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HomeMy WebLinkAboutMemo - Read Before Packet - 06/17/2025 - Memorandum from Adam Molzer re Context for Affordable Housing Funding RecommendationsSocial Sustainability Department 222 Laporte Ave. PO Box 580, Fort Collins, CO 80522 970-221-6757 amolzer@fcgov.com MEMORANDUM Date: June 17, 2025 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Jacob Castillo, Chief Sustainability Officer From: Adam Molzer, Human Services Program Manager Subject: Context for Affordable Housing Funding Recommendations BOTTOM LINE The purpose of this memo is to provide additional context related to the 2025 funding recommendations for affordable housing projects and programs that have been submitted by the Human Services and Housing Funding Board (HSHFB), including specific interest in the disparities in ranked order of the proposals between HSHFB and the Affordable Housing Board (AHB), as well as HSHFB’s ranking of the Remington Parking Lot proposal from Housing Catalyst. SUMMARY The seven affordable housing funding proposals received in the 2025 process were all provided with equal opportunity to compete for funding. The ranking efforts conducted by HSHFB and AHB in April were done independently, with the final recommendations submitted to Council by HSHFB, as directed by City Code. The boards also met jointly on March 26. HSHFB received the AHB rankings/comments in early April and discussed the AHB ranked list on April 9. Funding deliberations occurred April 29. The rankings presented to Council should not be viewed as a lack of support for a project; rather, they are the recommended order of projects to award the available funds cascading down until expended. It is often that the lower ranked projects are not funded as a result of: • inadequate funding to meet all requests ($4.3M requested, $2.5M available), and/or • timing and readiness of the project to proceed HSHFB members commented during the 2025 process that all projects submitted were good projects, but there just wasn’t enough funding available. Docusign Envelope ID: 2180EE88-DBE6-48AA-AA8B-02F9EC226F80 2 The table below outlines the respective factors influencing each boards’ rankings, recognizing that each board is aware that City Council Priority 1 is to: Operationalize City resources to build and preserve affordable housing. AHB HSHFB Materials & Interaction with Applicants • Full Application Materials • Presentations from Applicants • Q&A Session with Applicants • Presentations from Applicants • Q&A Session with Applicants Exchanges with Other Board • Dialogue at March 26 Joint Meeting • AHB Ranking and Comments Sent to HSHFB for Non-Binding • Discussed AHB Rankings at April 9 Regular Meeting Guiding Factors • HUD Consolidated Plan • Vulnerable Populations: seniors, disability, etc. • Individual Assessment of Proposal Merits • HUD Consolidated Plan • Maximizing Funds • Leverage Provided from City Funds • Vulnerable Populations: seniors, mobile home parks, etc. • Individual Assessment of Proposal Prioritization Staff Guidance Not Given • New Units • Preservation of Units The boards’ rankings were more aligned with one another between 2022-2024 (following the same processes), however; it can be reasonably inferred that in some years the two boards may have different opinions of how they rank the affordable housing proposals. Specific to Housing Catalyst’s proposal requesting $1.25M for development costs of the Remington Parking Lot, AHB ranked the proposal #2 and HSHFB ranked the proposal #7. The HSHFB discussions largely were focused on the timing of the project, since it had not yet completed a conceptual review and its readiness to proceed was uncertain. One member Docusign Envelope ID: 2180EE88-DBE6-48AA-AA8B-02F9EC226F80 3 brought up parking displacement concerns, and staff advised that those concerns should not be a factor in this ranking. The HSHFB took a strategic approach to optimizing the funds. After ranking their top 2 projects, the board recognized that the remaining funds could first benefit the smaller dollar request applications, with the final balance of funds cascading down to one new construction project. The board chose the VOA Switchgrass new construction project to support with the remaining funding balance, given its anticipated readiness to utilize the funds in 2026 and focus on senior residents. NEXT STEPS • Process improvements for 2026 are currently being gathered and will be assessed further in Q3-Q4. Examples may include: o Additional joint meetings between HSHFB and AHB to prompt richer dialogue. o Modifying the HSHFB ranking process to include more metric scoring. o Standardizing the guiding factors influencing each board’s ranking process. • Sustainability Service Area staff met with Housing Catalyst’s leadership in early June to answer questions about the 2025 process, and will consider suggestions they offered for process improvements. • The staff liaison for HSHFB will meet with AHB at their August regular meeting to answer questions, solicit feedback and clarify misunderstandings. CC: Beth Yonce, Social Sustainability Director Beth Rosen, HUD Compliance Manager Vanessa Fenley, Housing Manager Sue Beck-Ferkiss, Housing Policy Manager Ted Hewitt, Assistant City Attorney Docusign Envelope ID: 2180EE88-DBE6-48AA-AA8B-02F9EC226F80