HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/15/2016 - ITEMS RELATING TO THE COMPLETION OF THE 2016 FALLAgenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY November 15, 2016
City Council
STAFF
Beth Rosen, Affordable Housing Program Administrator
SUBJECT
Items Relating to the Completion of the 2016 Fall Cycle of the Competitive Process for Allocating City Financial
Resources to Affordable Housing Activities Utilizing Funds from the Federal Community Development Block
Grant (CDBG) Program, Federal HOME Investment Partnership (HOME), and the City's Affordable Housing
Fund (AHF).
EXECUTIVE SUMMARY
A. Public Hearing and Resolution 2016-085 Approving the Programs and Projects that Will Receive Funds
from the Community Development Block Grant Program, HOME Investment Partnership Program and the
City’s Affordable Housing Fund.
B. Public Hearing and First Reading of Ordinance No. 128, 2016, Appropriating Unanticipated Revenue in the
Community Development Block Grant Fund.
C. Public Hearing and First Reading of Ordinance No. 129, 2016, Appropriating Unanticipated Revenue in the
HOME Investment Partnerships Fund.
The purpose of this item is to approve the funding recommendations of the 2016 Fall Cycle of the Competitive
Process and appropriate federal dollars. Resolution 2016-085 will complete the 2016 Fall Cycle of the
Competitive Process for allocating $1,153,289 in City financial resources to affordable housing projects and
the administration of the HOME program that began October 1, 2016. Ordinance Nos. 128 and 129, 2016
appropriate an adjustment of to the FY2016 HOME Participating Jurisdiction Grant from the Department of
Housing and Urban Development (HUD) and Community Development Block Grant (CDBG) Program Income
from FY2015.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution and Ordinances on First Reading.
BACKGROUND / DISCUSSION
This Resolution establishes which housing programs and projects will receive funding with the balance of
CDBG, HOME and AHF funds for the FY2016 program year that began October 1, 2016. These funds
represent the balance of funds that were available, but left uncommitted, from the 2016 Spring Competitive
Process, as well as additional funds received since April 1, 2016.
The FY2016 HOME grant from HUD was adjusted from $539,676 to $542,569, an increase of $2,893 from the
spring 2016 appropriation. During the 2016 spring funding cycle $53,976 was allocated for Planning and
Administration. An additional $289 is being allocated to program administration, while the additional grant
balance is not being allocated at this time due to the lack of a HOME eligible project. CDBG Program Income
received between April 1, 2016 and September 30, 2016 totals $74,199.86.
Agenda Item 8
Item # 8 Page 2
The following table summarizes the total funding amounts and sources of available CDBG, HOME and AHF
funds for distribution in the housing and planning/administration categories during the FY2016 Fall Cycle of the
Competitive Process:
Available Funding for Housing and Planning/Administration in 2016 Fall Cycle
Funding Source Funding
Amount
Planning &
Administration
Housing
HOME (Uncommitted) $546,594 $0 $546,594
HOME FY2016 Grant Increase (Un-appropriated) $2,893 $289* $2,604**
CDBG (Uncommitted) $1,014,559 $0 $1,014,559
CDBG Program Income (4/1 through 9/30) $74,199.86 $0 $74,199.86
Affordable Housing Fund (uncommitted) $100,047 $0 $100,047
Total Available Funding $1,738,292.86 $289.00 $1,738,003.86
*Per HOME regulations, 10% of grant allocation may be set aside for program administrative costs
**Funds will carry over into the spring 2017 Competitive Process due to the lack of an application from
a HOME eligible project.
CITY FINANCIAL IMPACTS
The Home Investment Partnership (HOME) Program provides federal funds from the Department of Housing
and Urban Development (HUD) to the City of Fort Collins which can be allocated to housing related programs
and projects, thereby reducing the demand on the City’s General Fund budget to address such needs. The
General Fund contributes dollars for affordable housing projects through the Affordable Housing Fund. The
funds provided by the City to housing programs and projects leverage millions of dollars in funding from other
sources.
Through the provision of affordable housing, more of Fort Collins’ workforce can reside within the community.
This creates an available labor pool within the city, which helps maintain economic sustainability.
BOARD / COMMISSION RECOMMENDATION
The Community Development Block Grant Commission (CEBG) presents recommendations on which
programs and projects should receive funding from the available funding sources presented above. Of the two
proposals received the recommendation is to fully fund one proposal and increase funding of the second
proposal to fund the entire project cost. The following table shows the allocations recommended by the
Commission to City Council.
Housing Category
Applicant Project/Program Funding
Request
Commission’s
Recommended
Funding
Unfunded
Balance
Percent of
Request
Funded
DMA Plaza: Withdrawn Withdrawn $0 $0 N/A
Housing Catalyst: Village on Shields
Rehabilitation
$1,125,000 $1,125,000 $0 100%
Neighbor to Neighbor: Crabtree
Apartments Boiler Replacement
$20,000 $28,000 $0 140%
Housing Total $1,145,000 $1,153,000 $0 107%
The CDBG Commission received three applications for funding. One application, DMA Plaza Rehabilitation,
was withdrawn by the applicant after it received notification from Colorado Housing Finance Authority (CHFA)
that it did not receive a funding allocation of Low Income Housing Tax Credits. The project will most likely
reapply in 2017.
Agenda Item 8
Item # 8 Page 3
The justifications for the CDBG Commission’s recommendations can be found in the draft minutes from the
October 13, 2016 meeting. (Attachment 2)
The Affordable Housing Board provided comments and priority ranking to the CDBG Commission. These are
addressed in the draft minutes from the special meeting held October 13, 2016. (Attachment 3)
PUBLIC OUTREACH
HUD regulations require a 30-day public comment period on the proposed allocation of HOME funds as
recommended by the CDBG Commission. Staff placed an ad in the Coloradoan on October 16, 2016,
presenting the list of recommended funding for programs/projects, and indicated the public comment period
would run from October 17, 2016-November 15, 2016. Additionally, the public notice announcing funding
recommendations was placed on the Social Sustainability Department’s website and distributed to 12 entities
serving a majority of clients in legally protected classes-including those in a racial/ethnic minority, those with a
disability, or female heads of household-or serving those community members who might otherwise have
barriers to public participation in the City’s civic engagement processes. To date no public comments have
been received.
ATTACHMENTS
1. Background and Summary of CDBG Commission Recommendations (PDF)
2. CDBG Commission Deliberations, October 13 2016 (draft) (PDF)
3. Affordable Housing Board minutes, October 13, 2016 (draft) (PDF)
4. Background Information on Competitive Process (PDF)
5. CDBG and HOME Background Information (PDF)
1
ATTACHMENT 1
BACKGROUND AND SUMMARY OF CDBG COMMISSION’S
RECOMMENDATIONS FOR FUNDING
At the November 15, 2016, regular City Council Meeting, the Council will be
conducting a public hearing and considering the adoption of a Resolution
establishing programs and projects that will receive funding with Community
Development Block Grant (CDBG), HOME Investment Partnership (HOME), and
City Affordable Housing Fund (AHF) for the program year that started on October
1, 2016.
The Resolution represents the culmination of the fall cycle of the Competitive
Process approved in January 2000 by the Council for the allocation of the City’s
financial resources to affordable housing programs/projects and community
development activities. Additional background material about the Competitive
Process is included in Attachment 4.
The CDBG and HOME Programs are ongoing grant administration programs
funded by the Department of Housing and Urban Development (HUD). The City
of Fort Collins has received CDBG funds as an Entitlement Community since
1975 and has been a HOME Participating Jurisdiction since 1994. This means
the City is guaranteed a certain level of funding each year. The level of funding is
dependent upon the total amount of funds allocated to the program by Congress
and on a formula developed by HUD comprised of several measures of
community need, including the extent of poverty, population, housing
overcrowding, age of housing, and population growth lag in relationship to other
metropolitan areas. Additional background information on the City's CDBG and
HOME programs is presented in Attachment 5.
The City’s Affordable Housing Fund (AHF) was established in 2000 to
supplement federal funding from the CDBG and HOME programs. One purpose
of the AHF was to have a source of funding free of federal rules and regulations.
Funding awarded to programs targets households in Fort Collins whose incomes
are at or below 80% of Area Median Income (AMI). The 2015-2016 BFO Cycle
added $200,000 in Keep Fort Collins Great (KFCG) funds to the program. These
AHF monies help fill other funding gaps and lower the cost of housing and other
basic services for Fort Collins citizens who are most vulnerable and in need. By
empowering and stabilizing families, these funds strengthen and improve the
fundamental building blocks of Fort Collins: its neighborhoods.
AVAILABLE FUNDS
The following table summarizes the amount and sources of all available CDBG,
HOME, and AHF funds for distribution to housing programs in the FY2016 Fall
2
Cycle of the Competitive Process:
Available Funding
Funding Amount Funding Source
$617,427 FY2016 CDBG Entitlement Grant (Housing Balance)
$286,393 FY2015 CDBG Unprogrammed
$184,938.86 FY2015 CDBG Uncommitted Program Income
$406,927 FY2016 HOME Participating Jurisdiction Grant
$142,271 FY2015 HOME Program Income
$100,047 FY2016 AHF (Balance after 2016 spring process)
$1,738,003.86 Total Funding Available
Unprogrammed funds represent previously committed grant funds that were not
allocated. Program income includes repayments from loans issued for housing
rehabilitation, homebuyer assistance, affordable housing acquisition and
development. HUD regulations allow for up to 20% of CDBG funds and 10% of
HOME funds to be allocated to planning and administration.
APPLICATION PROCESS
Notices for the City’s FY2016 Fall Competitive Process were sent via email to
potential applicants in early July 2016 and the Social Sustainability Department
placed an advertisement in the Coloradoan in July to solicit requests for housing
projects. Applications were available beginning July 14, 2016 via ZoomGrants, a
web-based application, and were due August 25, 2016.
The City received 3 applications requesting nearly $2.25 million in funding. On
September 8, 2016 all applications were made available to the CDBG
Commission and the Affordable Housing Board (AHB) for review.
On September 29 the Commission met to hear presentations and ask
clarification questions from each applicant. The AHB, at a special meeting on
October 13, 2016, voted to recommend to the CDBG Commission a priority
ranking of the two affordable housing proposals (see Attachment 5). The priority
ranking was presented to the CDBG Commission on October 13, 2016, prior to
deliberations.
The Commission met on October 13 for the purpose of preparing a
recommendation to City Council as to which programs and projects should be
funded for the remainder of funding for the FY2016 program year. At this meeting
the Commission reviewed the written applications, the applicants’ verbal
presentations, the information provided during the question and answer session,
and reviewed the performance of agencies who received funding in previous
years. They considered the priority rankings of the AHB, the goals of the City’s
Affordable Housing Strategic Plan and the Social Sustainability Department’s
Strategic Plan.
3
CDBG COMMISSION'S RECOMMENDATIONS
Based on the information received, the Commission voted on which programs
and projects best fit the City's needs. Listed below is a summary of each
applicant's request for funding and the Commission's funding recommendations.
HOUSING
HO-1 DMA Plaza – Rehabilitation of Senior Housing
Request: $1,000,000 Recommendation:
Withdrawn
Percentage: 0%
DMA Plaza provides 124 units affordable housing to low-income seniors in Fort
Collins. Originally built in the mid-1970’s, the project is seeking financial
assistance to complete the substantial rehabilitation needed (including asbestos
mitigation) to keep it affordable and sustainable for another 20 years. On
September 9, DMA Plaza, Inc. notified the City that they did not receive a funding
allocation of the 9% Low Income Housing Tax Credits were withdrawing their
request.
HO-2 Housing Catalyst: Village on Shields Rehabilitation
Request: $1,125,000 Recommendation:
$1,125,000
Percentage: 100%
Housing Catalyst, previously known as the Fort Collins Housing Authority,
purchased three apartment complexes located on the northeast corner of Shields
Street and Horsetooth Road with 285 rental units in December 2012. These
properties were Rose Tree, Hickory Hill and Willow Grove apartments. This
purchase preserved the units for affordable rental housing. Housing Catalyst
purchased the units with the intent of substantially rehabilitating the properties,
thereby providing long-term preservation of a significant portion of the
community’s affordable housing stock. Total development costs for the project
are projected at approximately $60 million dollars. This request is for subsequent
gap funding needed to complete the rehab, previous City funding allocated to
date is approximately $2 million.
HO-3 Neighbor to Neighbor: Crabtree Apartments Boiler replacement
Request: $20,000 Recommendation:
$28,000
Percentage: 140%
Neighbor to Neighbor (N2N) offers affordable housing, housing counseling, rent
assistance home buyer education and more to low-income residents. Two of the
properties owned by N2N, fourplexes on Crabtree, are in need of boiler
replacement and other property repairs.
4
A summary of the Commission's funding recommendations is presented in the
following table:
Funding Recommendations by Project
Category Recommended
Funding
% of Total
Housing Catalyst: Village on Shields $1,125,000 100%
Neighbor to Neighbor: Crabtree Apts. $28,000 140%
Total $1,153,000 107.0%
The justifications for the CDBG Commission’s recommendations can be found in
Attachment 2, Draft Minutes of the October 13, 2016 meeting (not yet approved
by the CDBG Commission, to be approved at the November 10, 2016 meeting).
Total funding available for housing eligible projects was $1,738,004 with only
$1,153,000 allocated. The balance of $585,004 in uncommitted funds (CDBG &
HOME) will be made available for allocation in the Spring 2017 Competitive
Process. Staff is aware of several eligible projects that plan to submit
applications for these funds.
ϭ
ATTACHMENT 2
KDDhE/dz s >KWD Ed>K<'ZEdKDD/^^/KE
&hE/E' >/ Zd/KE^Z&d
ϮϭϱEDĂƐŽŶǀĞ͕&ŽƌƚŽůůŝŶƐ
KĐƚŽďĞƌϭϯ͕ϮϬϭϲϲ͗ϬϬW͘D͘
KDD/^^/KED D Z^WZ ^ Ed͗
,ŽůůLJĂƌƌŽůů;ŚĂŝƌͿ DĂƌŐĂƌĞƚ>ŽŶŐ;sŝĐĞŚĂŝƌͿ
ŵLJŽŶĚĂůĞ ^ƚĞǀĞĂĐŬƐĞŶ
ŶŝƚĂĂƐŚĂŵ dĂLJůŽƌƵŶŶ
ŶŶĞƚƚĞĂĐŚĂƌŝĂƐ ĞďtĞƐƚĐŽƚƚ
^d&&WZ ^ Ed͗
^ŚĂƌŽŶdŚŽŵĂƐ͕ĞƚŚZŽƐĞŶ
Kd, Z^WZ ^ Ed͗
dŝŶĂ,ŽƉŬŝŶƐͲƵŬĞƐ͕DŝŶƵƚĞdĂŬĞƌ
ŚĂĚƌŝĐŬDĂƌƚŝŶĞnj͕,ŽƵƐŝŶŐĂƚĂůLJƐƚ
:ĞŶŶŝĨĞƌƌĂLJ͕ĨĨŽƌĚĂďůĞ,ŽƵƐŝŶŐŽĂƌĚ
dŚĞŵĞĞƚŝŶŐǁĂƐĐĂůůĞĚƚŽŽƌĚĞƌďLJŚĂŝƌ͕,ŽůůLJĂƌƌŽůůĂƚϲ͗ϬϱƉ͘ŵ͘ǁŝƚŚĂƋƵŽƌƵŵƉƌĞƐĞŶƚ͘
dŚĞƉƵƌƉŽƐĞŽĨƚŚĞŵĞĞƚŝŶŐǁĂƐƚŽĂůůŽĐĂƚĞĨƵŶĚƐƌĞƋƵĞƐƚĞĚĚƵƌŝŶŐƚŚĞϮϬϭϲ&ĂůůĐLJĐůĞŽĨƚŚĞ
ŽŵƉĞƚŝƚŝǀĞWƌŽĐĞƐƐ͘dŚĞŽŵŵŝƐƐŝŽŶĚĞůŝďĞƌĂƚĞĚƚǁŽ,ŽƵƐŝŶŐƌĞƋƵĞƐƚƐ͘
:ĞŶŶŝĨĞƌƌĂLJŵĂĚĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐƚŽƚŚĞĐŽŵŵŝƐƐŝŽŶŵĞŵďĞƌƐƉƌŝŽƌƚŽĚĞůŝďĞƌĂƚŝŽŶƐ͘ƌĂLJƐƚĂƚĞĚ
ƚŚĞĨĨŽƌĚĂďůĞ,ŽƵƐŝŶŐŽĂƌĚǁĞŝŐŚĞĚƚŚĞsŝůůĂŐĞƐŽŶ^ŚŝĞůĚƐŵŽƌĞŚĞĂǀŝůLJďĂƐĞĚŽŶƚŚĞƋƵĂŶƚŝƚLJĂŶĚ
ŵŝdžĞĚD/ŽĨƚŚĞƵŶŝƚƐ͘dŚĞŽĂƌĚĨĞůƚEĞŝŐŚďŽƌƚŽEĞŝŐŚďŽƌ͛ƐƌĞƋƵĞƐƚǁĂƐĞƋƵĂůůLJŝŵƉŽƌƚĂŶƚďƵƚŚĂĚ
ĐŽŶĐĞƌŶƐĂďŽƵƚƚŚĞĐŽŶƚŝŶƵĂůĂƐŬŝŶŐĨŽƌĂŶĚŶŽƚƌĞĐĞŝǀŝŶŐĐĂƉŝƚĂůŶĞĞĚƐĂƐƐĞƐƐŵĞŶƚ͘ƌĂLJƐƚĂƚĞĚƚŚĂƚ
ǁŽƵůĚŚĂǀĞďĞĞŶĂĐŽŶƐŝĚĞƌĂƚŝŽŶŚĂĚƚŚŝƐďĞĞŶĂŵŽƌĞĐŽŵƉĞƚŝƚŝǀĞƌŽƵŶĚĨŽƌĨƵŶĚŝŶŐ͘
,Kh^/E'
,KͲϮEĞŝŐŚďŽƌƚŽEĞŝŐŚďŽƌʹŽŝůĞƌ,ĞĂƚĂƚƌĂďƚƌĞĞͲΨϮϬ͕ϬϬϬƌĞƋƵĞƐƚĞĚ
DĂƌŐĂƌĞƚ>ŽŶŐŵĂĚĞĂŵŽƚŝŽŶƚŽĨƵŶĚƚŚŝƐƉƌŽŐƌĂŵĨŽƌΨϯϱ͕ϬϬϬ͘ŶŝƚĂĂƐŚĂŵƐĞĐŽŶĚĞĚ͘>ŽŶŐ
ŵĞŶƚŝŽŶĞĚƚŚĞĂŐĞŽĨƚŚĞƉƌŽƉĞƌƚŝĞƐĂŶĚďĞůŝĞǀĞƐƚŚĞLJŵĂLJŚĂǀĞƵŶĚĞƌĞƐƚŝŵĂƚĞĚƚŚĞĐŽƐƚŽĨƌĞƉůĂĐŝŶŐ
ƚŚĞďŽŝůĞƌƐ͘ĂƐŚĂŵĂƐŬĞĚƐƚĂĨĨǁŚĂƚŚĂƉƉĞŶƐǁŝƚŚƚŚĞŵŽŶŝĞƐŝĨŶŽƚĂůůĂůůŽĐĂƚĞĚƚŚŝƐĐLJĐůĞ͘ĞƚŚZŽƐĞŶ
ĂŶƐǁĞƌĞĚƚŚĂƚƚŚĞĨƵŶĚƐǁŽƵůĚƌŽůůŽǀĞƌƚŽƚŚĞ^ƉƌŝŶŐĐLJĐůĞ͘
Ϯ
dĂLJůŽƌƵŶŶŵĂĚĞĂĨƌŝĞŶĚůLJĂŵĞŶĚŵĞŶƚĨŽƌΨϮϴ͕ϬϬϬŵĞŶƚŝŽŶŝŶŐƚŚĂƚEĞŝŐŚďŽƌƚŽEĞŝŐŚďŽƌŚĂƐ
Ψϭϱ͕ϬϬϬŝŶƌĞƐĞƌǀĞƐƚŚĞLJƉůĂŶŶĞĚƚŽƵƐĞĂƐǁĞůů͘>ŽŶŐĂĐĐĞƉƚĞĚƚŚĞĂŵĞŶĚŵĞŶƚ͘
ĞƚŚZŽƐĞŶĂƐŬĞĚƚŚĞŽŵŵŝƐƐŝŽŶĞƌƐƚŽĐůĂƌŝĨLJǁŚĂƚƚŚĞLJǁĂŶƚƚŽĚŽǁŝƚŚƚŚĞƌĞŵĂŝŶĚĞƌŽĨĨƵŶĚƐŝĨƚŚĞ
ĂĐƚƵĂůĐŽƐƚĨŽƌďŽŝůĞƌƌĞƉůĂĐĞŵĞŶƚƐŝƐůŽǁĞƌƚŚĂŶƚŚĞΨϮϴ͕ϬϬϬ͘
dĂLJůŽƌƵŶŶŵĂĚĞĂƐĞĐŽŶĚĂŵĞŶĚŵĞŶƚĂƚΨϮϴ͕ϬϬϬĨŽƌďŽŝůĞƌƌĞƉůĂĐĞŵĞŶƚƐĂŶĚŽƚŚĞƌŵĂŝŶƚĞŶĂŶĐĞŽŶ
ƚŚĞƉƌŽƉĞƌƚLJ͘ĞďtĞƐƚĐŽƚƚƐĞĐŽŶĚĞĚ͘
dŚĞŵŽƚŝŽŶƚŽĨƵŶĚ,KͲϮĂƚΨϮϴ͕ϬϬϬƉĂƐƐĞĚƵŶĂŶŝŵŽƵƐůLJ͘
,KͲϯ,ŽƵƐŝŶŐĂƚĂůLJƐƚ͗sŝůůĂŐĞŽŶ^ŚŝĞůĚƐͲ,ŽƵƐŝŶŐZĞŚĂďŝůŝƚĂƚŝŽŶͲΨϭ͕ϭϮϱ͕ϬϬϬƌĞƋƵĞƐƚĞĚ
^ƚĞǀĞĂĐŬƐĞŶŵĂĚĞĂŵŽƚŝŽŶƚŽĨƵŶĚ,KͲϯĨŽƌΨϭ͕ϭϮϱ͕ϬϬϬ͘ŶŶĞƚƚĞĂĐŚĂƌŝĂƐƐĞĐŽŶĚĞĚ͘ĂĐŬƐĞŶ
ƐƚĂƚĞĚƚŚĞƌĞƋƵĞƐƚǁĂƐǁĞůůƚŚŽƵŐŚƚͲŽƵƚĂŶĚƚŚĂƚĂŶƵŵďĞƌŽĨĨĂŵŝůŝĞƐǁŝůůďĞŶĞĨŝƚĨƌŽŵƚŚŝƐƉƌŽũĞĐƚ
ĂŶĚƚŚĂƚŝƐƐĞĞŵƐůŝŬĞŵŽŶĞLJǁĞůůƐƉĞŶƚ͘ĂĐŚĂƌŝĂƐƐĂŝĚƐŚĞŝƐĨĂŵŝůŝĂƌǁŝƚŚƚŚĞƐĞƉƌŽƉĞƌƚŝĞƐĂŶĚ
ĨƵŶĚŝŶŐƚŚŝƐƌĞƋƵĞƐƚǁŝůůŬĞĞƉƚŚĞŵĂƐĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐ͕ǁŚŝĐŚŝƐŝŵƉŽƌƚĂŶƚ͘ŶŝƚĂĂƐŚĂŵƌĞŵŝŶĚĞĚ
ƚŚĞŵĞŵďĞƌƐŽĨƚŚĞŝŶǀĞƐƚŵĞŶƚŝŶƚŚĞƐĞƉƌŽƉĞƌƚŝĞƐƐƚĂƚŝŶŐƐŝŐŶŝĨŝĐĂŶƚĚŽůůĂƌƐŚĂǀĞĂůƌĞĂĚLJďĞĞŶ
ĂůůŽĐĂƚĞĚƚŽƚŚĞƉƌŽƉĞƌƚŝĞƐĂŶĚƐĂŝĚŝƚǁŽƵůĚďĞǁŝƐĞƚŽĐŽŶƚŝŶƵĞǁŝƚŚƚŚĞƌĞŚĂď͘
dŚĞŵŽƚŝŽŶƚŽĨƵŶĚ,KͲϯĂƚΨϭ͕ϭϮϱ͕ϬϬϬƉĂƐƐĞĚƵŶĂŶŝŵŽƵƐůLJ͘
1 | Page
ATTACHMENT 3
DRAFT BOARD MEETING MINUTES
CITY OF FORT COLLINS
AFFORDABLE HOUSING BOARD
Date: Thursday, October 13, 2016
Location: CIC Room, City Hall, 300 Laporte Ave.
Time: 4:00–6:00pm
EXCERPT:
AGENDA ITEM 1: CDBG Application Ranking
Note: Kristin Fritz recused herself from the ranking process.
DMA Plaza pulled out as they were not awarded 9% tax credits this round. They will reapply in the
future. Village on Shields rehab and Neighbor to Neighbor (N2N) boiler replacement are the two
remaining requests.
Diane Cohn provided her rankings in writing before the meeting. Sue shared her comments with the
board:
“Highest rank for me is the Villages on Shields (Cunningham Corner). It's a full rehab
project that allows the City to keep 286 units affordable, when it otherwise could
have gone to market rate. FCHA clearly has a well thought out plan for how they will
approach it, including building in costs for moving existing residents as they rehab.
They have received City funds for this project over the past few years, and my hope
is they are now in a position to get this rehab under way.
I support the request from Neighbor to Neighbor as well, to insure these smaller
affordable housing buildings remain affordable. I would suggest that this request does
border on routine maintenance, though boilers and water heaters are expensive, and
that N2N consider doing full work-up for rehab of these older units (roofs, exteriors,
interiors, appliances, whatever is needed), and get those bid out.
Also, would suggest that they work the costs of these more predictable wear-out costs
into their budget for the properties.
Both requests do fall within the goals of the Affordable Housing Strategic Plan, and
keep us on track that way.”
Comments/Q&A
• Curt: N2N has gone through personnel changes. What is current status?
o Sue: Executive Director has been there 4-5 years. Their staff is in good shape for
work they are anticipating. Have hired a person with development experience.
• Terence: Cost per unit for Village on Shields seems very high.
o Sue: Cost per unit right now is high for new construction as well.
• Eloise: Moving out blocks of residents to other places while make changes or one at a time?
o Sue: Have robust displacement plan. Will do vacant units first, then move people into
completed units. Working closely with residents. Hired consultant specifically for
that process.
• Jen: Does 20 year affordability start at application or completion of project?
o Sue: Think it happens when final unit is completed, but can check. With tax credit get
almost 40 more years of affordability.
• Jen: Distressing that units are in such disrepair since only built in the ‘90s.
2 | Page
o Sue: Housing Catalyst (formerly known as Fort Collins Housing Authority)
understood would need significant rehab when purchased it, but underestimated.
• Curt: Knowing that there is sufficient funding for both, and both are valid projects, put N2N
project first since it is so small and won’t get in way of other project getting complete.
o Jen: If boiler goes out, heading into winter. Make sure the people have heat. Priority
to have work done right away.
• Eloise: Selected Villages as #1. No units serve 30% AMI or lower, but good mix up to 60%.
Preserves long term affordable housing so serves Affordable Housing Strategic Plan (AHSP).
Will extend affordability restriction for 20 years. Readiness to proceed in 1 year; start
construction 2017. They have funds, and plan to move residents, and these make it a winner.
#2: N2N. Both important projects. Glad they are resolving the problem. Concern is that don’t
have long term maintenance rehab plan. Are they lacking funds to create a long term plan?
What kind of assistance do they need? Can the City help in some way? Will be better
received for funding if have a long term plan.
o Jen: Boiler is 50 years old. Had plenty of time to determine need. Easy to approve
smaller budget items, but having comprehensive plan would be better.
o Curt: With turnover of staff, maybe they have had communication issues.
o Sue: Staff comments include note that HOME funds cannot be used for this project
because a capital needs assessment has not been completed.
Eloise: Do we draw a line at the next funding cycle since they still haven’t
completed the plan? Need repairs, but have made residents suffer. Do they
really care about their tenants?
Jen: N2N is footing the bills on the utilities. Could save money with
efficiencies. Villages is investing in many efficiencies. Basic necessity of
owning a property is to factor in maintenance.
Eloise: Will extend affordability to 2036, but building will not last that long.
• Sue: Suggest that include comments on lack of capital needs
assessment in comments to CDBG.
• Terence: Village on Shields as #1 as will get most units. Concerned at cost per unit. N2N as
#2 due to lack of needs assessment. Both worthy projects.
• Curt: Would be willing to change ranking based on lack of capital needs assessment.
o Jen: agreed. Also changing ranking.
• Sue: Unanimous ranking.
Curt moved and Terence seconded a motion to approve ranking as follows:
1: Housing Catalyst: Village on Shields
2. Neighbor to Neighbor: Boiler replacement
Motion passed unanimously, 4-0-0. Jeff arrived after vote. Kristin recused herself.
ACTION ITEMS: Jen will present rankings to CDBG Commission.
1
ATTACHMENT 4
BACKGROUND INFORMATION ON THE COMPETITIVE PROCESS
City Council approved the Priority Affordable Housing Needs and Strategies report in
February 1999 which contained the following strategy:
Change from an administrative funding mechanism...to a competitive application
process for the Affordable Housing Fund.
Between September and November of 1999, a subcommittee consisting of members
from the Affordable Housing Board (AHB) and the Community Development Block
Grant (CDBG) Commission met with staff to review issues and develop options for
establishing a competitive process. In addition, the staff solicited ideas from existing
affordable housing providers.
Competitive Process
Five options for a competitive process were reviewed and discussed by the
subcommittee. The subcommittee reached a general consensus to support a
competitive process that involved both the AHB and the CDBG Commission. The option
selected had the AHB providing recommendations to City Council in regards to
affordable housing policy. In addition, the option would have the AHB reviewing all
affordable housing applications. The Board would provide a priority listing of proposals
to the CDBG Commission. The CDBG Commission would make final
recommendations to City Council for funding.
Funding Cycles
The subcommittee also agreed that there should be two funding cycles per year, one in
the spring and the other in the fall. CDBG Program funds would be allocated in the
spring to affordable housing programs/projects and other community development
activities (public services, public facilities, etc.). HOME funds and Affordable Housing
Funds (AHF) would be allocated in the fall primarily to affordable housing programs and
projects.
The staff and subcommittee agreed that overlaying the new process and cycles would
necessitate an increase in staff technical assistance to applicants. Both the
subcommittee and staff recognize that a bi-annual process will require additional
meetings by both the CDBG Commission and AHB, and will require more time from City
staff, and increase the City Council’s involvement.
2
In January, 2015 City Council approved allocating all available funds during the spring
cycle of the Competitive Process (Resolution 2015-009). HOME and AHF funds are
added to available CDBG housing funds for allocation. An optional fall cycle for housing
projects will be held if enough additional funds (about $500,000 or more) are available
to the program.
Schedule
The subcommittee also discussed two alternative schedules for the funding cycles.
The option selected incorporates a spring cycle that starts in January and ends in May,
and a fall cycle that starts in July and ends in November.
Review Criteria
In addition, the subcommittee discussed and agreed to a new set of review criteria to
be used to rank housing proposals. The criteria are divided into the following five major
categories:
1. Impact/Benefit
2. Need/Priority
3. Feasibility
4. Leveraging Resources
5. Capacity and History
The Impact/Benefit criteria provide greater rewards to proposals that target lower
income groups and provide longer benefits. The Need/Priority criteria help to assure
the proposal meets adopted City goals and priorities. The Feasibility criteria reward
projects for timeliness and documented additional funding. The Leveraging Resources
criteria reward proposals which will return funds to the City (loans) and for their ability to
leverage other resources. And, the Capacity and History criteria help gauge an
applicant’s ability to do the project and reward applicants that have completed
successful projects in the past.
Application Forms
The City uses a web-based application system through ZoomGrants. Two application
forms have been developed, one for housing and one for non-housing (primarily public
service).
City Council Adoption
On January 18, 2000, City Council approved Resolution 2000-13, formally adopting the
Competitive Process for the allocation of City financial resources to affordable housing
programs/projects and community development activities and the component parts
discussed above.
3
Guidance Charts for CDBG, HOME and AHF
There are two different guidance charts used for making funding decisions. Primarily,
the components serve to ensure that federal regulations and local policies and
preferences are being addressed. These guidance charts are one set of many tools to
assist the CDBG Commission and the AHB in Competitive Process decision making.
The ranking sheets are completed by staff, based on information provided in proposal
applications.
1
Attachment 5
Background Information on the
Community Development Block Grant (CDBG)
and HOME Investment Partnerships (HOME) Programs
Community Development Block Grant (CDBG) Program
CDBG Program National Objectives
The primary objective of the CDBG Program is the development of viable urban
communities, by providing decent housing and a suitable living environment and
expanding economic opportunities, principally for persons of low and moderate
income. Programs and projects funded with CDBG funds must address at least
one of the following three broad National Objectives:
(1) provide a benefit to low or moderate income households or
persons,
(2) eliminate or prevent slum and blight conditions, or
(3) meet urgent community development needs which pose an
immediate and serious threat to the health and welfare of the
community.
HUD regulations require at least 70% of CDBG funds be used for activities that
primarily benefit low and moderate-income persons.
CDBG Program Eligible Activities
CDBG funds can be used on a wide range of activities including:
(1) acquiring deteriorated and/or inappropriately developed real
property (including property for the purpose of building new
housing);
(2) acquiring, constructing, rehabilitating or installing publicly owned
facilities and improvements;
(3) restoration of historic sites;
(4) beautification of urban land;
(5) conservation of open spaces and preservation of natural resources
and scenic areas;
(6) housing rehabilitation can be funded if it benefits low and moderate
income people; and
(7) economic development activities are eligible expenditures if they
stimulate private investment of community revitalization and expand
economic opportunities for low and moderate income people and
the handicapped.
2
Certain activities are ineligible, under most circumstances, for CDBG funds
including:
(1) purchase of equipment,
(2) operating and maintenance expenses including repair expenses
and salaries,
(3) general government expenses,
(4) political and religious activities, and
(5) new housing construction.
HOME Investment Partnerships (HOME) Program
Program Guidelines
(Adopted by the Fort Collins City Council, July 18, 1995)
Purpose:
The purpose of the Home Investment Partnership (HOME) Program is to
increase the supply of decent, safe, and affordable housing in the City of Fort
Collins for an extended period of time. All of the HOME funds must benefit low
and very low income households which are defined by the Department of
Housing and Urban Development as having a total household income not
exceeding 80% of the median household income for the Fort Collins area.
Eligible Projects: HOME funds must be used in the following ways:
1. DIRECT HOUSING ASSISTANCE: Down payment assistance: To help
low-income individuals to purchase housing for their principal residence.
Applicants must meet income guidelines of no more than 80% of the
current median household income for the Fort Collins area and will be
required to attend a homebuyer workshop. Assistance is in the form of
zero percent deferred loan up to a maximum of $10,000 to help cover
downpayment and closing cost expenses. The funding is repaid with a
5% simple interest charge when the property is sold or transferred out of
the buyer’s name. Restrictions will apply which will assure the property
remains affordable. This is accomplished by the “recapturing” of the
HOME investment.
Tenant based rental assistance: To help low-income households avoid
eviction and homelessness, TBRA provides up to two years of housing
subsidy and case management services to stabilize households and put
them on the road to self-sufficiency.
2. NEW CONSTRUCTION of units for homeownership as well as rental
occupancy targeted for low-income individuals and families which are
3
developed, sponsored, or owned by community housing development
organizations (CHDOs), non-profit agencies, and for-profit developers.
3. ACQUISITION of undeveloped, or developed, land resulting in the
development or purchase of units for homeownership as well as rental
occupancy. All regulations regarding income guidelines, purchase price
limitations, resale limitations, rental rates, etc., will apply to acquisition
projects.
Eligible Property Types:
Eligible property types for purchase include both existing property and newly
constructed homes. Eligible property includes a single-family property, a
condominium unit, a manufactured home (including mobile homes on a
permanent foundation), or a cooperative unit. For purposes of the HOME
program, homeownership means:
(1) ownership in fee simple title, or
(2) a 99 year leasehold interest, or
(3) ownership or membership in a cooperative, or
(4) an equivalent form of ownership which has been approved by the
Department of Housing and Urban Development.
The value and purchase price of the HOME assisted property to be acquired
must not exceed 95% of the area median purchase price for that type of housing
as established by HUD. Recapture restrictions will apply. (The value must be
verified by a qualified appraiser or current tax assessment.)
HOME Program Priorities
The 2015-2019 Consolidated Plan, a planning document required for HUD by
entities receiving federal monies for housing and community development
activities, identifies the following priorities for housing related needs:
1. Increase the supply of affordable housing, including both rental and
homeownership units.
2. Expand housing opportunities for persons experiencing
homelessness.
3. Preserve existing affordable housing.
Implementation and funding of activities to address these priorities will come, in
part, from the City of Fort Collins HOME Investment Partnerships Program.
-1-
RESOLUTION 2016-085
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE PROGRAMS AND PROJECTS THAT WILL RECEIVE
FUNDS FROM THE FEDERAL COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM, THE HOME INVESTMENT PARTNERSHIPS PROGRAM,
AND THE CITY’S AFFORDABLE HOUSING FUND
WHEREAS, the Community Development Block Grant (CDBG) Program and the Home
Investment Partnerships (HOME) Program are ongoing grant administration programs funded by
the Department of Housing and Urban Development (HUD); and
WHEREAS, the City has received CDBG Program funds since 1975 and HOME
program funds since 1994; and
WHEREAS, the City Council has budgeted General Fund and Keep Fort Collins Great
(KFCG) dollars in the Affordable Housing Fund (AHF) for use in assisting affordable housing
programs and projects and community development activities; and
WHEREAS, on January 18, 2000, the City Council approved Resolution 2000-013,
formally adopting a competitive process for the allocation of City financial resources to
affordable housing programs and projects and community development activities; and
WHEREAS, on January 20, 2015, the City Council approved Resolution 2015-009,
adopting a revised competitive process that changed from two annual funding cycles, in the
spring and fall, to one funding cycle in the spring, with the fall funding cycle being optional and
used only when funds are available that were not allocated in the spring or were returned to the
City; and
WHEREAS, on May 17, 2016, the City Council approved Resolution 2016-040
allocating a total of $2,026,628 in funding for administration, housing and public service
programs; and
WHEREAS, additional funds are available but uncommitted from the spring competitive
process, and additional funds have since been received; and
WHEREAS, on October 13, 2016, the CDBG Commission met for the purpose of
preparing a recommendation to the City Council as to which programs and projects should be
funded with previously uncommitted FY2016 CDBG, HOME, and AHF funds, as well as a
HOME FY2016 grant increase and CDBG Program Income; and
WHEREAS, as required by HUD regulations, a 30-day comment period began on
October 17, 2016 and ended on November 15, 2016, and to date no comments have been
received; and
-2-
WHEREAS, the City Council has considered the recommendations of the CDBG
Commission and has determined that the City’s fall 2016 allocation should be made as set out in
this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That City staff is hereby authorized to submit an application to HUD
based on the following recommended funding allocations:
Housing Category
Applicant Project/Program Funding
Request
Commission’s
Recommended
Funding
Unfunded
Balance
Percent of
Request
Funded
DMA Plaza: Withdrawn Withdrawn $0 $0 N/A
Housing Catalyst: Village on Shields
Rehabilitation
$1,125,000 $1,125,000 $0 100%
Neighbor to Neighbor: Crabtree
Apartments Boiler Replacement
$20,000 $28,000 $0 140%
Housing Total $1,145,000 $1,153,000 $0 107%
Section 3. That, subject to the appropriation of funds by the City Council, the City
Manager is hereby authorized to execute any agreements necessary to implement the funding
allocations described herein on term and conditions consistent with this Resolution, along with
such additional terms and conditions as the City Manager, in consultation with the City Attorney,
deems necessary or appropriate to protect the interests of the City.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
15th day of November, A.D. 2016.
_________________________________
Mayor
ATTEST:
_____________________________
Chief Deputy City Clerk
-1-
ORDINANCE NO. 128, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
WHEREAS, the City has received unanticipated Community Development Block Grant
(CDBG) Program income in the amount of $74,200; and
WHEREAS, Article V, Section 9, of the City Charter permits City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the
total amount of such supplemental appropriations, in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, Article V, Section 11, of the City Charter provides that federal grant
appropriations shall not lapse if unexpended at the end of the budget year until the expiration of
the federal grant; and
WHEREAS, City staff has determined that the appropriation of all unanticipated CDBG
program revenue as described herein will not result in total appropriations in excess of the
current estimate of actual and anticipated revenues for fiscal year 2016.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated for expenditure from unanticipated
program income revenue, upon receipt thereof into the Community Development Block Grant
Fund, the sum of SEVENTY-FOUR THOUSAND TWO HUNDRED DOLLARS ($74,200), for
approved Community Development Block Grant projects.
Introduced, considered favorably on first reading, and ordered published this 15th day of
November, A.D. 2016, and to be presented for final passage on the 6th day of December, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
Chief Deputy City Clerk
-2-
Passed and adopted on final reading on the 6th day of December, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 129, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE HOME
INVESTMENT PARTNERSHIPS FUND
WHEREAS, the Home Investment Partnership Program (the “HOME Program”) was
authorized by the National Affordable Housing Act of 1990 to provide funds in the form of
Participating Jurisdiction Grants for a variety of housing-related activities that would increase the
supply of decent, safe, and affordable housing; and
WHEREAS, on March 1, 1994, the City Council adopted Resolution 1994-092
authorizing the Mayor to submit to the Department of Housing and Urban Development
(“HUD”) a notification of intent to participate in the HOME Program; and
WHEREAS, on May 26, 1994, HUD designated the City as a Participating Jurisdiction in
the HOME Program, allowing the City to receive an allocation of HOME Program funds as long
as Congress re-authorizes and continues to fund the program; and
WHEREAS, the City has been notified by HUD that the City’s HOME Participating
Jurisdiction Grant for the federal fiscal year 2016-2017 is $2,893 more than anticipated; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the
total amount of such supplemental appropriations, in combination with all previous
appropriations for that fiscal year, do not exceed the then current estimate of actual and
anticipated revenues to be received during the fiscal year; and
WHEREAS, City staff has determined that the appropriation of the HOME Program
funds as described herein will not cause the total amount appropriated in the HOME Program
Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund
during the 2016 fiscal year; and
WHEREAS, Article V, Section 11, of the City Charter provides that federal grant
appropriations shall not lapse if unexpended at the end of the fiscal year until the expiration of
the federal grant.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated for expenditure from unanticipated
revenue in the federal fiscal year 2016-2017 in the HOME Program Fund the sum of TWO
-2-
THOUSAND EIGHT HUNDRED NINETY-THREE DOLLARS ($2,893), upon receipt from
federal fiscal year 2016-2017 HOME Participating Jurisdiction Grant Funds.
Introduced, considered favorably on first reading, and ordered published this 15th day of
November, A.D. 2016, and to be presented for final passage on the 6th day of December, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
Chief Deputy City Clerk
Passed and adopted on final reading on the 6th day of December, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk