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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 01/06/2000CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES January 6, 2000 Bob Browning, Chair (970) 225-0137 Kay Rios, Vice Chair Ken Waldo, Staff Liaison (970) 221-6753 Chuck Wanner, City Council Liaison (970) 484-0810 The meeting of the Affordable Housing Board was called to order by chairperson, Bob Browning, beginning at 4:00 p.m., at 281 North College Avenue, Fort Collins, Colorado. A quorum was present. Board members present included: Isabel Garity, Bruce Croissant, David Danforth, and Chris Martin. Staff members present: Ken Waido, Joe Frank, Maurice Head, and Melissa Visnic. Council liaison, Chuck Wanner, was present. Others present: Grace Harris; Lou Stitzel; Betty Maloney; Krista Moberly; Mickey Willis; Alan Krcmarik, City of Fort Collins Finance Director; and Rodger Hara, GMAC Commercial Mortgage. Open Public Discussion There was no public discussion. New Business Approval of the Minutes Minutes from the November meeting were not yet available. Mr. Croissant moved to approve the December meeting minutes. Mr. Martin seconded. Motion passed unanimously. Private Activity Bond Request Rodger Hara, of GMAC Commercial Mortgage requested the board's approval for the allocation of the City's 2000 Private Activity Bonds to the Fox Meadows Apartments project, located at the southeast comer of Horsetooth Road and Timberline Road. Out of the 138 units, 52 units would be affordable for families at 60% of AMI, 5 of the two -bedroom units at 50% of AMI, and 5 of the one -bedroom units at 40% AMI. The total project financing will be close to 10 million dollars, the balance will be pursued from Latimer County's private activity bond allocation and the Colorado Housing and Finance Authority (CHFA). They will also apply later this month for HOME and CDBG funds. Mr. Danforth referred to the memorandum in the board's packet from James Coil regarding the review of the Fox Meadow Apartments project. In it he stated that with the projects Affordable Housing Board January 6, 2000 Meeting Minutes Page 2 under construction and on the way, HUD does not recommend going above this level and has placed Fort Collins on the Market Watch list until the market can be evaluated later in the year. Mr. Hara said that with this project, Mr. Coil believes that the affordable housing needs in Fort Collins will have been met. Mr. Head clarified that this would meet the need at 60%, but there is still a need below that. Alan Krcmarik, the City of Fort Collins Finance Director, mentioned another Private Activity Bond request that he had just received from National Health Associates, a group in Florida, for an assisted living project. This proposal will be presented to the board at the February meeting. Mr. Browning asked for the City's position on the Fox Meadows application. Mr. Krcmarik said that the project fits the land use, they've checked the background of the developer and they have done several good projects. He believes that despite Mr. Coil's letter, there is still a need for affordable housing in Fort Collins and the City should continue to add to the supply. Mr. Browning questioned if it is reasonable to spend 5.3 million dollars of public money to get ten units at 50% and below. He also wondered what other applications may come in. Mr. Waido said that the goal is to assist at below 50%, but private activity bonds don't work well for projects below 50% of AMI, they work for families between 50 and 60%. Mr. Hara explained that even though this project doesn't have to compete in the statewide allocation, there is still a time constraint because the contractor's bid is only good for 60 days, there are only about 30 days left. Construction should start in April if all the funding comes through. Several of the board members would prefer to take more time to review this project and come to a decision at a later meeting. It was explained that there are several deadlines to be met and there isn't enough time for another meeting. Mr. Martin moved to support this project. Mr. Croissant seconded. Motion carried 3-2. Mr. Danforth questioned whether any other private activity bond projects could be considered now that the board has supported the Fox Meadows project. Mr. Krcmarik explained that in the past, the City has submitted more than the application limit and that any new project, such as the National Health Associates' project, could still apply and be funded. Affordable Housing Board January 6, 2000 Meeting Minutes Page 3 Governor's Policy on Affordable Housing Mr. Waido explained that City staff contacted the Colorado Division of Housing to obtain information concerning the Governor's Affordable Housing Policy. There is no official policy as yet. The Governor did mention affordable housing in his Opportunity Colorado speech and established a Colorado Dreams Program. Three specific strategies were mentioned: an ownership tax credit program for businesses, a low income housing tax credit for developers, and reduction in housing fees by local governments. Techniques for the Development / preservation of Affordable Housing (Inclusionary Zoning and Conservation Easements) Mr. Danforth explained that the governor has suggested that there could be use of deed restrictions on land to support conservation. Although this is not about affordable housing, there is a possibility that it could be used in that way. He believes this may accomplish the same result as land banking, for less money. Mr. Head explained that the intent of land banking is to recycle the money, sell that land at some point and reinvest that money into other land for affordable housing. Mr. Waido said that using an easement approach, a property owner would be paid a certain amount of money to put a deed restriction on their property that would require a percentage of the development to be affordable housing when they sell it. Mr. Waido pointed out that the City needs to provide incentives for a property owner to put a limitation on their property. Mr. Frank said that this may be an issue to have the consultants look at when the land banking study is done. Mr. Browning questioned the availability of land in Fort Collins. Mr. Frank explained that the cooperative planning area may be a targeted area. Mr. Head has been working on a discussion paper looking at set -aside programs. It looks at using inclusionary zoning techniques and a linkage program. Techniques used in other cities are being looked at and applied to the local area. This will be presented to the board at a later date. Affordable Housing Board January 6, 2000 Meeting Minutes Page 4 Old Business Follow -Up on the Proposed Nuisance Ordinance This item has been pushed back to March 31 on City Council's agenda. Ms. Garity referred to the memorandum written by Mr. Danforth. She would like to change some items: under item 1, she would like to take out the word supposed; leave out items 2a-2d, the quotes from residents; and would like to insert a more positive statement in the second to last paragraph; then be more specific in describing what the board would like in the last paragraph. Mr. Wanner encouraged the board to look at the most up-to-date version of the ordinance before making any recommendation. He explained that the current wording states that if an owner is willing to enter into an abatement agreement with the City and there are further problems, the City won't prosecute the owner. This is an attempt to get the owners involved. Mr. Waido will include background data, as well as the most current version of the ordinance in the next board packet and the item will be discussed again at the next meeting. Board's Work Plan Possibilities Mr. Waido distributed copies of the work plan sign-up sheet. The board would like more time to review this and sign up for work assignments at the next meeting. Other Business At the last meeting, Mr. Browning presented an example of a letter that would be used by the Mayor or City Manager to contact the owners of Section 8 properties and remind them that if they are interesting in selling the property, the City may be able to coordinate some non -profits to purchase the property. Mr. Wanner said it would be treated as a resolution. Mr. Waido said if the board agrees with the idea, they need to make a recommendation to City Council that they pass a resolution authorizing the Mayor or City Manager to contact these entities. Mr. Wanner asked that staff show him a draft before it goes to City Council. Mr. Waido will create a draft. Mr. Waido recommended contacting HUD and getting the timeline they operate under in order to send the letters before the deadline. Mr. Browning said that the letter could be sent once a year, regardless of when each contract expires. Mr. Waido updated the board on the competitive process. Staff has prepared a resolution that will go to the City Council on January 18, with a recommendation from both the Affordable Housing Board and the CDBG Commission to establish a competitive process. Affordable Housing Board January 6, 2000 Meeting Minutes Page 5 The first technical assistance workshop will be held January 24. Applications will be available January 13 and the deadline is February 24. Mr. Waido then discussed the Mobile Home Park Task Force that was formed with two subcommittees, one would focus on short term needs and the other on more long term activities. In regards to the short term subcommittee, Neighbor to Neighbor will survey residents of Harmony Park to determine those that may be eligible for CDBG and HOME assistance as well as identify households with immediate housing and other related concerns. Meeting adjourned at 5:45 p.m.