Loading...
HomeMy WebLinkAboutAffordable Housing Board - Minutes - 06/04/1998CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Meeting Minutes June 4, 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 Chair, Bob Browning, beginning at 4:10 p.m., at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Bob Browning, Joanne Greer, Sylvie Glass, Kay Rios, Mike Nicely, Bruce Croissant. Staff present: Ken Waido and Ann Wafts. The meeting was called to order with a quorum. Public Discussion None was had. Old Business Development Impact Fee Rebate Program Discussion was held regarding the impact fee rebate program regarding the flat dollar amounts versus the percentage rebate for both the renter and the owner. Mr. Croissant proposed that a dot be put at 60 percent of AMI and 50 percent rebate and also another dot at 30 percent and 100 percent and draw a line between them; require that no rebate is given unless the proposal meets 60 percent or less AMI; at 30 percent AMI, a 100 percent rebate is given. Also proposed was that it be called a development impact fee offset program, rather than rebate; and that fees be at the front end of the project rather than the back end. Discussion was held regarding the 60 percent and the proposal brought to the board. Ms. Watts suggested that the rebate program could be constructed as a commitment up front in order to help developers to get subsidies that they need to build units. Showing local support by committing local funding to the project up front helps them in their grant applications. Ms. Watts proposed that perhaps a 5 or 10 percent rebate at 60 percent, and then adjust the scale accordingly. Debate was held regarding curve versus straight line and percentages. Further discussion was held regarding not designing a program based on the money that is available now, but rather design a program that will be the best. Mr. Waido stated if there were a straight line Affordable Housing Board June 4, 1998 Meeting Minutes Page 2 it could be basically 10 percent increase in percentage rebate for every 5 percent reduction in AMI. Moved by Ms. Rios: To recommend that rebates be used at 55 percent AMI and starting at 50 percent but using the curve the subcommittee developed. Discussion was held regarding using the curve and how that would work. The motion was changed to still use the 55 percent AMI and starting at 50 percent, but using a straight line. Discussion was had regarding the up front money and how to go about doing that so that there is a chance the money would stay in the community. Mr. Waido suggested that when they come in for their permit, the commitment for the offset, that money be applied to their permit fees. Discussion was held regarding the subcommittee and the options they came up with regarding ownership. Further discussed were the options of how to recoup the money that was put into the program. Mr. Wanner suggested that this program be reviewed each time the budget comes around. The presentation to Council will be showing them what the Affordable Housing Board is going to be regarding eliminating the rebate to the builder, but giving an additional subsidy to the purchaser. Mr. Waido will try to get this written up to present to Council by the 19th of June, but if not it will be presented at the July 2nd meeting. Mr. Croissant qualified that this money, this loan, is there as long as the owner occupies the house. Mr. Browning further qualified, "due on sale, lease or any other hypothecation." Discussion was held about how to actually enforce this provision and the penalties that could be imposed. Mr. Nicely clarified: Go with 60 percent straight line, $5,000, to be fine-tuned at a later date. Mr. Waido stated that staff could add the technical information at a later date. TRAC Update Mr. Waido informed the Board that the housing authority did initiate foreclosure proceedings on the project. The TRAC board has voted to give the deed to the Housing Authority. It is now the Housing Authority's project. They will close it and sell it to the residents. Hopefully, in the next two months, there will be 12 new homeowners in the Parkway townhomes. Public Awareness Subcommittee Report r Affordable Housing Board June 4, 1998 Meeting Minutes Page 3 Mr. Wilder gave a presentation to the Affordable Housing Board on one of the public awareness strategies, namely the Web page. The intention of the Web page is to get public knowledge and awareness of the issues around affordable housing, as well as some of the projects that have been done around affordable housing. If there are any suggestions on the wording or anything else the Board should let Mr. Browning know within the next two weeks, and Mr. Browning will get all changes to Mr. Wilder by June 18th, 1998. The Board thanked Mr. Wilder for all his hard work and effort on this project. New Business Approval of Minutes Page 5 of the May 7, 1998, minutes, "Incomes are showing less than 50 percent of AMI but the parents are more than likely paying the bills," is to be stricken. With that change, the minutes from May 7, 1998, were approved unanimously. Affordable Housing Needs Assessment Ms. Wafts distributed the Priority Affordable Housing Needs and Strategies Draft Report to the Board. Conclusions: Rental Housing - Fort Collins has a very serious shortage of rental units affordable to households earning below 50% of AMI. Therefore, this community's highest priority needs to be producing more of these units. Average rents in Fort Collins' existing multifamily housing stock tend to be fairly close to levels considered affordable to households earning 60% of AMI. However, due to the rising cost of land and construction in the area, new units cannot be built for this population without development subsidies. Therefore, this community needs to support the construction of additional units affordable to and restricted to households at this income level. This community needs to maintain a supply of unsubsidized, unrestricted multifamily units that are priced for people earning approximately 60 to 80% of AMI. Fort Collins is also lacking enough Section 8 type rental subsidies for people earning less than 30% AMI, especially those with special needs. Therefore, this community needs to work on finding new sources of this subsidy, and on preserving what we have. For Sale Housing - According to HUD, there are 3,900 renters that earn between 50 and 80% of AMI. Many of those families should readily qualify for monthly payments on starter Affordable Housing Board June 4, 1998 Meeting Minutes Page 4 homes. If this product were available and these families had the necessary down payment, many would likely purchase homes instead of continuing to rent. Therefore, the community needs to continue to help first time homebuyers earning less than 80% of AMI to get into affordable homeownership. Housing Production New construction of affordable housing is constrained by a number of commonly understood factors. Therefore, this community needs to be more proactive in identifying and securing sites for future affordable housing development. It needs to examine regulatory barriers and consider reforming them. It needs to be supportive of proposed developments in their quest for identifying development subsidies. In addition, this community needs to preserve its existing affordable housing projects. Discussion was held regarding these conclusions. Ms. Watts pointed out and discussed many of the graphs that are contained in this Draft Report. Discussion was held regarding how this data was compiled and what area it included. Discussion was held regarding CSU and how much housing they provide to their students. Ms. Rios suggested that Ms. Watts contact the Office of Budget and Institutional Analysis for any further needed data regarding CSU. Ms. Rios had some suggestions. She will confer with Ms. Watts during the next week so that those can be put into this report. Ms. Greer stated Ms. Watts did a great job in putting this all together and would like to see the data base expanded to include not just apartments by the single family, but also condos, etc. Ms. Watts encouraged Board members to come to the next council session on Tuesday, June 9th, at 6:00 because this matter is on the agenda. Strategies for Meeting Fort Collins' Priority Affordable Housing Needs are as follows: Production of Units, Target City -Controlled Funding, and New Initiatives. Review of the Board's By -Laws This matter was carried over to the next meeting The meeting adjourned at 6:10 p.m.