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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 08/01/1996171 • APPROVED SEP 5 1996 AFFORDABLE HOUSING BOARD MEETING MINUTES August, 1, 1996 Bob Browning, Chairperson (home - 22"136) Gina Janett, Council Liaison The meeting of the Affordable Housing Board began at 4:10 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. Board members present were Chairman Bob Browning, Stacy Buffum, Sylvia Glass, Mary Cosgrove, Sue Wagner, and Bruce Croissant. Staff members present were Ken Waido, Dickson Robin, and Alan Krcmarik. Public comment was solicited. Betty Maloney, from the Affordable Housing Task Force, stated that she had previously attended a meeting of the City Plan Advisory Committee, CPAC, in which discussion had been held on the housing and neighborhood portion of the Principles and Policies section of the City Plan. She noted that she was concerned that certain items were missing in the plan such as the definition of affordable housing. She noted that many of the items discussed at the meeting appeared to be positive, but those items will also raise the cost of housing, and she questions how such costs will be mitigated. Ms. Maloney also questions if it would be possible to include a fair percentage of affordable housing in the new construction planning of the City Plan. In closing, she noted that now seems to be the time to raise these questions, rather than when the document is in final form. Lou Stitzel stated that she is a member of CPAC and noted that an open public participation meeting will be held at the Lincoln Center on August 7th, and an additional meeting will be held on September 18th. She also noted that at the current time, there are no finalized documents in the Principles and Policies portion of the City Plan. She added that the Citizen's Advisory Committee on the City Plan is very interested in getting as much input as possible from the citizens, and the Board is certainly invited to attend. Mr. Browning questioned when the Board would see the draft of the Principles and Policies Plan. Mr. Waido stated that the Board would receive a copy prior to the September meeting. Moved by Mr. Croissant, seconded by Ms. Buffum: To approve the July 11th, 1996, meeting minutes. No changes were noted. Motion passed unanimously. Mr. Waido discussed the City's Relocation Policy with the Board. The Board received background information, at cetera, that had been submitted to Council in the past on the issue. Mr. Robin noted that the City of Bloomington, Minnesota has a policy that requires anybody who closes a mobile home park to provide assistance to the residents. He added that that policy has recently been challenged in court by the owners of one particular park, and the policy was upheld in that case. Mr. Robin said that City Attorney Paul Eckman is coming to the next Board meeting to discuss the matter further, but Mr. Robin believes Mr. Eckman's feelings are that such a policy in Fort Collins would not be upheld if challenged in court. Mr. Robin stated that he would get a copy of the Bloomington policy to the Board AHB Minutes August 1,1996 Page 2 for its next meeting The determination was made by the Board to postpone further discussion of the Relocation Policy until the September meeting. Mr. Robin discussed the Development Fee Rebate Program with the Board. He noted the possibility of issuing a rebate at the beginning of a project rather than issuing the rebate at the time the C.O. is issued. Mr. Browning stated that currently development fees are paid at the time that the building permit is pulled. He stated that that amount is roughly $10,000 for a single-family home. He noted that the City also has a procedure whereby the fees can be delayed until the C.O. is issued. He stated that by front -ending a rebate at a calculated percentage at the time the permit is issued, it would assist smaller groups in getting a project started and also would demonstrate City support for builders. Mr. Browning also noted that oftentimes the income levels of the residents are unknown. Therefore, perhaps a target area could be utilized to rebate a certain percentage up -front. He added that this system would double Staff work time. Mr. Browning went on to say that at the current time, none of the nonprofit groups are being delayed as a result of fees. Therefore, this issue would address future impact fees. Ms. Cosgrove questioned the possibility of this system eliminating the need for a letter of credit. Mr. Browning suggested that perhaps the City could issue the letter of credit. Mr. Waido stated that even if the rebate was front -ended, the City will still maintain control over the project, in that they will still issue the C.O. only when all problems have been resolved. Ms. Wagner stated that she believed the requirement for the letter of credit was coming from the City, not the lenders. Mr. Browning agreed and said that he believed the City requires a letter of credit to prevent a builder from walking away from a project. He added that any builder would have so much money tied up into these projects that there would be no possibility of them leaving the project. Mr. Waido stated that he is unsure just how successful the rebate program is in helping to generate units. He said that perhaps there is a better way to help produce units, such as through the RFP process. Mr. Waido added that he did not feel waiver of fees was a possibility from the City's perspective because someone must ultimately pay for any fees waived. Ms. Cosgrove asked if Staff could develop a list of pros and cons with regard to the various philosophies of the rebate system. Mr. Waido said that such could be assembled. However, due to the fact that both he and Mr. Robin will be absent at various times during the month of August, he would be unable to prepare the information for the Board's review until October. Mr. Robin stated that he could supply to the Board for their next meeting the proposed changes to the existing rebate program, information on how many units have been proposed that would qualify for the rebate program this year and last, and information on available and spent rebate money to date. The Board received copies of the "Affordable Housing Demand in Larimer County 1996- AHB Minutes • August 1, 1996 Page 3 2000" report. Mr. Waido reminded the Board that they had had some discussion and made a motion that the City look at ways to perhaps allocate $20,000 to get the consultant who did the AHIS system to undertake a more detailed look at the rental aspect of the report. He stated that Staff has put in a 1997 budget request for that $20,000. Mr. Waido questioned the Board on whether or not they would like Staff to continue to pursue rehiring the consultant. Ms. Cosgrove questioned the accuracy of the need for $20,000 to expand the rental information. Mr. Waido stated that he believes a decent product could be obtained with 10 to $12,000. Mr. Robin noted that a determination should be made as to what information the analysis should contain. Mr. Waido noted that approximately 95 percent of the rental units are in larger complexes and under management companies, and basic information on those units would be relatively easy to access. He, therefore, questions the necessity of spending additional monies and effort to obtain information on the remaining rentals units. Ms. Cosgrove suggested that perhaps the Fort Collins contributors to the original report should be questioned as to whether or not their needs have been met with the existing report, and if not, what additional information would they like to have. Mr. Browning requested that Staff put together all the information available at this time on the issue. Mr. Waido stated that he would try to do so by October. Mr. Waido gave the Board an update on the Provincetowne SID Project. He stated that Provincetowne had been on the P and Z agenda for the master plan, and he believes within the next week or two, they would be holding another meeting in which the project would be addressed. In response to questioning, Mr. Waido stated that he believed approximately 30 percent was the projected number of affordable units proposed in the project. Mr. Robin gave the Board an update on the Pioneer Mobile Home Park. He stated the following: Approximately 64 households are left in the park; approximately 33 relocations are pending; approximately 25 households have no relocation plans at this time; approximately 60 days are left before the park closes; some residents have said they will not leave until they are forced out; a Pioneer protest is planned for September 2nd and 3rd, at which time a mobile home will be moved down to City Hall. Mr. Robin also stated that the City has applied to the State Division of Housing for $125,000 to assist Pioneer residents get into home -ownership situations. These funds would be available for Larimer County, not strictly within the boundaries of Fort Collins. The State Board of Housing will review the application on the 14th or 15th of August. Mr. Robin stated that he would be going down to make a presentation to the State board at that time. Mr. Browning said that the South Side Minister's Group has disbursed over $17,000 to the Pioneer cause and money is still available. Mr. Robin added that there are still monies available from the allocated CDBG funds. Mr. Browning noted that most, if not all, of these supplementary funds will no longer be available once the park closes. AHB Minutes August 1,1996 Page 4 Ms. Linda Devocelle returned to the Board to further discuss the proposed Radon Gas Ordinance. Mr. Robin stated that based on the Housing Affordability Index Model, 44 households within the 51 to 80 percent of area median income would be eliminated from being capable of purchasing a 1,000 square foot home if a passive radon system was installed at $375. Ms. Devocelle stated that she did check with the CDBG Board, and a possibility exists that funds could be received through that source to assist individuals who need financial help in installing a radon system. Mr. Waido stated that that assistance could be undertaken in a number of ways, but the idea would be that a radon gas mitigation cost program could be set up, and if someone determined that they had a radon problem, they could obtain either a 0 percent interest loan or a grant. Ms. Devocelle noted that Staff has gone to Council with the proposed radon gas issues, and Council has said they want to know how many people in Fort Collins might actually die because of radon. Ms. Devocelle said that the Building Department is ready to form a committee to get adoption of radon standards into the building code. Mr. Browning questioned the impact on the sale of homes. He wonders if sales will be stopped because of an existing high radon problem in the house. Ms. Devocelle replied that the information to be distributed to the buyers will encourage the buyers to fix the radon problem, not back out of purchasing the home. She added that the realtors in the community feel the marketplace will adjust. The Board expressed no concerns with the current recommendations by Staff on the radon issue. Mr. Robin introduced Joe Levits from Hawthorn Limited. Hawthorn is proposing an IDRB affordable housing project, on the corner of Harmony and County Road 9. Mr. Levits stated that Neighbor to Neighbor will be working with them in a partnership on the project. The Board received a handout which outlined the details of the proposed project. Ms. Cosgrove asked if the level of bond available matches the request put forth. Mr. Krcmarik stated that the City gets an allocation of less than $2.5 million a year. The request is just under $8 million. He stated that Staff would suggest that Council endorse the project and designate that 2.5 million, and then the project would compete for a portion of state-wide allocation. Mr. Robin stated that the issuance of a bond is very time sensitive and believes that the City must decide whether or not to spend their bond by September. The proposed project will go before Council on August 6th. Ms. Cosgrove questioned whether any neighborhood opposition had been encountered at this point in time. Mr. Levits replied that none had arisen yet, but he is certain it will occur. AHB Minutes • August 1, 1996 Page 5 Ms. Cosgrove asked if other subsidies besides the bond money and the tax credit money will be sought. Mr. Levits replied that if the need arises to apply for CDBG or HOME funds, at cetera, they are prepared to go forward with that application. Mr. Robin questioned whether or not it may be helpful to receive a development fee rebate to lower rents, AMI percentages, or set aside additional units. Mr. Levits stated that such changes may be difficult since the rebate would not be a year -after -year income. He added, though, that it would mean borrowing less money, which would have some impact on the overall picture of the project's financial situation. Dr. Rex Thomas, President of Neighbor to Neighbor, stated that he believes the project will greatly assist in helping people make the next step up from public forms of housing. He noted that this project has not yet been presented to the entire Neighbor to Neighbor Board but firmly believes that all 12 members will fully endorse the project. He added that Neighbor to Neighbor has been approached a few times recently for projects like this one, but they have chosen to decline as partners, so this is not the first project that has come their way. Rusty Collins, also from Neighbor to Neighbor, stated that he feels this program would help the residents' self-esteem and would help form a sense of community. He noted that Neighbor to Neighbor will remain involved in the project after its inception for counseling purposes, at cetera. Ms. Cosgrove questioned whether or not Staff had any comments in terms of criteria for the bond or other observations. Mr. Krcmarik stated that the application came in the last full week of July, and it actually meets more than the criteria required. Therefore, Staff sees nothing from the formal adoptive criteria that would prevent this project from receiving Staffs recommendation. He added that the financials submitted with the application have been examined, and Staff finds Hawthorn to be financially sound. Moved by Ms. Cosgrove, seconded by Mr. Croissant: To recommend this project to Council based on the updated memo of July 31 st and the information presented to Staff. Motion passed unanimously. Mr. Waido gave the Board copies of the Boards and Commissions Manual for their reference. Ms. Cosgrove moved adjournment, seconded by Ms. Wagner. The meeting adjourned at 6:00 p.m.