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HomeMy WebLinkAbout02/06/2025 - AFFORDABLE HOUSING BOARD - AGENDA - Regular MeetingAFFORDABLE HOUSING BOARD REGULAR MEETING Participation for this Affordable Housing Board Meeting will be in person at 222 Laporte Avenue, Colorado River Room – 1st floor conference room. You may also join online via Teams, using this link: AHB Teams Meeting Meeting ID: 273 629 013 506 Passcode: sJKVjM Online Public Participation: The meeting will be available to join beginning at 3:45 pm, February 6, 2025. Participants should try to sign in prior to the 4:00 pm meeting start time, if possible. For public comments, the Chair will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Zoom session to ensure all participants have an opportunity to address the Board or Commission. To participate: • Use a laptop, computer, or internet-enabled smartphone. (Using earphones with a microphone will greatly improve your audio). • You need to have access to the internet. • Keep yourself on muted status. 222 Laporte Avenue, First Floor Conference Room: Colorado River Room Teams – See Link Below 1. CALL TO ORDER 2. ROLL CALL 3. AGENDA REVIEW 4. PUBLIC PARTICIPATION 5. APPROVAL OF MINUTES a. January 9 Regular Meeting 6. BOARD PRIORITY COMMITTEE REPORTS (45 minutes) a. Knowledge Repository – Bob and John b. Outreach, Education and Partnerships – Claire and Josh • Discuss field visits for a few meetings c. Council and Local Legislative Support – Stefanie and John • Update one-page introduction to the work of the AHB – John d. Equity & Justice in Affordable Housing – Jorja and Liz • Board Action: Discussion 7. NEW BUSINESS a. 2024 Annual Affordable Housing Board Report – John (15 minutes) AFFORDABLE HOUSING BOARD REGULAR MEETING • Board Action: Discussion & Approval 8. UNFINISHED BUSINESS a. Board Liaison Assignments, Board Members (15 minutes) • Board Action: Assignment • Planning and Zoning Commission • Board of Realtors • Economic Advisory Board • Transportation Board • Human Relations Commission • Disability Advisory Board • Senior Advisory Board • Human Services and Housing Funding Board • Urban Renewal Authority • Associated Students of Colorado State University 9. OLD BUSINESS NOT COMPLETED AT PREVIOUS MEETING – N/A 10. LIST OF TOPICS BEING ADDRESSED AT MEETING – See Above 11. BOARD MEMBER REPORTS a. Meeting Logistics – Hybrid Meetings • Discuss meeting locations for 2025 b. Liaison Reports (10 minutes) 12. OTHER BUSINESS a. City Council 6-month Planning Calendar review (5 minutes) b. Council Comments – Who, what? (5 minutes) c. Review 2025 Work Plan (5 minutes) d. Update on Affordable Housing Projects (5 minutes) e. Future AHB Meeting Agenda (5 minutes) 13. BOARD MEMBER CONCERNS, ANNOUNCEMENTS a. As needed 14. ADJOURNMENT SAVE THE DATES! • February 11- City Council Work Session on Impact Fee Methodology Workplan • February 25- City Council Work Session on Mobile Home Park Local Enforcement of State Law Options AFFORDABLE HOUSING BOARD REGULAR MEETING • March 25 – City Council Work Session on City Priority 1 Operationalize City Resources to Build and Preserve Affordable Housing, Impact Fees & ADU policy • March 26 – Joint meeting of AHB & Human Services and Housing Funding Board • April 8- Council Work Session on City Priority 2 Improve Human & Social Health for Vulnerable Populations Did you know that the City has a Housing Newsletter? It is a great place to send people looking to learn more about what is going on in Fort Collins around Housing. Sign up for it at: fcgov.com/housing. Social Sustainability 222 Laporte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6753 MEMORANDUM TO: Members of the Affordable Housing Board FM: Sue Beck-Ferkiss, Social Policy and Housing Programs Manager RE: Hybrid Board Meeting The next Affordable Housing Board meeting will be held: Thursday, February 6, 2024 In person at 222 Laporte Ave or Online via Microsoft Teams at 4:00 BOARD MEMBERS: If you cannot attend the meeting, please contact Sue Beck - Ferkiss either by email (sbeckferkiss@fcgov.com) or by phone (221-6753). BUSINESS 1. Approval of Minutes: Copies of the draft minutes of the January Regular meeting is attached for the Board’s approval. Approval of minutes requires a formal motion and vote by the Board. 2. Hybrid meetings: 2025 meetings will be hybrid. PRESENTATION/DISCUSSION: 1. PRIORITY COMMITTEE REPORTS, JOHN AND COMMITTEE LEADS (45 MINUTES) The Board has authorized work through committees as follows: • Knowledge Repository; • Outreach, Education and Partnerships o How we want to update the AHB Key Priority Flyer – 2024 version attached. o Also see verbiage from Equity and Justice committee attached. • Council and Local Legislative Support; and • Equity and Justice in Affordable Housing. 2. 2024 ANNUAL AFFORDABLE HOUSING BOARD REPORT, BOARD(15 MINUTES) Annually, the City Clerk’s Office requires a summary report of the Board’s activities from the prior year. The draft in your packet was built from last year’s agenda and minutes. 3. BOARD LIAISON ASSIGNMENTS, BOARD (15 MINUTES) 2 For 2025, the Board has identified and agreed to follow the following Boards and Commissions. • Board Action: Board members are asked to choose one or more to attend meetings or read meeting minutes for: 1.Planning and Zoning Commission 2.Board of Realtors 3.Economic Advisory Board 4.Transportation Board 5.Human Relations Commission 6.Disability Advisory Board 7.Senior Advisory Board 8.Human Services and Housing Funding Board 9.Urban Renewal Authority 10.Associated Students of Colorado State University 4. BOARD MEMBER IDEAS – SPACE FOR NEW ITEMS (15 MINUTES) BOARD BUSINESS: • Meeting Logistics – ▪ Discuss Meeting locations for 2025 • Member terms update – o Each board member’s term is decided by City Council when they appointed you. They are of different lengths to stagger board membership. Still, all board members can serve up to 8 years upon application and reappointment by City Council. o All regular terms expire in June. Here are the current term expiration dates: ▪ Stefanie June 30, 2027 ▪ John June 30, 2025 ▪ Bob June 30, 2026 ▪ Josh June 30, 2026 ▪ Claire June 30, 2028 ▪ Liz June 30, 2026 ▪ Jorja June 30, 2026 3 ▪ Kristin - Ex Officio Role starting January 2024 • Contact with Council Liaison – o CM Potyondy is our City Council liaison and would like to be invited to specific meetings and will attend if available. She will have quarterly meetings with the Board Chair. • Project Certification – n/a • Ideas for future meetings: Housing Agency panel of providers – one for rental housing and one for home ownership; Land Bank deep dive (Sue); Incentives deep dive; Data Gaps Analysis – What do we have and what do we want (Tyler); Water Issues in Colorado (Mayor Arndt); Eviction and Foreclosure Prevention (Kelly Evans); Murphy Center update and plans for the future (Homeward Alliance); Grant Opportunities; How to Support Mobile Home Park conversions; How to keep locals in housing; and Volunteer needs for housing providers. ATTACHMENTS 1. Draft Minutes of the January meeting 2. FYI - City Council 6 Month Planning Calendar 3. AHB Key Priority 2024 Flyer 4. FYI- Summary Handout of 2024 Annual Homelessness Assessment Report 5. Draft 2024 AHB Annual Report 6. Equity and Justice Committee 2024 Key Strategies 7. FYI – Loveland Housing Fee Study AFFORDABLE HOUSING BOARD REGULAR MEETING Thursday, January 9, 2025 – 4:00-6:00 PM 215 N Mason Street, second floor and online via Microsoft Teams 1. CALL TO ORDER: 4:04 PM 2. ROLL CALL a. Board Members Present • John Singleton, Chair • Bob Pawlikowski, Vice Chair • Claire Bouchard • Stefanie Berganini • Jorja Whyte • Liz Young-Winne • Kristin Fritz, Ex Officio b. Board Members Absent • Josh Beard c. Staff Members Present • Sue Beck-Ferkiss, Staff Liaison • Jessi Kauffmann, Minutes • Ginny Sawyer, City Manager’s Office • Sylvia Tatman-Burruss, City Manager’s Office • Joe Wimmer, Finance Department d. Guest(s) • Lisa Cunningham • Marilyn Heller • Nina Clark 3. AGENDA REVIEW – No changes. 4. CITIZEN PARTICIPATION a. Marilyn Heller • League of women voters affordable housing team selected topic: supportive housing panel including someone from Housing Catalyst, St. Valentine’s and Loveland Housing Authority. More details to come end of April. • Took a tour of the new youth shelter in Loveland – estimated opening end of January/early February. b. Lisa Cunningham • Shared new position for the Loveland Affordable Housing Task Force. Interdisciplinary group to address affordable housing – paving the way to create less red tape around affordable housing. Currently working on small-lot standards. Commissioned an equitable fee study to help reduce fees for affordable housing and smaller products. 5. APPROVAL OF MINUTES Claire Bouchard motioned to approve the December 5 Regular Meeting Minutes. Liz Young-Winne seconded. Approved 7-0. Bob Pawlikowski abstained. 6. NEW BUSINESS a. Housing Manager Introduction • John Singleton introduced Vanessa Fenley, the new Housing Manager in Social Sustainability. Vanessa provided a brief introduction. b. Board Officer Nominations • John and Bob described their experiences as Chair and Vice Chair for the Board. • John Singleton called for nominations for Chair. Bob Pawlikowski nominated Stefanie Berganini. John Singleton and Claire Bouchard verbally supported the nomination. • John Singleton called for nominations for Vice Chair. Bob Pawlikowski self-nominated. Call for a motion for the slate of candidates, Stephanie Berganini as Chair and Bob Pawlikowski as Vice Chair. Claire motioned. Liz seconded. Approved 7-0. c. Presentation on new Community Capital Improvement Program • Ginny gave a summary of funding at the city. • The Community Capital Improvement Program was shared with the goal of benefiting everyone in the community and projects were geographically dispersed. • ¼ Cent Tax Revenue would bring $100 million over the next 20 years. • Themed buckets in this package include Parks & Rec, Culture, Mobility/Safety, Active Modes, Housing, Transit, Nature & River, Zero Waste Infrastructure. • Affordable Housing Fund • Proposed at $10 million • Could be used for a revolving loan fund start-up • Bonding against the fund would create $7.5M in available funds • This is a renewal tax package and will be on the November 2025 ballot. 7. Board Priority Committee Reports a. Knowledge Repository • John gave a quick recap of the plan to provide links and guidance for a tile on the Affordable Housing Board webpage. • Members of this sub-committee will be required to bring 3 tile items to the board each month for board review. b. Outreach, Education and Partnerships • No updates. c. Council and Local Legislative Support • Sue and John met with Councilperson Potyondy last week. The goal will be to have the Chair or Vice Chair and a rotating Board member to attend these proposed quarterly meetings. • Stefanie went over a few high-level items from Part 1 of the HUD Homelessness Report at the national and Colorado state level. • The number of individuals counted experiencing homelessness in the state of CO went up by almost 30%. • 40% of those counted were employed in 2023 in Colorado. d. Equity & Justice in Affordable Housing • Liz and Jorja created a document with edits to the Affordable Housing Key Strategies under DEI in Affordable Housing. It will be discussed more in detail at the next meeting. 8. BOARD MEMBER REPORTS a. Meeting Logistics b. Liaison Reports 9. STAFF REPORTS a. Liaison Report (10 minutes) 10. OTHER BUSINESS – None. 11. ADJOURNMENT a. Meeting adjourned at 5:58 PM. Minutes approved by the Chair and a vote of the Board/Commission on XX/XX/XX Signature: X/XX/XX– MINUTES Page 1 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Date Service Area Type Agenda Item Strategic Outcome Proclamation Motion Minutes Approval Utility Services Ordinance-2nd Reading watersheds while delivering a resilient, economically responsible and high-quality water supply Reading affordability to address inequities in housing so that everyone has healthy, stable housing they Reading for Multi-unit development.affordability to address inequities in housing so that everyone has healthy, stable housing they can afford. Riverbend Court Right-of-Way Vacation to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort Services Reading Reduction Act.greenhouse gas, energy and waste goals; reduce air pollution; and improve community resilience. Employee with the Fraternal Order of Police CITY COUNCIL AGENDA PLANNING - PUBLIC 6-MONTH CALENDAR Agenda items containing action on current Council priorities as adopted by Resolution 2024-013 through 2024-024 are shaded light orange. : This document is posted every Monday and Thursday. Changes made between postings will not be reflected until the next posting. February 4, 2025 Council Meeting 1/30/2025 6-Month Planning Page 1 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome City Attorney's Office /Community Homeless Outreach Update safety services and the municipal justice system through innovative service delivery models. Services Discussion demolition waste facility. Services equipment that will revitalize parks and recreational facilities, as the planned buildout of the Date Service Area Type Agenda Item Strategic Outcome project.to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort Supplemental appropriation for the College Avenue-Trilby Road Intersection to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort Office community and increase the City’s effectiveness by simplifying processes and delivering modern February 11, 2025 Work Session Council Meeting 1/30/2025 6-Month Planning Page 2 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome PDT Services Ord-1st Rdg Fischer Rezoning to remove a condition for extra parking on a previous rezoning. Neighborhood & Community Vitality NCV 1 – Increase housing supply, type, choice and affordability to address inequities in housing so that everyone has healthy, stable housing they Services Way.to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort Services affordability to address inequities in housing so that everyone has healthy, stable housing they February 25, 2025 Work Session Council Meeting Council Meeting 1/30/2025 6-Month Planning Page 3 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Ordinance-2nd Reading Financial Services community and increase the City’s effectiveness by simplifying processes and delivering modern prevention and protection to include open fire and burning restrictions affordability to address inequities in housing so that everyone has healthy, stable housing they Services equipment that will revitalize parks and recreational facilities, as the planned buildout of the ADU Discussion Services Discussion Impact of Impact Fees on Affordable Housing affordability to address inequities in housing so that everyone has healthy, stable housing they Services Discussion affordability to address inequities in housing so that everyone has healthy, stable housing they Office community and increase the City’s effectiveness by simplifying processes and delivering modern Services Contracting Program greenhouse gas, energy and waste goals; reduce air pollution; and improve community resilience. greenhouse gas, energy and waste goals; reduce air pollution; and improve community resilience. Services Discussion highlights, and discussion equity so that persons of all identities, including race, ethnicity, religion, sexual orientation, gender identity, gender expression, age, mental and physical abilities, and socioeconomic levels can access programs and services with ease and experience equitable outcomes. March 25, 2025 Work Session Council Meeting Work Session 1/30/2025 6-Month Planning Page 4 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Sustainability Services Work Session Discussion Southeast Community Center Discussion #2 Proclamation Earth Day Motion Ordinance-2nd Reading Ordinance-1st Reading Resolution Work Session Discussion PFA Annual Report PDT Services Work Session Discussion The Future of Commercial Corridors and Centers: Land Use Code Updates Future of Sounds in Fort Collins April 29, 2025 Fifth Tuesday Services improve habitat conditions across the community and ensure equitable access to nature. /Community to have no serious injury or fatal crashes for people walking, biking, rolling or driving in Fort May 6, 2025 Council Meeting Council Meeting Council Meeting Work Session Work Session 1/30/2025 6-Month Planning Page 5 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Community Services Resolution Approving Fort Fund Grant Disbursements - Program Support Grant, March Deadline Community Services equipment that will revitalize parks and recreational facilities, as the planned buildout of the Office Discussion Employee Services improve habitat conditions across the community and ensure equitable access to nature. July 8, 2025 Work Session Council Meeting Council Meeting Work Session Work Session Council Meeting Work Session Council Meeting 1/30/2025 6-Month Planning Page 6 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Community Services Resolution Approving Fort Fund Grant Disbursements - Special Event Grant, June Deadline July 22, 2025 Work Session CANCELLED 1/30/2025 6-Month Planning Page 7 Date Agenda Item Strategic Outcome 9/16/2025 unanticipated revenue, grants and unforeseen costs that had not 10/21/2025 11/4/2025 Budget for General Improvement District (GID) No. 15 - Skyview. 11/4/2025 11/4/2025 11/4/2025 11/4/2025 adopted 2025-26 Biennial Budget and associated revisions to the 2026 11/25/2025 employee experience by attracting, developing and retaining diverse talent and fostering a culture of employee safety, belonging and empowerment across the organization. 12/16/2025 Development Partners on Magpie Meander Natural Area and Soft Gold quality water supply. Date Item Strategic Outcome Future Plan to advance the City's greenhouse gas, energy and waste goals; reduce air pollution; and improve REGULAR MEETING ITEMS UNSCHEDULED/UPCOMING ITEMS WORK SESSION ITEMS 2024 KEY STRATEGIES Engaging the Community Our mission is to engage and educate the community on status, constraints, and best practices in support of housing affordability. - JOHN SINGLETON (2024 CHAIR) Get Involved Learning ResourcesCome to a Meeting Build board institutional knowledge available to the public. 1) Identify and develop partnership opportunities for communication and outreach 2) Identify and develop opportunities to bring community visibility to AHB’s work Identify and develop advocacy plan for important and controversial housing issues. OBJECTIVE Board onboarding supplement Quicker community outreach on information A “cheat sheet” Housing Resource Guide Invite Equity Officer to an AHB meeting Develop a plan for Council communications When to invite Council Liaison to AHB meetings Develop a database of organizations to target, including which AHB priorities relate to the organization. Develop and outline a Council recommendation on deed restrictions Develop and outline a Council recommendation on ADUs Develop and outline a Council recommendation on U+2 Update AHB page on City Clerk’s website KEY RESULTS The Affordable Housing Board advises the City Council on matters pertaining to affordable housing issues of concern to the City. Knowledge Repository KEY PRIORITIES Define AHB’s perspective and goals regarding DEI AHB has connected with marginalized community members to engage, learn, and teach AHB members have identified and can speak to AHB’s values and goals within DEI AHB has identified steps to make the AHB environment more inclusive Partnerships: Outreach and Education Council and Legislation Support DEI in Affordable Housing Increase community’s attendance to monthly AHB meetings by 200% Establish communication strategy The community is more educated on the purpose and mission of AHB HUD 2024 Annual Homeless Assessment Report | Part 1: PIT Estimates of Homelessness in the U.S. Available online at https://www.huduser.gov/portal/datasets/ahar.html Summary prepared by Stefanie Berganini for the Affordable Housing Board, January 2025 What is this report? Every year, the US Dept. of Housing and Urban Development (HUD) sends an Annual Homelessness Assessment Report (AHAR) to Congress. It provides nationwide estimates of homelessness, including information about the demographic characteristics of homeless persons, service use patterns, and the capacity to house homeless persons. The information for this report comes from 3 sources: ● Homeless Management Information Systems (HMIS) data ● Point-in-time counts ● Data about shelter capacity and housing availability This is part one of the report, which summarizes data obtained during the point-in-time counts (PIT) and housing inventory counts (HIC) conducted in January of 2024. KEY NATIONAL FINDINGS: The 2024 data was the highest ever recorded: 771,480 people. It’s important to note that this count does NOT include people couch surfing or staying in similar arrangements, which ARE typically considered a form of homelessness. HUD cites the national affordable housing crisis, rising inflation, stagnating wages for low and middle income earners, systemic racism, and the end of support programs implemented during covid as the sources of this increase. About one-third of the individuals included in the counts have experienced chronic homelessness - this is the highest level of chronic homelessness ever recorded in the national PIT. The largest increase was families with children, and the count estimated around 150,000 children experiencing homelessness (a 33% increase from 2023). The age group with the largest increase in homelessness from 2023 to 2024 is children under the age of 18. Roughly 20% of the people experiencing homelessness in the 2024 counts were age 55 or older. Nearly half of these older adults were experiencing unsheltered homelessness. People who identify as Black, African American, or African continue to be overrepresented in the homeless population. This population makes up 12% of the US population, but 21% of the US population living in poverty, and 32% of the 2024 homeless count. Veterans are the only population with a continued decline in homelessness, as a result of funding and programs specifically targeted toward veteran homelessness. The national inventory of beds increased by 13% between 2023 and 2024. 60% of those beds are permanent supportive housing, rapid rehousing, and similar programs for people who were formerly homeless, not in overnight or emergency shelter locations for people who are currently homeless. KEY COLORADO FINDINGS The most detailed information in this report that is specific to our area is at the state level. There is information at the continuum of care (CoC) level, but that data is aggregated into four nationwide categories: major city CoCs, other largely urban CoCs, largely suburban COCs, and largely rural CoCs. There does not seem to be state level data available for bed inventory (the HIC), only for the PIT. According to the PIT, there were 18,715 people experiencing homelessness in Colorado in January of 2024. This is a 29.6% increase over the 2023 PIT, the 7th highest in the US. We are one of the states with a decrease in the number of individuals experiencing homelessness (5.6% decline from 2023-2024), but that is offset by drastic increase in homelessness among other populations. For example, we are among the highest in the nation for increases in people in families who are experiencing homelessness (a 134% increase from 2023-2024). Roughly 25% of those included in the 2024 Colorado PIT are experiencing sheltered homelessness. This is lower than the national average of 30.9%. The pie chart below breaks down the total count of people experiencing homelessness in Colorado by population group. Note that this data totals to about 24k observations, because some people may be part of more than one group. Colorado ranks in the top 5 in the nation for states with the highest proportion of people in families with children that are experiencing homelessness. Only 3% of those counted in families experiencing homelessness are experiencing unsheltered homelessness, which is in the lowest (less than 5%) tier of those values across the nation. Though Colorado is in one of the lower tiers in terms of total proportion of those experiencing homelessness who are veterans, we rank in the highest tier for veterans experiencing homelessness who are unsheltered. In Colorado, though veterans make up only 4% of the overall count of people experiencing homelessness, 45% of homeless veterans are unsheltered. AFFORDABLE HOUSING BOARD 2024 Annual Report 20 2 3 ANNUAL REPORT Page 1 The following lists the major items the Affordable Housing Board (AHB) was involved with during 2024: 1. COMPETITIVE PROCESS FOR ALLOCATING CITY FUNDS FOR AFFORDABLE HOUSING • AHB worked with the Human Services and Housing Funding Board in advising City Council on the funding for affordable housing projects in the spring cycle of the competitive process. • The Board reviewed 8 applications in the spring cycle and made recommendations to the Human Services and Housing Funding Board. 2. LAND BANK PROGRAM • The Board was kept apprised of development activity on the Kechter parcel. The development, BirdWhistle Townhomes, is fully constructed and homes currently listed for sale. • The Board supported staff efforts to manage and grow the Land Bank program. 3. HOUSING STRATEGIC PLAN IMPLEMENTATION • The Board had many updates on the implementation of the Housing Strategic Plan. • The Board helped plan and participated in the Community Housing Summit hosted by the City. • This also included updates and input opportunities for Rental Programing. 4. LAND USE CODE UPDATE • The Board received monthly briefings on the Land Use Code (LUC) update and as needed, the petition process to reverse City Council amendments to the LUC. • This included briefings and discussions on needs for housing, affordable housing incentives and benefits of form-based approaches. • The Board took a position in favor of the LUC amendments, especially extending affordability terms to 99 years, and worked to message that out externally. • The Board wrote a public letter to the editor outlining the Board’s support of theLUC amendments. 5. THE BOARD SENT MEMORANDUMS OR EMAILS OR SUPPORTING BOARD MEETING MINUTES TO CITY COUNCIL REGARDING THE FOLLOWING MATTERS FOR EXAMPLE: • Support for HB 24-1007, addressing occupancy limits in municipalities. • Support for the removal of a restrictive covenant for a Habitat for Humanity home. AFFORDABLE HOUSING BOARD 2023 Annual Report 20 2 3 ANNUAL REPORT Page 2 • Parking minimums • Camping bans 6. COUNCIL LIAISON CONTACT • Council Liaison Potyondy attended the June and September Regular Board meetings. 7. BOARD BRIEFINGS • Private Activity Bonds 1010 - Process and allocation and assignment of 2024 bond capacity • Request for the removal of a restrictive covenant for a Habitat for Humanity home • The City’s Housing Dashboard • The City’s Consolidated Plan for the US Department of Housing and Urban Development • Panel of Homelessness Solutions representing Family Housing Network, Homeward Alliance, and Fort Collins Rescue Mission • State Representative Boesenecker reported out on housing issues from the state’s perspective • Community Summit Debrief • Rental Registration • YIMBY presented on parking minimums • Zoning Atlas Project 8. COMMUNITY MEETINGS: a. Board members held a retreat in January where they discussed communications, legal guidelines and formed working committees. b. Community Housing Summit c. Joint meeting with the Human Services and Housing Funding Board as part of 202 4 Spring Competitive Grant Process 2024 Work plan: The Board sent a representative to participate in City Council meetings public comment periodically throughout the year, albeit not as often as previous years. • The Board worked to complete their work plan for the year 2024 including holding several meetings without speakers to allow for open board discussions. • The Board has embraced hybrid meetings with opportunities to attend in-person or remotely. • The Board’s committee structure has been adopted and the committees are active. • The Board welcomed new members in April and August based on the City’s changes to board members terms. Key priority: Equity & Justice in Affordable Housing Objective: Define the Affordable Housing Board perspective and goals on equity and justice in affordable housing Key Results ● Learn and grow as a board on equity and justice in affordable housing ○ Metric: In 2025, create at least 2 opportunities for the board members to learn about equity and justice in housing ● Define and include equity and justice in affordable housing activities ○ Metric: In 2025, ensure equity and justice considerations are embedded into grant review and scoring processes for the board members ○ Metric: In 2025, ensure equity and justice are shown within in the 2026 workplan by writing in 1-5 specific activities ● Create greater accessibility in affordable housing ○ Metric: In 2025, create at least 1 opportunity for board and community members to learn about equitable affordable housing design considerations (neurotypical, trauma-informed, or accessible) OR in 2025, host and promote 1 opportunity for board and community members to learn about the affordable housing process (civic engagement or financial literacy). How will this be accomplished in 2025 ● Learn and grow as a board on equity and justice in affordable housing ○ Learn about the history and systemic racism in housing ■ Workshop or panel at a meeting; alternatively, ■ Share an article or similar individual learning opportunity to discuss at a meeting ○ Explore a partnership and learning opportunity with like-minded boards, like the women & gender equity board ● Define and include equity and justice in affordable housing activities ○ Ensure activities include equity and justice in affordable housing as board continues to create partnerships, speaker opportunities within board meetings, and through the grant distribution process in 2025 ○ Create 1-5 specific bullets for 2026 workplan that intentionally includes equity and justice activities ● Create greater accessibility in affordable housing ○ Learn about and create opportunities for the board and developers to understand different types of accessible design opportunities like neurotypical, trauma- informed, and accessible housing design ■ Workshop or panel at a meeting; alternatively, ■ A speaker at a meeting ■ Watch a pre recorded webinar or similar to discuss at a meeting (Housing Colorado Summit may have something) ○ Determine opportunities to connect and partner with youth engagement groups, like ASCSU ■ Explore social media opportunities to bring more young people into the board’s meetings, educational events, and work ○ Explore opportunities to host informational sessions about financial literacy that would broaden community member’s understanding of how to buy a house, affordable housing rent/own options in Fort Collins ○ Explore opportunities to increase community member’s understanding of how to engage civically about affordable housing issues Final Draft Loveland Housing Fee Study Prepared for: Loveland Affordable Housing Task Force Prepared by: Economic & Planning Systems, Inc. July 19, 2024 EPS #233124 Table of Contents 1. Introduction ............................................................................................. 1 Overview ..................................................................................................... 1 Summary of Findings ..................................................................................... 2 2. Current Fee Environment ........................................................................... 3 Existing Fee Structure .................................................................................... 3 3. Proposed Fee Scenarios ........................................................................... 12 CEF Structure ............................................................................................. 12 Raw Water Costs......................................................................................... 13 Fee Waiver Program .................................................................................... 18 A p p e n d i x : ............................................................................................... 19 C a p i t a l E x p a n s i o n F e e s ( C E F s ) .................................................... 19 CEFs by Category ........................................................................................ 20 List of Tables Table 1. Fee Structure Housing Types .................................................................. 4 Table 2. Fee Breakdown – Estate Single Family ...................................................... 6 Table 3. Fee Breakdown – Large Single Family....................................................... 7 Table 4. Fee Breakdown – Medium Single Family ................................................... 8 Table 5. Fee Breakdown – Small Single Family ...................................................... 9 Table 6. Fee Breakdown – Townhouse ................................................................ 10 Table 7. Fee Breakdown – Condo ....................................................................... 11 Table 8. Capital Expansion Fees, 2023-2024 ....................................................... 12 Table 9. Proposed Capital Expansion Fee Structure ............................................... 13 Table 10. Annual Raw Water Usage – Residential, 2020-2022 .................................. 14 Table 11. Current Raw Water Fee Schedule ........................................................... 15 Table 12. Current Raw Water Fees ....................................................................... 16 Table 13. Proposed Raw Water Fees .................................................................... 17 Table 14. Total Proposed Fees by Product Type ..................................................... 17 Economic & Planning Systems, Inc. 233124-Final Draft Loveland Housing Fee Study_7-19-24.docx 1 1. Introduction The City of Loveland retained Economic & Planning Systems, Inc. (EPS) to conduct a housing fee study for the city, with the goal of making housing more affordable and better aligning household size with the fiscal impact on the City. This chapter introduces the scope of the study and summarizes EPS’ findings. Overview The City of Loveland is committed to aligning the cost of housing with the ability of residents to pay for housing. There are many tools the City can pursue in this effort and the current focus, and purpose of this study, is to make the City’s capital expansion fees (CEFs) and raw water fees more equitable by adopting a fee structure based on household size and on the premise that smaller homes attract smaller households, and should therefore be assessed a commensurately smaller fee. The proposed structure incentivizes developers to produce more affordable products by reducing fees on smaller homes. This effort is particularly pressing, as Loveland, like many Colorado communities, has been impacted by increased challenges to keep housing affordable due to rising construction costs and decreasing housing supply. The study builds on a recent effort by the City to differentiate the fee schedule with the delineation of a cottage home, a single-family home limited to 1,150 square feet. The City, along with the Loveland Affordable Housing Task Force (LAHTF), expressed interest in alleviating the fee burden for a modest single- family home of this size. This study builds on the momentum of this effort and provides the basis for a recalibration of the fee structure across the spectrum of home sizes. This study addresses: 1. Current Fee Environment – The current fee structure for residential development in the City of Loveland was documented in detail. The fees addressed include capital expansion fees, permit fees, water fees, electrical fees, and construction use taxes. This fee stack is analyzed by housing product type to show the burden of fee costs as a percentage of total development costs. 2. Effect of Fees on Housing Development – Costs of residential development were compiled based on sales of newly constructed homes sold 2024 (a total of 923 new homes sold in Loveland, year to date through May 2024). By definition, the sales prices include hard costs, soft costs, land costs, developer profit, and any other associated Loveland Housing Fee Study 2 costs. Within these costs, the development fees are compiled and shown as a percentage of the overall development costs. By understanding the impact that fees have on overall development costs, potential programs, such as a fee waiver program, could be introduced to alleviate some burden when constructing housing products. 3. Fee Scenarios and Policy Options – Based on the analyses completed in this report, there are specific recommendations for two sets of fees (water and CEFs) that align fee burdens proportionately to the size of housing products, with the potential to reduce barriers to generating more affordable housing products. Summary of Findings Through this housing fee study, EPS has identified three recommendations to modify the housing fee structure in the City of Loveland to link impact and cost. By delineating costs over a broader spectrum, and aligning fees to actual impact, these recommendations aim to improve the feasibility of constructing affordable housing in the city. 1. Tier Raw Water Costs – Tiering the raw water costs into f our separate categories would reflect a fee burden that is based on annual water usage. This would provide fee relief for smaller housing products and make development of such products more feasible . 2. Change the Capital Expansion Fee (CEF) Structure – Restructuring the CEFs would provide relief for smaller housing products based on the burden associated with these households on the overall City infrastructure. This would help make the development of smaller housing products, given the alignment of fiscal impact and fee structure. 3. Implement a Fee Waiver Program – A fee waiver program, like the current pilot program in the City, provides an option to waive fees on select housing units designated as affordable or attainable housing and would provide another tool in the City’s efforts to increase the affordable housing inventory. While the fee waiver program would likely need to be subsidized through the City’s budgeting process, and requires further calibration based on changing market conditions, it has proven to be an effective model and should be considered for future applications. Economic & Planning Systems, Inc. 3 2. Current Fee Environment This chapter describes the demographic background and current fee structure in the City of Loveland based on housing type. Existing Fee Structure Fee Categories When a residential building permit is issued, there are several different fees that are paid out to the City of Loveland and Larimer County. This includes permits and plan review fees calibrated by type of permit, capital expansion fees (CEFs, which are also known as impact fees), fees that fall under the Department of Water and Power (i.e., stormwater, wastewater, raw water, electricity), any fees associated with Larimer County (i.e., impact fees), and construction use taxes from both the City (3 percent of half of the building’s value) and the County (0.8 percent of half of the building’s value). Permits For comparison purposes, a limited number of prototypes have been included in the analysis, specifically building, mechanical, electrical, and plumbing permits. In Loveland, the building permit cost is dependent on the International Building Code (IBC) value of the building. Meanwhile, the mechanical, electrical, and plumbing permits are all based on flat rates adopted by the City. The overall building plan review fee is typically 65 percent of the building permit fee. Capital Expansion Fees (CEFs) Capital expansion fees, also known generally as impact fees, are collected to offset the additional level of service a proposed residential unit will require from a community as it constructs the needed infrastructure to address the demand from the additional population. CEFs may only be used for capital improvements within a jurisdiction and may not be used for maintenance, operations, or other purposes, such as subsidizing affordable housing. In Loveland, there are eight different CEF categories: law enforcement; general government; library; cultural services; parks; recreation; trails; and open lands. Currently, these CEFs are based on a per unit rate for single family and multifamily units. Water and Power Within the City of Loveland Department of Water and Power, there are several utility fees associated with the residential permitting process. This includes a flat rate utility fee and inspection fee for stormwater; a wastewater, water system, and raw water impact fee that is based on dwelling type (i.e., single-family vs. Loveland Housing Fee Study 4 multifamily); water and wastewater tap fees based on pipe size; raw water cash- in-lieu (CIL) fees based on Acre-Feet (AF) for both indoor and outdoor water usage; and a Public Investment Fee (PIF) and flat rate installation fee for electricity. Larimer County Fees The Larimer County fees included in this study are fees associated with impact fees and include Community Parks, the Thompson School District, and the Loveland Fire Rescue Authority. The Community Park impact fee is based on dwelling unit type – detached single family, attached single family, duplex, mobile home, or multifamily. The Thompson School District fee is a flat rate per residential unit. The Loveland Fire Rescue Authority fees are based on dwelling unit type – single family or multifamily. Construction Use Tax The construction use tax in both the City of Loveland and Larimer County is based on 50 percent of the total building value. From this rate, the City of Loveland collects 3 percent and Larimer County collects 0.8 percent, for a total of 3.8 percent construction use tax. Housing Types To provide a comparison of fees, the study focused on six different housing types that were then applied to the range of comparative fee structures. As shown in Table 1, these housing types include four detached single-family units ranging in size, an attached townhouse unit, and a condominium project that includes 20 units. These prototypes were selected to demonstrate the degree of change in overall permit costs based on the type and size of home. In the sections below, each housing type is analyzed based on the current fee structure in the City of Loveland and an estimated total fee cost as a percentage of construction costs are shown. Table 1. Fee Structure Housing Types Description SFD - Estate SFD - Large SFD - Medium SFD - Small Townhouse Condo Improved Floor Area per Unit 4,000 Sq. Ft. 2,500 Sq. Ft. 1,800 Sq. Ft. 1,150 Sq. Ft. 1,150 Sq. Ft. 950 Sq. Ft. Site Dimensions Width 80 60 45 40 22 -- Depth 125 110 105 80 80 -- Net Lot Size (Sq. Ft.)10,000 Sq. Ft. 6,600 Sq. Ft. 4,725 Sq. Ft. 3,200 Sq. Ft. 1,760 Sq. Ft.-- Densities Net Density 4.36 6.60 9.22 13.61 24.75 -- Gross Factor 30%30%30%30%30%-- Gross Density 3.35 5.08 7.09 10.47 19.04 30.00 Hypothetical Condominium Development Program 20 Units 0.67 Acres 29,040 Sq. Ft. Source: Economic & Planning Systems Economic & Planning Systems, Inc. 5 Housing product values are based on Zonda sales data collected from the City of Loveland from January 2024. Based on 923 new product sales, condo products have sold for an average of $304 per square foot and all other products (i.e., single family, townhome, duplex) have sold for an average of $293 per square foot. These values are used to calculate the overall building value listed in the tables below. From this value, an estimated use tax for the City of Loveland and Larimer County is calculated. Detached Single-Family Within the detached single-family housing type, four different housing units were chosen to help show a distinctive range in fee impacts on development. These include: • An estate unit that is single family detached (SFD) with 4,000 square feet in the structure located on a 10,000 square foot lot; • A large SFD unit that is 2,500 square feet on a 6,600 square foot lot: • A medium SFD unit that is 1,800 square feet on a 4,725 square foot lot; and • A small SFD unit that is 1,150 square feet on a 3,200 square foot lot. Loveland Housing Fee Study 6 Estate SFD An estate SFD unit in the City of Loveland is classified as a unit with 4,000 square feet on a 10,000 square foot lot for the purpose of this study. As shown in Table 2, an estate unit is estimated to pay $15,017 directly to the City of Loveland, $36,681 to the City of Loveland’s Department of Water and Power, and $3,159 to Larimer County. In addition, an estate unit, based on a building value of $1.17 million, would pay a construction use tax of $17,580 to the City of Loveland and $4,688 to Larimer County. In total, the estimated fees would cost $77,125, which would account for 6.58 percent of total construction costs, based on an estimated per foot cost of $293 multiplied by 4,000 square feet. Table 2. Fee Breakdown – Estate Single Family Description Description Description City of Loveland Fees City of Loveland Fees Larimer County Fees City Water and Power Community Parks $590 Thompson School District $1,382 Permits Stormwater Loveland Fire Rescue Authority $1,187 Building1 $1,336 Utility Fee $19 Subtotal $3,159 Mechanical $125 Inspection $200 Electrical $114 Subtotal $219 City Fees $15,017 Plumbing $124 W ater and Power Fees $36,681 Subtotal $1,700 Electric Larimer County Fees $3,159 PIF $1,755 Subtotal $54,857 Plan Review1 $869 Installation $410 Subtotal $2,165 Building Value $1,172,000 Capital Expansion Fees (CEF) Law Enforcement $1,104 Raw Water Loveland Construction Use Tax General Government $1,370 Impact Fee $1,736 50% of Dev. Value @ 3%$17,580 Library $913 Indoor CIL per Acre-Feet (AF)2 $9,020 Cultural Services $762 Outdoor CIL per Acre Feet (AF)2 $13,177 Larimer Co. Construction Use Tax Parks $4,529 Subtotal $23,933 50% of Dev. Value @ 0.8%$4,688 Recreation $1,987 Trails $666 Water Tap, 1.5-inch $259 Total Cost $77,125 Open Lands $1,117 Water System Impact Fee $6,660 As % of Construction Costs 6.58% Subtotal $12,448 Wastewater Impact Fee $3,060 W et Tap, 4-inch Standard $385 Subtotal $3,445 City Total $15,017 Water and Power Total $36,681 1Reflective of 2021 IBC Code IA Structure Fee. 2Not always paid at the time of Building Permit. Source: City of Loveland; Larimer County; Economic & Planning Systems Economic & Planning Systems, Inc. 7 Large SFD A large SFD unit in the City of Loveland is classified as a unit with 2,500 square feet on a 6,600 square foot lot for the purpose of this study. As shown in Table 3, a large SFD unit is estimated to pay $15,017 directly to the City of Loveland, $32,201 to the City of Loveland’s Department of Water and Power, and $3,159 to Larimer County. In addition, a large SFD unit, based on a building value of $732,500, would pay a construction use tax of $10,988 to the City of Loveland and $2,930 to Larimer County. In total, the estimated fees would cost $64,294, which would account for 8.78 percent of total construction costs, based on an estimated per foot cost of $293 multiplied by 2,500 square feet. Table 3. Fee Breakdown – Large Single Family Description Description Description City of Loveland Fees City of Loveland Fees Larimer County Fees City Water and Power Community Parks $590 Thompson School District $1,382 Permits Stormwater Loveland Fire Rescue Authority $1,187 Building1 $1,336 Utility Fee $19 Subtotal $3,159 Mechanical $125 Inspection $200 Electrical $114 Subtotal $219 City Fees $15,017 Plumbing $124 Water and Power Fees $32,201 Subtotal $1,700 Electric Larimer County Fees $3,159 PIF $1,755 Subtotal $50,377 Plan Review1 $869 Installation $410 Subtotal $2,165 Building Value $732,500 Capital Expansion Fees (CEF) Law Enforcement $1,104 Raw Water Loveland Construction Use Tax General Government $1,370 Impact Fee $1,736 50% of Dev. Value @ 3%$10,988 Library $913 Indoor CIL per Acre-Feet (AF)2 $9,020 Cultural Services $762 Outdoor CIL per Acre Feet (AF)2 $8,697 Larimer Co. Construction Use Tax Parks $4,529 Subtotal $19,453 50% of Dev. Value @ 0.8%$2,930 Recreation $1,987 Trails $666 W ater Tap, 1.5-inch $259 Total Cost $64,294 Open Lands $1,117 Water System Impact Fee $6,660 As % of Construction Costs 8.78% Subtotal $12,448 Wastewater Impact Fee $3,060 Wet Tap, 4-inch Standard $385 Subtotal $3,445 City Total $15,017 Water and Power Total $32,201 1Reflective of 2021 IBC Code IA Structure Fee. 2Not always paid at the time of Building Permit. Source: City of Loveland; Larimer County; Economic & Planning Systems Loveland Housing Fee Study 8 Medium SFD A medium SFD unit in the City of Loveland is classified as a unit with 1,800 square feet on a 4,725 square foot lot for the purpose of this study. As shown in Table 4, a medium SFD unit is estimated to pay $15,017 directly to the City of Loveland, $29,724 to the City of Loveland’s Department of Water and Power, and $3,159 to Larimer County. In addition, a medium SFD unit, based on a building value of $527,400, would pay a construction use tax of $7,911 to the City of Loveland and $2,110 to Larimer County. In total, the estimated fees would cost $57,920, which would account for 10.98 percent of total construction costs, based on an estimated per foot cost of $293 multiplied by 1,800 square feet. Table 4. Fee Breakdown – Medium Single Family Description Description Description City of Loveland Fees City of Loveland Fees Larimer County Fees City Water and Power Community Parks $590 Thompson School District $1,382 Permits Stormwater Loveland Fire Rescue Authority $1,187 Building1 $1,336 Utility Fee $14 Subtotal $3,159 Mechanical $125 Inspection $200 Electrical $114 Subtotal $214 City Fees $15,017 Plumbing $124 Water and Power Fees $29,724 Subtotal $1,700 Electric Larimer County Fees $3,159 PIF $1,755 Subtotal $47,900 Plan Review1 $869 Installation $410 Subtotal $2,165 Building Value $527,400 Capital Expansion Fees (CEF) Law Enforcement $1,104 Raw Water Loveland Construction Use Tax General Government $1,370 Impact Fee $1,736 50% of Dev. Value @ 3%$7,911 Library $913 Indoor CIL per Acre-Feet (AF)2 $9,020 Cultural Services $762 Outdoor CIL per Acre Feet (AF)2 $6,226 Larimer Co. Construction Use Tax Parks $4,529 Subtotal $16,982 50% of Dev. Value @ 0.8%$2,110 Recreation $1,987 Trails $666 Water Tap, 1.5-inch $259 Total Cost $57,920 Open Lands $1,117 Water System Impact Fee $6,660 As % of Construction Costs 10.98% Subtotal $12,448 Wastewater Impact Fee $3,060 Wet Tap, 4-inch Standard $385 Subtotal $3,445 City Total $15,017 Water and Power Total $29,724 1Reflective of 2021 IBC Code IA Structure Fee. 2Not always paid at the time of Building Permit. Source: City of Loveland; Larimer County; Economic & Planning Systems Economic & Planning Systems, Inc. 9 Small SFD A small SFD unit in the City of Loveland is classified as a unit with 1,150 square feet on a 3,200 square foot lot for the purpose of this study. As shown in Table 5, a small SFD unit is estimated to pay $15,017 directly to the City of Loveland, $21,151 to the City of Loveland’s Department of Water and Power, and $3,159 to Larimer County. In addition, a small SFD unit, based on a building value of $336,950, would pay a construction use tax of $5,504 to the City of Loveland and $1,348 to Larimer County. In total, the estimated fees would cost $45,728, which would account for 13.57 percent of total construction costs, based on an estimated per foot cost of $293 multiplied by 1,150 square feet. Table 5. Fee Breakdown – Small Single Family Description Description Description City of Loveland Fees City of Loveland Fees Larimer County Fees City Water and Power Community Parks $590 Thompson School District $1,382 Permits Stormwater Loveland Fire Rescue Authority $1,187 Building1 $1,336 Utility Fee $11 Subtotal $3,159 Mechanical $125 Inspection $200 Electrical $114 Subtotal $211 City Fees $15,017 Plumbing $124 Water and Power Fees $21,151 Subtotal $1,700 Electric Larimer County Fees $3,159 PIF $1,755 Subtotal $39,326 Plan Review1 $869 Installation $410 Subtotal $2,165 Building Value $336,950 Capital Expansion Fees (CEF) Law Enforcement $1,104 Raw Water Loveland Construction Use Tax General Government $1,370 Impact Fee $1,736 50% of Dev. Value @ 3%$5,054 Library $913 Indoor CIL per Acre-Feet (AF)2 $6,560 Cultural Services $762 Outdoor CIL per Acre Feet (AF)2 $3,916 Larimer Co. Construction Use Tax Parks $4,529 Subtotal $12,212 50% of Dev. Value @ 0.8%$1,348 Recreation $1,987 Trails $666 Water Tap, 1.5-inch $259 Total Cost $45,728 Open Lands $1,117 Water System Impact Fee $3,220 As % of Construction Costs 13.57% Subtotal $12,448 Wastewater Impact Fee $2,700 Wet Tap, 4-inch Standard $385 Subtotal $3,085 City Total $15,017 Water and Power Total $21,151 1Reflective of 2021 IBC Code IA Structure Fee. 2Not always paid at the time of Building Permit. Source: City of Loveland; Larimer County; Economic & Planning Systems Loveland Housing Fee Study 10 Townhouse Single-Family Attached A townhouse single-family attached (SFA) unit in the City of Loveland is classified as a unit with 1,150 square feet on a 1,760 square foot lot for the purpose of this study. As shown in Table 6, a townhouse SFA unit is estimated to pay $15,017 directly to the City of Loveland, $21,035 to the City of Loveland’s Department of Water and Power, and $3,029 to Larimer County. In addition, a townhouse SFA unit, based on a building value of $336,950, would pay a construction use tax of $5,054 to the City of Loveland and $1,348 to Larimer County. In total, the estimated fees would cost $45,482, which would account for 13.5 percent of total construction costs, based on an estimated per foot cost of $293 multiplied by 1,150 square feet. Table 6. Fee Breakdown – Townhouse Description Description Description City of Loveland Fees City of Loveland Fees Larimer County Fees City Water and Power Community Parks $460 Thompson School District $1,382 Permits Stormwater Loveland Fire Rescue Authority $1,187 Building1 $1,336 Utility Fee $11 Subtotal $3,029 Mechanical $125 Inspection $200 Electrical $114 Subtotal $211 City Fees $15,017 Plumbing $124 Water and Power Fees $21,035 Subtotal $1,700 Electric Larimer County Fees $3,029 PIF $1,755 Subtotal $39,080 Plan Review1 $869 Installation $410 Subtotal $2,165 Building Value $336,950 Capital Expansion Fees (CEF) Law Enforcement $1,104 Raw Water Loveland Construction Use Tax General Government $1,370 Impact Fee $756 50% of Dev. Value @ 3%$5,054 Library $913 Indoor CIL per Acre-Feet (AF)2 $9,020 Cultural Services $762 Outdoor CIL per Acre Feet (AF)2 $2,319 Larimer Co. Construction Use Tax Parks $4,529 Subtotal $12,095 50% of Dev. Value @ 0.8%$1,348 Recreation $1,987 Trails $666 Water Tap, 1.5-inch $259 Total Cost $45,482 Open Lands $1,117 Water System Impact Fee $3,220 As % of Construction Costs 13.50% Subtotal $12,448 Wastewater Impact Fee $2,700 Wet Tap, 4-inch Standard $385 Subtotal $3,085 City Total $15,017 Water and Power Total $21,035 1Reflective of 2021 IBC Code IA Structure Fee. 2Not always paid at the time of Building Permit. Source: City of Loveland; Larimer County; Economic & Planning Systems Economic & Planning Systems, Inc. 11 Condo Multifamily Detached For this study, a condo multifamily detached (MFD) unit in the City of Loveland is classified as a unit with 950 square feet on a lot with 20 units for a total improved size of 19,000 square feet. The overall lot totals 29,040 square feet. As shown in Table 7, a condo project with 20 units is estimated to pay $189,151 directly to the City of Loveland, $328,905 to the City of Loveland’s Department of Water and Power, and $53,300 to Larimer County. In addition, a condo project with 20 units, based on a building value of $5.78 million, would pay a construction use tax of $86,640 to the City of Loveland and $23,104 to Larimer County. In total, the estimated fees would cost $681,100, which would account for 11.79 percent of total construction costs, based on an estimated per foot cost of $304 multiplied by 950 square feet per unit. Table 7. Fee Breakdown – Condo Description Description Description City of Loveland Fees City of Loveland Fees Larimer County Fees City Water and Power Community Parks $6,660 Thompson School District $27,640 Permits Stormwater Loveland Fire Rescue Authority $19,000 Building1 $4,235 Utility Fee $541 Subtotal $53,300 Mechanical $2,500 Inspection $700 Electrical $2,290 Subtotal $1,241 City Fees $189,151 Plumbing $2,480 Water and Power Fees $328,905 Subtotal $11,505 Electric Larimer County Fees $53,300 PIF $35,100 Subtotal $571,356 Plan Review1 $2,753 Installation $8,200 Subtotal $43,300 Building Value $5,776,000 Capital Expansion Fees (CEF) Law Enforcement $15,380 Raw Water Loveland Construction Use Tax General Government $19,060 Impact Fee $10,760 50% of Dev. Value @ 3%$86,640 Library $12,680 Indoor CIL per Acre-Feet (AF)2 $131,200 Cultural Services $10,600 Outdoor CIL per Acre Feet (AF)2 $35,533 Larimer Co. Construction Use Tax Parks $62,000 Subtotal $177,493 50% of Dev. Value @ 0.8%$23,104 Recreation $27,600 Trails $9,280 Water Tap, 1.5-inch $5,170 Total Cost $681,100 Open Lands $15,540 Water System Impact Fee $49,800 As % of Construction Costs 11.79% Subtotal $174,893 Wastewater Impact Fee $44,200 Wet Tap, 4-inch Standard $7,700 Subtotal $51,900 City Total $189,151 Water and Power Total $328,905 1Reflective of 2021 IBC Code IA Structure Fee. 2Not always paid at the time of Building Permit. Source: City of Loveland; Larimer County; Economic & Planning Systems Loveland Housing Fee Study 12 3. Proposed Fee Scenarios The purpose of this chapter is to generate prototypical fee structures that could be adopted that account for home size and the corresponding household size. The rationale is that smaller houses attract smaller households, which generate lower fiscal burdens on the City. This chapter provides a fee scenario for CEFs and those related to water, each of which have the potential to reduce the burden of housing fee costs on small units developed in the City of Loveland. CEF Structure Current Impact The current residential capital expansion fee (CEF) structure is based on dwelling unit types, single family or multifamily. The City recently completed a Capital Expansion Fee Study in 2023 by consultant TischlerBise. Implementation is anticipated in 2024. As shown in Table 8, the total CEFs in 2023 were $12,448 for single family and $8,607 for multifamily. After the update, fees for 2024 were reduced to a total of $11,570 for single family and $7,907 for multifamily. It is important to note that the industry standard across the nation for many years has been to create impact fee structures based on type (SF or MF). A more innovative approach is to move to a structure based on size, which this analysis provides the basis for. Table 8. Capital Expansion Fees, 2023-2024 Description 2023 Cost per Unit 2024 Cost per Unit Residential Single Family Law Enforcement $1,104 $487 General Government $1,370 $943 Library $913 $440 Cultural Services $762 $158 Parks $4,529 $6,251 Recreation $1,987 $1,253 Trails $666 $967 Open Lands $1,117 $1,071 Total $12,448 $11,570 Residential Multifamily Law Enforcement $769 $333 General Government $953 $644 Library $634 $301 Cultural Services $530 $108 Parks $3,100 $4,272 Recreation $1,380 $856 Trails $464 $661 Open Lands $777 $732 Total $8,607 $7,907 Source: TischlerBise; City of Loveland; Economic & Planning Systems Economic & Planning Systems, Inc. 13 Fee Structure Recommendation The proposed fee structure, provided in Table 9, has been structured to reflect household size, in proportion to home size, with a calibration as to impact and total fee burden. This square footage approach provides relief for smaller products, regardless of type, and shifts some cost burden toward larger units. The proposed total fees would range from $8,272 for units up to 1,150 square feet to $13,470 for units greater than 2,500 square feet. Details by fee category, and the calculations made to derive the new graduated schedule, can be found in the Appendix. Table 9. Proposed Capital Expansion Fee Structure Raw Water Costs Current Impact Raw water fees in the City of Loveland currently fall into two categories: a housing unit below 1,150 square feet and above 1,150 square feet. The required cash-in-lieu (CIL) for a unit above 1,150 square feet is 0.22 acre-feet (AF) per dwelling unit for indoor water rights, and 1.4 AF per acre required multiplied by the net lot acreage for outdoor water rights. For a unit below 1,150 square feet, it is 0.16 AF per dwelling unit for indoor water rights, and 1.3 AF per acre required multiplied by the net lot acreage for outdoor water rights. Any lot that exceeds 15,000 square feet is subject to additional requirements (i.e., 1.6 to 1.7 AF for outdoor water rights). Methodology Raw water usage data from 2020 to 2022 was collected from the City of Loveland and divided into usage by similar product types described in this report. The data collected was filtered using three steps, as described below. 1. Usage was filtered using City of Loveland Assessor occupancy codes. Single-Family Residential, Duplexes, Townhouses, and Condo units were included. All other uses, such as commercial uses, were not included. This reduced the total number of records from 24,006 to 23,618, which is a reduction of 388 records. Land Use Type Parks Recreation Trails Open Space Cultural Services Library Law Enforcement General Government Proposed Total Current Total: SF Current Total: MF Residential (per dwelling) Up to 1,150 sq. ft.$4,418 $886 $683 $758 $112 $311 $439 $666 $8,272 $11,570 $7,907 1,151 to 1,800 sq. ft.$5,697 $1,142 $880 $977 $144 $401 $566 $859 $10,667 $11,570 $7,907 1,801 to 2,500 sq. ft.$6,228 $1,249 $962 $1,068 $157 $439 $619 $939 $11,662 $11,570 $7,907 2,501 sq. ft. or more $7,194 $1,442 $1,112 $1,234 $182 $507 $715 $1,085 $13,470 $11,570 $7,907 Source: TischlerBise; City of Loveland; Economic & Planning Systems Loveland Housing Fee Study 14 2. Any record from 2020 to 2022 with 0 gallons or a negative amount of annual water usage was removed. This reduced the total number of records from 23,618 records to 22,544 records, which is a reduction of 1,074 records. 3. Any record from 2020 to 2022 with over 1 million gallons of annual water usage was removed. This reduced the total number of records from 22,544 records to 22,503 records, which is a reduction of 31 records. By way of explanation, the average consumption of a home in Loveland is 94,271 gallons of water annually, and 50 percent of homes use between 48,000 and 109,000 gallons of water annually. Through this filtering process, EPS was able to isolate the most accurate and relevant annual water data for this study. Raw Water Usage For residential products, average annual water usage by gallon decreased from 2020 to 2022, from 100,851 gallons to 94,271 gallons (Table 10). Water usage in smaller units decreased more compared to larger units. For example, units below 1,150 square feet decreased their water usage by 4.9 percent annually, whereas units above 2,500 square feet only decreased their water usage by 2.2 percent annually. The reduction in consumption was found in each category, reflecting trends in more efficient kitchen appliances, bathroom fixtures, and landscape irrigation methods. Table 10. Annual Raw Water Usage – Residential, 2020-2022 Description 2020 2021 2022 Total Ann. # Ann. % Residential (per dwelling) Up to 1,150 sq. ft.70,407 66,106 63,626 -6,781 -3,391 -4.9% 1,151 to 1,800 sq. ft.85,390 80,264 78,828 -6,562 -3,281 -3.9% 1,801 to 2,500 sq. ft.109,091 102,114 102,103 -6,988 -3,494 -3.3% 2,501 sq. ft. or more 138,514 131,778 132,528 -5,986 -2,993 -2.2% Average 100,851 95,066 94,271 -6,579 -3,290 -3.3% Water Consumption compared to Average Up to 1,150 sq. ft.69.8% 69.5% 67.5%------ 1,151 to 1,800 sq. ft.84.7% 84.4% 83.6%------ 1,801 to 2,500 sq. ft.108.2% 107.4% 108.3%------ 2,501 sq. ft. or more 137.3% 138.6% 140.6%------ Source: City of Loveland; Economic & Planning Systems 2020-2022 Economic & Planning Systems, Inc. 15 In 2022, residential units up to 1,150 square feet only used 67.5 percent of water usage compared to average, whereas units above 2,500 square feet used 140.6 percent of water usage compared to average, as shown in Table 10. Notwithstanding a gradual reduction of water usage across the City, larger residential units consistently require more water than smaller units. The current raw water fee structure accounts for differing water usage patterns between a unit below 1,150 square feet and any unit above 1,150 square feet, which does alleviate some fee burden on smaller units. Other related water fees, including the water system impact fee and raw water impact fee, are differentiated by dwelling unit type; thus, there is currently no accounting for unit size and a reduced consumption in two of the three subtypes of water fees. The current fee breakdown is shown in Table 11. Table 11. Current Raw Water Fee Schedule Description Cost per Unit Notes 1. Water System Impact Fee Detached Single Family $6,660 Attached Single Family $3,220 No Irrigation Tap Attached Single Family $3,220 Cottage $3,220 Micro $3,220 Multifamily $3,220 2-8 DU/Meter Multifamily $2,490 9-24 DU/Meter Multifamily $2,490 25 or more DU/Meter 2. Raw Water Impact Fee Detached Single Family $1,736 Attached Single Family $1,248 No Irrigation Tap Attached Single Family $756 Cottage $756 Micro $756 Multifamily $756 2-8 DU/Meter Multifamily $756 9-24 DU/Meter Multifamily $538 25 or more DU/Meter Indoor 3. Raw Water Cash-in-Lieu (CIL) Acre-Feet per Dwelling Unit Required Acre-Feet per Acre Required X Net Lot Acreage Net Lot Acreage over 15,000 sq. ft. Cost Detached Single Family Unit greater than 1,150 sq. ft.0.22 1.4 1.6 Cottage Unit less than 1,150 sq. ft.0.16 1.3 1.7 Source: City of Loveland; Economic & Planning Systems Outdoor $41,000 per Acre-Foot Loveland Housing Fee Study 16 To clarify how the proposed changes will affect the community, a summary of current costs applied to the prototypes used in this study are provided below in Table 12. Table 12. Current Raw Water Fees One of the key changes sought from this analysis is to migrate to a system that charges fees based on consumption (i.e., structure size) rather than structure type, given the significant difference in annual water usage between these housing products. For example, units ranging from 1,151 to 1,800 square feet averaged 78,828 gallons of water used in 2022 and units above 2,500 square feet averaged 132,528 gallons of water used in 2022 (Table 10), yet are charged the same raw water CIL given the same acre-feet metrics. Fee Structure Recommendation Consistent with the direction of the committee to create graduated fee structures that align consumption with payments, the raw water fee can be restructured to be tiered into four categories based on square footage. This would be consistent with a potential restructuring of the capital expansion fees, which is discussed in the next section. Based on the current average raw water fees, an example of a tiered approach to raw water is provided in Table 13. The proposed estimated fees are calculated based on annual water usage in 2022, as previously shown in Table 10. Using the same product types described in this study, a 950 square foot condo would see an estimated fee reduction of $2,482, or 21.6 percent, as shown in Table 13. A 1,150 square foot attached townhouse would see an estimated fee reduction of $3,831, or 29.9 percent. A 1,150 square foot detached single-family home would see an estimated fee reduction of $6,683, or 42.6 percent. An 1,800 square foot single-family home would see an estimated fee reduction of $3,937, or 16.4 percent. A 2,500 square foot single-family home would see an estimated fee increase of $2,215, or 8.3 percent. A 4,000 square foot single-family home (estate) would see an estimated fee increase of $9,403, or 29.9 percent. Description Imp. Sq. Ft. Net Lot Size Water System Impact Fee Raw Water Impact Fee Raw Water CIL Total Fee Product Condo 950 1,452 $2,490 $538 $8,448 $11,476 Townhouse 1,150 1,760 $3,220 $756 $8,848 $12,824 SFD-Small 1,150 3,200 $3,220 $1,736 $10,720 $15,676 SFD-Medium 1,800 4,725 $6,660 $1,736 $15,635 $24,031 SFD-Large 2,500 6,600 $6,660 $1,736 $18,260 $26,656 SFD-Estate 4,000 10,000 $6,660 $1,736 $23,020 $31,416 Source: City of Loveland; Economic & Planning Systems Economic & Planning Systems, Inc. 17 Table 13. Proposed Raw Water Fees As shown in Table 14, when the proposed CEFs and water fees are combined, a condo product would pay $2,118 less, a townhouse would pay $3,466 less, a small SFD would pay $9,981 less, a medium SFD would pay $4,839 less, a large SFD would pay $2,306 more, and an estate SFD would pay $11,303 more. Table 14. Total Proposed Fees by Product Type Description Water System Impact Fee Raw Water Impact Fee Raw Water CIL Proposed Estimated Fee Current Estimated Fee $ Diff. % Diff. Factor A B C A + B + C = D Residential (per dwelling) Up to 1,150 sq. ft.$2,009 $682 $6,303 $8,993 -- -- -- 1,151 to 1,800 sq. ft.$5,569 $1,452 $13,074 $20,094 -- -- -- 1,801 to 2,500 sq. ft.$7,213 $1,880 $19,777 $28,871 -- -- -- 2,501 sq. ft. or more $9,363 $2,440 $29,016 $40,819 -- -- -- Housing Product Condo $2,009 $682 $6,303 $8,993 $11,476 -$2,482 -21.6% Townhouse $2,009 $682 $6,303 $8,993 $12,824 -$3,831 -29.9% SFD-Small $2,009 $682 $6,303 $8,993 $15,676 -$6,683 -42.6% SFD-Medium $5,569 $1,452 $13,074 $20,094 $24,031 -$3,937 -16.4% SFD-Large $7,213 $1,880 $19,777 $28,871 $26,656 $2,215 8.3% SFD-Estate $9,363 $2,440 $29,016 $40,819 $31,416 $9,403 29.9% Source: City of Loveland; Economic & Planning Systems Description Proposed Water Fees Proposed CEFs Total Proposed Fee Current Estimated Fee $ Diff. % Diff. Housing Product Condo $8,993 $8,272 $17,265 $19,383 -$2,118 -10.9% Townhouse $8,993 $8,272 $17,265 $20,731 -$3,466 -16.7% SFD-Small $8,993 $8,272 $17,265 $27,246 -$9,981 -36.6% SFD-Medium $20,094 $10,667 $30,762 $35,601 -$4,839 -13.6% SFD-Large $28,871 $11,662 $40,532 $38,226 $2,306 6.0% SFD-Estate $40,819 $13,470 $54,289 $42,986 $11,303 26.3% Source: City of Loveland; Economic & Planning Systems Loveland Housing Fee Study 18 Fee Waiver Program Current Impact The current City of Loveland fee structure puts a disproportionally higher cost burden on smaller units. Given land constraints and the rising costs to construct housing, this has challenged the City’s ability to increase its attainable housing supply. To assess a reduced fee program, the City has recently taken on a pilot project in conjunction with Aspen Homes home builder. The program reduces the fees on every four units so that the fifth unit constructed can be sold at 70% AMI. The program has been beneficial for both the City, the developer, and residents of the newly created affordable housing. Recommendation It is recommended that the City adopt a fee waiver program that incentivizes the development of smaller product types that are affordable at 70% AMI. The structure of the program would need to be determined by the City and can be based on findings from the Calculator model included under a separate deliverable. The current pilot program and its successes and challenges would serve as a strong baseline to establishing such a program. Appendi x : Capital Expansion Fees (CEFs) APPENDIX - Loveland Housing Fee Study 20 Capital Expansion Fees by Category Table A-1. City of Loveland, Proposed Parks CEF Table A-2. City of Loveland, Proposed Recreation CEF Table A-3. City of Loveland, Proposed Trails CEF Updated Fee Current Fee Description per unit per unit Cost per Residential Population $2,414 Residential Single-Family Up to 1,150 sq. ft.1.83 $4,418 $6,251 1,151 to 1,800 sq. ft.2.36 $5,697 1,801 to 2,500 sq. ft.2.58 $6,228 Multifamily 2,501 sq. ft. or more 2.98 $7,194 $4,272 Source: TischlerBise; Economic & Planning Systems Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Residential Population $484 Residential Single-Family Up to 1,150 sq. ft.1.83 $886 $1,253 1,151 to 1,800 sq. ft.2.36 $1,142 1,801 to 2,500 sq. ft.2.58 $1,249 Multifamily 2,501 sq. ft. or more 2.98 $1,442 $856 Source: TischlerBise; Economic & Planning Systems Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Residential Population $373 Residential Single-Family Up to 1,150 sq. ft.1.83 $683 $967 1,151 to 1,800 sq. ft.2.36 $880 1,801 to 2,500 sq. ft.2.58 $962 Multifamily 2,501 sq. ft. or more 2.98 $1,112 $661 Source: TischlerBise; Economic & Planning Systems Avg. HH Size Economic & Planning Systems, Inc. 21 Table A-4. City of Loveland, Proposed Open Space CEF Table A-5. City of Loveland, Proposed Cultural Services CEF Table A-6. City of Loveland, Proposed Library CEF Updated Fee Current Fee Description per unit per unit Cost per Residential Population $414 Residential Single-Family Up to 1,150 sq. ft.1.83 $758 $1,071 1,151 to 1,800 sq. ft.2.36 $977 1,801 to 2,500 sq. ft.2.58 $1,068 Multifamily 2,501 sq. ft. or more 2.98 $1,234 $732 Source: TischlerBise; Economic & Planning Systems Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Residential Population $61 Residential Single-Family Up to 1,150 sq. ft.1.83 $112 $158 1,151 to 1,800 sq. ft.2.36 $144 1,801 to 2,500 sq. ft.2.58 $157 Multifamily 2,501 sq. ft. or more 2.98 $182 $108 Source: TischlerBise; Economic & Planning Systems Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Residential Population $170 Residential Single-Family Up to 1,150 sq. ft.1.83 $311 $440 1,151 to 1,800 sq. ft.2.36 $401 1,801 to 2,500 sq. ft.2.58 $439 Multifamily 2,501 sq. ft. or more 2.98 $507 $301 Source: TischlerBise; Economic & Planning Systems Avg. HH Size APPENDIX - Loveland Housing Fee Study 22 Table A-7. City of Loveland, Proposed Law Enforcement CEF Table A-8. City of Loveland, Proposed General Government CEF Updated Fee Current Fee Description per unit per unit Cost per Residential Population $240 Residential Single-Family Up to 1,150 sq. ft.1.83 $439 $487 1,151 to 1,800 sq. ft.2.36 $566 1,801 to 2,500 sq. ft.2.58 $619 Multifamily 2,501 sq. ft. or more 2.98 $715 $333 Source: TischlerBise; Economic & Planning Systems Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Residential Population $364 Residential Single-Family Up to 1,150 sq. ft.1.83 $666 $943 1,151 to 1,800 sq. ft.2.36 $859 1,801 to 2,500 sq. ft.2.58 $939 Multifamily 2,501 sq. ft. or more 2.98 $1,085 $644 Source: TischlerBise; Economic & Planning Systems Avg. HH Size