HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/20/2010 - RESOLUTION 2010-045 ADOPTING THE 2010-2014 AFFORDA DATE: July 20, 2010
STAFF: Joe Frank, Ken Waido _
Megan Bolin
Resolution 2010-045 Adopting the 2010-2014 Affordable Housing Strategic Plan.
EXECUTIVE SUMMARY
This Resolution adopts the 2010-2014 Affordable Housing Strategic Plan and establishes new goals, objectives,
implementation strategies, and policies for the City's affordable housing programs for the next five years. The Plan
identifies the most critical affordable housing needs and establishes funding priorities to help guide decisions regarding
the allocation of City financial resources through the competitive process.
BACKGROUND / DISCUSSION
At a work session on February 23, 2010, staff presented the draft prioritized affordable housing goals. Council
supported the goals and directed staff to proceed with the remaining development of the Strategic Plan. A second
work session was held on May 11, 2010, to present the draft plan in its entirety. Staff was directed to refine the
strategies and coordinate with the Downtown Development Authority and Urban Renewal Authority with regard to
certain policies and implementation strategies.
In 1999, the City of Fort Collins approved its first Priority Affordable Housing Needs and Strategies report that
investigated and evaluated the City's affordable housing inventory, determined existing and future housing needs for
low income families,and identified populations with the most urgent need for affordable housing.The first report was
updated in 2004. The Strategic Plan is an update to the 2004 report, based on new data. The new data and
information provide a clearer picture for new priorities and goals for affordable housing development in Fort Collins.
The Strategic Plan was developed by staff with the assistance of a subcommittee composed of members from the
Affordable Housing Board (Ben Blonder and Mike Sollenberger) and the Community Development Block Grant
(CDBG) Commission (Kay Rios and Jeff Taylor).
The foundation for the Strategic Plan is the affordable housing needs and supply data contained in the Larimer County
Housing Needs Assessment(Housing Needs Assessment)prepared for Larimer County and the cities of Fort Collins
and Loveland by the consulting firm, Community Strategies Institute (CSI), in September 2009. The CSI study was
financed through a grant from the Colorado Department of Local Affairs and the Division of Housing, with matching
funding provided by Fort Collins and Loveland. The CSI data and information were used to formulate a more current
context of the local housing market and demographics of Fort Collins.
Strategic Plan Summary
The Strategic Plan prioritizes the affordable housing needs of the City and establishes goals for the next five years.
The four goals, in order of importance, are:
1. Increase the inventory of affordable rental housing units.
2. Preserve existing affordable housing units.
3. Increase housing and facilities for people with special needs.
4. Provide financial assistance for first-time homebuyers.
The Strategic Plan includes a justification for each goal based upon the data reported in the Housing Needs
Assessment. An objective is identified for each, followed by a five-year action plan that categorizes short, medium,
and long-term strategies to accomplish the goal. The Strategic Plan discusses the City's financial resources and how
those are distributed, and estimates potential funding for the next five years. The role of the City of Fort Collins is
addressed with regard to the provision of affordable housing in the community,with the recognition that the City,while
an important player, must have help from other partners in the community to accomplish its affordable housing goals.
July 20, 2010 -2- ITEM 23
The final section of the Strategic Plan contains policies that will guide affordable housing decision-making. Some
policies are new ideas developed as a result of new data and information, while others reiterate existing policies that
continue to be relevant.
Comparison with Previous 2004 Report
At the City Council work session on May 11,2010,staff was directed to provide a side-by-side comparison of the 2004
Priority Affordable Housing Needs and Strategies report and this Strategic Plan. Table 1 lists the priority goals
established in 2004 compared to the goals in the 2010 Strategic Plan.
The primary difference is the level of specificity between the two documents. The 2004 document established very
specific production goals, which were based on the assumption that 2004 federal, state, and local funding would
continue and even increase over time. Unfortunately, funding at all levels has been decreasing, and the national
housing crisis and economic recession have dramatically impeded affordable housing production. Staff and the
subcommittee were careful to stress that the Strategic Plan is not meant to predetermine dollar allocations or commit
the City to certain projects. Because the City uses a competitive process to allocate available funding, the types of
projects requesting funding are not exactly known from one funding cycle to the next, making it very difficult to
accurately predict the number of units that the City will be able to assist financially.
Table 1: Priority Goal Comparison
2005-2009 2010-2014
Goal#1 —Assist very low-income renters[40%and below Area Median Goal #1 - Increase the inventory of
Income (AMI)]. Actively solicit the development of 1,632 units of affordable rental housing units.
affordable rental housing for very low-income family, elderly, or other
households with special needs that currently pay over 30% of their Goal#3-Increase housing and facilities
income for rent. for people with special needs.
Goal #2 — Assist very low-income renters (below 50% AMI). Actively Goal #1 - Increase the inventory of
solicit the development of 2,214 units of affordable rental housing for affordable rental housing units.
very low-income family, elderly, or other households with special needs
that currently pay over 30% of their income for rent. Goal#3-Increase housing and facilities
for people with special needs.
Goal#3—Assist low-income renters (50%to 80%AMI). Actively solicit Not a high priority. There is an excess of
the development of 1,187 units of affordable rental housing for low- rental units affordable to families at the
income family or elderly households that earn between 50% and 80% 50%-60% AMI level and, at 60% AMI,
AMI and currently pay over 30% of their income for rent. rental rates are close to the market rate
rents.
Goal#4—Assist low-income first-time homebuyers(below 80%AMI). Goal#4 - Provide financial assistance fo
first-time homebuyers.
Goal #5 — Motivate developers to increase production of affordable Goal #1 - Increase the inventory of
housing, both for rent and for sale. affordable rental housing units.
Goal#3-Increase housing and facilities
for people with special needs.
Goal#6— Preserve the affordability of existing rental housing. Goal #2 - Preserve existing affordable
housing units.
Goal#7—Preserve existing owner-occupied housing stock. Goal #2 - Preserve existing affordable
housing units.
Goal#8—Require new affordable units to stay affordable for as long as The City Code establishes a 20-year
feasible. affordability minimum.The Strategic Plan
contains a strategy to increase the
minimum to 40 years.
July 20, 2010 -3- ITEM 23
FINANCIAL / ECONOMIC IMPACTS
Financial Impacts
The Strategic Plan indicates that the City may have approximately$7.7 million of financial assistance to allocate to
affordable housing programs/projects through the Competitive Process over the next five years.That estimate is based
on the assumption that current funding levels will remain the same over this time period. Table 2 summarizes the
funding sources and estimated total.
Table 2: Estimated Available Funding for Affordable Housing
Funding Source Annual Allocation 2010-2014 Total
Federal CDBG Entitlement Grant $650,000 $3,250,000
CDBG Program Income* $39,000 $195,000
Federal HOME Program Grant $617,110 $3,085,550
HOME Program Income* $45,000 $225,000
City Affordable Housing Fund $188,890 $944,450
Annual Total $1,540,000 $7,700,000
Source: U.S. Department of Housing and Urban Development and the City of Fort Collins
* Income to the City programs typically received from such activities as loan payoffs.
It is critical that the available resources be used to deal with the most pressing affordable housing needs,with the top
priority being rental units for families earning less than 50%of the Area Median Income(AMI). Establishing priorities
will assist decision-makers in the allocation of funds. The priorities may mean that if there are enough good applicants
seeking funding for rental projects for families below 50% of AMI, they may consume the available funding. Thus,
there may not be any funds remaining to subsidize applicants whose projects are aimed at lower priority needs(e.g.,
homeownership programs).
The Strategic Plan is not meant to predetermine dollar allocations or commit the City to certain projects; rather, it
provides a flexible framework of prioritized needs so that issues may be addressed as they arise.
Economic Impacts
The provision of affordable housing is more than a social issue; a lack of affordable housing affects the community
as a whole. The amount of household income required to pay for housing costs dictates the remaining budget. Paying
too much for housing necessitates difficult trade-offs between other critical expenses such as transportation, food,
medical care, or child care. The overall well being of an individual can be significantly improved with stable housing
conditions, which leads to more stable families and stable neighborhoods. The cost to a community is considerable
if individuals and families are unable to maintain stable housing. Many of the people in public service jobs, such as
teachers,fire fighters, police officers,and health care workers, need affordable housing in the community they serve.
Retail and food industry workers demanded by community consumers also need affordable housing. Employers
looking to locate or remain in Fort Collins consider whether their employees can afford to live near their jobs. By
adopting the Strategic Plan, the City is committing to goals and policies which would create additional housing
affordable to the workers who provide necessary services and contribute to the economic vitality of the community.
ENVIRONMENTAL IMPACTS
Affordable housing is more than a social issue, and has impacts on the environmental health of a community. When
a community lacks affordable housing units,those who work lower-wagejobs are forced to live farther away from their
place of employment, known as the "drive until you qualify" phenomenon. That situation leads to increased traffic
congestion and associated air pollution from the many workers needing to commute longer distances to work each
day.
July 20, 2010 -4- ITEM 23
The Strategic Plan also recognizes the importance of green building technology and the benefits of providing energy
savings to low-income households. The application for competitive process funding has included a question about
whether or not the project includes green building elements,and the Strategic Plan includes a policy that will continue
to encourage and give preference to such projects.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BOARD/COMMISSION RECOMMENDATION
The Affordable Housing Board conducted a public hearing for the Strategic Plan on June 3, 2010. At its regular
meeting on July 1,2010,the Board voted unanimously to recommend that Council adopt the 2010-2014 Strategic Plan.
The CDBG Commission also conducted a public hearing for the Strategic Plan on June 3, 2010. The Commission
has not had an opportunity to formally vote on the Plans, but all Commission members were contacted via email and
all have expressed their support for the Plans and their desire that the Council approve both the 2010-2014 Affordable
Housing Strategic Plan and the 2010-2014 Consolidated Plan.
PUBLIC OUTREACH
Critical to the development of the Strategic Plan was the extensive involvement of key stakeholders, including public
and non-profit affordable housing agencies and public/human service agencies and organizations.The Strategic Plan
was made available for public review throughout the month of May. No comments from the public were received.The
Affordable Housing Board provided input throughout the development of the plan, and held a public hearing on June
3, 2010 to invite formal discussion of the plan with the public.
ATTACHMENTS
1. February 23, 2010 Work Session Summary
2. May 11, 2010 Work Session Summary
3. Affordable Housing Board minutes, July 1, 2010
f
ATTACHMENT 1
Cityof Advance Planning
[[VV T 281 North College Avenue
Fort Collins 97 Box
.63
Fort Collins,CO 80522
970.221.6376
970.224.6111 -fax
tcgov.com/advanceplanning
February 24, 2010
Memorandum
TO: Mayor Hutchinson and City Councilmembers
TH: Dann Atteberry, City Manage
Diane Jones, Deputy City Manage
FM: Joe Frank, Advance Planning Department Direc
-Ken Waido, Chief Planner
RE: Work Session Summary—February 23, 2010 - The Priority Affordable Housing Needs to
be Addressed in the City of Fort Collins 2010-2014 Affordable Housing Strategic Plan.
Work Session Participants:
Diane Jones, Deputy City Manager
Joe Frank, Advance Planning Department Director
Ken Waido, Chief Planner
Megan Bolin, City Planner
Direction Sought/Question to be Answered:
Does the City Council have any questions or comments regarding the proposed order of priority
affordable housing needs?
Key Discussion Points:
A new 2010-2014 Affordable Housing Strategic Plan is being developed by staff with the
assistance of a subcommittee composed of members from the Affordable Housing Board and the
Community Development Block Grant (CDBG) Commission.
The strategic plan replaces the 2004 Priority Affordable Housing Needs and Strategies report
and will establish new goals, policies, objectives, and implementation strategies for the City's
affordable housing programs for the next five years.
The plan identifies the most critical affordable housing needs and establishes funding priorities
to- help guide decisions regarding the allocation of City financial- resources-through the
competitive process.
art Collins
The draft strategic plan prioritizes the affordable housing needs of the city and establishes goals
for the five-year period of 2010-2014. The four needs, in order of importance, are:
1) Increase the inventory of affordable rental housing.
2) Preserve affordable housing units.
3) Increase housing and facilities for people with special needs.
4) Provide financial assistance for first-time homebuyers.
Council's Direction:
The City Council indicated general support for the priorities of the strategic plan.
Next Steps:
• A draft strategic plan will be completed by the end of March and will be available for
public review.
• The public review and comment period will last the month of April.
• On May 11, the Council will conduct another work session on the 2010-2014 Affordable
Housing Strategic Plan's goals, policies, objectives, and implementation actions.
• In June, the Council will be asked to consider formal adoption of the 2010-2014
Affordable Housing Strategic Plan.
ATTACHMENT 2
City of Advance Planning
281 North College Avenue
PO Box 580
Fort Collins 9Fort
0 21!6376C0 80522
970.224.6111 -fax
rcgo v.cornMdvanceplanning
MEMORANDUM
DT: May 14, 2010
TO: Mayor and City Council Members
TH: Darin Atteberry, City Manage
Diane Jones, Deputy City Manage
FM: Joe Frank, Advance Planning Direefo
-Ken Waido, Chief Planner/7/
Megan Bolin, City Planner
RE: May 11, 2010 Work Session Summary—2010-2014 Affordable Housing Strategic Plan
Council members present included Mayor Doug Hutchinson, Ben Manvel, Lisa Poppaw, Aislinn
Kottwitz, Wade Troxell, Mayor Pro Tem Kelly Ohlson, and David Roy. Staff members present
included Diane Jones,Joe Frank, Ken Waido, and Megan Bolin. Also present was Ben Blonder,
chair of the Affordable Housing Board.
The purpose of the work session was to discuss the draft 2010-2014 Affordable Housing
Strategic Plan, and the proposed policies and strategies contained therein. Staff provided an
overview of the topics to be discussed, which included key policies and strategies proposed in
the plan, and four additional policies that had been removed by staff but that the Affordable
Housing Board and Community Development Block Grant (CDBG) Commission wanted
reinstated. In the overview, staff also acknowledged that the Downtown Development
Authority(DDA) had not been contacted regarding certain policies that affect their operations,
and confirmed that staff would be meeting with DDA staff and the Board prior to bringing the
Strategic Plan back to Council to consider adoption in June.
The following summarize the questions and comments made by Council Members:
■ Request to know how many affordable housing units have been `lost" over the past 20
years due to the affordability requirement expiring and the units converting to market-
rate.
■ Request to know how many affordable units are approaching the end of their
affordability requirement.
■ Affordable housing units should be located on/adjacent to transit lines. What
percentage of existing units do not currently have direct access to transit?
■ What has the City done to address mobile home parks, and how are they addressed in
this Strategic Plan?
City of
F6rt Collins
■ Are there any best practices that address the loss of affordable units to market-rate
units, e.g. first-right-of-refusal?
■ What are the economic impacts of increasing the period of affordability beyond 20
years?
■ Would it be possible to develop a sliding scale of sorts to address different lengths of
affordability? For example, if a developer provides more units affordable to extremely
low income households (<30%of Area Median Income), then they are only required to
make them affordable for 20 years;then if a developer offers units affordable to very
low income households (<50% of Area Median Income), they are required to keep them
affordable for 30 years, and so on.
■ What is the priority of implementation strategies, and how will they be incorporated
into staff's work program over the next five years?
• What is the total amount of real estate transactions over the past year? Is there a way
to tap into that money and fund the Affordable Housing Fund?
■ It is good to include options for a potential source of funding for the Affordable Housing
Fund—think outside the box.
■ Provide a complete listing of all significant changes from the previous 2004 Priority
Affordable Housing Needs and Strategies report to more easily compare that report and
the updated Strategic Plan.
Council supported the key strategies and policies presented; however, the description of the
policy statements between the Agenda Item Summary (AIS) and the Strategic Plan was not
consistent. This was a staff error, and we apologize for the confusion that it caused. Staff will
correct any inconsistencies within the Strategic Plan prior to its presentation to Council for
formal consideration in June.
There were four additional policies that staff had removed from a previous version of the draft.
Although the Affordable Housing Board and CDBG Commission made a formal request to
Council to have the policies reinstated, Council supported staffs justification for keeping them
out of the plan.
ATTACHMENT 3
Affordable Housing Board
Excerpt of Minutes from the July 1, 2010, Meeting
DRAFT
Affordable Housing Strategic Plan:
Mr. Blonder made a motion that the Board make a formal recommendation to City Council to
adopt the 2010-2014 Affordable Housing Strategic Plan. Mr. Sollenberger seconded the motion.
Motion passed: (6-0).
Waido added that staff wanted to express their appreciation to the subcommittee for their work.
RESOLUTION 2010-045
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE 2010-2014 AFFORDABLE HOUSING STRATEGIC PLAN
WHEREAS, in 1999 the City Council adopted the first Affordable Housing Needs and
Strategies Report, which Report was updated in 2004; and
WHEREAS, since 2004, new data and information has allowed City staff, assisted by
members of the Affordable Housing Board and the Community Development Block Grant
Commission,to develop new priorities and goals for affordable housing development in Fort Collins;
and
WHEREAS, at a work session on February 23, 2010, the City Council reviewed the draft
affordable housing goals and directed staff to proceed with development of a new Affordable
Housing Strategic Plan (the "Strategic Plan"); and
WHEREAS,the City Council reviewed the Strategic Plan at another Work Session on May
11, 2010; and
WHEREAS, the Strategic Plan prioritizes the affordable housing needs of the City and
establishes four goals for the next five years: increasing the inventory of affordable rental housing
units;preserving existing affordable housing units;increasing housing and facilities for people with
special needs; and providing financial assistance for first-time homebuyers; and
WHEREAS, the Strategic Plan also recognizes that the City must have help from partners
in the community to accomplish its affordable housing goals.
WHEREAS,the Affordable Housing Board(the"Board")conducted a public hearing for the
Strategic Plan on June 3, 2010, and at its regular meeting on July 1, 2010, the Board voted
unanimously to recommend that the City Council adopt the Strategic Plan; and
WHEREAS, the Community Development Block Grant Commission (the "Commission")
conducted a public hearing for the Strategic Plan on June 3,2010,and at its regular meeting on July
8,2010,the Commission voted unanimously to recommend that the City Council adopt the Strategic
Plan; and
WHEREAS, the City Council has determined that it is in the best interests of the City that
the Strategic Plan be adopted.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the 2010-2014 Affordable Housing Strategic Plan, dated July 20, 2010, attached as
Exhibit"A" and incorporated herein by reference, is hereby adopted.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 20th
day of July A.D. 2010.
Mayor
ATTEST:
City Clerk
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EXHIBIT A
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PLANNING DEVELOPMENT - • - •
Affordable Housing
g 2010 = 2014
City of
Affordable Housing Strategic Plan 2010 = 2014
July 20 , 2010
Advance Planning
281 North College Avenue
Fort Collins , CO 80524
970 - 221 - 6376
fc.gov. com / affordablehousing
For additional copies , please visit our website ,
or contact us using the above information .
City of
Fort Collins
AFFORDABLE HOUSING STRATEGIC PLAN
TABLE OF CONTENTS
Section1 - Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1 ) Increase the inventory of affordable rental housing units . . 1
2 ) Preserve existing affordable housing units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 ) Increase housing and facilities for people with special needs . . . . . . . . . . . . . . . . . . . . . . . . 2
4 ) Provide financial assistance for first - time homebuyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
About The 2010 - 2014 Affordable Housing Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section2 - Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Section3 - Financial Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3 . 1 Federal Grants and City General Fund Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3 . 2 Allocation of Financial Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3 . 3 Private Activity Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3 . 4 Development Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Section 4 - Goals , Objectives and Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4 . 1 Goal : Increase the Inventory of Affordable Rental Housing Units . . . . . . . . . . . . . . . 14
4 . 2 Goal : Preserve Existing Affordable Housing Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4 . 3 Goal : Increase Housing and Facilities for People with Special Needs . . . . . . . . . . . 21
4 . 4 . Goal : Provide Financial Assistance for First - time Homebuyers . . . . . . . . . . . . . . . . . a22
Section 5 - Partners in Affordable Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
5 . 1 Private For - Profit Developers . . . . . sees a a so a a so a a a a a a a a a a a a a a so a a so a a a a a a a a a a a a a as a a as a a 25
5 . 2 Private Non - Profit Developers . . . . ease ease ease ease ease ease * assess * * assess sees sees sees so 25
5 . 3 Private Non - Profit Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
5 . 4 Fort Collins Housing Authority . . . . . ease ease ease ease ease ease ease ease ease ease ease ease ease 26
5 . 5 Financial Institutions . . . ease a a a a a a a a a a a a a a a a a a a a a a a a a a a a a as a sea a see Goes 0 27
Section 6 - Recommended Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section7 - Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Appendix A - 2009 Health and Human Services Poverty Guidelines . . . . . . . . . . . . . . . . . . 35
Appendix B - Citizen Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Appendix C - Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
i
AFFORDABLE HOUSING STRATEGIC PLAN
LIST OF TABLES
Figure 1 : Estimated Available Funding for Affordable Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figure 2 : 2009 Area Median Income (AMI ) Equivalencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 3 : Acquisition and Rehabilitation Potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 4 : New Construction Production Potential for Various Subsidy Levels . . . . . . . . . . . 15
Figure 5 : Five - Year Implementation Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 6 : City of Fort Collins ' Publicly -Assisted Affordable Housing Inventory . . . . . . . . . 18
Figure 7 : Map of Affordable Housing Locations in Fort Collins . . . . 0000 00 19
Figure 8 : Five - Year Implementation Strategies / Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure 9 : Five - Year Implementation Strategies / Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Figure 10 : First - time Homebuyer Assistance at Various Subsidy Levels . . . . . . . . . . . . . . . . . . 23
Figure 11 : Five - Year Implementation Strategies / Action Plan . . * a a a a a a a a a a a a a a * a a a a a a a a a a a a 24
Figure 12 : 2009 Poverty Guidelines for the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Figure 13 : Equivalency of AMI levels to Levels of Poverty and
the Maximum Affordable Monthly Rent . . . . . sees . . . . . . . . . . . . . . . . . . . . . . . . . . . sees . . 36
ii
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 1 Gf, .
Executive Summary
The purpose of this Affordable Housing "_ �� J
Strategic Plan is to establish goals and +r
strategies for the City of Fort Collins ' oil
affordable housing programs for the five - year
period of 2010 - 2014 . Based on the most
significant affordable housing needs , four
goals have been identified and prioritized as -
follows :
1 ) Increase the inventory of affordable rental
housing units
2 ) Preserve existing affordable housing units
H ,
3 ) Increase housing and facilities for people
with special needs
4 ) Provide financial assistance for first - time
homebuyers
The top picture shows the Villages
1 ) Increase the inventory of on Stanford before rehabilitation .
affordable rental housing units Fort Collins Housing Authority
purchased this privately-owned,
Fort Collins ' highest priority should be to multi-family apartment complex
increase the inventory of rental housing units originally constructed in 1969 .
affordable to households earning 50% and The lower picture reveals the
below of the Area Median Income (AMI ) . completed rehabilitation, a stellar
Within this rental housing category , the first example of how to add additional
priority is for units for households earning less units to Fort Collins ' housing
than 30% of AMI , with a second priority for inventory. The City contributed
households earning between 31 % and 50% of over $ 1 million to convert the 82
AMI . According to the Lorimer County Housing units into permanent affordable
Needs Assessment (completed by Community housing. This project is also an
Strategies Institute in 2009 ) a deficit of 5 , 009 excellent example of green
affordable rental units was found for the 0 - building breakthroughs new to
30% AMI level , and an additional deficit of multi-family housing, including
1 , 187 affordable rental units was identified solar reflective roofs, photovoltaic-
for the 31 - 50% AMI level . powered constant flow fans, and a
net-zero energy 1 , 200 square foot
clubhouse .
.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . .
EXECUTIVE SUMMARY 1
AFFORDABLE HOUSING STRATEGIC PLAN
2 ) Preserve existing affordable housing
units
Citypolicy mandates all affordable housing units
P Y g
built with public assistance remain affordable for
a minimum period of 20 years . As the housing
stock continues to age , the City should be vigilant
about those projects approaching that 20 -year
mark . The current number of affordable housing
units must remain in the affordable inventory
rather than converting to market rate units .
Periodic rehabilitation of these units will be
necessary so they can compete with other newer CARE Housing is a primary , local ,
units . The Larimer County Housing Needs non - profit provider of newly-
Assessment reports that of Fort Collins ' total constructed affordable housing .
housing units , 6 , 262 , or 11 . 8% , were built before Windtrail is pictured here and
1960 . With the number of new building permits offers 40 units for low income
showing a sharp decline , and considering the cost families , and 10 units for low
of building new affordable units , attention should income seniors .
be given to the rehabilitation of existing units and
preserving their affordability for the long - term .
3 ) Increase housing and facilities for
people with special needs
This broad category of " special needs " includes ,
homeless people , victims of domestic violence ,
people with substance abuse issues , persons with
physical and mental disabilities , and seniors .
These groups often require housing units tailored
to their specific needs are not those typically
provided by market - driven development . Many
times a network of support services is needed to
keep these populations stable and independent . A Harmony Road Apartments is a 23 -
point - in - time study conducted by the Homeward unit accessible , affordable rental
2020 project in March 2010 , found 518 homeless project is for very low income
people in Fort Collins , with an additional 617 adults with physical disabilities
people at risk of becoming homeless . Another built by Accessible Space , Inc .
survey conducted by the Poudre School District ,
also in March 2010 , found 808 homeless children
attending school in Fort Collins . Larimer County is
expected to gain over 35 , 000 residents between age 62 - 75 by the year 2025 , and over
16 , 000 age 75 + . Many people in these age groups have limitations in mobility and self-
care . In Fort Collins , there are 6 , 675 individuals with a sensory disability , 7 , 128 with a
physical disability , and 6 , 424 with a mental disability .
2 EXECUTIVE SUMMARY
AFFORDABLE HOUSING STRATEGIC PLAN
4 ) Provide financial assistance for first -
time homebuyers
Fort Collins should continue to help first - time �-- _ -
homebuyers earning 80% and below of AMI achieve ■
affordable homeownership . Good homebuyer _
counseling , fixed - rate mortgage products and I+_
down payment assistance can assure certain rental
households can become homeowners for the long A�i
-
term . Renters who enter homeownership open up
rental units and thereby increase the supply of
such units . There are 4 , 550 renter households in This Habitat for Humanity home
Fort Collins with incomes between 51 - 80% of AMI in Rigden Farm helps low income
that could benefit from such homebuyer
assistance . families achieve affordable
homeownership in addition to the
About The 2010 - 2014 Affordable Housing City 's Homebuyer Assistance
Strategic Plan Program.
This document takes these four goals and layers
them on recent data and findings reported in the
Larimer County Housing Needs Assessment .
Strategies , organized as an action plan , and
objectives are identified as they relate to the
above goals , concluding with recommendations for
policies necessary to achieve the goals .
-
o 1 . 6h F
Volunteers of America 's
Sanctuary Apartments is a 60-
unit affordable rental project
offers independent living for
seniors aged 62 years and over.
.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . .
EXECUTIVE SUMMARY 3
AFFORDABLE HOUSING STRATEGIC PLAN
................................................................................................................................................................................................................... ... .. . .. . .. . .. . .. . .. . .. . 0
4 EXECUTIVE SUMMARY
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 2
Introduction
The City of Fort Collins remains committed to affordable housing through its ongoing
efforts to encourage construction of new affordable rental units , to preserve existing
affordable units , to provide first - time homebuyer assistance , and to educate the
public about the need for affordable housing . With this philosophy as the foundation ,
the Affordable Housing Strategic Plan was created to establish goals and strategies to
direct valuable resources over the coming years . The purpose of this plan is to guide
future decisions regarding funding and policy for the development of affordable
housing . It is not meant to predetermine dollar allocations or commit the City to
certain projects ; rather , it provides a flexible framework of prioritized needs so issues
may be addressed as they arise .
Affordable housing is a critical asset contributing to the social , economic , and
environmental sustainability of a community . The amount of household income
required to pay for housing costs dictates the remaining budget . Paying too much for
housing necessitates difficult trade - offs between other critical expenses like
transportation , food , or medical care . The overall wellbeing of an individual can be
significantly improved with stable housing conditions , which leads to more stable
families and stable neighborhoods . When a community lacks in affordable housing
units , those who work lower - wage jobs are forced to live farther away from their
place of employment , known as the " drive until you qualify " phenomenon . That
situation leads to increased traffic congestion and associated air pollution for a
community , not to mention the economic impact if potential employers who are
unable to find workers in a community decide to locate elsewhere .
The City of Fort Collins ' role in the provision of affordable housing can be summarized
in four essential components : policy , regulation , education , and funding .
Through its policies , the City creates an atmosphere encouraging a balance of housing
types and costs , so all of its citizens can have the opportunity to live in safe and
affordable housing . Its policies should encourage both the construction of new and
preservation of existing affordable housing .
In regulation , the City ' s role is to eliminate barriers to the development of affordable
housing . One positive action the City can take is to expedite the process for
developing affordable housing . It should review all new and existing regulations that
could discourage production of affordable housing , whether they are land use ,
building code , engineering , tax code , or other regulations . Whenever possible , those
regulations should be revised so that they do not discourage affordable housing .
Revisions might be generally applicable to all residential development or specifically
targeted to affordable housing projects only .
INTRODUCTION 5
AFFORDABLE HOUSING STRATEGIC PLAN
In education , the City ' s role is to expand awareness and understanding to the general
public , as well as to developers and those who access services , about the benefits of
affordable housing to the community . To do that , it needs to thoroughly understand
the community ' s need for affordable housing and must put a face to the people that
need such housing . The City should also market the development incentives and
financial assistance programs it operates to encourage production or rehabilitation of
affordable units .
Through the City ' s funding and other incentive programs , its role is to be an early
piece of the funding puzzle , and help affordable housing providers leverage the
balance of financing needed to complete their projects from private , foundation ,
state , federal , or other sources .
The City of Fort Collins approved its first report , Priority Affordable Housing Needs
and Strategies , in 1999 . Updated in 2004 , the report investigated and evaluated Fort
Collins ' affordable housing inventory , determined existing and future housing needs
for low income households , and identified populations with the most urgent need for
affordable housing . Based on new data and information , this plan updates the 2004
report and provides a more current framework for new priorities and goals for
affordable housing development in Fort Collins .
This plan 's foundation is based on the Larimer County Housing Needs Assessment
prepared by Community Strategies Inc . in September 2009 . A copy of this report in its
entirety is available on fcgov. com / affordablehousing . The Larimer County Housing
Needs Assessment confirmed Fort Collins is certainly in need of additional units
affordable to low income households . ' Need is determined by a number of factors ,
including the number of households that are cost - burdened , the age of the housing
stock , the number of overcrowded households , and the number of homeless .
The recent real estate downturn has been advantageous for those able to take
advantage of low interest rates to buy homes . Many others , however , have lost jobs
and can no longer afford prevailing market rate rents . Many low income households
are forced to pay much more than they can afford for housing . Those that pay more
than 30% of their household income for housing expenses ( rent / mortgage and utilities )
are considered " cost burdened . " In Fort Collins , approximately 4 , 000 low income
owner occupied households and 12 , 000 low income renter households pay more than
30% of their household income for housing expenses Furthermore , approximately
3 , 000 low income owner occupied households and 8 , 000 low income renter households
pay more than 50% of their income towards their housing .
The measure of a community ' s need for affordable housing goes further and considers
the age of the housing stock . Approximately 12 % of Fort Collins ' housing units were
built before 1960 ; these older units are often in need of health and safety repairs
Low income refers to households at and below 50% of Area Median Income .
2 Community Strategies Institute , Lorimer County Housing Needs Assessment, 37 .
3 Community Strategies Institute , Lorimer County Housing Needs Assessment, 39 .
6 INTRODUCTION
AFFORDABLE HOUSING STRATEGIC PLAN
Overcrowding is another gauge of housing need , and the Larimer County Housing
Needs Assessment reports approximately 550 households are considered overcrowded
by U . S . Department of Housing and Urban Development ' s standards . 4 Finally , a
community ' s need for affordable housing is evidenced by the number of homeless
persons . A point - in - time study conducted by Homeward 2020 (March 2010 ) found 518
homeless persons in Fort Collins , with an additional 617 at risk of becoming homeless .
The Larimer County Housing Needs Assessment data and information provides a more
current context of the local housing market and demographics of Fort Collins . Using
that information , this plan establishes goals , objectives , strategies , policies , and
funding priorities to address the community ' s affordable housing supply deficiency .
4 Households with greater than 1 . 0 person per room are considered overcrowded .
INTRODUCTION 7
AFFORDABLE HOUSING STRATEGIC PLAN
. .. . .. . .. . .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. ... ... ... ... ... ... ... ... ... ...........................0. . .. . .. . .
8 INTRODUCTION
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 3
Financial Resources
3 . 1 Federal Grants and City General Fund Budget
The City of Fort Collins has three sources of funds available to provide financial
assistance to affordable housing programs and projects :
■ Federal Community Development Block Grant ( CDBG ) Entitlement Grant
■ Federal Home Investment Partnership ( HOME ) Participating Jurisdiction Grant
■ City General Fund Budget Affordable Housing Fund (AHF )
Assuming the FY 2009 CDBG and HOME grant amounts and the 2010 City budget
allocation to the AHF remain the same for the next five years , and assuming the
current policies for allocation of these funding sources for affordable housing remain
the same ( that is , 65 % of CDBG funds , 90% of HOME funds , and 100% of the AHF ) , then
a total of approximately $ 1 , 540 , 000 should be available annually for affordable
housing programs and projects , or a total of $ 7 , 700 , 000 for the 2010 - 2014 period
covered by this plan . Figure 1 summarizes the available funding .
These funds should only be used in projects able to leverage money from private ,
foundation , state , and / or other federal sources in order to support the complex
systems of housing , public / human services , and community infrastructure .
FIGURE 1 : ESTIMATED AVAILABLE FUNDING FOR AFFORDABLE HOUSING
Source : U . S . Department of Housing and Urban Development and City of Fort Collins .
FUNDING SOURCE ANNUAL 2010 - 2014
ALLOCATION TOTAL
Federal CDBG Entitlement Grant $ 650 , 000 $ 3 , 250 , 000
CDBG Program Income $ 39 , 000 $ 195 , 000
Federal HOME Program Grant $ 617 , 110 $ 3 , 085 , 550
:. - - - - --- --- --- - - - - --- --- --- -- -- - - -- --- -- -- --- --- -- --- --- --- - - - - -- - -- - --- -- -- . .. . .. . .
HOME Program Income $457000 $2257000
: .. ... ... ..... ... ... ... ... ... ........ ... ... ... . .. . .. ........ ... .. . . . .. . .. . .. . . . . ...................... ... ... ... ... . ... .... ...
City Affordable Housing Fund $ 188 , 890 $ 944 , 450
:................ .-..-..-................-----
Annual Total $ 1 , 540 , 000 $ 7 , 700 , 000
-------------------------------------------------------------------------------------------------------------------- --- --- --- --- --- -- --- --- --- --- --- -- ---------------------------------
... .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FINANCIAL RESOURCES 9
AFFORDABLE HOUSING STRATEGIC PLAN
3 . 2 Allocation of Financial Resources
The City currently allocates its financial resources through a competitive process with
two funding cycles each year ; one in the spring and one in the fall . The competitive
process evaluates applications for funding based on the City ' s priority affordable
housing needs and on priorities established in this plan . Proposals which receive
funding are determined to be the best of those in competition for the available funds
during any particular cycle . Too often , the amount of requested funding exceeds the
level of funding available during a cycle . Thus , not every application receives funding ,
and some applications will not receive the full amount requested .
The spring cycle typically allocates affordable housing funding available from the
federal CDBG Entitlement Grant . Human / public service programs also receive
allocations in the spring cycle from the CDBG Grant and the City ' s Human Services
Program . The fall cycle of the competitive process typically allocates affordable
housing funding from the federal HOME Participating Jurisdiction Grant and the City ' s
AHF . The AHF gives the City tremendous flexibility because it is not hindered with
federal guidelines , regulations , and reporting requirements . It also shows a local
commitment to financially support affordable housing programs .
3 . 3 Private Activity Bonds
Private Activity Bond ( PAB ) financing is another potential funding source for the
development of affordable housing . The City ' s current PAB allocation is a little over
$ 6 . 1 million . Larimer County and the State of Colorado have additional PAB
allocations available from which Fort Collins projects could also apply . Although every
project is different , the City could provide PAB assistance to help fund about 50% of a
project ' s cost . There are other potential uses for PAB financing , especially for
economic development purposes , but the City could give preference to affordable
rental housing projects when allocating its PABs . The expense of PABs makes them
very difficult to use to build housing for very low income renters ( less than 50% of
AMI ) . They do , however , work for projects affordable to households earning between
50% and 60% of AMI , an income range where there is currently not a high priority need
for additional units . However , affordable units at the 50% - 60% AMI level are often
needed to help assure an affordable project will cash flow and entice both non - profit
and for- profit developers to build mixed - income projects .
10 FINANCIAL RESOURCES
AFFORDABLE HOUSING STRATEGIC PLAN
3 . 4 Development Incentives
In addition to financial assistance through the competitive process , the City offers a
variety of development incentives to those building qualified affordable housing
projects . To be considered " qualified " a project must offer at least 10% of the total
units to households earning 80% or less of AMI . If it meets that definition , the project
is eligible to receive the following :
Impact Fee Delay
Impact fees are typically paid at the time building permits are issued . This incentive
allows the developer to delay the payment of those impact fees until a certificate of
occupancy is issued , or December 1 of that year , whichever happens first .
Development Review Fee Waiver
All projects are required to pay fees related to the review of the project . This
incentive waives those fees based upon the percentage of affordable units being
offered in a project . For example , if a developer plans to make 40% of the dwelling
units affordable , 40% of that project's development review fees are completely
waived .
Administrative Construction Fee Waiver
Certain construction fees are exempt for affordable housing projects , including
construction inspection fees , development construction permit fees , right - of - way
construction license fees , and street cut fees . The formula for this fee waiver is the
same as the Development Review Fee Waiver .
Priority Processing
Affordable housing projects are eligible to receive an expedited development review
and permitting process .
Density Bonus
Affordable housing projects proposed in the Low Density Mixed - Use Neighborhood
( LMN ) zone are eligible to increase the maximum allowed density from 8 to 12
dwelling units per acre .
These development incentives were intended to reduce regulatory barriers and
financial costs to developers of affordable housing . Established over ten years ago ,
these should be compared to best practices of other communities , and reevaluated to
assess their effectiveness . A recent analysis of a residential development in Fort
Collins indicates the City ' s incentives , by themselves , are not sufficient to entice
developers to include affordable housing in their development proposal .
.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . .
FINANCIAL RESOURCES 11
AFFORDABLE HOUSING STRATEGIC PLAN
............................................................................................................................................................................................................................................
12 FINANCIAL RESOURCES
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 4
Goals , Objectives and Strategies
Based upon the demand for affordable housing , four primary goals have been
identified and prioritized to guide future funding and policy decisions :
1 ) Increase the inventory of affordable rental housing units
2 ) Preserve existing affordable housing units
3 ) Increase housing and facilities for people with special needs
4 ) Provide financial assistance for first - time homebuyers
The City defines what is considered " affordable " based upon income . Each year , the
U . S . Department of Housing and Urban Development ( HUD ) provides annual income
limits for the Fort Collins / Loveland Metropolitan Statistical Area ( Larimer County ) .
Figure 2 provides information on the equivalency of Area Median Income (AMI ) levels
to HUD classifications and the maximum affordable monthly rent . Another common
measure is the Department of Health and Human Services poverty guidelines .
Appendix A provides more detail about how the poverty guidelines are established ,
and how they relate to HUD ' s income classifications .
FIGURE 2 : 2009 AREA MEDIAN INCOME (AMI ) EQUIVALENCIES
Source : U . S . Department of Housing and Urban Development
MAXIMUM AFFORDABLE
HUD CLASSIFICATION PERCENT OF AMI AMI5 MONTHLY RENT
Moderate Income 100% $757200 $ 1 , 752
Low Income 80% $ 60 , 150 $ 1 , 376
----------- ---- ---- ------ -------- ---- ----
Low Income 60% $45 , 120 $ 17000
Very Low Income 50% $ 37 , 600 $812
............................................................................ . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... . . . . . ................... .. ....... .. .... .....----------------------- .............................................'
Extremely Low Income 30% $ 22 , 550 $436 -
-------------------------------------------------------------------- ------------------------------------- -------------------
The upcoming sections provide justifications for each goal based upon the data
provided in the Lorimer County Housing Needs Assessment . Objectives are established
for each goal based upon the anticipated amount of funding over the next five years .
Finally , strategies are identified and arranged as an action plan to provide specific
actions needed to accomplish each goal .
5 Annual income for a household of four .
GOALS OBJECTIVES & STRATEGIES 13
AFFORDABLE HOUSING STRATEGIC PLAN
4 . 1 Goal : Increase the Inventory of Affordable Rental Housing Units
The first priority should be to increase the inventory of affordable rental units , which
can be accomplished through two different methods . New affordable rentals could be
constructed by non - profit agencies or for- profit developers and added to the
inventory . Additions to the inventory of affordable rental units could also be
accomplished through the acquisition of former market rate or mixed rental rate units
usually located in apartment complexes . Such purchases will typically entail some
level of rehabilitation . Acquisition and rehabilitation projects , especially by non -
profit agencies , generally provide the opportunity to restrict the rent levels for longer
periods of time than can be achieved with new construction projects by for- profit
developers .
4 . 1 . 1 Justification
The need for additional rental units for most income levels is identified in the Larimer
County Housing Needs Assessment ; however , the greatest deficit of 5 , 009 affordable
rental units was found for the 0 - 30% AMI level . 6 A significant deficit of 1 , 187
affordable units was also identified for the 31 - 50% AMI income level . Creating new
units affordable to households earning below 50% AMI is very difficult under current
market conditions for Fort Collins without substantial public subsidy .
4 . 1 . 2 Objective
Produce as many new rental units affordable to households earning 50% and less
of AMI as possible , given available funding .
As mentioned , units may be added to the inventory through the acquisition and
rehabilitation of formerly market - rate units . Figure 3 shows the number of very low
income units that could be added to the inventory by this method given available
funding . Note the number of units is calculated as if all of the funding was given for
rehabilitation ; it does not take into consideration funding for the other priority goals .
Actual allocations will depend upon the applications received during the cycles of the
competitive process and the applicant ' s ability to leverage other financial resources
to support the project .
FIGURE 3 : ACQUISITION AND REHABILITATION POTENTIAL
Source : City of Fort Collins Advance Planning Department
PUBLIC SUBSIDY PER UNIT ANTICIPATED 5 - YEAR TOTAL POTENTIAL NUMBER OF
FUNDING UNITS
.. ... .. ... ... ... ... ... .. . .. . .. ... ... ... .. ... . .. . .. ... ... .. ... ... ...................................................... ------.. ... .. . .. . ... .. ... ... ... .. . .. . .. ... ... ... ... ... .. . .. . .. ... ... .
$ 19 , 000 $ 7 , 700 , 000 405
- - - - - - - - - - - - - - _ - - - - - -- - - -- -- ---- --- --- -_ . -- --- -- --- --- -- -- --- -
6 Community Strategies Institute , Lorimer County Housing Needs Assessment, 48 . The study did not
reveal the types of units needed , e . g . studios , one - bedroom , etc .
14 GOALS OBJECTIVES Et STRATEGIES
AFFORDABLE HOUSING STRATEGIC PLAN
New construction is the other way to add units to the inventory . The subsidy needed
to build very low income rental units could range from about $ 15 , 000 to $ 30 , 000 per
unit . The lower the income category , generally the greater the subsidy required to
make it affordable under current market conditions . Figure 4 illustrates the number
of units that could be built depending on the level of public subsidy contributed . Like
the previous table , the number of units is calculated as if all of the funding was put
towards a particular subsidy group .
FIGURE 4 : NEW CONSTRUCTION PRODUCTION POTENTIAL FOR VARIOUS SUBSIDY LEVELS
Source : City of Fort Collins Advance Planning Department
PUBLIC SUBSIDY PER ANTICIPATED 5 -YEAR POTENTIAL NUMBER OF
UNIT TOTAL FUNDING UNITS
$ 30 , 000 $ 7 , 700 , 000 257 =
:----.. ...............................................-------------------- --- -. .-. --- ------------------------------ -
$ 15 , 000 $ 7 , 700 , 000 513
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- - --
Even at $ 15 , 000 of subsidy per unit , there are insufficient financial resources likely to
be available to make a significant impact on closing the 6 , 200 unit deficit for
households with incomes below 50% of AMI discussed above . Either additional financial
resources need to be developed or secured , or the City needs to develop additional
non - financial incentives to increase the inventory of affordable rentals for very low
income households . City funding helps leverage other funds from private , foundation ,
and / or other governmental sources . The availability of those additional funds may be
difficult to secure in the near future , which would impact the utilization of City
financial resources .
4 . 1 . 3 Five -Year Strategies/Action Plan
The following strategies are presented to the City of Fort Collins as an action plan to
help implement the goal to increase the inventory of affordable rental housing units ,
and achieve the objective to produce as many new rental housing units affordable to
households earning 50% and less of AMI , given available funding . The action plan is
divided into short term strategies , that is , strategies anticipated to be completed in
2010 or 2011 ; medium term strategies , those to be completed in 2012 or 2013 ; and
long term strategies , those completed by 2014 . The action plan also identifies which
strategies are consistent with ongoing Affordable Housing Program strategies and
which new strategies may require an ordinance adopted by the City Council in order
to be implemented , which strategies can be initiated by a Council resolution adopting
a new City policy or priority , or those that may only need an administrative directive
from the City Manager .
Strategies are expected to be incorporated into Advance Planning ' s departmental
work program during the next five years according to the action plan . However , the
timing of staff work on the strategies will ultimately depend upon the level of staffing
available , prioritization of projects , and resources available to the department .
GOALS OBJECTIVES & STRATEGIES 15
AFFORDABLE HOUSING STRATEGIC PLAN
Figure 5 lists each strategy the City should implement over the next five years and the
action required to accomplish each .
FIGURE 5 : FIVE-YEAR IMPLEMENTATION STRATEGIES
2010 - 2011 STRATEGIES ACTION REQUIRED
_ . . . . . . . . . . . . . . _ _ _ . . . . . . . . . . . .. . .. . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . .. . .. . .. . . . . . _ _ _ _ .. ... ... ... ... .... ... ..- ------ ----- --- --- -.. ..----------
Contribute a significant amount of its financial resources to None , existing and €
increase the affordable rental housing inventory for very low ongoing City
income renters , especially units for households at 50% AMI and function =
below .
--------------------------- ------------------------------------------------------------------------------- -------------------------------------------------------------------- - . . . ... ... . . . . .........---------=
Motivate developers to increase production of affordable rental None , existing and
housing units by providing financial assistance and other ongoing City
development incentives . function
Continue to require publicly - assisted affordable housing carry a None , existing and
minimum 20 - year commitment to affordability . Priority should be ongoing City
given to units intended to be affordable for periods in excess of 20 function
years .
---------------------------- -- - --------- -- -- -- - ---- --- -- -- -- - - -- - - - -- ---- - -- - ----------- -------------- ----------- -- - ------------ - --------------- -- --------------------
Fund housing projects in the competitive process in the form of None , existing and
loans . These loans , when repaid , will provide sources of revenue ongoing City =
for affordable housing in the future . function =
Consider committing City financial assistance early in the project None , existing and €
planning process . This will help developers to leverage the balance ongoing City
of their project financing . function
- - - - - - - - - - - - - - - - _._........... .. ._ - _........- - .. _ _ - - - - - - - - - --- -------------
Consider subsidizing projects containing higher ( greater than 50% Resolution -
AMI ) affordable units only if they also produce a significant number =
of lower ( less than 30% AMI ) units .
-------------------- -- -- - - --- ------ ---- -- ------ - - - ------ - -- - - ----------------------------------------------------------------------------------- - ------------------------------------------------------
€ Use some CDBG , HOME , or AHF dollars to partially finance the None , existing and
acquisition and conversion of existing , market - rate rental units to ongoing City -
affordable housing . function
Starting in 2010 , regularly ( at least every three years ) review and Administrative
update all existing City incentive programs , which include the
current Priority Processing , Development Review Fee Waiver ,
Impact Fee Delay , Density Bonus , and other programs which are
yet to be established .
- - - -- - - - ---- ...........---------..........----------.......... ..........-------.............................................. -------------- .................. ... ......................
Annually review City Land Bank Program properties and determine Administrative =
if the timing is right for those properties to be offered for sale to
provide additional affordable housing units in Fort Collins .
Continue to examine and reform regulatory concerns that could be None , existing and €
barriers to the production of affordable housing . ongoing City =
function
---- ----- ------- -------- --- ----- ---- ----- -- ---- - - -- - --------- - - - ---- - - - - - -- - - - ---- ---- ----- ----------------- - - -
Create a focus group of developers , including both non - profit and Administrative =
for - profit , to determine effective incentives the City could =
implement to encourage low income housing development .
. .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . .. . .. . . . . . . . .. ... ... .. . .. . ... ... ... ......................
16 GOALS OBJECTIVES Ft STRATEGIES
AFFORDABLE HOUSING STRATEGIC PLAN
2012 - 2013 STRATEGIES ACTION REQUIRED
_. ... .. . .. . .. . .. ... .. . .. . .. . .. ... ... ... . . . . . . .. . .. . .. . .. . . ... ... ... ... ... .. ... ... ... ... ... .. ... ... ... ... ... .. ... ... ... ... ... .. ...... ... ... ... .. ......... ... ... .. ... ............ .. ... ... ......... .. .... ------------•
Consider requiring a permanent affordability commitment , or at Ordinance
least increasing the minimum from 20 years to 40 years , if the City
is contributing financial resources to the project .
- ---------------------------=
Give preference to projects that set aside some of their units for Resolution =
very low income tenants under 50% AMI in any competitive
allocation of Private Activity Bonds . _
Consider selling some of the existing Land Bank Program properties Ordinance
in order to facilitate the construction of new affordable housing =
units .
........
2014 - 2015 STRATEGIES ACTION REQUIRED
------------------------------------------------------------------------------------------------------------------------ - - - - - - - - - - - - - - - - - - -------------------------------------------------------------
Using the Downtown Development Authority ' s ( DDA ) Green Grant Administrative
and Facade Grant Programs as models , investigate the
development of a DDA sponsored Affordable Housing Grant
Program , which would incentivize the inclusion of affordable units
in DDA funded residential projects .
- - --- -------- _ _ -- - -----------------------------------
Investigate the potential of requiring mixed - use and residential Administrative
development and redevelopment projects , which request Tax =
Increment Financing (TIF ) assistance from the Urban Renewal
Authority ( URA ) , to provide a minimum percentage of affordable
units . Consider having a minimum number of total units that would
trigger this requirement .
Investigate the potential of requiring commercial projects which Administrative
request TIF assistance from the URA to contribute funding towards
affordable housing development . _
=------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -
4 . 2 Goal : Preserve Existing Affordable Housing Units
Second priority should be to preserve the existing supply of affordable housing units .
City policy mandates all units built with public assistance remain affordable for a
period of 20 years . As the housing stock continues to age , the City should be vigilant
about those projects approaching that 20 - year mark . The current number of
affordable housing units must remain in the affordable inventory rather than
converting to market rate units .
4 . 2 . 1 Justification
Attention should be given to housing projects addressing the need for rehabilitation of
existing housing stock and overcoming deficiencies regarding safety and sanitary
conditions of existing units . The Larimer County Housing Needs Assessment reports
6 , 262 , or 11 . 8 % , of Fort Collins ' housing units were built before 1960 ; often times ,
these units are in need of health and safety repairs . With the number of new building
permits showing a sharp decline in recent years , and considering the cost of building
.. . . . . . . . . . . . . . . . . . . . .. . . . ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GOALS OBJECTIVES Et STRATEGIES 17
AFFORDABLE HOUSING STRATEGIC PLAN
new affordable units , attention should be given to the rehabilitation of existing units
and preserving their affordability for the long - term .
4 . 2 . 2 Objective
Monitor the status of existing affordable housing units and provide assistance as
necessary in order to maintain them as part of the existing inventory .
Figure 6 reports the current number of affordable housing units located within Fort
Collins that received some form of public assistance . Figure 7 shows the location of
the affordable housing developments that have received public assistance .
FIGURE 6 : CITY OF FORT COLLINS ' PUBLICLY-ASSISTED AFFORDABLE HOUSING INVENTORY
Source : City of Fort Collins Advance Planning Department .
AFFORDABLE NUMBER LOCATED
UNIT TYPE IN FORT COLLINS
--- --- --- ----------- --- --- --- --- - -- ------------------------------------------- --- --- --- --- -----------------
Rental 21186
C _ _ __ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __ _
Owner - Occupied 248
-- --.-
Assisted Living 68
.................... ... ... ... ... . .. ..................................... ................... ...........=
Total 2 , 502
:......................................................................_.._..................._.._.........
. .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . .. . .. . . . . . . . .. ... ... .. . .. . ... ... ... .. . .. . .. . .. . .. . .. . .. . .
18 GOALS OBJECTIVES Et STRATEGIES
AFFORDABLE HOUSING STRATEGIC PLAN
FIGURE 7 : MAP OF AFFORDABLE HOUSING LOCATIONS IN FORT COLLINS
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.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . . . . . . . . .. . .. ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GOALS OBJECTIVES Et STRATEGIES 19
AFFORDABLE HOUSING STRATEGIC PLAN
4 . 2 . 3 Five -Year Strategies
FIGURE 8 : FIVE-YEAR IMPLEMENTATION STRATEGIES/ACTION PLAN
2010 - 2011 STRATEGIES ACTION REQUIRED
r------ --- --- --- --- --- -- --- --- --- --- --- -- --- --- --- --- --- -- --- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Continue to require City- assisted affordable housing carry a None , existing =
minimum 20 - year commitment to affordability . Priority should be and ongoing City
given to units intended to be affordable for periods in excess of 20 function =
years .
----
Continue to use CDBG , HOME , or AHF dollars to buy and None , existing
rehabilitate existing privately - owned affordable housing units so and ongoing City
they do not convert to market rate units . Such proposals should be function
given as high a priority as projects producing new units . _
- --- - - --- - - - --- - - - --- - - - -- - - - - - - - - - - - - - ------ ------------- - ------------------------------ ----------- _
€ Continue to make financial resources available for rehabilitation None , existing
purposes of both owner- occupied and rental units . and ongoing City
function =
.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --------------------
2012 - 2013 STRATEGIES ACTION REQUIRED
Consider requiring a permanent affordability commitment , or at Ordinance =
least increasing the minimum from 20 years to 40 years , if the City
is contributing financial resources to the project .
_--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --
Investigate a rental - rehabilitation program for private owners of Ordinance
rental properties requiring an affordability commitment . _
_ - - - -- - - - -- - - -- - - -- - - - - -------------------------------------------------....-------------------------------------
=
Explore the requirement of a "first- right- of- refusal " option for Administrative
non - profit housing organizations when a for- profit developer =
receives financial assistance from the City in order to
rehabilitate / maintain their affordable housing complex.
-___=---------------------------------------------------------------------------------------------------------------- ----- -----------------------------------------------------------------------------------------
'
2014 - 2015 STRATEGIES ACTION REQUIRED
- - -- - ------------- -- - -- -- -- -- -- -- - -- -- -- -- -- -- -- -- -- -- -- -- -- -- - -- -- -- -- -- -- - - -- -- -- -- ----------------- -------------------------------------------------
Investigate a Limited Partnership / Shared Equity ownership Resolution
structure to maintain the affordability of for- sale units . _
Actively encourage the for- profit owners of affordable complexes Resolution =
to sell them to not- for- profit housing organizations . _
............................................................................................................................................................................................................................................
20 GOALS OBJECTIVES Et STRATEGIES
AFFORDABLE HOUSING STRATEGIC PLAN
4 . 3 Goal : Increase Housing and Facilities for People with Special
Needs
The third priority should be to increase housing and facilities for people with special
needs . This broad category includes those who are homeless , seniors , persons with
disabilities , and victims of domestic violence . These groups generally require housing
units tailored to specific needs not typically addressed by market - driven
development . Many times a network of support services is needed to keep these
populations stable and independent .
4 . 3 . 1 Justification
The following illustrates some of the special needs , but does not indicate priority .
Homeless
A point - in - time study conducted by the Homeward 2020 project in March 2010 , found
518 homeless people in Fort Collins , with an additional 617 people at risk of becoming
homeless . Another survey conducted by the Poudre School District , also in March
2010 , found 808 homeless children attending school in Fort Collins . Research has
shown the sooner people can enter a stabilized shelter situation , the sooner they can
start dealing with the other problems that accompany homelessness , which also
decreases costs to providing community services for this population . ' The Larimer
County Housing Needs Assessment recommends a county - wide plan to produce at
least 12 transitional units per year , and suggests single room occupancy housing as a
more effective alternative to traditional homeless shelters .
Persons with Disabilities
This population includes persons with various physical and mental challenges who
more often suffer the negative effects of high housing costs . That problem can be
even more acute for households needing accessible features in their dwelling . In Fort
Collins , there are 6 , 675 individuals with a sensory disability , 7 , 128 with a physical
disability , and 6 , 424 with a mental disability . $ Informant interviews indicated
organizations which provide supportive services or housing for disabled customers do
not have enough low- rent options for the number of people who need them .
Therefore , it is important to expand the supply of housing that is both accessible and
affordable .
Seniors
The Larimer County Housing Needs Assessment identified 1 , 942 seniors earning less
than 50% AMI are paying more than 30% of their gross monthly income on housing ,
which is also known as being " cost burdened . s9 An additional 1 , 061 seniors in the
same income category were identified as paying more than 50% of their income on
Community Strategies Institute , Lorimer County Housing Needs Assessment, 59 .
8 Community Strategies Institute , Lorimer County Housing Needs Assessment, 41 .
9 Community Strategies Institute , Lorimer County Housing Needs Assessment, 43 .
GOALS OBJECTIVES 8t STRATEGIES 21
AFFORDABLE HOUSING STRATEGIC PLAN
housing . For those who are retired and live on fixed incomes , being cost burdened can
significantly impact the ability to pay for health care , food , and other necessary
household costs . Furthermore , the study estimates Larimer County can expect to gain
over 35 , 000 residents between age 62 - 75 between 2005 and 2025 , and over 16 , 000
residents age 75 and older . Many people in these age groups have limitations in
mobility and self - care . Because the largest numbers of seniors live in Fort Collins ,
there will be an impact on the housing market and senior housing choices .
Victims of Domestic Violence
In addition to providing shelter and / or transitional housing for victims of domestic
violence , support services are typically required for this population , including crisis
intervention and counseling . Interviews with providers of shelter and services for this
particular group indicate there are not enough affordable housing options to meet the
demand of their clients . 10
4 . 3 . 2 Objective
Continue to encourage the development of projects that meet the housing and
facility needs of populations within the identified special needs categories .
4 . 3 . 3 Five -Year Strategies
FIGURE 9 : FIVE-YEAR IMPLEMENTATION STRATEGIES/ACTION PLAN
2010 - 2014 STRATEGIES ACTION REQUIRED
Support community initiatives identifying homeless needs None , existing and
and develop action plans to reduce the homeless ongoing City function =
population in Fort Collins , and participate in partnerships
exploring solutions for homelessness .
= - - - - --------------- - ------------
Support projects producing affordable units to serve None , existing and
persons with disabilities , and " cost - burdened " senior ongoing City function
citizens . -
- - - -- - - ---------------------------------------------------------------------------- -------------------- ----------------------------------------------------- - --------------------------------
Support projects providing help , counseling , crisis None , existing and
intervention services , facilities , and transitional housing ongoing City function
to victims of domestic violence .
= ------ -------- -------- -------- -------- -------- --------
4 . 4 . Goal : Provide Financial Assistance for First - time Homebuyers
The fourth priority should be to continue to provide financial assistance for first - time
homebuyers . Fort Collins must continue to help homebuyers earning less than 80% AMI
achieve affordable ownership . Good homebuyer counseling , fixed - rate mortgage
products , and down payment assistance can assure that individuals and families can
become homeowners for the long term . Renters who enter homeownership , in effect ,
10 Community Strategies Institute , Larimer County Housing Needs Assessment , 58 .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . ... ... ... .. . .. . .. . .. . .. . . . .
22 GOALS OBJECTIVES Ft STRATEGIES
AFFORDABLE HOUSING STRATEGIC PLAN
move up the housing chain and open up rental units , thereby increasing the supply of
such units .
4 . 4 . 1 Justification
The Larimer County Housing Needs Assessment affirmed households earning 51 - 80%
AMI are excellent candidates for homebuyer assistance programs . There are 4 , 550
renter households in Fort Collins with incomes between 51 - 80% AMI that could benefit
from such assistance . "
4 . 4 . 2 Objective
Encourage and support assistance to first - time homebuyers .
The City ' s Homebuyer Assistance program currently provides between $ 6 , 500 and
$ 9 , 000 in down payment and closing cost assistance per rental household to become
first - time homeowners . To provide assistance to rental households to purchase the
490 available affordable units would cost between $ 3 , 185 , 000 and $4 , 410 , 000 , or
between 40% and 60% , of the potentially available funding over the next five years .
The average loan amount in 2009 was $ 8 , 093 .
Figure 10 illustrates the number of first - time homebuyers that could be assisted
depending on the level of public subsidy contributed . Note the number of units is
calculated as if all of the expected available $ 7 , 700 , 000 of funding for the 2010 - 2014
period was put towards a particular subsidy group for homeownership . The table ' s
data does not take into consideration funding for the other three higher priority goals
identified in this plan . Actual allocations for the first - time homebuyer program will
depend upon the other higher priority applications received during the cycles of the
competitive process . 12
FIGURE 10 : FIRST-TIME HOMEBUYER ASSISTANCE AT VARIOUS SUBSIDY LEVELS
Source : City of Fort Collins Advance Planning Department
PUBLIC SUBSIDY PER ANTICIPATED 5 -YEAR TOTAL POTENTIAL NUMBER OF
UNIT FUNDING HOUSEHOLDS ASSISTED
$ 9 , 000 $ 77 700 , 000 856
$ 87100 $ 7 , 700 , 000 951
------------------------------------------------------------------
$ 6 , 500 $ 7 , 700 , 000 11184
- --- --- --- -- - -- - ---
Community Strategies Institute , Larimer County Housing Needs Assessment , 36 .
12 As a point of reference , since the inception of the City ' s Homebuyer Assistance in 1995 , an average
of 70 families per year receive assistance .
. .. . . . ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GOALS OBJECTIVES Et STRATEGIES 23
AFFORDABLE HOUSING STRATEGIC PLAN
4 . 4 . 3 Five-Year Strategies
FIGURE 11 : FIVE-YEAR IMPLEMENTATION STRATEGIES/ACTION PLAN
2010 - 2011 STRATEGIES ACTION REQUIRED
Continue to provide loans to eligible households to None , existing and ongoing City
cover down payment and closing costs up to a function =
maximum of 6% of the sales price ( 5% for down =
payment and 1 % for closing costs if there are no =
seller concessions ) offered under the City ' s _
existing Homebuyer Assistance program . Buyers
must make an earnest money deposit of $ 1 , 000 or
1 % of purchase price (whichever is greater ) with
their own funds . This means the overall average
subsidy is about $ 7 , 000 per household .
................................................ ... ................. ... .................... ... ................. ... ........................................... ................................................... ...............
Assistance should be in the form of a loan which is None , existing and ongoing City
paid back in full when the house is either sold , function
transferred out of the buyer's name , rented , or if
buyer seeks another second lien ( like a home
equity loan ) on the property . Added to the
payment (which is also due at sale , rental or
transfer ) is 5 % interest on the principal .
-------------------------------------------------------
2014 - 2015 STRATEGIES ACTION REQUIRED
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................................-----
Investigate a Limited Partnership / Shared Equity Resolution
ownership structure to maintain the affordability
of for- sale units . Explore the possibility of making
this a component of the City ' s Homebuyer
Assistance program .
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
. . . .. ... ... ... ... ... ... ... ... ... ... ... ... ... .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. ... ... ... ... ... ... ..............................................
24 GOALS OBJECTIVES Et STRATEGIES
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 5
Partners in
Affordable Housing
While the City of Fort Collins is an important player in addressing the affordable
housing needs of its citizens , there are other partners that also contribute important
resources . This section briefly discusses the other partners and their roles , because
the City cannot solve all of the community ' s affordable housing needs alone .
5 . 1 Private For= Profit Developers
Generally speaking , for - profit developers build affordable rental housing for the
purpose of owning and operating it . They will maintain ownership of it for at least as
long as their funding sources require it to remain affordable . Some profit is made
from the development and construction of the buildings , but the asset , and the
earnings that come from managing that asset , are the ultimate goal . Once the funding
sources remove affordability restrictions from a project , its for - profit owner may or
may not choose to sell it .
The Low Income Housing Tax Credit ( LIHTC ) program and the available bond financing
have been instrumental in getting for- profits to build affordable rental housing . This
program has also involved private investors in affordable housing production to a
greater extent than ever before . Most of the projects built by for- profits with this
financing mechanism provide housing at the top end of the " affordable " scale - to
households earning 60% AMI . Where competition for tax credits dictates , they may
attempt to reach lower income households . Because of the expense and complexity of
bond financing and tax credits , developers tend to do rental projects of at least 100
units or more .
5 . 2 Private Non = Profit Developers
There are two fundamental differences between for- profit and non - profit developers .
The first , most obvious difference is that non - profits have a charitable purpose . The
other is that non - profits do not distribute corporate profits to shareholders . However ,
that is not to say that they do not earn profits on their projects . Indeed , not - for-
profits must earn money from projects in order to survive and grow . So long as their
profits are reinvested in their charitable purpose , their 501 ( c ) ( 3 ) tax - exempt status is
protected . In addition , most non - profits are able to raise funding from outside sources
to cover administrative and operating costs , in case cash flows from projects do not .
Non - profit organizations are able to access some financing sources not available to
for - profits . Other funding sources may be available to both , but give preference to
non - profits . Non - profits tend to be more willing to mix and match different financing
PARTNERS IN AFFORDABLE HOUSING 25
AFFORDABLE HOUSING STRATEGIC PLAN
sources to make a project as affordable as possible . Therefore , their projects
generally serve lower income households than for- profits . Unfortunately , non - profits
generally do not have the capacity to develop as many affordable housing projects as
for- profits do . " Capacity " refers to the number of staff , the experience of staff , and
to the availability of start - up or predevelopment capital . As a result , their projects
also tend to be smaller in size . Because the competition for 9% tax credits favors the
not - for- profit , they do use that program . In Fort Collins , however , they generally do
not use bond financing .
5 . 3 Private Non = Profit Service Providers
Providing affordable , stable housing for low and very - low income households often
involves more than just putting a roof over people ' s heads . Additionally , some of the
services needed may include : credit and budget counseling , foreclosure intervention ,
life skills training , parenting skills , job training , high school or college level
education , English as a second language , health care , child care , substance abuse
counseling , family counseling , etc . All of these services contribute to a stable and
healthy home . This is especially true for households or individuals who are trying to
escape homelessness . The City of Fort Collins allocates 15% of CDBG program funds
and the City ' s own Human Services Program funds to service providers . In Fort Collins ,
there are a few non - profits trying to coordinate these kinds of services , and others
directly provide these specific services .
5 . 4 Fort Collins Housing Authority
The Fort Collins Housing Authority ( FCHA ) is a quasi - governmental agency created by
the City of Fort Collins . The City Council appoints its Board of Commissioners , but has
no involvement in FCHA ' s day- to - day operations . FCHA ' s basic mission is to own and
operate public housing units and to operate the Section 8 Housing Choice Voucher
program , which subsidizes rents in privately owned rental properties . These programs
are generally the only affordable housing option for households earning less than 30%
AMI . HUD pays FCHA an operating subsidy for its public housing units , so it can charge
only 30% of a household ' s income , and HUD provides the difference up to Fair Market
Rent (which is determined by HUD ) . FCHA inspects the units and administers
payments to the landlords . FCHA has a development subsidiary known as the Fort
Collins Housing Corporation ( FCHC ) allowing them to own an inventory of affordable
housing units .
26 PARTNERS IN AFFORDABLE HOUSING
AFFORDABLE HOUSING STRATEGIC PLAN
5 . 5 Financial Institutions
Since the late 1970s , all federally insured financial institutions ( commercial banks ,
savings banks , and savings and loan associations ) are subject to the Community
Reinvestment Act ( CRA ) . Under this law , such institutions have a continuing and
affirmative obligation to help meet the credit needs of their entire communities ,
including low - and moderate - income neighborhoods , consistent with safe and sound
operation . The federal agencies regulating these institutions are responsible for
evaluating how well each one meets this obligation , and are required to take that
record into account when the institution applies for expansion or restructuring , such
as through a merger or acquisition . The evaluation takes into account the institution ' s
financial capacity and size , legal impediments and local economic conditions and
demographics , including the competitive environment . The assessment does not rely
on absolute standards . Institutions are not required to adopt specific activities or
offer specific types or amounts of credit . Each institution has considerable flexibility
in determining how it can best help meet the credit needs of its entire community .
Many lenders got into the business of mortgage lending to lower income first time
homebuyers because of CRA requirements , but they now see targeted affordable and
minority loans as good business . Most major banks now offer targeted loan products
through more flexible loan terms or underwriting standards and subsidized interest
rates or closing costs . Outreach , education and credit counseling are usually major
components of these efforts . Many also offer lower down payment requirements or
higher maximum debt - to - income ratios to low income borrowers .
Construction and permanent loan financing for affordable rental developments is also
covered in CRA reviews . Most of the large , for- profit , national developers do not get
their loan financing from local banks . CARE Housing , Inc . and the Fort Collins Housing
Authority both have good relationships with area banks allowing them to access
relatively low- interest loans . However , these loans need to be as small a part of
project financing as possible to keep rents as low as possible . Funding Partners for
Housing Solutions , Inc . , has a special niche in the local financial community . It
provides loans , grants , and assistance in accessing other sources of funding to
affordable housing projects . Since it has a fairly small pool of funds to work with , it
has primarily served smaller projects and / or provided bridge financing to projects .
PARTNERS IN AFFORDABLE HOUSING 27
AFFORDABLE HOUSING STRATEGIC PLAN
....................................................................................................................... ... ... ... ... ... ... ................................ ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... 0. . .. . .. . ..........
28 PARTNERS IN AFFORDABLE HOUSING
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 6
Recommended Policies
These policies are designed to aid the City of Fort Collins ' decision - making regarding
affordable housing development in the community , and are related directly to the
affordable housing goals and strategies presented in this Affordable Housing Strategic
Plan (AHSP ) .
AHSP- 1
The City will allocate available financial assistance from its federal programs ( CDBG
and HOME ) and the City ' s own Affordable Housing Fund (AHF ) through a competitive
process to the proposals that best address the priority needs identified in this plan ,
according to the following priorities :
( 1 ) Increase the inventory of rental housing for households earning below 50% AMI ;
( 2 ) Preserve existing affordable housing units ;
( 3 ) Increase housing and facilities for people with special needs ; and
(4 ) Provide financial assistance to first - time homebuyers .
AHSP= 1 . 1
Of the total available funding , 65% of CDBG , 90% of HOME and 100% of the AHF will be
available to affordable housing developments .
AHSP - 1 . 2
The City shall establish objective criteria to aid in the analysis and comparison of the
merits of the applications requesting City financial assistance through the competitive
process . The objective criteria may include , but not be limited to .
■ Number / percentage of affordable units included in the project ' s total housing
mix ;
■ Number / percentage of households served at various income levels ;
■ Length of affordability commitment ;
■ Whether or not a special population is served ; and
■ Leveraging ratio of City funds to other financial resources ; etc .
The criteria shall be periodically reviewed to determine if it contributes effectively to
the analysis of the submitted proposals .
AHSP= 2
The City will maintain a package of non - financial incentives ( density bonuses , priority
processing , etc . ) designed to motivate developers to increase production of
affordable housing , both for rent and for sale . The City ' s package of non - financial
incentives shall be periodically reviewed and adjusted so that it maintains its
effectiveness .
RECOMMENDED POLICIES 29
AFFORDABLE HOUSING STRATEGIC PLAN
AHSP- 3
The City will require City- assisted affordable housing to carry a minimum 20 - year
commitment to affordability . A higher priority for financial assistance shall be given
to projects committing to be affordable for periods in excess of 40 years .
AHSP- 4
Funding of affordable housing projects through the competitive process shall be in the
form of loans so when the loans are repaid , they will provide sources of revenue to
allocate to future affordable housing projects .
AHSP- 5
The City shall commit its financial assistance early in a project ' s planning process in
order to help the developer leverage additional resources to cover the balance of
their project ' s financing needs . However , this early commitment shall be reviewed
every six months to assure a project is making significant progress in securing
additional funding , or the early commitment can be withdrawn .
AHSP- 6
In the allocation of private activity bonds for affordable housing , preference will be
given to projects that set aside some of their units for very low income households
under 50% AMI .
AHSP- 7
The City will only consider subsidizing projects containing units with rents affordable
to households earning more than 50% AMI if they also contain a significant number of
lower income ( less than 30% AMI ) units .
AHSP- 8
Explore using the Downtown Development Authority ' s ( DDA ) Green Grant and Facade
Grant programs as models to create a DDA sponsored affordable housing grant
program which would incentivize the inclusion of affordable units in DDA funded
residential projects .
AHSP- 9
The City will annually review its Land Bank program properties and determine if the
timing is right for some of those properties to be offered for sale to provide additional
affordable housing units to address the higher priority needs identified in this plan .
The proceeds from land sales shall be returned to the Affordable Housing Fund and
made available for additional Land Bank property acquisitions .
AHSP- 10
The City will continue to examine and reform regulatory concerns that could be
barriers to the production of affordable housing .
30 RECOMMENDED POLICIES
AFFORDABLE HOUSING STRATEGIC PLAN
AHSP- 11
The City will support community initiatives identifying homeless needs and developing
action plans to reduce the homeless population in Fort Collins . The City will also
participate in partnerships exploring solutions for homelessness .
AHSP- 12
The City will support projects producing affordable units to serve persons with
disabilities , and " cost - burdened " senior citizens .
AHSP- 13
The City will continue to provide loans to eligible households to cover down payment
and closing costs up to the amount reasonably needed to make the units affordable
based on the household ' s income level . 13
AHSP - 13 . 1
The City ' s subsidy should be in the form of a loan which is paid back in full when the
house is either sold , transferred out of the buyer's name , rented , or if the buyer seeks
a second lien ( like a home equity loan ) on the property . Added to the payment (which
is also due at sale , rental or transfer ) is 5% interest on the principal .
AHSP- 14
The City should strongly consider regular increases in the Affordable Housing Fund
with every City budget cycle in order to provide additional financial resources to
address the affordable housing goals identified in this plan .
AHSP- 15
The City should explore options for creating a more permanent source of revenue for
the Affordable Housing Fund .
AHSP - 16
The City should encourage affordable housing developers , when feasible , to use green
building techniques to help make the units more energy- efficient and sustainable .
13 In 2010 , a maximum of 6% of the sales price ( 5% for down payment and 1 % for closing costs if there
are no Seller concessions ) is offered under the City ' s existing Homebuyer Assistance program . Buyers
must make an earnest money deposit of $ 1 , 000 or 1 % of purchase price (whichever is greater) with
their own funds . This means the average subsidy is about $7 , 000 per household . The existing program
percentages shall be periodically evaluated based on changing market conditions , interest rates , or
other governmental rules and regulations .
RECOMMENDED POLICIES 31
AFFORDABLE HOUSING STRATEGIC PLAN
....................................................................................................................... ... .............................................................. ... ... ... ... ... ... ............ ... 0. . .. . .. . .. . .. . .. . .
32 RECOMMENDED POLICIES
AFFORDABLE HOUSING STRATEGIC PLAN
SECTION 7
Conclusion
This Affordable Housing Strategic Plan is the product of a year - long process that
analyzed the housing needs of the community and developed prioritized goals to
address the greatest identified needs . The purpose of this document is to guide future
decision - making with regard to policy and funding . A wide variety of strategies have
been identified to achieve the priority goals ' objectives and ensure that affordable
housing continues to be a priority of the Fort Collins community .
A lack of affordable housing affects everyone . Police , health care workers , teachers ,
retail and food industry workers all need it , and the community needs them and the
high quality services they provide . Affordable housing is greater than a social issue ; it
is also about economic development and environmental protection . If people working
in service area jobs cannot find housing , those jobs are not filled . If they are forced
to live in outlying areas and surrounding towns because of housing costs , they have
longer drive times to work , which creates more traffic congestion , adds to air
pollution , and diminishes the overall quality of the environment .
The Fort Collins City Council made a commitment to affordable housing through the
adoption of many programs and the allocation of General Fund revenue into the
Affordable Housing Fund . The creation of this Affordable Housing Strategic Plan is
another example of that commitment ; however , to make this commitment truly
effective , affordable housing must be elevated so it is discussed on par with such
topics as economic development , environmental protection , and public safety , and
included in any discussions involving those issues . Every discussion regarding a
sustainable community must include the consideration of affordable housing .
.. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . . .
CONCLUSION 33
AFFORDABLE HOUSING STRATEGIC PLAN
.................................................................................................................................................................................................................................... . .. . .. . .
34 CONCLUSION
AFFORDABLE HOUSING STRATEGIC PLAN
APPENDIX A
2009 Health and Human Services Poverty
Guidelines
There are two slightly different versions of the federal poverty measure : poverty
thresholds and poverty guidelines .
The poverty thresholds are the original version of the federal poverty measure . They
are updated each year by the Census Bureau . The thresholds are used mainly for
statistical purposes — for instance , preparing estimates of the number of Americans in
poverty each year . In other words , all official poverty population figures are
calculated using the poverty thresholds , not the guidelines . The thresholds are
updated annually for inflation using the Consumer Price Index for All Urban Consumers
( CPI - U ) . Although the thresholds in some sense reflect families ' needs , they are
intended for use as a statistical yardstick , not as a complete description of what
people and families need to live . Many government aid programs use a different
poverty measure , the Department of Health and Human Services ( HHS ) poverty
guidelines .
The poverty guidelines are the other version of the federal poverty measure . They are
issued each year in the Federal Register by the Department of Health and Human
Services ( HHS ) . The guidelines are a simplification of the poverty thresholds for use
for administrative purposes — for instance , determining financial eligibility for certain
federal programs . The HHS poverty guidelines , or percentage multiples of them ( such
as 125 % , 150% , or 185 % ) , are used as an eligibility criterion by a number of federal
programs . Poverty guidelines for the United States are reported in Figure 12 .
FIGURE 12 : 2009 POVERTY GUIDELINES FOR THE UNITED STATES
Source : aspe. hhs. gov/ POVERTY/ 09poverty. shtmi
PERSONS IN HOUSEHOLD POVERTY GUIDELINE
1 $ 101830
---------------------------------------------------------------------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................I
2 $ 14 , 570
--- ---------------------------------------------------------------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...:
3 $ 18 , 310
--- ---------------------------------------------------------------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..._
4 $ 222050
---------------------------------------------------------------------------- ----------=
5 $ 251790
------------------------------ .-------------------------=
6 $ 29 , 530
-------------------------
7 $ 331270
-- -------------- ------------------------------------- . . . ..........................
814 $ 37 , 010
For purposes of comparison , Figure 13 reports the ratio of Area Median Income (AMI )
to the poverty guidelines for a household of four . Essentially , households in poverty
14 For households with more than eight persons , add $ 3 , 740 for each additional person .
APPENDICES A- C 35
AFFORDABLE HOUSING STRATEGIC PLAN
are all below the 30% AMI level , meaning they are classified as " extremely low-
income " according to the U . S . Department of Housing and Urban Development ' s
( HUD ) classification system . The household of four AMI level of $75 , 200 has a ratio of
income to poverty level of 3 . 14 , which means a household of four earning 100% AMI
has more than three times the income as a family below the poverty level . A
household of four at 50% AMI has an income of almost twice ( 1 . 70 ) the income as the
same size household below the poverty level .
FIGURE 13 : EQUIVALENCY OF AMI LEVELS TO LEVELS OF POVERTY AND THE MAXIMUM AFFORDABLE
MONTHLY RENT
MAXIMUM
2009 RATIO OF AFFORDABLE
HUD ANNUAL PERCENT INCOME TO MONTHLY
CLASSIFICATION AMI15 OF AMI POVERTY16 RENT17
Moderate Income $ 752200 100% 3 . 41 $ 17752
- - - - -
Low Income $ 601150 80% 2 . 73 $ 17376
- - - - - - - - - - - - - - - - - - - - - - - - - -
Low Income $451120 60% 2 . 05 $ 17000
Very Low Income $ 37 , 600 50% 1 . 70 $ 812
---- -- -- -- - --- --- -- -- - - ---- - - ... .. . .. . .. . _ . . .. . .. . .. . .. . . . . ... ... ... ... _. _. . - . _ . .. . .. . .. . ... - . _ . _ . _ .. . _ . _ . _ . _ . - -- - -- - - - - -_ .. . . .- .
Extremely Low Income $ 22 , 550 30% 1 . 02 $436
- - - - - - - - - - - - - - . - - - - - - - - - - - - -
Extremely Low Income $ 22 , 050 29% 1 . 00 $423
------ -- -- -- - - - - - - -- -- - - - -- - - - - - - - - - _ . . . . . . _ _ . . . .
15 2009 Median Family Income for a family of four for the Fort Collins / Loveland Metropolitan Statistical
Area ( Larimer County) according to the Department of Housing and Urban Development is $75 , 200 , also
known as the Area Median Income (AMI ) .
16 The Census Bureau ' s poverty thresholds are the same nationwide , with no separate figures for
different states , metropolitan areas , or cities . The 2009 poverty threshold for a family of four is
$22 , 050 .
17 "Maximum Affordable Monthly Rent " is calculated by multiplying the AMI by 30% , then dividing by 12 ,
and subtracting $ 128 as an allowance for necessary utilities (electricity, natural gas , etc . ) . The $ 128
monthly utility allowance is the HUD Section 8 guideline for Fort Collins .
36 APPENDICES A- C
AFFORDABLE HOUSING STRATEGIC PLAN
APPENDIX B
Citizen Comments
Comments on this plan were solicited from the general public during the month of
May 2010 . The plan was available to download at fcgov. com / affordablehousing and
hard copies were available upon request . In addition , the Affordable Housing Board
hosted a public meeting on June 3 to invite feedback . Despite these efforts , the City
did not receive any public input during the comment period .
... ... ... .. . .. . .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. . .. . .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. . .. . .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..
APPENDICES A-C 37
AFFORDABLE HOUSING STRATEGIC PLAN
APPENDIX C
Definitions
The City ' s Land Use Code contains the following definitions for an affordable housing
unit for sale , an affordable housing unit for rent , and an affordable housing project :
Affordable housing unit for sale
Shall mean a dwelling unit which is available for purchase on terms that would be
affordable to households earning 80% or less of the median income of city residents ,
as adjusted for family size , and paying less than 38% of their gross income for housing ,
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 20 years .
Affordable housing unit for rent
Shall mean a dwelling unit which is available for rent on terms that would be
affordable to households earning 80% or less of the median income of city residents ,
as adjusted for family size , and paying less than 30% of their gross income for housing ,
including rent and utilities . The unit must be occupied by and affordable to such low -
income household ( s ) for a period of not less than 20 years .
Affordable housing project
Shall mean a 75 % of the gross acreage to be developed under the plan is to be
developed as residential dwelling units or mobile home park spaces ;
( 2 ) At least 10% of said dwelling units or spaces ( the " affordable housing units " ) are to
be available for rent or purchase on the terms described in the definitions of
affordable housing unit for rent or affordable housing unit for sale ( as applicable ) ;
( 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 units will be required by binding legal instrument acceptable to the City and
duly recorded with the Larimer County Clerk and Recorder , to be occupied by and
affordable to low - income households for at least 20 years .
. .. . .. . .. . .. ... ... ... ... ... ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. ... ... ... ... .. . .. . .. . .. . .. . . . . .. . .. . .. . .. . .. . .. . .
38 APPENDICES A-C