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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 03/01/2012CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES 281 N. College Ave. Conference Rooms A and B Fort Collins, Colorado March 1, 2012 4 to 6 p.m. Chair: Dan Byers Staff Liaison: Ken Waido 970-221-6753 City Council Liaison: Lisa Poppaw Board Members present: Ben Blonder, Dan Byers, Jeff Johnson, Troy Jones, Karen Miller, Wayne Thompson Board Members absent: Mike Sollenberger Advance Planning Department Staff present: Sharon Thomas, CDBG/HOME Grant Administrator; Joe Frank, Director Council Members present: None Other Staff present: Kate Jeracki, Note Taker Guests: Marilyn Hellers, League of Women Voters; Eric Sutherland, Citizen Meeting called to order with a quorum present at 4:08 p.m. by Chair Dan Byers Joe Frank announced that he would be filling in for Ken Waido until Ken returns to work. There were no changes to the agenda as presented. PUBLIC COMMENT Eric Sutherland talked about his perception of corruption surrounding the financing of the Rocky Mountain Innosphere. He asked the board to consider the amount of money that could be available for affordable housing in Fort Collins if it had same access to capital as the $4.5 million subsidy granted to the tax-exempt Innosphere. He also talked about alternative models for equity financing of affordable housing. Marilyn Hellers reported that the League of Women Voters will be holding a public forum on housing for veterans on April 23 at 7 p.m. in the Harmony Library. Representatives from the VA and Homeward 2020 will present. Marilyn will send a reminder to Joe Frank as the event gets nearer. NEW BUSINESS APPROVAL OF MINUTES — The minutes from the Nov. 3, 2011, were unanimously approved as presented on a motion from Ben Blonder seconded by Troy Jones. Troy Jones asked that his suggestion that the Affordable Housing Board explore alternative models for mobile-home ownership with the Fort Collins Housing Authority be added to the Feb. 2, 2012, minutes under the discussion of the Bender Mobile Home Park. The minutes were approved unanimously with that amendment on a motion from Wayne Thompson seconded by Jeff Johnson. Joe Frank also suggested that Troy’s suggestion be added as a future agenda item. The board discussed scope of future minutes. Dan Byers asked that after discussion, board members restate the exact wording of any motions and summarize any positions they feel strongly about to help keep the note taking on track. PROVINCETOWNE – Joe Frank distributed copies of an article that appeared in the Coloradoan on Feb. 29. It discussed the barriers to reselling townhomes in the Provincetowne development that carry deed restrictions prohibiting sales to anyone other than income-qualified owner-occupants for 25 years. An investor has made an offer to a resident who needs to sell to move into assisted living, but the covenants prevent the sale. Frank said that the city had been talking about the issue of salability of the Provincetowne units for about 5 years, especially since the recession has made renting more attractive than owning the units. Since Provincetowne is a mixed development, restricted units sit right next to unrestricted, making them even harder for owners to sell. Staff can make some minor allowances for individual circumstances but major changes to the covenants can only come from City Council. She added that of four recent contracts on homes in Provincetowne, two were from investors, two from owner-occupants. One owner backed out and the other could not qualify for an FHA loan. Ben Blonder pointed out that Provincetowne is now less than 50 percent owner-occupied, and the current HOA has let its FHA eligibility lapse. Sellers may have been ignoring the covenants for some time. The current issue came to light because the title company pointed out the restriction. The city does not have enough staff to monitor every sale, Sharon Thomas added, and there is no way to keep track if owners begin renting after they have been living there. Wayne Thompson said that in Loveland, Utilities flags restricted units and informs the city when there is a change. Sharon Thomas said the Homebuyers Assistance program is no longer allowed to do that in Fort Collins. Jeff Johnson suggested the possibility of using Neighborhood Stabilization Program funds to help facilitate an exit strategy for willing sellers who can’t find income qualified buyers. As a member of the development committee of CARE Housing, he can discuss this with his board. Joe Frank would like the Affordable Housing Board to help research the issue for a presentation to City Council in the next few months. A subcommittee was formed to reach out to other communities and organizations to see if they have had similar experiences. Troy Jones was appointed chair; Jeff Johnson and Karen Miller are also on the subcommittee, and will report back to the board next month. Troy Jones said that while the immediate problem is in Provincetowne and he would like to recommend to Council that the covenants be changed, the board should also look into a long-term solution that can keep homeownership affordable. SPRING COMPETITIVE PROCESS — Sharon Thomas told the board that the Union Place proposal has been removed from consideration by the developer, leaving only the Fort Collins Housing Authority supportive housing request for CDBG funding. During discussion of the request, Jeff Johnson expressed concern that FCHA did not have a site secured for the project yet. Sharon explained that the original site had fallen through, and FCHA is now looking at three other sites, none in North Fort Collins. Jeff wondered if this project was ready to receive the money if the site was still undetermined. Ben Blonder pointed out that the Housing Authority needed to have the local funding in place to leverage other sources of funding to go forward, and the money will not be spent until it is needed. The board agreed that although this might be a concern with a private developer, the FCHA’s track record is excellent. Dan Byers said that it is important for the city to commit to the project at this time to get it moving. Ben Blonder said that the proposal, which will build 40 housing units for a population with less than 50 percent AMI – some less than 30 percent – and offer a range of support services as well, contains everything he would want to see in such a project. Wayne Thompson was concerned that funding the proposal was spending a lot of money on just 40 people. He said he is sure the FCHA will do a good job with it, but he would like to see the funds going to help more of the homeless population get into transitional housing. Ben Blonder moved that the Affordable Housing Board recommend the Community Development Block Grant Commission approve funding for Project HO-1. Karen Miller seconded, and the motion passed unanimously. Dan Byers will present the board’s recommendation to the CDBG Commission on March 29. BOARDS AND COMMISSIONS LIAISONS — Affordable Housing Board members keep in touch with other city boards and commissions and organizations, attending meetings and reporting back to the AHB and occasionally communicating AHB positions to the other entities. Liaisons for this year will be: Ben Blonder – Fort Collins Board of Realtors Mike Sollenberger – Planning and Zone Board Karen Miller – Affordable Housing Coalition Troy Jones – Transportation Board Dan Byers – Economic Advisory Committee Ben said he would also monitor DDA/URA issues as they arise, since they are on a case- by-case basis. CONDUCT OF MEETINGS — Dan Byers asked board members how they felt about the open-discussion format of the meetings. The overall consensus was that the current format is working well, and as long as members are respectful of each other, they are comfortable with something less formal than Roberts Rules. Jeff Johnson pointed out that it is important to be more formal when making motions and dealing with citizens in attendance. Joe Frank will send an electronic copy of the Colorado Municipal League handbook on meetings to help the board understand opening and closing public comment and when and how the board can respond to issues brought up by citizens. OLD BUSINESS ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE (AI) – Sharon Thomas provided a progress report on this HUD-required process. It is moving along according to the timeline outlined last month. Troy Jones will attend the stakeholders meeting on March 6 and report back to the board in April. A Fair Housing workshop is set for April 16, 4 to 6 p.m. at 215 N. Mason. In May, BBC consultant will make a presentation to the CDBG Commission and the Affordable Housing Board. Staff plans to have the final report ready for review by City Council in July. FUTURE MEETING AGENDAS For the April 5 meeting, the board will discuss:  Provincetowne report from subcommittee.  Report from Fair Housing stakeholders meeting.  2012/2014 BFO process At some future meeting, the board would like to:  FCHA fee waiver.  Update the bylaws.  Hear a report on the Land Bank program.  Review the effects of the city’s Green Building Code on housing affordability.  Discuss outreach to Fort Collins Housing Authority on alternative models of ownership for mobile home parks and residents. -- Meeting adjourned at 5:45 p.m. by Chair Dan Byers. --