy Jones moved that the Affordable Housing Board recommend against setting
the trigger point for a Type II review of multifamily housing projects at 50 units or
75 bedrooms. Mike Sollenberger seconded. Passed unanimously.
Dan Byers said another proposed change was to limit the number of four-bedroom units
to 25 percent; staff had recommended 30 percent. Troy Jones said that limiting the
number of four-bedroom apartments in new multifamily projects could create a shortage
of affordable units for families. Mike Sollenberger pointed out that developers who do
affordable housing and student projects concentrate on one- and two-bedroom units.
Wayne Thompson agreed with the 25 percent limit, and suggested letting Council know
the Board would be in favor of the change.
Troy Jones moved that the Affordable Housing Board recommend that a 25 percent
limit on the number of four-bedroom apartments in multifamily housing projects
seems reasonable but the limit should not be reduced below 25 percent. Mike
Sollenberger seconded. Passed unanimously.
Troy Jones will draft a memo to Council and circulate it by email for approval by the
Board. As soon as it is approved, Ken Waido will send it directly to Council. Kristin Fritz
added that the Housing Authority has also sent a memo to the Planning and Zoning
Board.
FUTURE MEETING AGENDAS
At the Oct. 4 meeting, the Board will discuss:
The Board’s Work Plan for 2013
Affordable Housing Redevelopment Displacement Mitigation Strategies
Student Housing Action Plan
Dan Byers will formally invite Lisa Poppaw to attend.
6
-- Meeting adjourned at 6:05 p.m. by Chair Dan Byers. --