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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 03/05/1998CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Meeting Minutes March 5, 1998 Bob Browning, Chair Joanne Greer, Vice Chair Chuck Wanner, City Council Liaison The meeting of the Affordable Housing Board began at 4:15 p.m., at 281 North College Avenue, Fort Collins, Colorado. Board members present included: Chairman Bob Browning, Bruce Croissant, Mike Nicely, and Stacy Overton. Kay Rios arrived later. Staff present: Ken Waido, Joe Frank, and Timothy Wilder. The meeting was called to order without a quorum. After Ms. Rios' arrival, a quorum was met. No public discussion. Changes to Rebate Schedule Mr. Waido stated that at the Board's request, Ms. Watts compiled several scenarios and graphs, part of a continuation in converting from flat dollar amounts to a percentage of rebate fees paid. Mr. Browning noted he would like to revise the rebate statement to ensure something will be attained for the amount of money that is placed into it. As an aside, Mr. Browning also stated, for the record, that as President of Habitat, he does not receive any money for doing so; therefore, there should be no concern or mention of conflict of interest. Mr. Browning explained the initial idea, not included in the packet, would be to start the rebate at about the 50 percent point, perhaps acquiring some tax credit interest and moving the curve up faster. Most nonprofits would fall in this area; private developers would not. This was a conceptual idea to attempt to stimulate an area, and aid in the production of units or maintaining the units at a lower rent. He distributed the graph for other members to study. Mr. Browning explained the idea is to get the subsidies up quickly, and try to have organizations like CARE keep their lower income numbers high. The downside is it will probably knock the for -profit groups out of the rebate program. Ms. Rios agreed rebates shouldn't be assessed to anything over 60 percent; going to 50 percent was a good idea. Ms. Rios also questioned if there was a way to tie rebate to affordability and length of term. Mr. Browning commented that it could be done, but it result in an administrative nightmare. His suggestion was to tie it to a tax credit system. Mr. Waido noted the minimum of affordability requirements for rental is ten years; home ownership is five. Projects are not built in Fort Collins without being subsidized, and these subsidized projects have greater affordability requirements. When a tax credit is given, Affordable Housing Board Meeting of March 5, 1998 Page 2 there is no great concern whether that project will remain affordable for ten years because the tax credit is required for a period beyond ten years. A discussion was held regarding the reasons for the 80 percent figure. Mr. Nicely noted the figures can be moved back and forth; the basic idea is that this is the direction the Board wants to go. It can be brought back to the Board to be fine-tuned. Mr. Browning also commented that home ownership projects are not being acquired at the 95 to 90 percent level and that this may act as a stimulus, all part of the conceptual idea. Mr. Browning noted there are figures available and the Board agreed they would like to study that data. Proposed Policy for Projects Receiving Utilities from Special Purpose Districts Mr. Waido noted, the issue is whether to include utility fees in the calculation for fee rebates. This item has been pulled off the 17th Council agenda. Mr. Waido suggested packaging this with Item 1 to Council. Mr. Frank explained the staff's point of view and why they changed their minds. As he noted, some citizens in Fort Collins are served by the districts and the rest by Fort Collins. Staff originally supported distinguishing between citizens who live in a district area or citizens who live in Fort Collins; but after study, the conclusion was both areas are citizens of Fort Collins and the rebate program was developed for citizens of Fort Collins. The other issue is when a development takes place, fees are paid; this rebate program is funded through development fees. The way it is drafted now, affordable housing units in that district cannot be entitled to that rebate and this development pays the fees that go into the rebate program. The developer pays and cannot get the rebate. Mr. Waido noted the developer would get a rebate but the level of the rebate would be different. Mr. Frank further explained at that point, both citizens pay development fees, both satisfying affordable housing needs for Fort Collins and should get the same opportunity. He noted staff's confusion was the belief that revenue streams were involved; that the districts were getting money back for something they didn't actually pay for. That is not the case. A discussion then ensued. Ms. Rios noted it had nothing to do with the fees collected, simply a general funds incentive and not a rebate. Mr. Waido explained the code is set up that the rebate program is for rebating fees imposed by the City and obviously district fees are not imposed by the City. A code change would be necessary if district fees are included in the rebate program. Mr. Frank commented whether it is in the district or in the City makes no difference because it is not a revenue issue. Mr. Nicely noted this is not a fee rebate program but more an incentive program. Mr. Waido stated there would be a listing in the program of what fees would be rebated. Staff would base the percentage rebate on the total amount of fees that they paid for those services, whether it be to the City or the district. Mr. Browning questioned if there should Affordable Housing Board • • Meeting of March 5, 1998 Page 3 be a concern as to windfall profits for the districts. A representative from Boxelder noted that when a project comes in to their district, it defrays their cost for services. Mr. Browning asked if anyone had been turned down yet. Mr. Waido responded "no." Mr. Frank noted the area being discussed is inside the city limits; the discussion is not concerning changing policy for outside the city limits. Ms. Overton commented this issue is now a little more clear, but would like more time to mull this over. Mr. Waido noted that Council would look to this Board regarding the recommendation of a code change. Board members agreed to table this issue for another month. TRAC Update Mr. Waido commented that First National Bank is out of the picture. The Housing Authority has bought the construction note and the TRAC Board of Directors have agreed to work with the Housing Authority in taking this project over. They will be selling the units as fee simple units. Ten units are occupied, and one of the families has decided not to purchase. Mr. Waido is not sure whether the other nine tenants have been kept up-to-date by TRAC. Public Awareness Low Cost Housing Network Luncheon Mr. Waido was pleased with the outcome as he noticed people he had never seen before attend an affordable housing function. New interest was generated and new people involved. On the downside, the same old complaints and issues were addressed. Ms. Rios reported there were 79 participants, of which 40 filled out evaluations. She will complete an analysis and report to the Board. She thanked Mr. Browning for a great job in kicking it off. Ms. Rios noted it received good press. Possible partnerships might come out of it. A booklet was prepared that lists names and contact numbers. Ms. Rios stated they are not sure what the follow-up will be, but would be interested in meeting with Mr. Browning and brainstorming. Mr. Browning suggested the next time it would be a good idea to get the Commissioners, Council, and the Planning and Zoning Board to attend and place them each at a table. Ms. Rios will organize the notes that were taken at the round table discussion and circulate them to the Board and staff. Mr. Frank noted staff could assist in the word processing. Subcommittee Report Mr. Wilder and Mr. Croissant reported they were moving ahead slowly but surely on the Web page idea. New Business Affordable Housing Board Meeting of March 5, 1998 Page 4 Approval of Minutes Since a few Board members did not receive their packets, approval of February 5, 1998 meeting will be tabled for next month. Ms. Rios did note a correction to the February minutes. She was not the one who reported on the Web page and that Mr. Croissant should take the credit. School District Fees in Lieu of Land Dedication Ann Turnquist was not present to report on this. Roles and Responsibilities of the Affordable Housing Board and the CDBG Commission Regarding Funding from HUD's Community Development Black Grant Programs Mr. Waido has been receiving communication from different entities who want to be involved in the Community Development Block Grant program, via comments or recommendations about how to use the CDBG funds, particularly now that flood mitigation monies are available. The issue of overlapping roles and responsibilities of the Commission and Board was one raised a couple years ago. Mr. Waido wants to inform the Board what happened in the past and what the decisions were; if everybody is still comfortable with that, then everyone can proceed. If there is discomfort, he suggests the process used last time, involving the Board liaison, staff and commission liaisons and chairs to meet again and eliminate the overlapping. Mr. Browning questioned if there was something happening that the Board should be concerned about or just keep the staff liaison system. Mr. Waido noted he did not see one, just the different entities wanting to make recommendations on how to use the flood mitigation funds. He also noted the Board could be instrumental in assisting the Commission with ways that encourage people to make applications, and assist the Commission in identifying what particular type of housing needs exist. Flood Mitigation Update Mr. Waido stated $511,000 has been received from HUD for flood purposes. Staff has been working with CDBG Commission and various groups to develop an action plan. A public hearing was held at the February commission meeting, specifically for soliciting comments and formulating recommendations on how that money should be spent. Money was set aside for down payment assistance, and a portion was allocated for storm drainage improvement for the Avery Park neighborhood. After the recommendation was made, it was discovered the amount allocated for the storm drainage work was just enough to cover the legal expenses. Another public hearing regarding the funds will be held the second Thursday in April. CDBG intends to make a recommendation to Council on how to spend that money. Mr. Waido noted that other housing projects could come forward and apply for the monies; the Avery Park people Affordable Housing Board . • Meeting of March 5, 1998 Page 5 would not be pleased. They are currently working on a way they can use the 207,000 that was earmarked for Avery back in February. Other New Business Mr. Waido distributed handouts to the Board. Two maps will be done. The first one is the affordable housing projects that are somewhere in the development/construction process but not officially closed. The second step is which projects have officially made an application to the City and are going through the public review approval process. The third category is which ones actually started and turned dirt. Another map will be made showing the existing locations of affordable housing projects, independent of Section 8 certificate projects. Completed projects will be taken off this map. A copy of the Executive Summary of the City Plan was distributed. Mr. Waido noted a new comprehensive plan and land use code was adopted last March. Staff will continue to monitor this, as there are still questions related to the development of affordable housing. The meeting adjourned at 5:35 p.m.