HomeMy WebLinkAboutAffordable Housing Board - Minutes - 09/18/2003CITY OF FORT COLLINS
AFFORDABLE HOUSING BOARD
MEETING MINUTES
281 N. College Ave.
Fort Collins, Colorado
SPECIAL COMPETITIVE PROCESS APPLICATION REVIEW
September 18, 2003
4-6p.m.
Kay Rios, Chair
Isabel Garity, Vice Chair
Ken Waido, Staff Liaison, 970-221-6753
Marty Tharp, City Council liaison, 970-484-5711
Board Members Present: Kay Rios, Jon Fairchild, Isabel Garity, Joe Herbert,
Jane Phelan, Adrienne Pic, Denise Rogers, Jeff Taylor, Peter Tippett.
Advance Planning Staff Present: Ken Waido, Maurice Head, Julie Smith, Heidi
Phelps
Council Members Present: none
Kay Rios called the meeting to order with a quorum present at 4:05 p.m.
FALL COMPETITIVE PROCESS APPLICATION RECOMMENDATIONS
The purpose of the meeting was to make recommendations to the
Community Development Block Grant Commission on applications for project
funding for the current cycle. The Affordable Housing Board ranks projects by
priority, but makes no recommendations regarding the amount of funding
projects should receive.
With the full Board present and eight members voting -- Jon Fairchild
abstained -- the eight applications were ranked as follows:
1. HO-1: Home Buyer Assistance Program
2. HO-7: Habitat for Humanity Multi -Family Partnership
3. (tie) LB-1: Land Bank Interstate Land Site
3. (tie) HO-8: Habitat for Humanity Land Acquisition
4. HO-3: Fort Collins Housing Authority SRO Rehab
5. HO-4: Neighber-to-Neighbor 8-Plex
6. LB-2: Land Bank General Application
7. HO-6: Paradigm Real Estate - Lakeside Village at Rigden Farm
The Board did not recommend any projects be eliminated from consideration
for funding. CARE Housing withdrew its application for funding for property
acquisition from this round of the process.
Discussion
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For this round of funding, a total of $2,879,439 is available; requests total
$4,248,565. In general, given the recent budget cuts, the Board would prefer
funding of projects with deferred loans rather than grants or declining
balance loans that are forgiven. The Board would also like to see the Fort
Collins Housing Corporation (FCHC) develop its own reserve funds to be used
for, rehabilitation and maintenance of its properties, if possible.
1. HO-1: Home Buyer Assistance Program is administered by the
Advance Planning Department and provides zero -interest loans to
eligible first-time homebuyers. At approximately 60 percent
homeownership, Fort Collins is currently below the HUD national goal
of 67 percent, due in part to the large number of student renters. Of
the more than 700 loans made over the life of this program, less than
300 are still active, indicating a good turnover.
2. HO-7: Habitat for Humanity Multi -Family Partnership is a joint
venture between Habitat and the owner of the development; Habitat's
27 units would be affordable at 50 percent and below AMI and the for -
profit partner units affordable at 80 percent AMI. This would ensure a
three- to four-year supply of lots for Habitat; affordability is
maintained through deed restrictions. The funds requested would be
used in part for land acquisition and in part for infrastructure
improvements. The loan would be due on sale. There is no information
on the planned mix of size of units. This is the first multifamily project
for Habitat in Fort Collins, although it follows a model in use around
the country. The partnership with Stonebridge Properties LLC provides
access to required expertise for the infrastructure improvements.
3. (tie) LB-1: Land Bank Interstate Land Site requests the balance of
funds needed to purchase a portion of the Interstate Land Property,
zoned LMN and currently going through the City's development review
process. The 8.3 acres are contained within the 176-acre development
on the northwest corner of Prospect Road and I-25 within the city
limits.
(tie) HO-8: Habitat for Humanity Land Acquisition is requesting
funds to acquire four new lots, yet to be identified, to provide
homeownership opportunities for families at or below 50 percent AMI.
These two applications generated the most discussion, with the Board
evenly split over which should have higher priority. On the one hand,
the Land Bank has an immediate, site -specific need for funding while
Habitat is still actively searching for properties, and if Habitat were to
receive partial funding, it could still more forward with the project, just
on a smaller scale. On the other hand, the Land Bank will be holding
the land for a much longer term and not addressing immediate
housing needs. Both are worthy of funding, in the Board's opinion,
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Sept. 18, 2003 Minutes
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especially in light of the Land Bank Program receiving no funding in
the upcoming City budget.
4. HO-3: Fort Collins Housing Authority SRO Rehab project involves
replacing a number of Housing Quality Standards items for the Myrtle
Street Single Room Occupancy Building, which is home to 15
individuals at risk of becoming homeless. The application includes
refinancing the existing loans to ensure long-term affordability. Board
members felt strongly that this project should receive funding,
because it serves the most vulnerable population in the community.
There was concern that the Board should not be funding transitional
housing; however, by definition, this project provides housing for
extremely low-income individuals with few alternatives. Staff also
clarified that none of this funding will be used to provide counseling
program support, and it is not an institutional setting. The property
currently receives a subsidy from HUD, but if that subsidy is
withdrawn, the project may not be able to support the current
mortgage loan balance without the refinancing portion of the
application. In That case, residents will become homeless. The Board
raised the question of what happens to the refinancing money if the
HUD subsidy continues, since the application does not address that
issue.
5. HO-4: Neighbor -to -Neighbor 8-Plex is a request for funds to
purchase a property at 1041 Ponderosa in Fort Collins. The units will
be converted to rents affordable at 30-40 percent AMI. The backyard
adjoins two other N2N properties, which allows for an efficient
economy of scale for property management and maintenance. The
limited number of units prevents excessive concentration. There was
concern over the size of the development fee, which staff said was
within allowable parameters.
6. LB-2: Land Bank General Application requests funds to purchase a
Land Bank site that has not been identified. Current Land bank
holdings of 30 acres in three parcels will yields approximately 300-320
future affordable housing units. While the Board supports the Land
Bank program, and would like to see funding for it restored to the City
budget, the feeling was that the limited funds available at this time
should be allocated to other projects first.
7. HO-6: Paradigm Real Estate Partners - Lakeside Village at
Rigden Farm requests funds for the acquisition of land to build 44
single-family homes targeted to first-time homebuyers. All units within
this first phase will be assisted with public funds and sold to qualified
applicants earning no more than 80 percent AMI. Home values will be
protected and maintained as affordable through limiting price
appreciation to 4 percent per year or less. The Board was concerned
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about the lack of a market analysis, high per -unit cost and the size of
the development fee included in the proposal, and would definitely
want to see a deferred loan rather than a declining balance. This is not
a bad project, in the Board's opinion, but current limited funds should
be spent elsewhere to be most effective. The Board would be happy to
see this project again during another funding cycle.
Isabel Garity thanked staff for the thorough research conducted on the
applications and responsiveness to Board questions. Kay Rios will present the
Board's recommendations to the CDBG Commission on September 25, 2003,
at 5:45 p.m.
Meeting adjourned 5:30 p.m.
Respectfully submitted by
Kate Jeracki
September 19, 2003