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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/21/2014 - FIRST READING OF ORDINANCE NO. 014, 2014, WAIVINGAgenda 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. Agenda Item 9 Item # 9 Page 2 (The other 20 units are for residents whose income fall between 30% and 50% Area Median Income). In 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 Item # 9 Page 3 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) ATTACHMENT 1 ATTACHMENT 2 REDTAIL GROVE NATURAL AREA FOSSIL CREEK TRAI L MASONTRAIL TRAIL MASON MA S ON TRAIL FO S SIL CREEK P KWY S COLLEGE AVE C A M E R O N DR CONEJOS RD C O RONADO CT W FAIRWAY LN FOSSIL BLVD ³I FSuotuutrhe Transit Center ¼ M ile Redtail Fort Ponds Collins Permanent Housing Supportive Authority Housing - TOD CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use PRODUCTS of the by the public. City The of Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: January 22, 2013 ¼ Mile Buffer South Transit Center Development Site Parcels Trails Railroad 0 200 400Feet Scale 1:4,800 © ATTACHMENT 3 Process Fee Type Fee Amount Waiver Paid REVENUE Dev Review 66% of Units @ 0-30 Fund Business Unit Object Project Development Plan - PDP $ 5,879.00 $ 3,918.94 $ 1,960.06 100 1000 444040 Final Plan with Subdivision Plat $ 1,000.00 $ 666.60 $ 333.40 100 1000 444040 Minor Amendment - Planning $ 192.00 $ 127.99 $ 64.01 100 1000 444060 Planning Sign Posting $ 50.00 $ 33.33 $ 16.67 100 1000 444050 Planning APO Label Fee $ 145.50 $ 96.99 $ 48.51 100 1000 444050 TDRF - PDP $ 10,622.75 $ 7,081.12 $ 3,541.62 292 902010 444030 TDRF - Final Plan $ 1,000.00 $ 666.60 $ 333.40 292 902010 444030 TDRF - ROW Vacation $ 800.00 $ 533.28 $ 266.72 292 902010 444030 Minor Amendment - TDR $ 158.00 $ 105.32 $ 52.68 292 902010 444030 Total Dev. Rev Fees: $ 19,847.25 $ 13,230.18 $ 6,617.07 Building Fees: Building Permit Fee $ 26,715.83 $17,808.77 $ 8,907.06 100 1000 422010 Building Plan Ck Fee $ 12,863.18 $8,574.60 $ 4,288.58 100 1000 444010 Total Permit & Plan Check Fees: $ 39,579.01 $ 26,383.37 $ 13,195.64 Capital Improvement Expansion Fees: Residential CIE Fee (Fire) $19,440.00 $12,958.70 $6,481.30 250 442020 Commercial CIE Fee (Fire) $1,082.20 $721.39 $360.80 250 442020 Residential CIE Fee (Gen'l Govt) $23,040.00 $15,358.46 $7,681.54 250 441080 Commercial CIE Fee (Gen Govt) $2,121.26 $1,414.03 $707.23 250 441080 Residential CIE Fee ( Police) $9,720.00 $6,479.35 $3,240.65 250 442010 Commercial CIE Fee ( Police) $611.68 $407.74 $203.93 250 602900 442010 Residential Street Oversizing Fee $114,300.00 $76,192.38 $38,107.62 291 2910 445010 Commercial Street Oversizing Fee $12,390.36 $8,259.41 $4,130.95 291 2910 445010 Residential. CIE Fee (Community Parkland) $77,100.00 $51,394.86 $25,705.14 250 443140 Residential CIE Fee (N'hood Parkland) $90,900.00 $60,593.94 $30,306.06 270 443110 Total CIE Fees: $350,705.49 $233,780.28 $116,925.21 Utilities: Stormwater Dev. Review Fee $1,209.00 $805.92 $403.08 504 5040 473130 Total Stormwater Development Review Fee: $1,209.00 $805.92 $403.08 Total Fees $ 411,340.75 $ 274,199.75 $ 137,141.01 Backfill Required by General Fund $ 233,780.28 Redtail Ponds Permanent Supportive Housing Indicates fees that are waived by ordinance for 30% AMI units. Forty of the sixty units are set aside for the 30% Unclear as to whether or not these fees will be waived. Loveland Fort Collins Water District Fees - Unclear what if any can be waived. ATTACHMENT 4 MEMORANDUM Affordable Housing Board 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6753 fcgov.com On January 9, 2014, Sue Beck-Ferkiss advised the Affordable Housing Board that the Fort Collins Housing Authority is requesting waivers of certain development review and capital expansion fees pursuant to City Code, the Land Use Code and an Intergovernmental Agreement between the City and FCHA dated July 3, 2013. The AHB is aware of this project and sent a letter in support of this permanent supportive housing project to the Planning and Zoning Board in November of 2013. Meeting Comments/Discussion from January 9, 2014: This is an important project for our community. This type of housing project meets an identified need and fills a gap in affordable housing inventory. The City should support this type of development and waiving fees is one way to do that. In the Board’s opinion, this request is fully compliant with the Intergovernmental Agreement dated July 3, 2013 between the City and the FCHA. This project addresses both Goals 1 and 3 of the 2010-2014 Affordable Housing Strategic Plan. After thorough consideration and discussion on January 9, the AHB developed the following recommendation to the Fort Collins City Council: Jeff motioned and Tatiana seconded. Motion Passed 7-0-0 The Affordable Housing Board recommends that City Council approve the Fort Collins Housing Authority’s request to waive $274,199 in fees for the development of the Redtail Ponds permanent supportive housing project. DATE: January 13, 2014 TO: Mayor and Councilmembers FROM: Affordable Housing Board CC: Darin Atteberry, City Manager RE: REDTAIL PONDS FEE WAIVER REQUEST ATTACHMENT 5 - 1 - 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 - 2 - 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 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. - 3 - Section 3. That the City Council hereby approves the waiver of $233,781 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 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 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 Passed and adopted on final reading on the 4th day of February, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk