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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 12/01/19940 AFFORDABLE HOUSING BOARD MEETING MINUTES December 1, 1994 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. AHB members present were Chairperson Mary Cosgrove, Craig Welling, Susan Nabors, and Ann Sanders. City Council member Gina Janett was present. Staff member present was Ken Waido. Absent a quorum, Ms. Cosgrove called for public comment. Mike Gidder of the City's Cable TV Department announced that a program called "Perspectives" on Channel 27 will focus on affordable housing, to be broadcast December 15, 1994, at 8:00 p.m. Tom Sibbald, Sister Mary Alice, and Shelly Stephens will be on the panel. There will be studio audience and call -in viewer participation. Mr. Gidder invited the Board to attend and participate. Rusty Collins, Executive Director of Neighbor -to -Neighbor, stated the two reasons for his attendance: one, his agency's interest in pursuing HOME funds; two, to explain the reorganization of the agency during his tenure. The board has reorganized for 15 directors. They had a retreat in November for vision planning, developing a 12-month business plan, and a five-year plan. They are proud of their transitional housing program and are planning to double their 20 units and expand into Loveland. Mr. Collins touched on their negotiations with private property owners to secure property for housing. They are looking to expand their mortgage counseling, transitional housing, and damage deposit programs into Loveland. Mr. Collins spoke of Neighbor -to -Neighbor's goals in broadening its revenue base. They presently receive most of their income from grants. They are studying the possibility of establishing a foundation to gather income, and enhancing their services. They have a computer system that had enhanced inter -office communication and will tie into their Loveland satellite office. Shelly Stephens, Director of the Fort Collins Housing Authority, distributed a handout showing their current programs and funding commitments. She was accompanied by Mike Prenzlow of the Housing Authority Board. The Housing Authority exists as a result of the Housing 1937 act and works to acquire, develop, and building affordable housing units. The Housing Authority presently has 154 units, some of which are 20 to 30 years old. HUD is appropriating money to modernize older units and bring more units into ADA-type compliance. The Housing Authority is proud of the "high performer' designation that they have received from HUD. Ms. Stephens further stated the impetus behind the Section 8 program as assistance for low-income minority populations - traditionally "projects" residents - particularly in metropolitan areas. The Housing Authority sees this program as AHB Minutes December 1, 1994 Page 2 important in placing low-income residents throughout the community where they have exposure to and can learn to emulate the mores and values of middle-class families. The Housing Authority presently has 400 units within the Section 8 category, and Ms. Stephens expressed her gratitude to the private sector for their role in housing assistance. Ms. Stephens noted the $2 million that the Housing Authority pays out in rent subsidies. In public housing and Section 8, renters pay no more than 30 percent of their salary. That figure is adjusted for certain other necessary family expenses. The Housing Authority has cooperated with the Utility Department to alleviate the situation of a renter leaving while owing back utility payments. The Housing Authority is cooperating with local bankers in using CDBG moneys and its own funds to acquire loans with which it acquires existing units for affordable housing. The eligibility for this housing is determined by the Authority, without the need to follow federal compliance. The Authority has 123 units under that program. The Housing Authority presently leases single -room -occupancy units to attend to homeless individuals. It has also received a grant from HUD to develop further units. The Authority acquired the property at 811 Myrtle that will provide 15 SRO units. The Authority will rehabilitate that property and will, with the cooperation of other agencies, offer a continuum of services, to include life skills, vocational counseling, and mental health. The Housing Authority is still looking for 12 additional units to complete its adherence with the HUD grant. The Fort Collins Housing Authority also manages, by contract, the Wellington Housing Authority and the 42 units included within that program. Ms. Stephens noted the Housing Authority's intent to modernize the Wellington units. Ms. Stephens noted the recent Chamber of Commerce solicitation for comments. She has responded by noting the lack of mention of affordable housing in the Chamber's statement. She reminded the Chamber that although low-income people do not have as much money to spend, they have less discretionary money and spend a higher percentage for basic need items, thus keeping their money within the community. The Housing Authority presently has eight home ownership units that have been developed through revenue -sharing funds. Two units have been foreclosed on and are presently for sale. Ms. Nabors noted a qualification of 90 percent of median income. The down payment required is three percent. The homes have sold for between $43,000 and $52,000. The Housing Authority has broken ground at Hillcrest to develop 26 units. The City has allowed for an expansion of the Authority's offices and modernizing its computer and phone systems. The Authority's Board meets once a year, in March or April, and sets goals and plans for the coming year. The Board's focus AHB Minutes • • December 1, 1994 Page 3 is to take a proactive stance to seek innovative funding means to better meet the housing needs of the community. Ms. Stephens expressed concern over the future of continued federal funding. The Rocky Mountain region of eight states receives about three percent of the total federal housing allocation, and Ms. Stephens expressed satisfaction with Fort Collins' ability to receive its share of those available regional funds. The Housing Authority wants to aid people to move them from dependency to self- sufficiency. It sees the problem as not just dollars -and -cents but through a gamut of personal and social issues that need to be addressed in order for individuals or families to achieve independence. The Authority sees such programs as being a requirement of future federal funding. Ms. Stephens spoke of the problem of property acquisition. The escalation of values in Fort Collins have made most properties unreachable for affordable housing development. The Authority is looking at ways of providing tax benefits or other incentives for sellers to provide land for affordable housing. The Authority is trying to educate the public on fair housing issues and the rights and responsibilities of landowners and participants in the affordable housing arena. The Housing Authority is further looking to develop cooperation rather than competition with other communities in developing a regional affordable housing philosophy. Ms. Stephens spoke of the need to educate the community about the importance of this endeavor. Bank One, in cooperation with the Fort Collins, Loveland, Wellington, and Larimer County Housing Authorities has developed a video on this subject. Ms. Stephens invited the Board to review it. Another video was developed targeted at landlords and encouraging participation in the Section 8 program. In response to questions, Ms. Stephens noted the goal of increasing the number of units by an average of ten percent per year. Neighborhood opposition is seen as a problem. Ms. Stephens sees further barriers as being the high cost of land and rising construction costs. Private development of affordable housing is not feasible without subsidies. The Housing Authority is largely exempt from development fees, although some fees do come into play when conventional -loan funding is being used. Note was made of the Community Development Corporation that was originally put in place by Bank One and Home Federal to address the Post Office building. That entity is still in place, has annual meetings, and would need funding help from other agencies to expand its role to develop affordable housing. Ms. Janett noted an upcoming meeting of the CDC which she will be attending. In response to further questions by the Board, Ms. Stephens spoke of the waiting list at the Housing Authority of two and a half to four years. The waiting list is kept open. It qualifies people .with 50 to 80 percent of median income. There are presently 2,000 to 2200 households on the list. Ms. Stephens spoke of the nature of the applicants and the advice given by the Housing Authority to submit the AHB Minutes December 1, 1994 Page 4 application now. Higher rankings will be given to people who undertake a self- sufficiency program. Ms. Cosgrove spoke of her positive experience with awarding higher rankings through participation in self-sufficiency training. The Housing Authority may place five people in a good month. Ms. Stephens stated that the Housing Authority had no units for emergency homeless shelter. The Authority presently sends those people to "The Mission" or Neighbor -to - Neighbor. The Authority owns a parcel of land and is looking for the best utilization of that land and the City funding to accomplish development. Ms. Stephens mentioned a 203K workshop that HUD is holding in Denver on December 7th and invited Board members to attend. She and Ms. Sanders agreed that the application of 203K in Fort Collins is presently somewhat limited. Ms. Cosgrove inquired whether unused funds for transitional housing had been reprogrammed for other needs. Ms. Stephens will follow up in researching that issue. Ms. Stephens noted the difficulty for people at the top end of the Section 8 scale making the transition to house ownership. Discussion was held concerning other communities' establishing an enterprise zone for areas to develop affordable housing. Ms. Stephens spoke of the Housing Authority's Team Self -Sufficiency program. As a family's income increases, the additional rent they pay to the Housing Authority is escrowed. When the family completes the self-sufficiency contract, that money is returned to them to be used at their discretion. Ms. Stephens and Ms. Cosgrove spoke of the provisions and enforceability of the Team Self - Sufficiency contract. The Poudre Fire Authority's letter to the Board and the background of the discussion with the Fire Authority were discussed. The intent of Board members was to express concern that very high roofing standards may affect the affordability of the units being developed; further, if standards are relaxed for single-family residence, multifamily residences should also be included in that philosophy. The Board expressed confusion on the meaning of the Fire Authority's letter and reiterated the Board's concern that safety of residents and affordability of their housing both be kept as viable concerns. The Fire Authority will be asked for further clarification. The Chamber of Commerce letter was discussed. Mr. Waido noted, in response to Mr. Sibbald's letter, that the Chamber letter was received too late to bring it up for discussion at the November meeting; that the letter was distributed at the November meeting; that Mr. Waido had called the Chamber, expressing concern that no response could be made by Affordable Housing, CDBG, or Planning and Zoning by the Chamber -imposed deadline; and that the Chamber had assured that the process was just beginning and responses could be received at any time. AHB Minutes • • December 1, 1994 Page 5 Mr. Waido further stated his understanding of the letter: that the Chamber wished to take a more proactive stance in community development; that they wished to make the business perspective better known within that community development; and that the letter presented a first draft that they wished to have some entities, including the Affordable Housing Board, to comment on. The Board discussed several areas: the sense that having places to live makes a community more attractive to business; and a California model of having new businesses participate in meeting the affordable housing needs that they create. Ms. Janett informed the Board of Council discussions on that issue and possible inclusion of that philosophy in the new comprehensive plan. The references to CSU in the Chamber letter were discussed. Higher enrollment will add to the Fort Collins housing problem. The Chamber does not seem to be clear on the fact that CSU is exempt from City policies. The Board expressed its desire that the Chamber address the issues of affordable housing and ways in which the business community can enhance the city image by support of affordable housing availability. Board members can send their individual responses to the Chamber. Mr. Waido announced that Julie Smith from Boise, Idaho, has been hired on a half-time basis as the HOME Program Coordinator. Dickson Robin, from Alberta, Canada, has been hired as a city planner, replacing Mike Ludwig, as Affordable Housing Planner. The City will receive $500,000 in funds from a HOME grant, and administrative costs for Ms. Smith will be covered through apportioned money from that grant. The City will be soliciting applications for HOME grants. Julie Smith will aid applicants for those grants. CDBG has announced its interest in processing recommendations to Council for those grants. Ms. Janett expressed her preference for a single application for all grants. The mechanism of matching funds was reviewed. Mr. Waido explained the HOME package and CHDO funding in detail. Funding in fiscal year 1994 must be contracted for within two years and the project completed within five years of the contract. Mr. Waido informed the Board of the upcoming affordable housing workshop. In response to Ms. Janett's inquiry, he stated that manufactured housing, when on a permanent foundation, is subject to the Uniform Building Code and becomes a matter for covenants rather than zoning. Discussion was held on interacting with the Commission on the Status of Women and statistics that could be generated from the Housing Authority that could be useful to the Commission's task force report. The meeting adjourned at 6.00 p.m.