HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/02/1999 - ITEMS RELATING TO AFFORDABLE HOUSING AGENDA ITEM SUMMARY ITEM NUMBER: 22 A-B
DATE: February 2, 1999
FORT COLLINS CITY COUNCIL Ken Waido/
STAFF: Ann E. Watts
SUBJECT:
Items Relating to Affordable Housing.
RECOMMENDATION:
Staff, the Affordable Housing Board and the Planning and Zoning Board recommend adoption of
these Ordinances on First Reading. Staff and the Affordable Housing Board recommend elimination
of the City's Development Impact Fee Rebate Program to eventually be replaced with a competitive
process to allocate the City's Affordable Housing Fund.
FINANCIAL IMPACT:
Definitions of Affordable Housing Projects and Affordable Housing Units: The financial impact
from this change is described below, as it affects the Impact Fee Delay Program. Other programs
are not significantly affected by this revision.
Development Review Fee Waiver: There will be no significant impact.
Impact Fee Delay: To qualify as an Affordable Housing Project under the revised definition, a
residential project would have to make at least 10% of its units affordable and restrict them for at
least 20 years so they could only be sold (at an affordable price) to low-income households. Any
project that meets that standard would be eligible for the delay of all impact fees on the entire
project. Previously, at least 50% of the units had to be affordable to be eligible for this program,
without any restrictions on occupancy or duration of affordability. Presumably,the reduction from
the 50%to the 10%standard should increase the number of eligible projects. However,the addition
of the 20-year occupancy/affordability restrictions may cause private for-profit developers of for-sale
housing to avoid the program entirely.
Financial impacts from a deferral of certain impact fees fall into three categories: (1) permanent
reduction in the fiscal year spending base(2)lost interest income for all funds,and(3)reduced debt
service coverage for bonds. Lost interest income is the most significant impact to the City.
However, this loss to the City is less than the savings generated for the developer. This program
saves a typical project about $500 per unit. at a cost to the City of about $300-350 per unit. Over
$150 is"created"by the difference in interest rates between construction interest loans and the City's
investments.
• City staff knows of 590 rental units and 167 for sale units that either were built in 1997-1995 or will
be built in 1999.for an average annual production of about 250 units. All of them would be eligible
DATE: February 2, 1999 2 ITEM NUMBER: 22 A-B
for this program under the proposed regulations. If production continues at that level, Impact Fee
Delays could cost the City roughly $80,000 annually,but would save developers over$120,000.
City staff hopes that there will be an increase in affordable housing production with the
implementation of the"Goals and Strategies"detailed in the"Priority Affordable Housing Needs and
Strategies" report. The ultimate goal is to fund 3,087 rental units and 1,329 homebuyers between
1999 - 2008. If this goal is realized, Impact Fee Delays on these units could cost the City about
$1.44 million over 10 years, or an average of roughly$144,000 per year. The program could save
developers almost$2.16 million, or$216,000 per year.
The chart on the following page demonstrates these calculations:
Financial Impact Analysis of the Impact Fee Delay Program
PER UNIT 1 RENTAL ! FORSALE FOR SALE
k i rest nM (mm 1 a)junrestnct e 21(max 0 60—R.) '..
Estimated amount of fees delayed 7,000 14,000 C 14,000
Length of delay/construction loan term 9 5 EEE5 -.
Interest saved by Developers a 9% 473 525 525�'
Cost to City of foregoing interest @ 6% 315 350 1 350
Difference 158 175 E 175
ESTIMATED ANITALPRODUCTION j RENTAL FORSALE FORSALE TOTAL
j restricted(tarn 10%) unrestricted(max 900/9),
Number of units built or planned, 1997-1999 590 72 j 95 ' 757
average pert'ear --- - 197 --- 24{--(- --- 32 252
-- - - - -- ..-- 08� --- ..
Interest saved by Developers @ 9% 92,9�5 h 600 16,625 122,150
Cost to Ctty offoregomg interest Ca6% 11 61,950 8,400 81,433
Difference-'---' --- 30,975 : � 41200 j 5,542 40,717-
I
10-YEARPRODUCtIONGOALS AL FOR SALE FORSALE TOTAL
restricted(nun 10%)j unrestncted(mmc 90%)-
Fu nd in g goal for 1999-2008 3.087 ; 133 sj 1,196 4 4,416
Interest saved by Developers @ 9% 1,458,608LL _ 69 773 �953 2,156,333
Cost to City offoreeoing interest @ 6% 972,405 46,515 418 635 1,437,555
Difference 486 203 23,258 . 209,318 718,778
Onl} units that are restricted as affordable for 20 years are included in this column
z _.. .. ......_.. ...--..-doss ...-..-..-_. __.- - ---_._._. _.._.. . .............
Units m this column are unrestricted.but eligible because the),are part of an affordable project.
TTh --'-- ---__-doss,but .-does._.. - .-......_
The Gtv's goal is to fund 1,329 homebucers,but that does little to creaze new construction. Therefore this,
--
estmta[e its ven high.
a Assumes the maximum 90%,of the eligible for sale production will be unrestricted. '..
DATE:
February 2, 1999 3 ITEM NUMBER: 22 A-B
Impact Fee Rebate: The current annual average of rebates is about $113,000 per year. If the
Ordinance is adopted,the Rebate Program would be eliminated except for eleven(11)projects which
.
have received preliminary planning approval from the City and have financially relied on receiving
a rebate of fees from the City. Thus, $816,410 from the Affordable Housing Fund will need to be
earmarked to cover the costs from these projects if they are completed. Assuming the Affordable
Housing Fund continues to receive a budget of at least$283,000 a year,there will be sufficient funds
to cover the estimated costs.
EXECUTIVE SUMMARY:
A. First Reading of Ordinance No. 19, 1999,Revising the Definitions for"Affordable Housing
Project" and "Affordable Housing Unit," Revising the City's Development Review Fee
Waiver Provisions for Affordable Housing and Revising the City's Impact Fee Delay
Program for Affordable Housing.
On August 18, 1998, City Council adopted Resolution 98-125 identifying the City's priority
affordable housing needs. The City Council intends to target City resources on priority needs. The
existing affordable housing incentives offered in the Land Use Code and the City Code do not
necessarily target those priorities. They do not share a common definition of affordable housing and
so, in some ways, they function at odds with one another.
Staff has worked with the Affordable Housing Board to create definitions of an affordable housing
project, rental unit and for sale unit. Applying those definitions throughout the Codes will help
clarify the City's affordable housing incentive programs and make them easier to work with. Staff
and the Affordable Housing Board have also agreed to propose revising the Development Review
Fee Waiver so that the proportion of fees waived would equal the proportion of affordable units
within an affordable housing project. The Planning and Zoning Board reviewed the proposed
changes at its November 19, 1998 meeting. That Board requested the addition of a 20-year
minimum affordability period and a more detailed analysis of financial impacts. The result is
Ordinance No. 19, 1999,which revises the definitions for"Affordable housing project," "Affordable
housing unit for rent" and"Affordable housing unit for sale" in the Land Use Code,the Transitional
Land Use Regulations, and the City Code. It revises Fort Collins' Development Review Fees
Waiver for Affordable Housing in both the Land Use Code and the Transitional Land Use
Regulations. Finally,this Ordinance revises Fort Collins'Impact Fee Delay Program for Affordable
Housing in the City Code.
B. First Reading of Ordinance No.20, 1999,Repealing Article IX of Chapter 5 of the City Code
Regarding the Offset of Impact Fees for Affordable Housing.
One of the programs established by the City of Fort Collins to promote the development of
affordable housing units inside the city limits is known as the Development Impact Fee Rebate
Program. The program provides a partial rebate to an affordable housing developer of the impact
fees paid to the City, other governmental entities,and/or special purpose utility districts. Currently,
the amount of per unit rebate is based on a graduated scale dependent upon the commitment of the
developer to provide units as certain income levels, with higher rebates given for housing units
reserved for lower income families. In mid-1996,the City Council asked the Affordable Housing
Board to re-exaniine the Rebate Program and to consider making rebates based on a percentage of
fees paid instead of flat dollar amounts. The Board has reexamined the Program and in the context
DATE: February 2, 1999 4 ITEM NUMBER: 22 A-B
of the recently completed "Priority Affordable Housing Needs and Strategies" report now believes
the Rebate Program should be eliminated and eventually replaced with a competitive process.
Elimination of the Rebate Program would not affect the Development Impact Fee Delay Program.
If adopted, the proposed Ordinance would eliminate the Rebate Program except for eleven (11)
projects that have received preliminary planning approval and have financially relied on receiving
a rebate of fees from the City. Thus, $816,410 from the Affordable Housing Fund will need to be
earmarked to cover rebates for these projects if they are completed. Assuming the Affordable
Housing Fund continues to receive a budget of at least$283,000 a year,there will be sufficient funds
to cover the estimated costs.
BACKGROUND:
A. First Reading of Ordinance No. 19, 1999,Revising the Definitions for"Affordable Housing
Project" and "Affordable Housing Unit", Revising the City's Development Review Fee
Waiver Provisions for Affordable Housing and Revising the City's Impact Fee Delay
Program for Affordable Housing.
The 1997-99 Staff Work Plan calls for an Affordable Housing Needs Study to be completed in the
summer of 1998. The 'Draft Priority Affordable Housing Needs and Strategies Study" was
presented to City Council at its Study Session on June 9, 1998. This phase of the Study included
an investigation of what kind of affordable housing exists in this community,what kinds are needed,
and what the most urgent need is. The revised study, with enhanced "Goals and Strategies," was
presented to City Council at its Study Session on October 27, 1998. Since then, staff and the
Affordable Housing Board have been working together to revise the "Goals and Strategies" and
prepare them for adoption by City Council.
Staff believes there is sufficient information from the research to form a reasonable recommendation
in regard to the community's priority affordable housing needs. City Council,at its August 18, 1998
meeting, approved Resolution 98-125 Establishing Affordable Housing Priorities.
To implement these priorities, staff and the Affordable Housing Board worked together to propose
revisions to the City's existing Affordable Housing Programs. The Affordable Housing Board voted
to support these revisions at its September 3, 1998 regular meeting. After learning of the Planning
and Zoning Board's recommendations, it voted to support requiring minimum 20-year occupancy
and affordability periods at its January 7, 1999 regular meeting.
Changes to the definitions of"Affordable housing project" and "Affordable housing unit," as well
as revisions to the Development Review Fees Waiver and Impact Fee Delay Program for Affordable
Housing are included in this Agenda Item.
Definitions of Affordable Housing Projects and Affordable Housing Units: All programs are
proposed to use the same definition of affordable housing. This requires revision to the Land Use
Code, the Transitional Land Use Regulations and the City Code.
Staff and the Affordable Housing Board recommend changing the definition of"Affordable housing
project" as it exists in Section 5.1.2 of the Land Use Code. Currently, a project qualifies as
affordable if 30%of its units will be affordable. The revised definition would decrease that to 10%,
and would add 20-year occupancy and affordability restrictions. It would read as follows:
DATE: February 2, 1999 5 ITEM NUMBER: 22 ?'-B
Affordable Housing Project shall mean a development project in which: (1)at least
seventy-five(75)percent of the gross acreage to be developed under the plan is to be
developed as residential dwelling units or mobile home park spaces; (2)t (39)
at least ten (10) percent of said dwelling units or spaces (the "affordable housing
units") are to be available for rent or purchase on the terms described in Seetion 5-
'5 7" of the Gity ^-'- the,definitions of"'Affordable housing unit for;sale" or
"Affordable housing unitfor rent" (as applicable); artd-(3) the construction of the
dwelling units or spaces is to occur as part of the initial phase of the project and (i)
prior to the construction of the market rate units or (ii) on a proportional basis,
according to the same ratio as the number of affordable units bears to the number of
the market rate units;and,( )the units will be required;by binding legal nstrument
acceptable to lxtie City art duly recorded;with the'Lanme_�,County�-fClerk and
Recorder,tab ccupiedby affordable;to"low mcome households for at least 20
__,. ..
years.
Staff and the Affordable Housing Board also recommend adding new definitions of an "Affordable
housing unit for rent" and an "Affordable housing unit for sale" to Section 5.1.2 of the Land Use
Code. A variety of definitions of an"Affordable housing unit" are now found in different sections
of the Land Use Code and the City Code. Instead, each program should adhere to a single,
commonly accepted definition of an"Affordable housing unit." The new definitions would read as
follows:
Affordable housing unit for✓ent shall mean.a dwelling unit which is:auailable for
rent on terms'that would be�ordable to households"earning eighty(99),Tercent,or
less of the median incomegftcity residents,As adjusted forfamily size,and paying
less than thirW- O) percenttof their grossancome for housi# ncluding rent and
_ . _
utilities. Tlie it mus l'e, occupred�.by And affordable°to such low-income
household(s)fig-,fa period:of rot less than twenty (20) years.
Affordable honking unit forsale shall mean a dwelling unit uuhich is available for
purchase onternts that wouldbe affordable.tohousehoids eamingeighty,(80)percent
or less of the median income'of city residents,as adjusted foffamily size,:and paying
less than thirty-eight (38)_,percent of.their;;gross income for housing,T:including
principal,interest,taxes,insurance,utilities and homeowners'association fees. The
unit;must be.occupied by and affordable to"such low-income household(s) for a
period of not less than twenty(20) years.:
All three definitions should be added to Section 29-1 of the Transitional Land Use Regulations.
They should also replace Section 26-631 of the City Code, which affects the Impact Fee Delay
Program.
Affordable gross rents will be established by the City's Advanced Planning Department based on
the Department.of Housing and Urban Development's (HUD) estimate of Area Median Famih
i
2,
DATE: February1999 6 I I ITEM NUMBER. 22 A-B
Income,which is generally released each January. The calculation of affordable gross rents assumes
an average of 1.5 persons per bedroom. In 1998, affordable rents were:
AFFORDABLE GROSS MONTHLY RENTS
(inclining u e I
—
NUMB EROBEDROOMS
INCOME OBR -------I BR- -- 1-BR-f 3 BR,--- -4-8k----- - 5BR
-1-J-81.00 1,303.00
-6 /a�AM 1 _534.60— 573.00 j 697-00_J7_9T0_0T_9'8_6 00-97-7-0-0
50%AMI 445.00 477.00 573.00 1 662.00 1 738.00 814.00
Affordable home sale prices will be estimated by the City's Advanced Planning Department based
on the Department of Housing and Urban Development's(HUD)estimate of Area Median Family
Income,which is generally released each January. The calculation may be modified more frequently
to reflect changes in prevailing interest rates or other terms. In 1998,estimated affordable sale prices
were calculated as follows:
TMIATED AFFORDABLE S ALE PRICES
NUMBER OF PERSONS IN HOUSEHOLD
I person 2 people, 3 people, 4 people, 5 people-: 6 people 7 people 8 people
Sale Price $ 9-6,200 i $ 110300 $ -124,300 j $ 138,200 $ 149,200 $ i96,000 S 170,800 $ 181,706-
Dprn2 (56A.)- 41-910-f- 51515
Prin-dp1-e---9-1-,3-9-0-1 --104,785 118,085 1 131,290 I 41,740 ! 152,000_ _---162,260-_ T-7-2—,6_15-
0.0058 i 0.0058 i 0.665-8—1, 0.0058 0.0058 0.0058 0.0058
Term _3_60 1 360 360 i 360 360 2 360 360 360
-Payment _66869_7786—, -813 _043 - 1,011 1,080 1,148
PM I_ 7- 1, 80 89 I 96 103 110 111
- -4 —
taxes 80 i 92 104 115 124 133 14
2 151
insurance
- - __.__. � .321-4 --- 37-1 - ------ 41 46-:'-- 50--:-- -53 57* 61- 6t7
Pit!ii;tCiaa --78'2 89110l0—. I,I 237t_lfl_3_, -1,361 1,388
210- 2z utilities 120 135
Total Monthly
si"H Cost__1_ $962-1--- $1,032 $1,160 $1,288 $1,393�-___$1,496__ $1,598 $1-,702-
Development Review Fee Waiver: Section 2.2.3(E)(3)of the Land Use Code and Section 29-3(c)
of the Transitional Land Use Regulations provide for an "Affordable Housing Exemption" from
Development Review Fees. It currently allows for these fees to be reduced by one-half(1/2)if at least
fifty-one percent(5 1%)of the dwelling units within the project are affordable to individuals earning
between 80%and 95%of median income. This is no longer consistent with the City's definition of
affordable housing.
There is no need for these sections to contain the definitions of "Affordable housing project,"
"Affordable housing unit for rent," and"Affordable housing unit for sale." Readers should refer to
the definitions in Section 5.1.2 of the Land Use Code or Section 29-1 of the Transitional Land Use
Regulations (as applicable).
Staff and the Affordable Housing Board propose that fees be waived in direct proportion to the
number of dwelling units within the project that are affordable. At least 10%of the dwelling units
DATE: February 2, 1999 7 ITEM NUMBER: 22 A-B f
must be affordable in order to meet the definition of"Affordable housing project" and receive any
. waiver. For example, if a project proposes 75% of its units as affordable housing, then the City
would waive 75% of its normal development review fees and the project would pay only 25% of
those fees.
The program would continue to require that the project verify the percent of units that are affordable
prior to the issuance of a certificate of occupancy. If the project composition has changed so that
fewer units meet the definition of affordable housing,then the developer would be required to pay
development review fees for those units that are no longer affordable. If the project mentioned
above drops from 75% affordable to 50% affordable, then it would owe an additional 25% of its
normal development review fees before it could receive a certificate of occupancy.
Impact Fee Delay: "Deferral of Fees for Affordable Housing" currently exists in two places in the
City Code. Section 7.5-26 authorizes the deferral of"...fees established under this Article..." No
specific fees are mentioned in this section, but it is assumed that they include all capital
improvement expansion fees, including Library, Community Parkland, Police, Fire, General
Government, and Street Oversizing. Section 26-632 authorizes the deferral of fees related to
utilities,and specifically lists"...the Water Plant Investment Fee("WPIF"), Sewer Plant Investment
Fee("SPIF"),Storm Drainage Basin Fee and the Raw Water Requirement In-Lieu Cash Payment..."
Each Section of the City Code that describes this program should use the same definition of
"Affordable housing project," "Affordable housing unit for rent" and "Affordable housing unit for
sale" as the Land Use Code. Therefore Section 26-631 should be replaced by those definitions.
Ordinance No. 147, 1996,changed Section 26-632 to eliminate the requirement to secure the future
payment of deferred fees by means of a letter of credit or certificate of deposit. A similar change
was not implemented for Section 7.5-26, although it may have been the intent of the City Council
to do so. This change should be made to keep the two sections consistent with each other.
Section 7.5-26 and Section 26-632 both state that"...fees...shall...be deferred until the date of issuance
of a certificate of occupancy (whether temporary or permanent)..." There is an additional sentence
at the end of Section 26-632 that states "The city shall not issue any certificate of occupancy,
whether temporary or permanent,for the occupation of any building or structure for which a deferral
of fees has been obtained pursuant to this Section until such time as such deferred fees have been
fully paid." That sentence is redundant and unnecessary. In the interest of matching sections, it
should be deleted.
Section 7.5-26 should be revised to read "With respect to any building permit for a dwelling unit
which is contained within or which eentairts constitutes an affordable housing project..." This would
match the existing phrase in Section 26-632.
B. First Reading of Ordinance No.M 1999,Repealing Article IX of Chapter 5 of the City Code
Regarding the Offset of Impact Fees for Affordable Housing.
In 1994, the City Council established the Development Impact Fee Rebate Program as an
administrative program permitting a partial rebate of City impact fees for the purpose of promoting
the development of additional affordable housing units. Fees eligible for rebate include almost all
City fees as well as fees from special purpose utility districts and the school district.
DATE:
February 2, 1999 8 ITEM NUMBER: 22 A-B
The Affordable Housing Board considered proposing a series of changes to the Rebate Program but
in the context of the recently completed"Priority Affordable Housing Needs and Strategies" report
now believes the Rebate Program should be eliminated and eventually replaced with a competitive
process.
This Ordinance would eliminate the Rebate Program except for eleven (11) projects which have
received preliminary planning approval from the City and have financially anticipated rebates.
The projects listed below, if completed,have an estimated cost of$816,410.
$103,070 CARE Eagle Tree (17 rental units @ 50%AMI, 5 @ 45% & 14 @ 40%)
35,040 FCHA, Parkway Townhomes (12 homeownership units @ 50%AMI)
19,710 C&A Scenic Views, Saddle Ridge (27 homeownership units @ 80%AMI)
10,220 Brandt, Willow Wood(14 homeownership units @ 80% AMI)
207.450 Brisben,Buffalo Run(13 rental units @ 40%AMI & 73 @ 50%)
17%580 Brisben, Bull Run(35 rental units @ 50%AMI & 141 @ 60%)
96,360 FCHA, Via Lopez(33 homeownership units @ 50%AMI)
2,920 Habitat for Humanity,Albion Way (1 homeownership unit @ 50%AMI)
2,920 Habitat for Humanity, Albion Way (1 homeownership unit @ 50%AMI)
86,140 Brisben, Country Ranch(118 rental units @ 60%AMI)
73,000 CARE, Windtrail (50 rental units @ 55% AMI)
$816,410 Approximate Total
Assuming the Affordable Housing Fund continues to receive a budget of at least$283,000 a year,
there will be sufficient funds to cover the estimated costs.
AFFORDABLE HOUSING BOARD RECOMMENDATION:
The Affordable Housing Board, at its regular monthly meeting on September 3, 1998, voted to
support the proposed revisions to the Land Use Code and City Code. These revisions affect the
definitions of"Affordable housing project"and"Affordable housing unit,"the Development Review
Fees Waiver and the Impact Fee Delay Program for Affordable Housing. After learning of the
Planning and Zoning Board's recommendations, it voted to support requiring minimum 20-year
occupancy and affordability periods at its January 7, 1999 regular meeting.
The Affordable Housing Board, at its regular monthly meeting on January 7, 1999,agreed that the
Development Impact Fee Rebate Program should be eliminated and eventually replaced with a
competitive process.
ORDINANCE NO. 19, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REVISING THE DEFINITIONS FOR"AFFORDABLE HOUSING PROJECT" AND
"AFFORDABLE HOUSING UNIT", REVISING THE CITY'S DEVELOPMENT REVIEW
FEE WAIVER PROVISIONS FOR AFFORDABLE HOUSING AND REVISING THE CITY'S
IMPACT FEE DELAY PROGRAM FOR AFFORDABLE HOUSING
WHEREAS, the 1997-99 Staff Work Plan calls for an "Affordable Housing Needs Study"
to be completed in the summer of 1998; and
WHEREAS, the "Draft Priority Affordable Housing Needs and Strategy Study" was
presented to the Council at its Study Session on June 9, 1998; and
WHEREAS, on August 18, 1998, the Council, by Resolution 98-125, established certain
affordable housing priorities; and
WHEREAS, in order to implement said priorities, the staff and the Affordable Housing
Board have worked together to propose revisions to the City's existing affordable housing programs;
and
WHEREAS, the Affordable Housing Board, on September 3, 1998, recommended to the
Council that the changes proposed by this Ordinance be adopted; and
WHEREAS,the Council has determined that the affordable housing provisions of the City's
law should be based upon common and consistent definitions; and
WHEREAS,the Council has determined that the definition,development review fee waiver
and impact fee delay program changes proposed by this Ordinance are in the best interests of the
City and should be adopted.
NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Land Use Code, the Transitional Land Use Regulations and the City Code are
hereby amended as follows:
Section 1. That the definition of"Affordable housing project" as contained in Section
5.1.2 of the Land Use Code be amended to read as follows:
Affordable housingproject shall mean a development project in which: (1)at least
seventy-five(75)percent of the gross acreage to be developed under the plan is to be
developed as residential dwelling units or mobile home park spaces; (2)thi�(;G)at
least ten (10) percent of said dwelling units or spaces (the "affordable housing
units") are to be available for rent or purchase on the terms described in Seetiorr5
the definitions of '"Affordable housing unit for rent" or
"Affordable housing unit for sale" (as applicable); atd-(3) the construction of the
dwelling units or spaces is to occur as part of the initial phase of the project and (i)
prior to the construction of the market rate units or (ii) on a proportional basis,
according to the same ratio as the number of affordable units bears to the number of
the market rate units;and(4)the traits will be required,by binding legal instrument
acceptable to the City and duly recorded with the Latimer County Clerk :and
Recorder,to be occupied by and affordable to low-income households for>at least
twenty(20)years.
Section 2. That Section 5.1.2 of the Land Use Code be amended by the addition of a new
definition for"Affordable housing unit for rent" and a new definition for"Affordable housing unit
for sale" which definitions shall read as follows:
Aj9'brdrrbleho�for htshallmhddAdwe7lmgi#pi ss vailab3e0nr ertk
ontemuthatoidbt,affo>3ableto1!ottSeolds ,�`�BU,�percenr�ess
oPthe�uedtanancaome�sfbi 'den , ; �adjus��*wAy „ Pandpaymgdess
tp
thantliirty(30)percent�fthei"ssincatmeIbr3idusmg;antiltic3tng:rentand ties;
The emit mustberoccupted`"d affgrdabie to suchdow tncegnehousehol:l(s)fior
a period ofanoWq�ltlian twenty O)yedm
Affordable houstn'gczinit for sale shall sneer a dweiht g is availableNfor
purcheonjetms would3eaffordbOD,1ovm 80 entds1h y
or lessnfthemedtananccomemfcityrestnasadj for tlysize,and ang
less than tivrtyJeight5(38)percent.ofdlietr`gross:income Ihousing, including
principal,interest,taxes,insurance,utilities and homeownereassociationfees. The
unit must be occupied by and affordable4o such low-income-household(s)for a
period of not less than twenty:M)years:;
Section 3. That Section 29-1 of the "Transitional Land Use Regulations" be amended
by the addition of the following definitions:
Affordable housing project shall mean a development project in which: (1)at least
seventy-five(75)percent of the gross acreage to be developed under the plan is to be
developed as residential dwelling units or mobile home park spaces;(2)thirty(39)at
least ten (10) percent of said dwelling units or spaces (the "affordable housing
units") are to be available for rent or purchase on the terms described in Seetion 5
the definitions �of "Affordable,housing;,emit for rent" or
"Affordable housing unit for sale" (as applicable); wtd-(3) the construction of the
dwelling traits or spaces is to occur as part of the initial phase of the project and (i)
prior to the construction of the market rate units or (ii) on a proportional basis,
according to the same ratio as the number of affordable units bears to the number of
the market rate units;and(4)the units will be required,by binding legal instrument
acceptable to the City and duly recorded with the :Larimer County Clerk and
2
Redo toi5 R:6ccupied by`and affordable to low income households for,at least
twenty&20_Y
Affordablehousi#gunitforrentshall meanadwelling unit which isavailableforxent
on terms that would be"afford able to households eaming eighty(80)percent=less
of the median income of city residents, as adjusted for family size ,and paying less
thanth rty(30)`percent oftheirgross income for housing,includingientand utilities.
The unit mus a occupied by.and affordable,lo such low-income household(s) for
aperiod of notJess than twenty:(20)years.
Affordable housing unit foradle shall meani dwelling unit whicli.is available,for
_x
purchweoi tem thatwouldbi;affordabletohouseholds.eammgeghty(80),percent
or esctfthe income�tbfFi .resident,gasadjustpklkr.f n*7 size,.anti a3'uig
less thanetght'(38) •cent of thou gtoss income for AousuigOn< ug
grnictpa1,wterest takes,i.ci, ce,utihhesand`homeowners'"asteciattongfees .l e
unit'must benciceupied by ari&Affordable#6^such low=income households(s)"fora
period of nofjess than twentyVO)years.
Section 4. That Section 2.2.3(E)(3)of the Land Use Code be and hereby is amended to
read as follows:
(3) Affordable Housing Exemption. Notwithstanding the requirement contained
in subparagraph(2)above that the development review fees shall be based on actual
expenses incurred by or on behalf of the city, applications relating to the review of
affordable housing projects shall be totally or partially exempt from the fees
authorized in this subsection(E) according to the following criteria:
(a) The fees authorized under this subsection(E)shall be entirely waived
for development projects in which one hundred
(100)percent of the dwelling units qualifyas affordable housingunits
for sale or for rent are available for re- rm whieig.
of the median irteame of eity residents, as adjusted for family si2e;
and paying less than thirty (39) pereent of their gross inearne fe
housing, ineleding utilities.
(b) The fees authorized under the Subsection (E) shall be reduced in
directproportionto the percentage of affordable housing units for sale
or for rent that are provided in the development project (within the
authorized waiver range of ten (10) percent to one hundred (100)
percent), in accordance with the following formula:
Numb6'bfat3'orcdab1etio5sinkvni x;;Tot#',£eesassessed"- Amountoffeesvmived
rTotalnuuiber ofhousing+units
(bc) The fees authorized under this subsection(E) shall not be reduced if
less than ten(10)percent of
the dwelling units within the project qua`iify as affordable housing
units forsale orfor rent-
tttiii'sics.
(e3) In order to determine whether a development project is eligible for a
total or wtial waiver or4educton;of fees under this subparagraph,
any applicant seeking such ieW or ywtial waiver orxequ, must
submit documentation evidencing the eligibility of the development
project to the Director, who may, upon review of such
documentation, defer the payment of said fees to such time, if at all,
that a certificate of occupancy is sought for the development project.
At that time,prior to the issuance of any certificate of occupancy for
the development project, a final determination shall be made by the
Director as to whether the development project qualifies for a total-er
p&-64 waiver q reduction of the fees. In the event that the Director
determines that the development project does not so qualify,all such
fees shall be due and payable prior to the issuance of the first
certificate of occupancy.
Section 5. That Section 29-3(c) of the Transitional Land Use Regulations is hereby
amended to read as follows:
(c) Applications relating to the review of affordable housing proj ects shall
be totally or partially exempt from the fees imposed under this Section according to
the following guideHnescritep
(1) The fees authorized under this subsection(c)shall be entirely waived
for development projects in which atleas£tfty-one(5 H one hundred
(100)percent of the dwelling units qualify:as affordablehousing units
for sale or for rent.
md paying less then fitirty (30) pereent of their gzass ineame for
(2) The,fees authorized,under this-subsection,fc))shall be reduced in
• directproporhon#otherpercentagoofaffordabletousing units for sale
or for rent th"eprovided in,the,development project=(within the
authorized waiver range often (10) percent°to one hundred (100)
percent),in accordance with the following formula:
Numbe`,of affordable housing units x Total fees assessed =' Amount of fees waived
Total number of housing units
(23) The fees authorized under this subsection(c) shall not be reduced if
less than ten(10),percent of
the dwelling units within the project qualifyaffordabledtousing
units for saleo,or-forientiare wvailable for rent or pttrehase an terms
earning mere dm ei.gh�',
irteeme of eity residents,as wbusted for f�mily size, and paying less-
utilities.
(34) In order to determine whether a housing project is eligible for a total
or pwtial waiver or reduction=of fees under this subparagraph, any
applicant seeking such ieial or par6al waiver or reduction must
submit documentation evidencing the eligibility of the development
• project to the Director of Planning, who may, upon review of such
documentation,defer the payment of said fees to such time, if at all,
that a certificate of occupancy is sought for the development project.
At that time,prior to the issuance of any certificate of occupancy for
the development project, a final determination shall be made by the
Director of Planning as to whether the development project qualifies
for a tom or partial waiver or reduction of the fees. In the event that
the Director of Planning determines that the development project does
not so qualify, all such fees shall be due and payable prior to the
issuance of the first certificate of occupancy.
Section 6. That Section 7.5-26 of the Code of the City of Fort Collins is hereby amended
to read as follows:
See. 7.5-26. Deferral of fees for affordable housing.
With respect to any building permit for a dwelling unit which is contained within
or which eantairtsconstitutes an affordable housing project as defined in § 26-631,
the fees established under this Article shall, upon the request of the applicant, be
deferred until the date of issuance of a certificate of occupancy (whether temporary
. 5
or permanent) for such unit or until the first day of December of the year in which
the deferral was obtained,whichever first occurs.Notwithstanding any provision in
this Chapter to the contrary, in the event that, during the period of deferral, the
amount of the deferred fee is increased by ordinance of the City Council,the fee rate
in effect at the time of the issuance of the building permit shall apply. Aay-person
At the
time of application for any such deferral,the applicant shall pay to the city a fee in
the amount of fifty dollars ($50.) to partially defray the cost of administration. No
person shall knowingly make any false or misleading statement of fact in order to
obtain any deferral of fees under this Section.
Section 7. That Section 26-631 of the Code of the City of Fort Collins be and hereby is
repealed and reenacted to read as follows:
Sec. 26-631. Definitions.
Afordable mustregprojectr§l�al�mean a dry pmentp ect in which (1 of least
seventy percent of a oss` crea a deve eil under the:plauiis`6 be
developed denhal wel gaaw"q"M#!home aces, 2yatlesst`ten
(l0 percen u §aiddwellirxg`unitsrspaca° e"dffoiileliousing;utits") veto
be availall rent'or- &ehase .en the t rms ilescdbe3 in the tlefinitions;of
'AgOrdable usmg.-unit fi#T#hn`or "'fordable'Ignsing unit foi,sale":I(as
applidable);« V he construcficm of the d"Ilin its or spaces is to occur,as'part-of
theinitalpli�f the pmjeotod{i)4)nnortoih,eonstructionofthemarket{rateunits
or(ii)ona-- -'rtionalbasis,according#othesameratioastthe number ofaffordable
units bears`! e`number of4hernarketrate atn ts;zaad=0)*units will be required,
by"bindinglegal instrument}acceptable Apgq p i I�ndl July recorded-with-,the
.
Larimer County-Clerk andRecordertobdode-upied°byand_ ordabletolow-income
households',forat least twenty'(20)years.
Affordable Housing unitfor rentshallmean a dwelling unitwhich is available for rent
outerms thaiwould be affordabletofiouseholds eamingi
f eighty(80)percentorless
ofthemedianincome of Tesidents,as-adjusted size, and paying"less
than thirty(30)percent oftheirgrossincomefor housing;including rent and utilities.
The unit musube occupied by and affordable to such low-income household(s)for
aperiod of not less than twcnty�(20)'years.
Affordable Aousing unit for sale shall mean a dwelling unit which is available for
purchase on terms thatwouldbe affordable to households earning eighty(80)percent
or less of the median income of city residents,as adjusted;for family size,and paying
less than t urty''eight (38) percent of their gross income for housing, including
6
n: dt �'taxessnsn�ce:��fihhes�d3+����"'=�ss5ctahon�ees d�fe
t
. xmit,� a tccu a „y�add of le toffs w tncQmeltouseholds or a
Pen fnot bs5 han a �0 years.
Section 8. That Section 26-632 of the Code of the City of Fort Collins be and hereby is
amended to read as follows:
See. 26-632. Deferral of fees.
With respect to any dwelling unit which is contained within or which constitutes an
affordable housing project as defined in § 26-631, the Water Plant Investment Fee
("WPIF"), Sewer Plant Investment Fee("SPIF"),Storm Drainage Basin Fee and the
Raw Water Requirement In-lieu Cash Payment,as established in this Chapter,shall,
upon the request of the applicant,be deferred until the date of issuance of a certificate
of occupancy(whether temporary or permanent)for such unit(s)or until the first day
of December of the year in which the deferral was obtained,whichever first occurs.
Notwithstanding any provision in this Chapter to the contrary, in the event that,
during the period of deferral,the amount of the deferred fee is increased by ordinance
of the City Council,the fee rate in effect at the time of the issuance of the building
pen-nit shall apply.At the time of application for any such deferral,the applicant shall
pay to the city a fee in the amount of fifty dollars ($50.)to partially defray the cost
of administration.No person shall knowingly make any false or misleading statement
• of fact in order to obtain any deferral of fees under this Section. The eity stroll Ttepursurtnt to this Seetion entii stteh time as stieh deferred fees have been fully paid.
Introduced, considered favorably on first reading,and ordered published in summary form
this 2nd day of February, A.D. 1999, and to be presented for final passage on the 16th day of
February, A.D. 1999.
Mayor
ATTEST:
City Clerk
7
Passed and adopted on final reading this 16th day of February,A.D. 1999.
Mayor
ATTEST:
City Clerk
8
ORDINANCE NO. 20, 1999
• OF THE COUNCIL OF THE CITY OF FORT COLLINS
REPEALING ARTICLE IX OF CHAPTER 5
OF THE CODE OF THE CITY REGARDING THE
OFFSET OF IMPACT FEES FOR AFFORDABLE HOUSING
WHEREAS,Article IX of Chapter 5 of the Code of the City of Fort Collins provides for the
offset of impact fees for affordable housing; and
WHEREAS, the staff, and the Affordable Housing Board, have recommended to the City
Council that the City's program for the offset of impact fees for affordable housing(the"Program")
be eliminated for all projects except those eleven (11) projects which have received preliminary
planning approval and have financially relied upon receiving an offset of fees under the Program;
and
WHEREAS, staff and Affordable Housing Board anticipate recommending to the Council
at some future time that the Program be replaced with a competitive process which would allocate
all City funds related to affordable housing issues; and
WHEREAS, the Council has determined that it is in the best interest of the City that the
Program be eliminated.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Article IX of Chapter 5 of the Code of the City of Fort Collins pertaining to the offset
of impact fees for affordable housing be and hereby is repealed, together with all administrative
regulations pertaining thereto; provided, however, that said Article IX and its associated
administrative regulations shall remain in effect for those eleven(11)projects which have received
preliminary planning approval and have financially relied upon receiving an offset of fees under the
Program,which eleven(11)projects are more particularly described on"Exhibit A" attached hereto
and incorporated herein by this reference.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
February,A.D. 1999,and to be presented for final passage on the 16th day of February,A.D. 1999.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 16th day of February, A.D. 1999.
Mayor
ATTEST:
City Clerk
EXHIBIT A
• DEVELOPMENT PROJECTS TO WHICH THE OFFSET OF IMPACT FEES
FOR AFFORDABLE HOUSING PROGRAM REMAINS IN EFFECT
CARE Eagle Tree (17 rental units @ 50% AMI, 5 @ 45% & 14 @ 40%)
FCHA, Parkway Townhomes (12 homeownership units @ 50%AMI)
C&A Scenic Views, Saddle Ridge (27 homeownership units @ 80%AMI)
Brandt, Willow Wood (14 homeownership units @ 80%AMI)
Brisben, Buffalo Run(13 rental units @ 40% AMI & 73 @ 50%)
Brisben, Bull Run (35 rental units @ 50%AMI & 141 @ 60%)
FCHA,Via Lopez(33 homeownership units @ 50%AMI)
Habitat for Humanity, Albion Way (1 homeownership unit @ 50%AMI)
Habitat for Humanity, Albion Way (1 homeownership unit @ 50%AMI)
Brisben, Country Ranch (118 rental units @ 60%AMI)
CARE, Windtrail (50 rental units @ 55%AMI)