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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 03/02/1995s/ AFFORDABLE HOUSING BOARD MEETING MINUTES March 2, 1995 The meeting of the Affordable Housing Board began at 4:00 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. AHB members present were Vice -Chairperson Craig Welling, Bob Browning, Susan Nabors, Ann Sanders, Christa Sarrazin, Tom Sibbald, and Sue Wagner. City Council liaison Gina Janett was present. Staff members present were Ken Waido, Julie Smith, Dickson Robin, and Joe Frank. No public comment was offered. Ms. Sibbald and Ms. Sarrazin noted their presence at the February 2, 1995 meeting. Mr. Sibbald stated that he was not currently involved in downtown development efforts. Moved by Mr. Browning, seconded by Ms. Sanders: to approve the minutes of December 7, 1994, and February 2, 1995, with changes as noted to the February 2, 1995 minutes. Motion approved unanimously. Mr. Welling led introductions for Sue Wagner, the new Board member. Ms. Wagner is a bank officer with Norwest, with concentrations in residential and commercial construction loans. Jennifer Carpenter from the Landmark Preservation Commission stated that the Commission was meeting with other boards and commissions to address issues of mutual concern. She felt that the Board and the Landmark Preservation Commission could have mutual goals in preserving historical sites for use as affordable housing. Ms. Carpenter reviewed the process by which building at Impala Village was delayed by the chicken coops. In her statements and subsequent interchange with the Board, it was noted that the demolition ordinance is new, and the Commission and staff are still becoming accustomed to its application. She stated that quick action had been taken on the waiver once the Housing Authority submitted it for processing. The chicken coops are now a nonissue. Mr. Sibbald questioned how the issue made it through the CDBG process. Mr. Waido explained the reliance on the County Assessor and the representation that no buildings were on the property. Concerns were expressed by Board members that no physical inspection had been made of the property to validate the elements of the permitting process. Further discussion centered around the amounts of eligible structures in Fort Collins, the lack of promptness of the Housing Authority in obtaining permits in this case, and the ensuing last-minute problems. In response to questioning, Ms. Carpenter stated that seven to eight permits per year were issued. Mr. Browning stated that physical inspections could be made for that amount of permitting. Mr. Sibbald stated the following concerns: Inexperienced developers may lack the sophistication to completely satisfy the permitting process; lack of site inspection on CDGB-approved projects; the Housing Authority should not be able to begin construction until permitting is completed. Comments AHB Minutes March 2, 1995 Page 2 were made concerning the restoration of the Linden Hotel and prospects concerning the Northern Hotel. Mr. Sibbald stated that the Northern would not be renovated until the City addressed downtown parking problems. Ms. Carpenter asked Board members to try to develop ideas concerning the development of the Northern and other older structures for use as affordable housing. Mr. Sibbald expressed his interest in working on a subcommittee formed between Historic Preservation and Affordable Housing to explore mutually beneficial avenues. Ms. Janett stated that Council would be considering parking alternatives within its consideration of a County -City -Civic Center project. There seems to be strong support for a mixed -use character of downtown, to include residential units and not simply focusing on downtown as a center for government offices. Mr. Waido explained staff work on the concept of time payments of utility impact fees for affordable housing projects. A policy currently exists for emergency situations, and staffs proposed draft substitutes "affordable housing" for "emergency situations." Where present policy demands payment at issuance of the certificate of occupancy, the new policy draft would call for payments extended over five years from the issuance of the CO. Wendy Williams noted problems inherent with the enterprise nature of the Utility Department. Prescedent exists for extending fee payments is to charge interest at prime plus four percent, by direction of Council that the Utility Department not compete with banks. Other policy states that the interest be equivalent to return from other investments. Board members expressed their opinion that the Utility Department would not have a return of prime plus four percent. Mr. Sibbald stated that: Council could determine that affordable housing serves a public need and can be assisted through Utility Department policy; and the notion of "equivalent returns" could include rates less than some of those currently earned by the City. Ms. Williams stated that Council could determine interest rates to be charged by the Utility Department. Mr. Robin advanced two possibilities for Board recommendation to Council: that Council lend money for fees from the general fund at a zero- or low -interest rate; or to access the affordable housing trust fund to subsidize the fees or lend money for the fees and thereby bypass involvement of the Utility Department. Reservations were expressed about a zero interest rate. Ms. Nabors suggested that an adjustable rate be considered. The draft by staff envisions, as a starting point, that the loan amount not exceed $100,000, with a maximum amortization period of five years. Mr. Sibbald suggested a loan amount being a set percentage of the total development expenses as being more fair and encouraging affordable housing investment. AHB Minutes March 2, 1995 Page 3 Mr. Browning expressed reservation of the loan concept to the extent that volunteer -supported projects would be donating time in order to support interest payments to the City; the City would also be benefiting from the volunteer labor. Mr. Sibbald suggested that affordable house trust fund moneys be used to pay the interest on such loans for programs that are: 1) nonprofit; and 2) focused on home ownership. Discussion ensued. Uncertainty was expressed over the longevity of the Affordable Housing Trust Fund. Mr. Waido noted that the Trust Fund is a line item on the Council -approved budget, to be approved, disapproved, or amended from year to year. He offered to take the proposal regarding a utility fee loan back for further refinement by staff. Discussion was held on desired language in that proposal. Mr. Sibbald expressed the following opinions about the proposed language: that the amortization period be greater than seven years; that the balance owed should not become due and payable upon transfer if the property remains as affordable housing; and the City can enforce collection efforts through normal lien procedures. Mr. Browning advised the Board the program by which Habitat for Humanity encumbers its homes. Mr. Waido stated that staff would work on the proposals further and resubmit them to the Board. Sam Betters and Don Aldridge of the Larimer County Home Improvement Program advised the Board on the progress of that program. They requested a recommendation from the Board to City Council to award matching funds for the programs application to the State Division of Housing. Last year the program leveraged Fort Collins funds at about a six -to -one ratio. The program had allocated funds of $296,827.00 and has disbursed about 68 percent of that total. Mr. Betters and Mr. Aldridge distributed a handout and displayed overhead projections breaking down program income, expenses, and disbursements by amount and category. Loans are low -interest, with rates from one to five percent. Money has been apportioned in relation to allocation, so the government entities receive benefits to their areas in relation to the funds contributed. The Fort Collins areas targeted thus far, particularly in terms of flood plain loans, has been the Alta Vista and Buckingham areas. Discussion was held concerning the problems in building in designated flood plain areas when either floods will not occur or the flood plain maps are outdated. The following statements were made in response to questions by the Board: Fort Collins awarded $22,500 last year in matching funds, of which $7500 was used for administration. As a result of a Coloradoan article, 48 requests for applications were received and three or four applications submitted. An extension can be requested for money not yet committed, but the money cannot be used for next -year matching funds. Of 38 other loans made, nine of them have been in Fort Collins. Targeted areas for the program were the CDBG neighborhood strategy areas. Those boundaries will be broadened in the future. Mr. Waido noted that while the designation target areas was a requirement of the program application, applications can be processed from any area. AHB Minutes March 2, 1995 Page 4 The request for matching funds this year remains at $22,500. Mr. Sibbald expressed concern that Fort Collins does not receive a fair proportion of benefit for its share of the population. He urged the program to broaden its appeal by marketing to areas outside of the designated target areas. Mr. Betters and Mr. Aldridge noted the degrees of response to marketing in various communities: Wellington, very good response; Laporte, poor response. The application for next year must be signed by the Mayor and submitted with the CHAS certification by May 10. No direct -mailing marketing has been done in Fort Collins. Other marketing has been achieved through door hangers, the Coloradoan article, Channel 27, and various neighborhood church announcements. Board consensus was to receive input from task force members concerning the program, particularly concerning Fort Collins share and administrative costs, and to decide on action to take at the next meeting. Ms. Smith advised the Board on the progress of the HOME program. A memo to Greg Byrne and Joe Frank was reviewed concerning the proposed course of the program in accepting applications throughout the year and deciding upon funding on a case -by -case basis. Applications would be reviewed by staff; submitted to the State Division of Housing for a pro forma analysis, sent to CDBG for review, and submitted to Council for approval. A draft application form was promulgated to the Board. The Board expressed concern over the promptness of a reply from the Division of Housing in the application process and retaining long-term affordability. Ms. Smith stated it would be her responsibility to monitor the progress of the applications. Mr. Waido noted the resale requirements of the program to ensure retention of affordable housing. In response to Mr. Sibbald's questions and concerns regarding the proposed draft, members of staff stated that: No. 1, "Eligible Housing," refers to individuals; No. 3 should refer to character of the applicant, as exhibited in No. 2; program targets are the same as appear in CHAS and consolidated plan guidelines; marketing of the program would take place in diverse population areas; and Council can be advised of remaining funds when they receive applications so that remaining funds would be properly allocated. Mr. Sibbald stated that he wanted to know what chart was being used in the rental assistance portion of the recommendations. In response to further concerns, staff stated that the case -by -case application process, rather than a quarterly review process, was being recommended in order to ensure expedience of response and was reflective of the most successful HOME programs seen in other communities. Moved by Ms. Nabors, seconded by Ms. Sanders: To recommend to City Council that application be processed based on the proposed case -by -case format. Motion passed unanimously. AHB Minutes March 2, 1995 Page 5 Mr. Waido reviewed the Planning and Zoning hearing concerning Pioneer Mobile Home Park and the proposed rezoning issues. P&Z took testimony for approximately an hour and then tabled the matter to its next meeting. In response to questions, Mr. Waido stated that, since no mobile home zoning was presently available within city limits, the City could be accused of exclusionary zoning if it did not approve zoning for a new mobile home park. The possibilities of such action was discussed. Other discussion concerning Pioneer was held. The present mobile home park property is not being used in conformance with the comprehensive plan. The comprehensive plan is being reformulated over the next 18 months. The mobile home parks infrastructure is failing; a massive investment would be needed for refurbishing. Spirited discussion was held concerning the issues of using eminent domain to acquire and refurbish the park, whether such expense would be unreachable for the City, whether residents' cost to move would be feasible, and if a new mobile home park would be economically viable. Mr. Browning expressed concern whether the rezoning effort at Vine was halfhearted and ultimately designed to build higher -level homes on the property. The majority of the Pioneer mobile homes would not be accepted in other mobile home parks within the city. The Board expressed its wish to continue to receive all available information on this issue. Ms. Janett noted that no staff recommendation has been received by Council on this issue. She expressed concern over the affordability of the City retaining the present property. Following further discussion on the price differential to the City of retaining the present property versus developing other property, Ms. Janett suggested that comparisons be done for these options. She further suggested that the Board write a letter to the Mayor expressing its concern and recommendations. Ms. Nabors stated that she would work with Ms. Cosgrove on such a letter. Discussion was held on the various components needed to formulate cost assessments on eminent domain versus privatetsubsidized mobile home park development. Ms. Janett expressed dismay that the community seemed not to be supportive of ensuring that adequate housing be available for the Pioneer park residents. Discussion was held concerning public perceptions of proposed or potential affordable housing. It was agreed that affordable housing would be a worthwhile issue to be addressed by the new comprehensive plan. Mobile home affordability was discussed. A used single unit may cost $7,000-8,000; a double -wide, $18,000-22,000. The unhappiness of the citizens and P&Z Board members at the last meeting was discussed. Ms. Janett spoke of the zeal of some opponents to the relocation of the park, including researching of park residents' criminal records. Decrease in adjacent property value has been suggested by opponents; Mr. Sibbald cited a Lincoln Land Institute study that could find no decrease in property value due to adjacent affordable housing. ABB Minutes March 2, 1995 Page 6 The motives of opponents to affordable housing development were discussed. Views were asserted that some expressed concerns are genuine, others, a smoke screen to validate negativity. Mr. Sibbald stated that neighborhood empowerment has worked to the city s detriment in organizing pockets of self-interest that serve to frustrate efficient planning and development processes. Mr. Robin raised the possibility of inclusionary zoning in which a certain percent of property would be automatically zoned for affordable housing. The City has researched this avenue in the past and has not adopted it. Mr. Sibbald expressed the concern that such a strategy would drive up building prices on all fronts. Mr. Waido reminded the Board of the upcoming mail -in election on April 4. He announced that Prime Residential, Inc., has entered into negotiations to purchase Courtney Park at Lemay and Harmony, rehab it using IDRB funds, which would then lock at least 50 units into housing for low-income tenants. The corporation has told staff that those units would remain affordable for 20 years at 50 percent of median income. Mr. Sibbald expressed objection to the proposal. He stated that the 20 percent of units to be considered affordable would not meet State guidelines for tax-exempt financing, and any such proposal should meet those guidelines. Mr. Welling informed the Board that at the State Legislature, Bill Kaufman is proposing that an interim committee be appointed to look at affordable housing issues. Peggy Reeves will be supportive of that issue. In response to questions, Mr. Welling said that he would research the bill number and the committee from which it originated. Ms. Sanders moved adjournment, seconded by Ms. Sarrazin. Upon a unanimous vote, the meeting adjourned at 6:30 p.m.