HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/04/2014 - SECOND READING OF ORDINANCE NO. 014, 2014, WAIVINAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY February 4, 2014
City Council
STAFF
Sue Beck-Ferkiss, Social Sustainability Specialist
Bruce Hendee, Chief Sustainability Officer
SUBJECT
Second Reading of Ordinance No. 014, 2014, Waiving Certain Fees for Fort Collins Housing Authority's
Redtail Ponds Permanent Supportive Housing Project and Appropriating General Fund Reserves to Pay
Specified Fees.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on January 21, 2014, authorizes certain development
and capital improvement expansion fee waivers to be provided to the Fort Collins Housing Authority (FCHA)
for the Redtail Ponds permanent supportive housing project. In March 2013, City Council limited the types of
projects for which the FCHA could request fee waivers and made these waivers discretionary. Eligible projects
are those constructed for homeless or disabled persons, or for persons whose income falls at or below 30% of
the adjusted median income of all City residents. FCHA is requesting fee waivers in the amount of $274,199
for this housing project. This is a permissible type of project for a fee waiver request.
Changes to the Ordinance on Second Reading are to fix an error in Section 3 that referred to the funds being
appropriated rather than the fees being waived, and to clarify that the appropriated funds are to replace the
waived Capital Improvement Expansion Fees. Additional information about the ownership structure of Redtail
Ponds was requested at First Reading and has been provided.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, January 21, 2014 (w/o attachments) (PDF)
2. Ownership Structure of Redtail Ponds (PDF)
Agenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY January 21, 2014
City Council
STAFF
Sue Beck-Ferkiss, Social Sustainability Specialist
Bruce Hendee, Chief Sustainability Officer
SUBJECT
First Reading of Ordinance No. 014, 2014, Waiving Certain Fees for Fort Collins Housing Authority's Redtail
Ponds Permanent Supportive Housing Project and Appropriating General Fund Reserves to Pay Specified
Fees.
EXECUTIVE SUMMARY
The purpose of this item is to ask City Council to determine whether certain development and capital
improvement expansion fee waivers will be provided to the Fort Collins Housing Authority (FCHA) for the
Redtail Ponds permanent supportive housing project. In March 2013, City Council limited the types of projects
for which the FCHA could request fee waivers and made these waivers discretionary. Eligible projects are
those constructed for homeless or disabled persons, or for persons whose income falls at or below 30% of the
adjusted median income of all City residents. FCHA is requesting fee waivers in the amount of $274,199 for
this housing project. This is a permissible type of project for a fee waiver request.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading
BACKGROUND / DISCUSSION
Fort Collins Housing Authority (FCHA) is seeking the waiver of certain development and capital improvement
expansion fees for the Redtail Ponds permanent supportive affordable housing project as allowed by City
Code, the Land Use Code and an Intergovernmental Agreement between the City of Fort Collins and the Fort
Collins Housing Authority dated July 3, 2013 (see Attachment 1 for waiver request). FCHA is a partial owner
of the project.
Under Colorado statutes and City of Fort Collins ordinances and resolutions dating back to 1988, projects of
housing authorities are exempt from some taxes and fees. For many years, the City has waived building
permit and development review fees and some capital expansion fees for projects of the FCHA. In March
2013, City Council amended its policies on fee waivers for affordable housing to allow for more discretion in
determining the kinds of housing authority sponsored projects for which City fees should be waived. By
adopting Ordinance No. 037, 2013, City Council limited the types of projects for which the FCHA could
request fee waivers. These are projects that are constructed for homeless or disabled persons, or for persons
whose income falls at or below 30% of the adjusted median income of all City residents. Furthermore, these
waivers will be granted at the discretion of City Council upon a determination that the proposed waiver will not
jeopardize the financial interests of the City or the timely construction of the capital improvements to be
funded by the fees for which a waiver is sought.
Redtail Ponds is a mixed-income 60 unit development with 40 units designed as permanent supportive
housing designed to meet the needs of homeless individuals with disabilities, homeless veterans, and other
low-income individuals whose income is 30% or less of the adjusted median income of Fort Collins residents.
(The other 20 units are for residents whose income fall between 30% and 50% Area Median Income). In
ATTACHMENT 1
Agenda Item 9
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2013, 30% of Area Median Income (AMI) for an individual is an annual income of $15,950 and 50% of AMI is
$26,550. This project is designed to house the City’s most vulnerable populations. The project will be located
at 5046 Fossil Boulevard (Attachment 2).
This project fits the definition of a project eligible for fee waivers as established in City Code, the Land Use
Code and the Intergovernmental Agreement (Attachment 3). The FCHA seeks waivers for the fees
associated with 40 of the 60 units that are reserved for these highly vulnerable populations.
Because 40 of the 60 units at Redtail Ponds are eligible for fee waivers, 66% of the total fees is what FCHA is
requesting be waived. The fees for this project are:
City Fees Subject to Waiver Under Agreement
Fee Amount Waiver Paid by FCHA
Development Review Fees $ 19,847 $ 13,230 $ 6,617
Building Fees 39,579 26,383 13,196
Capital Impact Expansion Fees 350,705 233,780 116,925
Storm Drainage Dev. Review Fees 1,209 806 403
TOTAL $ 411,340 $ 274,199 $ 137,141
Funding for this $12.6 million project is a combination of city and state grants, Low Income Housing Tax
Credits, owner equity, and conventional financing. Current pro formas rely upon the waivers to make this
project successful.
The City has long been committed to affordable housing, and the need for financial support is clearly
demonstrated in the increase in the number of applications for local and federal funds and the long waiting
lists for available affordable housing in the city. Permanent supportive housing is a national best practice
proven to end chronic homelessness and save taxpayer dollars on emergency related costs associated with
homeless persons. Developing a permanent supportive housing program is a goal of the City’s non-profit
partner Homeward 2020 in its 10 year plan to end homelessness. This project addresses Priority #1 in the
Fort Collins Affordable Housing Strategic Plan: to increase the inventory of affordable rental housing units,
and Priority #3: to increase housing and facilities for people with special needs. The location of this project will
support Transfort’s MAX Transit System and South Transit Center to supply the residents’ transportation
needs.
FINANCIAL / ECONOMIC IMPACT
For the Redtail Ponds project, the potential financial impact of a fee waiver on City funds is $274,199. If this
fee waiver is granted by City Council, $233,781 will need to be covered by General Fund resources. See
Attachment 4 for details.
Revenue Waived to be Paid by General Fund
Capital Expansion Fund $ 88,735
Street Oversizing Fund 84,452
Neighborhood Parkland Fund 60,594
General Fund Backfill Total $ 233,781
The waiver of these fees will not jeopardize the financial interests of the City or the timely construction of the
capital improvements to be funded by the fees for which a waiver is sought.
ENVIRONMENTAL IMPACTS
Affordable housing programs help provide for a healthy environment. By offering affordable housing options
to lower income people, more of Fort Collins' work force can live in the community instead of being forced to
Agenda Item 9
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live outside the community and commute into the city for work. This helps reduce traffic congestion and,
thus, improves air quality. The construction of this project will meet the standards of the Enterprise Green
Communities, which roughly equates to a Silver LEED Certification level. The location of this project will
promote the use of public transportation by the Redtail Ponds residents.
BOARD / COMMISSION RECOMMENDATION
At its January 9, 2014, meeting, the Affordable Housing Board unanimously voted to support the provision of
waivers to this much needed affordable housing project. The public was given an opportunity to comment on
FCHA's request at that time. See Attachment 5.
ATTACHMENTS
1. Fee Waiver Request (PDF)
2. Location maps (PDF)
3. City Fee Waiver IGA, July 3, 2013 (PDF)
4. Final City Fees and Waivers (PDF)
5. Affordable Housing Board Recommendation (PDF)
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ORDINANCE NO. 014, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
WAIVING CERTAIN FEES FOR FORT COLLINS HOUSING AUTHORITY’S REDTAIL
PONDS PERMANENT SUPPORTIVE HOUSING PROJECT AND APPROPRIATING
GENERAL FUND RESERVES TO PAY SPECIFIED FEES
WHEREAS, the Fort Collins Housing Authority (“FCHA”) was formed by the City
Council in 1970 pursuant to the authority contained in C.R.S.§ 29-4-101, et seq., for the purpose
of providing affordable, safe and sanitary housing in the City that is within the means of families
of low or moderate income; and
WHEREAS, by adoption of Ordinance No. 065, 1999, the City Council exempted from
the imposition of the City’s capital improvement expansion fees the land development projects
of housing authorities formed pursuant to the provisions of C.R.S. § 29-4-101, et seq., and
specified various other City fees from which such projects are also to be exempted; and
WHEREAS, the financial impact of such fee waivers on the City can be substantial,
depending upon the size of the project that is exempted, and whether the lost fee revenues need
to be replaced by the City; and
WHEREAS, on March 19, 2013, the City Council adopted Ordinance No. 37, 2013 (the
“2013 Ordinance”), which made amendments to the City Code and Land Use Code limiting the
types of projects for which FCHA could request fee waivers, and specifying that those waivers
are to be granted at the discretion of City Council upon a determination that proposed waivers
will not jeopardize the financial interests of the City or the timely construction of capital
improvements to be funded by the fees; and
WHEREAS, the 2013 Ordinance also authorized and directed the Mayor to enter into an
intergovernmental agreement between the City and FCHA documenting FCHA’s intent to limit
future fee waiver applications to affordable housing projects that meet the criteria established by
such Ordinance (the “Intergovernmental Agreement”); and
WHEREAS, the Intergovernmental Agreement was executed on July 3, 2013; and
WHEREAS, FCHA is seeking the waiver of certain development and capital
improvement expansion fees for the Redtail Ponds permanent supportive affordable housing
project, a proposed mixed-income 60-unit development designed as permanent supportive
housing to meet the needs of homeless individuals with disabilities, homeless veterans, and other
low-income individuals (the “Project”); and
WHEREAS, FCHA is requesting waivers equal to 66% of the total fees for the Project
because 40 of the 60 units are eligible for such fee waivers; and
WHEREAS, the 2013 Ordinance states that the City Council can waive, by ordinance,
fees that would otherwise be imposed for an affordable housing project wholly or partially
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owned by a housing authority only if the City Council determines that: (1) the proposed project
is intended to house homeless or disabled persons, as such terms are defined ty the Department
of Housing and Urban Development (HUD), or households with an annual income that does not
exceed 30% of the area median income for the applicable household size in the Fort Collins-
Loveland metropolitan statistical area, as published by HUD; and (2) the proposed waiver will
not jeopardize the financial interests of the City or the timely construction of the capital
improvements to be funded by the fees for which a waiver is sought; and
WHEREAS, the Project would be partially owned by FCHA, as FCHA is the sole
member of a limited liability company that has a 1% ownership interest in a limited liability,
limited partnership that will own the Project; and
WHEREAS, the Project fits the definition of a project eligible for fee waivers under the
City Code and Land Use Code as amended by the 2013 Ordinance, and the Intergovernmental
Agreement; and
WHEREAS, City staff has determined that the requested fee waiver will not jeopardize
the financial interests of the City or the timely construction of the capital improvements to be
funded by the fees for which the waiver is sought; and
WHEREAS, the Project also addresses Priority #1 in the Fort Collins Affordable Housing
Strategic Plan, which is to increase the inventory of affordable rental housing units, and Priority
#3, which is to increase housing and facilities for people with special needs; and
WHEREAS, if City Council grants the fee waivers, FCHA is requesting the appropriation
of $233,780 from General Fund reserves to cover the feeCapital Improvement Expansion Fee
revenue waived; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby finds that the Project is intended to house
homeless or disabled persons, as such terms are defined ty the Department of Housing and Urban
Development (HUD), or households with an annual income that does not exceed 30% of the area
median income for the applicable household size in the Fort Collins-Loveland metropolitan
statistical area, as published by HUD.
Section 2. That the City Council further finds that the fee waiver requested by FCHA
will not jeopardize the financial interests of the City or the timely construction of the capital
improvements to be funded by the fees for which a waiver is sought.
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Section 3. That the City Council hereby approves the waiver of $233,781$274,199 in
fees that would otherwise be payable to the City upon the issuance of building permits for the
Project, consisting of:
Capital Expansion Fund $ 88,735
Street Oversizing Fund 84,452
Neighborhood Parkland Fund 60,594
Total $ 233,781
Development Review Fees $ 13,230
Building Permit Fees 26,383
Capital Improvement Expansion Fees 233,780
Storm Drainage Dev. Review Fees 806
Total $274,199
Section 4. That there is hereby appropriated for expenditure from reserves in the
General Fund the sum of TWO HUNDRED THIRTY THREE THOUSAND SEVEN
HUNDRED EIGHTY ONE DOLLARS ($233,781) to cover the approved, waived revenue
feesCapital Improvement Expansion Fees for the Redtail Ponds Permanent Supportive Housing
Project.
Introduced, considered favorably on first reading, and ordered published this 21st day of
January, A.D. 2014, and to be presented for final passage on the 4th day of February, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 4th day of February, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk