Loading...
HomeMy WebLinkAboutAffordable Housing Board - Minutes - 10/04/2012CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MINUTES BOARD MEETING 281 N. College Ave. Fort Collins, Colorado Oct. 4, 2012 4 to 6 p.m. Chair: Dan Byers Staff Liaison: Ken Waido 970-221-6753 City Council Liaison: Lisa Poppaw Board Members present: Dan Byers, Jeff Johnson, Troy Jones, Karen Miller, Mike Sollenberger, Board Members absent: Wayne Thompson Staff present: Ken Waido Council Members present: None Other Staff present: Chadrick Martinez, Executive Director, Fort Collins Housing Authority; Kristin Fritz, Senior Project Manager, Fort Collins Housing Authority; Kate Jeracki, Note Taker Guests: Marilyn Heller, League of Women Voters: Bill Reinke, CARE Housing; Ray Roth, citizen Meeting called to order with a quorum present at 4:07 p.m. by Chair Dan Byers . AGENDA REVIEW No changes. PUBLIC COMMENT No public comment. APPROVAL OF MINUTES The minutes from the two meetings in September were not available for inclusion in the Board packets. Ken Waido will send them with the October minutes for approval at the November meeting; the minutes from the July meeting are also pending approval. 2 NEW BUSINESS REDEVELOPMENT DISPLACEMENT MITIGATION STRATEGIES Ken Waido updated the Board on the status of this project. Ken said he has held three meetings with stakeholders to present basic information about the project. He will also gather input from the Planning and Zoning Board. The City Council will hold a work session on Oct. 23 worksession to provide direction on which options to pursue. He is scheduled to return to the Board and the P& Z Board in January with staff analysis and recommendations. Council is scheduled to formally adopt a plan on Feb. 5, 2013. The Board will be asked to make formal recommendations on the plan to Council. Ken asked for Board input on possible strategies for stabilizing and preserving existing mobile home parks to reduce the pressure to redevelop. He outlined the results of staff research into techniques used in other locations, referencing a background memo dateed Sept. 27, 2012, that contained an analysis of existing mobile home parks in Fort Collins. Ken said one of the options would be to create a special mobile home zoning district that would restrict the use of the property. Mike Sollenberger asked if one of the options to stabilize existing parks could be to extend that tax rate to homes on foundations. Troy Jones said that as long as relocation was not an issue for park owners, they could raise fees incrementally to drive existing tenants out. Mike Sollenberger pointed out that under the former exclusive mobile home park zoning, operators let the properties deteriorate to the point where health and safety issues drove tenants out. Ken Waido said there was money in the CDBG Competitive Process to help owners with infrastructure repair and maintenance; the City has the authority to shut the park down for health and safety issues. Jones added that sites that were formerly zoned for mobile home parks are no longer suitable for that use, given development patterns. Dan Byers asked what would happen to the value of an existing property under a new zoning district. Owners would lose the option of doing anything else with it. Mike Sollenberger said no one would want it. Jeff Johnson asked if the City Attorney had been consulted on the issue of targeted zoning; it could be a legal pressure point as well as cause a negative reaction in the market. Ken Waido said yes, and the issue is still on the “maybe” list; if the Board and P&Z are against it, City Council could take it off the table as an option. Troy Jones said he saw two issues driving redevelopment and relocation: Mobile home parks in a perfect location that are deteriorating, and parks that are in good shape but in an inappropriate location. Ken Waido said none of the parks are new; the last one opened in 1984, and five have been redeveloped since 1995. There are about 1200 mobile home units in the city limits now and most are full. 3 Dan Byers said he didn’t think limiting the use of property was a good idea. He said he would hate to take options away from landowners. Ken said it was just one of the ways staff had discovered other areas dealing with the issue. He added that public/private partnerships are being used to address infrastructure issues, such as stormwater and road improvements. Mike Sollenberger was in favor of requiring any improvements be to current code standards, but Jeff Johnson asked if lot rental rates could support the expense and still remain affordable housing. Sollenberger agreed that higher rates would force some tenants to move, and the relocation issue hasn’t gone away. Platted streets and lots, like in Florida, might help, but most of the utilities are still private, he said, and expensive to keep up. Jeff Johnson suggested that the final plan should address both the preservation and relocation side of the equation. Ken Waido asked the board if exclusive zoning for mobile home parks should remain among the options to pursue at this time. Jeff Johnson thought it wasn’t very feasible, but nothing should be off the table at this point. Troy Jones agreed, adding that it might work in certain instances, but it needs more definition. Johnson warned of possible unintended consequences that could mean undoing it in 10 years or so. Mike Sollenberger agreed, and pointed out the city’s experience with Transfer Development Units. Ken Waido asked about the option of residents organizing to work out a cooperative solution with the existing owner to buy the property, such as has worked in Boulder and California. Jeff Johnson said it was very appealing, but requires commitment and expertise, perhaps the involvement of an existing nonprofit. Mike Sollenberger said anytime there is a right of first refusal clause it hurts negotiations with other buyers. Dan Byers said that only applies if the first refusal is a real option; he didn’t think it would kill any serious deals. Sollenberger said he would not object to new requirements for new mobile home parks but would strenuously oppose anything imposed retroactively on existing owners. The Board agreed. Jeff Johnson suggested requiring an 18-month notice of a sale coupled with a commitment to find a consultant to set up a community association that could organize and negotiate with the owner on behalf of the residents. Ken Waido asked Bill Reinke if he had any experience with owner purchases. Reinke said everyplace it has come up it has been very difficult to bring to fruition, especially in cases where the units are deteriorating and require a fair amount of money to rehab after the purchase. He added that there is no HUD program for mobile home parks, or everyone would be doing them. Ken Waido said Colorado requires a six-month notice, but as a home rule city, Fort Collins could require a longer notice period. He said longer notice can allow people to learn more about where they could go, and two years would be a complete City budget cycle, to allow the City to budget assistance out of the Affordable Housing Fund. Jeff Johnson thought too long of notice would chill the market for the seller; Mike Sollenberger thought a year would be sufficient to go through the process. Johnson agreed. 4 Ken Waido brought up the issue of illegal closures, where the owner does not renew leases, emptying the park over time. Jeff Johnson said if a heavy-handed relocation program were put in place, it would be the economically logical response to avoid the costs. Dan Byers suggested laying the costs on the developer instead would avoid that incentive. Ken Waido said federal relocation requirements do put the burden on the developer, up to requiring them to pay the difference in rent for four years. Troy Jones asked whose burden it should be to find housing for those displaced. Ken Waido said it has been a community effort, with the city and nonprofits involved in previous relocations. Jones said society need to help in the transition, but not for four years. Jeff Johnson added that helping just a certain class of renter could be awkward, if the program doesn’t also apply to apartment renters. Bill Reinke commented that market forces will mean there are no mobile parks in Fort Collins in 10 to 15 years, assuming the worst. Ken Waido pointed out that there have been no new mobile home units moved into Fort Collins since 2004. Jeff Johnson said the economy of mobile homes may have run its course because of aged infrastructure. Another option could be to trade Land Bank property for the mobile home park land – the developer can develop on the Land Bank property and the city would own the park. Troy Jones said if the city could then flip it to the unit owners, that would be a great idea. Dan Byers said the financing would be very difficult. Mike Sollenberger said he always prefers incentives as a way to encourage diversity in housing. STUDENT HOUSING ACTION PLAN PLAN Ken Waido distributed copies of the Staff Analysis of the SHAP Draft Action Items from Beth Sowder. Troy Jones said he will incorporate comments he has received from the Board into the final memo to City Council and send it to Ken Waido, who will forward it as soon as he receives it. The Board also looks forward to discussing the issue with Council liaison Lisa Poppaw at the next meeting. 2013 WORK PLAN This item was continued until the Nov. 1 meeting. It must be formalized by the end of November. FUTURE MEETING AGENDAS At the Nov. 1 meeting, the Board will discuss: The Board’s Work Plan for 2013 Redevelopment Displacement Mitigation Strategies Provincetowne Covenants Satisfaction with City Staff Support Services Survey Board liaison assignments Dan Byers will formally invite Lisa Poppaw to attend. 5 Dan Byers and Troy Jones plan to attend the annual Boards and Commissions Appreciation event on Oct. 29. -- Meeting adjourned at 6:05 p.m. by Chair Dan Byers. --