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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 09/29/2005Commission members present: Staff: Bob Browning, Chair Eric Berglund, Vice -Chair Michael Kulischeck Tia Molander Jeff Taylor Jennifer Wagner Cheryl Zimlich Heidi Phelps Maurice Head Julie Smith Report produced by Meadors Court Reporting, LLC 171 North College Avenue Fort Collins, Colorado 80524 970.482.1506 970.482.1230 fax meadors@reporterworks.com a -mall MEETING HIGHLIGHTS Mr. Browning called the meeting to order at 6:00 p.m. Items of note prior to discussions of applications: The Commission will vote on amounts it feels appropriate; Staff will allocate the funds from the proper categories. The North Fort Collins Business Association has pledged $1,000 to help with the proposed study. A revised budget from Neighbor to Neighbor was received approximately three hours prior to the meeting. The requested amount was reduced to $150,000. The meeting adjourned at 6:55 p.m. At the conclusion of voting on proposals, moved by Ms. Wagner, seconded by Mr. Taylor: To accept the recommendations as finalized, with Staff to allocate recommended funding to the appropriate sources. Motion approved unanimously. HO-1 — Colorado Supportive Housing Development - $500,000 request Moved by Ms. Molander, seconded by Mr. Kulischeck: To recommend full funding in the form of a grant. Motion approved unanimously. Total recommended fundina level - $500,000 Reasons for the Recommendation Strong community support exists for this project. The applicants have the experience to make the project a success. The project needs to move forward expeditiously. The target population is not one that ordinarily receives a great deal of attention. This represents a good use of space on Harmony Road and is close to essential services. The project is 100% accessible and barrier -free. The nature of the funding would mandate a grant rather than a loan. Some concern remains over the dependence on Federal funding and access barriers due to the location on Harmony Road. HO-2 — Homebuyer Assistance - $300,000 request Moved by Mr. Kulischeck, seconded by Ms. Zimlich: To recommend full funding. Motion approved unanimously. Total recommended fundina level - $300,000 Reasons for the Recommendation This is a program with a successful track record, has proven to work, and places people in home ownership. Funding is self -generating as the loaned funds are repaid. HO-3 Larimer Home Improvement Program - $60,000 request Moved by Ms. Wagner, seconded by Ms. Zimlich: To recommend full funding. Motion approved unanimously. Total recommended fundina level - $60,000 Reasons for the Recommendation This program is revitalized, with a higher level of manpower. The program has zero default rates. Safety needs are being addressed very effectively. A contribution from the City is needed to continue Federal funding through the State Division of Housing. The program is worthy, and is self -generating as recipients pay back the loans. The funding specifically addresses mobile homes, a spectrum of low-income housing. HO-4 — Fort Collins Housing Corporation: Village on Cowan - $110,358 request Moved by Mr. Berglund, seconded by Ms. Zimlich: To recommend full funding. Motion approved unanimously. Total recommended funding level - $110 358 Reasons for the Recommendation Immediate needs, including health and safety issues, exist for the funding. In comparison to some other projects, the problems to be solved are more urgent. This funding would aid and help the viability of an existing project. The Commission has a responsibility to help preserve existing stock. The level of income of the residents does not allow for accumulation of a repair/replacement reserve. HO-5 — Village on Plum, Sleepy Willow Preservation Phase III - $304,296 request Moved by Mr. Berglund, seconded by Ms. Zimlich: To recommend full funding. Motion approved 5-0, with Ms. Wagner abstaining. Total recommended funding level - $304 296 Reasons for the Recommendation This funding would help these units to move forward and bring finality to this project. The units need assistant in order to be marketable; if they are not marketable, this project may not survive for another funding application. This funding may represent a last resort of aid to keep the project viable. Renewed marketing efforts are impressive. HO-6 — Willox Lane Affordable Housing - $600,000 request Moved by Mr. Berglund: To recommend full funding. Motion died for lack of a second. Moved by Ms. Wagner: To recommend no funding. Motion died for lack of a second. Moved by Mr. Berglund, seconded by Ms. Molander: To recommend funding of $595,000. Upon discussion, with consent of the second, Mr. Berglund amended the recommendation to $437,931, or the level of remaining funds. Motion defeated. Moved by Ms. Zimlich, seconded by Mr. Taylor: To recommend funding of $200,000. Motion approved. Total recommended funding level - $200,000 Reasons for the Recommendation The public/private partnership potential is appealing. As a loan, this would generate replacement funds. A new development is attractive to potential residents. Good access exists to primary services. Having a for -profit entity is a hedge against future requests that are generated due to lack of appropriate funding. The applicant is approaching this project creatively. The project is seen as a phased project for funding purposes, i.e., other requests can be anticipated in future funding cycles, following evaluation of tax credits, floodplain, and other issues. This project addresses the 40-50% AMI level, while vacancies at this level still exist in other areas of the city. The affordable housing situation in Fort Collins calls for housing targeted to 30% AMI or lower. Due to the longer -term nature of this funding and inherent uncertainties, partial funding is appropriate. H HO-7 — Neighbor to Neighbor: Crabtree Apartments - $74,300 request Moved by Mr. Berglund, seconded by Ms. Wagner: To recommend full funding. Motion approved unanimously. Total recommended fundina level - $74,300 Reasons for the Recommendation Obvious environmental concerns presently exist with this project. The funding is necessary to keep this project habitable. The project is moving in the right direction to assess its needs, obtain leveraging, and develop a maintenance plan. Some concern exists over the process of their capital needs evaluation. AD-1 North Fort Collins Business Association - $20,000 request (less $1,000 pledge by applicant) Moved by Mr. Berglund, seconded by Ms. Wagner: To recommend funding of $19,000, subject to the process being administered by City Staff and meeting City Staff approval. Motion approved 4-3. Total recommended fundina level - $19,000 Reasons for the Recommendation This area is a hot button for the City, with demonstrable economic development and community needs. In order to use the funding, the entity must comply with City standards in its RFP and bidding processes. The City would be involved with the entire process. Concerns were expressed as to the exact usage and specific outcome of the funding. The potential benefit of this proposal would be best realized over the next year; circumstances could dilute the benefit after that time. PUBLIC FACILITIES PF-1 — Neighbor to Neighbor Office Consolidation — $150,000 request Moved by Ms. Molander, seconded by Mr. Berglund: To recommend no funding. Motion approved unanimously, with Ms. Wagner abstaining. Total recommended fundina level - $0 Reasons for the Recommendation This application is a low priority for CDBG funding, with no direct impact on community needs. The followup request regarding a reduced budget furthers the impression that 5 budgeting is not solidly based. It is not certain that budget savings through funding will translate to enhanced funding in more needed areas. Other options may well exist to leverage this effort. The request is administrative -oriented rather than higher needs of programmatic -oriented. A clear plan does not exist for property management funding, further demonstrating difficulties with budget handling.