Loading...
HomeMy WebLinkAboutAffordable Housing Board - Minutes - 09/03/1998CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Meeting Minutes September 3, 1998 Bob Browning, Chair Joanne Greer, Vice Chair Chuck Wanner, City Council Liaison The meeting of the Affordable Housing Board was called to order by Chairman, Bob Browning, beginning at 4:05 p.m., at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Bob Browning, David Danforth, Joanne Greer, Stacy Overton, and Mickey Willis. Staff present: Ken Waido and Ann Watts. There was no public discussion. Old Business Choice Streets Proposal Cam McNair addressed the Board. It was noted his revised memorandum was prepared after review of Mr. Browning's memorandum to Mr. Fishbach. Mr. Browning stated an area of concern is that when a developer begins a project, by the time they are ready to break ground, they have no idea what the fees are going to be. He questioned if there was a way the projects could be grandfathered. Mr. McNair explained the biggest fee would be the inspection fee, which is about $400 of the $750. He noted that for eligible affordable housing developments, fees could be waived, and therefore make the increase considerably less. Moved by Ms. Overton, seconded by Mr. Danforth: Not to support the Choice Street Proposal. Motion approved unanimously. Update on the Process to Have the City Council Adopt Changes to the Development Impact Fee Rebate (Offset) Program - Staff Options Mr. Waido noted that the following item will be put on the October 6th Council agenda: the rebate schedule; changing,to a percentage rebate and converting the home ownership. It will be recommended that Council add it as down payment assistance program to families under 60% AMI for home ownership. Only rental will stay as rebate or an offset to the development impact fee program, changing to a percentage of fees paid with a graduated scale starting at 50% of fees paid for incomes at 55%, and going up to a 100% rebate for commitments of units at 30% AMI. Mr. Waido noted the per -unit rebate is based Affordable Housing Board Meeting of September 3, 1998 Page 2 on the commitment the developer provide that units at affordable rates that families at certain income levels can afford. Scott from Brisben Companies addressed the Board regarding their projects, Buffalo Run, Bull Run, and Country Ranch. He requested grandfathering Country Ranch under the current program. Two reasons cited were: 1. The project had received allocation of City and County bonds to move forward in 1996. 2. Because of the drastic impact the development fee increase would have on this project. Mr. Browning stated that in past private meetings it was agreed that it would not be fair to change in midstream and that this project and others should be grandfathered as part of the change to the ordinance. However, what was at issue is whether such a decision would be legal or not. It was agreed the Board has a moral responsibility not to 'but the legs out' from a project like Country Ranch. The question was raised as to how many other projects would be affected. Mr. Waido stated that when the permit was pulled for a particular project, whatever rebate program was in existence is what would be applied. Mr. Waido noted this could be investigated with the attorneys. Ms. Watts stated that staff has talked about finding a point in the process where the method would be a conditional commitment, and a note could be made on the affordable housing ledger to set aside a certain amount money for a project, write a letter to that effect; then, assuming that the requirements are still being met when development is in completion and the building permit is obtained, the rebate will be given. The rebate would be akin to escrow funds, with availability of the funds guaranteed upon meeting the requirements for disbursal. Sister Mary Alice Murphy from Care Housing addressed the Board. She noted that compared to Brisben, they are targeting a much lower AMI and are a much smaller entity. If a certain level of funding is given across the board for 60% AMI, then someone else targeting 30 to 40% AMI could be knocked out. She stated her concern is the larger developers will receive the funding, while the smaller developers targeting a lower percent of AMI will get nothing. Mr. Browning commented that Council passed a set of priorities saying we are going to put emphasis with the lower AMI; however, at this time they are not sure how to support those projects, as they come on line at different times of the year. It is something that needs to be addressed. Affordable Housing Boar . Meeting of September 3, 98 Page 3 Affordable Housing Program Revisions - Development Review Fee Waiver and Impact Fee Delay Programs Ms. Watts distributed a revised draft agenda item summary which will go to Council on the 15th. Ms. Watts noted one change: When the City Code speaks to the affordable housing program, it will refer to one definition in one spot, and not repeat it. She noted currently each of the programs has their own definition of affordable housing; now they will all match. Ms. Watts went over some of the changes. She noted 75% of gross acreage has to be residential, 51 % of dwelling units have to be available for rent or purchase, and they have to be built in the first phase or in the same ratio as market rate units. For rent, households earning 80% or less of the median income pay 30% of income and for sale; earning 80% or less of median income and paying up to 38% of their gross income including principal, interest, taxes, insurance, utilities, and homeowner's association fees. Development Review Fee Waiver Ms. Watts noted fees would be waived in proportion to the number of affordable dwelling units, and that at least 51% of dwelling units must be affordable to receive any waiver. If between 50 and 100% are affordable, they would have a waiver of the same percentage of their development review fee. Mr. Danforth questioned the origin of the 51%. A discussion ensued regarding this percentage. Moved by Ms. Overton, seconded by Mr. Danforth: To change the affordable housing percentage to 10%. Motion approved unanimously. Moved by Ms. Greer, seconded by Ms. Overton: To approve Ms. Watts' revisions noted in the Draft Agenda Item Summary and forward to Council at the September meeting. Motion approved unanimously. Update on the Affordable Housing Needs Assessment Ms. Watts reported she had not gotten as far as hoped in terms of an update. She had received a couple preliminary student enrollment numbers from CSU; it is very difficult to identify how many would be independent and still low income, versus low income requiring affordable housing. The date for Council study session is October 13. Ms. Watts will attempt to get information to the Board mid -month to study and provide feedback. Mr. Wanner noted he would be most comfortable with a conservative estimate that could be supported. TRAC Update Affordable Housing Board Meeting of September 3, 1998 Page 4 Mr. Waido reported, based on information obtained Wednesday, TRAC will close by the end of the month. Public Awareness Subcommittee Report Nothing new reported. New Business Approval of Minutes from the August 6, 1998, meeting. Mr. Browning noted one correction, to delete sentence on Habitat coming up empty. Moved by Mr. Willis, seconded by Ms. Overton: To approve the minutes of the August 6, 1998, meeting. Motion approved unanimously. Land Banking Proposal Ms. Watts referred to her first draft proposal and noted Fort Collins was awarded this grant last spring. Ms. Watts explained in each region, four municipalities were selected and brought together for a conference to identify the most pressing housing needs and to acquire a solution. Ms. Watts noted their team decided that availability of land was the most critical issue; therefore, the concept of land banking was proposed. A series of meetings with that team have transpired, and they plan to present the information they have gathered to Council in October. Ms. Watts stated the concept is to acquire sites with affordable housing potential, based on a variety of factors still not defined. The idea is to hold the property long enough to cover the cost of buying and carrying it. Some issues are finding sites and subsidizing the sale price of those sites. Ms. Watts noted that if the City operates the land bank, they would not be allowed to speculate on the property; if bought for affordable housing, it has to be used for affordable housing. Other Business Report on Country Ranch Neighborhood Meeting Ms. Watts attended this meeting and noted it was quite contentious. A lot of questions about property value and traffic issues. Ms. Watts noted the neighborhood had circulated a petition to the planner in charge of the project asking for denial. Ms. Watts stated that transportation engineers do not agree with the alleged traffic problem. Distribution of Boards and Commissions Manual Affordable Housing BoaO . Meeting of September 3, 1998 Page 5 This manual was distributed to Board members. These are rules and regulations that apply to commission members. Election of Chair and Vice Chair It was noted that the next meeting will be election of officers. Ms. Greer informed the Board that Northwood decided not to sell. Mr. Waido noted that staff has discussed how to deal with this type of potential situation arising in the middle of the year when there are no allocated moneys. He stated it has been suggested to submit a community block grant proposal for a certain amount of moneys to be earmarked that if Northwood goes forward, there is a pool of money available to assist the nonprofits. Mr. Willis questioned that in looking at the list of land banking team members, why the Chair and Vice Chair of the Affordable Housing Board were not included. Ms. Watts noted the idea was to keep this a small, working group. The meeting concluded at 6:05 p.m.