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Loveland - April 7, 2013

In August of 2010 the residents of the Loveland Housing Authority Mirasol pleaded with the city's
planning commission not to approve more apartments until significant problems for the existing
residents were fixed.  Residents reported poor building and grounds maintenance combined with a
mandatory fee  (collected as part of their rent) ranging between $113 to $297 per month depending
on the unit.

As first reported by LovelandPolitics on September 4, 2010, Mirasol residents were paying rents
exceeding the affordable rent limits the Housing Authority agreed to in exchange for receiving over
$600,000 in federal grants to construct the project.

The federal monies were given to the independent agency (whose board is appointed by the Loveland
City Council) by the City of Loveland after receiving the grants.  HACOL Director Sam Betters decided
to instead call a portion of the rent a "fee" for various benefits for residents including access to the
events center.  HUD notified Betters and the City of Loveland the mandatory fee is contrary to federal
regulations and demanded the illegally collected rent be refunded.  To date, Betters has refused to
comply with the federal regulations.

After numerous appeals even to the U.S. Secretary of HUD, HACOL was directed to repay residents by
the middle of August any amount collected over their allowed rent.  After that deadline was missed
HUD agreed to the new date of September 6, which was also missed.   In the meantime, Betters
gathered residents together and according to one resident, "Betters has held meetings with current
residents.  He still claims he did nothing wrong but they will have to raise the rent for everyone since
he will have to reimburse past residents.”

Late last month Loveland City Manager Bill Cahill briefed Loveland's City Council in an executive
session closed to the public.  According to sources who participated in that meeting, Cahill expressed
concern the City of Loveland will lose its ability to receive any further federal grant monies as a result
of the failure of Betters to  comply with his agreements with the city.  While council authorized Cahill to
explore various remedies with HACOL, an agreement to cover 50% of Better's cost was not voted on
or decided by council.

Cahill failed to place the Mirasol debacle on the council's September 17, regularly scheduled meeting
thus leaving the issue remains unresolved.  What was placed on the September 17, agenda, however, is
another city waiver of fees for a new project Better's HACOL is developing near the former Loveland
water park.
LovelandPolitics.com
Council Undecided On Paying Victims of
Betters' Affordable Housing Scam
Contrary to what was already reported
Previous LovelandPolitics stories on Mirasol
OTHER DOCUMENTS

1.  HUD letter (same as city letter) to local
authority describing its decsion

2.  City Manager notifies council of HUD
decision in an email
Sam Betters
HUD Dep. Secretary January 17, 2013 Letter
read local HUD response April, 2012
The above article appeared in the Loveland Reporter-Herald on
September 6, announcing city taxpayers will bail-out Sam
Better's Housing Authority in a deal reached with the city.  The
announcement appeared premature as Bill Cahill, Loveland's
City Manager, has not sought approval from council nor has any
vote been taken by the council on the settlement offer by Cahill.