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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 02/04/1999CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Meeting Minutes February 4, 1999 Bob Browning, Vice Chair Ken Waido, Staff Liaison Chuck Wanner, City Council Liaison The meeting of the Affordable Housing Board was called to order by Chairman Bob Browning, beginning at 4:00 p.m., at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Bob Browning, Kay Rios, Bruce Croissant, Isabel Garity, Joanne Greer, Mike Nicely, and Stacy Overton. Staff present: Ken Waido, Ann Watts. City Council Liaison present: Chuck Wanner. Public Comment: Lou Stitzel addressed the Board. She complimented the Board for the efficient way that information was presented at the Council hearing but expressed reservations that much of the information presented was not generally known until the last minute. She stated that the Board in its review capacity would play a valuable role in dissemination of such information. She espoused a mixture of flexibility and consistency in the approaches taken in the Planning Office. Kristin Moberly of CARE Housing presented three short topics to the Board: 1) Appreciation for the Board's diligence in the passing of the affordable housing plan; 2) CDBG's awarding of points for projects completed in one year is too restrictive, given the state of construction; 3) there are apparent discrepancies in the County figures for multifamily dwelling fees for the road and parks program. Mr. Browning noted the prevailing philosophy of growth paying its way. He stated that efforts to improve affordable housing are not growth. The stock of affordable housing is, in fact, shrinking. To make growth pay its own way, the City raises fees; this has a corresponding ill effect on affordable housing production. Mr. Browning will speak to the Coloradoan about this issue. Mr. Browning observed that the housing lists for both Fort Collins and Loveland Housing Authorities were frozen; further, the Board has received reports of tenants homesteading in Housing Authority units for 16 or 17 years. Mr. Browning sought views from Board members on the appropriate role of the Housing Authority and means with which to track the genuine needs of the tenants without running afoul of privacy rights. Mr. Browning further noted that while Council is taking a position of promoting new housing stock, the City stands to lose a number of existing units in the near future. Mr. Browning suggested that preservation of existing units be a focus as well, and advocated the City acquiring a first right of refusal on existing housing stock should Affordable Housing Board Meeting of February 5, 1999 Page 2 units be made available for sale. He advocated the Board recommending to Council that such an avenue be explored, have parameters defined, and the appropriate mechanisms put into place to effect this program. Ms. Greer offered new information on the Northwood situation. The problematic new owners may elect to do rehab just due to the age and condition of the buildings. Mr. Waido stated that CDBG funds may be appropriate for these purposes. In response to a question, Mr. Browning stated that he envisioned the first right of refusal concept applying in many different arenas, subject to approval by legal staff. Mr. Waido said he would take the idea to the appropriate City departments. Charles Dehn from Harmony Park echoed the value of the first right of refusal. He stated that residents from the park would review the legislative history of this concept. Presently, the tenants of the park are in the process of suing ARC, the new owners of the park. He stated that Fort Collins faces the potential elimination of 487 homes from the park. ARC purchased 11 properties from Prime Management; it appears to Mr. Dehn that the value of the park was artificially inflated — perhaps for favorable tax consequences - by weighting of the total purchase to the park parcel. Mr. Dehn stated that the park is facing a huge exodus due to the increase in rent and increase in utility costs to the tenants, resulting in an onerous burden to low-income families. Some displaced residents are probably homeless; others have moved in with family. Mr. Dehn's housing costs have risen $1200/year recently; he is paying $1800/month more than when he moved in two years ago. Many households featuring elderly, disabled, or very low income people cannot survive these increases. Mr. Dehn met with representatives of ARC in the previous week, but no one present from ARC was able to make commitments for the company. The meeting therefore did not go well and ended abruptly. Mr. Dehn has worked on the other side of the coin as a promoter of ordinances that provided for an affluent community. He repudiates that approach, having seen the damage caused. He expressed concern that land values not reach such heights that succeeding generations will not be able to purchase homes. This escalation of land and housing prices make manufactured housing a necessary part of the housing spectrum. Mr. Dehn will be approaching CDBG with the idea of a site for manufactured housing. He has noticed a stronger sense of community and connections in the manufactured housing neighborhood than in his past stick -built residences. From all appearances, it would seem that the owner is not interested in the present residents remaining in the park. Mr. Dehn could not speculate on the motivations of the owners. Mr. Dehn noted that the number of affordable housing units was not increasing, yet 1700 building permits were filed last year for new housing. This approach is running Affordable Housing Board • • Meeting of February 5, 1999 Page 3 away from affordable housing. Fort Collins is too far from Denver to effectively draw from the work force there. In response to questions, Mr. Dehn stated that the number of units in the park is down from 487 to 450. The neighborhood is entirely home ownership. A survey is being conduct of park residents, with about 27 percent return so far. Mr. Dehn estimates that 40-50 percent of the homes in the park are at risk due to the inflating costs to remain in the park. Residents are meeting with the City and County to explore alternatives. The residents are hoping to obtain property where affordability and cost increases can be locked in to ownership. When ARC purchased the property, no first right of refusal was offered to the tenants; furthermore, before the purchase was closed, Mr. Dehn had approached park management about the possibility of tenants purchasing the park. The possibility was advanced of meeting with ARC to exchange views and philosophies regarding maintaining affordable housing. It was noted that the company is undoubtedly profit -driven and may be closed -mouthed due to pending litigation. Since the name of the company implies "affordability," the company should be interviewed and reviewed to determine prevailing policies and the AMI level that it seeks to serve. New Business Larimer County Road and Park Capital Expansion Fee Program Proposal The County, based on input from citizens, has been contemplating receiving the appropriate road and park fees at the building permit level. This was recommended by a commissioned study, and the County will begin collecting those fees February 15. He reviewed the background that resulted in adjustments of the fees collected by the County for Fort Collins parks. The County has identified five County roads that serve as regional roads in significant need of upgrading. The regional park fee serves all County residents. The County is asking for recommendations from the various communities within the County for participation or merits of this fee collection. Participation by the City would result in an $865 increase to the cost of building permits within Fort Collins. In response to questions, Mr. Legg explained the vagaries of State law as applied to County collections and the reason for this fee structure. Mr. Legg and Mr. Frank described the means by which the County and City ensure that appropriate land is set aside for parks and open space. The fees to build in Fort Collins would go up. The three categories of parks collected for would be neighborhood, regional, and community parks. Mr. Browning once again noted the escalating costs to build. He stated that a permit for a recent Habitat home cost around $10,000; the proposed fee would bring it close to $10,800. Affordable Housing Board Meeting of February 5, 1999 Page 4 In response to a question about County actions for affordable housing, Mr. Legg stated that the County works with the core cities to address the issue in every way possible. Mobile home parks are being approved in the County. The County wishes to encourage affordable housing in the land use process and works with core communities to try to effect that. Affordable housing issues were pulled from the PLUS process and given to the Affordable Housing Board. Board members noted that the County was gathering information on the issue from other communities and counties. Mr. Browning and Ms. Greer reported less than enthusiastic response from a recent meeting with the Commissioners. Concern was expressed over the County's actual contribution to affordable housing solutions in comparison to the amount of funds received resulting from Fort Collins construction. Mr. Browning noted a $2,000 increase for his building permit fees in one year and questioned how affordable housing could proceed with such increases. Discussion was held concerning the comparisons between City and County fees, the allocation of fees, and legalities from one governmental entity to another. Moved by Ms. Greer, seconded by Ms. Rios: To not support the fees proposed by the County. Motion approved unanimously. Mr. Croissant will draft the memo to City Council advising it of the Board action. Old Business Ms. Watts reported on the State Division of Housing hearing on affordable housing needs, attended by her and Mr. Willis on January 12 in Denver. Ms. Watts reviewed the formula that the State applied to determine housing needs. The methodology varies substantially from that which the City uses. For less than 30 percent AMI, the housing need calculation is 8200 units; for 30 to 60 percent, the need is 7200 units. Ms. Watts reported that the seminar was very interesting and offered the executive summary for review. Mr. Waido noted that the Division of Housing realized funding in excess of its request; that award appears to be a singular event. Ms. Watts stated that she will attend a Northern Colorado Social Segmentation Network breakfast. A legislator who is a potential support of affordable housing will be expected to ask local governments what is being done for affordable housing. Ms. Watts will present the Fort Collins programs to illustrate this community's resolve in addressing the issue. Ms. Watts noted the recent Council action that adopted the study and passed the requested Code changes. Council seems very committed to this effort. The percent targeted for affordable housing funding has actually been exceeded over the years. There have been suggestions about a sales tax and/or property tax to help address this Affordable Housing Board 0 • Meeting of February 5, 1999 Page 5 need. Mayor Azari has also stated that the City needs to be more aggressive in pursuing alternate funding. Further discussion was held concerning the County's reluctance to address affordable housing issues, the need for Council to be aware of the County's position, and the ongoing need to work with the County to effect solutions. Discussion was held over the very capable work of Funding Partners. Karen Gerard will be invited to make a presentation to the Board concerning Funding Partners' efforts, methods, and accomplishments. Mr. Fischbach is attending the March meeting; Ms. Gerard will be invited to the April meeting. 1999 Work Program The Board discussed the value of working with CDBG on needs and means of addressing those needs. It would be advisable to have an Affordable Housing Board liaison to attend CDBG meetings to observe the selection and awards process. If a need is then seen for a joint subcommittee process, that step will be taken at that time. Mr. Waido reviewed the upcoming CDBG schedule and process. Mr. Browning, Ms. Rios, Ms. Garity, and Mr. Croissant expressed interest in attending the meetings. Staff will bring the CDBG schedule to the Board at the next meeting. Mr. Browning stated that the purpose of attending is a learning process for the Board, not a second-guessing session. He asked Board members to come up with high -priority issues to evaluate how those issues can be addressed in the CDBG process. Mr. Browning related a conversation he had with Will Smith where the congratulatory tone of the affordable housing measures was tempered by the issue of implementation. Board Retreat Discussion was held on the value of a retreat. These have been helpful in the past. There is some confusion for the Board as to whether they set the goals to advise Council upon, or if Council raises the issues for the Board to comment upon. Staff recommended that a facilitator be present. Mr. Willis has offered the use of the common building in his co -housing project. Staff will work on coordinating a half -day retreat and report back to the Board. Housing Authority vouchers Ms. Rios reported a conversation with a staff member of the Housing Authority. Although the Housing Authority has not been awarded a contract for vouchers, they are guaranteed 100 vouchers targeted to disabled. Perhaps 30 to 40 vouchers could be arranged in the event of a sudden massive relocation, as alluded to by Mr. Dehn earlier. Affordable Housing Board Meeting of February 5, 1999 Page 6 It was noted that the events at Harmony Park are a mirror image of occurrences at the Trilby mobile home park. Specific park philosophies and practices were discussed with Mr. Nicely. Many people are facing displacement due to mandatory upgrades and rehabilitations that they cannot afford or are not able physically to make. Mr. Waido explained that the application would apply to acquisition rather than any housing not on a permanent foundation. Staff will look into the legal and financial issues involved in this situation. The meeting adjourned at 5:45 p.m.