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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 02/05/2004CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES 281 N. College Ave. Fort Collins, Colorado February 5, 2004 4-6p.m. Kay Rios, Chair Isabel Garity, Vice Chair Ken Waldo, Staff Liaison, 970-221-6753 Marty Tharp, City Council Liaison, 970-484-5711 Board Members Present: Kay Rios, Isabel Garity, Jon Fairchild, Jane Phelan and Peter Tippett. Denise Rogers was excused. Advance Planning Staff Present: Ken Waido, Maurice Head Council Members Present: None Guests: Felix Lee, Director of Building and Zoning, City of Fort Collins; Bob Larson, prospective board member Kay Rios called the meeting to order with a quorum present at 4 p.m. There was no open public discussion. New Busin Minutes The minutes of January 8, 2004, were corrected in the third paragraph on page 3, under IRC presentation. The following was added as the third sentence: This exemption would be available for up to two years after the code takes effect. The minutes were unanimously accepted as amended on a motion by Isabel Garity, seconded by Peter Tippett. International Residential Code (IRC) Felix Lee, Director of the Building and Zoning Department, returned with answers to specific questions and concerns from the Board and Councilwoman Marty Tharp on the proposed updates to the City's Building Code. Ms. Tharp had submitted three questions: How many people will not qualify to buy a house if we increase the costs for radon and energy conservation as proposed? Can we figure out a way to mitigate the increased costs for low-income families who are buying low-cost housing, or can we exempt low-income housing from these added costs? And how many houses would be affected by such an exemption? Fort Collins Affordable Housing Board February 5, 2004 Minutes Page 2 of 4 While the question of qualification is complex -- Peter Tippett suggested that the roughly $50 increase in monthly mortgage payments that can be attributed to the code changes would be more of a deterrent of borrowers than lenders -- in the final staff analysis, roughly 46 of the 92 households receiving down payment assistance in 2003 were at their debt limit and would not be able to take on additional debt. Felix Lee explained a proposed exemption for home of 1600 square feet or less from the need for additional insulation, which would save about $2,600 to $4,500 or cut the increased costs by about 40 percent for an affordable unit. In 2003, building permits were issued for 235 single-family detached and attached units that were less than 1500 square feet, or 24 percent of all single-family units. Felix Lee added that the average size of homes built in Fort Collins in 2003 was 2100 square feet. Isabel Garity said in general she was opposed to lowering standards to achieve affordability. However, Felix Lee pointed out that smaller homes do not require as much insulation as larger homes, which use more energy. Most of a home's heat loss is through the windows, and smaller homes will still be required to use R-3 windows with a solar filter. Energy savings will still be significant, about 15 percent over current code requirements, for smaller homes. The Board felt this would be a reasonable compromise. In response to a question from Jon Fairchild, Felix Lee said that contrary to the advice of some heating contractors, the new HVAC requirements for sealed ducts and testing are a safety issue, not just one of comfort. Improper ducting and sealing creates the potential for dangerous down -drafting the furnace, and the current City codes on the issue are actually substandard. The subject of radon mitigation was discussed at length. While the Board agreed that installing a system at construction was much less expensive than retrofitting to mitigate radon to the EPA -recommended level of 4 picocuries/liter of air, some members felt the cost of requiring an entire passive system, estimated at $1000, could be an unnecessary expense in some homes and would adversely affect affordability. The problem is that the testing protocol requires radon to be measured while the home is occupied, under winter conditions, and local geology and building styles suggests a high probability of most homes requiring some kind of radon mitigation. By consensus, the Board decided to recommend Option 2, which requires a passive radon reduction system in new homes, as recommended by staff. However, members also found Option 8, which would require sub -slab preparation to allow soil gasses to pass freely under the slab, attractive as a minimal alternative that would assure that every home could be successfully mitigated after construction without committing to the initial expense. The difference in monthly payments between the two options would be about $5 per month over a 20-year mortgage. Fort Collins Affordable Housing Board February 5, 2004 Minutes Page 3 of 4 Jon Fairchild expressed his appreciation for Councilwoman Tharp bringing forward the questions on the impact of radon and the energy conservation costs being added to new construction with the new IRC. The Policy Subcommittee will draft a formal recommendation on the proposed changes to the City Building Code and circulate it by e-mail to the entire Board for comments. It will be forwarded to City Council in time for its March 2 meeting, at which the IRC is to be considered. Priority Affordable Housing Needs and Strategies The final draft of the report was delivered to all board members. Maurice Head asked that comments and concerns be e-mailed to him before City Council's March 9 study session, where the report will be discussed. Ton Fairchild and Isabel Garity volunteered to represent the Affordable Housing Board at the March 9 Council study session. Maurice Head will provide a final draft incorporating any changes requested by Council at the study session to the Board for review prior to final adoption. Pending Bills/Mobile Home Parks and Right of First Refusal Ken Waido reported that City Council's Legislative Review Committee and Legislative Liaison Mark Radke are taking an active role in supporting both of these bills (HB 1160 and SB 89) that would give mobile home owners right of first refusal if the mobile home park owner wants to sell the property. Cif Plan Update Ken Waido reported that staff had presented comments on the final City Plan draft to City Council at a study session on Jan. 13. In the report, staff categorized all the comments/suggested changes into 3 groups: "green" comments were those that staff believed were minor in nature and would be made in the final document; "blue" comments were those that staff believed Council had previously given direction on, through the adopted City Plan characteristics, and changes would not be made; and "red" comments were those that staff needed direction from the Council in order to prepare the final document. At the study session, staff received direction on the "red" and some "blue" comments that Council members had pulled for discussion, but there was not time to adequately cover the pulled "green" comments. Staff is following up to determine the exact nature of Council's concerns about the green comments, and will provide clarification when possible. If the Council feels further discussion of the remaining comments is necessary, a study session is scheduled for March 9. If Council determines the study session is not needed, staff is ready to prepare the necessary Fort Collins Affordable Housing Board February 5, 2004 Minutes Page 4 of 4 materials for Council to adopt the updated City Plan document. The earliest that could happen would likely be March 16. If the March 9 study session is held, then the earliest date the Council could consider adoption of City Plan would likely be April 6. Ken Waido will provide Kay Rios a copy of the comments presented to City Council. Kay will in turn report to the Board. Sales Tax Revenue Review Ken Waido reported that revenues are up slightly, pending final year-end figures. Isabel Garity added that any additional money collected is most likely earmarked for additional police funding rather than affordable housing or other priorities. Old Business Update/Reports on Subcommittee Efforts None. Liaison Reports None. Election of Officers Jon Fairchild nominated Kay Rios as chair and Isabel Garity as vice -chair. Seconded by Jane Phelan. Election of officers was unanimous. Open Board Discussion Ken Waido reported on a study by The Group real estate firm that has been tracking identical "typical" homes in Fort Collins, Greeley and Boulder since they were originally built in the late 1960s. Today, the Fort Collins house is valued at $175,000; in Greeley, $142,000, and in Boulder, $343,000. According to Larry Kendall of The Group, in the past, Fort Collins prices have lagged behind Boulder by about 10 years, and Greeley has lagged behind Fort Collins by 7 years. Indications are that the gap is narrowing, so that Fort Collins is only 7 years behind Boulder and Greeley only 2 years behind Fort Collins. Therefore, by the year 2010, the "typical" home in Fort Collins is expected to cost $300,000 or more. Meeting called on account of darkness and adjourned at 5:30 p.m. Respectfully submitted by Kate Jeracki February 16, 2004