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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 11/09/1995CDBG COMMISSION MEETING MINUTES November 9, 1995 The meeting of the CDBG Commission began at 6:25 p.m. in the Community Planning Conference Room, 281 North College Avenue, Fort Collins, Colorado. Commission members present at the meeting included Chairman Dan MacArthur, Linda Coxen, Bobbie Guye, Tom Hartmann, Holly Sample, William Steffes, and Joe Zimlich. Staff members present included Ken Waido, Jackie Davis, Dickson Robin, Julie Smith, and Mary Hile. Ms. Guye noted that her presence at the previous meeting was not noted in the minutes. Mr. Steffes noted regarding the HOME program that FHA mortgages are harder, not easier, to approve than conventional, due to the second mortgage placed on the property. Moved by Mr. Steffes, seconded by Ms. Guye: To amend the October 12,1995 minutes as noted. Motion approved unanimously. Moved by Mr. Steffes, seconded by Mr. Hartmann: To approve the minutes as amended. Motion approved unanimously. Mr. Waido reviewed the history and progress of the Pioneer set -aside fund, the RFP that was promulgated, the response thereto, and the presentations to be made at the meeting. He noted that if no decision was made at the present meeting, the March 31, 1996 deadline for allocation should be amended. In response to questions, Mr. Waido also reviewed the City Council approval of the rezoning request by Mr. Parsons and the letter Mr. Parsons sent to the Commission. Discussion was held concerning the format to be used for the applicant presentations. Moved by Ms. Coxen, seconded by Mr. Zimlich: To allow up to ten minutes for presentation by each applicant, with a ten-minute question - and -answer session to follow. Commission members expressed concern in balancing a fair opportunity for applicants and the deliberating efficiencies of the Commission. Motion failed, 1-5. Moved by Mr. Steffes, seconded by Mr. Zimlich: To allow five minutes for each applicant presentation, with a ten-minute question -and -answer session to follow. Discussion was held on whether more time should be allowed for questions. Motion carried, 3-2. Moved by Mr. Steffes, seconded by Ms. Coxen: To suspend the rules to allow presentation by Mr. Parsons using the same format as the applicants. Discussion was held concerning: The equal application of rules to all parties; the unusual nature of the zoning situation; and the recent Council decision on rezoning. CDBG Commission Minutes November 9, 1995 Page 2 Mr. Waido noted the wide range of discretion that the Commission had in recommending funding to an applicant or reopening the process if deemed advisable. Motion carried, 4-2. APPLICATIONS IN RESPONSE TO THE PIONEER RFP Applicant: Fort Collins Housing Authority. Shelley Stephens noted the collaborative efforts being made by the applicants and the need as seen by all to have the Pioneer situation addressed effectively. The funds requested by the Housing Authority would provide gap financing for infrastructure and improvements on a five -acre parcel owned by the Authority. The property will accommodate 33 three -bedroom modular homes on permanent foundations, with priority given to Pioneer residents. The selling price of $75,000 would allow for home buyer assistance programs. Ms. Stephens distributed an architectural rendering of a proposed community building for the development. Potential problems are being addressed concerning noise from the nearby railroad. The project could achieve a stage of completion by July. In response to questions by Commission members, Ms. Stephens stated: The homes are manufactured housing, set on permanent foundations, and will qualify for HOME assistance. No consensus for approval has been heard from Pioneer residents. The homes will all be for -sale units. Ms. Stephens further stated: The Housing Authority did not participate in the Dry Creek rezoning due to the unknown conditions, mitigations, time frame, and costs; however, should the Commission decide to support the Dry Creek project, the Housing Authority would work cooperatively for the community benefit. Ms. Stephens agreed that CDBG funds are equivalent to the amount needed for improvements such as water, sewer, and utility lines. The Housing Authority is exempt from certain City fees. The homes will be 950-1250 square feet and may have to be reconfigured for window placement and insulation to accommodate noise abatement and handicap accessibility concerns. Fencing will be placed as part of the landscape requirements. Ms. Stephens noted that the Authority generally provides five handicap - accessible units; more could be incorporated if necessitated in the selling process. The $25,000 loan fees is due to the over $2 million loan needed for construction and modular purchases. The CDBG funds would be used for gap financing and would lower the home prices from $82,000 to $75,000. Eligible families would probably have a $20,000-30,000 yearly income. CDBG Commission Minutes • November 9, 1995 Page 3 Since there are no subsidy funds, other than the CDBG and its 20-year affordability requirement, HUD restrictions would not apply. Pioneer residents would have a 90- to 120-day preference window before the housing was made available to all qualified applicants. The 20-year affordability is accomplished by deed restriction. The laundry facility in the community center would be maintained by a private laundry company. Ms. Stephens discussed the placement of various units within the development. In response to a subsequent question, Ms. Stephens stated that less funding would reduce the affordability; minimal funding with a 20-year encumbrance may not be practical. Applicant: Neighbor to Neighbor, Inc. Rusty Collins noted a correction on the bottom of Page 1 of the application, to change $316,000 to $322,000. He reviewed the program of Neighbor to Neighbor and its applicability to Pioneer residents. The residents can use Neighbor to Neighbor to find available housing of all types, mortgage counseling, and markets for trailers. Mr. Collins introduced Jeff Donaldson. Mr. Donaldson stated his intent to provide $750 of relocation money per family and asked the City to match that amount in order to enable Pioneer residents to realize more options and utilize those options more effectively. Mr. Collins introduced Beth Music. Ms. Music detailed her counseling services to Pioneer residents. She has counseled 60 families; 10 families have moved out of the park to various types of housing. Home ownership is not a viable option for many residents. Some families owe trailer mortgages in excess of $5,000. An estimated 30 percent of the resident households earn $1,000 or less per month. Ms. Music expressed confidence in the potential of Mr. Parsons' project and stressed the need for funds to go directly to the families needing assistance for the various expenses necessitated in moving. Mr. Collins stated that the application is for a successful program already in place that promotes private enterprise. He stated that Mr. Donaldson's commitment represented a $150,000 expenditure and asked the Commission to match those funds. He reviewed the various costs needed by the families to move from the park. Mr. Collins further noted other contributors to the Pioneer effort, including matching grant challenges not mentioned in the application. He stated that Neighbor to Neighbor works tightly with TRAC and would be providing counseling for Pioneer residents moving into TRAC units. Mr. Collins reiterated that the application presented the most effective use of the money by going directly to the families and CDBG Commission Minutes November 9, 1995 Page 4 using a successful program that is already in place. Ms. Music pointed out that checks would be issued for relocation costs, rather than directly to the families. Ms. Davis stated, in response to questions, that: 1) the requested funds falls within the allotted percentage of CDBG administrative money; 2) Davis -Bacon wages would not apply. Mr. Collins stated, in response to questions, that he felt confident that $50,000 would be raised by other sources. Only 40 or 50 trailers can be moved from Pioneer to the Parsons development. The $50,000 could be used to help refurbish those trailers that are moved. Mr. Collins further explained that of the $304,000 project moneys, $300,000 would go directly to families' assistance, and $4,000 would be printing/information costs. He could not give odds on the ability to place a certain number of residents in housing by a given time. Ms. Music noted the numbers involved in placing residents in the Parsons, TRAC, and Housing Authority projects. She felt that through the combination of available programs, there would be a high rate of relocation in the coming months, particularly with a matching CDBG commitment of $150,000. Ms. Music outlined the problems of relocating trailer owners. Some owners can move their trailers; others can sell their trailers. Some have existing mortgages and cannot be moved or have no place to move. In response to questions, Mr. Collins reviewed the minimum amount needed in order to cover the expenses listed on the budget page and to cover the additional staff needed for the program. Remaining funds would be divided among the families. He noted that Neighbor to Neighor has absorbed its own personnel costs to date. In response to questions, Mr. Collins declared the following community benefits: publicizing the CDBG and Mr. Donaldson's involvement; the proposed dollars would stretch farther than any other allotment; and the affected families would receive a positive benefit. Ms. Music and Mr. Donaldson reiterated the lasting benefit that the families would receive through counseling. She estimated the following breakdowns for the park: 10 families moved to date; 165 to 170 households remaining; 35 trailers are rented; 139 out of 181 trailers can be moved. Applicant: The Resource Assistance Center for Nonprofits, Inc. Ms. Stitzel reviewed the intent of the proposal to place 14 permanently affordable townhomes near the Pioneer park. She noted the intent of TRAC to add permanently affordable units to the community housing stock; to meet all HUD guidelines of affordable housing; to maintain the properties in sustainable and stable neighborhoods. CDBG Commission Minutes • November 9, 1995 Page 5 Ms. Stitzel reviewed the status of TRAC's response to the City RFP concerning the SID properties on Troutman and JFK. The City will evaluate the bid by November 18. TRAC will apply for HOME funds as soon as proposal is approved. State HOME will look favorably on the project for future funding. The total project would be 14 townhomes of three- and four -bedroom units, and a community room. Costs would be $49/square foot excluding the land; $52/square foot including the land. In response to questions, Ms. Stitzel explained that the subgrantee match referred to a line of credit. TRAC uses a sliding scale to qualify residents for reduced mortgages that fit within 30 percent of their income. The income spread for Pioneer residents is 25 to 65 percent of median income. Ms. Stitzel outlined the funding already in place as Colorado National Bank, CARHOF, and the Kellogg grants. At least one unit will be completely handicapped - accessible. The Pioneer CDBG money shown on the application is the funds contained in the current request. The Fort Collins CDBG item would come from the previous CDBG grant. That money had been designated for two projects; this project would represent the first of those. Ms. Stitzel further stated her anticipation that a family would be able to move in by the end of August. The HOME funds have not been requested because TRAC does not have control of the land, but under HOME and HUD guidelines, the prospects are good for receiving those funds. She explained how development impact fees can act as a subsidy to reduce costs. In response to questions, Mr. Stitzel explained their bid for the SID property for a total of $75,000. The property is currently zoned commercial. The land will be promoted for residential zoning through a walk -to -work approach. The Kellogg grant is targeted to the planned neighborhood capacity building. The intent of the building is to aid in building a cohesive neighborhood environment. Larry Dunn explained the neighborhood approach as used in the San Cristo project and its application to the proposed project. Residents would undergo a training program. TRAC would provide funds for baby-sitters and other out-of-pocket expenses to encourage attendance at neighborhood meetings. Ms. Stitzel and Mr. Dunn outlined the increased costs that would be incurred in applying the lessons learned in the San Cristo construction, and to imbue the project with enhanced aesthetics. Applicant: Don Parsons Mr. Parsons set forth the following information concerning the project: CDBG Commission Minutes November 9, 1995 Page 6 It will comprise 30 to 40 acres of mobiles homes, encompassing 200 to 250 units. The property is attractive. A lake is planned for the property, if feasible. There will be perimeter fencing, a community building, and open space around the creek. Mr. Parsons acknowledged the concerns of the viability of the project and noted the interest expressed in seeing the project to fruition. He may be interested in other financial participation but wishes to keep the housing affordable. The Housing Authority may ultimately participate in its development. In response to questions, Mr. Parsons stated: The cost of the project is unknown, although it will be expensive. CDBG money would be used for land acquisition. The portion acquired through CDBG money would comply with affordability requirements. By way of illustration, he stated that $150,000 of CDBG funds could be used to purchase eight to ten acres to produce 50 affordable units. Mr. Parsons stated that generally by their very nature and market rents, mobile home parks offer affordable housing. He is hoping for a mix of owned and rented units and lots. Some units, both mobile and modular, would be built on foundations. Streets would be a mixture of public and private. If allowed, Mr. Parsons could submit a written application for CDBG funding within a week. Handicapped -accessible units could be made available. Some lots will be larger than others and could be used for handicapped -accessible homes. Two parking spaces are planned for each unit, with a mixture of tandem and side -by -side. Mr. Parsons stated that he and several friends have committed to the purchase of the land. Sewers, lights, and streets would need to be completed, with an anticipated cost of over $4 million. With Mr. Waido's help, Mr. Parsons reviewed the location of the property. The affordability covenants would be imposed on the land purchased through CDBG money, on a pro rata share within the cost of land acquisition. Action by the Commission. Moved by Ms. Coxen, seconded by Mr. Steffes: To allow Mr. Parsons to submit an application even though the deadline has passed. Discussion ensued as to whether to apply the motion to Mr. Parsons only; whether the process should be reopened for all applicants; the deadlines to be imposed for submittal. Motion withdrawn. Moved by Ms. Coxen, seconded by Mr. Steffes: To reopen the application process with a two -week deadline; that a special meeting be held before November 30 to hear new presentations; and that the Commission recommendation go to City Council the first Tuesday of December. Discussion • CDBG Commission Minutes November 9, 1995 Page 7 was held on scheduling, some as -yet deadlines imposed by the Commission, special meeting. Motion failed, 2-3. unanswered questions, consistency of and the chances of making quorum at a Moved by Ms. Sample, seconded by Mr. Steffes: To reopen the application process; to extend the March 31, 1996 deadline to April 30, 1996; and to reconsider applications at the December 14, 1995 meeting. Discussion was held on the ability to spend the funds in a timely manner; and the necessity for the Commission to make its recommendation in December. Motion carried, 4-2. HOME UPDATE Ms. Smith stated that the HOME program had exhausted its home buyer funds. She presented an updated list on properties processed and closed. Eight contracts are currently on the waiting list. She advanced the possibility of moving new construction funds to the home buyer program. Moved by Ms. Coxen, seconded by Mr. Steffes: To draw down the new construction funds as needed for the home buyer program. Mr. Waido noted that staff would not expend moneys that may be needed for the TRAC project. Commission members expressed their support of the home buyer program. Motion carried unanimously. Mr. Waido presented the joint CDBG/HOME application that Ms. Davis and Ms. Smith have diligently worked on. Staff related the tribulations endured in producing the application, noted the transient nature of the present form, and invited suggestions by Commission members. The application process may be open for 60 days rather than the traditional 90. OTHER BUSINESS Mr. Waido handed out an information sheet concerning the Commission's work program over the next program year. He also distributed a survey form generated by the Human Relations Commission to evaluate diversity on boards and commissions. Ms. Coxen noted the recent housing needs assessment seminar that she had attended. Ms. Davis and Mr. Robin were also in attendance. Upon motion, the meeting adjourned at 8:40 p.m.