SEPTEMBER 2004 FUNDING RECOMMENDATIONS COMMUNITY DEVELOPMENT BLOCK GRANT

Transcription

1 SEPTEMBER 2004 FUNDING RECOMMENDATIONS COMMUNITY DEVELOPMENT BLOCK GRANT Meeting held September 30, :00 p.m. 9:00 p.m. 281 North College Avenue Fort Collins, Colorado Commission members present: Staff: Phil Majerus, President Robert Browning Eric Berglund Michael Kulisheck Jeff Taylor Dennis Vanderheiden Cheryl Zimlich Tia Molander Laura Sutherlin Ken Waido Heidi Phelps Maurice Head Julie Smith Katherine Martinez Produced by Meadors Court Reporting, LLC 171 North College Avenue Fort Collins, Colorado fax 1

2 MEETING HIGHLIGHTS Extensive discussion was held concerning the Council priorities, and the Commission s efforts to adhere to them, concerning suggested percentages of individual funding sources to be applied to provision housing, rehabilitation, and public facilities versus the overall percentages to be applied to those programs. While the suggested percentages represent worthy goals, the dynamics of the applications for each funding cycle may dictate different results. At the conclusion of motions and discussions regarding funding: Moved by Ms. Zimlich and seconded: To accept the funding recommendations in toto. Discussion was held that the Commission was striving to meet the highest needs of the community with the funding sources available. Motion passed, 7-2. Designated speakers for the October 26, 2004, 6:00 p.m. Council session: HO-1: HO-2 HO-3: HO-4: HO-5: PF-1: PF-2: PF-3: PF-4: PF-5: Mr. Taylor Mr. Taylor Mr. Berglund Ms. Molander Mr. Vanderheiden Mr. Browning Ms. Molander Ms. Sutherlin Mr. Vanderheiden Mr. Taylor. 2

3 FALL FUNDING CYCLE (HOUSING ONLY) HO-1 Home Buyer Assistance - $500,000 Moved by Mr. Taylor, seconded by Mr. Berglund: To recommend full funding, from the following sources: $246,138, HOME funds; $200,000, program income; $53,862, HOME American Dream funds. Friendly amendment offered by Mr. Browning, but declined by the mover: To add the stipulation that no more assistance is offered than needed, and that the assistance is not applied if monthly payments are not affected. This concept will be explored in future meetings. Motion passed unanimously. Total recommended funding level - $500,000 Highly successful program, both in short and long terms. Private lenders report a great demand for the program. The funds are fully used year to year, demonstrating the need. The program would be better served by tailoring the amount of the assistance to the specific need; this option is being studied. HO-2 Land Bank Program - $450,000 Moved by Mr. Kulisheck, seconded by Ms. Zimlich: To recommend full funding. Discussion was held over the possibility of the Land Bank receiving program income in the future through partnering with a for-profit entity. Motion passed, 5-4. Moved by Mr. Berglund, seconded by Mr. Vanderheiden: To reallocate funds through adding $297,000 to the Affordable Housing Fund, by reducing the HO-2 Land Bank program recommendation by $200,000 and the HO-3 Sleepy Willow program recommendation for the remainder. Discussion was held over the priority guidelines as set by City Council. Motion failed 3-6. Total recommended funding level - $450,000 The program invests in longer-term needs when available land will be even less available than in the present day. Good insurance program for the city. The use of any land purchased is tied to affordable housing. Funds available to the CDBG system are the only funds that can be used to fund this program. The treatment of this application and HO-5 could be viewed as inconsistent, i.e., funding for acquisition in full rather than in part. The land is held for potential use in the future even though a present need can be shown. 3

4 HO-3 Sleepy Willow Apartments - $426,000 Moved by Ms. Zimlich, seconded by Mr. Vanderheiden: To recommend funding of $426,018; sources, $329,120 CDBG and the remainder from the Affordable Housing Fund. Friendly amendment, accepted by mover and second: Funding to be contingent upon complying with the recommendations of the consultants report. The Commission strongly urges the applicant to seek alternate funding sources to aid the remainder of the $790,000 in needs. Staff noted that the preferred use of the Affordable Housing Fund is for production. Motion passed 5-2, with one abstention. Moved by Mr. Browning: To recommend full funding of PF-1 CASA, Inc. Discussion was held concerning available funding for the motion. Moved by Mr. Browning, seconded by Ms. Zimlich: To recommend full funding, with $48,807 reallocated from HO-3 Sleepy Willow recommended funding. Motion failed 4-5. Moved by Mr. Berglund, seconded by Mr. Vanderheiden: To reallocate funds through adding $297,000 to the Affordable Housing Fund, by reducing the HO-2 Land Bank program recommendation by $200,000 and the HO-3 Sleepy Willow program recommendation by $97,000. Discussion was held over the priority guidelines as set by City Council. Motion failed 3-6. Moved by Ms. Molander, seconded by Ms. Zimlich: To recommend funding of $45,000 for rehabilitation in accordance with the priorities established by City Engineering. Source: Reallocation from HO-3 Sleepy Willow funding recommendation. Friendly amendment proposed by Mr. Majerus, accepted by the mover and second: To allocate an additional $7,193 from CDBG program income, to be applied to replacement of lead-based paint. Motion passed, 7-2. Moved by Mr. Majerus, seconded by Mr. Berglund: To reduce HO-3 Sleepy Willow recommended funding by $52,000 of CDBG funding; and to recommend allocation of those funds to PF-4 Crossroads Safehouse Community Outreach Center. Mr. Majerus noted that this motion was made both in response to the needs of Crossroads Safehouse and the dissatisfaction expressed with the management fee inherent in the Sleepy Willow application. Motion passed, 7-2. Moved by Mr. Kulisheck, seconded by Mr. Browning: To reduce HO-3 Sleepy Willow recommended funding by $56,000 of CDBG funding; and to recommend allocation of those funds to PF-1 CASA, Inc. Harmony House. Mr. Kulisheck noted the urgent needs of Harmony House as precedence over items of less need in Sleepy Willow. Motion passed, 6-3. Moved by Mr. Berglund, seconded by Mr. Browning: To increase funding by $69,018. Source: Affordable Housing Fund. Motion passed unanimously. Moved by Mr. Majerus, seconded by Mr. Vanderheiden: To reallocate CDBGsourced recommended funding for PF-2 United Way and PF-3 Crossroads Safehouse to HO-3 Sleepy Willow. Motion failed

5 Moved by Mr. Taylor, seconded by Mr. Majerus: To reallocate $10,500 of recommended funding for PF-2 United Way to HO-3 Sleepy Willow. Motion failed, 4-4. Total recommended funding level - $342,018 Prior funding was withheld pending study; now the study is complete, and findings support funding. The project has good housing for very low income that needs to stay in inventory. The applicant has taken appropriate steps to reduce the amount requested. Measures have been taken to reduce the operating loss. Funding would help the program s competitiveness. This project was acquired when there was a high need and is following measures of improvement been recommended by the consulting as suggested by the Commission. Program seems to focus on minimum rent rather than 30% AMI; as such, it is not presently competitive with other minimumrent locations. Business plan still shows a loss in this difficult market. Other projects show more solid promise. The project has serious challenges to its success, and funding brings risk to public moneys. It is not determined whether funding would allow the project to carry its ongoing losses. Probable short-term success of the project seems questionable with present resources. The problems are too broad in scope to be easily resolved. HO-4, FCHC 300 First Street SRO Rehab - $136,455 Moved by Ms. Molander, seconded by Mr. Berglund: To recommend full funding; source, HOME FY04 funds. Motion passed unanimously.. Total recommended funding level - $136,455 The project serves a unique and underserved niche of very low- and noincome residents. The funding requested is appropriate for the number of units. The visual aspects are impressive. High numbers seen in the management fee. 5

6 HO-5, CARE Housing, Inc. - $250,000 Moved by Mr. Kulisheck, seconded by Ms. Molander: To recommend full funding. Discussion was held over the appropriate amount of seed money needed by a project to be credible in the eyes of potential funding sources. Motion failed, 4-5. Moved by Mr. Browning, seconded by Mr. Vanderheiden: To recommend funding of $100,000. Motion passed, 8-1. Total recommended funding level - $100,000 Program has an excellent track record in providing affordable housing. The project will add a significant number of affordable units to the City s inventory. Funding right represents a vote of confidence by the City when the applicant approaches lenders. If a site is not selected, the applicant will not use the funding. Funding request is higher than needed at this early juncture, particularly without a site having been selected. Funds are being used somewhat speculatively. A concern was expressed of encumbering too much funding for a speculative site when other more immediate projects can use the funding. 6

7 PF-1, CASA, Inc. Harmony House Visitation Center - $56,000 Moved by Mr. Browning: To recommend full funding. Discussion was held concerning available funding for the motion. Moved by Mr. Browning, seconded by Ms. Zimlich: To recommend full funding, with $48,807 reallocated from HO-3 Sleepy Willow recommended funding. Motion failed 4-5. Moved by Mr. Kulisheck, seconded by Mr. Browning: To reduce HO-3 Sleepy Willow recommended funding by $56,000 of CDBG funding; and to recommend allocation of those funds to PF-1 CASA, Inc. Harmony House. Mr. Kulisheck noted the urgent needs of Harmony House as precedence over items of less need in Sleepy Willow. Motion passed, 6-3. Total recommended funding level - $56,000 Program addresses a community need. The repairs are sorely needed. The requested funding request is surprisingly low when viewing the scope of repairs. Funding would help restore a historical site. Full leverage for historical funding and/or alternative sites may not have been fully explored. Long-term maintenance has not been addressed. 7

8 PF-2, United Way Housing Services Day Center - $87,500 Moved by Mr. Berglund, seconded by Ms. Molander: To recommend full funding. Mr. Waido advised the Commission regarding HUD concerns of apportioning off any part of the building committed to worship services. This reduces funding eligibility to $70,500. Motion amended by Mr. Berglund, with consent of the second: To recommend funding to the legally applicable limit of $70,500. Motion passed unanimously. Moved by Mr. Vanderheiden: To reallocate $40,500 of recommended funding from PF-2 United Way in favor of PF-3 Crossroads Safehouse. Motion failed for lack of a second. Moved by Mr. Majerus, seconded by Mr. Vanderheiden: To reallocate CDBGsourced recommended funding for PF-2 United Way and PF-3 Crossroads Safehouse to HO-3 Sleepy Willow. Motion failed 2-7. Moved by Mr. Browning, seconded by Mr. Vanderheiden: To reallocate $40,500 of recommended funding from PF-2 United Way in favor of PF-4 Crossroads Safehouse. Motion failed 4-4, with one abstention. Moved by Mr. Taylor, seconded by Mr. Majerus: To reallocate $10,500 of recommended funding for PF-2 United Way to HO-3 Sleepy Willow. Motion failed, 4-4. Total recommended funding level - $70,500 The proposal encompasses a public facility that addresses a real and ongoing community need. The Commission has been in agreement concerning the need of this facility. Leveraging is effective, particularly for sources such as Loveland. The applicant s diligence is impressive. The project scores high on the ranking criteria. The ready availability of these facilities can serve as a magnet for nonresidents who come to use these services. A question exists whether this project would proceed without this funding. 8

9 PF-3, Crossroads Safehouse 25 th Anniversary Rehab - $225,000 Moved by Ms. Molander, seconded by Ms. Zimlich: To recommend funding of $45,000 for rehabilitation in accordance with the priorities established by City Engineering. Source: Reallocation from HO-3 Sleepy Willow funding recommendation. Friendly amendment proposed by Mr. Majerus, accepted by the mover and second: To allocate an additional $7,193 from CDBG program income, to be applied to replacement of lead-based paint. Motion passed, 7-2. Total recommended funding level - $52,193 The program serves a high need. Repairs would make the location more attractive for the people in need who seek to use it. The roofing and electrical repairs present the highest priorities of this application. Structural concerns are higher need than aesthetic concerns. Other priorities can be addressed in future applications or by other funding sources. Rehabilitation concerning lead-based paint was not in the proposal. PF-4, Crossroads Safehouse Community Outreach Center - $105,000 Moved by Mr. Browning, seconded by Mr. Majerus: To recommend full funding, with $98,000 reallocated from HO-3 Sleepy Willow recommended funding. Motion failed, 3-6. Moved by Mr. Majerus, seconded by Mr. Berglund: To reduce HO-3 Sleepy Willow recommended funding by $52,000 of CDBG funding; and to recommend allocation of those funds to PF-4, Crossroads Safehouse Community Outreach Center. Mr. Majerus noted that this motion was made both in response to the needs of Crossroads Safehouse and the dissatisfaction expressed with the management fee inherent in the Sleepy Willow application. Motion passed, 7-2. Moved by Mr. Browning, seconded by Mr. Vanderheiden: To reallocate $40,500 of recommended funding from PF-2 United Way in favor of PF-4 Crossroads Safehouse. Motion failed 4-4, with one abstention. Total recommended funding level - $52,000 The program addresses a high and unique community need and facility. The facility needs more room, and support by the City would generate more support by others. The buildings will be destroyed if not put to use. Many unforeseen expenses are possible or even inherent in moving a building. The application does not rank high with housing needs. Other funding sources may well be implemented. 9

10 PF-5, Wingshadow, Inc. Facility Improvements - $67,029 Moved by Ms. Molander, seconded by Mr. Majerus: To recommend no funding. Motion passed unanimously. Total recommended funding level - $0 The project is admirable and effective.. The construction proposed is not a high priority for housing. Although it is admirable that the program is working to be debt-free, it could consider an encumbrance in order to fund this project. Commission members are not reassured that all reasonable funding aids have been explored. 10