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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/26/2021 - HOUSING STRATEGIC PLAN UPDATE - STRATEGY PRIORITIZDATE: STAFF: January 26, 2021 Lindsay Ex, Interim Housing Manager Meaghan Overton, City Planner Jackie Kozak-Thiel, Chief Sustainability Officer Caryn Champine, Director of PDT WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Housing Strategic Plan Update - Strategy Prioritization. EXECUTIVE SUMMARY The purpose of this item is to: 1. Briefly summarize progress the Housing Strategic Plan since the December 2020 Work Session. 2. Receive feedback on the initial set of prioritized strategies and the draft Housing Strategic Plan. 3. Begin a discussion on implementation with a focus on guiding principles that will support ongoing prioritization and decision making. 4. Provide an update on the Ad Hoc Housing Committee’s work, including additional quicker wins. 5. Share next steps. A read-before memo will be provided on January 26, 2021 that includes a draft summary of community feedback on the initial set of priorities. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback do Councilmembers have on the following: • Initial set of prioritized strategies? • Draft of guiding principles and overall approach to implementation? 2. Do Councilmembers have any feedback on the quick(er) wins identified to date? BACKGROUND / DISCUSSION The current update to the Housing Strategic Plan has an expanded scope to include the entire housing spectrum. This plan recognizes that the gap between peoples’ incomes and the cost of housing continues to widen, and that current resources are insufficient to meet our adopted goals for affordable housing production. The draft Housing Strategic Plan (Attachment 1) was released to the community for their feedback on January 14. Housing Strategic Plan - Progress to Date The graphic below outlines the progression of the Housing Strategic Plan process: Note: In the timeline graphic, the * symbol in each of the steps indicates community engagement opp ortunities. January 26, 2021 Page 2 At the December 8, 2020 work session (Attachment 2), staff reviewed the progress associated with Steps 1-5. Councilmembers provided feedback on engagement feedback to date (Step 3), the initial set of strategies identified by the community, staff and the project’s consultant (Step 4), and the evaluation criteria (Step 5). At the January 26, 2021 work session, staff will share the outcome of the Strategy Evaluation (Step 5), discuss strategy prioritization (Step 6), and share the draft Plan, including indicators and metrics to evaluate plan success as well as guiding principles for adaptive implementation (which will guide Step 8: Implementation). Below, these elements are further described. Step 5: Evaluate Strategies An early theme from community engagement before the planning process officially kicked off was that priorities should be established to guide this work, especially since there are so many areas where the housing system can be influenced. At the December work session, Councilmembers reviewed the evaluation criteria and initial list of 56 strategies that were developed through community input (Attachment 3), the Ad Hoc Committee, the project’s consultant (Root Policy Research), and staff input. After the work session, Root facilitated two staff workshops using the evaluation criteria to develop a refined set of strategies for further prioritization in January. Step 6: Prioritize Strategies As a result of Step 5, 26 strategies are serving as the basis for a final prioritization for what strategies should be included in the final plan. This set of 26 prioritized strategies all meet baseline vision, feasibility, and effectiveness criteria and reflect on staff and community input on key objectives for the Plan. They are designed to address the Greatest Challenges outlined in the Existing Conditions Assessment, produce meaningful outcomes, and expand housing choice in Fort Collins across the entire spectrum of housing preference and need. With this refined set of strategies, staff and Root are running a series of workshops and conversations in January to confirm priorities and arrive at a final set of strategies to be incl uded in the Plan at the February 16 Adoption hearing. Workshops and/or conversations will be held with the Ad Hoc Committee, Home2Health partners, staff, boards and commissions, and stakeholder groups. A read-before memo will be provided to Council in the January 26 packet that summarizes this feedback. Each of these strategies are described in more detail in the Strategies and Priorities chapter in the draft plan. Step 7: Consider Plan Adoption (February/March 2021) Sections of the draft plan were published for public comment as they were completed in early January, and the full draft plan was released on January 14 to facilitate community feedback and strategy prioritization. Staff will make revisions based on Council and community feedback and will br ing forward the final plan for adoption consideration by Council at the February 16, 2021 meeting. Step 8: Implementation In many ways, the final step in the planning process is just the beginning of the work to ensure that everyone has stable, healthy housing they can afford. Implementation is when community, Council and staff will transition from “what” to “how” we achieve this vision. This work acknowledges no community in the United States has solved this issue, and therefore, we will continually nee d to be in learning and testing mode to assess which strategies can work, pilot them where appropriate, and then bring the solutions to scale. In other words, adapting to changing conditions - both within the broader market and the community - will be critical as we proceed in the years and decades it will take to reach the vision. Thus, moving toward implementation involves three elements, which are described in more detail in the Implementation section of the draft plan (Attachment 1): • Specific implementation actions in 2021; • Ongoing planning lifecycle for this work past 2021; and • Guiding principles for future prioritization and decision making. January 26, 2021 Page 3 Additional Information on Guiding Principles: For the purposes of this work session, staff is seeking Council’s feedback on the guiding principles for future prioritization and decision making. They will support future strategy selection and overall prioritization to determine annual work planning. While the strategies may be updated or changed on an annual basis, the guiding principles will continue throughout the lifecycle of this plan (approximately five years). The Draft Guiding Principles are described in more detail in the Implementation Section of the Draft Plan and are summarized below: • Center the work in people • Be agile and adaptive • Balance rapid decision making with inclusive communication and engagement • Build on existing plans and policies – and their engagement • Expect and label tensions, opportunities, and tradeoffs • Focus direct investment on the lowest income levels • Commit to transparency in decision making • Make decisions for impact, empowerment, and systems change (not only ease of implementation) Ad Hoc Housing Council Committee In parallel with the Housing Strategic Plan update, the Ad Hoc Housing Council Committee continues to meet monthly to explore housing-specific topics and provide recommendations to City staff and to Council. Members of the Ad-Hoc Committee have requested pre-work before each meeting to allow time for in-depth discussion and exploration. Meeting materials including pre-work, minutes, and recordings are available at <https://www.fcgov.com/council/ad-hoc-housing-committee>. Ad Hoc Committee Meetings and Areas of Focus to Date: Committee discussions have included nearly all the initially prioritized 14 topics the Committee identified at the August meeting. The Committee has continued to leverage a framework around quicker wins (Council term), transitional strategies (1 -2 years), and transformational strategies (2+ years) to discuss implementation while considering each topic. Month Focus Outcomes August Overall Focus and Prioritization Clarified focus of the Committee on the plan’s development and diving deeply on 14 topics, as time allows. September Existing Conditions and Greatest Challenges Clarity around the “problem we’re trying to solve.” Encouragement to test the greatest challenges with the community. October Explore Housing Types and Zoning Initial list of strategies to support greater diversity of housing types and LUC changes. November Review Housing Types and Zoning Strategies Explore Anti-displacement and Housing Stability Housing Types & Zoning: Refined list of strategies to pursue as quick(er) wins, led to off-cycle appropriation for advancing the LUC audit be brought to the full Council on February 16. Anti- displacement: Identification of three potential quick(er) wins to discuss further at the December meeting. January 26, 2021 Page 4 December Review Anti-displacement; Explore Funding & Financing; Explore Rental regulations and occupancy Anti-displacement: Two quick(er) wins identified – continuing the Legal Defense Fund and mapping assessment and gentrification. Financing: Identified the Metro DPA (down payment assistance) item as a quick(er) win, and additional strategies to be included in the plan. Rental regulations and occupancy: Formation of an internal task force to address a suite of opportunities that arose in the conversation which are further described in the December memo. January Explore Innovative Partnerships; Strategy Prioritization and Guiding Principles Can be shared verbally at the January 26 work session, as the meeting occurred after the packet deadline. Quick(er) Wins Identified Thus Far: Five quick(er) wins have been identified by the Committee thus far, two of which require Council action to move forward. Each of these are described below. Quick(er) wins moving forward (no Council action required): • Assess displacement risk (Strategy 1 in the Plan) - This is a mapping exercise that will illustrate displacement and gentrification threats at the neighborhood level. Input from Home2Health partners has identified an opportunity to partner with the County Built Environment Team to explore this mapping in conjunction with county-level analysis. This work is expected to be developed in Q1 of 2021. • Evaluate opportunities to increase and recalibrate affordable housing incentives in the La nd Use Code (LUC) (Strategy 14) - Designed to increase incentives to develop affordable housing in the Land Use Code to increase affordable housing supply. This evaluation will be conducted by Root Policy Research and will inform the first phase of the Land Use Code appropriation work (see below). • Foreclosure and eviction prevention programs (Strategy 25) - Provide assistance with mortgage debt restructuring and mortgage and/or utilities payments to avoid foreclosure as well as short -term emergency rent and utilities assistance for renters. CARES CVRF Act funding supported this in 2020 however additional resources are required moving forward. Staff is exploring if CARES CVRF funding can continue in 2021, or if other funding sources will need to be identified. Quick(er) wins requiring Council action: • Metro DPA Program (not included as a strategy, given this action will move forward prior to plan adoption) - This program allows residents of Fort Collins to participate in a down payment assistance progra m administered by the City of Denver. This program expands the range of down payment assistance available to households earning up to $150K (most current programs administered by City partners only go up to 80% AMI, which is $75,300 for a household of four) at no cost to the City. Next step: This Resolution will be considered by Council on February 2 on the consent calendar. • Bring forward an off-cycle appropriation to prioritize housing-related LUC changes (Strategy 9) - As discussed at the December work session, this strategy will fund LUC updates to define additional housing types; create opportunities to increase overall housing supply; recalibrate incentives for affordable housing production; identify opportunities to add to existing incentives; refin e and simplify development processes; and reorganize the LUC. Next step: First Reading is scheduled for February 16 and will require approximately $250,000-350,000 from General Fund Reserves to advance (with a match of $60,000 from the Home2Health grant). (Attachment 4.) January 26, 2021 Page 5 Next Steps • Staff revisions to the draft plan based on Council and community feedback • February 16 - Plan adoption, first reading; LUC appropriation, first reading • March 2 - Plan adoption, second reading; LUC appropriation, second reading • Spring - Community summit • Summer - Implementation Plan, Council work session (to be scheduled) ATTACHMENTS 1. Housing Strategic Plan (draft) (PDF) 2. Work Session Summary (PDF) 3. Fall Engagement Report (PDF) 4. Land Use Code Off-Cycle Appropriation Summary (PDF) 5. Powerpoint Presentation (PPTX) Housing Strategic Plan | Draft Plan 6 TABLE OF CONTENTS Cover ................................................................................................................................................... 1 Acknowledgments ............................................................................................................................... 2 Title Page ............................................................................................................................................. 3 Letter To the Community (From City Leadership) ................................................................................. 4 Letter to the Community (From H2H Partners) ..................................................................................... 5 Executive Summary ............................................................................................................................. 8 Introduction ......................................................................................................................................... 9 Why Update the Housing Strategic Plan now? ......................................................................................... 9 What’s different about this plan? ............................................................................................................. 9 A Systems Approach ............................................................................................................................. 9 Centered in Equity .............................................................................................................................. 10 Connecting Housing and Health ......................................................................................................... 12 Reflects Lessons Learned from the COVID-19 Pandemic .................................................................... 14 Previous Plans and Efforts .................................................................................................................. 14 From Dialogue to Policy – The Planning Process ................................................................................ 14 How to Use this Plan ............................................................................................................................... 15 Vision and Housing Goals ................................................................................................................... 17 Defining the Vision .................................................................................................................................. 17 Meeting The Vision Today and in the Future .......................................................................................... 18 Affordability Goal .................................................................................................................................... 19 How Are We Doing So Far? Are We Meeting Our Goal? .................................................................... 19 Refining The Goal ................................................................................................................................ 19 Greatest Challenges and Remaining Questions .................................................................................. 21 Greatest Challenges ................................................................................................................................ 21 Remaining Questions .............................................................................................................................. 24 Strategies and Priorities ..................................................................................................................... 26 Existing Affordable Housing Strategies and Programs ............................................................................ 26 Preliminary Strategies & Evaluation Framework .................................................................................... 28 How Strategies Were Prioritized ............................................................................................................. 30 Brief Description of Prioritized Strategies ............................................................................................... 32 Note to Readers: Acknowledgments, Letters, Executive Summary and Appendices will be released in February with the final plan. The fully designed plan will be released in late February, after First Reading on February 16 ATTACHMENT 1 Housing Strategic Plan | Draft Plan 7 Detailed description of prioritized strategies ......................................................................................... 39 Implementation ................................................................................................................................. 50 Immediate Next Steps in 2021 ................................................................................................................ 50 Biannual Planning Lifecycle ..................................................................................................................... 51 Guiding Principles ................................................................................................................................... 52 Appendices ........................................................................................................................................ 54 Housing Strategic Plan | Draft Plan 9 INTRODUCTION The Housing Strategic Plan guides housing policy, sets a new vision for housing in Fort Collins, and outlines a framework for investments in the community’s housing system. Fort Collins residents, community partners, and the City created this plan together over the course of ten months. WHY UPDATE THE HOUSING STRATEGIC PLAN NOW? The City has had a strategic plan for housing since 1999 and typically updates the plan every five years. In 2015, City Council adopted the previous version, the Affordable Housing Strategic Plan, which set a goal for 10% of housing to be affordable by 2040 and outlined five key strategies: • Increase the number of affordable rental units; • Preserve the long-term affordability and physical condition of the existing stock of housing; • Increase housing and associated services for people with special needs; • Support opportunities to obtain and sustain affordable homeownership; and • Refine incentives to encourage affordable housing construction and expand funding sources and partnerships. Regular five-year updates allow our community to reassess our housing efforts continually, incorporate new data and trends and adjust policies as needed. In 2019, City Council adopted “Attainable and Achievable Housing Strategies” as a priority and established an Ad Hoc Housing Committee to guide the development of this plan update. WHAT’S DIFFERENT ABOUT THIS PLAN? • Uses a systems approach to address the entire housing spectrum; • Centers the plan in equity for all Fort Collins residents; • Connects housing and health; and • Reflects some of the lessons learned from the COVID-19 pandemic. A SYSTEMS A PPROACH All previous housing plans adopted by the City have focused on affordable housing. The City defines affordable housing as any home that is: • Affordable for households earning 80% or less of the Area Median Income (AMI) without spending more than 30% of their income for rent, or 38% of their income for a mortgage; and • Deed-restricted, meaning the cost of rent or mortgage remains affordable for at least 20 years. While this framework is useful, we know that it does not address the needs of many people who are struggling to afford housing in Fort Collins. Housing is a complex, interdependent system that requires a comprehensive approach. Accordingly, this updated Housing Strategic Plan addresses the entire spectrum of housing. It includes targets, metrics, and policies that include all kinds of homes and earning levels, not just those that meet Housing Strategic Plan | Draft Plan 10 the City’s definition of affordable housing. The graphic below shows the spectrum of housing covered in this version of the City’s housing plan: CENTERED IN EQUITY The Housing Strategic Plan is aligned with the 2020 City Strategic Plan’s objective to “advance equity for all, leading with race,” so that a person’s identity or identities is not a predictor of outcomes. Leading with equity impacts both the planning process and the plan’s intended outcomes: • Equity in process: Ensuring everyone has meaningful opportunities to engage and provide input into the Housing Strategic Plan process. • Equity in outcomes: Everyone has healthy, stable housing they can afford. To begin leading with equity in the planning process, we are changing the way we listen to and learn from the community. We are recognizing the need for everyone to speak and receive information in the language they feel most comfortable with (language justice0F 1), tailoring content and format to each unique audience, and working on building trust with groups that historically have not been included in City planning efforts, but this work cannot end there. We will continue to learn, adjust, and step more fully into processes that empower community members to work with local government to create the future. Adopting housing policies that create equity in outcomes is equally important. We need to go deeper than the traditional economic cost/benefit method of measuring results. Who will each policy benefit? Who will be indirectly affected? Will unfair and biased outcomes be reduced? This work focuses on a universal outcome for our entire community – the Plan’s vision that “Everyone has healthy, stable housing they can afford,” and will include targeted strategies to ensure a person’s identity or identities is not a predictor of whether or not they, or our community, achieve this vision.1F 2 Centering 1 Language justice is a commitment to creating spaces where no one language dominates over any other and to building cross-language communication over the long haul. 2 The concept of targeted universalism, developed by the Othering and Belonging Institute, means setting one single goal that applies to everyone. Then, “the strategies developed to achieve those goals are targeted, based upon how different groups are situated within structures, culture, and across geographies to obtain the universal goal.” Housing Strategic Plan | Draft Plan 11 our work in equity is a process of continual growth and comes with a great deal of change and myriad tensions to balance as we work to build a better future for all people in our community. UNDERSTANDING THE I MPACTS OF I NSTITUTIONAL AND S TRUCTURAL R ACISM: Fort Collins’ housing system is inextricably linked to the national and statewide context, especially the long-term effects of institutional and structural racism.2F 3 The Housing Strategic Plan recognizes and highlights these impacts, outlines policies to address and reduce systemic inequities, and makes intentional decisions that move Fort Collins closer to our vision. Despite progress in addressing explicit discrimination, nationwide racial inequities continue to be deep, pervasive, and persistent in education, criminal justice, jobs, housing, public infrastructure and health. In housing specifically, significant evidence proves that structural racism has unfairly limited the ability of BIPOC (Black, Indigenous and People of Color) communities to secure healthy, stable housing they can afford – both historically and today. Fort Collins continues to experience the long-term effects of the displacement and marginalization of our region’s indigenous people to create a community that did not provide equal opportunity and fair treatment for all of its members. The legacy of neighborhood segregation and social and economic discrimination against BIPOC community members is evident in generational wealth gaps that affect access to healthy and stable housing today. Segregation ensured that BIPOC residents in Fort Collins were likely to live near the city’s industrial sites and more likely to be exposed to toxins such as coal smoke and soot from the sugar beet factory; constant pollution and hazards from trains; and the odor and environmental impacts from the original Fort Collins City landfill and the nearby oil depots.3F 4 This segregation and disproportionate exposure to environmental harms was often a matter of widespread but informal housing discrimination, as well as enforced in some cases by restrictive covenants that excluded BIPOC residents from living in certain white neighborhoods in Fort Collins (see example in above image). These covenants often included 3Institutional racism refers to policies, practices, and programs that, most often unintentionally and unconsciously, work to the benefit of white people and the detriment of people of color. Structural racism is a history and current reality of institutional racism across all institutions, combining to create a system that negatively impacts communities of color. (Source: fcgov.com/equity) 4 Hang your Wagon to a Star: Hispanics in Fort Collins 1900 – 2000. Adam Thomas, SWCA Environmental Consultants, see in particular pages 7-9 for examples. Housing Strategic Plan | Draft Plan 12 minimum sales prices for homes as well, ensuring that lower-income residents—regardless of race—were also excluded. 4F 5 These examples highlight the legacy of institutional and structural racism in Fort Collins and help to explain its continued ripple effects in our present housing system as well. For example, there is a higher denial rate for mortgage lending for community members who identify as Hispanic / Latinx – these community members are denied loans 20% of the time, while non-Hispanic / Latinx community members are denied 5% of the time even while having similar economic statuses.5F 6 Additionally, household incomes for BIPOC households are lower than they are for white households. Median household income for African American and Hispanic households is roughly $20,000 less than non-Hispanic white and Asian households. About one in four nonwhite households earn less than $25,000 annually.6F 7 Whether through forced displacement, land use regulation, or the financial systems tied to housing and wealth generation, it is clear that access to stable, healthy, affordable housing is not distributed equitably among all communities in Fort Collins. For more information about these and other impacts of systemic racism in the housing system, see pages 5-10 in the Existing Conditions Assessment. CONNECTING HOUSING AND HEALTH While housing affordability is one essential component of a healthy housing system, there are many other elements to consider. Though Fort Collins has long acknowledged a connection between housing and health, our housing policies have most often focused primarily on affordability: “Economically, the more a household has to spend on housing the less money they have for other needs. Housing costs will typically take precedence over other staples such as food, transportation and medical care. These factors lead to less individual wellness and less community prosperity. Less individual wellness leads to less stable housing conditions, which leads to less stable families and neighborhoods. From an environmental perspective, a lack of affordable housing pushes some community members that work in Fort Collins out to other communities to live. This creates congestion on our roads and increased pollution, which damages the environment that the Fort Collins community cherishes. Thus to create a healthier community, Fort Collins must actively pursue policies to ensure that people from all walks of life can find an affordable, quality place to live.”7F 8 The quote above describes some of the different health pathways that can lead to poor outcomes in peoples’ lives. Housing conditions and costs, social and economic factors, and environmental conditions 5 Restrictive Covenant from Slade Acres, 1948 – south of Mulberry Street, at Sheldon Lake: https://citydocs.fcgov.com/?cmd=convert&vid=51&docid=7701&dt=S-SUBDIVISION+PLAT 6 Analysis of Impediments to Fair Housing Choice, update in 2017 by City staff to original work completed by BBC Consulting in 2012. The lending disparity cited here was identified in the 2017 update. 7 Existing Conditions Assessment, pg 38; from American Community Survey five-year data, 2018 8 Affordable Housing Strategic Plan, 2015-2019 (pg. 1) Housing Strategic Plan | Draft Plan 13 can have compounding impacts on an individual’s health and on community well-being.8F 9 , 9F 10 Healthy, stable, affordable housing is the foundation of both individual and community health, and this fundamental truth is reflected throughout the vision and strategies in the Housing Strategic Plan. H OME2HEALTH The Home2Health project began after the 2019 adoption of City Plan. Home2Health is a collaborative, two-year project led by the City and community partners including the Family Leadership Training Institute at CSU Extension, the Center for Public Deliberation at CSU, The Family Center/La Familia, the Partnership for Age-Friendly Communities, and the Larimer County Department of Health and Environment. The purpose of this project is to increase our community’s ability to work together to carry out updates to policies, codes, and regulations that can improve housing affordability and health equity. After a year of community conversations, storytelling, and identifying key housing issues, Home2Health began working to bring community voices and priorities into the development of the Housing Strategic Plan. Hundreds of residents participated in this process, and this plan centers the voices of community members throughout. 9 Housing and Health: An Overview of the Literature. Lauren Taylor, 2018. 10 Health Impact Assessment Summary. Larimer County Department of Health and Environment, Built Environment Group, 2020. Housing Strategic Plan | Draft Plan 14 REFLECTS LESSONS LEARNED FROM THE COVID-19 PANDEMIC This Housing Strategic Plan was developed in the midst of the COVID-19 global pandemic, and the resulting health and economic crisis and public health restrictions have further exposed and increased pre-existing inequities in housing, employment, and health. Now, more than ever, the housing needs in our community are critical and urgent. The development of this Housing Strategic Plan was a priority prior to the pandemic and has become even more important to adopt and apply as we face a public health emergency that is disproportionately impacting BIPOC and low-income households. PREVIOUS PLANS AND EFFORTS This housing plan incorporates the primary conversations and strategies identified in previous efforts, including City Plan, the annual Community Survey, Our Climate Future, the Analysis of Impediments to Fair Housing, the Social Sustainability Gaps Analysis, and conversations led by the Health District of Larimer County, among others. Community members have consistently talked about the importance of housing to a healthy environment, an equitable community, and to the physical and mental health of individuals. FROM DIALOGUE TO POLICY – THE PLANNING PROCESS Conversations, storytelling and partnerships facilitated through Home2Health, community direction from other planning efforts such as City Plan, and the strong foundation created by the previous Affordable Housing Strategic Plan all helped make this Housing Strategic Plan possible. The planning process steps include the following: • Step 1 Vision: A vision paints a roadmap for the future. This plan’s vision that “Everyone has healthy, stable housing they can afford” commits to ensuring all community members benefit from our housing efforts and expands the focus of our work from solely on affordability to also include health and stability. • Step 2 Our Greatest Challenges: The housing system is complex and has many different influences. This step identified the greatest challenges to achieving the vision in Fort Collins. • Step 3: Community Engagement: Over a two-month period, H2H partners and staff asked approximately 450 community members to reflect on whether the vision and greatest challenges matched their experience and what they would like to see changed to achieve the vision. • Step 4: Identify strategies and create a tool to evaluate them: Strategies were identified based on what the community highlighted as important, research on peer cities, and work with the project’s consultant team, Root Policy Research. To date, over 50 strategies have been identified. Housing Strategic Plan | Draft Plan 15 • Step 5: Evaluate the strategies identified: Strategies were evaluated using 17 criteria, which ask how well the strategy advances the vision, whether it is centered in equity, whether it is feasible, what kind of impact it will have, and what resources are required. • Step 6: Prioritize the strategies: With all strategies individually evaluated, staff developed an initial set of priorities for the community to consider. Community members and City Council prioritized solutions for final inclusion in the plan. • Step 7: Consider plan adoption: In February 2021, Council will review the community’s feedback, the draft plan, and will consider adoption of the Housing Strategic Plan. • Step 8: Implementation: In many ways, the final step in the planning process is just the beginning of the work. Implementation is when community, Council and staff will transition from “what” to “how” we achieve this vision. The community and the City will annually review work and determine what’s working and what’s not. In addition to the specific planning steps, as the plan process began, we heard and incorporated some key messages from the community that will continue to shape the City’s approach to the housing system through our guiding principles (see the Implementation Chapter for more details on guiding principles in implementation). • Planning is important and it needs to be accompanied by immediate action. It is not enough to plan for years in the future. People are struggling now to find stable, healthy housing they can afford. • Our strategies need to be prioritized and we need to have metrics that make sure our strategies are working. We should be able to clearly identify where we are achieving our goals and where we are falling short. • The whole community needs to be involved. he City staff and City Council can only influence some parts of the housing system. To make meaningful progress, partnerships are critical. HOW TO USE THIS PLAN The Housing Strategic Plan is one of many strategic or “functional” plans that help the City set specific targets and make progress toward the vision for our community outlined in our comprehensive City Plan. If City Plan identifies the “what” for the future of Fort Collins, the Housing Strategic Plan describes the “how” that creates a roadmap for action in the housing system and future public funding through the City’s Budgeting for Outcomes (BFO) process. Everyone has a part to play in this plan. To get to a future where everyone has healthy, stable housing they can afford, we will all need to work together to make changes in our housing system. Housing Strategic Plan | Draft Plan 16 We hope you will see yourself, your neighbors, and your families in this plan. We also hope you will use this plan to build momentum and accountability. Finally, we encourage you to get involved. If you have an idea or a project to propose, get in touch! The remaining sections of this plan describe our housing needs, strategies, and accountability measures in the following topic areas: • Vision: This section articulates the vision, defines each of the terms used, how community members shared that it affects them today and paints a picture of what it could look like in the future. • Greatest Challenges & Remaining Questions: The housing system is complex and is influenced by many different factors. This section includes the six greatest challenges that affect our ability to achieve the vision. • Strategies and Priorities: This section illustrates the primary strategies we will use to overcome the greatest challenges and advance us toward the vision. Strategies reflect ideas from the community, research on how peer cities are approaching similar housing needs, and work with the project’s consulting firm, Root Policy Research. • Guiding Principles & Metrics to Guide Implementation: This plan recognizes that as strategies are applied and the housing system evolves, new and updated strategies will be needed to move toward the vision. This section will set forth guiding principles for advancing strategies in the future and includes a set of metrics for evaluating plan success. Housing Strategic Plan | Draft Plan 17 VISION AND HOUSING GOALS Vision: Everyone has healthy, stable housing they can afford DEFINING THE VISION Everyone recognizes that all community members need housing and are affected by the housing they do or do not have. By including the entire community in the vision, we can assess who does not have healthy, stable, or affordable housing today and design strategies to ensure that a person’s identity or identities is not a predictor of whether or they, or our community, achieve this vision. (As one example, see the sidebar on varying rates of home ownership in Fort Collins.) Healthy Housing addresses physical and mental well-being inside and outside of the home. Inside the home, this means high quality indoor air, comfortable temperatures in each season, and freedom from harmful mold, pests or pathogens. Community members defined health outside the home as feeling safe in your neighborhood and the ability to walk, bike, or take transit to get the services you need. Stable Housing is when a house becomes a home. For community members, a secure place to live is a fundamental requirement for quality of life and well-being. Housing stability is central to the best-practice “Housing First” approach to homelessness prevention, which recognizes that housing is the most important platform for pursuing all other life goals. Affordable Housing recognizes that many people in Fort Collins have financial challenges related to housing costs and that increasing the range and quantity of housing options can support greater choice and affordability. Today, 3 in 5 renters and 1 in 5 homeowners are cost-burdened, which means that the household spends more than 30% of their income on housing. Homeownership rates in Fort Collins vary by race (Source: Equity Indicators): - 55 in 100 white households - 42 in 100 Hispanic/Latinx households - 52 in 100 Asian households - 20 in 100 Black households - 47 in 100 Native American households (Images Credit: Shelby Sommer) Housing Strategic Plan | Draft Plan 18 MEETING T HE VISION TODAY AND IN THE FUTURE What have community members shared about their housing today and whether it is healthy, stable, or affordable? How might Fort Collins evolve in the future as we work toward the vision? Vision Today What we heard from the community about their current experiences with housing Tomorrow What the vision aims to achieve in the future Healthy Housing “My apartment is rising in rent every year, and the living conditions don’t match the price. I have maintenance issues (and) the condition of the apartment is old and undertaken care of. . .” “It makes it so that the places that are more affordable are no longer safe due to living conditions and crime rates among other things. These are important to consider when you have kids. Do you stay broke and live somewhere safe or give yourself more cushion but risk safety? Some of the more affordable areas also do not have as good of schools, which is a big concern for me regarding my kids.” Tools would be in place to ensure that renters have safe and healthy places to live. Outside the home, neighborhoods across the City would provide safe, walkable spaces for all ages and stages of life. Stable Housing “We are impacted by great uncertainty in being able to afford to live in this City in the long-term, impacting all facets of our lives. . . including mental health with facing this kind of uncertainty. The right to shelter is a basic need and there needs to be solutions that start supporting those lower-income residents to have long- term stable housing as soon as possible.” “You have to live paycheck to paycheck. Sometimes you don't even know where your next meal will come from.” Community members would be able to choose where they want to live and for how long, making housing instability an issue of the past. Policies and solutions focus on all outcome areas, from housing to health. Affordable Housing “When you lack affordable housing, it causes a lot of stress for the individual. Do I have enough money for rent, for food, for medicine, and for gas? You keep making trade-offs. [If] I pay for rent, I don't buy food or don't get medicine.” “I think it is important that workers are able to afford living in or near the city they work in, especially teachers and frontline workers.” Housing costs and the cost of living are aligned with individual incomes, meaning decisions like these are rare and nonrecurring. There is enough housing supply that aligns with the incomes and needs of community members. Housing Strategic Plan | Draft Plan 19 AFFORDABILITY GOAL Goal (set in 2015): Fort Collins aims to have 10% of its housing stock be deed restricted and affordable [to households earning <80% AMI] by 2040. HOW ARE WE DOING SO FAR? ARE WE MEETING OUR GOAL? In 2015, affordable housing made up 5% of the City’s housing stock. Over the past five years since the 2015 plan was adopted, the City and its partners have added 373 new affordable homes with 240 under construction. The total number of housing units has also increased proportionately to 70,692, which means that affordable units still make up only 5% of the overall housing stock. Overall, the City has 3,534 affordable units in its affordable housing inventory, which falls short by 708 units of where we should be by now. To get back on track to achieve our 10% goal by 2040, the City would need to increase the amount of affordable housing by 282 units every year from 2020 onward. Every year the City is unable to reach its annual affordable housing target requires current and future generations to make up the difference. REFINING THE GOAL The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goal. In addition, the goal, as it is currently defined, reflects a broad approach to affordability and does not address targeted categorical needs by price point or tenure (rental vs. owner-occupied housing units). The nuances in housing needs, as well as the challenge of tailoring new tools and strategies to achieve the city’s affordability goal, suggest the City should consider defining subgoals to establish more specific targets and monitor progress toward the overarching goal of 10% affordability by 2040. This concept is included with the prioritized strategies, starting on page 26. The following figures compare supply and demand for both rental and ownership housing at different income levels (as a percentage of AMI) and illustrate that rental needs are concentrated below 60% AMI while ownership needs are concentrated below 120% AMI. The City needs to build 282 affordable units per year between 2020 and 2040 to achieve its affordability goal. Housing Strategic Plan | Draft Plan 20 Rental Affordability, Fort Collins, 2019 Note: Income limits assume a 2- person household and allow for 30% of monthly income for housing costs. Source: 2019 American Community Survey (ACS), HUD 2019 Income Limits, and Root Policy Research. Ownership Affordability, Fort Collins, 2019 Note: Income limits assume a 2- person household and allow for 30% of monthly income for housing costs including 30-year fixed mortgage with 4.0% interest rate and 10% downpayment. Source: 2019 ACS, Larimer County Assessor Sales Database 2020, HUD 2019 Income Limits, and Root Policy Research. Housing Strategic Plan | Draft Plan 21 GREATEST CHALLENGES AND REMAINING QUESTIONS City staff began developing the Housing Strategic Plan by analyzing housing, demographic, and job data for Fort Collins. This analysis became the Existing Conditions Assessment (which will be added as an Appendix in the final document), which provides an overview of what we know about the current state of housing in Fort Collins and the many factors that influence our housing system. Some of the topics include: • Demographics • Equity and inclusion history and context • Jobs and economic indicators • Price of rental and for sale housing • Housing policies Based only on this initial data and analysis, staff created a preliminary list of greatest challenges and remaining questions for the plan update. During the public engagement process, staff shared the list with participants and asked them to compare the challenges and questions with their lived experience. Did the list reflect their lived experience of finding housing in Fort Collins? What was missing? How could these challenges and remaining questions be adjusted to better reflect the reality of finding a place to live in Fort Collins? What needs to change to address these challenges? This process led to the finalized list of greatest challenges and remaining questions in the Housing Strategic Plan. GREATEST CHALLENGES P rice escalation impacts everyone, and disproportionately impacts BIPOC [B lack, Indigenous and P eople of C olor] and low-income households. Latinx, Black or African American, and Native American households make up a disproportionate share of low- income households in Fort Collins. While the wages of many low-income occupations have climbed faster than wages overall, they still have not kept up with the increase in housing prices. Since 2010, rents in Fort Collins have increased 40%, single-family detached homes have increased in value by 125%, and townhome and condo values have risen 158%, while wages have increased by just 25%. With an ever-widening gap between housing prices and incomes, and without further review into possible causes and explanations for that gap, BIPOC households could be further marginalized by our housing system and suffer from the continued effects of a gap that may be caused, at least in part, by effects of institutionalized racism, which is further outlined in the Equity and Inclusion Section of the Existing Conditions Assessment. Data clearly indicate BIPOC communities are disproportionally low-income, have lower net worth, and are less likely to be homeowners. While structural racism is evident across the United States and more locally, more work is needed to establish the exact cause of these disparate outcomes here in Fort Collins. Housing Strategic Plan | Draft Plan 22 There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need. The inventory of affordable rentals and homes for sale has dwindled over the past several years. In 2012, 50% of the rental housing stock cost less than $1,000 per month to rent. In 2018, only 20% of the rental housing stock cost less than $1,000 per month. As a result, 60% of renters in Fort Collins are "cost burdened.” Cost burdened households spend more than 30% of their income on housing, which means they have less money for saving, food, healthcare, and other essential needs. Similarly, since 2010 the median price of housing for purchase has risen from around $200,000 to $450,000 for a single-family detached home and from around $120,000 to $310,000 for a townhome or condominium. This has led to an increased percentage of renters. Fort Collins is now almost evenly split between renters and homeowners. Participants in the Home2Health community engagement workshops indicated that they are having to make difficult choices to meet their housing needs. Many community members are subletting portions of their homes, living with roommates, or working multiple jobs to afford their homes. Elderly residents and residents with disabilities also have a difficult time finding housing that is accessible for their physical needs. This is a mismatch between the housing that people need and the housing that is available in Fort Collins. Community members forced to live in housing that is too expensive or that does not meet their physical needs are making difficult decisions that lead to instability in their lives. The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goals While the City has affordable housing incentives and provides $1.5 million to $3 million in direct subsidy funding every year, these resources are not enough to meet the City’s affordable housing goals. The City would need an additional 708 affordable units to meet its 2020 goal of 6% of all housing being affordable. Assuming a $38,970 investment by the City yields one unit of affordable housing, the City would need to invest $27,590,000 of direct subsidy funding to close the 2020 gap, which is the equivalent of 9 to 18 years of funding at current levels. This calculation also assumes that federal subsidies for the development of affordable rental housing (Low-Income Housing Tax Credits) remain steady, that there are enough tax- exempt government bonds (Private Activity Bonds) available to support each project, and that private developers have the ability to deliver projects. In addition, recommendations from the Land Use Code Audit indicate that current land use incentives (e.g. increased density, parking reductions) for affordable housing need to be revised and recalibrated. Every year that passes where the City does not meet its affordable housing goals means current and future generations must make up the difference. “I used to live in Fort Collins in the 80s and 90s. We could afford one income and raise a family. Now, divorced, I had to leave Fort Collins and move to Wellington where I have to rent a room. Due to the increase in housing prices many people were pushed out to Wellington to find affordable housing. If you look at Wellington now, housing isn't affordable there either. Homes are well over $300,000.” —Community Engagement Workshop Participant Housing Strategic Plan | Draft Plan 23 Job growth continues to outpace housing growth The Fort Collins job market grew by 2.8% per year from 2010 to 2019. The Fort Collins population only grew by 1.6% annually during the same timeframe. While the housing stock of Fort Collins grew by 1.73% from 2010 to 2019, this is still a slower rate than job market growth. The community’s unemployment rate fell from 7% to 3% between 2012 and 2015 and has held steady below 3% since 2015. All of these factors indicate that most new job openings in the community are being filled. If new housing supply in Fort Collins cannot keep up with the pace of job growth, some Fort Collins workers likely are forced to live in surrounding communities. Timnath, Wellington, and Windsor grew by 18%, 8.7%, and 7%, respectively, from 2015 to 2018. Residents in these Northern Colorado communities, as well as others, tend to commute into neighboring communities like Fort Collins, Loveland, and Greeley for work and many of their daily needs. As of 2015, 18,799 car trips started in communities with cheaper home prices than Fort Collins. Some of these commuters live in nearby communities by choice. It is likely, however, that many of these commuters cannot afford to live in Fort Collins and must live in surrounding communities, in hopes that they may be able to enter the Fort Collins housing market in the future. This is known as the “drive till you qualify” phenomenon, which also requires commuters from neighboring communities to pay more for daily transportation. In addition to the burden it creates on individuals, this trend runs counter to the inclusive vision outlined by City Plan and the City’s climate action goals, such as the goal to reduce vehicle miles traveled (VMT) per capita. When individuals have to drive further to meet their housing needs, VMT per capital is increasing instead of decreasing. Housing is expensive to build, and the cost of building new housing will likely continue to increase over time In isolation, regulations for new housing development help deliver the kind of development quality desired by the Fort Collins community. Developers pay for the impact their developments have on the community through various fees, and regulations help ensure consistency across all kinds of new housing development. The unintended consequence of regulations on housing, coupled with impact fees, is that new housing ends up being unattainable for most households. Fees for infrastructure, water, and development review continue to rise as resources become scarcer and development challenges become more complex. In 2015, the average cost to build a unit of housing was around $278,000, while today it costs close to $330,000. Median income households can only afford a home priced at around $330,000. Developers build housing for a profit and thus cannot build new homes that can be purchased for less than $330,000 without some form of subsidy. In addition, the recent Land Use Code Audit identified many places where existing “Housing is part of a more complex issue of life in Fort Collins. We have attracted many well paying jobs and have paid for them. We have not done the same with lower income/lower education jobs.” —Community Engagement Workshop Participant “Fees to builders are too high to do anything but "high end" or "luxury" as the media likes to call it. There is a huge market of low to middle income residents that developers would love to help but costs to build are too difficult to hit any significant development.” —Community Engagement Workshop Participant Housing Strategic Plan | Draft Plan 24 regulations could be revised or clarified to better encourage a wide range of housing options. However, rewriting the Land Use Code is a complex, resource-intensive task that will require funding to complete. Further complicating this picture is the finite quantity of natural resources in Fort Collins. Water to support new development is increasingly scarce and expensive. Within our Growth Management Area, Fort Collins has a limited supply of land. It will only become more expensive to develop in Fort Collins. A dollar spent today on housing will go further than a dollar spent on housing in ten years. REMAINING QUESTIONS It is difficult to predict the lasting effects of COVID-19 and the impacts of the pandemic The COVID-19 pandemic has cast a shadow of uncertainty over many facets of life. Unemployment has soared into double digits, leaving many without a stable income. During the community engagement process for this plan, many reported the strain the pandemic has placed on their mental and physical health. While the CARES Act provided enhanced unemployment benefits and stimulus funds to individuals earning less than $75,000 and married couples filing jointly earning less than $150,000, the medium and long-term financial prospects are unknown for households impacted by COVID-19. Previous recessions have seen increased rates of foreclosures and evictions. Recovery is also uncertain since this current recession is in direct response to a pandemic. Recovery will depend on the success of the vaccine rollout, continued physical distancing, how fast businesses recover, and many other factors. It remains to be seen how the lingering effects of the pandemic may continue to impair the mental and physical health of our community. H ousing policies have not consistently addressed housing stability and healthy housing, especially for people who rent What does it mean for all residents to have healthy and stable housing? With only 1 in 10 renters able to afford the median home price is Fort Collins, how will the City support the nearly 50% of households who rent their homes? Today, the City has several programs available to support households, e.g., income- qualified programs, Healthy Homes, Landlord and Tenant Information, and more, and has recently supported increased rights for owners of manufactured homes who own the home but rent or lease the land. Since fewer households in Fort Collins own homes than in the past, housing policies also need to evolve to better support renters in our community. "With having to now deal with COVID, being unsure as to what is going to happen in the next couple of months, hours getting cut and prices rising as a student it has been very stressful. Trying to balance all of those things plus school, has impacted my mental health and makes me worried/anxious that I may lose my job due to COVD or miss a couple of days and be short on rent because of COVID. " —Community Engagement Workshop Participant "I want decision makers to understand that our families are regular people working hard and they did not plan to take care of grandchildren. A crisis can change one’s life forever and it affects their financial and mental health, that is what our senior families are dealing with " —Community Engagement Workshop Participant Housing Strategic Plan | Draft Plan 25 As noted on page 50 of the Existing Conditions Assessment, current zoning does not meet demand for housing supply. Further, Fort Collins limits the number of unrelated people that can occupy a home (referred to as “U+2”). While many consider U+2 to be a successful tool for preserving neighborhood character, the extent to which U+2 impacts the housing market is unclear. More study would shed light on how U+2 might be modified to meet its intent and advance the vision without impacting the affordability of housing. The Housing Strategic Plan includes the entire spectrum of housing and recognizes the critical role of rental housing within the housing system. This will require careful consideration of new policies that could improve housing stability and health for renters. Housing Strategic Plan | Draft Plan 26 STRATEGIES AND PRIORITIES Development of this plan included consideration of more than 50 potential strategies that were identified by the community City staff, City Council’s Ad Hoc Committee, and best practice research. This section presents the initial set of prioritized strategies that will be reviewed by the community in January 2021. The section begins with a brief overview of existing strategies and programs, followed by a discussion of how strategies were identified, evaluated, and prioritized. Finally, the section presents prioritized strategies with a focus on how those strategies help accomplish the city’s Vision and address the Greatest Challenges (see pages 17-20 for more info on the Vision and pages 21-25 for more info on the Greatest Challenges). EXISTING AFFORDABLE HOUSING STRATEGIES AND PROGRAMS Existing housing policies, programs, and partners are summarized below to provide context for the additional strategies set forth in this Plan. Additional details are available in the Existing Conditions Assessment. Funding Sources and Financial Assistance: • Community Development Block Grant (CDBG) and HOME Funds – federal funds allocated annually to the City of Fort Collins to support affordable housing and economic/community development activities benefitting low-income households. Ranges from $1.5 to $2.5 million annually. • Private Activity Bonds (PABs) – tax-exempt bond capacity is allocated to the City of Fort Collins to finance affordable housing development in association with the 4% Low Income Tax Credit (LIHTC) development tools. PAB allocations to cities are based on population; Fort Collins received $8.9 million in 2020. • Affordable Housing Capital Fund – locally generated funding as part of the Community Capital Improvement Program quarter cent sales tax, a portion of which is dedicated to funding affordable housing ($4 million over 10 years, sunsetting in 2025). • Metropolitan Districts – special districts that issue tax exempt bonds to pay for infrastructure improvements. Residential Metropolitan Districts must provide some form of public benefit. Providing affordable housing is one of the public benefit options. Staff is currently evaluating this policy and there is a moratorium on new residential Metropolitan District applications until January 31, 2021. • Fee deferral – qualified affordable housing projects can defer development fees until their Certificate of Occupancy or until December 1 in the year building permits are obtained, whichever occurs first. • Fee credits – developers can seek credits to cover capital expansion fees, development review fees, and building permit fees on units for households earning no more than 30% AMI. • Homebuyer Assistance – the City previously provided loans to income-eligible households to cover a portion of down payment and closing costs; however, the City is no longer offering this program and is referring candidates to programs offered by other agencies. Housing Strategic Plan | Draft Plan 27 Partnerships. The City works with many partners to advance Fort Collins’ housing goals. Below are just a few examples. • Local Non-Profit Housing Providers – include CARE Housing, Neighbor to Neighbor, Habitat for Humanity, and Housing Catalyst. Partners provide affordable housing as well as housing-related services such as utility/rental assistance, housing counseling, homebuyer education, and eviction and foreclosure prevention. • Homeward 2020 – collaborative, strategic think-tank guiding implementation of Fort Collins’ 10- year plan to make homelessness rare, short-lived and non-recurring by setting priorities, developing alignment and action plans, and suggesting policy. • Northern Colorado Continuum of Care – coordinates funding and delivery of housing and services for people experiencing homelessness in Northern Colorado, bringing together agencies in Larimer and Weld Counties to develop a strategic, regional approach to homelessness. • Community Land Trust – affordable ownership model that removes land from the purchase of a home. Current partners include Urban Land Conservancy and Elevation Community Land Trust. • Land Bank program – the City’s primary long-term incentive for affordable housing in which the City acquires strategic parcels, holds, and then sells to qualified affordable housing developers at a discounted price; all units developed must be affordable in perpetuity. Land Use Code Provisions for Affordable Housing: • Low Density Mixed-Use (LMN) Zone District Density Bonus – density increase from 9 to 12 dwelling units per acre for affordable housing projects in the LMN zone. • Height bonus in the Transit Oriented Development Overlay Zone (TOD) – one additional story of building height if 10% of total units are affordable to 80% AMI or less (only applies in TOD zone). • Reduced landscaping requirements – affordable housing projects may plant smaller trees than required by the Land Use Code. • Priority processing – qualified affordable housing projects receive priority processing during the development review process (reduces each round of review by City staff by one week). Previous and Related Studies. Complementary recommendations from the following studies are acknowledged in the Prioritized Strategies: • Housing Affordability Policy Study (HAPS) – 2015 • 2015-2019 Affordable Housing Strategic Plan • Land Use Code Audit – 2020 • Analysis of Impediments to Fair Housing – 2020 • Homeward 2020 Strategic Plan – 2020 • Feasibility Study for Inclusionary Housing and Affordable Housing Linkage Fees - 2020 Existing programs, policies, strategies and partnerships will continue to be necessary as the City and community partners work towards housing goals. It is still important to increase the inventory of affordable rental units, preserve the long-term affordability and physical condition of existing affordable Housing Strategic Plan | Draft Plan 28 housing, increase housing and supportive services for people with special needs and support opportunities to obtain and sustain affordable homeownership. However existing efforts are limited in a couple of ways: first, because many of these programs are focused on reaching goals related to affordable housing, they do not address needs across the entire housing spectrum. Second, engagement with community members and partners indicate that community members do not always see their needs or themselves reflected in the strategies presented in previous plans. The proposed strategies are organized in a way to address these issues. PRELIMINARY STRATEGIES & EVALUATION FRAMEWORK Strategy Identification Preliminary strategies were designed to address the greatest housing challenges identified in the Existing Conditions report and were based on findings and recommendations in previous City reports,10F 11 in addition to engagement with various city departments, Boards and Commissions, Home2Health partners, meetings with the City Council Housing Ad Hoc Committee, community engagement and researching peer cities. These groups generated hundreds of ideas, which were consolidated and organized into over 50 preliminary policy strategies for consideration in the Plan. The process of converting ideas into preliminary strategies was led by the City’s consultant, Root Policy Research. All suggestions were included in some form11F 12; the reduction from 150 ideas to 50+ strategies was primarily based on consolidation of duplicate or similar ideas and framing ideas for a policy format. A full list of ideas (and which groups recommended them) as well as the resulting preliminary strategies will be available with the Final Plan. Strategy Evaluation and Prioritization The preliminary strategies were evaluated based on three factors: alignment with the vision, feasibility, and effectiveness. The evaluation of vision alignment included a series of questions that addressed each vision element (“everyone,” “health,” “stable,” “affordable”), with particular attention to equity factors at the individual and neighborhood level, see the evaluation framework questions on the next page. To evaluate whether a strategy was feasible and potentially effective, the process relied on questions related to community support, implementation options and partnerships, as well as expectations about how effective each strategy could be. Additional details on the preliminary strategies and evaluation framework will be available with the Final Plan. 11 2020 Land Use Code Audit, 2020 Analysis of Impediments to Fair Housing Choice, Homeward 2020 12 The only exceptions were ideas for which there was not a viable legal path forward (e.g., violation of basic property rights or interstate commerce). Housing Strategic Plan | Draft Plan 29 Staff and ad hoc housing committee members further prioritized strategies that met the baseline criteria (vision alignment, feasibility, and effectiveness), with a variety of exercises that rated and ranked each strategy as well as each problem the strategies are designed to solve, and discussed broad priorities and objectives required to achieve the City’s vision and goal. The process prioritized vision alignment over immediate feasibility, as some strategies may require additional staff time and/or funding. In other words, strategies that currently may not be financially feasible were included if they met the other two criteria. Prioritization efforts are ongoing and the strategies identified below reflect preliminary priorities, as of December 2020. Feedback on this draft Plan along with additional staff and committee workshops to be held in January 2021 will be reflected in the final version of the Housing Strategic Plan. All prioritized strategies meet the baseline vision, feasibility, and effectiveness criteria and reflect staff and community input on key objectives for the Plan. They are designed to address the Greatest Challenges (discussed in detail on pages 21-25), produce meaningful outcomes, and expand housing choice in Fort Collins across the entire spectrum of housing preference and need. Evaluation Framework Ex. StrategyEx. StrategyDoes this strategy create/preserve housing affordable to 80% AMI or less (City- adopted goal for affordability)?yes Does this strategy enhance housing stability?maybe Does this strategy promote healthy neighborhoods/housing?yes Does this strategy increase equity in the following ways… Address housing disparities?yes Increase accessibility?no Increase access to areas of opportunity?maybe Promote investment in disadvantaged neighborhoods?yes Mitigate residential displacement?yes Does this strategy address highest priority needs (to be defined by sub-goal development)?maybe Does this strategy increase housing type and price-point diversity in the city?yes Does the city have necessary resources (financial and staff capacity) to implement administer and monitor?yes Does this strategy have community support?yes Can the City lead implementation of this strategy (or does it require state/regional leadership and/or non-profit or partner action)?yes If no, are partnerships in place to lead implementation?n/a Does this strategy help advance other community goals (e.g., climate action, water efficiency, etc.)?yes How effective is this strategy in achieving the desired outcome (on a scale of 1 to 5 where 1 is not at all effective is 5 is very effective)?4 How resource intensive is this strategy (on a scale of 1 to 5 where 1 is no cost is 5 is very high cost)?2 Rating scales for efficacy and cost Respond to each question with yes, maybe, or no:Vision CriteriaFeasibility Criteria Housing Strategic Plan | Draft Plan 30 HOW STRATEGIES WERE PRIORITIZED Housing is a fundamental part of all communities, and a critical part of community development. Yet the types of housing available—and the market prices—are not always in line with community needs. After analyzing housing, demographic, and job data for Fort Collins in the Existing Conditions Assessment, staff identified the following list of Greatest Challenges and Remaining Questions (discussed in detail on pages 21-25) related to the Fort Collins housing system: 1. Price escalation impacts everyone, and disproportionately impacts BIPOC [Black, Indigenous and People of Color] and low-income households. 2. There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need. 3. The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goals. 4. Job growth continues to outpace housing growth. 5. Housing is expensive to build, and the cost of building new housing will likely continue to increase over time. 6. It is difficult to predict the lasting effects of COVID-19 and the impacts of the pandemic. 7. Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent. These challenges provide the baseline organization for the prioritized housing strategies. Though many strategies do address multiple challenges, they are organized around the primary challenge addressed. (No challenges are categorized under Greatest Challenge #6, as a primary, though many strategies will address housing challenges exacerbated by the pandemic). In addition, each group of strategies is linked to the vision (Everyone has healthy, stable housing they can afford) through a vision alignment statement. Priority strategies are summarized in the table below. The table also includes the anticipated outcome of each strategy and the anticipated timeline for implementation. Another way of thinking about the challenges is through the following problem statements: • We don't have enough housing units or the types of housing we need. • Once the housing does exist, the people who need the housing can't get into it. • Once the housing exists and the people who need it can get into it, they can't stay in it (or they are stuck in it). The Ad Hoc Committee identified the following strategies as quick wins: 1. Assess displacement and gentrification risk. 8. Extend the city’s affordability term. 9. Off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit. 13. Recalibrate existing incentives to reflect current market conditions (existing incentives include fee waivers, fee deferral, height bonus, density bonus, reduced landscaping, priority processing). 14.Create additional development incentives for affordable housing. 25.Foreclosure and eviction prevention and legal representation. Housing Strategic Plan | Draft Plan 31 Each of the prioritized strategies are explained below and they are organized by the greatest challenge that they address. Descriptions include secondary challenges addressed by the strategy (when applicable), the expected outcome of the strategy, the group impacted by the strategy, reasons for prioritization, and the timeframe for when actions could be implemented. All prioritized strategies included below received strong support from staff and committee evaluators, reflect community priorities, and meet baseline criteria for vision alignment and feasibility. The reasons for prioritization discussed below focus on why each strategy received such support. The timeframe is defined as: • Quick(er) wins: actions that could be moved forward in the very near term (less than 1 year) • Transitional: mid-term actions requiring 1-2 years to implement • Transformational: Longer term actions, requiring 2+ years to develop an implementation and engagement strategy Impacted players in the housing system that strategies touch on include: 1. Builders/developers 2. Landlords 3. Homeowners associations 4. Special districts and government entities 5. Financial institutions 6. Manufactured housing neighborhoods 7. Homeowners 8. Renters 9. People experiencing homelessness 10. Residents vulnerable to displacement 11. Historically disadvantaged populations 12. Other community partners This identification metric fosters broad access to the plan by allowing all participants, businesses, and residents to see where they “fit” in the city’s approach to housing. Housing Strategic Plan | Draft Plan 32 BRIEF DESCRIPTION OF PRIORITIZED STRATEGIES Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline Greatest Challenge #1. Price escalation impacts everyone, and disproportionately impacts BIPOC [Black, Indigenous and People of Color] and low-income households. Vision Alignment: The following strategies primarily address the "everyone" (i.e., equity) component of the Vision. 1. Assess displacement and gentrification risk (New) Map illustrating displacement and gentrification threats at the neighborhood level Improve housing equity, housing stability, and preservation • Not directly referenced, though there were many comments to no longer being able to afford to live here. Quick(er) win (<1 year) 2. Promote inclusivity, housing diversity, and affordability as community values. (Expand) Engagement should address structural racism, myths related to affordable housing and density, and prioritize storytelling and be culturally appropriate Improve housing equity and increase housing choice • Combat stigmas associated with affordable housing • Build community-wide support for doing things differently Transformational (2+ years) 3. Implement the 2020 Analysis of Fair Housing Choice Action Steps (Expand) The Analysis of Fair Housing is a HUD-required document that analyzes fair housing (the intersection of civil rights and housing) challenges for protected class populations in Fort Collins. Improve housing equity and access to opportunity • Focus financial support on lowest-income residents • Ensure all neighborhoods have access to amenities • Increase equity in existing programs and services Transformational (2+ years) Greatest Challenge #2. There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need Vision Alignment: The following strategies drive forward affordable, healthy, stable housing for all by increasing housing choice across the entire housing spectrum. 4. Implementation, tracking and assessment of housing strategies (Expand) Develop real-time, accessible and performance-based data evaluating performance of strategies to ensure they are effective, equitable and moving towards vision Increase and monitor effectiveness of strategies • Increase equity in existing programs and services • Consult with BIPOC and low- income households Quick(er) win (<1 year) 13 Each strategy is listed as New (initiated as a result of this Plan), Expand (expansion or evaluation of existing program or policy), or Continue (Continuing existing program or policy). 14 Staff is continuing to analyze the community engagement feedback and how it supports the prioritized strategies. This section will continue to evolve as we hear from the community. Housing Strategic Plan | Draft Plan 33 Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline 5. Advocate for housing- related legislation at state and federal levels (Expand) Monitor and support state level renter protection legislation. Advocate for additional state and federal funding sources. Work with Larimer County on eviction protections and consider statewide coalition Varied (e.g., renter protections, funding options) • Advocate for limits on rent prices and/or annual rent increases • Provide emergency gap funding to prevent eviction Transitional (1-2 years) 6. Visitability policy (New) Allows easy visitation by mobility impaired residents in a portion/percentage of units in new housing developments. Improve accessibility • Build community-wide support for doing things differently • Increase equity in existing programs and services Transformational (2+ years) 7. Remove barriers to the development of Accessory Development Units (Expand) Remove Land Use Code barriers and create more incentives for revamping existing housing/neighborhoods Diversify housing options/Increase housing choice • Explore housing types including smaller homes and cooperative housing • Relax restrictions in the Land Use Code Transitional (1-2 years) 8. Extend the City’s affordability term (Expand) The City’s current affordability term for projects receiving City funding or incentives is 20 years but many cities use longer terms, commonly 30 up to 60 years, to keep inventory affordable for longer. Increase stability & preservation of affordable rental/owner options • Build community-wide support for doing things differently Quick(er) win (<1 year) 9. Off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit (New) Defines additional housing types; creates opportunity to increase overall supply; recalibrates incentives for affordable housing production; identifies opportunities to add to existing incentives; refines and simplifies development processes Diversify housing options / Increase housing choice • Explore opportunities to limit fees associated with housing • Remove or relax regulations that limit creative reuse of existing homes Quick(er) win (<1 year) Greatest Challenge #3. The City does have some tools to encourage affordable housing, but the current amount of funding and incentives are not enough to meet our goals Vision Alignment: The following strategies primarily address the affordability component of the Vision. 10. Refine local affordable housing goal (Expand) Set more specific housing goals by income level so that it is easier to track progress and communicate our housing goals to developers Improve targeting of housing investments • Incentivize developers to build affordable housing Quick(er) win (<1 year) Housing Strategic Plan | Draft Plan 34 Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline 11. Create a new dedicated revenue stream to fund the Affordable Housing Fund (Expand) Create a fee or tax that generates money for the Affordable Housing Fund which would support additional affordable housing development and rehabilitation Increase supply and preservation of affordable rental/owner housing • Incentivize developers to build affordable housing Transformational (2+ years) 12. Expand partnership(s) with local Community Development Financial Institution (CDFI) to offer gap financing and low- cost loan pool for affordable housing development (Expand) A loan pool and gap financing for affordable housing projects that need additional financial support to be viable Increase supply of affordable rental/owner housing • Incentivize developers to build affordable housing Transitional (1-2 years) 13. Recalibrate existing incentives to reflect current market conditions (Expand) Existing incentives include fee waivers, fee deferral, height bonus, density bonus, reduced landscaping, priority processing. Alter incentives for affordable housing development so developers are motivated to use them based on market conditions Increase supply of affordable rental/owner housing • Incentivize developers to build affordable housing Quick(er) Win (<1 year) 14. Create additional development incentives for affordable housing (New) Increase incentives to develop affordable housing in the Land Use Code to increase affordable housing supply Increase supply of affordable rental/owner housing • Incentivize developers to build affordable housing Quick(er)win (<1 year) Greatest Challenge #4. Job growth continues to outpace housing growth Vision Alignment: The following strategies increase housing for all by removing barriers to development and increasing housing options. 15. Explore/address financing and other barriers to missing middle and innovative housing development (New) Collaborate with developers and financial institutions to understand barriers for missing middle projects, e.g., financing, code, materials, etc.; consider partnerships with developers and partners to address barriers and build support for diverse, innovative, and efficient housing options Diversify housing options / Increase housing choice • Incentivize developers to build affordable housing • Relax restrictions in the Land Use Code to make it easier for developers to build new homes • Seek out innovative ideas from the community and peer cities Transitional (1-2 years) Housing Strategic Plan | Draft Plan 35 Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline 16. Remove barriers to allowed densities through code revisions (New) Revisit or remove barriers in code that limit the number of multifamily units, have square footage requirements for secondary or non- residential buildings and height limitations restricting the ability to maximize compact sites using tuck-under parking Diversify housing options / Increase housing choice • Explore more housing types including tiny homes and cooperative housing • Build more duplexes and small multifamily units • Remove or relax regulations that limit creative reuse of existing homes • Relax restrictions in the Land Use Code to make it easier for developers to build new homes Transitional (1-2 years) Greatest Challenge #5. Housing is expensive to build, and the cost of building new housing will likely continue to increase over time. Vision Alignment: The following strategies primarily address the affordability components of the Vision 17. Reconsider affordable housing requirements/funding as part of metro districts (Expand) Consider requirement that Metropolitan Districts containing housing must provide affordable housing Increase supply of affordable rental/owner housing • Incentivize developers to build affordable housing Quick(er) win (<1 year) 18. Increase awareness & opportunities for creative collaboration across water districts and other regional partners around the challenges with water costs and housing (Expand) Fort Collins has multiple water providers and the cost of water is different in each district. This collaboration could result in more consistent water prices across districts. Improve affordability and housing diversity • Incentivize developers to build affordable housing Transitional (1-2 years) Greatest Challenge #6: It is difficult to predict the lasting effects of COVID-19 and the impacts of the pandemic. Note: Many strategies address the challenges that COVID has created or amplified, (e.g., Strategy 25 Foreclosure and eviction prevention and legal representation). However, those strategies were all primarily linked to other challenges. These linkages will be further described below in the narrative. Housing Strategic Plan | Draft Plan 36 Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline Greatest Challenge #7. Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent. Vision Alignment: The following strategies primarily address the health and stability components of the Vision 19. Bolster city land bank activity by allocating additional funding to the program (contingent on adopting additional revenue stream policy) (Expand) The Land Bank program sets aside land for affordable housing development. This would allow the City to purchase more land to add to the Land Bank. Increase supply of affordable rental/owner housing • Incentivize developers to build affordable housing Transformational (2+ years) 20. Explore the option of a mandated rental license/registry program for long-term rentals and pair with best practice rental regulations (New) Can result in landlord education (fair housing or other), standardized lease agreements in English and Spanish, application fee reasonableness requirements, a more defined path for conflict resolution, and health & safety rental inspections Improve renter protections, housing quality, housing stability and landlord access to information • Explore rental licensing to promote safe and healthy housing • Increase equity in existing programs and services Transformational (2+ years) 21. Explore revisions to occupancy limits and family definitions (Expand) Occupancy limits and narrow family definitions often create unintended constraints on housing choice and options, including cooperative housing opportunities for seniors, people with disabilities, and low income renters desiring to live with unrelated adults in a single family home setting, as well as non-traditional household arrangements. Diversify housing options / Increase housing choice • Remove or relax occupancy restrictions • Increase equity in existing programs and services Transitional (1-2 years) 22. Public Sector Right of First Refusal for Affordable Developments (New) Typically requires owners of affordable housing to notify the public sector of intent to sell or redevelop property and allow period of potential purchase by public sector or non- profit partner. Preserve current supply of affordable rental housing • Bolster nonprofits providing “housing-first” models of support • Focus financial support on lowest income residents Transitional (1-2 years) Housing Strategic Plan | Draft Plan 37 Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline 23. Tenant right of first refusal for cooperative ownership of multifamily or manufactured housing community (New) Laws that give tenants the right to purchase a rental unit or complex (including a manufactured housing community) before the owner puts it on the market or accepts an offer from another potential buyer. Increase stability and housing options for renters and manufactured housing residents and preservation of affordable housing • Explore opportunities for resident-owned manufactured housing communities • Explore more housing types including tiny homes and cooperative housing Transformational (2+ years) 24. Support community organizing efforts in manufactured home communities and increase access to resident rights information, housing resources, and housing programs (Expand) Continue and expand existing efforts to work with residents and nonprofit community partners to address the critical need for programs focused on manufactured housing livability and safety, reduction of the fear of retaliation for residents, preservation of these as an affordable housing option, and equitable access to City resources in historically underserved neighborhoods and populations. Increase stability and housing options for manufactured housing residents • Explore opportunities for resident-owned manufactured housing communities • Preserve manufactured housing communities • Increase equity in existing programs and services Quick(er) win (<1 year) 25. Foreclosure and eviction prevention and legal representation (Expand) Provides assistance with mortgage debt restructuring and mortgage and/or utilities payments to avoid foreclosure; short-term emergency rent and utilities assistance for renters. CARES Act funding is currently dedicated to a legal defense fund for renters but additional resources are needed. Increase stability for vulnerable renters and owners • Provide emergency gap funding to prevent eviction • Increase equity in existing programs and services Quick(er) win (<1 year) 26. Small Landlord Incentives (New) Incentivize small landlords to keep units affordable for a period of time in exchange for subsidized rehabilitation or tax or fee waivers. Aligns with Strategy 20 to explore rental registration and licensing. Increase affordable rentals, housing stability and preservation, and improve condition • Advocate for limits on rent prices and/or annual rent increases • Explore rental licensing to promote safe and healthy housing Transformational (2+ years) Housing Strategic Plan | Draft Plan 38 Initial Set of Prioritized Strategies12F13 Brief Description Outcome Community Recommendations Alignment (Draft)13F14 Timeline Aligning the Plan with Related Efforts Continue the City's ongoing efforts to implement recommendations from current housing-related studies and other City efforts. (LUC Audit, Fair Housing Analysis, Homeward 2020, 2015-2019 Affordable Housing Strategic Plan) (Continue) This work acknowledges that continuing the City’s existing efforts (as will be noted in the full plan chapter) is critical for achieving the City’s goals and achieving the vision. Diversify housing options, increase housing choice, increase equity, solutions to end homelessness, preservation of affordable housing • Focus financial support on lowest income residents • Bolster nonprofits providing supportive housing services • Preserve manufactured housing communities Bolster nonprofits providing “housing first” models of support Provide emergency gap funding to prevent eviction Ongoing and varies Continue to align housing work with other departmental plans and programs to leverage more funding resources and achieve citywide goals that advance the triple bottom line of economic, environmental, and social sustainability (could include citywide disparity study) (Continue) As housing impacts every aspect of the community, integrating this work across the triple bottom line to leverage funds, reduce redundancies, and align toward multiple city goals is critical to success. Citywide alignment • Build communitywide support for doing things differently • Seek out innovative ideas from the community and peer cities • Increase equity in existing programs and services Ongoing and varies Housing Strategic Plan | Draft Plan 39 DETAILED DESCRIPTION OF PRIORITIZED STRATEGIES Greatest Challenge 1: Price escalation impacts everyone, and disproportionately impacts BIPOC [Black, indigenous and People of Color] and low-income households. 1. Assess displacement and gentrification risk (New). City staff can use examples from other communities as a guide for building our own index for displacement and gentrification risk using readily available data (Census, American Community Survey, etc.). This information can help promote and target anti-displacement resources/programs, pair such resources with major capital investments, and guide community partnerships. Why Prioritized? Low-cost effort with targeted and meaningful impact; direct impact on equity and stability. Already identified as an Ad Hoc Committee Quick Win. Timeframe: Quicker Win (<1 year) Expected Outcome: Improve Housing Equity Lead Entity: County, City Impacted Players: Renters, Historically disadvantaged populations, Residents vulnerable to displacement Next Steps: Best practice review of approaches to identifying vulnerable neighborhoods; analysis and mapping; partner with the County’s Built Environment Group and their work to assess displacement Secondary Greatest Challenges: #6 2: Promote inclusivity, housing diversity, and affordability as community values (Expand). PR campaign and/or communications related to density, structural racism, need for affordable housing, myths about affordable housing, etc. Could also use "tactical urbanism" strategies as part of this effort. Why Prioritized? Best fundamental practice for fostering broad access to housing vision, contributing to an inclusive community culture, and addressing a common and significant barrier to the creation of affordable housing: “Not-In-My-Back-Yard" (NIMBYism). Can be high cost, but also a high impact strategy. Timeframe: Transformational (2+ years) Expected Outcome: Improve Housing Equity and Housing choice Lead Entity: Partners, Community, City Impacted Players: HOAs, Landlords, Builders/Developers, Financial Institutions, Special Districts and Government Entities, Manufactured Housing Neighborhoods, Homeowners, Renters, People Experiencing Homelessness, Historically disadvantaged populations, Residents vulnerable to displacement, other partners Next Steps: Coordinate with Communications department on approach; Evaluate funding needs and options Secondary Greatest Challenges: N/A 3: Implement the 2020 Analysis of Fair Housing Choice Action Steps (Expand). The Analysis of Fair Housing is a HUD-required document that analyzes fair housing (the intersection of civil rights and housing) challenges for protected class populations (e.g. race, individuals with disabilities) in Fort Collins. It outlines the following action steps: a. Strengthen distribution of fair housing information, educational and training opportunities. Timeframe: Transformational (2+ years) Expected Outcome: Improve Housing Equity and access to opportunity Lead Entity: Partners/Organizations Impacted Players: HOAs, Landlords, Builders/Developers, Financial Institutions, Special Districts and Government Entities, Manufactured Housing Neighborhoods, Homeowners, Renters, People Experiencing Homelessness, Historically disadvantaged Housing Strategic Plan | Draft Plan 40 b. Improve housing options for people with disabilities. c. Support residents’ efforts to establish and build credit. d. Support programs, projects, and organizations that improve housing access and affordability. e. Continue to pursue equity in public infrastructure and amenities. f. Use Home2Health public engagement activities to inform Land Use Code and policy updates. Why Prioritized? HUD requirement for receiving federal funds, direct and meaningful impact on addressing segregation and discrimination, as well as improving fair housing choice and increasing opportunity for BIPOC and people with disabilities. Low cost effort resulting in targeted and meaningful impact; direct impact on equity and stability. Already identified as an Ad Hoc Committee Quick Win. populations, Residents vulnerable to displacement, other partners Next Steps: See Action Step details in the Analysis of Fair Housing. Secondary Greatest Challenges: N/A Greatest Challenge 2: There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need. 4. Implementation, tracking, and assessment of housing strategies (Expand). Includes: • Regularly assess existing housing policies and programs to ensure they are effective, equitable, and aligned with vision. Begin with a comprehensive review of current programs/policies using the Government Alliance on Race & Equity Racial Equity Toolkit. All strategies proposed in this Housing Strategic Plan will also be evaluated through an equity and effectiveness lens. • Develop real-time, accessible, and performance- based data that evaluates the performance of these strategies and their progress toward the vision. This would include data for the entire housing spectrum, from people experiencing homeless to middle-income households. Why Prioritized? Best practice; essential for maintaining effectiveness, equity, and impact of housing programs/strategies; also fosters transparency in monitoring performance and progress toward citywide goal for affordable housing. Timeframe: Quicker Win (<1 year) Expected Outcome: Increase/monitor effectiveness of all strategies Lead Entity: Partners, City Impacted Players: HOAs, Landlords, Builders/Developers, Financial Institutions, Special Districts and Government Entities, Manufactured Housing Neighborhoods, Homeowners, Renters, People Experiencing Homelessness, Historically disadvantaged populations, Residents vulnerable to displacement, other partners Next Steps: Evaluate existing programs/policies for both equity and effectiveness; Create data dashboard to track housing production against affordability goal(s). Secondary Greatest Challenges: N/A Housing Strategic Plan | Draft Plan 41 5. Advocate for housing-related legislation at state and federal levels (Expand). Focus areas could include: monitor and support state level renter protection legislation (e.g., fee caps, eviction protections, etc.), advocate for additional state and federal funding sources (e.g. real estate transfer tax), and advocate for additional LIHTC funding and Qualified Allocation Plan (QAP). Also work with Larimer County on eviction protections and explore the option of pausing evictions in times of crisis (e.g., if/when state of emergency in declared). Consider a statewide coalition of local governments, similar to Colorado Communities for Climate Action (or CC4CA) that the City participates in for climate. Why Prioritized? Low cost approach to leveraging additional resources and strategies to achieve City’s goal/vision. Acknowledges regional nature of housing challenges and addresses by regional/state framework. Timeframe: Transitional (1-2 years) Expected Outcome: Varied (e.g., renter protections and funding options) Lead Entity: Partners, City Impacted Players: Special Districts and Government Entities, other partners Next Steps: Continue working with the City’s Legislative Review Committee and initiate conversations with other municipalities to assess how local governments can work together to advance common goals. Secondary Greatest Challenges: 1,7 6. Visitability policy (New). Require or incentivize developers to make a portion of developments "visitable," meeting design standards that allow easy visitation by mobility impaired residents (one zero step entrance, 32-inch doorways, and bathroom on the main floor that is wheelchair accessible). Visitable design has been shown to add no additional cost to developers; it can be incentivized using a variety of incentives similar to affordability incentives (e.g., fee waivers/deferrals, priority processing, density bonuses, variances, etc.). Why Prioritized? Low cost approach to leveraging additional resources and strategies to achieve City’s goal/vision. Acknowledges regional nature of housing challenges and addresses by regional/state framework. Timeframe: Transformational (2+ years) Expected Outcome: Improve Accessibility Lead Entity: City Impacted Players: Historically disadvantaged populations Next Steps: Evaluate appetite for mandate vs incentive; stakeholder outreach with development community; review similar policies in other communities and draft policy language for Fort Collins; partner with the County’s Built Environment Group to coordinate this effort with existing multimodal index. Secondary Greatest Challenges: N/A 7. Remove barriers to the development of Accessory Dwelling Units (Expand). Allow by right in all residential zone districts (in process per the 2020 LUC audit); reduced (or waived) tap fees and other development fees; consider development of a grant program for low and moderate income owners; evaluate feasibility of ADUs by lot to determine if there are overly burdensome standards related to lot coverage, setbacks, alley access, etc. and address those barriers as necessary. This is connected to strategy 9 to approve the off-cycle appropriation for phase one of the LUC audit. Timeframe: Transitional (1-2 years) Expected Outcome: Diversity Housing Options/Increase housing choice Lead Entity: Community, City Impacted Players: Homeowners Next Steps: Housing-related elements will be included in the off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit. An update to the City’s development fees is anticipated in 2021. Secondary Greatest Challenges: 1,4,5,7 Housing Strategic Plan | Draft Plan 42 Why Prioritized? Best practice for increase housing choice without adverse impact on community context. Already identified as priority in the 2020 LUC audit and implementation underway. 8. Extend the city’s affordability term (Expand). Affordability term is the time period in which affordable housing is income restricted, after which it can convert to market rate. The current affordability term for projects receiving City funding or incentives is 20 years; many cities use longer terms of 30 to 60 years. Why Prioritized? Current term is uncommonly short; extension would have meaningful impact on stability and preservation of future affordable housing stock. Already identified as an Ad Hoc Committee Quick Win. Timeframe: Quicker Win (<1 year) Expected Outcome: Diversity in Housing Options/Increase housing choice Lead Entity: Partners, City Impacted Players: Builders/Developers, Renters, Historically disadvantaged populations, Residents vulnerable to displacement Next Steps: Stakeholder outreach to affordable housing providers and multifamily developers to vet term options and applicability Secondary Greatest Challenges: 5 9. Off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit (New). Responds to the greatest challenges by addressing the entire housing spectrum with new tools and processes, including: a. Establishment of additional housing types; opportunity to increase overall supply b. Recalibration of existing incentives for affordable housing production; identification of new incentives c. Refines and simplifies development processes Beginning the LUC update is an important step to advancing several strategies including strategies 7,13,14 and 16 Why Prioritized? Brings LUC into compliance with best practice standards for current market trends and needs; expands housing choice and diversity; implements priorities already identified as part of LUC Audit and an Ad Hoc Committee quick win. Timeframe: Quicker Win (<1 year) to allocate resources; Transitional (1-2 years) to complete Phase 1 code changes Expected Outcome: Diversity in Housing Options/Increase housing choice Lead Entity: City Impacted Players: Builders/Developers, Special Districts and Government Entities, other partners Next Steps: Off-cycle appropriation Secondary Greatest Challenges: 1,3,4,5,7 Greatest Challenge 3: The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goals. 10. Refine local affordable housing goal (Expand). The City has already adopted a broad goal of 10% affordable at 80% AMI. Consider formal adoption of subgoals (e.g., 10% of rental units affordable to 60% AMI; 5% of owner units deed restricted and affordable to 100% AMI) to help set Timeframe: Quicker Win (<1 year) Expected Outcome: Improve targeting of housing investments Lead Entity: Partners, City Impacted Players: HOAs, Landlords, Builders/Developers, Financial Institutions, Housing Strategic Plan | Draft Plan 43 expectations for developers as they negotiate agreements with the City and establish more specific targets to monitor progress. Why Prioritized? Critical for aligning needs with quantified affordability target and ensuring meaningful impact of strategies. Special Districts and Government Entities, Manufactured Housing Neighborhoods, Homeowners, Renters, People Experiencing Homelessness, Historically disadvantaged populations, Residents vulnerable to displacement, other partners Next Steps: Convene staff and stakeholders to refine goal according to identified needs; Align prioritized strategies with sub-goal targets. Secondary Greatest Challenges: N/A 11. Create a new dedicated revenue stream to fund the Affordable Housing Fund through dedicated property or sales tax (Expand). Local funds can support a variety of affordable housing activities, have fewer restrictions and are easier to deploy than federal or state dollars. They can be earmarked for a specific income level (e.g., less than 30% AMI or used more broadly). Prioritized recommendations for revenue generation that can be implemented together or separately are: a. Dedicated sales or property tax; and/or b. Linkage (or impact) fees imposed on new commercial and/or residential development. Why Prioritized? High impact strategy and increasingly common among local jurisdictions in the midst of rising housing challenges and diminishing federal resources. Additional funding is necessary for the city to achieve affordability goal and implement select prioritized strategies. Timeframe: Transformational (2+ years) Expected Outcome: Increase supply affordable rental/owner housing Lead Entity: Partners, City Impacted Players: Builders/Developers, Financial Institutions, Special Districts and Government Entities, Homeowners, Renters, People Experiencing Homelessness, Historically disadvantaged populations, Residents vulnerable to displacement, other partners Next Steps: Propose linkage fee adoption (based on 2020 Feasibility study) to Council; Begin to evaluate opportunities for dedicated sales or property tax within the broader context of citywide needs, e.g., transit, parks operations and maintenance, etc. Secondary Greatest Challenges: N/A 12. Expand partnership(s) with local Community Development Financial Institution (CDFI) to offer gap financing and low-cost loan pool for affordable housing development (Expand). Partnership with a CDFI could include financial support through grants or low-cost debt, risk sharing through pooled loan loss reserve, or alignment of priorities around affordable development. Why Prioritized? Low cost effort with potential for high impact; capitalizes on existing partnerships to leverage common goals. Timeframe: Transitional (1-2 years) Lead Entity: Financial Institutions, City Expected Outcome: Increase supply affordable rental/owner housing Impacted Players: Financial Institutions Next Steps: Outreach to CDFIs (e.g., Impact Development Fund) to evaluate strategic opportunities. Secondary Greatest Challenges: N/A 13. Recalibrate existing incentives (fee waivers, fee deferral, height bonus, density bonus, reduced landscaping, priority processing) to reflect current market conditions (Expand). Conduct a detailed review Timeframe: Transitional (1-2 years) Expected Outcome: Increase supply affordable rental/owner housing Lead Entity: Partners, City Housing Strategic Plan | Draft Plan 44 of financial benefits of existing incentives relative to their requirements and evaluate applicability by income level and geography and recommend changes to increase effectiveness. This is connected to strategy 9 to approve the off-cycle appropriation for phase one of the LUC audit. Why Prioritized? High impact strategy, already identified as priority in LUC Audit and by Council Ad Hoc. Best practice for maintaining effectiveness of incentives, which must be regularly calibrated to market changes. Impacted Players: Builders/Developers Next Steps: Evaluate performance of existing incentives (through analysis and stakeholder outreach); conduct feasibility analysis; and propose changes based on results. Secondary Greatest Challenges: 2, 4 14. Create additional development incentives for affordable housing (New). Development incentives require a production of affordable rental or owner units. Most policies mandate between 10 and 30 percent as affordable units, depending on the market, and set affordability terms between 15 and 99 years. The city should evaluate and implement the following priority incentives: a. Expand density bonus program to apply in other zone districts (currently limited to LMN zone). Program would need to be calibrated for a variety of zones. b. Identify related building variances (e.g. setbacks, lot coverage, parking requirements, design standards, open space dedication) This is connected to strategy 9 to approve the off-cycle appropriation for phase one of the LUC audit. Why Prioritized? Current incentives are limited and additional incentives are critical for increasing production of affordable housing. High impact strategy with low cost to City as it leverages private sector investment to achieve goals; very common practice throughout Colorado (and other) communities. Already identified as an Ad Hoc Committee Quick Win. Timeframe: Quicker Win (<1 year) Expected Outcome: Increase supply affordable rental/owner housing Lead Entity: Partners, City Impacted Players: Builders/Developers Next Steps: Conduct feasibility analysis for density bonus expansion and calculate financial benefit of variance incentives; conduct stakeholder outreach with developers to vet proposals. Secondary Greatest Challenges: 2, 4 Greatest Challenge 4: Job growth continues to outpace housing growth. 15. Explore/address financing and other barriers to missing middle and innovative housing development (New). Collaborate with developers and financial institutions (CDFI, credit unions, and banks) to understand barriers for missing middle projects, e.g., financing, code, materials, etc.; consider partnerships with developers and partners to address barriers and build support for diverse, innovative, and efficient housing options. Timeframe: Transitional (1-2 years) Expected Outcome: Diversity housing options/ Increase housing choice Lead Entity: Builders/Developers, City Impacted Players: Builders/Developers, Financial Institutions, Other Community Partners Next Steps: Convene developer working group to assess barriers. Housing Strategic Plan | Draft Plan 45 Why Prioritized? Low cost strategy with potential to unlock production of diverse, relatively affordable housing options. Best practice approach to foster missing middle options. Secondary Greatest Challenges: 1, 2, 3, 7 16. Remove barriers to allowed densities through code revisions (New). As noted in the 2020 LUC Audit, barriers to fully realizing allowed densities include multifamily unit number maximums, square footage thresholds for secondary or non-residential buildings, and height limitations that restrict the ability to maximize compact sites using tuck-under parking. Such requirements should be recalibrated or removed entirely. This is connected to strategy 9 to approve the off-cycle appropriation for phase one of the LUC audit. Why Prioritized? Removes internal conflicts in land use code; already identified as priority in LUC audit. Timeframe: Transitional (1-2 years) Expected Outcome: Diversity in housing options/ Increase housing choice Lead Entity: Builders/Developers, City Impacted Players: Builders/Developers Next Steps: Housing-related elements will be included in the off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit Secondary Greatest Challenges: 1, 2, 3 Greatest Challenge 5: Housing is expensive to build, and the cost of building new housing will likely continue to increase over time. 17. Reconsider affordable housing requirements/funding as part of metro districts (Expand). The city is already working on a specific recommendation for this strategy. Why Prioritized? Low cost opportunity to integrate affordable housing requirements as part of related efforts; already prioritized by City and implementation underway. Timeframe: Quicker Win (<1 year) Expected Outcome: Increase supply affordable rental/owner housing Lead Entity: City Impacted Players: Builders/Developers, Special Districts and Government Entities Next Steps: Moratorium on Metro District applications expires January 31. Council will consider amendment to this policy in 2021. Secondary Greatest Challenges: 2, 4 18. Increase awareness & opportunities for creative collaboration across water districts and other regional partners around the challenges with water costs and housing (Expand). Why Prioritized? Water costs have a significant impact on housing development cost; addressing water cost challenges creates opportunity to improve affordability and product diversity. Acknowledges regional nature water impacts and seeks collaborative solutions; potential for direct impact on sustainability and affordability. Timeframe: Transitional (1-2 years) Expected Outcome: Improve affordability and housing diversity Lead Entity: Water Districts, City Utilities Impacted Players: Special Districts and Government Entities, other partners Next Steps: Study underway in 2021 to identify challenges and opportunities of multiple water providers in the GMA; consider opportunities to expand scope to broader region (e.g. Larimer County). Secondary Greatest Challenges: 2 19. Bolster city land bank activity by allocating additional funding to the program (contingent on adopting additional revenue stream policy) (Expand). Begin with inventory and feasibility of publicly owned land in city Timeframe: Transformational (2+ years) Expected Outcome: Increase/monitor effectiveness of all strategies Lead Entity: Partners, City Housing Strategic Plan | Draft Plan 46 limits and growth management area. Also consider underutilized commercial properties that could be used for affordable housing. Continue effective disposition of existing parcels to affordable housing developers and land trust partners. Why Prioritized? Leverages success of current program to increase its impact with additional resources allocation. High impact strategy that helps City reach affordability target. Impacted Players: Builders/Developers Next Steps: Identify funding potential; identify strategic parcels for acquisition. Secondary Greatest Challenges: 1, 3 Greatest Challenge 7: Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent. 20. Explore the option of a mandated rental license/registry program for long-term rentals and pair with best practice rental regulations (New). Having a rental registration or license program, in which landlords are required to either register or obtain a license from the city, makes it easier to implement and enforce a variety of renter protections, promote best practices to landlords, and identify problem landlords, as well as establish specific housing quality and performance standards. Specific efforts promoted through such programs include landlord education (Fair Housing or other), standardized lease agreements in English and Spanish, reasonable application fee requirements, a more defined path for conflict resolution, and health and safety rental inspections. Can include a modest fee to cover program cost, e.g., recent research suggests these fees range from approximately $0 to $110/unit, though fee frequency, determination, etc. varies by jurisdiction. This is connected to strategy 26 Small Landlord Incentives. Why Prioritized? Best practice, high impact, low cost strategy that lays critical groundwork for future efforts related to advancing vision and goal. Timeframe: Transformational (2+ years) Expected Outcome: Improve renter protections, housing quality, and landlord access to information Lead Entity: Landlords, Community, City Impacted Players: Landlords, Manufactured Housing Neighborhoods, Homeowners, Renters, People Experiencing Homelessness Historically disadvantaged populations, Residents vulnerable to displacement Next Steps: Form internal task force to review best practice research on program design; develop a proposal for policy and community engagement. Secondary Greatest Challenges: N/A 21. Explore revisions to occupancy limits and family definitions (Expand). Occupancy limits and narrow family definitions often create unintended constraints on housing choice and options, including cooperative housing opportunities for seniors and people with disabilities or low-income renters desiring to live with unrelated adults in a single family home setting. Occupancy limits can also pose fair housing liabilities to the extent that they have a disparate impact on people with disabilities. Current best practices allow up to 8 unrelated or base occupancy on building code requirements instead of family definitions. Timeframe: Transitional (1-2 years) Expected Outcome: Diversify housing options/increase housing choice Lead Entity: Community, City Impacted Players: Homeowners, Renters, People Experiencing Homelessness, Historically disadvantaged populations, Residents vulnerable to displacement Next Steps: Form an internal task force to develop a proposal for policy and community engagement. Housing Strategic Plan | Draft Plan 47 Occupancy limits do not always have a direct relationship to neighborhood livability, and there may be a better way to address livability concerns. Why Prioritized? Best practice, both in regard to increasing housing choice and avoiding fair housing violations (disparate impact claims). Secondary Greatest Challenges: 1,2,5,6 22. Public Sector Right of First Refusal for Affordable Developments (New). Typically requires owners of affordable housing to notify the public sector of intent to sell or redevelop property and allow period of potential purchase by public sector or non-profit partner. Why Prioritized? High impact preservation strategy; does not require substantial financial resources from the city if structured to defer rights to non-profits. Timeframe: Transitional (1-2 years) Expected Outcome: Stabilize current supply of affordable rental housing Lead Entity: Partners, City Impacted Players: Landlords, Builders/Developers, Special Districts and Government Entities, Residents vulnerable to displacement Next Steps: Review peer city policies; draft and institute requirement and monitoring process. Secondary Greatest Challenges: 1 23. Tenant right of first refusal for cooperative ownership of multifamily or manufactured housing community (New). Laws that give tenants the right to purchase a rental unit or complex (including a manufactured housing community) before the owner puts it on the market or accepts an offer from another potential buyer. Laws typically allow residents to assign their “right of first refusal” to other entities, such as nonprofit partners that help the residents form a limited equity cooperative, or affordable housing providers that agree to maintain the property as affordable rental housing for a set period of time. Note that this provision already exists for manufactured housing communities under the Colorado Mobile Home Park Residents Opportunity to Purchase (HB20-1201 passed in June 2020). Why Prioritized? Expands housing choice, leverages existing housing stock, and extends good policy (i.e., Mobile Home Park Residents Opportunity to Purchase) to additional contexts such as multifamily tenants. Timeframe: Transformational (2+ years) Expected Outcome: Increase stability and housing option for renters and manufactured housing residents Lead Entity: Residents, Partners Impacted Players: Manufactured Housing Neighborhoods, Renters, Residents vulnerable to displacement, other partners Next Steps: Review similar policies and consider policy options. Secondary Greatest Challenges: 1 24. Support community organizing efforts in manufactured home communities and increase access to resident rights information, housing resources, and housing programs (Expand). Continue and expand existing efforts to work with residents and nonprofit community partners to address the critical need for programs focused on manufactured housing livability and safety, reduction of Timeframe: Quicker Win (<1 year) Expected Outcome: Increase stability and housing option for renters and manufactured housing residents Lead Entity: Manufactured Housing Neighborhoods, City Housing Strategic Plan | Draft Plan 48 the fear of retaliation for residents, preservation of these as an affordable housing option, and equitable access to City resources in historically underserved neighborhoods and populations. Why Prioritized? Direct and significant impact to uniquely vulnerable communities; fosters health, stability, and equity; aligns with existing efforts and priorities related to manufactured home community stabilization. Impacted Players: HOA’s Landlords, Manufactured Housing Neighborhoods, Homeowners, Renters, Historically disadvantaged populations, Residents vulnerable to displacement Next Steps: Continue work with existing partners and evaluate options for additional funding/support. Secondary Greatest Challenges: 1 25. Foreclosure and eviction prevention and legal representation (Expand). Housing counseling generally takes the form of providing assistance with mortgage debt restructuring and mortgage and/or utilities payments to avoid foreclosure; short-term emergency rent and utilities assistance for renters. Cities often partner with local nonprofits experienced in foreclosure counseling. Landlord-tenant mediation is similar but generally conducted by local Legal Aid for more involved disputes between the landlord and tenant. CARES Act funding is currently dedicated to a legal defense fund for renters but additional resources are necessary to carry this strategy beyond the duration that CARES resources allow. Why Prioritized? High impact, best practice strategy; leverages success of existing program; addresses acute needs exacerbated by the ongoing COVID-19 pandemic (and related levels of unemployment). Already identified as Ad Hoc Committee priority. Timeframe: Quicker Win (<1 year) Expected Outcome: Increase stability for vulnerable renters and owners Lead Entity: Partners Impacted Players: Manufactured Housing Neighborhoods, Homeowners, Renters, People Experiencing Homelessness Historically disadvantaged populations, Residents vulnerable to displacement, other partners Next Steps: Allocate additional funding to Legal Defense Fund. Secondary Greatest Challenges: 1, 6 26. Small landlord incentives (New). Public sector incentives that encourage small landlords to keep units affordable for a period of time in exchange for subsidized rehabilitation or tax or fee waivers. Requires identification of properties through rental registration. Could also be applied to current vacation rentals for conversion to longer term permanent rentals. This is connected to strategy 20 Renter Regulations and/or Registry. Why Prioritized? Potential for high impact on preservation and condition; extends incentives to existing housing stock (as opposed to just new development), unlocking additional affordable potential. Timeframe: Transformational (2+ years) Expected Outcome: Increases affordable rental housing (converts naturally occurring affordable into income restricted affordable) and improves condition. Lead Entity: Landlords, City Impacted Players: Landlords, Renters, Residents vulnerable to displacement Next Steps: Research similar policies and evaluate feasibility of incentive options (subsidies, fee waiver, etc.). Note: Requires implementation rental registration strategy (to identify landlords) Secondary Greatest Challenges: 2 Housing Strategic Plan | Draft Plan 49 Recognizing That There Continue to Be Additional Ongoing Efforts, The Plan Is Also Aligned to The Following Related Efforts: Continue the City's ongoing efforts to implement recommendations from current housing-related studies and other City efforts: a. 2020 Land Use Code Audit Recommendations b. 2020 Analysis of Fair Housing Choice Action Steps c. Homeward 2020 d. 2015-2019 Affordable Housing Strategic Plan This includes continuing to prioritize direct funding to the lowest-income residents. This also includes strategies from the prior housing plan to: Increase the inventory of affordable rental units; preserve the long-term affordability and physical condition of existing affordable housing; Increase housing and associated supportive services for people with special needs; and Support opportunities to obtain and sustain affordable homeownership. Why Prioritized? High priority actions led by housing providers and others continue to be needed to drive forward the 10% affordable housing goal Continue to align housing work with prior Affordable Housing Strategic Plan and other departmental plans and programs to leverage more funding resources and achieve citywide goals that advance the triple bottom line of economic, environmental, and social sustainability (could include citywide disparity study). Why Prioritized? Aligns with the City’s commitment to the triple bottom line and centering this work in equity Housing Strategic Plan | Draft Plan 50 IMPLEMENTATION Housing and shelter are fundamental community needs. This plan recognizes that achieving the vision of “Everyone has healthy, stable housing they can afford,” requires contributions from the entire community. This work also acknowledges that no single community in the United States has solved this issue; therefore, we will need to be in a continual testing mode to assess which strategies can work, pilot them where appropriate, and then bring the viable solutions to scale. Adapting to changing conditions – both within the broader market and the community – will be critical as we proceed in the decades it will take to reach the vision. Based on these assumptions and this plan’s commitment to being centered in equity, the following framework is offered as a starting point for how to lead this work into the future: • Immediate next steps as we transition from planning to implementation in 2021; • A biannual lifecycle for assessing progress, revisiting priorities, checking in with the community and with City leadership; and • Guiding principles for future decision making The following sections describe each of these elements in more detail. IMMEDIATE NEXT STEPS IN 2021 The final step in the planning process is just the beginning of the work to ensure that everyone has stable, healthy housing they can afford. Implementation is when community, Council and staff will transition from “what” to “how” we achieve this vision. The following elements are key next steps: • Community Summit (Spring): To support moving from the plan to implementation, staff is working with Home2Health partners to design a community summit that will focus on mapping out implementation of the prioritized strategies in the Plan. More details on this summit will be available at www.fcgov.com/housing. • Implementation Plan Development (Spring/Summer): With the community summit complete, staff and community partners will develop specific implementation plans. These plans will include metrics and indicators to evaluate progress; an explanation of how projects will ensure accountability and embed equity for all, leading with race; and clarification about specific roles required to implement the prioritized strategies. o To align with Strategy 10 to Refine the Affordable Housing Goal, the implementation plan will include more specific subgoals to achieve the vision. • Council Work Session (Summer 2021): After the Community Summit, staff will present the outcome of the Summit and a roadmap for implementation and ongoing tracking to City Council in a Work Session. As noted on page 10, centering this work in equity includes both process and outcomes: Equity in process: Ensuring everyone has meaningful opportunities to engage and provide input into the Housing Strategic Plan process. Equity in outcomes: Everyone has healthy, stable housing they can afford. Housing Strategic Plan | Draft Plan 51 As noted above, implementation plans will be finalized this summer with specific metrics and indicators for success. Though additional indicators may be identified for specific projects, the indicators below should be used to guide the development of all implementation plans. These indicators specifically address equity in process and outcomes and are intended to ensure continued transparency and accountability as strategies are implemented. Indicator Area Indicator Equitable Process • Evaluate engagement in ongoing programs, processes, and services by income and race • Allocate resources in project budgets to achieve equity in process, e.g., language justice and compensation for community members’ time and expertise • Consistently provide language justice and access to interpreters/translators at City events and in materials and programs, especially in Spanish and consider other languages • Consistently provide childcare and other resources to remove engagement barriers for all community members • Develop and apply a consistent approach to embedding equity in implementation Equitable Outcomes • Affordable housing inventory • Fort Collins' Housing Opportunity Index (HOI) compared to western states region HOI • Housing stock in comparison to income levels (will be refined with the subgoal development addressed in Strategy 10) • Homeownership rates, disaggregated by race and income • Accessible units • Distribution of affordable housing throughout the city • Percentage of cost-burdened homes (renters and owners) • Jobs/housing balance • Long-term homeless exits and entries • Level of funding dedicated to affordable housing BIANNUAL PLANNING LIFECYCLE As noted above, this work will be ongoing for decades. The steps below illustrate how the City will assess progress and move forward to implementation on a biannual basis. 1. Assess Progress: Work with community members, including community partners, stakeholders, and historically underrepresented groups, to measure progress against established metrics. What is working? What could be improved? What did not work? Who benefitted and who was burdened? 2. Revisit Priorities: As noted above, the housing market and system will always be evolving, and community priorities should evolve with these changes. Based on iterative assessment, revisit the full strategy list. Ask if new strategies should be considered. With community partners and stakeholders, apply the guiding principles to consider annual priorities and work plans. Housing Strategic Plan | Draft Plan 52 3. Confirm Priorities: Create space for community members and City leadership to confirm priorities and assess if others should be considered. Note tensions and opportunities as they arise, especially from groups impacted by strategies, that should be considered in implementation. 4. Annual Design Summit: Continue efforts to partner with community members to co-create annual work plans with community partners, stakeholders, and City staff. Create new metrics to assess progress, as applicable, for new priorities. Note that these steps should be viewed as a starting point for checking in every two years – they will evolve over time as the City and community increase their experience in equity-centered planning and implementation. GUIDING PRINCIPLES To support this work moving toward implementation, the plan includes a set of guiding principles to document how decisions will be made moving forward. They will support future strategy selection and overall prioritization to determine annual work planning. While the strategies may be updated or changed on an annual basis, the guiding principles will continue throughout the lifecycle of this plan. Why have guiding principles? Guiding principles recognize that the prioritization of strategies will continue to evolve as different strategies are tested, evaluated, and adapted. In addition, new strategies will arise and ideas we initially prioritize may not have the intended impact upon further analysis. Finally, Fort Collins’ work on housing is bigger than one person, one entity, or any one project, and transparently documenting how decisions will be made going forward is critical for ongoing accountability. When will the guiding principles be applied? These principles will largely be a tool for overall prioritization of strategies in any given year. While individual strategies will continue to be assessed against the evaluation criteria, the guiding principles will support a holistic approach to evaluating overall priorities for the housing system. How will the guiding principles be applied? In the biannual planning lifecycle, principles will be applied with the community, and reviewed by decision makers, to establish the priorities at each design summit. Housing Strategic Plan | Draft Plan 53 Draft Guiding Principles for the Housing Strategic Plan: Guiding Principles What the Principle Means Center the work in people • One outcome, targeted strategies – achieving the vision that “Everyone has healthy, stable housing they can afford,” will require a suite of strategies that target different income levels, geographies, and identities; the portfolio should reflect the entire system of impacted players • Value in both content & context experts – strategies should be prioritized from technical and lived experiences. Both forms of expertise should contribute to prioritization. Be Agile and Adaptive • Priorities should be reviewed annually for progress and overall work planning • Priorities and strategies must be specific enough to generate real solutions and flexible enough to address the changing landscape of the community Balance rapid decision making with inclusive communication and engagement • Be clear that the work requires action while also prioritizing time and space for all community members, especially those impacted by the decisions, to engage with and influence the outcome Build on existing plans and policies – and their engagement • Review adopted plans and policies for informing policy priorities • Also review the feedback community members have already shared on a topic before asking again – respect their time and prior engagement • Identify opportunities to complement and amplify existing goals, priorities, and where strategies can advance the triple bottom line Expect and label tensions, opportunities, and tradeoffs • Recognize and name where limited resources impacted decision making, where stakeholders are impacted differently and had different perspectives, and the tradeoffs in moving forward with a given solution Focus direct investment on the lowest income levels • Limited financial resources must be targeted for housing the lowest income households. Policy should be used all along the continuum to stimulate a wide range of housing choice for residents at all ages, income levels and life stages. • Exceptions can include when an innovative technique or strategy is being applied at higher AMI levels but generally should not exceed 120% AMI Commit to transparency in decision making • Be clear regarding how the decision maker came to their conclusions and what was/was not considered. Make decisions for impact, empowerment, and systems (not ease of implementation) • Strategies should be prioritized for outcomes, not necessarily ease of implementation. However, where high impact and ease of implementation overlap, swift action should be taken to move these efforts forward. • Strategies that advance multiple priorities and the triple bottom line should be prioritized • Assess the entire portfolio of prioritized strategies for a mix of quick wins versus longer-term transformational solutions that may require more dialogue and investment to implement Social Sustainability 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6758 MEMORANDUM DATE: December 11, 2020 TO: Mayor and City Council THRU: Darin Atteberry, City Manager Affordable Housing Executive Team1 FROM: Lindsay Ex, Interim Housing Manager Meaghan Overton, Senior City Planner RE: December 8, 2020 Work Session Summary: Housing Strategic Plan Update The purpose of this item was to provide a Housing Strategic Plan update, including a summary of fall community engagement, strategy identification, draft evaluation criteria, and consideration of an off-cycle appropriation to initiate the first phase of updating the City’s Land Use Code. All Councilmembers were present virtually and offered the following feedback: Community engagement x Appreciation for engagement process, initial findings, number of residents engaged, and staff efforts to reach out to historically underrepresented groups, especially in the context of the ongoing pandemic. x Encouragement also to engage proactively with neighborhood groups and homeowner’s associations as strategies are prioritized, including Land Use Code changes. Strategy Identification x Support for the approach to strategy identification and breadth of strategies considered x Interest in prioritizing strategies x Recognition that multiple strategies and levers will need to be pulled to make progress – there is not a single solution that will achieve the vision x Identification of a need to consider solutions that incorporate all kinds of neighborhoods, with and without formal Homeowners’ Association (HOA) structures. x Desire in both strategies and prioritization to think about how we respond to the present while also “future proofing” to stay agile over time Evaluation Criteria x Desire to look at both near-term actions and transformational changes x Support for evaluation criteria approach Off-Cycle Appropriation to Advance the First Phase of the Land Use Code (LUC) Audit, with an emphasis on housing-related updates x Overall support for bringing the off-cycle appropriation forward in Q1 of 2021; x Aligns with how ad hoc committee has been focusing on near term actions. 1 Jackie Kozak Thiel, Chief Sustainability Officer; Theresa Connor, Utilities Executive Director; Caryn Champine, Planning, Development, and Transportation (PDT) Director; Julie Brewen, Housing Catalyst Executive Director; Dave Lenz, Finance Planning and Analysis Director; Beth Sowder, Social Sustainability Director      ATTACHMENT 2 2 x Desire to respond to current needs, identify what and where affordable housing incentives can be expanded or improved, modernize code, and create a flexible approach to future development, e.g., energy-efficient and innovative building techniques, aligning housing strategies with transportation needs, etc. x Councilmembers expressed interest in a more detailed scope of work; this scope will be provided in the materials for the January 26 Work Session and will include what this first phase of LUC changes will achieve as well as a proposed date for First Reading of an appropriation ordinance. Overall Feedback – Continue Planning and Doing at the Same Time: x Support to continue the plan and taking action at the same time, and recognition of the importance for the plan to include prioritized action steps. The housing needs in our community are urgent and require both planning for the future and strategic action now. x Recognition of the action Council has already taken to achieve their priority of Affordable Achievable Housing strategies, including the following: o Supported preservation of manufactured home communities (MHC) by establishing a specific MHC zone district; o Increasing residents’ rights in MHC; o Improving the fee credit process for affordable housing projects; o Evaluating the City’s metro district policy, which includes a component on affordable housing; and o Establishing a legal defense fund via CARES-CVRF resources to support residents at-risk of eviction. x Additional quick wins, as identified, may be brought forward at the January Work Session. Next Steps x Staff will host a series of strategy evaluation workshops in December and January. x A public draft of the Housing Strategic Plan will be published January 7, with a public comment period January 7-21, 2021. x At the January 26 Work Session, staff will share the outcomes of initial strategy prioritization, draft plan indicators & guiding principles, finalized scope for LUC updates, and additional quick(er) wins as identified by the Ad Hoc Committee. x Council will consider adopting the Housing Strategic Plan on February 16 (first reading).      January 1, 2021 HOUSING STRATEGIC PLAN FALL 2020 ENGAGEMENT REPORT Prepared by Cactus Consulting, LLC in partnership with the Home2Health team Executive Summary The City is updating the Housing Strategic Plan. This plan sets housing goals and guides City decisions on policy and funding for the housing system. While previous plans have focused on income-qualified Affordable Housing, this update to the Housing Strategic Plan will address the entire spectrum of housing needs in our community. The draft vision – Everyone has stable, healthy housing they can afford – reflects this shift. In October and November of 2020, nearly 450 community members took the time to share their experiences, provide feedback, and brainstorm solutions to the housing challenges in Fort Collins. This report sums up this early community feedback. Participants highlighted five priorities—Stability, Equity, Choice, Collaboration, and Creativity. Within each priority are suggested strategies for the City, nonprofits, developers, and community members. The report ends with next steps, including important community conversations around density and home ownership and recommendations from the community on how to evaluate strategies and center equity in decision-making. The Process In preparation for updating the Housing Strategic Plan, the City of Fort Collins reviewed local housing data and community feedback gathered through the Home2Health project. As a result, the City identified six key challenges related to housing: 1. Price escalation impacts everyone, and disproportionately impacts BIPOC [Black, Indigenous and People of Color] and low-income households. 2. There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need. 3. The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goals. 4. Housing is expensive to build, and the cost of building new housing will likely continue to increase over time. 5. It is difficult to predict the lasting effects of COVID-19 and the impacts of the pandemic. 6. Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent. These challenges were later updated and expanded to include a specific mention of the imbalance between job growth and housing growth. The updated list of challenges is available in the Housing Strategic Plan. ATTACHMENT 3 2 The Housing Strategic Plan team designed safe and accessible engagement opportunities to gather feedback on the challenges and ideas for overcoming them. This included Community Guide discussions, in-person (distanced and masked) focus groups, virtual workshops, and an “At-Your-Own Pace” online survey. The goals for engagement were: 1) To provide safe, flexible opportunities for all community members to participate. 2) To close persistent engagement gaps, including under-engagement of Spanish-speaking residents, renters, and residents who make less than $50,000/year. To this end, workshops and surveys, which traditionally result in more responses from women, older adults, and higher income households, were combined with outreach to specific stakeholders and community groups. The City partnered with the Mi Voz community group to discuss housing with 38 Spanish-speaking residents, many of whom reside in mobile home parks. The Partnership for Age-Friendly Communities hosted conversations with older adults and mobile home park residents. The Center for Public Deliberation hosted conversations that targeted residents under 30, and those making less than the median income. Additional engagement with neighborhood groups, including homeowners’ associations, was identified as an opportunity for growth in future engagement opportunities in this plan. Overall, staff and community partners facilitated 37 different engagement opportunities. This included four events facilitated by the Partnership for Age-Friendly Communities (PAFC) and eight by the Center for Public Deliberation (CPD). Through these approaches, the City was able to gather feedback from around 450 participants in October and November of 2020. Demographic data was not analyzed because it was optional and may not provide a full picture of participation. Participants were asked six questions related to current housing challenges in Fort Collins, the housing vision, and their ideas for achieving it. The six questions were: 1. Based on your experience, do these challenges reflect what you know about housing in Fort Collins? 2. How do these challenges affect you and our community more broadly? 3. What needs to change to address these challenges? 4. Who has the ability to make the change needed? 5. What do you wish decision makers understood about your experience with housing? 3 6. How would you like to engage in this project in the future? Though the responses to these questions provided rich information on community experiences and ideas related to housing, it is important to note that this report is also built on the shoulders of many engagement efforts conducted over the past two years, including City Plan, Our Climate Future, and the Home2Health project. Community members have consistently talked about the importance of affordable housing to a healthy environment, an equitable community, and to the physical and mental health of individuals. Prior to analyzing responses from this year’s engagement efforts, we revisited the findings, and data from recent surveys and analysis (including the Social Sustainability Gaps Analysis and the Larimer County Community Health Survey) to ground our work. The following community priorities reflect the collective engagement of hundreds of community members who shared their time, energy, and experiences. Community Priorities Community members generally felt that the housing challenges reflected the experience of housing in Fort Collins. Some shared personal stories of their struggle to afford healthy, stable housing. As one person shared, While organizations like the City may express goals in number of affordable housing units available or number of dollars allocated to emergency rent relief, community members described their goals for housing in very different ways—in the ability to feel secure in their homes, in the ability to choose a home with the amenities that they want and need, and in the ability to rely on their community to work towards a better future for all. Participants suggested a variety of strategies to overcome housing challenges and help everyone in Fort Collins have healthy, stable housing they can afford. These strategies are grouped into five priority areas: 1. Stability. The cost of housing is a major source of stress and instability for many households. People want options for stable rentals and home ownership. 2. Equity. Folks want a diverse community where equity guides how we fund, build, and manage housing. 3. Choice. People recognized that different households have different housing needs. They prioritized having options for the types of housing they rent or buy. This calls for increasing the total supply of housing, revamping the housing we have, and improving access to amenities like public transportation and parks. 4. Collaboration. Housing is a complex problem, and no one organization can do it alone. Community members want the City to take the lead, but also want the community and local organizations to step up and be part of the solution. 5. Creativity. People want new and innovative solutions. They want the City and the community to be willing to do things differently. 4 It is important to note that the community priorities are not listed in order of importance to the community, and many of the strategies and recommendations overlap. Stability The cost of housing is a major source of stress and instability for many households. People want options for stable rentals and home ownership. Community Recommendations: Advocate for limits on rent prices and/or annual rent increases ⧫ Explore rental licensing to promote safe and healthy housing ⧫ Preserve manufactured housing communities ⧫ Explore opportunities for resident-owned manufactured housing communities ⧫ Explore opportunities to limit fees associated with housing ⧫ Bolster nonprofits providing “housing first” models of support ⧫ Provide emergency gap funding to prevent eviction What we heard: The cost of housing was described as a major source of stress and instability for households in Fort Collins. People recognized that easing the cost burden of housing could have a transformational impact on an individual’s mental and physical health, among other things, and praised nonprofit organizations pursuing a “housing first” model in the community. They stressed the importance of gap funding for emergency rent relief to prevent eviction and displacement. Participants expressed frustration that landlords could set and increase prices without any oversight, and suggested regulations at the state or local level that would limit maximum rent prices, reduce extra fees, and/or limit maximum annual increases. Many also recognized that low wages were a barrier to affordability and called on employers to increase wages. People also shared negative experiences with landlords who did not maintain their homes. Some were afraid that asking landlords to maintain homes would invite retaliation or lead to rent increases, putting their housing at risk. A rental registration or licensing program was suggested to put housing protections in place and ensure housing is safe and healthy. Residents of manufactured housing communities discussed the need for park preservation, and the desire to work towards more resident control and ownership of communities. Many owners of manufactured housing discussed struggling with costs despite owning their home because of perpetual increases in lot rent, costly utility bills, and frequent fees. Similarly, some participants expressed concern about the monthly fees from HOAs, condominium associations, and metro districts inflating the cost of home ownership. Guidance for the Housing Strategic Plan: These comments align with community feedback from the Larimer County Community Health Survey and the Home2Health project regarding the central role of housing stability for individual and community well-being. Though many responses suggested home ownership as the preferred source of stability, some community members defined stability in a different way. The Housing Strategic Plan 5 should discuss how each strategy could create pathways to stability for residents, whether that be long-term, stable rentals, cooperative housing, or home ownership. Equity Folks want a diverse community where equity guides how we fund, build, and manage housing. Community Recommendations: Focus financial support on lowest income residents ⧫ Increase equity in existing programs and services ⧫ Bolster nonprofits providing supportive housing services ⧫ Combat stigmas associated with affordable housing ⧫ Consult with BIPOC and low-income households on housing policy and programs What we heard: Though community members discussed and defined equity in different ways, most emphasized the importance of focusing efforts on those who are most affected by the current housing challenges, including BIPOC households, low-income households, people with disabilities, and seniors. While some participants were concerned that specifically discussing challenges for BIPOC households was outside the scope of this plan, most comments expressed a need for more inclusive programs and practices to combat ongoing discrimination and historic inequalities. In general, folks recognized that current funding levels were not adequate to meet the housing needs in our community, and discussed the importance of balancing the very immediate need to keep people’s housing stable with the longer-term need to fund the housing options people want and need in our community. In general, community members prioritized “gap funds” to help households make ends meet and subsidized housing for low-income households over financial assistance to middle-income earners. People discussed the importance of creating specialized support systems so folks can find and keep homes. Participants praised the hard work of nonprofits in this arena and expressed support for bolstering funding and expanding services to meet the needs of seniors, seniors raising grandchildren, immigrant and refugee families, and people who were previously incarcerated. Participants discussed the importance of continuing to consult with BIPOC and low-income households as decisions about housing are being made. As one person stated, Finally, a few community members shared personal experiences of feeling unwelcome in the community because of race, ethnicity, and/or income status. As one participant shared, 6 Community conversations may be needed to break stigmas around affordable housing and promote equity and inclusion in Fort Collins’ neighborhoods. Guidance for the Housing Strategic Plan: These comments align with previous feedback from the Home2Health project and the Social Sustainability Gaps Analysis on the disproportionate impact of housing challenges on BIPOC and low-income households. The Housing Strategic Plan should consider how their decisions can support equitable outcomes (going beyond the traditional focus on equitable opportunities). In addition, the Housing Strategic Plan should include clear opportunities for consultation with BIPOC and low-income households and community conversations around equity in housing. Choice People recognized that different households have different housing needs. They prioritized having options for the types of housing they rent or buy. This calls both for increasing the total supply of housing, and changing the types of housing we are creating. Community Recommendations: Remove or relax occupancy restrictions ⧫ Explore new housing types, including tiny homes and cooperative housing ⧫ Build more duplexes and small multifamily units ⧫ Ensure all neighborhoods have access to amenities ⧫ Remove or relax regulations that limit creative reuse of existing homes. What we heard: Many community members expressed frustration with the lack of housing choices currently available, especially for low- and middle-income earners. As one participant shared, People called for building more housing and revamping the housing Fort Collins has to offer. Community members emphasized the need to build new housing options that people can afford on a typical salary, rather than “luxury” homes or apartments. Some also expressed a desire for options that go beyond the “traditional” large single-family home, including more duplexes, small multi-family developments, and tiny houses. Community members highlighted that the goal should be to increase options—not to expect that every low-income household should live in an apartment building. People stressed the importance of being able to access the amenities that were important to them. Some mentioned the value of having access to a personal yard or garden. Many advocated for improved community amenities in all neighborhoods, including parks, open space, and public transportation. Many participants also saw zoning and occupancy restrictions as a significant barrier to having enough housing, and to having housing that is affordable for all residents. Many supported repealing or modifying “U+2”, which limits the number of unrelated people who can live in a house. This was seen as a potential benefit 7 for people of all ages living on single incomes, and an opportunity to “free up” additional homes for rental or purchase. Some participants acknowledged concerns around noise or parking that can come with higher occupancy levels, but many felt that the rule was unfairly limiting the housing choices of the larger community to prevent problems caused by a small group. Community members also suggested relaxing some restrictions in the Land Use Code to make it easier for homeowners and developers to renovate homes and set up living arrangements that work for modern households. Ideas included making it easier to add Accessory Dwelling Units (carriage houses, in-law apartments, etc.), convert single-family houses into duplexes, and set up cooperative housing. In addition to increasing available housing units, duplexes and Accessory Dwelling Units in particular were seen as a benefit for extended families who could pool resources to purchase a home, and adults for caring for aging parents. Finally, there was a perception among participants that “investment buyers” were unfairly driving up prices and reducing opportunities for home ownership by buying homes to rent out. As one participant shared, Community members expressed frustration that first-time homebuyers were “competing” with purchasers looking for a source of income rather than a place to call home. Some community members suggested limiting the ability of investors to purchase homes, though there was recognition that this would pose a serious challenge. Additional conversations will be necessary to understand the impact of investment buying on the community and discuss opportunities to support first-time homebuyers. Guidance for the Housing Strategic Plan: These comments align with previous feedback from City Plan engagement on relaxing occupancy ordinances and Land Use Code restrictions to allow for more housing choices. The Housing Strategic Plan should discuss how each strategy can increase the housing choices available in our community. In addition, continued conversations are needed on the right balance between encouraging homeownership and providing enough rental options. Collaboration Folks recognized that a challenge like housing requires community-wide action. Many of the ideas for addressing housing challenges would require changes to local or statewide policies. However, responses also highlighted the importance of bringing in nonprofits, developers, and local employers. Community Recommendations: Incentivize developers to build affordable housing ⧫ Relax restrictions in the Land Use Code to make it easier for developers to build new homes ⧫ Collaborate with large employers on housing ⧫ Partner with nonprofits to provide specialized support ⧫ Build community-wide support for doing things differently 8 What we heard: Though many of the recommendations were City policies or programs, community feedback highlighted the importance of collaboration to reaching Fort Collins’ vision for housing. People shared strategies that would encourage developers to build more affordable, diverse types of housing, including waiving fees or providing other financial incentives, and relaxing requirements in the Land Use Code on density (or the number of houses in an area), building height, and parking. Some also suggested placing requirements on builders and developers to provide some affordable housing in all new developers. There was some support for City-led development of subsidized housing or “tiny home” sites, but largely folks did not see the City as a major supplier or manager of affordable housing. People recognized the work of nonprofits to provide housing and supportive services to vulnerable populations, and called for increased collaboration and support for these existing programs. Some also called on local employers to take a larger role in housing policy and provision. In addition to calling for higher wages, folks suggested that large employers should take a greater responsibility for helping their employees find healthy, stable housing. One suggestion was for the City to incentivize employers who provide housing or housing stipends to their employees. Finally, people recognized the need for public awareness and education to build community-wide support for doing things differently. Community members want increased public awareness around the true size, scope, and impact of housing challenges on our community. Some expressed concern that current homeowners may resist changes that they see as a threat to their wealth and livelihood (for example, allowing more homes and occupants in their neighborhood). Guidance for the Housing Strategic Plan: These comments align with past feedback from City Plan, Our Climate Future, Home2Health, and the Larimer County Community Health Survey on the importance of recognizing and leveraging the connections between housing and other important community priorities. Continued collaboration and dialogue will be essential to understanding the needs and the true community costs and benefits of any potential actions. The Housing Strategic Plan should discuss opportunities to leverage the skills and resources of our entire community, including community members, nonprofits, developers, and local employers. Creativity People want new and innovative solutions. They want the City and the community to be willing to do things differently. Recommendations: Explore opportunities for creative reuse of buildings ⧫ Seek out innovative ideas from the community and peer cities What we heard: Fort Collins is a city known for innovation. Community members highlighted that they valued the spirit of innovation and creativity in the City’s approach to housing. Though many recognized that the largest and most impactful solutions were likely to be more traditional strategies—things like changing the Land Use Code and offering incentives to developers—people also wanted to see new and creative ways to provide housing. Some 9 suggestions included turning hotels into group homes and instituting “housing swaps” between older individuals looking to downsize and live in more accessible homes and younger people looking for more space. The City should continue to seek out innovative ideas from within the community, and from peer cities moving forward. Guidance for the Housing Strategic Plan: Though it can be difficult to commit resources and times to ideas that may end up being less impactful, the Housing Strategic Plan should discuss ways to pilot creative strategies for ensuring healthy, stable, affordable housing. Next Steps Community feedback identified five priorities for housing as the City adopts its new Housing Strategic Plan—Stability, Equity, Choice, Collaboration, and Creativity—along with a number of exciting and creative strategies that the City could use along the way. These community priorities and ideas have provided a starting point for the Housing Strategic Plan’s efforts. The following section outlines two important next steps. Evaluate housing strategies with community priorities in mind The community has highlighted priorities for housing that build on prior feedback from the Home2Health project, City Plan, Our Climate Future, and more. As the City evaluates strategies, the following questions could help ensure that these community priorities are centered in decision-making: 1. Does this strategy increase the housing choices available for the community, particularly for vulnerable or traditionally under-resourced groups? 2. Does this strategy increase opportunities for housing stability for renters and homeowners? 3. Does this strategy leverage the resources and skills of our whole community? Incorporating these questions and centering community recommendations in any Housing Strategic Plan documents and decisions will be vital to achieving our housing vision. Facilitate community conversations on “sticky” issues People recognized that changes in housing policy and programs have community-wide impact and require community-wide action. As one participant shared, 10 Honest conversations about what is needed to achieve the vision—Everyone has healthy, stable housing they can afford—will be vital to identifying the best path forward. Below, a few important topics are highlighted. Understanding and de-stigmatizing affordable housing Participants recognized that there are many misconceptions and fears around affordable housing. More conversations are needed to understand what affordable housing looks like in our community, and to promote acceptance and understanding between all people—no matter their income level or whether they rent or own their home. Balancing Density and Occupancy Many recognized that removing U+2 and/or increasing density in neighborhoods may be a challenging transition and could be unpopular with some homeowners. Some participants acknowledged concerns around noise or parking that can come with higher occupancy levels, but many felt that the rule was unfairly limiting the housing choices of the larger community to prevent problems caused by a small group. More conversations are needed to identify the root causes of occupancy concerns, and discuss potential alternatives. Balancing Options for Renting and Home Ownership There was a perception among participants that “investment buyers” were unfairly driving up prices and reducing opportunities for home ownership by buying homes to rent out. More data is still needed on the impact of investment buying in Fort Collins, and the right balance between promoting home ownership and supporting quality rental supply. Understanding the housing goals of the community, including what percentage prefer renting over home ownership, and the types of rentals and for-sale units that people would select, could help the City to better understand challenges and opportunities related to investment buying. Ultimately, additional conversations could reduce the perception of competition between renters and homeowners for housing. Conclusion The Fort Collins vision for housing – everyone has healthy, stable housing they can afford -– is not currently a reality for everyone. Realizing this vision and overcoming the complex challenges of our housing system will require big, community-wide solutions. Overall, these responses suggest that the community is ready to do things differently. Centering both the five community priorities—Stability, Equity, Choice, Collaboration, and Creativity—and the ideas and feedback of low-income and BIPOC households will be essential to the continued efforts of the Housing Strategic Plan. Phase 1 LUC Update: Appropriation Summary Bottom Line: This summary outlines the proposed scope and budget for an off-cycle appropriation in the amount of $250,000-$350,000 for Phase 1 of the Land Use Code (LUC) update. This appropriation will enable Staff to draft critical LUC changes that will implement City Plan and the Land Use Code Audit, implement the Housing Strategic Plan, and improve the housing system in Fort Collins. Background: As recommended by the Ad Hoc Housing Committee at the November meeting and supported by Council at a December 8 work session, staff is seeking an off-cycle appropriation to initiate the housing-related LUC changes outlined in the Land Use Code Audit (2020) and prioritized in the draft Housing Strategic Plan (adoption scheduled for February 2021). In concert with other efforts, changes to the LUC have been identified as a high priority action to support the creation of new affordable homes and increase housing variety. Scope: Phase 1 of the LUC update will prioritize Housing-Related Changes and a Reorganization of the Code. Specific examples are outlined below, and a detailed scope will be prepared as part of the RFP process. Housing-Related Changes: • Define new housing types. Example: co-housing, ADU, cottage development, triplex • Revise housing types permitted in each zone district. Example: allow duplexes in more/all zones • Evaluate level of review for housing. Example: Basic Dev Review (BDR) for small multifamily • Recalibrate Affordable Housing incentives. Example: density/height bonus, parking reductions • Remove barriers to accessory dwelling units (ADUs). Example: allow attached ADUs • Remove barriers to permitted densities. Example: remove limits on number of units per building Code reorganization: • Consolidate similar standards. Example: All design requirements for multifamily in one place • Remove repetition, increase user-friendliness. Example: Uses in a table instead of a list • Simplify language to improve clarity and consistency Budget: This off-cycle appropriation of $250,000-$350,000 will be used to fund four required tasks to successfully complete Phase 1 of the LUC update: Task Est. Amount Description Community engagement $10,000 - $20,000 Meetings, translation/interpretation, community partner funding, data analysis Analysis, modeling, best practices $40,000 - $70,000 Pro forma analysis, visualization, testing, economic analysis, graphics and renderings, etc. Legal Review $60,000 - $90,000 Review of relevant case law and legal context for proposed code changes Code Drafting $140,000 - $175,000 Concept development and evaluation of alternatives, writing and revising new LUC language; collaborating across departments for consistency with other regulations Total estimated cost $250,000 - $350,000 ATTACHMENT 4 Phase 1 LUC Update: Appropriation Summary 2 City staff will lead this effort, supported by outside consultants to help balance daily work assignments with the demands of this complex update to the LUC regulations. Timeline: Phase 1 is expected to be completed by the end of 2022. Phase 2 of the LUC update is anticipated to be completed by the end of 2025. Next Steps: First Reading of the appropriation has been scheduled for February 16, 2021 in conjunction with consideration of adoption for the Housing Strategic Plan. If the appropriation is approved by Council, Staff anticipates releasing an RFP for consultant support and beginning work in the second quarter of 2021. To initiate Phase 2 of the Land Use Code update, staff will be preparing a BFO offer. 1 Housing Strategic Plan Work Session Jackie Kozak Thiel, Caryn Champine, Lindsay Ex, Meaghan Overton January 26, 2020 ATTACHMENT 5 Questions for Consideration 2 What feedback do Councilmembers have on the following: •Initial set of prioritized strategies? •Draft guiding principles? Do Councilmembers have any feedback on the quick(er) wins identified to date? CITY PLAN •Principle LIV 5: Create more opportunities for housing choices •Principle LIV 6: Improve access to housing …regardless of their race, ethnicity, income, age, ability, or background Strategic Alignment 3 COUNCIL PRIORITIES •Affordable and Achievable Housing Strategies •Equity and Inclusion •Reimagining Community Engagement STRATEGIC OBJECTIVES Neighborhood Livability & Social Health •NLSH 1.1 Improve and increase…housing… affordable to a broad range of income levels. Step 8: Implement* (Spring +) Step 7: Consider Adoption* (Feb/Mar) Step 6: Prioritize Strategies* (Jan) Step 5: Evaluate Strategies(Dec) Step 4: ID Strategies, Criteria (Nov/Dec) Step 3: Engage Community (Oct/Nov) Step 2: Greatest Challenges (Sep) Step 1: Vision (Aug) Housing Strategic Plan Process Progress to Date 50+Strategies Identified Thus Far Consultant Support Community Engagement, Priorities Peer Cities & Leading Authors Initial Set of Prioritized Strategies (26) Evaluation Criteria 5 Identification, Evaluation, and Prioritization Process Step 4: ID Strategies, Criteria (Nov/Dec) Step 5: Evaluate Strategies (Dec) Step 6: Prioritize Strategies* (Jan) •Findings in previous City reports •Community engagement •Ad Hoc Committee, stakeholder and staff input •Best practices and peer cities •Outcome:Initial set of 56 strategies shared at the December Work Session •Tw o staff workshops to evaluate the 56 potential strategies •Evaluated using the criteria of vision, equity, feasibility, cost and impact •Outcome: Refined set of 26 strategies that meet the evaluation criteria •Holding workshops and conversations to refine the list •Council Work Session, Ad Hoc Committee, Home2Health Partners, Staff, Boards and Commissions, Community •Outcome: Final List of Priorities for the Ad option Draft 6 Communicating the 26 Strategies Brief Descriptions Strategy Name, Description, Outcome, Alignment with Community Recommendations, and Timeline Detailed Descriptions Strategy Name, Description, W hy Prioritized, Timeframe, Outcomes, Lead Entity, Impacted Players, Next Steps, Secondary Greatest Challenges 7 Strategies by Timeline Quicker Wins (<1 year) 1. *Assess displacement and gentrification risk (New) 4. Implementation, tracking and assessment of housing strategies (Expand) 8.*Extend the City’s affordability term (Expand) 9. *Off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit (New) 10. Refine local affordable housing goal (Expand) 13.*Recalibrate existing incentives to reflect current market conditions (Expand) 14. *Create additional development incentives for affordable housing (New) 17. Reconsider affordable housing requirements/funding as part of metro districts (Expand) 24.Support community organizing efforts in manufactured home communities and increase access to resident rights information, housing resources, and housing programs (Expand) 25. *Foreclosure and eviction prevention and legal representation (Expand) Summary: 10 strategies (3 new, 7 expanded) Key Outcomes: Assess and evaluate current programs; Initiate Land Use Code work; Support stability and preservation *Quick(er) wins identified by the Housing Ad Hoc Council Committee 8 Strategies by Timeline Tr ansitional Strategies (1-2 years) 5. Advocate for housing-related legislation at state and federal levels (Expand) 7. Remove barriers to the development of Accessory Development Units (Expand) 12.Expand partnership(s) with local Community Development Financial Institution (CDFI) to offer gap financing and low-cost loan pool for affordable housing development (Expand) 15.Explore/address financing and other barriers to missing middle and innovative housing development (New) 16.Remove barriers to allowed densities through code revisions (New) 18. Increase awareness & opportunities for creative collaboration across water districts and other regional partners around the challenges with water costs and housing (Expand) 21. Explore revisions to occupancy limits and family definitions (Expand) 22. Public Sector Right of First Refusal for Affordable Developments (New) Summary: 8 strategies (3 new, 5 expanded) Key Outcomes: Increase advocacy; Complete housing-related LUC changes; Develop new financing tools; Increase collaboration around water; Revisit occupancy; Preserve existing affordable inventory 9 Strategies by Timeline Tr ansformational Strategies (2+ years) 2. Promote inclusivity, housing diversity, and affordability as community values. (Expand) 3. Implement the 2020 Analysis of Fair Housing Choice Action Steps (Expand) 6. Visitability policy (New) 11 . Create a new dedicated revenue stream to fund the Affordable Housing Fund (Expand) 19.Bolster city land bank activity by allocating additional funding to the program (contingent on adopting additional revenue stream policy) (Expand) 20.Explore the option of a mandated rental license/registry program for long-term rentals and pair with best practice rental regulations (New) 23.Te nant right of first refusal for cooperative ownership of multifamily or manufactured housing community (New) 26.Small Landlord Incentives (New) Summary: 8 strategies (4 new, 4 expanded) Key Outcomes: Promote community values; Increase accessibility of units and Fair Housing; Additional funding for housing; Expand the land bank; Explore renter regulations & incentives; Preserve existing affordable inventory Tr ansition to Implementation 10 2021: •Community Summit •Implementation Plan •Council Work Session this Summer Ongoing: •Biannual Implementation Process •Guiding Principles for Overall Prioritization Draft Implementation Process (2-years) 2. Revisit Priorities 3. Confirm Priorities 1. Assess Progress 4. Design Summit 1 2 3 4 Draft Guiding Principles •Center the work in people •Be agile and adaptive •Balance rapid decision making with inclusive communication and engagement •Build on existing plans and policies –and their engagement •Expect and label tensions, opportunities, and tradeoffs •Focus direct investment on the lowest income levels •Commit to transparency in decision making •Make decisions for impact, empowerment, and systems (not ease of implementation) 11 •Why: •No one has solved this –stay in testing & learning mode •Ever changing environment •Accountability & Transparency •When: Applied biannually to develop overall priorities •Evaluation criteria à Individual strategies •Overall prioritiesà Guiding Principles •How: With community, reviewed by decision makers, basis for design summit Ad Hoc Committee & Quicker Wins 12 Au gust: Overall Focus & Priorities September: Challenges & Existing Conditions October: Housing Types & Zoning November: Housing Types & Zoning; Displacement and gentrification December: Displacement and gentrification; Funding & Financing; U+2, Rental licensing January: Strategy prioritization, Innovative Partnerships February: Plan Deep Dive March: Implementation, End-of-Te rm Ap ril: Where to Head Next Quick(er) wins moving forward: •Evaluate opportunities to increase and recalibrate affordable housing incentives in the Land Use Code •Assess displacement risk (mapping exercise) •Foreclosure and eviction prevention (TBD) Quick(er) wins requiring Council action: •Metro DPA P rogram -no cost to the City (Resolution on Feb 2) •Off-cycle appropriation to advance Land Use Code audit -$250-350K with $60K match from Home2Health (First Reading on Feb 16) Additional “quick(er) wins”may continue to be identified 13 PLACEHOLDER: •Community feedback on the plan and strategies is open thru January 27 •Staff will share the summary of feedback to date in the January 26 Read Before Packet Step 8: Implement (Spring +) Step 7: Consider Adoption (Feb/Mar) Step 6: Prioritize Strategies (Jan) Step 5: Evaluate Strategies(Dec) Step 4: ID Strategies, Criteria (Nov) Step 3: Engage Community (Oct/Nov) Step 2: Greatest Challenges (Sep) Step 1: Vision (Aug) Next Steps & Implementation Key 2021 Dates: •January 7, 2021 –Initial Set of Strategies released •Full draft plan released the week of Jan 11 •Jan 7 -Jan 27 -Community review •Jan 26 –Council Work Session •Jan 27 -Feb 3 -Staff Revisions •Feb 16 –Adoption (1st Reading) •April/May –Community Summit •Summer –Implementation Plan & Council Work Session Next Steps 14 Questions for Consideration 15 What feedback do Councilmembers have on the following: •Initial set of prioritized strategies? •Draft guiding principles? Do Councilmembers have any feedback on the quick(er) wins identified to date?