HomeMy WebLinkAboutAffordable Housing Board - Minutes - 03/03/2022AFFORDABLE HOUSING BOARD
REGULAR MEETING
3 /3/202 2 – MINUTES Page 1
March 3, 2022, 4:00-6:00pm
Remote/Online via Zoom due to COVID-19
CALL TO ORDER
At 4:02 PM the meeting was called to order by Tatiana Zentner
1. ROLL CALL
• Board Members Present: Tatiana Zentner, John Singleton, Kristin Fritz, Bob Pawlikowski, Seth Forwood
and Stefanie Berganini joined in progress.
• Board Members Absent: Jennifer Bray
• Staff Members Present:
▪ Sue Beck-Ferkiss, Staff Liaison – City of Fort Collins
▪ Taylor Reynolds, Minutes – City of Fort Collins
• Guests Present:
▪ Ryan Jones, RCH Jones Consulting
▪ Michele Christensen & Traci McGraw, Housing Catalyst
2. AGENDA REVIEW – Ryan Jones will be presenting before Michele Christensen and Traci McGraw. Also, Sue Beck-
Ferkiss has additional updates on the Housing Strategic Plan.
3. CITIZEN PARTICIPATION – Marilyn Heller from the League of Women Voters Affordable Housing Team announced
a panel titled “Housing Insecurity: A Threat to Behavioral Health?” on Monday, April 11 at 7:00 p.m. via Zoom.
• Panelists include Rep. Dylan Roberts, CO dist. 26 from Affordable Housing Task Force; Rep. Jody Amable,
CO dist. 13 discussing Behavioral Health Task Force recommendations; Gia Heflin, Lead Housing
Counselor with Neighbor to Neighbor; Stephanie Madsen-Pixler, Dir. Community Based Services,
SummitStone; and Kayleigh Harris, Peer Specialist at SummitStone.
• Online registration is recommended as attendees will be provided handouts with additional information.
4. APPROVAL OF MINUTES
Bob Pawlikowski moved to approve February minutes. Stefanie Berganini seconded.
Approved 6-0.
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5. NEW BUSINESS
• Affordable Housing 101
• Low-Income Housing Tax Credits Financing – Ryan Jones, RCH Jones Consulting
• There are three ways in which the federal government supports housing:
mortgage interest deduction, HUD Section 8, and Low-Income Housing Tax
Credits (LIHTC). LIHTC is a form of equity (rather than a subsidy) and was created
in Section 42 of the IRS Code.
• LIHTC are a dollar-for-dollar reduction in federal tax liability over a 10-year
period. They are the primary way for funding affordable rental housing and allow
investors to purchase the project for less than their actual value.
• DISCUSSION:
• What is the impact of 88 cents to 90 cents on the dollar for a deal?
• For a $10 million dollar basis on an affordable housing project, the
rate for the LIHTC could mean the difference between $8.8 million
and $9 million or $200,000.
• What impacts the pricing of LIHTC?
• Tax reform and policy are examples of changes that can either
encourage or deter businesses from investing in LIHTC. Low
corporate tax rates often mean that affordable housing developers
must acquire more soft funding such as local, state, or CDBG dollars.
• The health of the economy, locally and nationally, also greatly
impacts the demand for LIHTC: a thriving economy will increase the
demand for credits.
• What is an ideal debt to equity ratio for affordable housing projects?
• The ideal debt to equity ratio for affordable housing varies because
it’s a very dynamic process. The 9% tax credits were designed to fund
70% of the capital stack whereas the 4% tax credits were intended to
fund 30% of the capital stack and must be paired with a private
activity bond. Of those two, 4% tax credits are typically ideal.
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• Housing Choice Vouchers – Michele Christensen (Chief Operating Officer) and Traci McGraw
(Director of Housing Assistance Programs) from Housing Catalyst
• The U.S. Congress appropriates the funding allotted to the U.S. Department of
Housing and Urban Development (HUD) which in terms creates an annual
contribution contract and distributes funds to housing authorities like Housing
Catalyst.
• Housing Catalyst administers 10 different types of vouchers including:
• Emergency Housing Vouchers
• Family Unification Program & Foster Youth to Independence
• Frequent User System Engagement
• Homeownership
• Mainstream Vouchers
• Non-Elderly Disabled
• Project Based Vouchers
• Tenant Protection Vouchers
• Veterans Affairs Supportive Housing
• Housing Choice Vouchers
• DISCUSSION:
• What percentage of affordable housing is provided by Housing Catalyst in Fort
Collins?
• While the percent is unknown, there are 12,000 units and 1,400+
vouchers available in Fort Collins through Housing Catalyst.
• How many project-based vouchers are offered in Fort Collins?
• Housing Catalyst supports approximately 350 project-based
vouchers. This is a voucher that is assigned to a unit and is not
transferrable if a person/family moves out. It’s assigned to the unit
for 20 years.
• Which voucher is more effective: housing choice or project-based vouchers?
• Both types of vouchers are necessary. Some individuals or families
benefit from a project-based voucher so that they can quickly move
into a safe, stable home. Other voucher holders prefer the housing
choice vouchers because it provides some freedom and can be used
throughout the US to reunite with family or relocate for work.
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• Is Housing Catalyst the sole provider for housing vouchers in Fort Collins?
• The State Division of Housing is also a housing authority and
contracts with SummitStone and Foothills Gateway to distribute
vouchers throughout the entire state.
• What is the wait time for receiving a housing voucher?
• There are several wait lists. For example, the project-based vouchers
can be up to a 5 year wait. Housing choice voucher selection opens as
a lottery approximately every 24 months and can be a 2-3 year wait.
• What is the typical income of a voucher holder?
• Majority of voucher holders fall between 30-50% AMI or “very low
income”.
• How do you determine the number of Emergency Housing Vouchers offered?
• In 2021, Housing Catalyst was allotted 25 Emergency Housing
vouchers and receives referrals from the Northern Colorado
Continuum of Care to distribute them.
• Does Housing Catalyst foresee an increase in Emergency Housing Vouchers?
• Biden’s Build Back Better bill allotted Housing Catalyst 25 Emergency
Housing vouchers that must be distributed by 2024. There could be
many families who become vulnerable after these vouchers expire.
Future support for this program will depend on the bills sent forth to
Congress.
• What is the process for applying for a housing voucher?
• The availability of vouchers depends on the type of vouchers. Some
require application through a competitive process for example,
others are provided by HUD. Housing Catalysts is always evaluating
new funding opportunities to provide as much support to the
community as possible.
• Are rental prices rising to match increasing voucher amounts?
• In the current market, the value of rent is going to be more than the
voucher amount.
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• What would happen if the government funding for housing vouchers disappears?
• The housing vouchers program is nationwide and if it disappeared
millions of families would be out of their homes overnight. The
consequences of eliminating that funding are severe and, therefore,
not likely to be dismantled.
• What does Housing Catalyst’s 68% utilization rate represent?
• The utilization rate represents the number of vouchers allotted to
Housing Catalyst vs the number of families who have secured housing
(many may be in the process of looking). The process of working with
HUD, the Northern Colorado Continuum of Care, and voucher holders
to search for housing can take months. The average utilization rate
for housing authorities statewide is 12.8% percent because of the
complexity of the process.
• How has the establishment of the Northern Colorado Continuum of Care changed
the availability and distribution of housing vouchers?
• It has allowed Housing Catalyst to secure more funding from
foundations and other grants and more easily prioritize the needs of
Northern Colorado.
6. Housing Strategic Plan – Sue Beck-Ferkiss
• Land Use Code Update
• Board members will plan to discuss the Land Use Code (LUC) Diagnostic Report at an upcoming
meeting.
• 2021 International Building Code and Energy Conservation Update
• Sue presented an overview of the building code updates adopted by City Council on first reading
February 15, 2022. The updates were based on the 2021 International Building Code and Energy
Conservation Code (IBC). At that time, City Council also requested additional information
specifically about how electric vehicle (EV) charging requirements would affect affordable
housing and City staff provided three alternative options to the IBC code.
• 2021 IBC Reference: 10% EV installed, 20% EV ready, 40% EV capable
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• Alternative Options for Affordable Housing:
• Option 1 – 10% EV Capable
• Option 2 – 10% EV Capable + 10% EV Ready
• Option 3 – 10% EV Capable + 10% EV Ready + One EVSE Installed
• DISCUSSION:
• Is there risk to making affordable housing EV capable and/or ready when we cannot anticipate
how this technology will change 10 years or more into the future?
• It is hard to plan for obsolescence and that is why these codes are updated about
every 2-3 years. EV conduits would be less intensive to development than other
options.
• Are there funds for the City to subsidize the costs of EV charging options?
• There are not any funds available yet, just subsidy programs. The City has entered
the budgeting cycle for 2023-2024 and could see funds allotted for this purpose.
• ACTION:
The Affordable Housing Board thanks Council for considering alternatives to the IBC 2021 EV requirements in
order to facilitate the development of more affordable housing units. Providing lower standards for affordable
housing projects, which each of the staff options represented, removes a potential barrier to creating more
affordable housing.
Motion by Stefanie Berganini. Seconded by Seth Forwood. Approved 6-0.
• Occupancy and Rental Programming
• The Rental Licensing Task Force is still staffing up. Several landlords have joined to provide
input, but the team is still looking for renters who would be interested in participating.
Those interested can apply at www.fcgov.com/housing
7. Board Member Ideas
• Park Lane Mobile Home Park
• Board members discussed the ways in which they can support Park Lane with the goal of
becoming tenant owned. This mobile home community remains outside of City limits, and
therefore cannot receive City funds or apply for grants through the Competitive Process.
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• ACTION:
• The board will consider sending representatives to a regularly scheduled City Council
meeting to speak about preservation of mobile home parks as they provide naturally
occurring affordable housing during public comment.
John Singleton moved to support Stefanie Berganini to provide generalized language for an official
board position in their request to City Council to support the Park Lane Mobile Home Park.
Tatiana Zentner seconded. Approved 5-0.
• Stefanie Berganini offered generalized language to present to City Council on behalf of the
Affordable Housing Board during public comment.
Stefanie Berganini moved to present to City Council the Affordable Housing Board’s official position
regarding the Park Lane Mobile Home Park development using the generalized language as
presented. John Singleton seconded. Approved 5-0.
8. BOARD MEMBER REPORTS
9. OTHER BUSINESS – NOT DISCUSSED
• City Council 6-month planning calendar review
• Council Comments – Who, what?
• Review 2022 Work Plan
• Update on Affordable Housing Projects
• Future AHB Meetings Agenda
10. ADJOURNMENT
Meeting adjourned at 6:30 PM
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