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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 07/11/1996APPROVED AUG 1 1996 AFFORDABLE HOUSING BOARD MEETING MINUTES July 11, 1996 Mary Cosggrove, Chairperson (work - 667-3232• home - 493-9164) Gina Janett, douncil Liaison The meeting of the Affordable Housing Board began at 4:05 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. Board members present were Vice -Chair Susan Nabors, Bob Browning, Stacy Buffum, Sylvia Glass, and Terry Wahl. Board members Joanne Greer, Mary Cosgrove, Susan Wagner, and Bruce Croissant arrived shortly after the meeting began. Staff members present were Ken Waido and Dickson Robin. Betty Maloney and Lou Stitzel were present as observers. Ms. Nabors welcomed the new Board members. Each Board member and Staff member present introduced themselves for the benefit of the newly elected members. Ms. Buffum, who had not previously attended, stated that she is a mortgage lender at the present time but previously was a counselor and had dealt with housing issues in that regard. She stated that that is where her interests lie and being a mortgage lender adds to knowledge with regard to the housing issue. Mr. Wahl, who had also not previously attended, stated that he works for CARE Housing and most of his experience has been with the private sector. He moved to Fort Collins almost three years ago and has been with CARE for a little over 1 112 years. He is very concerned about the affordable housing situation, and that is the reason he applied to the Board. Public comment was solicited. Ms. Maloney, from the Affordable Housing Task Force, introduced herself to the new Board members. She noted that a number of nonprofit groups have, over the years, been bringing a number of affordable units on line each year. With the displacement of the Pioneer Mobile Home Park, the affordable housing production is now further behind than ever. At this point all the new units being built are simply replacing what is being lost. Ms. Maloney stated that perhaps greater emphasis should be placed on maintaining what affordable housing there is in the community. She added that it would be helpful if Fort Collins had an adequate relocation policy that spelled out the procedures to follow when dislocation projects arise. She also hopes the City Plan will set land aside in various parts of the city for mobile home parks. She added that at this point such does not seem to have surfaced in the final drafts of the City Plan documents. Ms. Maloney went on to say that a committee has been set up to attempt to work with the County on the issue of mobile home properties. She said that some of the Commissioners have been spoken to, and the Commissioners have stated that they want a unified proposal from the various groups. Mr. Waido commented that the City does believe in preserving the existing housing stock. He noted that some zoning changes were recently done in the older neighborhoods to prohibit conversion of some housing in an attempt to preserve older housing. Also, money is given to the Larimer Home Improvement Program, which is aimed at preserving existing housing stock. AHB Minutes July 11, 1996 Page 2 Regarding the relocation policy, Mr. Waido stated that the City is required by law to deal with relocation of families for any project which is funded with Federal funds. The City has thus far successfully steered towards new development versus urban renewal projects with Federal funds. Mr. Waido added that he has taken a relocation policy to Council three times in the past six years, and the full Council has yet to reach consensus as to the end need for a local relocation policy. Regarding the City Plan process and the designation of sites for mobile home parks, Mr. Waido stated that currently the City Plan is in the stage of developing the Structure Plan. That portion of the City Plan does not provide the level of detail to specifically designate areas for mobile home parks. However, current work is underway on the Principals and Policies portion of the City Plan, and Mr. Waido stated that he has personally written in sections which include mobile homes/manufactured housing as housing which needs to be provided for in the city of Fort Collins. Mr. Waido added that the City can zone properties, but that is not in any way going to guarantee that those uses get built. An example of such is the Dry Creek project in which no development has happened on that property to date. He noted that unless the City wants to subsidize projects with funding through either general revenues or Federal programs, the private market must then become the investor. The private market must first perceive a need and have sufficient profitability before monies will be invested. Ms. Nabors noted that a national firm that develops mobile home parks had looked at development in Fort Collins and chose to instead go down to Denver because they do not believe they can have sufficient margins in Fort Collins given development costs, at cetera. Mr. Wahl stated that he believes it is important to examine the City's relocation policy at this point in time due to the fact that the issue appears to be getting worse. He suggested perhaps if the Board could reach a consensus on a recommendation for a relocation or displacement policy, then that recommendation could be sent to Council repeatedly, if necessary, in an effort to alleviate the problem. In response to questioning, Mr. Waido stated that Terry Cove Mobile Home Park will likely be eliminated through redevelopment. However, he stated that with regard to Timber Ridge, the only change underway at this time that he is aware of is that the ownership has changed hands. To his knowledge, there has not been any discussion with either County Staff or City Staff on any type of redevelopment proposal for the site. Mr. Waido noted that Timber Ridge is located in the County, and therefore, even if the City had a relocation policy, it would not apply to that park, and he does not believe the County has a relocation policy of its own. Mr. Robin referenced an article contained in the Board's packet, which discussed the mobile home closure policy utilized by a town in Michigan. He stated that the policy is now being challenged in court. He added that Paul Eckman, Assistant City Attorney, called Michigan to discuss the issue. Mr. Robin stated that he has not been able to talk with Mr. Eckman since to discuss whether or not a similar policy is something Fort Collins should pursue. Mr. Robin said that Eugene, Oregon also has a similar policy, and he added that he would include a copy of that article in the Board's next agenda packet. He also suggested perhaps Mr. Eckman could come to speak to the Board regarding his assessment of the issue. Mr. Waido stated that he would include drafts of the relocation AHB Minutes • • July 11, 1996 Page 3 policies that have been developed in the past in the Board's packet. Ms. Nabors suggested that Staff, as part of the next agenda, give the Board some sense of the date of establishment of the existing mobile home parks and their expected useful life cycles. Mr. Waido stated he had a very dated report that was done by the County in the late 70s that he would look at. Mr. Robin added that an inventory was done by an individual working with the Pioneer residents to determine how many unit exist in the area. He suggested perhaps that information could also be obtained. Moved by Mr. Browning, seconded by Ms. Glass: To approve the May 2nd, 1996, and June 6, 1996, meeting minutes. No corrections were noted. Motion passed unanimously. Ms. Nabors noted that at the May 2nd meeting Mr. Robin had said he would distribute a copy of the report that he had given to the Growth Management Committee, and she stated she had never received a copy of that report. Mr. Robin apologized and said that copies would be given to the Board next month. Mr. Waido addressed the Larimer Home Improvement Program's request for matching funds. He noted that this item has been on the board's agenda for the last two months. He also noted that the request is for $22,500, which would be allocated out of the City's Affordable Housing Fund. Moved by Mr. Browning, seconded by Mr. Wahl: To approve the Larimer Home Improvement Program's request for matching funds. Motion passed unanimously. Linda Devocelle, from the City of Fort Collins Natural Resources Department, spoke to the Board regarding the proposed wood smoke and radon ordinances. The Board received information outlining the proposals in their packets, and Ms. Devocelle gave the Board a presentation on the issues involved. In regards to the wood smoke issue, Ms. Glass questioned if replacement of improper wood burning systems could be funded through LHIP. Mr. Waido stated that if the fireplace was the only source of heat in the house, LHIP would definitely be an option due to the fact that LHIP is geared toward health and safety. In response to questioning, Ms. Devocelle stated that the wood stove and wood stove inserts have not been targeted in the past, and by expanding the program in the way suggested by Staff, those individuals could be targeted harder and perhaps a greater increase in turnovers of the wood stoves would arise. She noted that the current program is working, but Staff feels if greater effort is given to the program, it will work even better and a continual decrease in smoke emissions will result. In regard to impacts on affordable housing, Ms. Devocelle stated that the only implication would be, if a person is living in an older home and an ordinance was passed, that person could be required to bring their wood -burning system up to ordinance requirements, and, of course, costs would arise from that. Ms. Devocelle added that public outreach has identified affordable housing as a very important issue, and Staff has given a great deal of thought to it. She noted that the ZILCH program has never been structured to consider income base and perhaps the possibility of that structure should be examined. AHB Minutes July 11, 1996 Page 4 Ms. Wagner questioned whether or not the ZILCH loans were unsecured loans. Ms. Devocelle replied that liens were placed on the properties to secure the loans. Ms. Wagner questioned whether or not an inspection was done on the project after its completion. Ms. Devocelle said that a building permit is required and an inspection is also required upon completion of the project to ensure proper installation. She added that as few as two or three people have requested to do the projects themselves. She stated in those cases the loan applies only to the material costs, and no monies are loaned for labor costs. Ms. Devocelle said that credit checks are utilized for the loans, and in six years, the City has had problems with only one loan. Moved by Mr. Browning, seconded by Mr. Wahl: To direct Ms. Devocelle to relay to Council that no major concerns were felt by the Board in regard to the wood smoke issue. Motion passed unanimously. In regards to the radon issue, Ms. Glass stated that she would like to see research undertaken on the potential conflict between the Uniform Building Code and future imposition of a City ordinance for radon. Her hopes would be to delay a City ordinance until the UBC standards are released to avoid conflicting regulations. Ms. Devocelle replied that the Building Department feels the same way in that they do not want to adopt something that has not been adopted by the National Building Officials. Ms. Nabors questioned whether or not consideration is also being given to non-residential buildings. Ms. Devocelle stated that studies have been undertaken on schools and other non-residential buildings. She noted that discussions have gone on within the Staff on whether new construction means single family, multifamily, non-residential, or all of them. She added that with controlled HVAC systems, a greater controlled equilibrium exists than in houses. This type of controlled environment will result in less radon exposure, but Ms. Devocelle agreed that the issue should be explored as to what types of new construction should be considered for the ordinance. Ms. Devocelle stated that she will return to the Board next month with the final proposal on the radon. She added that Staff feels very strongly at this point that radon information should be required to be given to the home buyer at the point of sale. Ms. Nabors stated that it would be very helpful to the Board if Ms. Devocelle could return with an estimate of anticipated impacts on the affordability of housing. Mr. Browning stated that his organization utilizes the radon systems in their houses, and that expense is $100. Ms. Devocelle added that the costs of installing a system will vary depending on the type of system used. The Board discussed election of Board Officers: Chair and Vice -Chair. Moved by Ms. Cosgrove, seconded by Ms. Wagner: To elect Mr. Browning for Chair and Ms. Greer for Vice -Chair. Ms. Greer asked Ms. Nabors if she would like to continue on as Vice -Chair. Ms. Nabors stated that she could remain as Vice -Chair. Ms. Greer then amended the motion to have Ms. Nabors remain as Vice -Chair. Motion passed unanimously. Janet Meisel, Project Manager on the Parks and Recreation Policy Plan Update, discussed the proposed neighborhood park land fee changes. The Board received a handout on the AHB Minutes • • July 11, 1996 Page 5 issue, and Ms. Meisel gave a short presentation on the information. She noted that she would like feedback from the Board on two issues: Changing the fee to the five -tier structure, and use of the CPI. Mr. Wahl noted that units are not being built under 700 square feet and added that such a construction, he believes, would actually be considered an addition or something other than a new structure. He stated that the fees per square footage need to be weighted differently. Ms. Glass agreed that she would like to see the fees be revised so they are more proportionate and stated that the scale does not address the affordability issue in a positive way based on the square footage. Ms. Cosgrove also agreed and suggested that Staff determine more realistic numbers of the square footage of affordable units being built. A suggestion was made to perhaps drop fees for projects that are considered to be affordable housing. Ms. Meisel stated that she felt that whole issue would become an element of the rebate process. Ms. Cosgrove noted that the difficulty with the rebate is the need to get a loan based on total costs up front. Mr. Robin pointed out that a delay program does exist in the rebate program where qualified affordable housing projects can apply to the City and have payment delayed until CO is issued or December 1st. Ms. Stitzel stated that the fees are still costly to the nonprofit organization because a letter of credit, which costs $500, must still be obtained up front. Collectively, the Board felt that they would like to see some greater concession for affordable housing structure. They reiterated that one recommendation would be to evaluate the square footage categories that are being chosen and adjust those to what is being built. Ms. Cosgrove questioned the possibility of presenting the fees in an Option 1 or 2 manner, in which, if the fees are approved, then an Option 2 would be more supported by the Board. Ms. Meisel stated that she would have to think about that possibility and noted that if the tier structure is changed, then it impacts the current fees that have the tier structure in place. Therefore, she suggested the option of re-examining the issue in a year when an update is undertaken and looking at the tier structure and tracking the types of units coming in over a period of time. In regards to the CPI, the Board expressed their feeling that they were still not in favor of the CPI proposal. Ms. Meisel stated that she could relay such feelings to Council. Mr. Robin gave the Board copies of the new regulations for the impact fee program. The new program is based on the recommendations made at the May Board meeting. Council adopted the Board's recommendations on the program. Council has requested that the issue be revisited to examine the figures more closely. Mr. Waido stated that for the Board's next meeting, Staff will bring back some policy issues for the Board to examine. Mr. Waido added that problems exist with the proposed new fee schedule, in that significantly less monies could be rebated than would be rebated under the previous schedule. Mr. Robin stated that Staff intends to outline an example of such at the next meeting. Ms. Nabors requested that all information on the issue be provided prior to the meeting. In the interest of time, the Board opted to postpone discussion of the additional items listed AHB Minutes July 11, 1996 Page 6 on their agenda to a later date. Ms. Cosgrove moved adjournment, seconded by Ms. Greer. The meeting adjourned at 6:00 p.m.