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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/05/2013 - FIRST READING FOR ORDINANCE NO. 037, 2013 REPEALINDATE: March 5, 2013 STAFF: Diane Jones AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT First Reading for Ordinance No. 037, 2013 Repealing Ordinance No. 065, 1999, Resolution1996-073 and Resolution 1988-081; Making Certain Amendments to the City Code and Land Use Code to Allow for the Discretionary Waiver of City Fees for Certain Kinds of Housing Authority Projects to Be Constructed in the City; and Authorizing an Agreement Between the City and the Housing Authority with Regard to Such Waivers. EXECUTIVE SUMMARY Colorado statutes and a City ordinance exempt projects of the Fort Collins Housing Authority (FCHA) from City taxes and fees and, for many years, the City has waived fees for such projects. For the most part, the projects have been relatively small. In 2011, the Housing Authority partnered with CARE Housing, a non-profit agency, on an affordable housing project in the Provincetown subdivision. Although the interest of the Housing Authority in the project was small (technically a .001% partner), a waiver of City fees for the CARE Housing Provincetown Project was requested and granted by the City Council. The fee waiver totaled $557,378. The magnitude of the waiver, as well as the fact that the Housing Authority held only a minor ownership interest in the project, prompted staff to examine the fee waiver policy for future Housing Authority projects. At a subsequent work session of the Council, staff was directed to provide some options for future projects, especially those in which the Housing Authority has only a minor interest. Staff presented options and a recommendation to City Council on July 10, 2012. City Council generally supported the direction to make Fort Collins Housing Authority fee waivers optional and to limit waivers to certain kinds of project. Council also asked for some additional information and to discuss the options and recommended approach with the Economic Advisory Commission. BACKGROUND / DISCUSSION The mission of the Fort Collins Housing Authority is to provide and promote safe and affordable housing, economic opportunity and a living environment free from discrimination. The Housing Authority owns and operates a variety of properties located throughout Fort Collins and serves over 1,700 households (4,200 individuals) in need of affordable housing. The Housing Authority also manages the non-subsidized affordable housing properties owned by Villages, Ltd. and the low-income senior apartments located in the historic Northern Hotel. Issue As noted above, under the Colorado statutes and the City of Fort Collins ordinances and resolutions dating back to 1988 (Resolution 1988-81, Ordinance No.073, Ordinance No. 065, 1999), Housing Authority projects are exempt from taxes and fees. While the state law does not specify particular exemptions, the City ordinance does specify the particular fees from which Housing Authority projects are exempt. The most recent local legislative action (Ordinance No, 065, 1999) exempts housing authority projects from: • Appeal fees • Building Permit fees • Development Review fees • Parkland fees • Plan check fees • Street Oversizing fees • Vested property right fees • Zoning variance fees • Community Parkland Capital Improvement Expansion Fee • Police Capital Improvement Expansion Fee March 5, 2013 -2- ITEM 13 • Fire Protection Capital Expansion Fee • General Government Capital Improvement Expansion Fee • Fee in Lieu of School Site Dedication In addition, Chapter 7.5 of the City Code, which deals with capital improvement expansion fees, also contains within the definition of “building permit” a provision that exempts Housing Authority Projects from such fees. For the most part, the projects for which these fees have been waived have been relatively small projects with minimal fees. This is because for the last decade and due to market conditions, the Housing Authority has focused on substantial renovation and preservation of affordable housing rather than new construction. The City and the Housing Authority disagree as to whether the exemption from taxes and fees (as referred to in the State statutes) applies only to projects that are wholly owned by the Housing Authority or also applies to projects in which the Housing Authority holds a minority interest. The reason that this difference of opinion has become significant is that, when fees are waived by the City, other sources of funds must generally be identified to pay those fees. Otherwise, other fee payers would be required to make up the difference needed to cover the costs of the infrastructure or services funded by the fees and would wind up paying a disproportionate share of those costs. For the CARE Housing/Provincetown Project, the fees were covered out of the General Fund. Council requested additional discussion of this issue before other affordable housing projects in which the Housing Authority has an ownership interest are presented to Council for possible fee waivers. Options Identified and Considered Staff has worked extensively with the Fort Collins Housing Authority regarding how best to deal with this issue. Several approaches were initially identified: A. Use Community Development Block Grant (CDBG) and HOME Funds to Cover the Fees. These funds are somewhat restricted, but CDBG funds can be used to cover some site specific development fees and HOME can cover some impact fees. While both sources can be used to cover some select fees, neither can be used to cover waived fees. Financing can also be structured so federal grants and tax credits cover a greater share of project development and construction and thereby enabling other elements of project financing to cover the fees. B. Affordable Housing/Human Services Tax or Fee. Some communities assess a human services/affordable housing sales tax (e.g., a .45 % in Aspen). The fact that Fort Collins’ voters approved a .85-cent sales tax increase in November 2010 and given that the economic recovery remains slow and challenging, a tax request and approval is relatively remote. While an affordable housing fee on other new development is possible, the timing to consider is not optimal at this time. C. Defer Fees to the End of the First Financing Period Another option staff considered was the idea of deferring development and impact fees for a period of time. For affordable housing projects that are financed by another party (other than the Housing Authority) and where the ownership is transferred after a period of time (for example, the tax credit period of 15 years), the fees would then be paid by the new owner. Low Income Housing Tax Credit (LIHTC) projects are owned by a partnership in which the tax credit investors typically hold 99% ownership in order to receive the benefit of the credits and the non-profit partner owns 1%. Since the non-profit owner does not have a tax liability, it would not benefit from the tax credits. This ownership structure as well as the details of ownership at the end of the tax credit period are negotiated and documented in the formation of the partnership documents. Some of the questions and concerns with this option included: (a) if the project is not transferred from a partnership to the Housing Authority, it is unclear who would pay the fees, e.g., would the City (General Fund) be required to pay them; (b) since impact fees help fund the needed public facilities that support the project (such as street oversizing, parks, water and wastewater) and if such fees are delayed for an extended period of time, there may not be adequate resources to “front” the cost of providing expanded public facilities to accommodate the development. March 5, 2013 -3- ITEM 13 D. Make the Fee Waivers Optional and Limit Them to Certain Kinds of Projects, According to Established Criteria An option suggested by the Housing Authority is to to repeal ordinance and Code language that calls for mandatory fee waivers for all Housing Authority projects, limit the waivers to certain kinds of projects, and make the waivers discretionary with the City Council. These more limited waivers would be considered by the Council Housing Authority projects regardless of the percentage of ownership interest that the Housing Authority holds in the project, but only if the projects meet two general criteria: 1. projects that are constructed for the homeless or disabled (in accordance with the HUD definition); and/or 2. projects that are constructed for occupants whose income falls within 0% to 30% AMI (Adjusted Median Income) In other words, applications for fee waivers for Housing Authority projects, in which they are a full or partner owner would be limited to the most vulnerable populations as defined by HUD and noted in the above two criterion. FINANCIAL IMPACTS The proposed ordinance limits the types of Fort Collins Housing Authority projects for which fee waivers will be considered to those projects that are targeted for the most vulnerable population as defined by the stated criteria. It also enables City Council to consider the City's financial situation at the time a fee waiver request is submitted by the Housing Authority and, if the City Council finds that such a fee waiver would create an undue financial hardship for the City, the Council would not be obligated to waive the fees for a particular qualifying project. Any fee waivers granted by the City Council in conjunction with this policy will customarily be covered by General Fund resources, unless there is another source that is available and can be used for such purpose. STAFF RECOMMENDATION Staff recommends the adoption of Ordinance No. 037, 2013, which allows for discretionary waiver of City fees for Housing Authority projects constructed in the City when those projects meet certain criteria related to the most vulnerable population. The specifics of the proposal are: a. Housing Authority requests for the waiver of development and impact fees would be limited to housing projects that are targeted for the most vulnerable population in the City. The Housing Authority defines its most vulnerable target population as: (1) the homeless or disabled (in accordance with the HUD definition, and (2) those that fall within 0% to 30% AMI (Adjusted Median Income—see Attachment 11 for a table of the current AMI levels for Fort Collins). If only a portion of a project qualified for a waiver, the waiver would be pro-rated accordingly. b. Each proposed waiver would be presented to the City Council for consideration and would be discretionary with the Council. If, in Council’s judgment, a particular waiver would create an undue financial hardship for the City, the Council would not be obligated to waive the fees for that project. c. To cover the waived fees, two strategies would be employed: (1) Priority would be given by the CDBG Commission and City Council to use CDBG and HOME funds to pay the development and impact fees (to the extent permissible under HUD guidelines). (2) If CDBG and/or HOME funds cannot be used to cover the fees, or the use of these funds is not approved by City Council, then the City’s General Fund would be utilized to cover such fees. d. The development and impact fees that would be subject to the fee waivers would be the following (these would not change from what is in the current City ordinance): March 5, 2013 -4- ITEM 13 • Appeal fees • Building Permit fees • Development Review fees • Parkland fees • Plan check fees • Street Oversizing fees • Vested property right fees • Zoning variance fees • Community Parkland Capital Improvement Expansion Fee • Library Capital Improvement Expansion Fee • Police Capital Improvement Expansion Fee • Fire Protection Capital Expansion Fee • General Government Capital Improvement Expansion Fee • Fee in Lieu of School Site Dedication In summary, staff is recommending adoption of Ordinance No. 037, 2013. The Ordinance also authorizes and directs the Mayor to enter into an intergovernmental agreement with the Housing Authority on terms and conditions consistent with the Ordinance. The purpose of that agreement would be to document the arrangement that has been agreed upon between the City and the Housing Authority so as to avoid future confusion or disagreement about the extent to which the Housing Authority should be exempted from City fees under state law. Following adoption of the Ordinance, staff will work with the Fort Collins Housing Authority to develop an intergovernmental agreement between the City of Fort Collins and the Fort Collins Housing Authority BOARD / COMMISSION RECOMMENDATION The issue and the options were presented to the Affordable Housing Board (June 7, 2012), the Community Development Block Grant (CDBG) Commission (June 14, 2012), and the Economic Advisory Commission (January 16, 2013). The minutes from the Affordable Housing Board, an excerpt from the CDBG Commission, and a memo from the Economic Advisory Commission are attached. The Affordable Housing Board discussion focused on: asking if there were sources other than the General Fund to cover fees that might be waived; supported pro-rating waivers for only that portion of the project that met the criteria (Option D); and questioning if the commitment of the City (for waiving and covering fees) was sufficient. The Board indicated that it would formulate a written response to Council. The CDBG Commission discussion focused on: suggesting fee waivers for the Housing Authority only apply to projects in which the Authority has a greater percentage of participation; suggesting that the City waive fees for all affordable housing projects; fee waivers for Housing Authority projects discourages others from competing; Option D helps to “level the playing” field as the Housing Authority would only seek and be provided fee waivers under the criteria cited; and perhaps the suggested language of “may” is too open-ended. The Commission’s conclusion was a preference for Option D and would like to see fee waivers extended to other non-profit developers (of affordable housing). The Economic Advisory Board had several questions about how the criteria would be applied; what happens if a family’s income increases above the 30% AMI; and asked the Housing Authority to provide some additional financial and housing data. Following the meeting, the EAB submitted its comments as a memo (see Attachment 8). March 5, 2013 -5- ITEM 13 ATTACHMENTS 1. Resolution 1988-081 2. Ordinance No. 051, 1996 3. Resolution 1996-073 4. Ordinance No. 065, 1999 5. Affordable Housing Board minutes, June 7, 2012 6. Affordable Housing Board memo 7. Community Development Block Grant (CDBG) Commission minutes, June 14, 2012 8. Economic Advisory Commission memo, January 16, 2013 9. Work Session Summary, July 10, 2012 10. Fort Collins Housing Authority Significant Developments for the past 10 years 11. 2013 Larimer County AMI at 30% 12. FCHA memo re: Affordable Housing Fee Waiver, February 13, 2013 ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD DRAFT MEETING MINUTES 281 N. College Ave. Fort Collins, Colorado June 7, 2012 4 to 6 p.m. Chair: Dan Byers Staff Liaison: Ken Waido 970-221-6753 City Council Liaison: Lisa Poppaw Board Members present: Ben Blonder, Dan Byers, Jeff Johnson, Troy Jones, Wayne Thompson Board Members absent: Karen Miller, Mike Sollenberger Advance Planning Department Staff present: Ken Waido; Beth Rosen, Affordable Housing Administrator Council Members present: None Other Staff present: Diane Jones, Deputy City Manager; Ingrid Decker, Assistant City Attorney; Kate Jeracki, Note Taker Guests: Marilyn Heller, League of Women Voters; Julie Brewen, Fort Collins Housing Authority; Bill Renke, CARE Housing; Kristen Candella, Fort Collins Habitat for Humanity; Ray Roth, citizen [FEE WAIVER SEGMENT EXCERPT] FORT COLLINS HOUSING AUTHORITY FEE WAIVERS UPDATE — Diane Jones, Deputy City Manager and Director, Policy, Planning and Transportation, presented a working paper on fee waivers for the Fort Collins Housing Authority. The Housing Authority’s minimal participation in the Provincetowne project as a partner with the nonprofit CARE Housing resulted in the waiver of $557,000 in infrastructure-related fees, and this amount had to be made up from the General Fund. While there are questions about whether current statutes apply to projects not wholly owned by the Housing Authority, City Council has asked for additional options for future projects, especially those in which the Housing Authority has only a minor interest. Jones presented four options: A. Use Community Development Block Grant and HOME funds to cover the fees. ATTACHMENT 5 2 The Housing Authority suggested that the fee waivers focus on permanent supportive housing projects that target the chronically homeless. HUD prohibits the use of CDBG funds for impact fees; HOME funds can be used to pay individual or fractional impact fees on specific projects only, not all affordable housing. B. Affordable Housing/Human Services tax or fee Other communities assess such a tax, but the possibility of passage of a tax increase at this time is relatively remote. C. Defer fees to the end of the first financing period The fees would not be assessed until the ownership is transferred, for example, after the tax credit period of 15 years, and the new owner would pay them. However, if the ownership is not transferred, would the fees still come out of the General Fund? Would deferment provide enough money upfront to expand public facilities to accommodate the development? D. Make the fee waivers optional, according to established criteria Under this option, the existing ordinance would be changed from “the City shall exempt the Housing Authority from payment of any of the following fees” to “the City may exempt the Housing Authority from payment of any of the following fees.” Each Housing Authority project would be reviewed with two general criteria as guidelines for exemption: • Projects that are constructed for the homeless or disabled and/or • Projects that are constructed for occupants whose income is less than 30 percent of adjusted median income. Staff is recommending Option D. Julie Brewen said FCHA also supports this option as win-win to serve the most vulnerable members of the community. Jones asked for input from the Affordable Housing Board to be presented at the City Council worksession on July 10. Troy Jones asked if there were any other possible sources of funding other than the General Fund to cover the infrastructure costs paid for by the waived fees. Diane Jones said no. Ken Waido said financing can be structured so federal grants and tax credits cover other parts of a project. Beth Rosen also pointed out that fees management is the biggest administrative burden of any project. Ben Blonder supported restricting waivers to projects serving those with less than 30 percent AMI. Dan Byers questioned making the waivers completely discretionary for City Council. He was concerned about projects with minimal ownership by FCHA, like Provincetown. Blonder said under these new restrictions, Provincetowne might have had a hard time getting the waivers that were granted. Jeff Johnson asked about leaving the 3 term “partnership” undefined; Brewen said the draft is silent on the issue of percentage of FCHA participation. Blonder asked if the waivers could be pro-rated—for example, if 10 percent of a project’s units were for less than 30 percent AMI or homeless or disabled, only 10 percent of the fees could be waived. Diane Jones confirmed that to be the case. Troy Jones asked when in the lifecycle of the project would developers know which fees will be waived? Diane Jones said projects that meet the criteria will be flagged and put into the city’s budget process as soon as they are identified. A BFO offer could include a minimum/maximum dollar amount for waivers, contingent upon approval by Council. Dan Byers said the way the option is worded is a small commitment from the City. He suggested taking out “discretionary.” He would like the Board to formulate a response to Council in writing, and will initiate an email discussion with members before the July 10 worksession, since the Board’s next meeting has been rescheduled to July 12. Housing Authority Fee Waiver Affordable Housing Board Comments June 7, 2012 The Affordable Housing Board (AHB) heard a presentation by Diane Jones, Deputy City Manager, regarding the City’s review of Fee Waivers for the Fort Collins Housing Authority (FCHA) at its June7, 2012 regular meeting. Following are the AHB’s comments related to the City’s recommendation on this issue: 1. The City’s ordinance allowing for certain Fee Waivers for projects owned by the FCHA has been appropriate and has encouraged the establishment of affordable housing in Fort Collins. 2. Due to the size of the fee waiver ($577,000) requested for the Provincetowne project, which the FCHA had a small ownership interest in, the City has subsequently conducted a review of the fee waiver ordinance. This review has suggested several options for modifying and further clarifying the application of the fee waivers for FCHA owned projects. 3. After considering these options with the FCHA, the City has made a recommendation to clarify when the fee waivers would be granted based on the following terms: a. The waiver, if granted, would be limited to projects targeting the homeless or disabled, and those that fall within the 0 – 30% AMI range. If only a portion of the project qualified under these terms, the waiver would be pro‐rated accordingly. b. The waiver would be discretionary if, in Council’s judgment, a particular waiver would create undue hardship for the City. c. The waived fees would need to be covered by the City’s General Fund, since CDBG/HOME funds cannot be used to cover waived fees. Some non‐waived fees could possibly be covered by federal funds. 4. The AHB has read and discussed the City’s review and recommendation and has the following comments: a. Any interpretation or clarification of the State statutes and the City’s Ordinance should further clarify that the waiver be applied uniformly to any project owned by the FCHA, regardless of that percentage ownership. ATTACHMENT 6 b. Limiting the fee waiver to projects targeting the homeless, disabled, or those that target the 0 – 30% AMI population is a very limited scope that would substantially reduce the fee waivers the City would be asked to consider. This determination by the City could be interpreted by some as a reduction in the City’s commitment to encourage affordable housing in our community. c. If the City were to adopt this new clarification of the Ordinance, with its reduced scope as outlined in point 3 above, the AHB would strongly recommend that the fee waiver not be considered discretionary. Making the fee waiver discretionary would seem to be contrary to the purpose and intent of the City’s review of this Ordinance, which was to clarify when the waiver would be granted. Making the waiver discretionary could also cause hardship and undue expense for the FCHA when initiating projects since it may inhibit their ability to plan for all anticipated costs of the project. Further, the new limited scope being recommended for the waiver should substantially lessen any fee waiver requests such that they would not be expected to generate an undue hardship on the City. If the City continues to have a concern over the exposure that these waived fees could present, and the dollar impact on the City’s General Fund, one suggestion our board had would be to consider a hard dollar cap for waived fees that any one project would not exceed. With a hard dollar cap, both the City and the FCHA could plan appropriately for upcoming projects. Thank you for considering the review and comments of the AHB. COMMUNITY DEVELOPMENT BLOCK GRANT COMMISSION REGULAR MEETING 281 N. COLLEGE AVENUE, FORT COLLINS June 14, 2012, 6:30 P.M. COMMISSION MEMBERS PRESENT: Kay Rios, Chair Jamaal Curry Anita Basham Margaret Long Robert Browning Emily Sander Catherine Costlow COMMISSION MEMBERS ABSENT: STAFF MEMBERS PRESENT: Gordon Coombes Heidi Phelps Kristin Stephens Sharon Thomas VISITORS PRESENT: Bill Reinke, Executive Director, CARE Housing Kristin Candella, Incoming Executive Director, Fort Collins Habitat for Humanity Ray Roth, Citizen [FEE WAIVERS SEGMENT EXCERPT] Diane Jones, Deputy City Manager and Director, Policy, Planning and Transportation, presented a working paper on fee waivers related to the Fort Collins Housing Authority. The Housing Authority’s minimal financial percentage participation in the Provincetowne project, as CARE Housing’s non‐profit partner resulted in the waiver of $557,000 in infrastructure‐related fees. That amount needed to be made up from the City’s General Fund. While there are still questions about whether current State statutes apply to projects not wholly owned by the Housing Authority, City Council has asked for additional options for future projects, especially those in which the Housing Authority has only a minor interest. Ms. Jones presented four options: A. Use Community Development Block Grant and HOME funds to cover the fees. The Housing Authority suggested that the fee waivers focus on permanent supportive housing projects that target the chronically homeless. The U.S. Department of Housing and Urban Development (HUD) prohibits the use of CDBG funds for impact fees. HOME funds can be used to pay individual or fractional impact fees on specific projects only, but may not be used on some other community‐wide development fees. Neither federal funding stream may be used to “backfill” waived fees. ATTACHMENT 7 CDBG Commission Regular Meeting June 14, 2012 Fee Waivers Segment Excerpt 2 B. Affordable housing/human services tax or fee Other communities assess such a tax, but the possibility of passage of a tax increase at this time is relatively remote. C. Defer fees to the end of the first financing period The fees would not be assessed until the ownership is transferred‐‐for example, after the tax credit period of 15 years has passed, and the new owner would pay them. However, if the ownership is not transferred, would the fees still come out of the General Fund? Would deferment provide enough money upfront to expand public facilities to accommodate the development? D. Make the fee waivers optional, according to established criteria Under this option, the existing ordinance would be changed from “the City shall exempt the Housing Authority from payment of any of the following fees” to “the City may exempt the Housing Authority from payment of any of the following fees.” Each Housing Authority project would be reviewed with two general criteria as guidelines for exemption: projects that are constructed for persons who are homeless or have disabilities and/or projects that are constructed for occupants whose income is less than 30 percent of Area Median Income (AMI). City and Housing Authority staff are recommending Option D. Ms. Jones asked for input from the CDBG Commission to present to Council’s July 10 work session. Catherine Costlow suggested that waivers only apply to projects with a greater percentage of Housing Authority participation. Otherwise, developers might partner with the Authority just to get the Low Income Housing Tax Credits, when applicable. Ms. Jones said that might be possible, but the question remains as to how to manage the waivers. Kay Rios pointed out that while State law says housing authorities are exempt from fees and taxes, it is up to the City to enumerate which fees. Bob Browning suggested the City should waive fees for all affordable housing projects, not just the ones involving the Housing Authority. Ms. Jones said State law singles out housing authorities. It’s a matter of City finances to collect fees. Ms. Rios pointed out that fee waivers give Housing Authority projects a significant leg up on other projects that come before the Commission in the City’s Competitive Process for funding. While she understands that it is not financially feasible to exempt all affordable housing projects, the advantage given to the Authority discourages other projects from competing. Even if the waivers were optional, Ms. Rios believes the Housing Authority would always get them, no matter what. She asked where the list of fees to be waived, as specified in the existing ordinance, came CDBG Commission Regular Meeting June 14, 2012 Fee Waivers Segment Excerpt 3 from. Ms. Rios wondered whether the Council could pick and choose which fees to waive. Ms. Jones was unsure, but noted that in the past, fee waivers have been all or nothing. She confirmed that under Option D, waivers would only be granted to projects within the parameters specified. Margaret Long said she liked that restriction, because projects for persons who are homeless, have a disability and/or are very low‐income, are the most difficult for investors, since they have the least potential for profit. It makes sense to level the playing field somewhat between the Housing Authority and other developers. Ms. Long added that she doesn’t like deferring fees, because after 15 years of inflation, what are you really getting? Emily Sander said Option D was good because the actual percentage of Housing Authority participation isn’t the issue. She wanted to know if the waivers would always be granted to projects meeting the criteria. Ms. Jones said the language was “may,” and Council could deny them if the City were in dire financial straits. Jamaal Curry was concerned that the language was too open‐ended. Mr. Browning was concerned that eventually the definitions would expand back to where the Housing Authority is exempt from everything again. Ms. Rios thought limiting the exemptions was a good place to start. She was comfortable with waivers being limited to specific types of projects, and not specific types of fees. Ms. Jones pointed out that Council can waive fees, but that doesn’t preclude the Housing Authority from asking for additional project support from the Competitive Process (CDBG, HOME, or Affordable Housing Fund dollars) in the future. The Commission agreed with her recap of the discussion: Option D is preferred, in order to level the playing field between the Housing Authority and other developers of affordable housing. The Commission would like to see fee waivers extended to other nonprofit developers as well, if feasible. Economic Advisory Commission 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6324 970.224.6107 - fax fcgov.com MEMORANDUM DATE: February 20, 2013 TO: Mayor and Councilmembers FROM: Economic Advisory Commission THROUGH: Josh Birks, Economic Health Director Darin Atteberry, City Manager RE: Housing Authority Fee Waivers Recommendation Diane Jones, Julie Brewen, and Chadrick Martinez presented information regarding Housing Authority Fee Waivers to the Economic Advisory Commission in January, 2013. Per Colorado statute and a City of Fort Collins’ ordinance, the Fort Collins Housing Authority (FCHA) projects are exempt from taxes and fees. Per Council request, staff was asked to examine the current fee waiver policy and provide some additional options for future projects. Diane Jones detailed four options to the EAC which included; A) the use of Community Development Block Grant (CDBG) and HOME funds to cover the fees; B) Affordable Housing/Human Services Tax or Fee; C) Defer fees to the end of the first financing period; or D) make the fee waivers optional, according to established criteria. Based on research and legal requirements, Staff is recommending option D to Council. The Economic Advisory Commission further discussed this topic at their February meeting and determined that Option D supports the long term goal of keeping Affordable Housing options available to those who need it, meets our sustainability needs, and has the flexibility for the City to support the needs of our low-income population moving forward. After thorough consideration and discussion, the EAC developed the following recommendation to the Fort Collins City Council. Christophe Febvre moved and Sam Solt seconded: The Economic Advisory Commission (EAC) supports the staff recommendation for Option D Make the fee waivers optional, according to established criteria in amending the current ordinance for Fort Collins Housing Authority Fee Waivers and recommends Council approve it on first reading. Motion passed 6 – 0 ATTACHMENT 8 ATTACHMENT 9 Fort Collins Housing Authority Significant Developments Past 10 Years Project Provincetowne 2011 Villages on Stanford 2010 Villages on Elizabeth 2007 Number of Units 85 82 48 Type of Construction New Construction Rehabilitation Rehabilitation Number of 30% AMI Units 18 or 21% of the Development 10 or 12% of the Development 6 or 13% of the Development Fees Waiver  Plan Review Fees  Building Permits Fees  Utility Development Review Fees  CIE Fees  Plan Review Fees  Building Permit Fees  CIE Fees  Variance Property Right Fees (Parking Reduction)  Plan Review Fees  Building Permit Fees  CIE Fees Value of Waiver $557,378 in Waived Fees:  $4,762.16 Utility Development Review fees  $42,720.42 Permit and Plan check fees waived  $509,895.65 CIE fees waived $3,649.01 in Waived Fees:  $1,471.01 ‐ Plan Review Fees and Building Permits  $2,103.00 – CIE  Zoning Variance Fee $75.00  Sales Tax Exemption on Material $2,451.41 in Waived Fees  $1,171.01 ‐ Plan 2013 Larimer County AMI at 30% 2013 Larimer County Area Median Incomes at 30% 1 Person Household 2 Person Household 3 Person Household 4 Person Household $16,320 $18,660 $21,000 $23,310 ATTACHMENT 11 MEMORANDUM TO: Economic Advisory Committee FROM: Julie Brewen, Executive Director DATE: February 13, 2013 SUBJECT: Affordable Housing Fee Waiver This memorandum is being provided to give additional information to the Economic Advisory Commission on the Low Income Housing Tax Credit (LIHTC) program and it positive impact on the Fort Collins Community. LIHTC Program The Low-Income Housing Tax Credit (LIHTC) program has provided critical financing for more than 2 million rental homes across the United States. Since its inception, 2041 LIHTC units have been developed in Fort Collins. These developments are dispersed throughout the City of Fort Collins and exemplify the success of the program and the positive impact on the community. FORT COLLINS LIHTC APARTMENT COMPLEX NAME Number of Units LIHTC Land Use Restriction Agreement Expiration Date Hickory Hill Village 3425 Windmill Drive 92 2022 Rose Tree Village Apts. 1000 W. Horsetooth Road 120 2025 Willow Grove Village 1025 Cunningham Drive 72 2019 CARE Housing/Greenbriar Village 400 Butch Cassidy Drive 40 2025 Buffalo Run Apartments 1245 E. Lincoln Avenue 144 2037 CARE Housing at Eagle Tree 6675 S. Lemay Avenue 36 2037 Reflections Senior (aka JFK Sr. Apts.) 321 E. Troutman Parkway 72 2038 Elizabeth St. Senior Apartments 1508 W. Elizabeth Street 50 2039 CARE Housing/Windtrail Park Apartments 50 2039 ATTACHMENT 12 FORT COLLINS LIHTC APARTMENT COMPLEX NAME Number of Units LIHTC Land Use Restriction Agreement Expiration Date 2120 Bridgefield Land Northern Hotel 172 N. College Avenue 47 2040 CARE Housing/Fairbrooke Heights 1827 Somerville Drive 36 2041 CARE Housing/Provincetowne 626 Quaking Aspen Drive 85 2041 Bull Run 820 Merganser Drive 176 2042 Country Ranch 2921 Timberwood Drive 118 2042 Fox Meadows Apartments 3644 S. Timberline Road 138 2042 Oakbrook/Manor Apartments 3200 Stanford Road 107 2042 Residence at Oak Ridge 4750 Wheaton Drive 44 2042 Woodland Apartments 1025 Wakerobin Lane 116 2042 CARE Housing/Swallow 1303 W. Swallow Road 40 2045 Springfield Court 3851 S. Taft Hill Road 63 2045 Caribou Apartments 4135 Verbena Way 97 2047 Village on Elizabeth 2217 W. Elizabeth 48 2047 Village on Stanford 2631 Stanford Road 82 2048 Caribou Apartments - Phase II 4125 S. Timberline Road 96 2051 Legacy Senior Residences (Proposed) 411 Linden Street 72 2051 TOTAL 2,041  The Housing Credit does what Congress intended it to do. Originally enacted as part of the Tax Reform Act of 1986, it generates private capital investment to support the development of new and rehabilitated affordable rental homes for low and very low- income families.  The Housing Credit is a very effective and efficient use of tax policy. Credits are awarded to developers through a competitive allocation process. The Housing Credit leverages other private capital in addition to investor equity; and, the Housing Credit is priced competitively in the market.  Investors purchase a 10-year tax credit. Investors purchase the tax credits from the developer in exchange for an equity stake in the housing development. With the capital from the investor, developers such as FCHA can limit the money borrowed to fund construction, reducing both the amount of debt and rent levels. Investors’ equity stake in the housing developments results in competitive yields, and the opportunity to revitalize the communities.  Computing Credits – LIHTC are calculated using an eligible basis formula. This include depreciable assets: Development cost minus land, offsite infrastructure improvements, grants and fees and costs related to permanent financing, tax credit syndication and reserves. An applicable percentage of affordable units and an Annual Percentage Rate are all used to determine the annual tax credit. Eligible Basis (x) Applicable Fraction (% of affordable Units) (=) Total Qualified Basis (x) Applicable Percentage Rate (Fluctuates Monthly) (=) Annual Tax Credit $9,000,000 100% $9,000,000 9% $810,000 In this example, the annual credit, sold to investors who have a federal tax liability, could generate up to $5.67 million to help finance the development.  The private sector takes all the development and marketing risk associated with the Housing Credit, not the government. Strong oversight and accountability enforced by the private sector is a distinguishing feature of the Housing Credit. The private sector faces powerful credit recapture penalties for non-compliance with allowable income and rent levels and other occupancy requirements. There is ongoing risk to the investors. Investors only get to claim and keep the tax credits if affordable housing units are built, leased and maintained as affordable housing throughout the compliance period (15 years). Additionally, there is a 15 year extended use period in Colorado requiring much longer affordability. There is also ongoing risk to the developers. Developers provide guaranties throughout the 15 year compliance period, including operating deficit and tax credit guaranties.  The program creates jobs for small business. Since their inception, LIHTCs have helped finance 41,656 affordable rental units in Colorado, resulting in over $6.1 billion in economic impact and indirectly supporting 34,731 jobs. As discussed in the EAC meeting jobs are created for architects, plumbers, electricians, carpenters, concrete fabricators, bricklayers, roofers, and other specialties all benefit when a Housing Credit property is being built. Property managers, maintenance workers, service providers and others benefit when the property is occupied.  The Housing Credit provides affordable housing solutions. Working-class families, seniors, and the homeless benefit from LIHTC housing. LIHTC properties must be rented only to households whose income is at or less than 60 percent of the area median income. In Fort Collins this translates to households with incomes between $16,320 (1 person household at 30%) to $46,620 (4 person household at 60%).  The program addresses the continued need for affordable housing. Housing Credit properties in Fort Collins typically experience a lower average vacancy rates than most of the market. Currently, FCHA’s portfolio is below 4%. A shortage of affordable rentals for low-income families continues to exist in Fort Collins despite the number of units already in the market. The City’s Affordable Housing Strategic Plan has identified a need for an additional 6,196 units in Larimer County for households between 0-50% of Area Median Income. Additionally, the City’s Consolidated Housing Plan list increasing the inventory of affordable housing units as the number one priority. To help achieve this goal, the LIHTC program is the primary funding mechanism available to FCHA.  Foreclosure risk is minimal. Foreclosures have occurred in less than 1% of all Housing Credit properties over the 25 years of the program, outperforming all other classes of real estate.  City Fee Waiver. Given the competitive nature of the LIHTC program, it is anticipated that a project may move forward with a request every 2-3 years. Under the current proposal only projects with 30% or less of AMI targets or projects for homeless or disabled will be consider for fee waivers. ORDINANCE NO. 037, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS REPEALING ORDINANCE NO. 065, 1999, RESOLUTION 1996-073 AND RESOLUTION 1988-081; MAKING CERTAIN AMENDMENTS TO THE CITY CODE AND LAND USE CODE TO ALLOW FOR THE DISCRETIONARY WAIVER OF CITY FEES FOR CERTAIN KINDS OF HOUSING AUTHORITY PROJECTS TO BE CONSTRUCTED IN THE CITY; AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY AND THE HOUSING AUTHORITY WITH REGARD TO SUCH WAIVERS 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 has 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 has 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 “backfilled” by the City; and WHEREAS, the FCHA often holds only a small ownership interest in the projects that it sponsors because of the way in which the federal funding for such projects is structured; and WHEREAS, City staff and FCHA staff have differing opinions as to whether fee waivers are required by state law for affordable housing projects in which a housing authority holds only a minor ownership interest; and WHEREAS, the difference of opinion between City and FCHA staff as to whether fee waivers are statutorily required for such projects arises because of the wording of C.R.S.§ 29-4- 227, which states that housing authorities within the state are exempt from the payment of any taxes or fees to the state or any subdivision thereof, while it goes on to state, in effect, that projects owned by or leased to an entity in which a housing authority has only a partial ownership interest are exempt only from taxation; and WHEREAS, while the City Council remains strongly supportive of affordable housing in the City and believes it to be in the best interests of the City to continue to financially support such projects through fee waivers, it also recognizes its responsibility to not jeopardize the City’s financial well-being in doing so, or the timely construction of the capital projects that are funded by such fees; and 2 WHEREAS, to balance these competing considerations, and in view of the latitude accorded the City by the relevant provisions of state law, the City Council wishes to amend 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; and WHEREAS, City staff and staff of the Fort Collins Housing Authority have recommended that future fee waiver requests be limited to 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 City residents; and WHEREAS, the City Council believes that Staff’s recommendation is in the best interests of the City and wishes to amend the City Code accordingly. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS AS FOLLOWS: Section 1. That Ordinance No. 65, 1999, Resolution 96-73, and Resolution 88-81 are hereby repealed in their entirety. Section 2. That the definition of “Building Permit” contained in Section 7.5-17 of the Code of the City of Fort Collins is hereby amended by the deletion of subparagraph (1), so as to read in its entirety as follows: Sec. 7.5-17. Definitions. . . . Building permit shall mean the permit required for new construction and additions under Division 2.7 of the Land Use Code, or, if applicable, Section 29-5(a) of the Transitional Land Use Regulations, and the permit required for the installation of a mobile home pursuant to Subsection 18- 8(b) of this Code; provided, however, that the term building permit, as used herein, shall not be deemed to include permits required for the following: (1) Land development projects (or portions thereof) of any housing authority organized under the provisions of Section 29-4- 101 et seq., C.R.S., also known as "The City Housing Law." (21) The installation of any mobile home that replaces a previously existing mobile home on an existing mobile home lot under Subsection 18-8(b) of the Code. (32) Remodeling, rehabilitation or other improvements to an existing structure or rebuilding a damaged or destroyed structure unless: (a) in the case of a residential use, such remodeling, 3 expansion or improvement results in the creation of one (1) or more new dwelling units, or (b) in the case of a commercial or industrial use, such remodeling, expansion or improvement increases the gross square footage of the existing structure(s). Section 3. That Section 7.5-19 of the Code of the City of Fort Collins is hereby amended so as to add a new subparagraph dealing with the waiver of fees for affordable housing projects, so that Section 7.5-19 reads in its entirety as follows: Sec. 7.5-19. Imposition, computation and collection of fees. (a) Payment of the fees imposed under the provisions of this Article shall be required as a condition of approval of all development in the City for which a building permit is required. The amount of such fees has been calculated using current levels of service and the data and methodologies described in Capital Improvement Expansion Cost Study, dated May 21, 1996, as amended; the City's Street Oversizing Impact Fee Study, dated July 15, 1997, and Street Oversizing Impact Fee Study Update, dated November 28, 2000, as amended; and The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers, as amended. The fees due for such development shall be payable by the feepayer to the Building Official prior to or at the time of issuance of the first building permit for the property to be developed, except to the extent that an agreement deferring all or any portion of such payment has been executed by the City providing for a different time of payment approved by the City Council by resolution. If, during the period of any such deferral, the amount of the deferred fee is increased by ordinance of the City Council, the fee rate in effect at the time of payment shall apply. If the building permit for which a fee has been paid has expired, and an application for a new building permit is thereafter filed, any amount previously paid for a capital improvement expansion fee and not refunded by the City shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. (b) Notwithstanding the foregoing, the City Council may, by ordinance, waive the imposition of any fee imposed by the provisions of this Article for a housing project wholly or partially owned by a housing authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its sole discretion, determines that: (1) the affordable housing project is intended to house homeless or disabled persons, as such terms are defined by the Department of Housing and Urban Development, or 4 households with an annual income that does not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, as published by the Department of Housing and Urban Development; 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. Section 4. That Section 7.5-26 of the Code of the City of Fort Collins is hereby amended so as to read in its entirety as follows: Sec. 7.5-26. Deferral of fees for affordable housing. With respect to any building permit for a dwelling unit which is contained within or which constitutes an affordable housing project as defined in § 26-631, any fees established under this Article and not waived by the City Council under the provisions of Section 7.5-19(b) shall, upon the request of the applicant, be deferred until the date of issuance of a certificate of occupancy (whether temporary or permanent) for such unit or until the first day of December of the year in which the deferral was obtained, whichever first occurs. Notwithstanding any provision in this Chapter to the contrary, in the event that, during the period of deferral, the amount of the deferred fee is increased by ordinance of the City Council, the fee rate in effect at the time of the issuance of the building permit shall apply. At the time of application for any such deferral, the applicant shall pay to the City a fee in the amount of fifty dollars ($50.) to partially defray the cost of administration. No person shall knowingly make any false or misleading statement of fact in order to obtain any deferral of fees under this Section. Section 5. That Section 7.5-48 of the Code of the City of Fort Collins is hereby amended so as to add a new subparagraph (e) dealing with the waiver of fees for affordable housing projects, so that Section 7.5-48 reads in its entirety as follows: Sec. 7.5-48. Land dedication or in-lieu fees imposed. (a) The owner or developer of every land development project in the City ("applicant") must file with the Building Official of the City, prior to the issuance of a building permit for any residential structure in such project, proof that the appropriate land reservation for future dedication has been made to the school district, or that the applicant has paid an in-lieu fee, in accordance with the provisions of this Article. 5 (b) Prior to or at the time that any proposed land development project is submitted to the City for review, the superintendent of the school district, or his or her designee, shall meet with the applicant for the purpose of determining whether the school district desires the reservation of any land for future dedication as a school site within the land development project. Any such dedication or in-lieu fee requirement shall be consistent with school district planning standards established by the school district. Said standards shall reflect, without limitation: (1) The student yields and technical and educational specifications for various school facilities (elementary, middle and high school levels), consistent with the policy of the Board of Education of the school district; (2) The capacity demand for each category of school facility resulting from the construction of dwelling units in the land development project; and (3) School site acreage requirements. Any reservation of sites or land areas required under the provisions of this Article shall occur in the following fashion. At or before the time of final approval of any land development project by the City, the sites or land areas to be dedicated to the school district shall be reserved by designation on the plat submitted to the City for approval in connection with the land development project. On or before the date that the first building permit for the project is issued by the City, such reserved site or land area shall be dedicated to the school district. In the event that the school district determines, in its sole discretion, that the dedication of a reserved site is necessary prior to the issuance of any building permit for the project within which such site is located, the school district shall so notify the person(s) shown by the records of the County Assessor as being the then current owner(s) of such site. Said notice shall be sent by certified mail, return receipt requested, and a copy of said notice shall be provided to the City's Director of Community Development and Neighborhood Services. Within sixty (60) days of the mailing of said notice, the reserved property that is the subject of the mailing shall be dedicated to the school district by the owner(s) thereof. (c) Any dedication required under this Article shall be accomplished by the execution of a general warranty deed by the property owner conveying to the school district land required to be dedicated, free and clear of all liens, encumbrances and exceptions except those approved in writing by the school district, including, without limitation, real property taxes, which shall be prorated to the date of conveyance. The property owner shall also provide to the school district a title insurance commitment and policy in an amount equal to the fair market value of the dedicated property. At the time of dedication, the dedicated 6 site shall have overlot grading, direct access to a publicly dedicated street improved to city standards and utilities stubbed to the site. Upon completion of the conveyance in accordance with the provisions of this Section, the school district shall promptly certify to the City in writing that the dedication has been made. (d) In the event that the dedication of sites or land areas for school site purposes within a particular land development project is not deemed feasible or in the best interests of the school district as determined by the superintendent, or his or her designee, the school district shall so notify the City's Director of Community Development and Neighborhood Services in writing, and the City shall require the applicant to pay the in-lieu fees as provided in this Article. The amount of the in-lieu fees to be paid under the provisions of this Article shall be established by agreement with the school district and shall be equal to the full market value of the sites or land areas within a land development project that could be required to be reserved for future dedication for school site purposes under Subsection (b) above. Said fair market value shall be determined on the basis of the average value of developed sites for residential uses in the City as approved for development by the City, with curb, gutter, streets and utilities to the site, according to City engineering standards. (e) Notwithstanding the foregoing, the City Council may, by ordinance, waive the imposition of any fee imposed by the provisions of this Article for a housing project wholly or partially owned by a housing authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its sole discretion, determines that: (1) the affordable housing project is intended to house homeless or disabled persons, as such terms are defined by the Department of Housing and Urban Development, or households with an annual income that does not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, as published by the Department of Housing and Urban Development; 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. Section 6. That Section 7.5-71 of the Code of the City of Fort Collins is hereby amended so as to add new subparagraphs (c) and (d) dealing with the waiver of fees for affordable housing projects, so that Section 7.5-71 reads in its entirety as follows: 7 Sec. 7.5-71. Collection of neighborhood parkland fee. (a) Hereafter, payment of a neighborhood parkland fee in accordance with this Section shall be required as a condition of approval of all residential development for which a building permit is required, as those terms are defined in § 7.5-17 of this Code. The fees due for such development shall be payable by the feepayer to the Building Official prior to or at the time of issuance of the first building permit for the property to be developed, unless an agreement has been executed by the City which provides for a different time of payment. All such payments shall be deposited by the Financial Officer in the fund created in § 8- 80. Only one (1) fee shall be charged for any dwelling unit. No additional fee for acquisition and development of neighborhood parks shall be charged for the same dwelling unit. If the building permit for which a fee has been paid has expired, and an application for a new building permit is thereafter filed, any amount previously paid for a capital expansion fee and not refunded by the City shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. (b) The amount of the fee established in this Section shall be determined for each dwelling unit as follows: 700 sq. ft. and under $ 937.00 701 to 1,200 sq. ft. 1,325.00 1,201 to 1,700 sq. ft. 1,559.00 1,701 to 2,200 sq. ft. 1,791.00 2,201 sq. ft. and over 2,181.00 (c) Notwithstanding the foregoing, the City Council may, by ordinance, waive the imposition of any fee imposed by the provisions of this Chapter for a housing project wholly or partially owned by a housing authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its sole discretion, determines that: 8 (1) the affordable housing project is intended to house homeless or disabled persons, as such terms are defined by the Department of Housing and Urban Development, or households with an annual income that does not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins- Loveland metropolitan statistical area, as published by the Department of Housing and Urban Development; 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. (d) If any such dwelling unit is contained within or constitutes an affordable housing project as defined in Chapter 26, Article IX of the Code, the fee established in this Section, if not waived by the City Council under the provisions of subsection 7.5-71(c) shall, upon the request of the applicant, be deferred until the date of issuance of a certificate of occupancy (whether temporary or permanent) for such unit(s) or until the first day of December of the year in which the deferral was obtained, whichever first occurs. Any person requesting such deferral shall, as a condition precedent to obtaining the deferral, secure the future payment of the deferred fee(s) by providing the City with a letter of credit or certificate of deposit in a form and amount acceptable to the City. At the time of application for any such deferral, the applicant shall pay to the City a fee in the amount of fifty dollars ($50.) to partially defray the cost of administration. No person shall knowingly make any false or misleading statement of fact in order to obtain any deferral of fees under this Section. Section 7. That Section 10-28 of the Code of the City of Fort Collins is hereby amended so as to add a new subparagraph (h) dealing with the waiver of fees for affordable housing projects, so that Section 10-28 reads in its entirety as follows: Sec. 10-28 Appeals/variance procedure. (a) The Water Board, as established in § 2-436, shall hear and decide appeals from decisions of the Utilities Executive Director and requests for variances from the requirements of this Article. Any final decision of the Board may be subject to review by the City Council. (b) The Water Board shall hear and decide appeals when it is alleged that there is an error in any requirement, decision or determination made by the 9 Utilities Executive Director in the enforcement or administration of this Article. Persons desiring to appeal a decision of the Utilities Executive Director to the Water Board shall at the time of making such appeal pay a docket fee in the amount of three hundred dollars ($300.). Written notice of hearing shall be given to the appellant at least three (3) days prior to the hearing by mailing the notice to the appellant's last known address by regular mail. (c) Persons desiring to request a variance shall at the time of application for said variance submit a variance application together with a floodplain use permit application, and shall at the time of application pay the floodplain use permit fee of twenty-five dollars ($25.) and a variance processing fee in the amount of three hundred dollars ($300.). Written notice of a variance hearing shall be given to the applicant at least three (3) days prior to the hearing by mailing the notice to the applicant's address, as set forth in the variance application, by regular mail. (d) The Water Board shall from time to time adopt such additional rules and regulations as it deems necessary and advisable for the preparation and submission of variance requests for Board review, for the conduct of its hearings and for carrying out the provisions hereof. (e) In passing upon such applications, the Water Board shall consider all technical evaluations, all relevant factors and standards specified in other sections of this Article and: (1) The danger that materials may be swept onto other lands to the injury of others; (2) The danger to life and property due to flooding or erosion damage; (3) The susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the individual owner; (4) The importance of the service provided by the proposed facility to the community; (5) The availability of alternate locations for the proposed use which are not subject to flood or erosion damage; (6) The compatibility of the proposed use with existing and anticipated development; 10 (7) The relationship of the proposed use to the comprehensive plan and floodplain management program of that area; (8) The safety of access to the property in times of flood for ordinary and emergency vehicles; and (9) The expected flood elevation, velocity, duration, rate of rise and sediment transport of the floodwaters and the effects of wave action, if applicable, expected at the site. (f) Upon consideration of the factors of this Section and the purposes of this Article, the Water Board may attach such conditions to the granting of a variance as it deems necessary to further the purposes of this Article, and shall incorporate by reference the requirements of this Article that shall apply to the development or activities for which a variance has been granted. (g) The Utilities Executive Director shall maintain the records of all appeal actions, including technical information, and report any variances to the Federal Insurance Administration upon request. (h) Notwithstanding the foregoing, the City Council may, by ordinance, waive the imposition of any fee imposed by the provisions of this Chapter for a housing project wholly or partially owned by a housing authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its sole discretion, determines that: (1) the affordable housing project is intended to house homeless or disabled persons, as such terms are defined by the Department of Housing and Urban Development, or households with an annual income that does not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, as published by the Department of Housing and Urban Development; and (2) the proposed waiver, if approved by the City Council, will not jeopardize the financial interests of the City. Section 8. That Section 2.2.3 (D) of the Land Use Code of the City of Fort Collins is hereby amended so as to add a new subparagraph dealing with the waiver of fees for affordable housing projects, so that Section 2.2.3 (D) of the Land Use Code of the City of Fort Collins reads in its entirety as follows: Sec. 2.2.3 Step 3: Development Application Submittal . . . 11 (D) Development Review Fees. (1) Recovery of Costs. Development review fees are hereby established for the purpose of recovering the costs incurred by the city in processing, reviewing and recording applications pertaining to development applications or activity within the municipal boundaries of the City, and issuing permits related thereto. The development review fees imposed pursuant to this Section shall be paid at the time of submittal of any development application, or at the time of issuance of the permit, as determined by the City Manager and established in the development review fee schedule. (2) Development Review Fee Schedule. The amount of the City’s various development review fees shall be established by the City Manager, and shall be based on the actual expenses incurred by or on behalf of the City. The schedule of fees shall be reviewed annually and shall be adjusted, if necessary, by the City Manager on the basis of actual expenses incurred by the City to reflect the effects of inflation and other changes in costs. At the discretion of the City Manager, the schedule may be referred to the City Council for adoption by resolution or ordinance. (3) Affordable Housing Exemption. Notwithstanding the requirement contained in subparagraph (2) above that the development review fees shall be based on actual expenses incurred by or on behalf of the City, applications relating to the review of affordable housing projects shall be totally or partially exempt from the fees authorized in this subsection (D) according to the following criteria: (a) The fees authorized under this subsection (D) shall be entirely waived for development projects in which one hundred (100) percent of the dwelling units qualify as affordable housing units for sale or for rent. (b) The fees authorized under this subsection (D) shall be reduced in direct proportion to the percentage of affordable housing units for sale or for rent that are provided in the development project (within the authorized waiver range of ten [10] percent to one hundred [100] percent), in accordance with the following formula: Number of affordable housing units Total number of housing units x Total fees assessed = Amount of fees waived 12 (c) The fees authorized under this subsection (D) shall not be reduced if less than ten (10) percent of the dwelling units within the project qualify as affordable housing units for sale or for rent. (d) In order to determine whether a development project is eligible for a waiver or reduction of fees under this subparagraph, any applicant seeking such waiver or reduction must submit documentation evidencing the eligibility of the development project to the Director, who may, upon review of such documentation, defer the payment of said fees to such time, if at all, that a certificate of occupancy is sought for the development project. At that time, prior to the issuance of any certificate of occupancy for the development project, a final determination shall be made by the Director as to whether the development project qualifies for a waiver or reduction of the fees. In the event that the Director determines that the development project does not so qualify, all such fees shall be due and payable prior to the issuance of the first certificate of occupancy. (3) Notwithstanding the foregoing, the City Council may, by ordinance, waive the imposition of any fee imposed by the provisions of this Chapter for a housing project wholly or partially owned by a housing authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its sole discretion, determines that: (a) the affordable housing project is intended to house homeless or disabled persons, as such terms are defined by the Department of Housing and Urban Development, or households with an annual income that does not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, as published by the Department of Housing and Urban Development; and (b) the proposed waiver, if approved by the City Council, will not jeopardize the financial interests of the City. Section 9. That Section 2.13.3 of the Land Use Code of the City of Fort Collins is hereby amended so as to add a new subparagraph (E) dealing with the waiver of fees for affordable housing projects, so that Section 2.13.3 of the Land Use Code of the City of Fort Collins reads in its entirety as follows: 13 2.13.3 Application An Application for Vested Rights Determination or Takings Determination shall be submitted to the Director of Community Planning and Environmental Services (the "Director") in the form established by the Director. An application fee in the amount of two thousand five hundred dollars ($2,500.00) per application (i.e., $2,500.00 for vested rights, $2,500.00 for takings, whichever is applied for) shall accompany and be part of the application. The application shall, at a minimum, include: (A) the name, address and telephone number of the property owner and authorized applicant if other than the owner; (B) the street address, legal description and acreage of the property; and (C) for Vested Rights Determinations, all factual information and knowledge reasonably available to the owner and applicant to address the criteria established in Section 2.13.10. (D) for Takings Determination, all factual information and knowledge reasonably available to the owner and applicant to address the criteria established in Section 2.13.11, including, without limitation, the following: (1) documentation of the date of purchase and the purchase price of such property, and any and all offers to purchase such property made by any person within the last three (3) years; (2) a description of the physical features present on such property, the present use of such property, the use of such property at the time it was purchased, the use of such property on the day prior to the time of the adoption of this Land Use Code, the uses permitted on such property at the time of application pursuant to this section, and a detailed description of the regulations which are alleged to result in an elimination of economically beneficial use of the land; (3) evidence of any investments made by the owner to improve such property, the date the improvements were made, and the costs of the improvements; (4) all appraisals, studies and any other supporting evidence related to such property; (5) any actions taken by the city related to such property; 14 (6) a description of the use which the owner believes represents the minimum legally required economically beneficial use of such property, and all documentation, studies and other supporting evidence thereof. The application fee shall be applied to all out-of-pocket expenses actually incurred by the city in connection with the hearing process, including without limitation fees for, and expenses incurred by, the Hearing Officer; costs of reporting and transcribing the proceedings before the Hearing Officer; and costs of producing of exhibits. The application fee shall not be applied to any in-house costs incurred by the city, such as compensation for city staff time. Any portion of the application fee not used by the city to pay the costs referred to above shall forthwith be returned to the applicant upon completion of the hearing and appeal process. (E) Notwithstanding the foregoing, the City Council may, by ordinance, waive the imposition of any fee imposed by the provisions of this Chapter for a housing project wholly or partially owned by a housing authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its sole discretion, determines that: (1) the affordable housing project is intended to house homeless or disabled persons, as such terms are defined by the Department of Housing and Urban Development, or households with an annual income that does not exceed thirty (30) percent of the area median income for the applicable household size in the Fort Collins-Loveland metropolitan statistical area, as published by the Department of Housing and Urban Development; and (2) the proposed waiver, if approved by the City Council, 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. Section 10. That the Mayor is hereby authorized and directed to enter into an intergovernmental agreement between the City and the Fort Collins Housing Authority, upon terms and conditions consistent with the provisions of this Ordinance and satisfactory to the Mayor, City Manager and City Attorney, documenting the Housing Authority’s intent to limit future fee waiver applications to affordable housing projects that meet the criteria established by this Ordinance. 15 Introduced, considered favorably on first reading, and ordered published this 5th day of March, A.D. 2013, and to be presented for final passage on the 19th day of March, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of March, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Review Fees and Building Permits  $1,280.40 – CIE Fees  Sales Tax Exemption on Material ATTACHMENT 10