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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 11/12/199841 City Council Liaison: Staff Liaison: Commission Chairman: CDBG COMMISSION MEETING MINUTES November 12, 1998 Bill Bertschy Ken Waido Bill Steffes, Chair The meeting of the CDBG commission began at 6:30 p.m. in Conference Room A, 281 North College, Fort Collins, Colorado. Commission members present included: Bill Steffes, Linda Coxen, David Gordon, Brett Hill, Phil Majerus, Andy Smith, and Cheryl Zimlich. Staff members present: Julie Smith and Ann Watts. Approval of minutes Moved by Mr. Majerus, seconded by Mr. Gordon: To approve the minutes of September 10, 1998. Motion passed with one abstention. Neighbor to Neighbor Mr. Collins reported on the progress of the Azalea Drive eight-plex. Mr. Collins reviewed the history of the CDBG grants for acquisition and flood relief that resulted in Neighbor to Neighbor acquiring the property. Other funding mechanisms were used as well to buy the property at close to appraised value. Originally, the building was intended to have four units for very low income renters; through help by Funding Partners, four units would be used for home ownership for low-income first time homebuyers. Due to various complications encompassing management concerns, building concerns, homeowners association structuring, and continuity of affordability, the home ownership concept became untenable. Neighbor to Neighbor is now considering using all eight units for affordable rentals. Mr. Collins met with Staff and with Funding Partners to ensure the success of this concept. Mr. Collins requested approval by the Commission for this change of use. Ms. Smith noted that any such change should be voted upon by the Commission, because it entailed a change to the consolidated plan. Mr. Collins distributed pamphlets on the project. He reviewed the rents and AMI targets listed in the pamphlets. The management fee is received by Neighbor to Neighbor; CHAFA requirements do not allow cash flow, so the management fee is needed to cover Neighbor to Neighbor costs. The bookkeeping oversight fee goes to Neighbor to Neighbor and the auditor involved. Mr. Collins noted that their cost per unit per annum is approximately $2600 a year, $500 below the CDBG Commission McIkg Minutes • November 12, 1998 Page 2 industry average. Neighbor to Neighbor covers all utilities; except electricity and cable. Discussion was held on the problems encountered in ensuring permanent or long-term affordability. This appears to be a special case, with additional difficulties resulting from the mix of rental and ownership, and the involvement and restrictions of Funding Partners. Another problem is control over the renters if an owned unit is sublet. Mr. Collins praised the level of donated labor that was contributed to the project by various sources. He also noted with some satisfaction the positive response to the project by tenants. No further funding will be requested on this project. Moved by Ms. Coxen, seconded by Mr. Gordon: To approve the request of Neighbor to Neighbor to use the CDBG grant in the proposed fashion to provide affordability for the eight units at 1620 Azalea. Mr. Steffes voiced a measure of discomfort in trading off home ownership possibilities for permanently affordable rentals. Motion approved unanimously. Discussion was held concerning the status of the Housing Authority. Staff noted that City Council will constitute the Housing Authority Board for eight months. Affordable Housing Report Update Ms. Watts reviewed the report presented to City Council on October 27. The report looks at many varied indicators of affordable housing need and proposed goals and strategies. Extra meetings will be held with the Affordable Housing Board to finalize the report. Staff hopes for review by City Council at its January 19 meeting. Ms. Watts summarized the various points listed in the report. She noted the proposed competitive process for awarding City funds as opposed to the first - come -first -served standard of the Rebate program. Under a competitive process, the City could choose the most worthy recipients. Commission members complimented Ms. Watts on the quality of writing in the report. CDBG and HOME Housing Application Ms. Watts reviewed the proposed application form and noted changes that she would propose on her own. The purpose for the application was explained to the newer Commission members. Commission and Staff reviewed the application, item by item. Numerous changes and additions were suggested, with concomitant discussion of the CDBG Commission Meeting Minutes • November 12, 1998 Page 3 purpose for suggested amendments. Ms. Watts recorded the suggested changes and will finalize the application for review and approval at the next meeting. Update on Housing Projects Ms. Smith reported that Eagletree had a well -attended grand opening in October. She reported nothing new for the TRAC project. The Parkway Townhomes audit should be prepared by the next meeting. Via Lopez will be ready to go by the end of the month or shortly thereafter. The other projects are in startup mode. The homebuyer assistance program is running smoothly, although not quite as frantically as last year. The change from a grant to a due -on -sale loan has not seemed to have an effect upon applicants. December Meeting A meal is scheduled for December 10 at 5:30 p.m., with the regularly scheduled meeting to follow at 6:30 p.m. The CDBG/HOME application form will be reviewed at that time. Other Business Upon motion, second, and unanimous vote, the meeting adjourned at 8:45 p.m.