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
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
Reduced time for review, both Building dept. and Planning dept.
Streamline process
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.
12
ATTACHMENT 4
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TABLE OF CONTENTS
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18
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KEY FINDINGS.
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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.
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20
ATTACHMENT 4
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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.
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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.
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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
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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.
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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.
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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.
22
ATTACHMENT 4
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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?
ATTACHMENT 5
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APPENDICES
Appendix A – Participant Worksheet
Appendix B – Written participant answers to the final question of “Based on today's discussion,
what do you most want city council to understand about your opinion on this issue?”
All the raw data from the worksheets and the table discussions is available online at:
https://col.st/R1JHv
27
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14
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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