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HomeMy WebLinkAboutCommunity Development Block Grant Commission - Minutes - 10/11/2007OCTOBER 2007 FUNDING RECOMMENDATIONS COMMUNITY DEVELOPMENT BLOCK GRANT COMMISSION Meeting held Thursday, October 11, 2007 6:00 p.m. - 6:30 p.m. 218 North CoNlege Avenue Fort Collins, Colorado Commission members present: Staff: Bob Browning, Chair Eric Berglund, Vice -Chair Jeff Taylor Kay Rios Cynthia Torp Dennis Vanderheiden Jennifer Wagner Tom LeSavage Ken Waido Heidi Phelps Julie Smith Sharon Thomas MEETING HIGHLIGHTS Mr. Browning called the meeting to order at 6:00 p.m. Preliminary comments were made. Although monies exist to fund each of the applicants on this cycle, the Commission reaffirmed its belief that it bears a fiduciary responsibility to City Council and the taxpayers to be prudent in its funding decisions. Funding recommendations are to be made based on the merits, or lack thereof, of each program and not because funds are available. In the Commission's view, the one project not recommended for funding, the Fort Collins Housing Authority's First Step Expansion Program, is not a housing proposal at all: it is a counseling program, a substance -abuse program, or a case management program — but not a housing program. With this in mind, the success of the program isn't measured by how many people receive housing, but in how many people achieve the goals of the program, and these goals, as well as the program success rate to date, are insufficiently delineated. The applicant could not provide sufficient evidence to justify maintaining the existing program, much less its expansion. More importantly, because the City has already maximized the amount of administrative funding taken from Federal grants, the only money left is the Affordable Housing Fund. This fund was not intended to pay salaries, especially salaries of people already employed by the FCHA. Following discussion, moved by Ms. Rios, seconded by Mr. Berglund: To adopt the proposed funding recommendations for presentation to City Council. Motion carried unanimously. The meeting adjourned at 6:30 p.m. HOUSING HO-1 City of Fort Collins - Homebuyer Assistance. Request: $250,000 Moved by Ms. Wagner, seconded by Ms. Rios: To recommend full funding. Given the current state of the economy and lack of availability in conventional financing, this program represents an absolute need. The starter home market will also see more home buyers, given the current economy and climate in the mortgage industry. It is likely that the demand will exceed this level of funding. A concern does exist for the amount of administrative costs being funded. Motion approved unanimously. Funding recommendation: $250,000 HO-2 FCHC: First Step Expansion - ADMIN Request: $14,613 Moved by Ms. Rios, seconded by Mr. Browning: To recommend no funding. The element of administrative costs is particularly challenging. The Affordable Housing Fund was not established in order to pay salaries, and this portion of the request would constitute a departure from the intended use of those funds. The original intent of the Fund was to pay for bricks, sticks, and to cover the gap in federal housing programs. Unfortunately, tenant -based rental assistance (TBRA) cannot be funded as a Public Service through CDBG. Short-term rental assistance available under CDBG is limited to three months or less. HOME does have a specific category for this use. However, the only other resource for TBRA administration is through the City's overall HOME administrative budget, which is already at maximum. Motion carried 7-0, with one abstention. Funding recommendation: $0 HO-3 FCHC: First Step Expansion Request: $192,144 Moved by Mr. Taylor, seconded by Ms. Rios: To recommend no funding. The project itself could well be valuable and needed on its own. The program's success, however, hasn't been adequately demonstrated. Additionally, the Commission traditionally provides housing funds to create and preserve affordable housing inventory and structures its funding allocations to recoup its investment. The presentation made reference to a four- to six -year process for a given participant. Perhaps the biggest issue with this application is the funding request encompassing a project over a two-year time period representing funding for a program that, once implemented, cannot be sustained. The funding request for the first two years will not generate the monies needed for the projected longer timeline. Self-sufficiency was stated as not being a goal of the program, but no long range goals were given. The applicant's presentation did not resolve questions of feasibility and viability of the program as a whole. The first program funded for 2006 is still unproven in its results, and the project should reach some measurable goals before being considered for expansion, in terms of City funding. The start of the initial project was hampered because of other funding delays and front-end issues with identifying and gathering the right people for the program. The number of security deposits requested (48) versus the number needed (24) is not only a concern from a fiscal prudence standpoint, but speaks to client instability. The Commission discussed a reduction in recommended funding, looking at a lesser funding amount for the security deposit portion, in particular. However, the applicant's funding request stated a "Full Funding Only" proviso. Lastly, the Commission is not suggesting that this program not be funded, only that it should not be funded now. There might be, given adequate proof of prior success, a place for funding the expansion of this project in the future. Motion carried, 7-0, with one abstention. Funding recommendation: $0 HO-4 Neighbor to Neighbor: Coachlight Driveway Parking Lot Repairs and Improvements Request: $244,866 Moved by Ms. Rios, seconded by Mr. Berglund: To recommend full funding. The applicant provides decent, affordable housing. The renovations on the property are an indication of the good efforts to keep the property at that level and set that standard. The applicant helps to maintain affordable housing inventory and has made great strides in putting its finances in order. The program has a good track record that encourages continued support. This program serves the housing needs of low-income residents of the City. Motion carried 6-1, with one abstention. Funding recommendation: $244,866 PUBLIC FACILITIES PF-1 City of Fort Collins/Crossroads Safehouse: Facility Safety Rehab Request: $55,671 Moved by Mr. Berglund, seconded by Ms. Torp: To recommend full funding. This is a program that provides a great service for the community without duplication elsewhere. While this is a City -owned facility with an overarching need for continued, maintenance, this program maximizes its dollars for the fundamentals of their program with the result that some upkeep cannot be done on the remaining budget. The safety issue is an additional call for funding support. A significant amount of CDBG money has already been invested in this property, and the work needs to be finished. However, in terms of repayment from a property sale standpoint, the amount of CDBG funding already invested exceeds, or will soon exceed, market value of the properties. Future CDBG monies invested would, in effect, function as a grant rather than the intended due on sale loans. Motion carried unanimously. Funding recommendation: $55,671