Loading...
HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 05/08/1991MINUTES CDBG COMMISSION QUESTION AND ANSWER SESSION May 8. 1991 The CDBG Commission Question and Answer Session was called to order by Chair Tom Dougherty on Wednesday, May 8, 1991, at 6:20 p.m. in the CIC Room of City Hall West, 300 LaPorte Avenue. Members Present: Mary Clark, Linda Coxen, Tom Dougherty, Bobbie Guys, Dan MacArthur, Josie Mata, Tina Marie Ribera, Louise Stitzel, William Bertschy, Tom Byington, Joseph Zimlich, Carolyn Early, Members Absent: Carl McWilliams Staff Members Present: Ken Waido, Jackie Davis, Carmen Jimenez APPROVAL OF MINUTES The minutes from the February 14, March 14, and April 11, 1991 meetings were approved as written. QUESTION AND ANSWER SESSION City of Fort Collins - CDBG Administration: Ken Waido, Chief Planner $ 95,600 MacArthur: How has the budget been revised this year? Several years ago staff made a commitment to the Steering Committee to slowly reduce the amount of CDBG monies that went into the administration budget that covers my time and the Planning Director's time spent on the program. Next year, the only personnel charges in the budget are Jackie's at 100% and 70% of the secretary II. Coxen: Now is the administration handled by other CDBG boards? I am not well versed in what's happening across the country. We do know that typically administration costs are taken from the entitlement grant. I am not aware of any community or city that uses general funds to cover administrative budgets. Dougherty: What happens if We vote to deny it? The message to Council is that you feel money should be used for programs and projects. City Council will have to come with administrative costs out of general revenue, and that is a zero likelihood. Clark: As a group we have to think about the serious implications of denying this request. The logical outcome is that they will ask for less diversified and less complex programs. I don't see that they have money to come up for this. City of Fort Collins: Ken Waido, Chief Planner, Jackie Davis, Community Development Specialist Fair Housing Consultant S 5.000 Ms. Davis: Federal regulations require that all communities conduct an analysis on the impediments to fair housing. We are looking at working with Longmont and Loveland to do a joint analysis that we could go out with an RFP for the three cities. It would only have to be done once every five or ten years. stitael: Is this for the whole of Fort Collins? Yes. stitsel: In that case it might be more appropriate that some of the funds come from city sources rather than all from CDBG. The City of Fort Collins does not support affordable housing except with CDBG funds, and for them to take all from CDBG is not fair when it will benefit the whole community. We are short of funds for the needs of low income people. Cozen: since it is a requirement, what is plan B, if consultant not funded? We would apply for a grant as three municipalities and try to do it as a demonstration for the three cities. If the study doesn't happen, is that the and of CDBG funds? No, but we don't have anyone on staff to be able to do it. We were monitored and told we have to do something. We have no option. Waido: One of HUD's housing requirements was a Housing Assistance Plan. It included statistical data to determine the housing needs of the community, such as census data, new growth rates, adjustments for age distributions, etc. HUD has changed it to be a more comprehensive housing study which is supposed to be more useful, called the Comprehensive Housing Assistance Strategy (CHAS). Dougherty: Do we have a concern for CHAS? Clark: Localities have to go through a process and do some goal setting and adopt a CHAS in order to be eligible to apply for the new HUD funding housing programs called HOME and HOPE. We expect these programs will be funded in the next fiscal year. They are separate from CDBG. Fort Collins is an entitlement community for CDBG funds. They have not decided if it will be an entitlement for HOME. HOPE funds are for public housing and HOME is for other housing. Neighbor -to -Neighbor, Inc.: Nancy MCCambridge, Executive Director, - CHOICE Senior Housing Counseling $11,708 - Fair Housing Counseling 42,770 - Architectural Barrier Removal and Emergency Repairs 15,000 Clark: Looks like you are serving alot of low income seniors. Yes, most are on fixed incomes which makes them low to moderate income anyway. The folks who we see are indeed low income, unless -2- i • they are very disabled and their families are seeing us on their behalf. Dougherty: How many people came to your program last year and were successfully placed in housing? Many walked out having had some success. Difficult to define substandard housing from other people. Ninety-five percent got some kind of help, whether it is counseling to help them work through a difficult decision, or an actual move to a board and care facility, or a housing arrangement that is safe and appropriate that the family is happy with. Cozen: How imperative is it that CHOICE be kept with Neighbor -to - Neighbor? As far as CHOICE is concerned it is very imperative. A couple of years ago several funding sources encouraged us to move in with Neighbor -to -Neighbor in order to cut overhead costs. This is a good arrangement for us. Another good thing is we can cross refer to the ABR or Emergency programs. Cozen: Are there other sources of funding available? Yes, we get money from United Way, but most of those dollars are going for financial assistance. Clark: Did you make use of the foreclosure prevention funds that were funded through Neighbor -to -Neighbor? Nothing was done with it. We had some problems in terms of income guidelines. The people who applied were making too much money so they couldn't qualify. Dougherty: Do you get volunteer professional services for the ABR and Emergency programs? We did for a awhile but then that contact person left, so I am in the process of recruiting someone. What is the average cost for assisting the client? $1,500 is an average amount and it includes widening doors, installing ramps, and doing things to bathrooms. Senior Resorts of America• Dean Stevens 965.000 Cozen: Are there other sources of funding for this concept? Not to my knowledge as yet. I have been trying to market this for about the last year. Four years now trying to develop it. It is very similar to the resorts in Arizona and Texas. Dougherty: Will the resort be located in or adjacent to Fort Collins? It would have to be close to utilities. The city would enjoy the profits. There would be a It profit on the development of the resort. There would be no other profits other than the 1% strictly for development of another resort. My main concern is to try to get housing for seniors. Metro areas in the older part are deteriorating. They would have a choice of the type of residence, -3- they would want. They would own that. The funding has to be developed by a non-profit somehow. I have formed a non-profit corporation, but have not achieved a 501(3)(c) yet. Cozen: Is the $65,000 for a study? The $30,000 is for a salary for a year, I estimated at the other. The City could finish the costs like utility costs, street costs. Byington: Have you made application at other cities? I wrote to 100 cities in Colorado. Only three cities answered, there has not been much interest. Byington: What research or data do you have to know if there is a need for this? The study would tell us that. I can't say definitely there is a need. There is an article from the Denver Council of Governments that they predicted an 80.5% growth in senior population in the next 20 years. So there is going to be a need for not subsidized housing. The people would fund this. This is a presold concept, otherwise if it doesn't sell it can be abandoned without losing much of money. New Bridges: Lou Stitzel Acquisition of 316 Jefferson $175,000 Operating Expenses 32.730 Clark: How does the organisation anticipate doing the renovations to the building if it is purchased? The building is the former bus station. It is not in bad shape. It has two bathrooms, and shower facilities, but arrangements have been made with the Atzlan Center where we send people over with shower passes. The owner of the building is very desirous of our purchasing it. Dougherty: Are any of the personnel services provided by volunteers? It is totally staffed by volunteers. We have a system of daily coordinators and we are looking at giving a small stipend of $25.00 a month for an overall supervising volunteer coordinator. Cozen: Is it possible to purchase it over a couple of years? I am sure the owner would like to have it sold. I think he would accept anything. There may be some other sources that we could get funding from. I am thoroughly convinced that there is more than one place to get funding. Local communities need to go beyond local sources of funding. MacArthur: Now do the downtown neighbors feel about it? We cooperate with the neighbors. No one but staff can park in the lot next to Private Eyes Window Tinting. And the people use the west side of the building to smoke. Dougherty: Now long have you been in operation? Since October 5, -4- 9 1990. It seems a little premature to be investing $150,000 in a program before it has had a year or two of operation. Since it has been operating we have generated fundraisers and donations and I think that it has proven its point that it is operable now. We need to improve so that we have more programs to help people overcome problems and get them back into the economic system. Children's Clinic: Dr. Collopy - Acquisition of 400 Remington $175,000 Haalthv Q*Ar* __ --- Dougherty: This proposal indicates that 10,000 kids were treated. That Indicates that since we opened 20 months ago, the indigent children of this community have made 10,885 visits which reflects a presence of 2,408 children. Dougherty: How many doctors work at the clinic? One paid physician, 100 volunteers, and one doctor that gets a very modest salary. Cozen: Is the requests for all or part of the building? For the lower half of the building. There is about 4,000 square feet in the lower half. Stitzel: Would you be able to get rent income from part of the building? No, the owner would retain the upper part and we would have possession of the lower half. Clark: Any other funding sources that might contribute towards the acquisition funds? We find when we go to apply to major foundations, that they will not fund bricks and mortars, but they will fund programs. Clark: Have you approached the Colorado Trust? The Colorado Trust was the first organization that ever sponsored us and they conducted a study via an independent business organization. They wrote a booklet about us, and gave us $50,000 as a one time start- up contribution. Clark: Is this facility adequate or will you make some renovations? The building is very adequate. It has a handicapped ramp which we don't have at our present location. I had a plumber go through the building. We will need to add another bathroom, which will cost about $6,700, but we plan to use volunteer labor. Clark: Can you do this in two stages? Can you work it over a Period of two or three years? I haven't discussed that with the owners, but we could try to arrange it. -5- Zimlich: In your financial statement from last year, the excess of revenues over expenses was about $200,000 and you have fund balances of about $300,000. Sounds like alot, but that is not even a year's operating budget. If all our funding stops, we would have to close the rest of the year. When I first started this I found that a great number of nonprofits collapsed and I tried desperately to keep a financial floor under us to keep it going. The figures do not reflect prosperity. MacArthur: After your meeting with the County Commissioners, are you onvinced that there is no public space that might be available for this? There is quite bit of public space, most of which is owned by the County. And the Commissioners in conjunction with their legal representatives steadfastly refused to give us anything. Their reasoning is that a governmental agency such as the County cannot make a gift to a charitable institution. Stitael: Would you be able to work out with the seller a purchase over a three-year period? Can't positively guarantee it, but I'm 95% sure. Guys: Can you bill for Medicaid? Yes, we will bill Medicaid, and Dr. Wera turns all that money back into the clinic. Clark: Are patients charged a fee? We only ask that they give us a donation of $3 for each of the prescriptions. Dougherty: Are all staff people listed full time? Dr. Wera, a pediatrician, and an office manager are full time, a nurse practioner is 4/5 full time. Two receptionists share a half time job, and we have a full-time RN. None are getting paid what they could make out on the private sector. United Day Care Center and LCSI Agencies: Carol Richard, Executive Director, and Linda Hopkins, Board President - Acquisition of LCSI Building at 424 Pine Street $335,800 - Sliding Scale Day Care Assistance 20.000 Byington: Why now, and what is the balance of the loan? There is still an outstanding debt on the building of $335,000 and that is the purchase price. Interested now because the rent is going to be increased and the agencies housed in the center are going to have a difficult time paying that amount. The dream for the building was to have affordable rent. And to have a permanent home. Right now we pay $6.90 a square foot and it may go up to $7.00 or $7.15 in January. stitsel: Why the increase? Because it would help pay off the - debt. Initially there was not a loan that needed to be paid until 1989. There needs to be a rent increase for those loan payments. -6- 0 Initially when the building was built the first couple of years the tenants only paid for the operation and maintenance, janitor, lawn mowing. There was no debt. Building cost $1,657,000 to build. We only owe $335,000. These agencies were paying strictly for the maintenance, $67,000 a year to maintain it. LCSI then incorporated the mortgage into the rent and asked them to start paying off part of the debt and the rent was raised. The maintenance costs went from $67,000 to $103,000. What it is doing basically is taking money away from the services these agencies provide. What is more dramatic is that there are facilities that the City owns that house other human service agencies who are only paying $1.00 a year for rent. Bertschy: How fast would you pay it off? We just made $10,o00 payment, which reduced it to $335,000. It saved about $138,000 in interest. Dougherty: Can you do other projects to raise funds to reduce the principal? We have exhausted every other private funding source locally and nationally. We have done ourselves a disservice by not having an emergency that would create an urgency. The building is built it is occupied and it looks like a government building, so many people assume it is a government facility. This has hurt our fundraising. There is a possibility that there is a Phase III that could house other agencies. Bertschy: Who will maintain the building? We will form a new non- profit corporation and maintain it through the rents. Administrative costs would be donated by the boardmembers like it is now. stitaal: Most of you serve Larimer county, are you planning on requesting funds from Human Resources? It doesn't seem fair for Fort Collins to bare the burden of finishing this off without County participation. Human development does not do building acquisition, just human services. Most of us have a site in Loveland and it doesn't make sense to ask for Human Resources to pay for the one in Fort Collins. Sliding a Guys: Are you planning to start an infant day care? We would like to. There are only three other infant day care centers in Fort Collins, none that are on sliding fees. stitaal: Did you ask for funds from United Way special grants? United Way Special Grants have frozen their funds, but if the building is paid off, that will free a great chunk of our rent money which might be able to use towards starting an infant day care center. -7- stitael: What kind of arrangements are being made to reach the corporations that hire the parents? We used to run a "much better center" which was for mildly ill children that was available to all the people in the community. We had employers and their employees bring their children there. That ran for three years on Gannett Grant funds. When we were facing closing, we approached 30 some businesses in this town asking them for some money just to buy a slot or two. They were not interested. About five years ago the day center industry expected the employers to come in and help their employees. That is not the trend. Fort Collins Housing Authority: David Herrera, Executive Director - Acquisition of Transitional Housing $115,000 - Acquisition of Real Property 250,000 - Payment of Nonfederal Share 135,682 - Curb Gutter Sidewalk & Landscaping 15,000 stit$el: Which of these are your priorities? We have an overwhelming demand for assisted housing in some form or other. Acquisition of transitional housing is a fully funded non -leverage purchase. It is short term quick turnaround housing. Acquisition of real property is the standard every year request that hasn't gone up or gone down at all to keep up the same level of acquisition we have done over the last several years. Payment of nonfederal share is the most difficult to define because there have been no appropriations from the Congress on the HOME or the HOPE program. Next year is the last year for rental rehab funds and we hope to reserve and match some of that as we did last year. Curb, gutter, and sidewalks are important. There is no other sources of funding for us to do that sort of thing. Dougherty: Do transitional housing recipients pay any rent? They do. The rents have to be substantially lower than the market. Clark: What did you use the Nonfederal share Program for? The nonfederal share is used to match rental rehab program. We currently own 16 units at Matuka Court. and applications pending now for three others that we now own: 327 & 331 N. Howes and 205 Buckingham. We are a little slow in committing those rental rehab and the balance of CDBG acquisition funds, because several of the applications have not worked. Clark: Now many units do you have that you have acquired? What is your waiting list for people who fall in that rent gap? We have acquired 135. About 25% on our waiting list could income qualify for that type of housing. What we charge is $200 for a 2-bedroom or 30% of their gross income whichever is greater fixed for one year. I think it is more economical to acquire rather than build. There are still enough units that acquisition/rehab is still the best approach for us. -8- 0 Putnam-Fullana Parent-Teacher Organization: John Cross and Mike Lohman Putnam Playground Expansion $25,000 Upgrade of Putnam Park 50 000 Cozen: Could either of these projects be funded through a fundraising event? We are doing that now. We are looking at raising $200,000 and the eventual project is to make this park as nice as any of the parks on the south side. Trying to find every resource and take every possible avenue to raise money for several soccer fields, irrigation, green grass. Cozen: Of your seven needs, which one is more important? Probably the grass and irrigation system for $26,000. The second item would be concrete walkway, for curb and sidewalk for $4,000. The playground surfacing could be done in phases. Clark: Has the project been presented to the city? We have already done it once. It is in the Westside Plan to do something over there. The city suggested we go through this procedure because of the area that it is in. John Cross: On the Putnam Park Upgrade, money cannot be raised by fundraising. The parents in the neighborhood are low income. Cozen: Why isn't the school district purchasing this? There are some real needs in the school district as far as their budget goes, and we are not a priority. Clark: Will the expansion of the playground be a PTO activity and done with volunteers? $25,000 is just to buy that lot. The PTO doesn't want to own the lot. They want to help make it a community park. The City and the School District are working together. Cozen: Who is going to maintain the property if its acquired? The school has been willing to do it. The already own and are accepting liability for the playground. If it doesn't work that way, Parks and Recreation has expressed in interest in it. The School District has written to us expressing an interest in working cooperatively with us. Parks and Recreation has given us $14,000, the School District gave us $7,000, Putnam Elementary has $6,000, and we have $8,000. Meeting adjourned at 10:30 p.m. -9-