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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/30/2018 - AFFORDABLE HOUSING INCENTIVESDATE: STAFF: October 30, 2018 Sue Beck-Ferkiss, Social Policy and Housing Programs Dean Klingner, Transfort and Parking Interim General Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Affordable Housing Incentives. EXECUTIVE SUMMARY The purpose of this item is to report out on the work of the City’s Internal Housing Task Force and obtain direction from Council on which potential affordable housing incentives staff should continue to explore to further progress on the Cities’ stated affordable housing production goals. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council support the task force’s recommended initiatives? 2. Which options would Council like staff to further explore? BACKGROUND / DISCUSSION This Work Session on Affordable Housing Incentives will update Council on staff’s efforts to find new incentives and refine efforts in progress to assist the City in meeting the production goals set forth in the 2015-2019 Affordable Housing Strategic Plan (AHSP). The role of the City in housing policy will be discussed, and Council direction will be sought to help guide staff efforts moving forward. Recognizing the complexity of the issues involved in developing affordable housing, this work will be on-going into the future. The goal of this Work Session is to provide direction to staff on what to focus on in the short term. The City’s strategic affordable housing goals: Housing policy must evolve to be effective. In Fort Collins, our intentional iterative five-year strategic efforts provide a good framework for evaluation and innovation. The five-year cadence works well with development timelines too. The current Affordable Housing Strategic Plan (AHSP) is for 2015-2019. The AHSP establishes an overarching goal of restricting as affordable 10% of the City’s housing inventory at buildout which is anticipated to be around 2040. The City recognized in setting this goal that it is ambiguous and still possible. It would require the City to increase its historic production of affordable housing. The 10% goal is shared by many Colorado cities and can be reviewed and possibly recalibrated in future strategic plans. The current plan’s goal is to achieve 6% affordable housing units over a five-year period ending in 2019. That translates to 188 units a year for this plan period. So far, our community partners have constructed 272 units in the past three years and we have at least 276 more in the development review pipeline for a total of 548 anticipated units for this strategic planning term. Absent some new large projects, the City will not achieve the current plan’s 940-unit goal. This is true even though many of the units constructed benefited from Community Development Block Grant Disaster Relief funding totaling more than $4 million. That funding source was one-time money. While the City is making progress toward its affordable housing goals, to date, adopted housing policies, programs and practices have not been enough to incentivize the number of units sought. To continue to increase the ratio of affordable housing to overall housing inventory, we estimate that the production goal for the 2020-2024 AHSP goes up to 228 units a year. The amount we need to produce goes up as our available developable land supply goes down. This is one example of the increasing head-winds the City October 30, 2018 Page 2 will face as it increases production goals. The need for City intervention through policy and incentives is important for the City’s chances of achieving the stated overarching goals. It is important to understand that this housing analysis work is complimentary and parallel to many ongoing city initiatives, such as City Plan Update and discussions between the City’s Water Department and the water districts that serve parts of the City. Many recommendations will be small improvements to existing programs or initiatives. However, if more substantial intervention is chosen to reach the City’s strategic goal of restricting 10% of the City’s housing units as affordable at buildout, then policy direction from Council will be important in guiding staff. City’s role in housing policy and economic conditions: Historically, the City’s role in incentivizing affordable housing production has been defined as housing targeting households making no more than 80% Area Median Income (AMI) as reported by the Department of Housing and Urban development as adjusted by family size. Most of the City’s subsidized rental housing serves households making no more than 60% AMI. For 2018, this means no more than the following amounts based on family size: Household Members Income 1 2 3 4 30% AMI $17,900 $20,450 $23,00 $25,550 50% AMI $29,800 $34,050 $38,300 $42,550 60% AMI $35,760 $40,860 $45,960 $51,060 80% AMI $47,700 $54,500 $61,300 $68,100 100% AMI $59,600 $68,100 $76,600 $85,100 For example, the maximum rent, mortgage payment and purchase price for a family of four under current conditions might look like this: Family of Four - 3 Bedroom Rental Purchase Percent of AMI Income Max Monthly Payment Max Monthly Payment Max Price Supported 30% $25,550 $630 $800 $82,800 50% $42,550 $1,060 $1,340 $177,500 60% $51,060 $1,270 $1,610 $224,900 80% $68,100 $1,700 $2,150 $319,900 100% $85,100 $2,120 $ 2,690 $414,600 Median Market Price $1,550 $421,000 Looking at these maximum purchase prices shows how it is difficult for the real estate market to provide housing for low-wage earners without public support and/or subsidy. Note that these examples are for a family of four making the maximum income permitted and having no credit obstacles and little other debt to manage. While the family of four example is most often used, the average household size in Fort Collins is about 2.4 persons. This example follows the City Code guidelines and assumes 30% of gross income is available for rent and utilities and 38% of gross income is available for principle, interest, taxes, insurance, utilities, and home owners association dues for mortgage payments. (Assumptions about down payment amounts, interest rates, insurance, taxes, and utilities were made and kept consistent). In examining these numbers, people need to make more than 60% of the AMI to afford market-rate rentals. This is consistent with the fact that most of our subsidized rental units serve those making 60% AMI and less. And in terms of home ownership, even households making 100% of the AMI would need assistance to purchase the median-priced home. Finding homes to buy under the 80% AMI limit with a purchase price, not more than $319,900 is difficult at best. It also leaves little available income to handle the financial flare-ups that can come with homeownership, such as needing to replace a furnace or a roof. Today, middle-income earners, such as those making between 80% and 120% AMI are struggling to find housing affordable to them in the real estate market. This income category is looking for attainable housing. While the City October 30, 2018 Page 3 has a less defined role in this income bracket and less influence to affect market rate housing, the City may need to consider middle-income earners as a target demographic for the next Affordable Housing Strategic Plan (AHSP) or alternatively the City may consider drafting a separate Middle-Income Housing Strategic Plan. The Internal Housing Task Force: The City created an Internal Housing Task Force (task force) in February 2017, midway through the term of the AHSP. Work completed by this task force will influence the City Plan update work currently in progress and can be incorporated into the City’s next Affordable Housing Strategic Plan. The task force was created in response to Council’s recognition of the impact of the rising costs of development, including but not limited to City fees, on the City’s ability to achieve its affordable housing goals. Representatives from more than ten departments participate in the task force which is co-led by the Social Sustainability Department and Planning, Development and Transportation Department (originally the Finance Department was the co-lead). Attachment 1, Taskforce Participants. This Work Session serves as a report out of this phase of the task force which is scheduled to wrap up at this year’s end. A next phase, or a 2.0 task force, will be convened to shepherd continued interdepartmental dialogue and implementation of chosen strategies and incentives. The first deliverable of the task force was an enterprise-wide understanding of housing conditions and the City’s strategic housing goals. This common foundation underlies the task force’s work to look internally for City controlled areas of influence that can influence the housing system, which is essentially a market- driven commodity. Four subcommittees were formed to organize this work: • Land Use Policy • Financial Tools • Water and Utilities • Affordable Housing Programs and Education. Options: These subcommittees considered many options before choosing recommended options to bring forward for council consideration. Many of these options are viable and could promote the production of needed housing. While the impact of each idea was much harder to predict, the group did assign low, medium or high impact labels to each option identified. See Attachment 2, Subcommittees tracking work templates. While some of these are standalone ideas that would need to be implemented, many are already in progress. Some of the ideas the task force considered are also being discussed as part of the City Plan Update project. Development Standards: In analyzing these options, the task force noticed that many of the ideas generated could be organized across subcommittees into a few categories. In fact, some of the ideas fell into multiple categories. Many of the ideas relate to development standards. These include: • Increase opportunities for density bonus’s for affordable housing • Relax Parking standards • Promote Accessory Dwelling Units • Relax certain design standards • Reduce minimum lot sizes • Amending Affordable Housing definition in Land Use Code regarding the percentage of units that must be affordable • Consolidation of Development Escrows • Erosion Control Design Assistance (direct or indirect) • Erosion Control and Low Impact Development Best Management Practices grants • Grants for installation of Solar Photo Voltaic on affordable housing Instead of codifying specific standards that may or may not be an issue for any one project, October 30, 2018 Page 4 it seemed logical to design a format for reviewing these on a project by project basis. The idea is to provide flexibility in meeting the intent of certain development standards that are helpful in delivering affordable housing. This process would only be available to affordable housing projects. Staff envisions a process similar to a Planned Unit Development. Programs: Ideas for new programs emerged such as: • Direct Capital Assistance, which was formerly known as Direct Subsidy. Pursuant to Council direction from the January Work Session on the Community Capital Improvement Program Affordable Housing Capital Fund (AHCF), this program has been implemented and is available as a funding source for projects that are near ready to proceed and can move forward with additional funding. Attachment 3, January Work Session Summary. • Income Qualified Utility rates, which has been approved by Council. This program helps the end user more than the developer and is indirectly an affordable housing support. • Homebuyers Assistance for Middle Income earners. This program would be funding dependent. Policy: Another category the potential options fell into was policy. Some of the ideas analyzed that fit into this category were: • Changes to the Occupancy rules that currently allow only three unrelated persons to cohabitate • Including Affordable Housing as a public benefit in Metropolitan Districts and Urban Renewal Authority projects • Inclusionary Housing Ordinances • Creating a waiver program for Utilities that could include development review fees, Payment in Lieu of Taxes rebates, and the reduction/elimination of Project Investment Fees and/or raw Water Requirements for Accessory Dwelling Units • Increasing Land Use Restrictions for affordability on rental projects. Partnerships: The task force also noted the value of maximizing partnerships. Potential partners identified were: • Community Land Trusts • Small and Large Employers • Mobile Home Park residents and owners • Metropolitan Districts • Urban Renewal Authorities • Larimer County on taxing issues • Water Districts serving the City. Financial Tools: Lastly, many of the ideas fit into the financial tool’s category. These include: • An affordable housing impact fee - this could be structured as a Residential Linkage Fee, a Commercial Linkage Fee or a straight Affordable Housing Impact Fee. • Dedicated Sales or Excise Tax increase - This could be part of any Keep Fort Collins Great renewal or could be a separate effort. • Lodging Tax increase, or • Revolving Loan Fund Any tax increase would need to be voter approved. New fees need to be supported by a nexus study showing that the fee is tied to the service to be delivered. An impact fee could take on many forms, such as a linkage fee. Staff felt that an impact fee or an Inclusionary Housing Ordinance (IHO) should be considered, but not both. An initial analysis convinced staff that an impact fee is preferable to an IHO because of the administrative burden of an IHO, the difficulty of accurately setting payment in lieu amounts and because this type of policy can negatively impact overall housing attainability by shifting costs to market-rate housing to keep prices low for affordable units. October 30, 2018 Page 5 Task Force Recommendations: The recommendations of the task force work toward the goals of the current Affordable Housing Strategic Plan, focusing on low wage households making no more than 80% AMI. The task force believes these strategies will help the City close the gap between the City’s stated affordable housing goals and what is actually being developed in the City. These recommendations are organized as follows: • Increase revenue • Decrease cost / development incentives • Maximize partnerships Top recommendations summary: Increase Revenue Decrease Costs Maximize Partnerships In Progress Direct capital Assistance City Plan Update Water District Collaboration Metropolitan Districts Employers Direction needed Impact Fee Study Flexible Development Standards Program Community Land Trusts Increase Revenue: By increasing revenue, the City has more funding to invest. This can be done either through the Competitive Process or the Direct Capital Assistance Program. The change to allow Metropolitan Districts for residential development is a strategy to increase revenue for developments that include public benefits. Affordable housing is one of those public benefits. Staff recommends exploring an Affordable Housing Impact Fee of some type to fund affordable housing incentive programs. A legal nexus between the fee and affordable housing would need to be studied as a first step in choosing and creating a new impact fee. Often these fees do not apply to affordable developments. This fee could take several forms including a residential linkage fee, a commercial linkage fee or an affordable housing impact fee. Any effort on this strategy would include both the Finance Department as well as Social Sustainability. Decrease costs: Cutting costs or increasing development incentives means more than waiving fees or making sure fees are right- sized for all developments. Code provisions can tack on many hidden development costs. Recognizing the importance of and yet mitigating the cost of community high standards is a laudable goal. All regulations and fees have a purpose. Some regulatory burden can be relieved with minimal or no impact on the quality of the housing produced. While the City has a few Affordable Housing specific incentives, staff was informed by the development community during outreach that they are not enough to stimulate development alone. They are helpful for affordable housing projects but do not entice market-rate developers to include affordable units in their communities. For instance, we offer fee waivers for 30% AMI units, fee delays, priority processing, and a density bonus in the Low-Density Mixed-Use Neighborhood zone. The Land Bank Program is the City’s only long-term affordable housing incentive. City Plan is a great vehicle for looking at market solutions to attainable housing and to creating more housing options. Additionally, the City needs to look for beneficial code modifications that protect safety and quality but would also incentivize the production of more affordable units. This might look differently for each project with some benefiting from parking reductions, or others needing a density or height variance, or another seeking alternatives to Low Impact Development standards. Staff recommends exploring a program for providing flexibility to affordable housing developments. This would be like the Planned Unit Development concept but for much smaller, affordable housing developments. A benefit of this approach is that it looks at the development holistically and allows many different departments at the City to creatively incentivize affordable units. October 30, 2018 Page 6 Maximize Partnerships: Maximizing partnerships includes continuing to invest directly in affordable housing development and work with our development partners. It could also include pursuing new partners such as Community Land Trusts. Community Land Trusts can keep units affordable into the future by separating the value and appreciation of the land from the housing unit. More employers in Fort Collins are realizing that housing plays a role in talent attraction and retention. Colorado State University has three step housing solutions plan that includes providing rental assistance to low wage staff and faculty, offers home buyers assistance to employees and is planning on developing housing units too. The City is in a good position to leverage that interest and facilitate relationships that result in more housing units. New partnerships are being cultivated across city departments and with community agencies. Ongoing discussions with the City Water Department and the various water districts might be productive in providing affordable housing options. Collaboration efforts with other local water districts are focused on the land use planning and water supply nexus. The local water providers are discovering new tools for demand-based planning and charges which may benefit multi-family and other affordable housing types. This is an example of how the entire City organization recognizes that housing affordability is an issue for residents. The City was recently awarded two technical assistance grants to bring a public health and equity lens to housing, economic development, and City planning. The timing could not be better for these grants to influence the next iteration of housing policy at the City. Pairing health issues with housing solutions will likely lead to new and productive partnerships for developing and operating affordable housing. This type of partnership could also open new funding streams to help develop more affordable housing. Measuring success will be based primarily on how many units are being added to our affordable housing inventory. Beyond that, adding a variety of housing types for both affordable rental and homeownership at various price points along the income spectrum is what progress will look like. Preliminary outreach conducted on the project and some early incentive ideas included: What Who directed to Coffee Chats (2) Development Community and Non-profit partners Neighborhood Connections City Residents City Works 101 Engaged Residents Stakeholders Open House All Interested Parties Community Issues Forum All City Residents Focus Group Developers and Lenders Presentation - Board of Realtors Real Estate Community Our City web page All interested parties Affordable Housing Board - October Meeting Affordable Housing Board See Attachment 4 - outreach packet including summaries and posters from Open House. ATTACHMENTS 1. Task Force Participants (PDF) 2. Taskforce Tracking Template (PDF) 3. January Work Session Summary (PDF) 4. Public Engagement Summaries Packet (PDF) 5. PowerPoint Presentation (PDF) • Social Sustainability • Finance • Transfort • Engineering • Planning • Sustainability Service Area • Economic Health • Environmental Services • City Manager’s Office • Utilities Department • Communications and Public Information Office ATTACHMENT 1 Subcommittee Name: Initiatives: Affordable Housing Impact Fee Commercial Linkage Fee Residential Linkage Fee Sales or Excise tax increase Lodging Tax Revolving Loan Fund Community Land Trust County Property Tax Freeze Metro Distrcts URA Description Impact fee dedicated specifically to affordable housing Development impact fee associated with commercial development Development Impact fee associated with new residential development Dedicated sales tax for affordable housing Increase in Lodging tax dedicated to affordable housing Money made available to developers to help pay for infrastructure costs that are barriers to affordable development. Repaid with interest over time. Intended to be short term bridge financing. Alternative to covenant restrictions which allows land ownership (and growth in value) to be shared by a trust. Freezing property tax levels for seniors who rent out bedroom(s) to others Permitting Metro District formation in exchange for affordable housing outcomes Prioritize affordable housing outcomes as part of URA investment Next Steps ‐ new fees have to be approved by Council ‐ Extensive outreach needed ‐Assess economic impacts on business ‐ new fees have to be approved by Council ‐ Extensive outreach needed ‐Assess economic impacts on business ‐ new fees have to be approved by Council ‐ Extensive outreach needed ‐Assess economic impacts on middle‐class home buyers, and on the market generally. ‐would need to couple with KFCG Subcommittee Name: Initiatives: relax occupancy rules Longer URA AH Definition Middle Income Strategies Direct Capital Assistance/Incentive (Direct subsidy) Employer Partnerships Manufactured Housing Description Expand U + 2 Extend affordability restriction period housing project to require 20% of the units to be affordable for up to 80% Middle Income HBA Direct Capital Assistance/Incentive (f/k/a Direct subsidy) Promote Employer Sponsored HBA and/or development mobile home preservation Next Steps monitor CMO study, consider expanding zones SSD researching how loveland doing Land Use Code Committee? BFO pending explain process at Work Session, finalize Score Card meet with employers, see if Funding Partners want to cohost event seek partners, work with ROC, possibly funding Timeframe fall survey, winter council (?) research other City's LURAs, early 2019 Align with Code updates manager's budget Work Session on‐going on‐going Risks or Barriers safety concerns, nusiance Lender push back small pilot owners don't want to sell Resources Needed not at this time not at this time not at this time yes tax revenue, may need to wait to build up fund balance May need sponsor event maybe for LURA, not for ROC Link to other city efforts? yes ‐ CMO no budget, HR‐attraction and retention possibly HR or HBA Support needed from task force? no planning establishing need? Business contacts if event no Metrics Affordable Housing Score Housing Affordability Impact low medium/ preservation medium medium medium low/medium medium Co‐benefits uses existing housing stock If HR, less commuters speed delivery of affordable units employee attraction and retention de facto affordable, vulnerable populations, existing inventory Priority Level low high high low/medium high medium medium Affordable Housing Task Force Team Template Programs & Education Project Management Analysis/Evaluation ATTACHMENT 2 Subcommittee Name: Initiatives: relax occupancy rules Longer URA AH Definition Middle Income Strategies Direct Capital Assistance/Incentive (Direct subsidy) Employer Partnerships Manufactured Housing Description Expand U + 2 Extend affordability restriction period housing project to require 20% of the units to be affordable for up to 80% Middle Income HBA Direct Capital Assistance/Incentive (f/k/a Direct subsidy) Promote Employer Sponsored HBA and/or development mobile home preservation Next Steps monitor CMO study, consider expanding zones SSD researching how loveland doing Land Use Code Committee? BFO pending explain process at Work Session, finalize Score Card meet with employers, see if Funding Partners want to cohost event seek partners, work with ROC, possibly funding Timeframe fall survey, winter council (?) research other City's LURAs, early 2019 Align with Code updates manager's budget Work Session on‐going on‐going Risks or Barriers safety concerns, nusiance Lender push back small pilot owners don't want to sell Resources Needed not at this time not at this time not at this time yes tax revenue, may need to wait to build up fund balance May need sponsor event maybe for LURA, not for ROC Link to other city efforts? yes ‐ CMO no budget, HR‐attraction and retention possibly HR or HBA Support needed from task force? no planning establishing need? Business contacts if event no Metrics Affordable Housing Score Housing Affordability Impact low medium/ preservation medium medium medium low/medium medium Co‐benefits uses existing housing stock If HR, less commuters speed delivery of affordable units employee attraction and retention de facto affordable, vulnerable populations, existing inventory Priority Level low high high low/medium high medium medium Affordable Housing Task Force Team Template Programs & Education Project Management Analysis/Evaluation ATTACHMENT 2 Affordable Housing Task Force Team Template Subcommittee Name: Utilities Initiatives: Consolidation of Development Escrows Erosion Control Design Assistance Erosion Control & LID BMP grants Design Assistance‐ Indirect Project Management Description Several City Departments require escrows. These are separate requirements now, but they could feasilby be consolidated for greater efficiency of the overal escrow requirement for the development while meeting dept level needs. If escrow amounts reduced, then cost saving. If not, still efficiency value. Developers often overestimate their escrow req'ts. Also, they select vegetation designs that take a long time to stabilize which requires that the City hold the escrow longer. Staff could assist in providing expertise to estimate escrows and vegetation design. Erosion control measures that stabilize quickly are more expensive than traditional measures. Also, Low Impact Development is typically more expensive than traditional water quality features. The City or Utilities could potentially provide grants to fund the difference between these measures and tradional stormwater Best Management Practices. Development design firms don't often understand stormwater requirements, however contractors often do. A design team approach (with designer, contractor, developer, and City Staff) early in the process could reduce costs for developer and produce a better design. Next Steps This effort has already been initiated. Chad Craiger & Tom Leeson are leads. Not initiated. Would need to determine staff level of effort and if additional resources are needed. Investigate Utility purpose nexus for providing grants. Determine potential costs of such a program. Combine with Intergrated Design Assistance ‐ Outreach to see if this is feasible. Timeframe Unknown. Barriers noted below. TBD TBD TBD Risks or Barriers If the overall escrow is reduced, each dept may be at risk of not recovering adequate funds from the escrow. Also, Accela is a barrier to consolidation. Providing assistance to developers may assign some risk to the City that should be on the developer. Staff time is also a barrier. If such a grant program does not benefit the Utilities, Utilities funds could not be used. General Fund may have difficulty funding Early communications to Developers ‐ May be a higher cost to developer in short run (paying designer and contractor to engage early), but could result in long term savings. Would require additional staff time. Resources Needed Effort started. May need additional staff, BFO offer/additional funding Funds and a process for reviewing/issuing grant $$. Partnerships and potentially grant funding. Would need to get information pushed out early in process and distributed widely. Affordable Housing Task Force Team Template Subcommittee Name: Utilities Initiatives: Waive Development Review Fees PILOT Waiver for Low Income Customers Income Qualified Assistance Program (IQAP) Design Assistance‐ Direct Description The Utility charges fees for reviewing development plans. These could be waived or reduced for AH developments. The Utilities currently only charges these fees at 50% anyway. Utilities customers are charged 6% on their bill for the PILOT (Payment in Lieu of Taxes) to the general fund. This could be waived for low‐income customers. Leverage IQAP as a platform to deliver housing affordability solutions that reduce resource use through efficiency or renewables and increase overall project quality. Possible to focus programs and incentives on the end user, property manager/landlord or during the development phase. Current approach focuses on end user with some property mgr/landlord focus. City staff provide design assistance for new construction of multifamily/affordable housing projects in town, with incremental additional incentives beyond traditional IDAP program. Next Steps Research feasibility and financial impact. Vet the idea with ELT Determine which stakeholder to focus on, then determine program type that suites those stakeholders Determine resource needs and if they could be fit into existing offer. Timeframe TBD TBD Q4 2018 TBD Risks or Barriers $$ not recovered through fees would be absorbed by the ratepayer. This already happens for 50% of the fees. This reduces revenue to the general fund by ~$100K, annually. This may already be refunded annually to Housing Catalyst. High cost of some tech. Low, additional staff time. Engagement of building construction community ahead of schematic design will still remain a barrier. Resources Needed TBD ‐ but I think minimal TBD Dependent on programatic foci and speed of implimentation, ranges from existing to very high low Link to other city efforts? Utilities Affordability Portfolio Utilities Affordability Portfolio; Energy Policy; CAP Direct Capital Assistance; Integrated Design Assistance‐indirect; Energy Policy; CAP Support needed from task force? Determine what level of benefit this would be for AH developers Support/messaging Determine what level of benefit this would be for AH developers Determine what level of benefit this would be for AH developers Metrics $$ amount of fees waived. $ amount refunded, number of units benefitting number of partiticapants and or homes units assisted Affordable Housing Score Housing Affordability Impact Low low low medium Co‐benefits These fees are low ‐ small cost savings for AH Cost savings to end user but may not help developer Cost saving mostly to end user, nit developer Staff could connect AH developers to other rebate programs and resources Priority Level low low low medium ATTACHMENT 2 Affordable Housing Task Force Team Template Subcommittee Name: Utilities Initiatives: Solar PV on Affordable Housing Developments Waive or Reduce PIFs and/or RWR for ADUs Description Provide grant program to install Solar Photo Voltaic on Affordable Housing projects the projects become cost effective and help the City reach its carbon neutrality goals. Allow ADUs to connect to existing water and sewer services with no additional PIFs or Raw Water costs. Possibly allow for a fixed period of time. Possibly offer this only for restricted affordable product. Next Steps Research feasibility and financial impact. Step 1: Council approval Step 2: Determine if additional water is used and Identify Funding Source Timeframe TBD TBD Risks or Barriers additional funding or costs absorbed by existing programing. May need BFO Offer and/or additional funding Resources Needed extensive analysis and staff time, possibly funding Link to other city efforts? Direct Capital Assistance; Energy Policy; CAP City Plan Support needed from task force? Determine what level of benefit this would be for AH developers align with other ADU recommendations Metrics ADU's added Affordable Housing Score Housing Affordability Impact low medium Co‐benefits Helps CAP goals but may be more expensive up front. better use of lots and water conservation Priority Level low medium ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 3 PUBLIC ENGAGEMENT SUMMARIES TABLE OF CONTENTS COFFEE TALKS NOTES 1 CITY WORKS 101 NOTES 2 STAKEHOLDERS OPEN HOUSE NOTES 4 STAKEHOLDER OPEN HOUSE SLIDES 6 DEVELOPERS AND LENDERS FOCUS GROUP NOTES 11 COMMUNITY ISSUES FORUM REPORT 13 ATTACHMENT 4 Notes from Coffee Talks April 11 and 20, 2018 Can we look at changing LUC utility requirements to allow for off grid homes and/or combining different utility lines (looking at current separation requirements) as was mentioned? Also minimum front lot size? Let’s be sure to keep annexation and mobile park on our radar Has task force discussed U+2? Do we have a document that outlines the overlaps of affordable housing and TOd/green building? Are we exploring Density bonuses? Have we ever lobbied on the Living wage state law? Have we ever explored working with employers to provide housing stipend? SeonAh could provide perspective there. Have we worked with Tyler and Ginny to make sure we are lobbying for Federal reinvestment in public housing? Does CML or NLC work on that? Do we have a Map showing distribution of affordable housing? Can we do anything about tax abatement for Non-profit partners? Be careful with impact fees – could aggravate attainability issues. 1 ATTACHMENT 4 City Works 101 – Sustainability Service Area April 25, 2018 Gardens on Spring Creek SSA- How are we implementing TBL? Does everybody look at it? How is the CAP inventory calculated? How does our CAP inventory compare to other Colorado cites? Does every service area have a sustainability rep? EHO- Why is foothills mall so cool and so sad? How do we impact affordability? What is a BID? How do we incentivize businesses? How do we determine who works with a business who wants to move here? County vs. DBA vs. city? Median vs. Avg. Household vs. per capita wages. How are we different than the DBA? Did we explore buying the king soopers property? What are we doing about parking? SSD- What are you doing to attract more diverse populations? What is the range that we consider affordable? Why did we move from 60% to 80% AMI? What are we doing for income growth? Any policies/guidance for developers to have certain % affordable in a project? Is there a county housing trust fund? What is AMI? Trend on land use (trends and forces report)- why is such a small portion dedicated to medium and high density? Is that standard? How does federal funding turn into CDGB funds? How do you balance land bank with NIMBY? How many affordable housing units do you have vs. how many are needed? Do you work with Habitat? Is ratio of available: needed units changing? Why doesn’t the city have a comedy show? - Are there any plans to carry on look for funding to implement artspace projects? What is city doing to help the unemployed or people that can’t take care of themselves? Have we always partnered or do we only do that due to limited resources? Role of city vs. county? Is there an efficiency component to building affordable housing so that it’s more affordable to live there? Do we have to change our approach since police expects homeless/transient population to grow? ESD- What impact has hydraulic fracking had? What is city doing to reduce VOC pollution? 2 ATTACHMENT 4 Is radon part of building code? Do we get to void ozone value if the pollutant came from another area/state? If you test for radon once, do you ever need to test again? Can you recycle lightbulbs in single stream? Can you bag recyclables in paper bags? Can you recycle any plastic utensils? What about compostable single use packaging? Is there any hope to get rid of Styrofoam? Is fort Collins exploring composting? Do you have access to needle exchange/disposal? How do you convince people to recycle that don’t believe it’s beneficial? Where do the materials disposed of in the separate yard trimming carts go? Do you want the tops that come on glass bottles in recycling? Does anybody recycle textiles? If thrift stores get content they cannot sell, do they recycle it? Can you recycle plastic containers that prewashed salad comes in? Is grocer composting part of the city efforts? What has research shown is the most effective way to get people to properly recycle? What about pet waste? 3 ATTACHMENT 4 April 26, 2018 Incentives Open House – Northside Aztlan Center Affordable Housing and Education- Opportunities: x Inclusionary Housing ordinances x Consumer Outreach / homebuyers x Employer participation o In France they must contribute 1% of their payroll toward EE housing – provide or contribute to fund o Have focus groups with employers – hear pain and what willing to do to help ƒ See what they think the role of the City should be. Challenges: x Reaching and educating Homebuyers x Fee waivers too narrow – should be more generous Land Use Policy- Opportunities: x Greater mix of housing types x Affordable housing outside City, but provide Fort Collins workers with free bus system x Neighborhood level planning o Small scale commercial in each neighborhood o Connectivity between neighborhoods and within neighborhoods x Better access to transit – ie: In California, transit funding and affordable housing funding linked Challenges: x Greater mix of housing types x U + 2 x Rent by the bedroom in LMN – prohibit? Financial Tools- Opportunities: x More collaboration x Tell affordability story using entry level professions – teachers, plumbers x Impact fees x Commercial linkage x MAX parking study – where are folks coming from, o East /west connectors to where folks are driving from x Remove rent by the bed from LMN x No more business improvement districts x Mobile home preservation Challenges: x Stagnant incomes x Escalating housing prices Water & Utilities- Opportunities x Combine very strong energy efficiency construction standards with affordable housing goals and sustainability incentives 4 ATTACHMENT 4 x Attached and detached ADUs and related fees x Lock in raw water supply cost at development review x Change utility purpose to include affordable housing as a unique purpose. Challenges x Allow off the grid homes, including tiny homes. 5 ATTACHMENT 4 fcgov.com/SocialSustainability Affordable Housing Programs and Education Development incentives: Existing programs: • Fee Waivers • Impact Fee Delays • Priority Processing • Density Bonus • Competitive Process Funding Affordable Housing Programs: Existing programs: • Homebuyers Assistance • Land Bank Program • Provincetowne Condominiuums • Partnerships - • Division of Housing • HUD • Homeward 2020 • Regional – No Co Housing Now • Regional – Balance of State Continuum of Care 6 ATTACHMENT 4 fcgov.com/SocialSustainability UTILITIES OPPORTUNITIES AND IDEAS FOR DISCUSSION •Develop Income Qualified Assistance Program •Develop Income Qualified Rebates • Waive Payment In Lieu of Taxes (PILOT) for income- qualified customers •Provide design assistance City staff services to Affordable Housing developers •Provide design assistance consultant services to Affordable Housing developers • Waive stormwater escrow requirements for Affordable Housing development •Offer lower amp services for smaller dwellings •Reduce or remove tap or capacity fees for Accessory Dwelling Units (ADU’s) 7 ATTACHMENT 4 fcgov.com/SocialSustainability Affordable Housing Programs and Education OPPORTUNITES AND IDEAS FOR DISCUSSION • Relax the 3-Unrelated Rule • Expand length of time for restrictive covenants • Rental only? • Home Ownership? • Community Land Trusts • Expand Homebuyers Assistance to Middle Earners • Address Manufactured Housing • Promote Employer Sponsored Housing Solutions • Alternative Funding Sources • Inclusionary Housing Ordinance • Cost Reduction options 8 ATTACHMENT 4 fcgov.com/SocialSustainability Financial Tools OPPORTUNITES AND IDEAS FOR DISCUSSION • Impact fees? • Commercial Linkage Fee • Residential Linkage Fee • Affordable Housing Impact fee • New Funding Programs? • Social Impact Bonds • Sales or Excise Tax Increase – KFCG renewal? • Increase in Lodging Tax • Infrastructure Loan – revolving loan fund • Partner opportunities? • Community Land Trust • County – Property Tax • IE: Freeze property taxes to seniors who rent out extra bedrooms • Metro Districts • Urban Renewal Areas 9 ATTACHMENT 4 fcgov.com/SocialSustainability Land Use OPPORTUNITIES AND IDEAS FOR DISCUSSION • ADU requirements • Density bonuses • Height bonuses • Relax parking requirements • Relax design standards • Minimum and maximum lot size 10 ATTACHMENT 4 Developers and lenders Focus Group Re: Affordable Housing Incentives May 21,2018 222 Laporte Ave Desired Outcomes: x More predictable development x More public support for infrastructure and offsite improvements x More public support with funding (some suggest an impact fee but others resist) x More flexibility in design standards o Density – more units help economics o Height o Parking relief o Bike parking for seniors? o Process improvements ƒ Reduced time for review, both Building dept. and Planning dept. ƒ Streamline process ƒ Allow payment of fees at CO instead of at permit issuance x Expansion of fee waivers – full waiver of all fees for affordable housing (30% units not enough) x Zoning change or flexibility x Recover just the cost for service versus a competitive rate for service (ie: Water) o Water can add $20K to price of new home o This can add $4,000 or more to mortgage making it harder for people to qualify and purchase. x More flexibility in the use of metro districts for residential development o Perhaps only allow in exchange for affordable units? o Concerns about allowing both metro districts and impact fees – is that double dipping? o Metro districts fee are tax deductible – advantage o Sophisticated enough to operate things like non-potable irrigation systems, big cost saver x Defer infrastructure costs x Provide lending solutions to support innovative ideas x Sell Land Bank properties at a deep discount – or provide for free x Use Land Bank Program to hold land while developer gets funding lined up o Ie: Foundry Project – City took 10 years to assemble the parcels and clean up (deconstruction and environmental cleanup) o Development partner got clean parcel x Use Land Bank for Church land or while assembling parcels for master development o Can help with NIMBY for City to hold x Revolving loans can be helpful for bridges to permanent financing x Partner with Churches where they remain an equity owner x Use Urban Renewal Authority to promote affordable housing x Remember that affordable housing stabilizes households, especially those coming out of homelessness x PUD – good tool requiring dramatic changes in service agreements, but the challenge can be on and off-site infrastructure x Opportunity Zones – rules finalized this year and can be used to leverage private capital gains 11 ATTACHMENT 4 o Geographically identified areas o Time limited -10 years once identified o Preservation needed – how about soft loans to reinvest in existing AH stock x Could lottery funds buy land for AH in addition to open space? x Leadership – City Officials need to champion the cause x Education – about the problem and the solutions Barriers x Continue to monitor the Construction Defect legislation to bring more achievable priced sale product x Reduce fees and code costs o Utility fees too high, especially for infill x Don’t allow payment in lieu of units x Don’t like deed restrictions – too small a pie, won’t impact needs o Denver problems – folks bought without being certified or knowing AH program x North east quadrant of the City final developable area o Metro districts should be used to offset infrastructure costs o City should be working with development community to solve challenges o Water huge issue – ELCO = Bring you own water (compete with municipalities) x Land that hasn’t been developed often has challenges – so trying to build affordably even more difficult. x Big subsidies required to build for 80% AMI income targets o Small cuts helpful but might not be enough o Even 100% AMI having trouble - how about City funding for over 80%? o Building to affordable price points virtually impossible with labor, land and materials costs x We need to compete with neighboring Cities – look at cost of units, insurance costs for attached product, efficiencies they have accomplished x Cost of land huge barrier Review of Staff ideas: Generally supportive, but concerned about adding additional fees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³ZKDWGR\RXPRVWZDQWFLW\FRXQFLOWRNQRZDERXW\RXU  RSLQLRQRQWKLVLVVXH"´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±&RQFHUQVDERXWDIIRUGDEOHKRXVLQJ Session 1 asked participants to read over a list of viewpoint that summarized concerns about the lack of affordable housing, and then respond to four questions: Which viewpoint most closely matches your own? Which viewpoint has you thinking differently? Which viewpoint raises particular concerns? What viewpoints are missing? The questions were not necessarily asked one by one, but rather were all presented at the beginning and the facilitator had the option of returning them to them over the 30 minute session. The analysis presented here provides the explanation of the viewpoint from the worksheet (the text in the boxes is directly from the worksheet), and then summarizes insights drawn from the table notes and written comments that responded to those viewpoints. 9LHZSRLQW$,DPFRQFHUQHGZLWKWKHJURZLQJLQDELOLW\IRULQGLYLGXDOVZLWKORZHULQFRPHVWR DIIRUGWROLYHZLWKLQWKHFLW\0DQ\RIWKHPDUHFULWLFDOHPSOR\HHVWKDWVHUYHRXUFRPPXQLW\± RXUWHDFKHUVVHUYLFHZRUNHUVQXUVHVILUVWUHVSRQGHUV\RXQJSURIHVVLRQDOVHWF±DQGWKH\ VKRXOGEHDEOHWROLYHZRUNSOD\DQGHQJDJHFLYLFDOO\KHUH7KHJURZLQJQHHGWRFRPPXWH FRVWVWKHPWLPHDQGPRQH\DQGKDVQHJDWLYHHQYLURQPHQWDODQGWUDIILFFRQJHVWLRQLPSDFWVRQ RXUFRPPXQLW\ x 7KHYLHZSRLQWFOHDUO\GUHZWKHPRVWFRQYHUVDWLRQZLWKRYHUDOOEURDGVXSSRUWIRUWKH VHQWLPHQW x 0DQ\SDUWLFLSDQWVH[SUHVVHGWKHQHHGRUSUHIHUHQFHIRUOLYLQJLQDQHFRQRPLFDOO\GLYHUVH FRPPXQLW\DQGWKHLPSRUWDQFHRIDEURDGUDQJHRIZRUNHUVEHLQJDEOHWRDIIRUGWROLYH QRWMXVWZRUNLQWKHFRPPXQLW\)RUVRPHWKLVZDVH[SUHVVHGVSHFLILFDOO\LQWHUPVRI FRQFHUQVRIJURZLQJLQHTXDOLW\ x 6HYHUDOSDUWLFLSDQWVDJUHHGZLWKWKHDGGLWLRQDOQHJDWLYHFRQVHTXHQFHVWRPRUHZRUNHUV KDYLQJWROLYHRXWRIFLW\ERXQGDULHVSDUWLFXODUO\WUDIILFDQGHQYLURQPHQWDOLPSDFWV x $NH\DVSHFWRIWKLVYLHZSRLQWIRUVRPHLVWKDWZKHQSHRSOHERWKOLYHDQGZRUNLQWKH FRPPXQLW\WKH\DUHPRUHOLNHO\WREHLQYROYHGLQWKHFRPPXQLW\  20 ATTACHMENT 4 +RXVLQJDIIRUGDELOLW\GLVFXVVLRQUHSRUW  9LHZSRLQW%,DPFRQFHUQHGZLWKDVVLVWLQJRXUPRVWYXOQHUDEOHUHVLGHQWVVXFKDVWKH KRPHOHVVSDUWLFXODUO\ORFDOIDPLOLHVDQGRXUYHWHUDQVDVZHOODVRXUUHVLGHQWVZLWKGLVDELOLWLHV DQGORZLQFRPHVHQLRUV+DYLQJVWDEOHKRXVLQJLVDFULWLFDOILUVWVWHSWRDGGUHVVLQJRWKHULVVXHV UHODWHGWRWKHLUVLWXDWLRQV x This viewpoint received less overall engagement. Several tables discussed it briefly, but typically with only a comment or two. x Some residents saw some of these topics as somewhat separate from housing affordability, while others specifically did support the importance of housing as a first step to provide stability to vulnerable residents. 9LHZSRLQW&,DPFRQFHUQHGZLWKWKHQHHGVRI\RXQJIDPLOLHVLQRXUFRPPXQLW\7KH\DUH LPSRUWDQWWRWKHFKDUDFWHURIRXUQHLJKERUKRRGVDQGWKHVWUHQJWKRIRXUVFKRROV:LWKRXWVWDEOH KRXVLQJ\RXQJFKLOGUHQPD\EHIRUFHGWRPRYHRIWHQFDXVLQJWKHPWRWUDQVLWLRQWRQHZVFKRROV DQGQHLJKERUKRRGVZKLFKFDQEHVLJQLILFDQWO\GHWULPHQWDOWRWKHLUHGXFDWLRQDOH[SHULHQFH x This viewpoint received the least engagement, with only 2 of the tables explicitly addressing it. x In the limited comments, concerns were expressed about families having to move out of Fort Collins, as well as the impacts on schools. 9LHZSRLQW',DPFRQFHUQHGZLWKKRZWKHULVLQJFRVWVLPSDFWVRXUH[LVWLQJQDWXUDOO\RFFXUULQJ DIIRUGDEOHKRXVLQJ7KLVZRXOGLQFOXGHRXUROGHUKLVWRULFQHLJKERUKRRGVPRELOHKRPHSDUNV DQGKRPHVRZQHGE\UHWLUHHV7KHVHFDQEHFULWLFDOVRXUFHVRIDIIRUGDEOHKRXVLQJWKDWQHHGWR EHSURWHFWHG5LVLQJFRVWVFDQSDUWLFXODUO\LPSDFWSHRSOHRQIL[HGLQFRPHVDQGOHDGWRWKHLU GLVSODFHPHQWIURPRXUFRPPXQLW\ x The viewpoint received an interesting variety of comments. The concept of “naturally occurring affordable housing” wasn’t familiar to some of the participants, and had to be explained at times at several of the tables. (Naturally occurring affordable housing includes housing that is affordable but is not officially connected to city programs or funding). Older homes can often be affordable if owned long term, and mobile homes also often serve as affordable housing. Several participants did mention, however, that many of the older historic neighborhoods are often the most expensive now in Fort Collins. x Many of the tables had discussions of mobile homes. Several participants expressed concerns about the loss of mobile homes over the last several years. Adding and protecting mobile homes was discussed as important, while other residents expressed concern (or more generally passed on concerns they have heard from others) about safety issues related to mobile home parks. The role of the city is adding or protecting mobile homes was unclear.    21 ATTACHMENT 4 +RXVLQJDIIRUGDELOLW\GLVFXVVLRQUHSRUW  9LHZSRLQW(,DPFRQFHUQHGZLWKWKHULVLQJGLIILFXOWLHVIDFHGP\PLGGOHHDUQHUV7KH\PDNH WRRPXFKWREHQHILWIURPDIIRUGDEOHKRXVLQJSURJUDPVEXWVWLOOVWUXJJOHWRILQGKRXVLQJWKDWLV DIIRUGDEOHWRWKHPDQGDUHRIWHQDOVRIRUFHGWRFRPPXWH7KLVFDQDOVRKDYHVLJQLILFDQW ZRUNIRUFHLPSDFWVDVZHOOLQWHUPVRIDWWUDFWLQJTXDOLW\WDOHQWWR)RUW&ROOLQV x This viewpoint was not engaged significantly. Discussions mainly involved participants sharing examples of people no longer able to afford Fort Collins and having to move. x The discussion of the role of employers (viewpoint I) often connected to this viewpoint inherently. Participants expressed concern that employers will have concerns about locating in Fort Collins if they don’t feel their employees will be able to live in the area. 9LHZSRLQW),DPFRQFHUQHGZLWK)RUW&ROOLQVVLPSO\JURZLQJWRRTXLFNO\DQGWKDWHIIRUWVWR DGGUHVVWKLVLVVXHZLOOOHDGWRHYHQIDVWHUJURZWKDQGYDULRXVDGGLWLRQDOSUREOHPV x The viewpoint drew controversy in some ways. Some explicitly pushed back on the wording. While generally many participants agreed that Fort Collins was growing quickly, they often also recognized it is difficult to control such growth, and the impacts are both positive and negative. Numerous comments focused on the notion that we must work to address the growth rather than simply push back on it. x Participants generally did not engage the tension between efforts to increase affordability and how they may facilitate growth. x A few participants singled out this viewpoint as the only one they disagreed with from the initial list. x The discussion on growth often acknowledged that Fort Collins is essentially “land locked” now, therefore shifted to a discussion for the need for more density, often by building higher. x Some participants shared that as Fort Collins increases in density, new problems will arise that will impact the quality of life and likely slow growth. 6HVVLRQ±:KDWFDQZHGRDVDFRPPXQLW\DWWKH ORFDOOHYHO" Session 2 followed a similar process as session one, except with a list of viewpoints that captured various actors and actions to address the issue. Participants were again provided with four questions to consider as they explored the statements: Which viewpoint most closely matches your own? Which viewpoint has you thinking differently? Which viewpoint raises particular concerns? What viewpoints are missing? The viewpoints are provided below with insights derived from the discussion notes and written comments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x *HQHUDOO\PRVWSDUWLFLSDQWVVXSSRUWHGWKHFLW\¶VFXUUHQWDIIRUGDEOHKRXVLQJHIIRUWVZLWKPDQ\ VLJQDOLQJVXSSRUWIRUH[SDQGHGHIIRUWV x $IHZSDUWLFLSDQWVH[SUHVVHGFRQFHUQWKDWWKHFLW\¶VVWDWHGJRDOVZHUHPRGHVWDQGQRWVXIILFLHQW IRUWKHQHHGVLQWKHFRPPXQLW\2WKHUVUHFRJQL]HGWKDWWKHVHHIIRUWVUHTXLUHVLJQLILFDQWIXQGLQJ DQGWKDWWKHFLW\FDQQRWEHH[SHFWHGWRDGGUHVVWKLVSUREOHPRQWKHLURZQ x 6HYHUDOWDEOHVKDGGLVFXVVLRQVDERXWWKHDSSURSULDWHOHYHORIUHJXODWLRQVIURPWKHFLW\WKDWLV SODFHGRQQHZGHYHORSPHQWV7KLVGLVFXVVLRQFRQQHFWHGWKLVYLHZSRLQWDQGYLHZSRLQW+EHORZ $ZLGHYDULHW\RIRSLQLRQVZHUHH[SUHVVHGZLWKVRPHSDUWLFLSDQWVIHHOLQJWKHFLW\UHJXODWHG GHYHORSHUVWRRPXFKDQGZHUHWRRUHVWULFWLYHZLWK]RQLQJDQGUXOHVZKLFKWKH\EHOLHYHGDGGHG VLJQLILFDQWO\WRWKHFRVWRIKRXVLQJ2WKHUVDFFXVHGWKHFLW\RIEHLQJWRRVXSSRUWLYHRIGHYHORSHUV DQGQRWEHLQJDVVHUWLYHHQRXJKFRQFHUQLQJWKHW\SHDQGTXDOLW\RIKRXVLQJ x 7KHGLVFRQQHFWEHWZHHQZKDWWKHPDUNHWVXSSRUWVLQKHUHQWO\DQGWKHQHHGVRIWKHFLW\ZDV UHFRJQL]HGDWDIHZGLIIHUHQWWDEOHVOHDGLQJWRVXSSRUWIRUYDULRXVPHDVXUHVE\WKHFLW\WRFORVH WKDWJDSZLWKLQFHQWLYHVWRPDNHLWPRUHOLNHO\IRUGHYHORSHUVWRVXSSRUWDIIRUGDEOHKRXVLQJDQG ILOOVSHFLILFKRXVLQJQHHGVLGHQWLILHGE\WKHFLW\EXWSHUKDSVQRWQDWXUDOO\ILOOHGE\WKHPDUNHW 9LHZSRLQW+,EHOLHYHZHVKRXOGGRDOOZHFDQDVDFRPPXQLW\WRZRUNZLWKGHYHORSHUVWRDGG XQLWVPRUHTXLFNO\ZKLFKOLNHO\PHDQVUHGXFLQJEDUULHUVDQGFRVWVWRGHYHORSPHQW 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Which viewpoint has you thinking differently? Which viewpoint raises particular concerns? What viewpoints are missing? 3DUW:KDWFDQZHGRDVDFRPPXQLW\DWWKHORFDOOHYHO" * ,EHOLHYHWKH&LW\RI)RUW&ROOLQVJRYHUQPHQWVKRXOGFRQWLQXHDQGLGHDOO\H[SDQGWKHLU FXUUHQWHIIRUWVIRFXVHGRQFUHDWLQJQHZDQGPDLQWDLQLQJH[LVWLQJDIIRUGDEOHKRXVLQJ VSHFLILFDOO\IRUORZLQFRPHUHVLGHQWV7KH\VKRXOGFRQWLQXHWRXWLOL]HGHYHORSPHQW LQFHQWLYHVILQDQFLDOUHVRXUFHVSURJUDPVDQGSROLFLHVDVZHOODVH[SORUHDGGLWLRQDORSWLRQV 7KLVZRUNLVFULWLFDOWREULGJLQJWKHJDSEHWZHHQFRPPXQLW\QHHGVDQGZKDWWKHPDUNHW QDWXUDOO\SURYLGHVDQGSURYLGLQJPRUHRIDYDULHW\RIRSWLRQVWKURXJKRXWWKHFLW\ + ,EHOLHYHZHVKRXOGGRDOOZHFDQDVDFRPPXQLW\WRZRUNZLWKGHYHORSHUVWRDGGXQLWV PRUHTXLFNO\ZKLFKOLNHO\PHDQVUHGXFLQJEDUULHUVDQGFRVWVWRGHYHORSPHQWLQFHQWLYL]LQJ EXLOGHUVLQFUHDVLQJGHQVLW\DQGSRWHQWLDOO\UHWKLQNLQJKHLJKWOLPLWV7KHODFNRIDIIRUGDEOH KRXVLQJLVSULPDULO\DIDFWRURIHPSOR\PHQWDQGSRSXODWLRQLQFUHDVLQJIDVWHUWKDQKRXVLQJ 7KLVLVSDUWLFXODUO\GXHWRWKHEXLOGLQJVORZGRZQDIWHUWKHUHFHQWUHFHVVLRQ$GGLQJXQLWV DFURVVWKHKRXVLQJVSHFWUXPFRXOGKHOSDGGUHVVPDQ\RIWKHFRQFHUQVDFURVVDOOLQFRPH OHYHOV , ,EHOLHYHORFDOHPSOR\HUVSDUWLFXODUO\RXUODUJHVWHPSOR\HUVVKRXOGWDNHPRUHUHVSRQVLELOLW\ IRUWKHKRXVLQJRIWKHLUHPSOR\HHV DQGZLWK&68ERWKIRUWKHLUHPSOR\HHVDQGVWXGHQWV +RXVLQJDIIRUGDELOLW\GLVFXVVLRQUHSRUW  %DVHGRQWRGD\ VGLVFXVVLRQZKDWGR\RXPRVWZDQWFLW\FRXQFLOWRXQGHUVWDQGDERXW\RXU RSLQLRQRQWKLVLVVXH" 7KHUHLVQRWKLQJZHFDQGR'RQ WWU\WRRKDUG:DLWIRUWKHQH[WFUDVK""" MRNH October 30, 2018 Affordable Housing Incentives Sue Beck-Ferkiss and Dean Klingner ATTACHMENT 5 Questions for Consideration 2 1. Does Council support the Task Force’s recommended initiatives? 2. Which options would Council like staff to further explore? ATTACHMENT 5 Housing Attainability Fundamentals 3 Median Home Price Median Income of a Family of 4 Median Income of All Households ATTACHMENT 5 Strategic Plan Alignment Neighborhood Livability and Social Health 1.1 Improve access to quality housing that is affordable to a broad range of income levels 1.2 Collaborate with other agencies to address poverty issues and other identified high priority human service needs, and to make homelessness rare, short-lived and non-recurring 1.3 Co-create a more inclusive and equitable community that promotes unity and honors diversity 4 ATTACHMENT 5 5 Housing Affordability Along the Income Spectrum AMI 0% Below 80% AMI is City’s Definition of Affordable Housing 80% $68K/yr 100% 200% $85K/yr 120% $102K/yr $415K Market Housing Purchase Price $320K Goal is defined by AHSP (188-228 units/year) Fewer attainable options are available to the “Missing Middle” Goal is harder to define & City influence may be outweighed by market forces ATTACHMENT 5 Consumers of Affordable Housing 6 Preschool and Kindergarten Teachers Employment in Fort Collins 455 Average Annual Wages $34,300 Nursing, Psychiatric, and Home Health Aides Employment in Fort Collins 1,378 Average Annual Wages $29,100 Administrative Assistants Employment in Fort Collins 3,017 Average Annual Wages $38,800 Food and Beverage Serving Workers Employment in Fort Collins 5,857 Average Annual Wages $25,000 ATTACHMENT 5 Affordable Housing Goals Goal 5,155 Inventory 3,443 Projection 4,330 7 Expected Gap 825 Current Plan Goal of 188 per year Next Plan Estimated Goal of 228 per year ATTACHMENT 5 City Areas of Influence 8 Development Standards Policy Funding Land Use Regulations Utilities Programs Possible Approaches Education ATTACHMENT 5 Top Recommendations 9 INCREASE REVENUE DECREASE COSTS MAXIMIZE PARTNERSHIPS 1. City Plan Update 2. Flexible Development Standards 1. Water District Collaboration 2. Employers 3. Community Land Trusts 1. Direct Capital Assistance 2. Metro Districts 3. Impact Fee Study ATTACHMENT 5 Early Public Outreach 10 April 25 City Works 101 April 11 & 20 Coffee Chats May 2 Community Issues Forum Stakeholders Open House April 26 Neighborhood Connections April 12 July 10 Board of Realtors Developers & Lenders Focus Group May 21 Affordable Housing Board October 11 ATTACHMENT 5 Next Steps • Implement Council Direction • Create Task Force 2.0 • Continue Public Outreach • Plan, Do, Check, Act 11 ATTACHMENT 5 Questions for Consideration 12 1. Does Council support the Task Force’s recommended initiatives? 2. Which options would Council like staff to further explore? 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XVHIXOEDFNJURXQGPDWHULDODQGWKHQGHVLJQVIDFLOLWDWHVDQGUHSRUWVRQLQQRYDWLYHSXEOLFHYHQWV7KH LQWHUSUHWDWLRQVDQGFRQFOXVLRQVFRQWDLQHGLQWKLVSXEOLFDWLRQKDYHEHHQSURGXFHGE\&3'DVVRFLDWHV ZLWKRXWWKHLQSXWRISDUWQHURUJDQL]DWLRQVWRPDLQWDLQLPSDUWLDOLW\ 14 ATTACHMENT 4 Link to other city efforts? Development Review Process Improvements IDAP ‐ Gary Schroeder contact Could be incorporated int o flexible design program ‐ like PUD for AH LID Support needed from task force? not needed Determine what level of benefit this would be for AH developers May need assistance in determining Utility purpose and in developing the program Outreach to AH developers to see if this is feasible. Analysis/Evaluation Metrics TBD time to release escrow $$ $$ distributed in grant funds ($$ saved for developer) TBD Affordable Housing Score Housing Affordability Impact Low low medium low Co‐benefits This benefits all development, Affordable not targeted This benefits all development, Affordable not targeted Potential cost savings Better design and possibly long term cost savings Priority Level Low low low low ATTACHMENT 2 efforts. ‐depending on council work session in July, this could fall off ‐ probably not feasible in 19 or 20 given KFCG renewal and prioritization of that effort ‐would need to identify funding source ‐identify which needs would be most critical for funding ‐initiate policy process for creation and authorization ‐identify CLT operators ‐determine program parameters and potential funding source ‐evaluate opportunity ‐would require partnership with County at staff and leadership levels and with Neighbor to Neighbor ‐determine possible impact on the problem of affordable housing ‐Update MD policy (pending) ‐Explore various options on how MD devs could provide AH '‐Work with interested developers ‐Specify objectives within individual urban renewal plans ‐Work with developer applicants ‐Look for new URPs around affordable housing Timeframe 12+ month effort if pursued 12+ month effort if pursued 12+ months effort if pursued If part of KFCG, ballot measure in April 2021 unclear, based on funding availability exploration underway TBD Depedent on Council approval of individual IGAs Opportunistic Risks or Barriers Community pushback, developer pushback, impact on home prices, etc. Pushback from business community, economic impact, general sensitivity to expansion fees Unclear if community would support such an effort. Pushback from development community, fee sensitivity Tax level, other priorities, KFCG expiring generally, could be added to funds in the Affordable Housing capital Fund Competitive rates with neighboring Cities could affect conference bookings. Would add to projects currently being funded such as Fort Fund and Fort Collins Convention and Visitors Bureau, but they could see this as diluting their funding source. finding seed money, repayment timeframe/default, only one comparison within CO (Denver) Trusts need to be supported ,ong term. Had a trust that failed in past. Partnership with esiting trust preferable. Home Share just lauching in larimer County ‐ might want to wait for success to add additional benefit/burden. Might not be needed if rental icome enough to support agingin place. Depedent on interested developers, willing Council, and good implementation strategies Significantly lower TIF derived from residential; additionaly, more service impacts are created ‐ necessitates greater allocation to underlying tax districts Resources Needed Nexus Study Voter approval Voter approval Funding Identifying Partner County would need to be willing to forgo revenue staff time ongoing Link to other city efforts? Fee working group Fee working group Fee working group KFCG Renewal (Ginny), CCIP Possibly the Culteral Arts Plan Combine with Cluster programs? City Plan? Home Share EHO and City Planning URA Support needed from task force? Alignment with fee schedule Alignment with fee schedule Alignment with fee schedule EHO lead Analysis/Evaluation Metrics Affordable Housing Score Housing Affordability Impact High High High High High Medium TBD low (small #) medium/high Low Co‐benefits engages employers engages Could tie to other outcomes such as CAP Could bring additional rev. Good model for future projects. Supports long term affordability. Helps seniors age in place mixed income development mixed use and mixed income developments Priority Level 123451 16 2 1 Affordable Housing Task Force Team Template Financial Tools Project Management ATTACHMENT 2