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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 08/05/19990 CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES August 5, 1999 Bob Browning, Chair (970) 225-0137 Kay Rios, Vice Chair Ken Waido, 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 Kay Rios, beginning at 4:05 p.m., at 281 North College Avenue, Fort Collins, Colorado. A quorum was present. Board members present included: Kay Rios, Mickey Willis, Bruce Croissant, David Danforth, Stacy Overton, and Chris Martin. Staff present: Joe Frank, Melissa Cordova. Council liaison present: Chuck Wanner. Others present: Charles Dehn, Harmony Park; Grace Harris, League of Women Voters; Chuck Powell, citizen. Welcome new board member Mr. Chris Martin has been appointed by the City Council as a new member of the Board. OLD BUSINESS Follow-Up/Comments on the May meeting's discussion of manufactured housing Mr. Danforth asked for clarification of a statement about manufactured housing made by Ann Watts in the May 6 meeting minutes, in the second paragraph on page two: "Ann Wafts stated that CDBG and HOME funds still require a 20 year guaranteed affordability." Mr. Frank clarified that she was referring to the use of funds for development projects, not down payment assistance. Mr. Danforth presented the information he received from the Manufactured Housing Institute to the Board of Directors of the Harmony Park Homeowners' Association, also to the residents of Harmony Park. Despite all the studies that show that manufactured housing is a good risk, the interest rates on loans are much higher. Kay Rios asked why that is the case. Stacy Overton explained that it's a higher risk, and they can't do a mortgage if it isn't on a foundation, so that it is an unsecured personal loan rather than a mortgage. The Manufactured Housing Institute advised Mr. Danforth that Freddie Mac is putting together a program with the same credit enhancements for manufactured housing that Fannie Mae provides for homes on a permanent foundation. This is not yet available, but is being put together. One of the bigger problems are lease stipulations. Affordable Housing Board August 5, 1999 Meeting Minutes Page 2 Mr. Danforth read a letter written to Mr. Stratton Smith, ARC Homes, on July 8, 1999, whereby he requested a copy of the ARC land lease agreement. No reply has been received as of yet. Charles Dehn, Head of Harmony Park Residents' Association presented information to the board. ARC has a rule that any homeowner of a home that is pre -HUD dated, that is 1976 or older, who sells their home must remove the home from the park. More than 40% of the homes in Harmony Park fall into this category, even though well kept up. Because of this, values in the park are diminishing. Mr. Dehn believes that ARC also owns some retail operations of new manufactured housing. He has some documentation showing that ARC management has been circumventing sales. They are discouraging buyers from buying the older homes and recommending they buy a new home. Ms. Rios would like to look into down payment assistance for manufactured housing if the current owner wanted to upgrade to a new model so that they could meet the standards of the park, or assistance with upgrading. Mr. Danforth recommended the original agenda which was that the City funds be held separate from the HOME/CDBG funds and make it possible to apply these funds to home buyer assistance for manufactured housing. Mr. Frank said the funds have to be kept separate because there is more flexibility with City funds vs. Federal funds. Mr. Willis suggested that the board review refinancing assistance. Ms. Rios would like to look into that idea. Mr. Frank mentioned the committee that has been formed to explore what the community can do to develop an affordable home ownership manufactured housing process for Fort Collins. One idea is to do a project and particularly address the needs of Harmony Park, second, to learn something from this project that can be used in doing another project in Fort Collins, or elsewhere in the region. The result should be a project, not just a study. The board would like to invite someone from Freddie Mac to learn more about their program. Mr. Danforth said that there is no Freddie Mac office in Colorado, but he will try and find a contact from Washington that can come and speak to the board. Mr. Croissant was recently in Salt Lake City, Utah, and saw advertisements on television for the purchase of manufactured housing. Apparently there is land for these homes, and there may be something that the City of Fort Collins can learn from Salt Lake City. Mr. Willis stated that any lot in the city can be used for manufactured housing as long as it is on a permanent foundation. Report back on a first right of refusal ordinance Mr. Wanner will bring up the issue at the next City Council luncheon. Affordable Housing Board August 5, 1999 Meeting Minute • Page 3 NEW BUSINESS Approval of Minutes Mr. Croissant moved to accept the minutes, Ms. Overton seconded. Motion passed unanimously. Council Policy Agenda/Work Program for 2000 and 2001 Mr. Frank explained that, every two years, the City Council adopts a new policy agenda. The policy agenda contains a series of themes and policy issues that the Council is interested in working on over the next two years. The 1999-2001 Policy Agenda contains a theme devoted to affordable housing. The next step is for staff to develop the work project plans. Mr. Frank stated that the meeting packet contained some staff ideas for projects. Mr. Frank stated that he would like comments and suggestions from the Board. Mr. Frank explained that he was under a tight schedule to send some projects to the City Manager. He further stated that the list of projects for the Council's Policy Agenda could be supplemented by other affordable housing projects that the Board might want themselves to work on. The Board's work plan for the next year would be developed over the next few months for presentation to Council later this year. The Board reviewed the draft project descriptions and made several suggestions including: 1. Several projects under the theme of Planning a City should include affordable housing as an issue, for example, the subarea plans. 2. There is a need to update the metrics the City uses in measuring affordable housing needs. Mr. Frank suggested that this be addressed when the City updates the Affordable Housing Needs and Strategies Report. He suggested adding the update as a project under the sub -theme of monitoring and updating City Plan. 3. The Board suggested adding "educating the public about affordable housing" as a project. 4. The Board concurred with the staff recommendation to add the preparation of the Consolidated Plan under the goal of "regional housing planning". 5. The Board suggested that the Council should think about developing programs and policies for rehabilitation of existing residential buildings when they are looking at redevelopment policies. 6. Under land banking, the Board suggested the need to look at opportunities for joint purchase with the City's open space purchase programs. 7. The Board suggested that the Council needs to work with the County in regards to implementation of the County's new Affordable Housing Policy, particularly TDU's and a county -wide housing needs assessment. 8. The Board suggested that the Council needs to look at incentives for for -profit developers to maintain the affordability of existing affordable housing projects as well as homesteading. Affordable Housing Board August 5, 1999 Meeting Minutes Page 4 Ms. Rios asked about the Board's role in these projects. Mr. Frank stated that the Board would be a major player and would make recommendations to the City Council on these projects. Update on the process to hire a new affordable housing planner Mr. Frank stated that Maurice Head, with the City of Iowa City, Iowa will be assuming the duties of the former Affordable Housing Planner, Ann Watts. He is currently managing the City of Iowa City affordable housing programs. Maurice has over 15 years of housing experience and worked in Longmont for eight years. Maurice will start on September 13, 1999. Board/Staff Retreat The board reviewed a letter addressed to Ken Waido from Susan Lehman regarding the scheduling of the Affordable Housing Board retreat. The half -day retreat will be held at the Edwards House Bed and Breakfast. The options are any morning or afternoon between September 22 and 30, 1999. The board discussed their preferences. The preferred days are the mornings of September 21, 22, or 23. One conflict is the Colorado Housing NOW conference, which is on September 27-29. Mr. Danforth will provide information to the board on the conference. The board needs to check with Bob Browning, Isabel Garity, and Buster Davis to find out their preferences as well. OTHER BUSINESS The following are items for the next meeting's agenda: Northern Hotel update; First Right of Refusal Ordinance; Manufactured Housing; Freddie Mac update, David Danforth. Meeting adjourned at 4:50 p.m.