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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/26/2013 - HEARING AND RESOLUTION 2013-027 ADOPTING THE AFFORDATE: March 26, 2013 STAFF: Ken Waido AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT Hearing and Resolution 2013-027 Adopting the Affordable Housing Redevelopment Displacement Mitigation Strategy, a Strategic Plan for Preserving Affordable Housing, including Mobile Home Parks and Other Types of Affordable Housing. EXECUTIVE SUMMARY The City Council placed the development of an “Affordable Housing Relocation Strategic Plan” on its 2012 Work Plan. The purpose of the Strategic Plan was to develop City policies and requirements applicable to redevelopment projects by defining the City’s role, responsibilities, obligations, and involvement in redevelopment projects which cause the displacement of low-income people from their homes (with an emphasis on mobile home parks), whether they are located inside the city limits or within the City’s Growth Management Area (GMA), within the restrictions of the City Charter. The Affordable Housing Redevelopment Displacement Mitigation Strategy identifies strategies to preserve existing affordable housing units. It also clarifies City and property-owner/redeveloper responsibilities and obligations to residents when redevelopment projects cause the displacement of low-income people from their homes. BACKGROUND / DISCUSSION City policies contained in City Plan, the City’s Comprehensive Plan, and the Affordable Housing Strategic Plan 2010- 2014, encourage the preservation of existing affordable housing units, list manufactured housing/mobile homes as an important component of the community’s housing stock, and call for the mitigation of impacts on residents displaced through the closure of mobile home parks due to redevelopment activities. The City Council placed the development of an “Affordable Housing Relocation Strategic Plan” on its 2012 Work Plan to address City policies contained in City Plan and the Affordable Housing Strategic Plan 2010-2014. This past fall, City staff, with the assistance of a consulting team, began an effort to clarify the City’s role, responsibilities, and obligations in avoiding the loss of affordable housing and dealing with relocation issues when redevelopment causes the displacement of low-income people from their homes. The Affordable Housing Redevelopment Displacement Mitigation Strategy addresses the City Council’s request for a change to the current ad hoc, case-by-case methods of dealing with the loss of affordable housing and mobile home parks. For a variety of reasons, a couple of mobile home parks recently closed in Fort Collins, and since the mid-1990s a total of five parks have closed. These closures displaced park residents and caused them to relocate. In all of the displacement cases, City staff provided support and collaborated with other agencies to relocate or find other housing for park residents. While there were some similarities in these park closures, the City’s involvement varied, and was basically handled on an ad hoc, case-by-case basis. Affordable multi-family rental units are typically considered the more common form of low-income housing in the community. In 2010, the City Council adopted the Affordable Housing Strategic Plan 2010-2014, which contains four priority goals for the development of additional affordable housing; the preservation of existing affordable units; the addition of units and facilities for special populations (homeless, seniors, etc.); and offering additional home ownership opportunities for low-income families. The City already has several programs in place to acquire, manage, and preserve apartments on a non-profit basis to keep rents at affordable levels and to provide assistance to first-time home buyers. Manufactured/mobile homes are a unique form of low-income housing. Many mobile home residents are homeowners (they own their unit) but lease the land on which their home is located. Closure/redevelopment of a mobile home park means that unit owners must move not only their personal belongings, but also must move the unit itself, or find another form of housing – a challenging and stressful situation for residents. March 26, 2013 -2- ITEM 10 The following table presents a comparison of the number of units in designated affordable housing multi-family apartment/condo complexes, where rents are limited to levels affordable to low-income families and that contain long- term commitments (e.g., 30 years) for affordability, versus the number of manufactured/mobile housing units located in mobile home parks within the City limits and boundaries of the Growth Management Area (GMA). Number of Units Category 1,969 Designated Affordable Housing Units in Multi-Family Apartment/Condo Complexes 2,781 Mobile/Manufactured Housing Units within the City Limits and GMA boundary. While not every family residing in a mobile home park qualifies as low-income, information from key stakeholder groups, including mobile home park property-owners/managers and park residents, indicates that the vast majority of residents are low-income (including many seniors on fixed incomes). Thus, from the table data above, mobile home units represent a significant proportion of the city’s inventory of lower cost/affordable housing. However, there are no requirements that lot rents remain affordable to low-income families, and there no affordability period guarantees with any of the mobile home parks. Most mobile home park residents are on month-to-month leases. The Affordable Housing Redevelopment Displacement Mitigation Strategy is a strategic plan that deals with displacement mitigation of families forced to relocate due to redevelopment activities. But, the strategic plan also deals with preservation and stabilization options to reduce the potential for future redevelopment and displacement of low- income residents. Simply put, if a affordable rental unit and/or mobile home park can be stabilized and preserved, it reduces the probability of needing to deal with relocation issues in the future. Topics covered in greater detail in the strategic plan include: • A review of current City policies from City Plan and the Affordable Housing Strategic Plan 2010-2014. • An inventory and analysis of apartments with income controls and required affordability periods and manufactured/mobile home parks. • Options to discourage the loss of affordable housing including affordable rental units and mobile home parks including: N Acquisition of designated affordable units by non-profit agencies (e.g., the Fort Collins Housing Authority) to preserve them in the affordable housing inventory. N Rezoning of mobile home parks into a Manufactured/Mobile Home Park District. N Financial assistance for infrastructure maintenance and upgrades. N Resident purchase of mobile home parks. • Options to mitigate the impacts of dislocation from affordable housing including: N Requirements of the Federal Uniform Relocation Act. N Requirements of the Fort Collins Urban Renewal Authority. N Additional notice of mobile home park closure. N Requirements for a Relocation Report. N Required payment of relocation costs. • Summary of the public involvement process. City Council Work Session, October 23, 2012 On October 23, 2012, the planning team (staff and consultants) conducted a work session with the City Council to review mobile home park preservation techniques and relocation assistance requirements to mitigate the impact on residents displaced and forced to relocate due to a redevelopment project. The team was seeking feedback from the Council as to the level of comfort the Council may have with some of the preservation techniques and relocation assistance requirements researched by the team so far in the planning process. A summary of the work session is attached (see Attachment 1). Council gave direction to the planning team to keep all options on the table, with one exception (the Notice of Vacancy “Illegal Closures”), and to process them further with the stakeholder groups and the public, before returning to the Council for final decisions. While Council kept many options on the table, it did not mean that all options would eventually be supported and adopted by the Council. March 26, 2013 -3- ITEM 10 FINANCIAL / ECONOMIC IMPACTS Through the provision of affordable housing, more of Fort Collins’ work force can reside within the community. This means there is an available labor pool within the city, which is a positive benefit to economic sustainability. Residents of affordable housing include teachers, emergency services personnel, retail clerks, office support staff, etc., who all provide needed goods and services to Fort Collins residents on a daily basis. Redevelopment projects can produce significant benefits for Fort Collins, whether in increased sales and property tax, or by removing blighted or underused properties, or by generating jobs or employment. So, it is always wise to consider whether some types of redevelopment should be exempted from displacement mitigation strategies because they could produce benefits to the City that offset (or more than offset) the costs they impose on current residents of the property. Requirements for redevelopment projects to pay the relocation costs of displaced low-income families would eliminate the need for the City to consider contributing funds for relocations purposes. Requirements for redevelopment projects to pay for the relocation of displaced families will increase the costs of the redevelopment project and could make some projects economically infeasible. ENVIRONMENTAL IMPACTS Affordable housing helps provide for a healthy environment. By offering affordable housing options for low-income people, more of Fort Collins’ work force can live in the community instead of being forced to live outside the community and commute into the city for work. This helps reduce traffic congestion and, thus, improves air quality. Affordable housing developers, including for-profit and non-profit agencies, are utilizing green building practices. Green building practices are being used in both new construction and major rehabilitation of existing housing unit projects. These practices include geothermal applications and other energy saving techniques. Most new affordable housing developments and significant rehabilitation projects utilize financial subsidies from federal grant programs (e.g., CDBG and HOME). Utilization of federal funds requires an Environmental Assessment and an analysis of floodplain hazards, noise, hazardous materials, etc. STAFF RECOMMENDATION Staff recommends adoption of the Affordable Housing Redevelopment Displacement Mitigation Strategy. Affordable rental units (apartments and homes), mobile homes (pre-1976), and manufactured homes (1976 and later, which meet HUD safety standards) remain an important source of affordable housing in Fort Collins and Larimer County. When affordable residential units are lost, they compound the difficulty of meeting the city’s affordable housing needs. Many of the existing mobile/manufactured homes are located in mobile home parks, which raise challenges when mobile home parks are redeveloped for other uses. Mobile/manufactured home owners own their homes but rent the spaces where they are located. When mobile home parks close, residents need to move their homes to other locations, which is complicated by the fact that many homes are old and difficult to move and spaces in mobile home parks are often in short supply (particularly for older homes). If the mobile/manufactured home cannot be moved, the owner faces the loss of not just a place to live but an asset that they have purchased. In recent years, Fort Collins has experienced several mobile home park closures, has been asked to assist in relocating residents, and has done so on an ad hoc, case-by-case basis. The Affordable Housing Redevelopment Displacement Mitigation Strategy document sets a strategic policy direction for the City to address these issues in a more consistent way in the future. The Affordable Housing Redevelopment Displacement Mitigation Strategy recommends that the City of Fort Collins take the following seven steps to address the above issues, each of which is described in more detail in the Strategic Plan document. Some of the following recommended steps have been modified from the Public Review Draft document based on recommendations by the Affordable Housing Board and/or the Planning and Zoning board - the footnotes help explain the changes. A table comparing the initial recommendations in the Public Review Draft and March 26, 2013 -4- ITEM 10 changes made and contained in the Affordable Housing Redevelopment Displacement Mitigation Strategy document presented to the City Council is provided in the Board/Commission Recommendations section below. 1. Continue to expand the inventory of “designated affordable” dwelling units, buildings, and complexes through current programs administered by the Fort Collins Housing Authority, other non-profit affordable housing agencies, and private developers. 2. Continue to offer relocation assistance to those residents of affordable units redeveloped with the use of federal, Fort Collins Urban Renewal Authority (FCURA), or other City funds, but do not extend a requirement to pay relocation expenses in private redevelopment projects that do not use public funds and do not require a discretionary land use decision by the City.1 3. Draft a Manufactured Home Park Zoning District and rezone into that district those mobile home parks that are relatively large and can serve as significant sources of affordable housing for the long term. From 1965 to 1997 the City of Fort Collins had two mobile home park zoning districts and most of the existing mobile home parks located inside the city limits were zoned in one of those districts. A copy of the City’s former M-M Medium Density Mobile Home Park district is attached for reference (see attachment 2). 4. Create a loan or grant program, or use the existing financial assistance competitive process, that would be available to finance significant investments in new or existing affordable housing infrastructure that would be available to those larger mobile home parks willing to commit to continuing operation of their mobile home parks for a at least 10 years.2 5. Require a one (1) year notice of closure period for mobile home parks (rather than the 6 month minimum notice required by the state). As an alternative, allow a six (6) month closure notice if the park owner delivers to each resident on or before the notice date a detailed Relocation Report listing all available mobile home park spaces available within 25 miles, providing the contact information for each of those park owners, and including documented estimates of the costs of moving mobile/manufactured homes to those locations. In addition, the notice provision shall also alert residents that the park may be closed before the mandatory notice period has expired if all park residents have been successfully relocated to each party’s mutual satisfaction.3 6. Require that redevelopment projects involving City financial assistance or a discretionary land use decision by the City pay (a) actual costs of relocating owner occupied mobile/manufactured homes to a new site within a 25 mile radius of the mobile home park, up to a maximum of $6,000 for a single-wide home and $8,000 for a double-wide home, and (b) the actual value (as determined by the County Assessor) of any home that is structurally able to be moved but that cannot be moved due to the unavailability of any spaces within 25 miles, and (c) one-half of the actual value (as determined by the County Assessor) of any mobile/manufactured homes that cannot be moved due to structural weakness or poor condition.4 1 The Fort Collins Urban Renewal Authority is currently considering narrowing its relocation assistance policies to apply only when there is an eminent domain/condemnation action by the URA. This policy change would have a significant impact on mobile/manufactured home owners, since they do not own the land that is the subject of the condemnation action and generally do not participate in the negotiations. This represents a departure from federal Uniform Relocation Act requirements followed by the Fort Collins URA in the past, which were designed to protect renters in these types of situations. 2 Wording revised to broaden applicability to all affordable housing infrastructure, as recommended by Planning and Zoning Board. 3 Wording revised to reflect recommendations of the Affordable Housing Board. 4 Affordable Housing Board recommended that this provision be strengthened, and Planning and Zoning Board recommended that it be deleted. Recommendation remains unchanged from Public Review Draft, except that relocation cost caps recommended by the AHB have been included. March 26, 2013 -5- ITEM 10 7. Build the capacity of homeowner groups, non-profit affordable housing providers, and support organizations to purchase affordable housing types, including mobile home parks, offered for redevelopment and manage them as long-term sources of affordable housing.5 BOARD / COMMISSION RECOMMENDATION Affordable Housing Board The Affordable Housing Board conducted a public hearing on February 7, 2013, to solicit comments on the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. The Board recommended changes to two of the seven recommendations as contained in the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. These changes have been incorporated into the recommendations listed in the previous section. A copy of the Board’s meeting minutes is attached (see Attachment 3). Planning and Zoning Board The Planning and Zoning Board conducted a special public hearing on March 15, 2013, to solicit comments on the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. Minutes of the March 15, 2013, Planning and Zoning Board Meeting are attached (see Attachment 4). Presented below is a table comparing the recommendations as contained in the Public Review Draft document, to the changes recommended by the Affordable Housing Board, to the changes recommended by the Planning and Zoning Board, and whether or not changes were made to the recommendations in the Affordable Housing Redevelopment Displacement Mitigation Strategy document presented to Council. Comparison of Recommendations from Affordable Housing Board and Planning and Zoning Board Public Review Draft ó City Council Document Public Review Draft Recommendations Affordable Housing Board Recommendations Planning and Zoning Board Recommendations City Council Document 1. Continue to expand the inventory of “designated affordable” dwelling units, buildings, and complexes through current programs administered by the Fort Collins Housing Authority, other non-profit affordable housing agencies, and private developers. No change No change No change 2. Continue to offer relocation assistance to those residents of affordable units redeveloped with the use of federal, Fort Collins Urban Renewal Authority (FCURA), or other City funds, but do not extend a requirement to pay relocation expenses in private redevelopment projects that do not use public funds. No change No Change No change 5 Wording revised to reflect Planning and Zoning Board recommendation to broaden impact to include purchase of all types of affordable housing. March 26, 2013 -6- ITEM 10 Public Review Draft Recommendations Affordable Housing Board Recommendations Planning and Zoning Board Recommendations City Council Document 3. Draft a Manufactured Home Park Zoning District and rezone into that district those mobile home parks that are relatively large and can serve as significant sources of affordable housing for the long term. No change Do Not Include Inconsistent with Comprehensive Plan and current zoning criteria – Recommended Strategy remains in City Council document 4. Create a loan or grant program, or use the existing financial assistance competitive process, that would be available to finance significant investments in mobile home park water, sewer, septic, or road infrastructure that would be available to those larger mobile home parks willing to commit to continuing operation of their mobile home parks for a at least 10 years. No change Substitute text to broaden recommendation to all affordable housing types: “Create a loan or grant program, or use the existing financial assistance competitive process, that would be available to finance significant investments in mobile home park water, sewer, septic, or road new or existing affordable housing infrastructure that would be available to those larger mobile home parks willing to commit March 26, 2013 -7- ITEM 10 Public Review Draft Recommendations Affordable Housing Board Recommendations Planning and Zoning Board Recommendations City Council Document period has expired if all park residents have been successfully relocated. moving mobile/manufactured homes to those locations. In addition, the notice provision shall also alert residents that the park may be closed before the mandatory notice period if all park residents have been successfully relocated to each party’s mutual satisfaction. 6. Require that redevelopment projects pay (a) actual costs of relocating owner occupied mobile/manufactured homes to a new site within a 25 mile radius of the mobile home park and (b) pay at least a portion of the value of units that cannot be moved. • Note – this applies only to projects involving city financial assistance or a discretionary land use decision. Require that mobile home park owners or redevelopers pay (a) actual costs of relocating mobile/manufactured homes to a new site within 25 miles of the redevelopment site, with a maximum relocation cost of $6,000 for a single-wide unit and $8,000 for a double-wide unit, (b) the actual value of any home (as determined by the County Assessor) that is structurally able to be moved but that cannot be moved due to the unavailability of any spaces within 25 miles, and (c) the actual value of any home (as determined March 26, 2013 -8- ITEM 10 Public Review Draft Recommendations Affordable Housing Board Recommendations Planning and Zoning Board Recommendations City Council Document mobile home parks offered for redevelopment and manage them as long- term sources of affordable housing.” Summary of Significant Differences • Recommendation #3 - Create a Mobile Home Park Zoning District and rezone several mobile home parks into the new zone to help preserve them. The Planning and Zoning Board does not support a new mobile home park zone. The Affordable Housing Board supports the recommendation. • Recommendation #6 - Require redevelopment projects to pay displacement relocation costs. The Affordable Housing Board supports the recommendation and sets limits as to the amounts of assistance to individual unit owners. The Planning and Zoning Board does not support the recommendation and, instead, suggests establishment of an impact fee or use of TIF to fund relocation costs and the development of additional affordable housing. PUBLIC OUTREACH The involvement of stakeholder groups, the general public, and City boards and commissions was a very important component of this project. Three key stakeholder groups were identified and have been involved in the project, including: (1) mobile home park property-owners; (2) mobile home park residents (unit owners and renters) and interested citizens; and (3) affordable housing and human service agencies (e.g., Fort Collins Housing Authority, Neighbor-to-Neighbor, CARE Housing, The Murphy Center, and Funding Partners). A project website (http://www.fcgov.com/socialsustainability/mobilehomeservices.php) was established for the dissemination of information, announcement of upcoming public meetings, and collection of public comments. An online survey was available to offer another option for people to provide feedback who were not able to attend the information open house, or may not be able to attend the public hearings. Two key City advisory boards have been involved in the process, the Affordable Housing Board, because mobile homes are a low cost, affordable housing component of the community’s housing stock, and the Planning and Zoning Board, because future redevelopment of mobile home parks will likely involve decisions by the Board. Two departments of the Larimer County government were also involved, including the Planning Department and the Environmental Health Department. Stakeholder / Public Meetings Three stakeholder informational meetings were scheduled in September 2012 as part of the first phase of the public process for the project. The three meetings for the specific stakeholder groups included: (1) manufactured/mobile home park property-owners; (2) manufactured/mobile home owners, park residents, and interested citizens; and (3) affordable housing and social service agencies. Notes from these initial informational meetings are attached (see Attachment 5). In November 2012, a second set of stakeholder meetings were conducted to provide a project update and report on the results of the October 23, 2012, City Council work session about how to mitigate the impacts to residents when manufactured/mobile home parks are redeveloped for other uses. Topics covered at the meetings included the following: March 26, 2013 -9- ITEM 10 • Mobile Home Park Preservation and Stabilization Techniques N Mobile Home Park Zoning District N Resident Purchase of Mobile Home Parks N Infrastructure Maintenance/Replacement Financial Assistance • Notice of Park Closure N Relocation Assistance Requirements N Relocation Report N Payment of Relocation Costs Notes from these second set of stakeholder meetings are attached (see Attachment 6). Open House On January 24, 2013, an Open House was conducted to present the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy. Printed copies of the draft strategic plan document were available at the open house. The document was also available for viewing on the project’s web site. Flyers announcing the open house, as well as the future public hearings by the Affordable Housing Board, the Planning and Zoning Board, and the City Council, were mailed to all 23 mobile home park property-owners and to 3,600+ residents (unit owners and renters) of mobile home parks, located both inside the City limits and within the Growth Management Area. Flyers were also sent via email to citizens who had attended previous stakeholder meetings and/or who indicated they wished to receive notices of additional meetings by submitting their email address on the project’s web page, and to selected staff of affordable housing and social service agencies. The open house contained a series of 15 informational boards highlighting the key points of the strategic plan to preserve affordable housing units, including mobile home parks, and the proposed requirements for the payment of relocation assistance to displaced residents. Members of the planning team (staff and consultants) were available to answer questions and provide additional information. Approximately 80 people attended the open house. Most attendees were residents of mobile home parks, but a few park owners and staff from affordable housing agencies also attended. Attendees were encouraged to fill out comment cards or complete the on-line survey using available laptop computers. Survey Results and Selected Public Comments The Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy was posted for public review on the project’s web site on January 10, 2013. In order to obtain additional detailed feedback on the strategic plan, the planning team organized an on-line survey that was posted on the web site and publicized on January 11, 2012. The survey was not a random sample, statistically valid survey to obtain results that could be equated to being representative of opinions of a larger group of people in the community. Anyone could visit the project’s web site and participate in the survey. Public input from the survey and comment cards were integrated and the results are summarized in the Affordable Housing Redevelopment Displacement Mitigation Strategy. ATTACHMENTS 1. Work Session Summary, October 23, 2012 2. M-M, Medium Density Mobile Home District 3. Affordable Housing Board Public Hearing minutes, February 7, 2013, 4. Planning and Zoning Board Public Hearing minutes, March 15, 2013 5. September 2012 Stakeholder Informational Meetings notes 6. November 2012 Stakeholder Update Meetings notes 7. Powerpoint presentation Social Sustainability 321 W. Maple Street PO Box 580 Fort Collins, CO 80522 www.fcgov.com Attachment 1 October 31, 2012 M E M O R A N D U M TO: Mayor Weitkunat and City Councilmembers TH: Darin Atteberry, City Manager Bruce Hendee, Chief Sustainability Officer Joe Frank, Director of Social Sustainability FM: Ken Waido, Chief Planner RE: Work Session Summary – October 23, 2012 – Redevelopment Displacement Mitigation Strategies Council Members Present: Karen Weitkunat, Mayor Kelly Ohlson, Mayor Pro Tem Aislinn Kottwitz Ben Manvel Lisa Poppaw Wade Troxell Work Session Participants: Darin Atteberry, City Manager Bruce Hendee, Chief Sustainability Officer Joe Frank, Director of Social Sustainability Ken Waido, Chief Planner Don Elliott, Senior Consultant, Clarion Associates Ishbel Dickens, Clarion Associates Direction Sought/Questions to be Answered: The planning team (staff and consultants) attended the work session to receive Council’s responses and comments regarding the following questions: 1. What feedback does Council have regarding the following preservation and stabilization options for mobile home parks? 1 a. Mobile Home Park Zoning District b. Park Resident Ownership - Right of First Refusal or Right to Match Last Offer for Sale of Mobile Home Park c. Infrastructure/Maintenance/Replacement 2. What feedback does Council have regarding the following options for notice to affected residents? a. Notice of Closure b. Notice of Vacancy (“Illegal Closures”) 3. What feedback does Council have regarding the following general relocation assistance requirement options? a. Relocation Report b. Payment of Relocation Costs c. Rental Assistance 4. Does the Council have any additional questions or comments at this time? Council’s Discussion/Direction: General Comments:  The current title of the project seems to indicate that the project addresses all affordable housing, but the emphasis from the background materials is on mobile home parks – the title should be revised to reflect either an emphasis on mobile homes or recognition that other types of affordable housing are included in the project.  There is a need to clarify/be consistent with terms “mobile home” and “manufactured housing.”  Project team should gather data to determine if mobile homes are actually a form of affordable housing (i.e., need to look at average monthly costs, median incomes, percent of income going towards housing, etc.).  All units within the City’s Growth Management Area (GMA) need to be addressed in this strategic plan, not just units within the City limits  The strategic plan needs to address situations where mobile home park properties may redevelop as other types of affordable housing. Preservation and Stabilization Techniques Mobile Home Park Zoning District  Council indicated that they did not believe a “one size fits all” solution is a viable option for all parks. Different parks will need different techniques.  Approaches need to be tailored to different mobile home community characteristics, which could include location, age, size, infrastructure, etc. 2  This option should remain a possibility and continue to be explored, especially in combination with potential incentives for the development of new parks or voluntary zoning into a mobile home park zone. Park Resident Ownership  Resident-owned communities are likely to be very challenging to accomplish, but should remain an option to be explored, looking at other comparable communities for potential models or other ideas. Infrastructure/Maintenance/Replacement  A program to provide financial assistance to mobile home park property-owners to repair/replace aged infrastructure should remain an option within the strategic plan. Notice of Closure  A longer notification period regarding a pending closure of a mobile home park seems like a good approach and was supported by the Council – it would be good to have examples of what other communities similar to Fort Collins are doing (e.g., is 12 months suitable for a notification period?). Notice of Vacancy (“Illegal Closures”)  Notice of vacancy may be a necessary approach to prevent circumventing of the mitigation strategy requirements, but that needs to be explicit (otherwise this can appear as too heavy-handed on the free market).  Council did not support this option. Relocation Assistance Requirements Relocation Report  A requirement for a relocation report which provides data and information regarding a pending park closure, the socio-economic characteristics of park residents, and support services available to residents seems like good approach to be included in the strategic plan. Payment of Relocation Costs  Taxpayer funds should probably not be the basis for future relocation assistance that is needed due to private development. Relocation assistance could be paid by the landowner/developer or possibly through a fund that generates revenue based on some 3 sort of mobile home transfer fees (although there may be some state limitations on transfer fees).  The project needs to consider that any additional costs to the park owners could lead to increased costs for residents in some communities. Definition of Affordable Housing Council requested clarification as to what constitutes an affordable housing unit. The City’s Land Use Code contains definitions for an affordable housing unit. There are actually two definitions, one for an affordable rental unit and the other for an affordable unit for sale. Affordable housing unit for rent shall mean a dwelling unit which is available for rent on terms that would be affordable to households earning eighty (80) percent or less of the median income of city residents, adjusted for family size, and paying less than thirty (30) percent of gross income for housing, including rent and utilities. Affordable housing unit for sale shall mean a dwelling unit which is available for rent on terms that would be affordable to households earning eighty (80) percent or less of the median income of city residents, adjusted for family size, and paying less than thirty- eight (38) percent of gross income for housing, including principal, interest, taxes, insurance, utilities, and homeowners’ association fees. If low-income households were to pay a higher percentage of their gross income for housing than the above limits, they would have less money available for food, medicine, transportation, etc. The 2012 Median Income (AMI) for a family of four in Fort Collins is $77,700. The Affordable Housing Strategic Plan 2010-2014 establishes priorities for City financial assistance for affordable housing programs. The top priority is to increase the inventory of rental housing for families earning 50% or less of the AMI. The lowest priority is for first-time home buyers earning between 60% and 80% of AMI. Next Steps:  The planning team will meet in early November with each of the key stakeholder groups and report on the Council feedback from the October 23 work session.  Stakeholder Focus Groups will meet to discuss more specific topics in November and December.  The Affordable Housing Board and Planning and Zoning Board will conduct public hearings in January 2013.  The City Council is scheduled to consider adoption of the strategic plan on February 5, 2013. 4 1 Attachment 2 The following zoning district for mobile home parks was included in the City of Fort Collins’ Zoning Ordinance from the mid-1960s to 1997. M-M Medium Density Mobile Home District Sec. 29-271. Purpose The M-M Medium Density Mobile Home Park District is for areas for mobile homes. Sec. 29-272. Uses permitted. The uses permitted in the M-M District are as follows: (1) Any use permitted in an R-M Medium Density Residential District, subject to all of the use and density requirements of such district. (2) Mobile homes on individual lots subject to all density requirements specified for a single- family dwelling in an R-M Medium Density Residential District. (3) Mobile home parks containing independent mobile homes not exceeding eight (8) units per net acre with accessory buildings and uses for storage, service and recreation. (4) Mobile home parks containing independent mobile homes not exceeding twelve (12) units per net acre with accessory buildings and uses for storage, service and recreation, provided that the plan for such mobile home park is shown on a Planned Unit Development plan processed, approved and recorded according to the PUD code.. Sec. 29-273. Bulk and area requirements. The bulk and area requirements in the M-M District are as follows: (1) Each mobile home park established in the M-M District shall contain a minimum of five (5) acres. (2) Each mobile home park established in this district shall contain a minimum width of two hundred (200) feet. In addition, there shall be a minimum width of sixty (60) feet which shall front on a public street to provide access to the mobile home park. (3) Minimum yard requirements in this district are as follows: a. The minimum distance of any building or mobile home from any exterior lot line of the mobile home park shall be thirty (30) feet. In addition, the minimum distance of any building or mobile home from any public dedicated street shall be twenty (20) feet. b. The minimum distance allowed between mobile homes and the buildings in a mobile home park shall be ten (10) feet. 1 Attachment 3 CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD REGULAR BOARD MEETING MINUTES 281 N. College Ave. Fort Collins, Colorado February 7, 2013 Chair: Dan Byers Staff Liaison: Ken Waido, 970-221-6753 City Council Liaison: Lisa Poppaw Board Members present: Dan Byers, Jeffrey Johnson, Troy Jones, Curt Lyons, Tatiana Martin, Karen Miller Board Members excused: Terence Hoagland Staff present: Ken Waido Other Staff present: Kathryn Grimes, Note Taker Guests: Shelby Sommer, Clarion Associates LLC; Ishbel Dickens, Manufactured Homeowners Association of America; Jessica Ping-Small, City Revenue and Project Manager Meeting called to order with a quorum present at 4:05 p.m. by Chair Dan Byers Public Comment None. Affordable Housing Displacement Relocation Mitigation Strategies Ken Waido: Gave a PowerPoint presentation for an overview of the salient points of the Public Review Draft Document before the board opened the meeting up to public comments. The board will need to listen to public comments, have a discussion, then vote to make recommendations to the City Council on items and issues related to the document. The draft document has two major sections: 1) options for mobile home park stabilization and preservation, and 2) options for displacement and relocation assistance of mobile home park residents and what would be required for that particular section, Seven major recommendations of the document are: 1) Continue to expand the inventory affordable housing units. 2) Continue to offer money and funding for these projects. 2 3) Create a Mobile home park zone for park preservation. 4) Create a grant or loan program for infrastructure maintenance. 5) Require one year notice of future park closures. 6) Provide relocation costs 7) Potential resident purchase of the park. Dan Byers: At this time, we will open this up to public comment. Please keep your comments to five minutes. Susan Harmon: I currently reside at the mobile home park at 1601 N College Avenue. My grandparents purchased a mobile home there in 1985. I now live there with my mother. The park has been there since 1965. It is considered to be one of the nicer park although it is in a highly desirable area of town for redevelopment. I thoroughly support the recommendation extending the notification from six months to one year. We are looking at a resident population of mostly over 55 years of age, senior citizens, who have very low income or fixed income. Plus they’re elderly, set in their ways, resistant to change. It’s going to take time for their families and other agencies to work with them when they need to relocate. A year would definitely be a better option so they don’t feel the pressure. When you’re eighty years old, six months seems like today and a year seems like tomorrow. So I thoroughly support the year notification. Again, relocation expenses, paid by the developer or the owner, I support as well. The reason being, again, we’re looking at seniors. Most of them have very low income. There are residents that have been in these parks for twenty years or more and it’s because of their income. If they were forced to find the funds to move a mobile home, they’re not going to find it because, number one, they don’t have the resources available to themselves, number two, they don’t have an income to replace any kind of loan they would take, and the cost of moving a mobile home is anywhere from eight to twelve thousand dollars which is ridiculous in itself. But and then we’re talking about where would they move. Now that is a concern to me that I hope this board will start thinking about. I had some time to speak with Ken about what the zones mean and where they are and I understand it more now. But if you only have “X” number of parks there that are zoned and all of a sudden we are finding that there are eight parks that are closing, where are they going to go? Because a lot of these parks are already filled. I’ve not seen anything that talks about the creation of another Mobile Home Park Community for the residents that would be required to move if they are in a designated targeted redevelopment area. So that’s something I would like to have this board discuss; where are they going to go. The mobile home park zoning was something new to me. I thank you again, Ken, for your clarification on this subject. I do think that if you give mobile home park zones it is going to give a more secure feeling to those residents in those zones. If the park is zoned for a mobile home park, the chances are of it being redeveloped into something different are smaller. The seniors I work with need some sense of security. A mobile home park zone might make them feel a little bit more secure in their homes in those areas. Who is going to make that determination of the value of that home? If it isn’t enough to compensate for their relocation, that’s not begin fair to our seniors again. There is a great deal of people who do not have access to computers and how will they get their opinions validated and heard? Nor do they have access to get to these meetings. Has it ever been considered an option to hold a half hour question and answer meeting at the clubhouses at some of these mobile home parks for those folks who don’t have computers, can’t get out to these meetings, and don’t have the 3 resources to find out what we are talking about here? Because we’re talking about their lives and where they’re going to live. So how many of the people who answered your survey were from these mobile home parks? I would like to add that you have meetings at these parks to include the actual residents of these parks in these decisions. We have to be appreciative of our seniors and the greatest generation and we have to be helping them. Nick (no last name given): Because, I’m not eighty five, I’m ninety and I can’t be moving nowhere. It would be very hard for me to make a change right now. I cannot live with my children; they have their own families. As far as cost, it costs quite a bit to move a home. Every month we get enough to pay the rent from Social Security. And that’s all. We don’t have the money to move. Thank you. Dan Byers: Is there anyone else who has public comments? If not, this concludes the public input portion. BOARD DISCUSSION: Dan Byers: Let’s open this up to discussion. Our goal is to provide recommendation to City Council. Troy Jones: Could you help me understand number three? Ken Waido: We’re looking at it as a step by step process. The first step is if the Council says to create a mobile home park district. Then the City’s Land Use Code team would draft a zoning district to be put into the Land Use Code. This strategic plan recommends which mobile home parks should be put into that district. The details of what would and would not be permitted in the zone have yet to be fleshed out. Ishbel Dickens: A list of a range of options can be included in the zoning plans. It has not been universal throughout all communities. It is what makes sense in that particular area. The ordinance itself can also have exemptions. Dan Byers: What was the reason the zoning went away? Ken Waido: The city went to a more mixed-use land use concept. Shelby Sommer: The city is shifting. The growth aspect is changing from outward growth to inward growth. That is where the redevelopment pressure becomes stronger. Dan Byers: To move forward, let’s go over each item. Number one, I think we all agree with that one. Number two, you have to offer relocation assistance to be in compliance. Jeffrey Johnson: We should consider striking the rationale. I’m suggesting we delete “because” from the rest of the sentence. Troy Jones: That makes sense. I’ll go along with you on that one. Dan Byers: Rather than strike it out, maybe we could find a better way to say it. The city could decide this on a case-by-case basis. 4 Jeffrey Johnson: I agree with that. Troy Jones: Yes, that’s a good idea. Troy Jones: Number three makes sense to me. Dan Byers: There’s quite a bit of work to be done on this. Curt Lyons: Is the intent of creating the zoning to deter development? Ken Waido: No, it’s to preserve the mobile home park community as a mobile home park community. Dan Byers: Is there any opposition to the mobile home park zone? It sounds like the board agrees on number three with additional clarification. Let’s talk about number four. Troy Jones: One park on the north has a huge storm water management issue, big potholes, etc. This seems like one that needs some redevelopment. Having the grant program in place would help these issues. Ken Waido: The Affordable Housing Strategic Plan has an action item for the City to look at a permanent funding source for the Affordable Housing Fund. If a permanent funding source is found, the AHF could have additional financial resources over what is available now. Jeffrey Johnson: I agree that loan and grant money is critical. Infrastructure upkeep is important. Could you get some money to take care of this? This seems to be an opportunity to get some details. Can you sweeten it up with a loan or a grant? To make the property owner feel better about infrastructure upkeep. Dan Byers: Move on to number five. A lot of these parks are at full capacity. Is there space to move all? I like the one-year notice. Karen Miller: I would support removing the six-month caveat. Tatiana Martin: I would rather see the six-month option included. Jeffrey Johnson: I like the alternative of having both. Troy Jones: That doesn’t seem like the way it’s written. To what extent do we want the early closure tied to incentive? The developer isn’t on the hook to pay anything. Ken Waido: We could combine numbers five and six somehow. Karen Miller: It does kind of dovetail. It could force people into unfavorable conditions. Dan Byers: I think we should keep five and six separate. They are two separate issues. Ishmel Dickens: Six month closure would be allowed, it is between the owner and the tenant, if everyone has left before the year then they can close the park. 5 Curt Lyons: Some kind of mutually satisfaction would be good. Tatiana Martin: Residential apartment leases are month to month after one year, but I don’t know for mobile homes. Dan Byers: Concisely rewording number five: One-year notice is required unless the mobile home park owner provides a packet plus the tenant shows they can leave or they are lawfully evicted. Karen Miller: I want it to say they will be appropriately relocated to each party’s mutual agreement. Dan Byers: Number six; does it say “Federal Funds”? Troy Jones: I don’t support number six. The developer has to pay for relocation. I don’t think the developer should pay for the relocation of everyone. Dan Byers: That wouldn’t provide any assistance. That takes affordable housing out of the community. Karen Miller: Yes, that’s true. Cory Lyons: I’m thinking of it like any other property. If somebody buys an apartment building, it’s not the tenant’s right to be there forever. Karen Miller: But you purchased the mobile home and you can’t compensate for it. Now they can’t use their home anymore. Jeffrey Johnson: There is a human component to this. But there is also a market component, too. Karen Miller: I think the park owner should at least pay the tenant for the home. Dan Byers: I keep coming back to people being “involuntarily” displaced from their home. Troy Jones: I’m uncomfortable with the A. Why is it the developer’s cost to move it? I agree with the B and C. I can’t support A. Should we pull number six and vote on the rest? Jeffrey Johnson: Change “market value” to “assessed value”, i.e., the assessor’s analysis of real market value. Dan Byers: I make a motion to accept numbers one, two, three, four, and seven. Troy Jones: I second the motion. Dan Byers: For number five; number five states: require a one year notice for relocation and no less than the six-month minimum required by the State of Colorado, however, as an alternative, the City could offer a six month notice detailed relocation report on all available mobile home parks within twenty five miles by contact information to the park owners and documented relocation costs and in addition, the mobile home park owner insures that all 6 tenants have been relocated to their mutual satisfaction or have otherwise abandoned or sold their homes. Curt Lyons: I move to accept number five as just stated. Karen Miller: I second. And I agree with number six with a change of “market value” to “assessor’s opinion of real market value”. Troy Jones: I am in favor of everything but A. I would support A with a cap of $6,000 (for single-wide units) - $8,000 (for doubl-wide unitse). Tatiana Martin: I like it except for A. Jeffrey Johnson: I don’t know how I feel about A. I accept B and C with “fair market value determined by assessor”. Curt Lyons: No opinion. It’s too long. There are so many parts to the equation. Troy Jones: I move to recommend Item Six to council as written with the following exceptions: Item A, having a cap of $6000 (single-wide) - $8,000 (double-wide) for relocation and Item B with “full actual value according to the assessor’s opinion” and C with the “½ attribute”. Dan Byers: I second. All in favor? Five. Opposed? One: Jeffrey Johnson. Comparison of Recommendations Public Review Draft  Affordable Housing Board Public Review Draft Recommendations Affordable Housing Board Recommendations 1. Continue to expand the inventory of “designated affordable” dwelling units, buildings, and complexes through current programs administered by the Fort Collins Housing Authority, other non-profit affordable housing agencies, and private developers. No change 2. Continue to offer relocation assistance to those residents of affordable units redeveloped with the use of federal, Fort Collins Urban Renewal Authority (FCURA), or other City funds, but do not extend a requirement to pay relocation expenses in private redevelopment projects that do not use public funds. No change 3. Draft a Manufactured Home Park No change 7 Zoning District and rezone into that district those mobile home parks that are relatively large and can serve as significant sources of affordable housing for the long term. 4. Create a loan or grant program, or use the existing financial assistance competitive process, that would be available to finance significant investments in mobile home park water, sewer, septic, or road infrastructure that would be available to those larger mobile home parks willing to commit to continuing operation of their mobile home parks for a at least 10 years. No change 8 Planning and Zoning Board Special Hearing Minutes 281 N. College Conference Room A March 15, 2013 2:00 p.m. Council Liaison: Mayor Weitkunat Staff Liaison: Laurie Kadrich Chair: Andy Smith Phone: (H) 482-7994 Chair Andy Smith called the meeting to order at 2:07 p.m. Roll Call: Campana, Carpenter, Hart, Heinz, Hatfield, Kirkpatrick, and Smith Staff Present: Kadrich, Hendee, Waido, and Sanchez-Sprague Chair Smith said hearing attendees and described the following processes: • Citizen participation is an opportunity to present comments on issues not on the meeting agenda. • Consent agenda items are considered items which have no known opposition. Any member of the board, staff or audience may request for an item to be pulled from the consent agenda and discuss in detail as a part of the discussion agenda. • Discussion agenda items will include a staff presentation, an applicant presentation, and questions by board members. Public input follows. • At the time of public comment, Chair Smith asked that individuals wishing to speak come to the podium, state their name and address, and sign-in. He asked that the speaker clearly state their position. He encouraged them to share comments relevant to the topic under discussion. • Responses by applicant and staff will follow public comment. • He will begin each new item with a description of the development type being considered. • The board will do their best not to use acronyms or jargon. • The board will deliberate and reach a decision once a motion has been made and a vote taken. Agenda Review CDNS Director Laurie Kadrich reviewed the agenda. Citizen participation: None Discussion Agenda: 1. Affordable Housing Redevelopment Displacement Mitigation Strategies ATTACHMENT 4 Planning & Zoning Board March 15, 2013 Page 2 _______ Project: Affordable Housing Redevelopment Displacement Mitigation Strategies Project Description: This is a request for a recommendation to City Council to preserve existing affordable housing units with an emphasis on mobile home parks. Recommendation: Make recommendation to City Council Hearing Testimony, Written Comments and Other Evidence Senior Planner Ken Waido introduced Bruce Hendee, Chief Sustainability Officer and team members Don Elliott and Shelby Sommer of Clarion Associates. He provided background on the project – develop a proactive plan to address the issue of resident displacement due to redevelopment activities. He said the project was needed to define the City’s role, responsibilities, and obligations in dealing with mobile home park closures and the displacement of low-income families and cited recent efforts for Grape Street and Bender Mobile Home Park. Waido noted the Public Review Draft provided options for: affordable housing and mobile home park preservation and stabilization and displacement relocation assistance. He cited the main reasons why mobile homes parks close (market pressures increase property value and the property is sold for redevelopment or the park’s infrastructure ages needing maintenance or replacement and the cost to do so is not supported by lot rents). Waido said preservation and stabilization techniques include a Mobile Home Park Zoning District, infrastructure maintenance/replacement with grants or loans, and City financial assistance via Community Development Block Grant (CDBG)/HOME Programs and Affordable Housing Fund, and park resident ownership Waido outlined recommendations for what the City should do if a mobile home park closes. He outlined the project’s public involvement process and the short-term and long-term actions steps. Public Input Rose Lew, 2014 Westover Road, said she supports staff’s recommendations. She said the establishment of a mobile home park zone is very critically important. She asked if there were no federal funds, is there no requirement for the property owner/developer to pay any relocation costs. Cheryl Distaso, Fort Collins Community Action Network, said they worked closely with the individuals affected by the closure of the Grape Street and the Bender Mobile Home Park closures. She said groups with whom she’s affiliated worked with social, environmental, and economic sustainability. She said this plan really emphasizes that desire to look at economic, social, and environmental sustainability. She said this plan really represents a lot of creative thinking by staff and the community at large. She said as she worked with the displaced individuals, she came to respect them and to understand better the devastating consequences they experienced. She said the plan addresses that. She appreciates the zoning, the relocation expense and the one year notice. She appreciates that it looks at both preservation and relocation. Tawny Peyton, 22362 Schultz Lane, Berthoud, Co; said she’s the Executive Director of the Rocky Mountain Home Association. They represent the manufacturing and modular home industry in Colorado. She thanked staff for their efforts in the development of the plan. She asked what other businesses or private property owners are required to provide a notice period before they change their use. What other businesses have to provide a report for alternatives to their consumers? What other businesses are required to pay for their consumer’s expenses? She said they are an affordable housing industry. She Planning & Zoning Board March 15, 2013 Page 3 said a lot of these changes will impact how likely businesses will want to do business within the city and state. Some of the businesses are owned by ‘mom and pop’ owners who have worked their whole life to provide housing for people. If they should need to sell their property due to a medical emergency, have they lost the value of the property because of the relocation costs? Will they lose value because it’s been zoned for one use? Keith Cowan, 3240 Iris Ct., Wheat Ridge, said he owns Hickory Village Mobile Home Park. He said he’s one of the ‘mom and pop’ operations just described by Ms. Peyton. He said if you’re an investor coming into the city and you see the type of restrictions that are being proposed, you’ll say no because you’re not going to be able to do the business you want. He said over time they’ve purchased homes and tried to make them available for low income families by financing them. He said all this was good until last year when the Dodd-Frank Act was adopted and financing was no longer an option. He thinks it’ll affect an owner’s ability to keep their property up. He said only in Fort Collins is there a sales tax on the transfer of a mobile home. He knows of some cases where people do not change the title into their name because of the sales tax expense. He said both at the city and the state level, they are considering legislation that will make it very difficult to keep mobile homes an affordable housing option. Zach Heath lives at 135 S. Sunset. He said he’s encouraged by the plan to keep mobile homes an affordable housing option in Fort Collins. Fort Collins is known as not being an affordable place to live. He said you’d need to make $15 per hour to be able to afford rent in Fort Collins. He does think it’s a vitally important and he appreciates staff’s efforts. He thinks the 6 month notice is not enough and a longer period is required to reduce stress on ‘vulnerable’ community members. He believes that takes priority over business interests. Mr. Heath asked about something he’d heard relative to new developments being required to provide 10% affordable housing units in their development. Is that part of this plan? Chris Parks, 7408 Triangle Drive, said he works for RHB Properties. They’re the largest private owner of mobile home communities in the country. They operate the Harmony Road Park. He said they’ve provided more assistance than the city when helping people relocate and cited the Dry Creek Mobile Home Park as an example. He said as the homes age it becomes more problematic from an investment standpoint. He said you cannot stereotypically assume all mobile home owners are low income. He said some have more savings than you or I. He said when you have a requirement of keeping mobile home parks as they are or requiring them to be responsible for relocation you are essentially reducing property values by 20%. Or, it’s adding 20% to the cost of redevelopment. He said it’s important when we look at how to solve this problem where there’s less focus put on the community owners who have done their best to maintain what’s in the market. He thinks the only reasonable option proposed is the transfer tax. He appreciates the work that has been done and he hopes we look at the true cost of this and what the city can do if they feel it’s very important. Barbara Trewarton, previous Cloverleaf Community Manager, and a manufactured home owner. She’s concerned that a manufactured home community is a business. She believes it is unfair to the owner to make them wait a year to sell their business. On the homeowner’s side, if we can’t find a place to move their manufactured home within 6 months; it’s not worth moving. End of Public Input Member Heinz left the meeting. Planning & Zoning Board March 15, 2013 Page 4 Staff Response Chair Smith asked staff to respond to the questions raised during public testimony. Don Elliott, Clarion Associates, said with regard to the question if there are no federal funds involved will there be no duty to pay relocation. Elliott said if there were no federal, redevelopment or city funds and the applicant is not applying for a discretionary rezoning or permit; there would be no duty to pay. If it’s a redevelopment by right under the zoning district and you are not asking for financial assistance; they you would not have a duty to pay redevelopment costs. Board members agreed a redevelopment plan would almost always require a discretionary decision. Shelby Sommer of Clarion Associates said it would likely be a single family/allowed use per zone but it probably would not accommodate a full scale redevelopment. Elliott agreed it would be better to restate the language in the report. Elliott said with regard to the question what other industry requires notice of this type none that he can think of. He said there are no other housing products he knows where the resident owns the unit and not the land. That is why the State of Colorado has a notice requirement. With regard to any other industry that requires a report he said not that he knows of. He said this plan does not require a report rather the strategy says go to a one year notice but if you want to finish up in 6 months or less you may provide a report that will lets people know where they can move and how much it would cost, etc. He said with regard to what other industry requires relocation payments; he said it depends on the facts of the redevelopment. He said when parks have closed they’ve come before City Council to request relocation assistance. The question is “is there a system in place to pay” or does it come to City Council each time. Elliott asked if the owner is required to pay relocation costs who actually pay. It may well be the owner of the unit who pays due to increased rents. It might be rolled into the deal you make with the redeveloper. Elliott said with regard to the question does the adoption of regulations such as these prevent investment in this type of industry in Fort Collins he said no one knows. Every regulation has the potential to discourage investment. He said as a practical matter, we’ve not seen investment in new mobile home parks in Fort Collins for quite some time. He said a fair statement is in urban areas such as Fort Collins, there isn’t a lot of investment going on in mobile home parks. The investment is going on in rural areas where land is cheap, where development is simple, and where neighborhood opposition is lower. Member Campana said it’s important to distinguish the development of new parks versus the purchase of an older park. Elliott said it’s up to the board to determine in their judgment if this is a reasonable plan. Any time you try to deal with the externalities of any real estate investment, you’re going to affect the business climate. The question is--is this a fair balance. Elliott said the last question relative to an inclusionary housing requirement—for example, you redevelop a park in which you need to house 10% of low-income people on site. They did think of it. They did not find other models tied into mobile home park strategies. He said it’s a unique housing type. It’s not a mobile home for an apartment exchange—you still own a mobile home that needs to be disposed. He thinks in this case, it would be a mismatch. Board Questions Member Campana asked if staff looked at mitigation from the perspective of preventing the displacement or mitigating the impacts of displacement. Elliott said there were two parts to the study and they did both. He said that Council wanted both tools that discourage the redevelopment of mobile home parks so they stay in the housing pool or tools that say it’s a free business environment – redevelopment when you want but let’s figure out what should be done about relocation. He said on the west coast they’ve concluded it’s less expensive to preserve than to allow the housing to go away. Planning & Zoning Board March 15, 2013 Page 5 Member Kirkpatrick referred to the 6400 affordable housing units in Affordable Housing Strategic Plan (AHSP). Waido said the AFSP’s goal is to increase affordable rental units because that’s where the greatest deficit is. He said mobile home units represent 50% of the affordable housing stock. Member Hart asked Waido to speak to the fact that Fort Collins charges sales tax. Waido said he called the Sales Tax Office to ask if Fort Collins is the only city that charges sales tax. They said no there are several other cities in Northern Colorado. Hart asked if that was addressed in their strategies. Waido said no. Member Kirkpatrick said maybe it would be a good idea to shift the proceeds to a relocation fund. Waido said they have investigated inclusionary zoning. A few years ago a consultant evaluated an impact fee (whether on residential or commercial) or inclusionary zoning. The State Supreme Court ruled that inclusionary zoning for rental purposes is unconstitutional. It seems the window is for home ownership. He said Boulder and Longmont had inclusionary zoning requirements for home ownership. Elliott said he’d like to thank the park owners. Throughout the process they have been extremely collaborative, helpful, and engaged in the process. It’s added to a better product. Member Kirkpatrick asked if there’s been interest in affordable house development. Waido said City Council really did not take anything off the plate at their last worksession on this topic. If council says yes to a zoning district, then how do you do that? He said the city has used zoning to preserve specific types of housing in the past. If it gets into the Land Use Code, there’s nothing to stop a property owner from coming to the city and requesting a rezoning. That may be one of the uses we can put our Land Bank properties. With a RFP (Request for Proposal), we could see if any developer (profit, non-profit, or combination) would be willing to get into that market. Elliott said the intent of the report was to provide the information comprehensively. Not all tools will apply to every park – there should be a system of which tools would apply in which situation. He said they’ve found several examples of cities in the past 15 years who adopted districts such as this. They didn’t get good answers on whether it was to preserver affordable housing or to rezone. Member Kirkpatrick said if we closed a mobile home park we are not allowing the same level of density (number of residents per unit) in another area. She asked what the project team had found at a national level. Waido said the data they were looking for was not available at a geographic level. Sommer said the number can vary even in Fort Collins depending on the population—there may be very ‘senior’ parks with lower numbers. Member Kirkpatrick asked about Strategy 7. Waido said given the two avenues – one is a new organization the other an established organization such as CARE Housing; its better, at this stage of the game, to go with the known established agency. He said there are organizations nationally that have been successful in other states. He said it takes a willing seller. Board Discussion Member Carpenter asked how the memo drafted by the Board would be used. Director Kadrich said it is still available should you choose to make that your recommendation. It is also available for modification. Member Hart said he understands they are being asked to approve the strategies presented by staff with or without certain modifications the Board may want to put forth. Member Campana said he understands and originally supported the intent of the plan having been involved with the Bender Mobile Home Park. His understanding was staff was directed to come up with a displacement mitigation strategy so citizens would have an expectation/know what’s going to take Planning & Zoning Board March 15, 2013 Page 6 place when relocation is required. He said solving affordable housing is gigantic in comparison. In his experience their concerns were affordability and availability. Predictability is helped by have 6 to 12 months to find a new location. He agrees with one of the citizens who spoke who said if you can’t find it in 6 months, it’s probably due to the condition of your home. He said there’s a sense of independence related to the ownership that offers another degree of complexity. Campana said with regard to mitigation strategies, he could support a lot of what’s been presented. When it comes to discouraging redevelopment, he doesn’t think we want to be in the business of discouraging redevelopment. We want to encourage the development of affordable housing. If the city wants the right to preserve something, he believes the city should be putting some money into it. It’s a community issue and we have to deal with it. Member Carpenter said she agrees. She said she thinks we’ve said this before. This grew into something that nobody really perceived it to be. She’s having a hard time deciding whether she can even recommend approval of the whole plan. The plan is a completely different thing than encouraging affordable housing (which she supports). She’s struggling on how to get that across to City Council. Member Kirkpatrick said she could support the plan moving forward to City Council and the board’s comments except for # 3. She said the plan feels very disjointed – not quite sure what problem it’s trying to solve. Parts of it make more sense for when we address our next Affordable Housing Strategic Plan. She thinks mobile home parks are an important part of our housing stock. She thinks some of those decisions go beyond this board. Member Campana said the market should be allowed to exist where it exists with regard to mobile home parks. Member Hart said he does not support a specific zone because he doesn’t think that will help the community. Member Carpenter agreed. Chair Smith said that City Council has a very tough job and it’s a different job than this board’s. There are a lot of considerations which the Planning and Zoning Board simply shouldn’t address. It’s outside the board’s purview. Inherently there are very strong noble concepts and objectives in our Comprehensive Plan as expressed in our Land Use Code. We’re going to build a city built on a lot of uses. We’re going to encourage in-fill and redevelopment around transit. When we say we’re going to stop adhering to some of those principles in one certain area, it’s problematic for a lot of reasons. One is we’re going to create islands and stifle innovation. He said what he thinks is really problematic is it’s clear to him that perhaps at the highest levels, the city has not made the commitment to affordable housing as a general concept and mobile homes as a subset. He thinks the city is trying to use regulations without looking at incentives such as waiving sales tax and disincentives first. Smith said with regard to the creation of a Mobile/Manufactured Home Zoning District, he doesn’t think we should be doing that. He said he’s okay with the memo the board drafted as being their recommendation. The city, as a governmental entity, should look at what it’s doing as a much higher objective in the Affordable Housing Strategic Plan. It should also look at some of the other financial considerations such as sales tax. He said he’d be more in favor of an Affordable Housing District. Member Carpenter said to have an Affordable Housing District is so against our philosophy of mixed-use and making sure our neighborhoods have diversity. For her it would almost be a discriminatory thing. She understands mobile home owners seeking independence but she thinks it’s a false sense of independence. It doesn’t have the predictability and that’s what gives you independence. Member Carpenter wondered how the board should proceed. Director Kadrich said as a recommending board they could have: no recommendation, recommend in its entirety, or substitute something. Planning & Zoning Board March 15, 2013 Page 7 Chair Smith made a motion that the Planning and Zoning Board forward the following comments The Planning and Zoning Board recognizes and supports the need for an adequate supply of safe and healthy affordable housing in Fort Collins. As such the board would prefer that recommendations brought forward to City Council apply to ALL affordable housing types rather than only limited to mobile home parks. As such the board would support Public Review Draft Recommendations #1, 2, and 5 and offer the following thought on the other three recommendations. Recommendation #3: This recommendation is clearly inconsistent with not only current zoning criteria in the Land Use Code (LUC), but also some of the primary objectives of our Comprehensive Plan. City Plan is largely based on a vision of compact, mixed-use, redevelopment. More specifically, City Plan calls for a variety of land uses and building types in every zone district, and as a result, encourages innovation that promotes enhanced sustainability, efficiency, and vitality. As such, the board believes that a Manufactured Home Park Zoning District would move away from the overall vision zoning for the Fort Collins Community and should not be considered as an option. Recommendation #4: The Board recommends substituting the following recommendation: Create a loan or grant program, or use the existing financial assistance competitive process that would be available to finance significant investments in new or existing affordable housing infrastructure that would be available to those willing to commit to continuing an affordable housing product for at least 10 years. Recommendation #6: The board is not in agreement that this is the most effective way to deal with the problem for a variety of reasons including the recommendation shifts too much of the “burden” to the property owner and that it does not effectively preserve affordable housing. If the ultimate goal is to provide affordable housing, the board feels this process may lead to subsidizing substandard housing. The board suggests implementing an impact fee and/or a TIF to help cover the costs of relocation or development of affordable housing stock. Recommendation #7: The board for the reasons listed previously offers a substitute recommendation as follows: Build the capacity of homeowner groups, non-profit affordable housing providers, and support organizations to purchase affordable housing types, including mobile home parks offered for redevelopment and manage them as long- term sources of affordable housing. with the addition of: adding manufactured housing in the Affordable Housing Strategic Plan as a primary goal and revisit sales tax on mobile home and perhaps either eliminate it or direct it to some type of mitigation/relocation fund. Member Carpenter seconded the motion. The motion passed 6:0. Planning & Zoning Board March 15, 2013 Page 8 Other Director Kadrich said they’re getting ready to advertise for the Planning Manager position. If there’s any interest in participating in the process, please let her know. The meeting was adjourned at 4:00 p.m. Laurie Kadrich, CDNS Director Andy Smith, Chair 1 Attachment 5 Fort Collins Affordable Housing Preservation and Redevelopment Displacement Mitigation Strategy Project Mobile Home Park Owners Meeting September 25, 2012 – Harmony Library  Lots of differences between each mobile home community  City has handled each mobile home park closure differently. The purpose of this project is to City clarify role/policies for future situations.  Potential Strategies to Prevent Redevelopment: o Right of First Refusal o Right of Last Refusal/offer o Right of Preferential housing o Incentives o Zoning Changes  In other communities, did vendor fees increase to match the maximum relocation assistance amount? o A pre‐determined amount usually means vendors will charge that amount o A non‐fixed amount (actual cost) of relocation assistance may be better approach to avoid this problem o Consulting team will explore typical actual costs for moving within Fort Collins  What happens to abandoned homes when a park closes? o The owner of park is usually responsible for removal o This is a challenging issue for park owners, especially for re‐1976 (HUD) homes that are in poor condition  If a federally‐funded redevelopment project occurs, a relocation process is already determined(Uniform Relocation Act, which occurs at the cost of the redevelopment project)  Key factors in whether units are moved or abandoned are market vacancy rates and the age/value of units  There may not be places to move homes in the event of a closure in Fort Collins  Is the City in favor of opening new parks? o Mobile home parks are permitted uses in the LMN zone o Although they are permitted uses, many higher density housing projects (e.g., student housing, mobile home parks, etc.) can encounter opposition from surrounding neighborhoods/property owners  The last mobile home park approved in Fort Collins was Dry Creek, although this project had some financial challenges  The Housing Authority does have some modular housing units on permanent foundations – this trend will likely increase in the future  Have there been any reconfigurations of mobile home parks to enlarge lots/reduce density? o Not to the team’s knowledge, but this is permissible by amending the site plan (usually the mobile home park is platted as one large lot) 2 o This is typically not usually a zoning issue as long as setbacks and minimum densities are satisfied  Would the relocation mitigation policies apply to re‐configuration/reducing the number of lots in mobile home parks? o Probably not since it is unlikely that a park owner would eliminate lots if they were occupied (i.e., consolidation of lots would generally occur only if vacant lots were available)  How would the displacement strategies differ for mobile home owners vs. renters? o Residents who rent homes from the mobile home park owners or other landlords generally have month to month (or longer) leases, and in these instances standard landlord/tenant agreements apply (not displacement strategies) o For mobile home owners who just lease the land, displacement mitigation assistance may apply if the City decides to adopt such policies  How would the relocation strategies apply to properties outside of city limits? o If a property is located within the County but adjacent to (Contiguous with) the City, any redevelopment project would spur the Intergovernmental Agreement (IGA) between the City and the County, and the property would be annexed into the City and the development project would be subject to City requirements (including displacement mitigation). o If a property is located in the County and not adjacent to the City, redevelopment would be handled by the County, and the City’s requirements would not apply, other than the City’s requirement that the property sign an agreement to annex to the City when eligible.  If park owners are required to pay for relocation mitigation, they could get double the burden by having to pay for relocation and then also by having to pay the costs of removing abandoned homes  Key issues to consider when developing strategies are the quality of the homes and occupants. The free market determines which homes are worth moving and which ones are not worth moving (abandoned). The abandoned homes are a big issue, and the strategy should explore whether or not some sort of relocation assistance fund could also apply to park owners who are left with removing abandoned homes.  Need to explore whether or not there are any State/City or other regulations about moving pre‐HUD homes (some perceptions that regulations exist, but uncertainty about who governs/enforces). Fort Collins Affordable Housing Preservation and Redevelopment Displacement Mitigation Strategy Project Residents and Representatives Meeting September 25, 2012 – Northside Aztlan Center Meeting Notes  The planning process seems to be short; need to determine if there is enough time allotted for thorough feedback from all stakeholders  Need to advertise meetings as open to the public; mobile home park newsletters may be a good tool to notify folks of future meetings  Will plan address MH parks in County? o Mobile home parks in the City (approximately 1200 units) – yes, this plan will address 3 o Mobile homes in the County but contiguous/adjacent to City limits (approximately 1100 units) – yes, the plan will address o Mobile homes in the County and not contiguous/adjacent to City County (approximately 700 units) – no, these are subject to the County’s process and requirements, but the County will be involved throughout the effort  Cheryl and Catholic Charities deserve recognition for Bender assistance efforts  City assistance helped with the Bender displacement but more assistance needed (could Section 8 vouchers be explored in the future?)  Low‐income housing needed throughout the City  Residents are the ones who lose out  This plan may also involve exploring changes in state laws and regulations to protect residents from displacement What have other communities done to prevent redevelopment of mobile home parks?  Right of First Refusal – time period given depends on location o (Right of First Refusal) in Resident‐Owned Communities (ROC USA) o Housing trust fund support – tap into local lenders  Right of Last Offer  Right of Preferential Housing (1st in line for new units) o Form of inclusionary zoning o Can be tied to existing rents or area median income  Incentives  Zoning – strengthen process/make it harder to close MH parks o Some variation of a mobile home park zone o Could this be a taking? No, as long as reasonable economic use of the property o Why did the City drop MH park zones in 1997? o Thought was that LMN would help preserve parks Potential Assistance Tools when Displacement will Happen  Notification o 6 months in CO o Longer in other states (12 month – 2 year)  Financial Assistance o Relocation Assistance Fund (WA) – state operates, funded by transfer of title fees paid by residents o Property owner/landlord pays (OR)  Landlord support (relocation coordinator)  Vacancy rate triggers notice  Purchases/Land trusts Other Comments and Questions  Relocation of pre‐1976 homes is very challenging; Hard to find new parks that will accept them o Solution needs to include voluntary abandonment o Need state action to override covenants  How will various options be evaluated? o State/local action/level of support 4 o Best practices/lessons learned o City Council to be the final decision maker  Title changes – personal property vs. real property (stronger consumer protections for real property)  Mortgage settlement fund – explore potential to use some of this money for relocation assistance  Are mobile homes really affordable? o Preserving existing communities cheaper than building new o Residents are captive in parks  Land Trust model of non‐profit developer model could work to help with preservation o Lowry a good CO model for affordable housing  Does the City have funding for mobile home community preservation? Look at overall affordable housing budget in City  What role does/could CHAFA play?  Credit union lending could play a larger role Fort Collins Affordable Housing Preservation and Redevelopment Displacement Mitigation Strategy Project Housing Agencies and Advocates Stakeholder Meeting September 26, 2012 – 281 N. College Avenue Meeting Notes  Current title of project is complicated but it needs to address preservation and displacement mitigation  Explore partnerships/coordination with CARE housing and others on residents or agencies owning mobile home parks  Would it be possible to develop the City’s land bank property as a mobile home park or swap this property for another property?  State and federal funding is very limited to assist in relocation efforts (rough estimate of total State funds for affordable housing +/- 2 million, Federal funds +/- 10 million)  Need models/case studies about the economics of resident owned communities or other “benign” landowner situations  Some of the mobile home communitieLimited ability to move pre-1976 homes  Lots of very old parks o Failed infrastructure one cause of closures o Infrastructure improvements a possible strategy ( partnerships)  Dry Creek was the last mobile home park developed  Explore the potential development or trading of the City’s Land Bank properties to save mobile home parks from redevelopment 5  Some communities have tried to secure long-term commitments to retain mobile home parks but without much success  Need to clarify City vs. County vs. State vs. URA responsibilities when redevelopment/displacement occur and compare these with the federal Uniform Relocation Act requirements  Case studies to research o Mapleton mobile home park (Boulder, CO Thistle Community Housing) o Rocky Mountain Community Land Trust (CO Springs)  Aging in place a key issue in mobile home parks as well as throughout the community. Could mobile homes be part of the solution?  Resident Owned Communities a successful approach in some areas o Homeowners need financial partners to make this successful (partner with local banks?) o Explore the role of the Colorado Housing Finance Authority (CHFA) in establishing resident owned communities  Revolving Loan Fund in Northern CO can be used on mobile homes but there is a $5,000 maximum allowed on repairs for mobile homes  The City doesn’t enforce private covenants, such as those enacted by mobile home parks and other subdivisions 1 Attachment 6 Fort Collins Affordable Housing Preservation and Redevelopment Displacement Mitigation Strategy Project Mobile/Manufactured Home Park Owners Meeting Notes November 19 – Harmony Library General Discussion  Are Manufactured/Mobile Homes affordable housing? o Anecdotally, most park owners agree that nearly all of their residents could be categorized as low income households and a large proportion would qualify for affordable housing o Census data is not available at that level of geography so detailed information about income and percent of income spent on housing is not available  Some property owners think they might be able to knock on doors to get income data  Others think this type of information would be very tricky to gather  Mobile home vs. manufactured homes: o Mobile homes can be put wheels on/move away (required to have a steel frame) o Pre HUD/1976 = mobile homes o Post HUD = manufactured homes o Modular vs. manufactured (these terms are not necessarily synonyms either) o CO state laws have definitions that should be referenced Preservation Strategies Discussion  Would a Manufactured/Mobile Home zone also apply to new parks? o New manufactured/mobile home parks are already permitted in some existing zones (LMN, E districts) o A new mobile home park zone would probably allow new parks, but that would need to be determined if a new zone is created o Some current park properties were previously in Manufactured/Mobile Home districts (ML, MM)  Different options for a mobile home park zone district could include the City applying the zone to certain parks (based on certain criteria), or parks volunteering to apply the zone now or in the future o If the City decided to place some or all properties in a new zone district, property owners would not have veto power of a rezoning (City Council is final decision maker)  Some property owners sent membership checks/correspondence to the National Manufactured Home Owners Association (NMHOA) after meetings last January. There have been issues with communication with this organization and property owners would like a response from the association’s representative  If the City provided grants or loans for property owners to upgrade/fix infrastructure issues, there are concerns that this money would come with some conditions (e.g., requiring a certain percent of units to remain affordable) that the property owners may/could not adhere to 2  High City sales tax collected on mobile homes presents is a huge barrier to preserving existing parks within the City o People leave the City for cheaper unit ownership opportunities in the County o Many people avoid changing unit titles to avoid sales taxes o Estimated $3000 in sales tax to the City for an average mobile home unit Notification and Relocation Assistance Strategies Discussion  What is the purpose of a longer notification period? o Gives more time for residents, affordable housing and social service agencies, and the City to explore relocation options o What about a 13 month notification period (which would be offset so that people could still enter one year leases)?  Most leases are month to month o General agreement/perception that residents will wait until the very last minute to relocate, regardless of how long the notification period lasts  There would be economic impacts resulting from a longer notification period o There is a cost burden for property owners if a longer notification period is required (i.e., the property owner will have to carry the property longer with reduced income) o Persons buying a park property for redevelopment may not willing to wait for the full notification period and may devalue a property.  Do leases alert residents about potential sale of land? o Some do, but not all of them do because it is not a mandatory provision  Relocation assistance payments (if required to be paid by the property owner) would ultimately be transferred to the costs of operating the park, which would mean higher rents up‐front  Would relocation assistance be triggered even if public funding was not requested for a redevelopment project? o This project is examining that topic.  Would rental mobile home units be subject to relocation assistance? o Probably would not be covered, but being explored as part of this project.  Has the City considered assessing a fee or other tax to build a relocation fund? o That has come up in other meetings as well, but the City may be limited in the amount of new fees/taxes it can charge. o As part of a bigger picture, the City is looking a securing a more reliable funding source for all types of affordable housing, which could include some sort of potential relocation assistance. Fort Collins Affordable Housing Preservation and Redevelopment Displacement Mitigation Strategy Project Residents and Representatives Meeting Notes November 19, 2012 – Northside Aztlan Center 3 General Discussion  County staff is considering more temporary (e.g. yurts) housing options now than before the High Park Fire – this may have a positive impact on affordable housing options  What happened to the affordable housing project on Willox Lane west of College? o The project fell through and is no longer proceeding as proposed; property may be bank‐owned  Impacts of right to farm on affordable housing  Are manufactured/mobile homes affordable housing? o Would be difficult to get accurate data but there may be some ways to acquire some data  Section 8 data, LEAP loan applications, other government‐sponsored programs  Harmony Mobile Home Park has sold 3 times since 1998; none of these sales have been advantageous to residents as lot rents have increased Preservation Strategies Discussion  Resident‐owned communities o What did the property owners think of the concept?  Not a lot of feedback for or against  Acknowledged that there has to be a willing seller o What needs to happen so that non‐profits are poised or better prepared to own and/or manage mobile home communities?  Park managers are not necessarily the property owners‐ could they be retained even if a non‐profit purchases the land?  Real property vs. personal property o Residential pay annual property tax o Does real property means that the property is affixed to land? Uniform Law Commission recently adopted a titling act for manufactured houses – they do not need to be affixed to the land in order to be titled as real property. o Need to examine if any other states have moved mobile homes into the real property category? o What sorts of benefits/impacts would that shift cause?  Infrastructure Assistance o This type of assistance would typically be in the form of a 0% interest loan due on resale Notification and Relocation Assistance Strategies Discussion  Notification period o Longer notification period is generally preferable to residents o May be an issue to address at a statewide level, rather than locally (although Fort Collins as a home rule city could probably adopt stricter requirements) o Certain conditions could potentially be satisfied by the property owner to the reduce notification period (e.g., relocation report, payment of relocation expenses, etc.)  Payment of relocation expenses o Could the project explore some cost sharing options (e.g., public‐private arrangements) o The City did pay for Bender relocation expenses, so some think that a precedent was set o City should explore a potential fee, tax, or other source to build a relocation fund or more general affordable housing fund 4 Fort Collins Affordable Housing Preservation and Redevelopment Displacement Mitigation Strategy Project Affordable Housing Agencies and Advocates Meeting Notes November 16, 2012 – 281 N. College Avenue Preservation Strategies Discussion  Resident‐owned communities o This would be difficult to organize but may be an opportunity for housing agencies/non‐profits to become involved (none of the groups present volunteered for this role immediately, but are open to exploring the idea long‐term)  Infrastructure Assistance o This type of assistance would only be an incentive if it was provided as a grant; loan dollars would come with other stipulations and would need to be paid back Notification and Relocation Assistance Strategies Discussion  Notification period o Could the length of the notification period be scaled based on the number of units involved (e.g., a longer notification period for more homes)? o Could there be a “buy down” option to reduce the notification period (e.g., the property owner pays relocation costs or some other benefit to the residents in exchange for a reduced notification period)? o What sort of disclosures/notices are provided in typical mobile home community leases?  There is no typical lease, but some clause about potential sale of the land or notification requirement would be valuable to put in all leases  The City of Longmont’s website has a helpful mobile home owners’ handbook, which could be a useful model for Fort Collins o Agencies are well aware of potential expiration of tax credits for other types of affordable housing (non‐mobile homes) long before they expire and work to mitigate the impacts  Payment of relocation expenses o Potential triggers for the payment of relocation costs could be requests for rezoning, public assistance/funding, and/or development plans o Abandonment of homes remains a huge issue for property owners and needs to be addressed in any sort of relocation expense requirement 1 1 Affordable Housing Redevelopment Displacement Mitigation Strategies March 26, 2013 City Council Public Hearing 2 Introductions • City Staff: – Bruce Hendee, Chief Sustainability Officer – Joe Frank, Director of Social Sustainability – Ken Waido, Chief Planner • Consulting Team: – Shelby Sommer, Clarion Associates (Fort Collins) ATTACHMENT 7 2 3 CITY PLAN IMPLENTENATION NEAR-TERM IMPLEMENTATION ACTIONS: 2011 AND 2012 • 24. Relocation Plan - Develop a proactive plan to address the issue of resident displacement due to redevelopment activities. CITY COUNCIL 2012 WORK PLAN: • Develop an “Affordable Housing Relocation Strategic Plan.” 4 Need for the Project • This project was needed to define the City’s role, responsibilities, and obligations in dealing with mobile home park closures and the displacement of low-income families. – Grape Street – Bender Mobile Home Park • City involvement in previous closures: – Ad-hoc, case-by-case basis – Status quo is unacceptable 3 5 Affordable Housing Relocation Displacement Mitigation Strategies The strategic plan provides: • Options for affordable housing and mobile home park preservation and stabilization • Options for displacement relocation assistance requirements 6 Unit Comparison Numbers Category 1,969 Units 4,800 Population Designated Affordable Rental Housing Units In Multi-Family Apartment/Condo Complexes 2,781 Units 6,800 Population Mobile/Manufactured Housing Units Within the City Limits and GMA Boundary 4 7 Relevant City Policies City policies from City Plan and the Affordable Housing Strategic Plan 2010-2014: • Recognize manufactured housing/mobile homes as an important component of the city’s housing stock. • Encourage the preservation of affordable housing units. • Mitigate the relocation displacement impacts upon residents due to redevelopment activities. 8 Redevelopment Benefits • Redevelopment has certain benefits, including: – Elimination of “blight,” – Additional retail and service opportunities, – New jobs/employment, – Additional tax revenues. • City Plan identifies Targeted Redevelopment Areas on the Structure Plan map. – Details are contained in adopted subarea plans (e.g., North College Corridor Plan). 5 9 Reasons for MHP Closures • There are two main reasons why mobile home parks close: 1. The property is zoned for a different use (e.g., commercial zoning) and market pressures increase the property value so the property is sold for redevelopment purposes. 2. The park’s infrastructure ages and needs major maintenance or complete replacement and the cost to do so can not be supported by lot rents as a mobile home park. 10 Preservation and Stabilization Techniques • Mobile Home Park Zoning District • Fund Infrastructure Maintenance/Replacement • Resident Ownership of Mobile Home Parks 6 11 Relocation Assistance Strategies • Increase the Time of the Notice of Closure • Require a Relocation Report • Require Payment of Relocation Costs 12 Public Involvement • Three key stakeholder groups have been identified and have been involved in the project: – mobile home park property-owners – mobile home park residents (unit owners and renters) and interested citizens – affordable housing and human service agencies 7 13 Public Involvement • September 2012 - three stakeholder informational meetings were conducted. • November 2012 - a second set of stakeholder meetings were held to provide a project update and report on the results of the October 23, 2012, City Council work session • January 24, 2013 - an Open House was conducted to present the Public Review Draft of the Affordable Housing Redevelopment Displacement Mitigation Strategy document. 14 Public Involvement • City boards/commissions – Affordable Housing Board – Planning and Zoning Board • Larimer County government – Planning Department – Environmental Health Department • Project web page was established – On-line survey 8 15 Implementation Actions The strategic plan has developed implementation actions grouped into either: • Short-term actions, or • Longer-term actions Implementation actions are listed in three basic categories: • Actions the City can adopt unilaterally • Actions that require coordination with Larimer County • Actions that require new state enabling legislation 16 Recommendation #1 Continue to expand the inventory of “designated affordable” dwelling units, buildings, and complexes through current programs administered by the Fort Collins Housing Authority, other non-profit affordable housing agencies, and private developers. 9 17 Recommendation #2 • Continue to offer relocation assistance to those residents of affordable units redeveloped with the use of federal, Fort Collins Urban Renewal Authority (FCURA), or other City funds, but do not extend a requirement to pay relocation expenses in private redevelopment projects that do not use public funds and do not require a discretionary land use decision by the City. 18 Recommendation #3 Draft a Manufactured Home Park Zoning District and rezone into that district those mobile home parks that are relatively large and can serve as significant sources of affordable housing for the long term. 10 19 Recommendation #4 Create a loan or grant program, or use the existing financial assistance competitive process, that would be available to finance significant investments in new or existing affordable housing infrastructure that would be available to those larger mobile home parks willing to commit to continuing operation of their mobile home parks for a at least 10 years. 20 Recommendation #5 • Require a one (1) year notice of closure period for mobile home parks (rather than the 6 month minimum notice required by the state). As an alternative, allow a six (6) month closure notice if the park owner delivers to each resident on or before the notice date a detailed Relocation Report listing all available mobile home park spaces available within 25 miles, providing the contact information…. 11 21 Recommendation #6 • Require that redevelopment projects involving City financial assistance or a discretionary land use decision by the City pay (a) actual costs of relocating owner occupied mobile/manufactured homes to a new site within a 25 mile radius of the mobile home park, up to a maximum of $6,000 for a single- wide home and $8,000 for a double-wide home, and (b) the actual value (as determined by the County Assessor) of any home that is structurally able to be moved … 22 Recommendation #7 • Build the capacity of homeowner groups, non- profit affordable housing providers, and support organizations to purchase affordable housing types, including mobile home parks, offered for redevelopment and manage them as long-term sources of affordable housing. 12 23 Significant Differences • Recommendation #3 – Create a Mobile Home Park Zoning District. – Supported by the Affordable Housing Board – Not supported by the Planning and Zoning Board. • Recommendation #6 – Require redevelopment projects to pay displacement relocation costs. – Supported by the Affordable Housing Board – Not supported by the Planning and Zoning Board. 24 Affordable Housing Redevelopment Displacement Mitigation Strategies March 26, 2013 City Council Public Hearing RESOLUTION 2013-027 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE AFFORDABLE HOUSING REDEVELOPMENT DISPLACEMENT MITIGATION STRATEGY, A STRATEGIC PLAN FOR PRESERVING AFFORDABLE HOUSING, INCLUDING MOBILE HOME PARKS AND OTHER TYPES OF AFFORDABLE HOUSING WHEREAS, City policies contained in City Plan, the City’s Comprehensive Plan, and the Affordable Housing Strategic Plan 2010-2014, encourage the preservation of existing affordable housing units, list manufactured housing/mobile homes as an important component of the community’s housing stock, and call for the mitigation of impacts on residents displaced through the closure of mobile home parks due to redevelopment activities; and WHEREAS, as part of its 2012 Work Plan, the City Council directed City staff to work on a relocation plan for residents displaced by redevelopment; and WHEREAS, the purpose for the relocation plan was to define the City’s role, responsibilities, and involvement in redevelopment projects that displace low income people from their homes, especially mobile home parks, within the City or the City’s Growth Management Area, rather than dealing with such situations on a case-by-case basis; and WHEREAS, City staff, with the assistance of a consulting team, has developed the Affordable Housing Redevelopment Displacement Mitigation Strategy, dated March 2013, attached and incorporated herein as Exhibit “A” (the “Mitigation Strategy”); and WHEREAS, the Mitigation Strategy addressed displacement mitigation for people forced to relocate due to redevelopment, but also presents options for preservation and stabilization to reduce the likelihood of future displacement, including creation of a Manufactured Home Park Zoning District; creation of a grant or loan program for funding improvements to mobile home park infrastructure; and requiring a one-year notice of closure period for mobile home parks; and WHEREAS, the Affordable Housing Board and the Planning and Zoning Board both held public hearings to solicit comments on the Public Review Draft of the Mitigation Strategy, and those Board’s recommended changes have been incorporated to the extent possible into the Mitigation Strategy; and WHEREAS, City staff recommends that the City Council adopt the Mitigation Strategy; and WHEREAS, the City Council believes that adoption of the Mitigation Strategy is in the best interests of the citizens of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby approves and adopts the Affordable Housing Redevelopment Displacement Mitigation Strategy dated March 26, 2013, attached as Exhibit A. Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins this 26th day of March A.D. 2013. Mayor ATTEST: City Clerk EXHIBIT A by the County Assessor) that cannot be moved due to structural weakness or poor condition. • Should apply to all applications for redevelopment regardless of city financial involvement or land use decision Do not include. Not the most effective way to promote affordable housing, may subsidize substandard housing, and inappropriately shifts cost burdens to mobile home park owners. Instead recommend impact fee or TIF to help cover cost of relocation or development of affordable housing. Recommended Strategy remains in City Council document. 7. Build the capacity of homeowner groups, non-profit affordable housing providers, and support organizations to purchase mobile home parks offered for redevelopment and manage them as long-term sources of affordable housing. No change Recommend revised text: “Build the capacity of homeowner groups, non-profit affordable housing providers, and support organizations to purchase affordable housing types, including PZ Board revised text included in City Council document to continuing operation of their mobile home parks for a at least 10 years. PZ Board revised text included in City Council document 5. Require a one (1) year notice of closure period for mobile home parks (rather than the 6 month minimum notice required by Colorado law). However, as an alternative, the City could offer to allow a six (6) month closure notice if the park owner delivers to each resident on or before the notice date a detailed Relocation Report listing all available mobile home park spaces available within 25 miles, providing the contact information for each of those park owners, and including documented estimates of the costs of moving mobile/manufactured homes to those locations. In addition, the ordinance should provide an incentive for the park owner to assist in relocation by providing that park may be closed before the mandatory one year notice Recommend substitute text to ensure adequate notice of potential earlier closing “Require a one year notice of closure period for mobile home parks (rather than the 6 month minimum notice required by the state). As an alternative, the City could offer to allow a six (6) month closure notice if the park owner delivers to each resident on or before the notice date a detailed Relocation Report listing all available mobile home spaces available within 25 miles, providing the contact information for each of those park owners, and including documented estimates of the costs of No change AHB revised text included in City Council document