HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/07/2017 - FIRST READING OF ORDINANCE NO. 148, 2017, AMENDINGAgenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY November 7, 2017
City Council
STAFF
Sue Beck-Ferkiss, Social Sustainability Specialist
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 148, 2017, Amending Various Provisions of the Code of the City of Fort Collins
and the Land Use Code to Allow for the Discretionary Waiver of City Fees on Additional Affordable Housing
Projects to be Constructed in the City.
EXECUTIVE SUMMARY
The purpose of this item is to change City policy to allow any developer of housing units targeting households
with incomes of no more than 30% area median income (AMI) to request affordable housing fee waivers for
the qualifying units and to amend the City Code to reflect this change. This matter was presented to the
Council Finance Committee on October 16, and will be presented to the Planning and Zoning Board at a work
session on November 9 and a hearing on November 16.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The City has long been committed to affordable housing, and the need for financial support continues to be
demonstrated by the increase in the number of applications for local and federal funds and the long waiting
lists for available affordable housing in our City. Fee waivers have been one of the consistent incentives
available to developers of affordable housing in the City. Historically, most development fees of the Fort Collins
Housing Authority were traditionally waived.
In March 2013, City Council amended its policies on fee waivers for affordable housing to allow for more
discretion in determining the kinds of projects for which City fees should be waived. This was after a large
waiver was granted to a project that was being developed primarily by CARE Housing, a local non-profit, with
the Housing Authority having only a very small interest.
This change limited waiver eligibility to only the Housing Authority, and then only for projects constructed for:
• Persons experiencing homelessness
• Disabled persons,
• Or for households whose income is no greater than 30% of the area median income (AMI) of all City
residents.
Furthermore, waivers were to be granted at the discretion of City Council upon a determination that the
proposed waiver will not jeopardize the financial interests of the City or the timely construction of the capital
improvements to be funded by the fees for which a waiver is sought.
The categories of fees for which waivers can be requested include:
Agenda Item 11
Item # 11 Page 2
(1) Capital expansion fees,
(2) Development review fees, and
(3) Building permit fees.
The City’s waiver policy has greatly restricted the number of projects that qualify for waivers. This policy
recognizes that households earning no more than 30% AMI cannot afford market rate housing in our City at
this time. The average rent in the City is currently over $1,400 a month. A one-person household at 30% AMI
would have a monthly income of about $1,345 - less than the City’s average rent. (Attachment 3) A four-
person household would need to pay 68% of their income to afford the average market rate. Ideally, renters
would never pay more than 30% of their income on housing. Developers need public subsidy to produce
housing that this demographic can afford.
In recognition that housing units that target household’s earning no more than 30% AMI requires public support
to be offered to that demographic at rates affordable to their income level, the City wishes to incentivize all
developers bringing 30% AMI units to the City. The proposed Ordinance allows all developers of units targeting
this income bracket to request affordable housing fee waivers. Such request must be made before a certificate
of occupancy is issued for the community to assure that this policy apply to only new development projects.
Granting fee waivers will still be at the discretion of City Council and subject to a showing that granting the
request will not jeopardize the finances of the City or delay any capital improvement funded by impact fees.
CITY FINANCIAL IMPACTS
When fees are waived, the City forgoes revenue it would otherwise collect. Further, the City’s custom has been
to reimburse City departments for all capital expansion fees that are waived out of City funding, usually from
the General Fund reserves. Affordable Housing funds in the Community Capital Improvement Fund are
another possible source for funding the reimbursement of waived capital expansion fees. Lastly, Staff is
proposing a 2019-2020 budget offer for the reimbursement of anticipated capital expansion fees projected to
be waived in 2019-2020 as a proactive approach to funding this affordable housing incentive.
BOARD / COMMISSION RECOMMENDATION
At its August 3, 2017 meeting, the Affordable Housing Board unanimously voted to support the expansion of
eligibility to request affordable housing fee waivers. (Attachment 2).
The Planning and Zoning Board will consider the proposed changes to the Land Use Code at a work session
on November 9 and a hearing on November 16. The Board’s decision will be provided to City Council in its
read-before packet on November 21.
The Council Finance Committee discussed this and supports expanding fee waivers to all developers of 30%
AMI units.
PUBLIC OUTREACH
Public outreach on expansion of eligibility for waivers was conducted as part of the Housing Affordability Policy
Study in 2014 and as part of the Affordable Housing Strategic Plan in 2015. The Affordable Housing Board
discussed this expansion at its regular board meeting on August 3, 2017. The public was given an opportunity
to comment on staff’s proposal at that time. Additionally, several developers were informally informed of the
proposed change and uniformly supported the expansion of eligibility.
ATTACHMENTS
1. Council Finance Committee minutes, October 16, 2017 (draft) (PDF)
2. Affordable Housing Board minutes, August 3, 2017 (PDF)
3. 2017 Income Limits (PDF)
Council Finance Committee
October 16, 2017 (DRAFT)
1
Housing Affordability Task Force - Policy Recommendation - Capital Fund
Sue Beck-Ferkiss
Dean Klingner
EXECUTIVE SUMMARY
The voters approved an Affordable Housing Capital Fund (AHCF) as part of the Community
Capital Improvement Program (CCIP) to be used for the capital costs of one or more affordable
housing community. Over ten years the fund will accumulate $4 million. Staff is offering
suggested strategies for the use of this fund for Council Finance Committee direction and
feedback.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Which Strategies do you support?
• Fee Waiver backfill
• Land Bank Program
• Direct subsidy
• Social innovation grant
• Affordable Housing Demonstration Project
2. Is there feedback on the fee waiver backfill strategy?
BACKGROUND
In 2015, the voters approved the Affordable Housing Capital Fund (AHCF) as part of the
dedicated sales tax initiative for City capital projects. The approved language states:
This project will fund capital costs of development or rehabilitation of one or more public or
private housing projects designated specifically for low-income individuals or families.
The AHCF funds accumulate over time according to the following schedule:
2016 $200,000
2017-2018 $250,000
2019-2020 $400,000
2021-2015 $500,000
The current fund balance is $450,000. It will accumulate a total of $4 million over 10 years.
Staff was asked to look at the best way to use this fund to incentivize one or more affordable
housing projects. This task was given to the Internal Housing Task Force (Task Force) which is a
multi - departmental group with representatives from over 10 City departments including: City
Manager’s Office, Communications and Public Involvement Office, Economic Health Office,
Environmental Services, Engineering, Finance, Planning, Social Sustainability, Utilities -
Community Engagement, Utilities – Finance, and Utilities – Water. Other departments expertise
is also tapped as needed. While this group has many deliverables, options for the best use of
the AHCF is the current focus of their work. This group was created in recognition of the
ATTACHMENT 1
Council Finance Committee
October 16, 2017 (DRAFT)
2
importance of the issue of affordable housing to our community and the fact that many City
departments are involved in this type of development.
In analyzing the approved language, staff focused on the capital costs purpose and the low-
income target population. We looked at trying to maximize the productions of units while at
the same time leaving flexibility to respond to future opportunities that present while also
striving for innovation. That said, $4 million does not really go far in the production of
affordable housing units that often cost more than $200,000 per unit to construct and not
much less to rehabilitate units for preservation. With that in mind, the AHCF must be seen as a
leveraging tool and something to add to the way the City is already supporting affordable
housing projects.
To further illustrate that point, here are examples of recent projects total development costs:
Community Total cost Units City investment Source of investment
Redtail $12.5 M 60 $1.68M CDBG/HOME
$1,085,856
AHF (City)
$229,416
Fee Waivers
$288,000
Legacy $14.7 M 60 $717,000 CDBG/HOME $688,261
AHF (City)$28,890
Horsetooth $26.5 M 96 $2.25 M+ HOME $1.1M
AHF (City) $1.1M
Fee Waivers pending
$360,136
Discounted land 20%
Oakridge
Crossing
$22 M 110 PAB allocation State allocation
Community Development Block Grants (CDBG) and HOME funding is federal funding from the
federal department of Housing and Urban Development. The Affordable
Housing Fund (AHF) is City general funds. Waivers are typically reimbursed with general funds
too. The Private Activity Bond support is assigning tax free debt capacity and not actual funding.
Recent rehabilitation projects have had similar big budgets. An example of a large acquisition
and rehab project is the Village on Shields. Total cost for this was $64 million for 285 units. The
City provided $3.14 million using CDBG, HOME and the AHF for this project. A small
rehabilitation project was the Village on Matuka. To renovate 20 units it costs $1.1 million of
which the City invested $380,000 of CDBG.
Council Finance Committee
October 16, 2017 (DRAFT)
3
Fee waivers are an incentive provided by City code at the discretion of City Council. Currently
they are only available to the Housing Authority for the production of units targeting
households with income of no more than 30% area median income (AMI) which is currently
about $16,150 for a single person or $24,600 for a family of 4. However, the City is considering
expanding the eligibility of this incentive to all developers of units for this income. That would
require additional City resources because the City’s custom is to reimburse City departments
for capital expansion fees that are waived. This has typically come from General Fund Reserves.
An expansion of this incentive may require additional funding sources. Staff is recommending
that this expansion be applied only to developments who have not yet received their certificate
of occupancy to ensure we are using the incentives to bring on new units and not reimburse
developers for units that have already been delivered.
The last 4 projects that received waivers and backfill of CEFs were:
1. In 2011, $509,896 was backfilled for CARE Housing’s Provincetowne
2. In 2014, $288,000 was backfilled for Redtail Ponds
3. In 2017, $100,708 was backfilled for Village at Redwood
4. Pending request for $308,907 to backfill for Village at Horsetooth.
In considering the best use of the AHCF, the Task Force considered many things including:
Immediacy – How quickly do we want to use these funds?
Number of investments – One project or multiple?
Flexibility – How do we respond to funding or innovation opportunities?
Metrics for success – Just more units or innovation factor?
Target population – The Lowest wage earners or more of the housing spectrum?
In addition to regular monthly meetings, the Task Force conducted two focused sessions on the
best use of the AHCF. We also convened a developer’s focus group to get industry input early in
the process and to test our ideas. The following strategies are a result of this work to date. We
looked at existing programs as ways to deploy these funds quickly, and also propose some ideas
for new programs that may take some time to develop. Lastly, since the funds come in over
time, strategies requiring more money may have to wait until more funds accumulate.
Staff identified the following optional strategies for consideration:
1. Fee Waiver Backfill:
Existing program that could use funds quickly Targets households making no more
than 30% AMI.
Responds to assist developers already bringing affordable housing projects and
relies on those projects coming forward.
Total contribution to project limited to waivable fees. Since total fees not more than
9% of cost, impact small.
2. Land Bank Program:
Existing program that could use fund quickly if land is identified and would serve
incomes in the affordable ranges. Currently capped at 50% AMI average for rental
Council Finance Committee
October 16, 2017 (DRAFT)
4
and 60% AMI for Home Ownership. Pending recommendations may increase to full
affordable range or up to 80% AMI. Program specifies limit what may be
constructed.
Relies on developer’s response to City issued Request for Proposals
Offers discounted land value, impact small to overall costs.
3. Direct Subsidy:
New program with parameters to be determined. Time would be required to
develop.
Possible two prong approach with the City code providing specific amounts per unit
in income ranges up to a maximum amount or the ability to ask Council for more
than the amounts per unit if that is what is required. For instance, $15,000 per 30%
AMI unit, $10,000 per 40% AMI unit and $5,000 per 50% AMI unit or a discretionary
ask of Council for $4 million to close a funding gap in one development.
Could target lower incomes, for example up to 60% AMI.
Responds to assist developers already bringing affordable housing projects and
relies on those projects coming forward.
Total contribution to each project would depend on whether Council approved a
large amount for one project or if the City code small per unit investments were
sought.
4. Social Innovation Grant:
New program with parameters to be determined. Time would be required to
develop.
Possibly a competition approach for innovation in addition to affordable housing
units. This could be innovation in an existing affordable housing concept and assist a
developer bringing housing to the market, or it could be a new concept that
traditional funding sources could not support.
Could serve the affordable housing income ranges and possibly include mixed
income options.
Total contribution to development costs would depend on how much of the fund is
offered.
5. Affordable Housing Demonstration project:
New program with parameters to be determined. Time would be required to
develop.
Concept is that the City would purchase land or a building for adaptive reuse to be
offered to a partner for an affordable housing development that would meet the
goals of several City programs in addition to providing affordable housing. For
instance, it could need to meet the City’s Climate Action goals and/or include Nature
in the City.
More flexible than the Land Bank Program.
Could serve affordable ranges and possibly include mixed income if the City desires.
Would require a substantial portion of the AHCF.
Total contribution to the project would be in the range of 15-25%.
Council Finance Committee
October 16, 2017 (DRAFT)
5
Staff recommendations are preliminary as direction is sought from Council. Staff recommends
using the AHCF for capital expansion fee backfills in combination with General Fund Reserves
until a BFO offer is funded for fee waiver backfills. Staff would like to reserve some portion of
the AHCF to respond to future opportunities.
Discussion / Next Steps;
Ken Summers; I am comfortable considering e just utilized funds for backfill for fee waivers
Backfill of fee waivers – backfilling ahead of income coming in from Affordable Housing Fund
($450K)
$4M comes in over 10 years – we need to keep alternatives in mind - not let those go by the
wayside - every project is going to have those requests – give us available funds to address
those
Ross Cunniff; I agree with Ken Summers - stay the course on this - innovation always comes
with risk – not a negative – tried and true in early years of capital expansion tax - the dollar
amounts are relatively low - Like 1-10 leverage magnifier - we don’t have other ideas flushed
out to meet that kind of benchmark - Using it in this targeted way makes sense – support the
idea of expanding applications beyond just Housing Catalyst - meet requirements as they apply
Land Bank was a possible option - yellow flag - I expect in the next 5 years we will be forced to
be more innovative on how we address – we aren’t there yet
Mayor Troxell; supportive of comments made
I like the things you are exploring - continue down that path
Mike Beckstead; As we move into BFO next spring – conversation we had about a BFO offer -
setting up a tiered system - we talked to Sue about getting in front of what is coming - see if we
can get 30 months in advance – understand what is coming – use that for BFO offer - that is the
kind of dialog on how we operationalize this policy – as a blend of available funding – we are
out in front of it – having dialog
Sue Beck-Ferkiss; we are moving forward November 7
th
with the eligibility of fee waivers - 30%
units only for projects that are not completed - time standard - they don’t yet have their
certificate of occupancy
Ross Cunniff; yes, unfunded backlog
Village on Horsetooth Fee Waiver Request
Sue Beck-Ferkiss
EXECUTIVE SUMMARY
The Fort Collins Housing Authority, doing business as Housing Catalyst (HC), has requested that
certain development and capital improvement expansion fees be waived for qualifying units at
Council Finance Committee
October 16, 2017 (DRAFT)
6
the Village on Horsetooth. In March 2013, City Council limited the types of projects for which
fee waivers may be requested and made these waivers discretionary. Eligible projects are those
constructed for homeless or disabled persons, or for households whose income falls at or below
30% of the area median income of all City residents. HC is requesting fee waivers in the amount
of $360,136 for the 43 qualifying units at the Village on Horsetooth.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does the Council Finance Committee (CFC) support granting the fee waiver request?
2. If so, does the CFC support a waiver of fees and backfilling or waiver without a backfill?
3. If CFC desires the Capital Expansion Fees to be backfilled, should this funding come from
the General Fund or the Affordable Housing Capital Fund or from both?
BACKGROUND/DISCUSSION
HC is seeking the waiver of certain development and capital improvement expansion fees for
the Village on Horsetooth affordable housing project as allowed by City Code, the Land Use
Code, and an Intergovernmental Agreement between the City of Fort Collins and the Fort
Collins Housing Authority dated July 3, 2013. The Village on Horsetooth will deliver 96 units, of
which 43 will be targeted to households making no more than 30% of the area median income
(AMI). The request from HC is attached as attachment 1.
Under Colorado Statutes and City of Fort Collins ordinances and resolutions dating back to
1988, projects of housing authorities are exempt from taxes and some fees. For many years, the
City waived building permit and development review fees and some capital expansion fees for
housing authority projects. Historically they had been small amounts.
In March 2013, City Council amended its policies on fee waivers for affordable housing to allow
for more discretion in determining the kinds of housing authority sponsored projects for which
City fees should be waived. This was after a large waiver was granted to a project that was
being developed primarily by CARE Housing with the Housing Authority having only a very small
interest. By adopting Ordinance No. 37, 2013, City Council limited the types of projects for
which HC could ask for waivers. These are projects that are constructed for homeless or
disabled persons, or for households whose income is no greater than 30% of the area median
income of all City residents. Furthermore, these waivers will be granted at the discretion of City
Council upon a determination that the proposed waiver will not jeopardize the financial
interests of the City or the timely construction of the capital improvements to be funded by the
fees for which a waiver is sought.
This change also limited waiver eligibility to only the Housing Authority. Earlier this summer,
staff was directed to bring forward for Council consideration, a change that would allow all
developers who produce units targeting households making no more than 30% to request
discretionary affordable housing fee waivers. That is now scheduled for November 7, 2017.
Council Finance Committee
October 16, 2017 (DRAFT)
7
The Village on Horsetooth is a 96 unit affordable housing community being constructed at 1506
W. Horsetooth Road in Fort Collins. See attachment 2 for map of location. Of the 96 total units,
43 units, equaling 45% of the total development, will be dedicated to households making no
more than 30% AMI. HC is seeking the waiver of certain fees for those 43 qualifying units. The
total of these fees for the project is $1,749,865 (including $608,994 not eligible for City fee
waivers). The request is for 45% of eligible fees, $360,136, to be waived. This amount includes a
request to waive a Larimer County capital expansion fee which is under review. If determined
ineligible, the request moving forward will be reduced by about $10,000.
The 2017 income limits published by the U. S. Department of Housing and Urban Development
for 30% of the Fort Collins AMI is $16,150 for a household of 1 and $24,600 for a household of
4. Households at this income level are some of the City’s most vulnerable residents. These units
fit the definition and are eligible for fee waivers as established by City Code, the Land Use Code,
and the Intergovernmental Agreement (attachment 3).
Funding for this $26.5 million project is a combination of city and state grants, Low Income
Housing Tax Credit financing, owner equity and conventional financing. Current pro formas rely
upon these fee waivers to complete the project’s funding.
The City has established affordable housing production goals in the 2015-2019 Affordable
Housing Strategic Plan (Plan). The need for financial support for these goals to be met is also
stated in the Plan. The annual production goal for this 5 year plan is 188 units. This project will
deliver 96 units which is 51 % of the City’s annual goal. Since the City does not develop housing,
development partners are relied upon to bring this necessary housing product to the
community. This project will increase the inventory of affordable rental units which is one of
the strategies listed in the Plan.
It is recommended that any capital expansion fees waived be subject to backfill by the City to
reimburse city departments for fees if this waiver is granted, as has been the City’s custom to
date. Traditionally backfill of capital expansion fees occurred and has come from General Fund
reserves. Alternatively, funds for this request could come from the Affordable Housing Capital
Fund that was approved by the voters as part of the City Capital Improvements Program. This
fund will accumulate $4 million over ten years. Of that amount, $200,000 was scheduled for
2016, $250,000 for 2017 and $250,000 for 2018.
The Affordable Housing Board supports this waiver request. The City’s waiver policy has greatly
limited the types of projects that qualify for waivers. This policy recognizes that households
earning no more than 30% AMI cannot afford market rate housing in our City at this time. The
average rent is currently over $1,200 a month. A one person household at 30% AMI would need
to pay 89% of their income to pay the average rent. A four person household would need to
pay 59% of their income to afford the average market rate. Ideally, renters would never pay
more than 30% of their income on housing. Developers need public subsidy to produce housing
that this demographic can afford. Staff also supports granting this waiver request.
Council Finance Committee
October 16, 2017 (DRAFT)
8
We pulled the forecast back and things are coming in consistent with the forecast.
Discussion / Next Steps;
Updated Waiver Request presented;
Ross Cunniff; two thumbs up
Ken Summers; occupation chart is very interesting - the waiver request is a good program and I
am supportive
Mayor Troxell; two thumbs up
Bring back as an appropriation to Council on November 7
th
Work session scheduled on November20th
AFFORDABLE HOUSING BOARD
Thursday, August 3, 2017
Update on City Waiver Policy: Sue Beck-Ferkiss – Social Sustainability Department
The current City Code states that fee waivers can only be accessed by Housing Catalyst for the
development of housing for individuals with an AMI of 30% or less. Council Finance would like to
extend that to include all developers who provide housing units to this AMI level not just to Housing
Catalyst. The new proposal will go to Council on September 19, 2017. Sue said that in 2016 no fee
waivers were offered and in 2015 about $300,000 was provided to Red Tail Ponds.
Eloise Emery moved that the Affordable Housing Board support the proposed ordinance change
to allow any developer to request fee waivers for 30% AMI housing units. The motion was
seconded by Jennifer Bray. After much discussion the motion passed unanimously 6-0.
ATTACHMENT 2
2017 Income Limits
Income Limits (effective 06/15/17)
2017 Median Income: $76,800
City of Fort Collins
Household Members
AMI = Area Median Income
*80%, 50% & 30% are the Section 8 income limits published by HUD.
Income 1 2 3 4 5 6 7 8
100% of AMI $53,800 $61,500 $69,200 $76,800 $83,000 $89,100 $95,300 $101,400
80% of
AMI*
$43,050 $49,200 $55,350 $61,450 $66,400 $71,300 $76,200 $81,150
60% of AMI $32,280 $36,900 $41,520 $46,100 $49,800 $53,460 $57,180 $60,840
50% of AMI* $26,900 $30,750 $34,600 $38,400 $41,500 $44,550 $47,650 $50,700
30% of AMI* $16,150 $18,450 $20,750 $24,600 $24,900 $26,750 $28,600 $30,450
ATTACHMENT 3
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ORDINANCE NO. 148, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING VARIOUS PROVISIONS OF THE CODE OF THE CITY OF
FORT COLLINS AND THE LAND USE CODE TO ALLOW FOR THE
DISCRETIONARY WAIVER OF CITY FEES ON ADDITIONAL AFFORDABLE
HOUSING PROJECTS TO BE CONSTRUCTED IN THE CITY
WHEREAS, Housing Catalyst (“HC”), formerly the Fort Collins Housing Authority, was
formed by the City Council in 1970 pursuant to the authority contained in Section 29-4-101, et
seq. of the Colorado Revised Statutes, for the purpose of providing affordable, safe and sanitary
housing in the City that is within the means of families of low or moderate income; and
WHEREAS, by adoption of Ordinance No. 065, 1999, the City Council exempted from
the imposition of the City’s capital improvement expansion fees the land development projects
of housing authorities formed pursuant to the provisions of Section 29-4-101, et seq., and
specified various other City fees from which such projects are also to be exempted; and
WHEREAS, the financial impact of such fee waivers on the City can be substantial,
depending upon the size of the project that is exempted, and whether the lost fee revenues need
to be replaced by the City; and
WHEREAS, on March 19, 2013, the City Council adopted Ordinance No. 037, 2013 (the
“2013 Ordinance”), which made amendments to the City Code and Land Use Code limiting the
types of projects for which HC could request fee waivers, and specifying that those waivers are
to be granted at the discretion of City Council upon a determination that proposed waivers will
not jeopardize the financial interests of the City or the timely construction of capital
improvements to be funded by the fees; and
WHEREAS, the 2013 Ordinance also authorized and directed the Mayor to enter into an
intergovernmental agreement between the City and HC documenting HC’s intent to limit future
fee waiver applications to affordable housing projects that meet the criteria established by such
Ordinance (the “Intergovernmental Agreement”); and
WHEREAS, the Intergovernmental Agreement was executed on July 3, 2013; and
WHEREAS, the City Code currently provides that the City Council can waive, by
ordinance, fees that would otherwise be imposed for an affordable housing project wholly or
partially owned by a housing authority only if the City Council determines that: (1) the proposed
project is intended to house homeless or disabled persons, as such terms are defined by the
Department of Housing and Urban Development (HUD), or households with an annual income
that does not exceed 30% of the area median income (AMI) for the applicable household size in
the Fort Collins-Loveland metropolitan statistical area, as published by HUD; and (2) the
proposed waiver will not jeopardize the financial interests of the City or the timely construction
of the capital improvements to be funded by the fees for which a waiver is sought; and
-2-
WHEREAS, the general categories of fees that the City Council can consider waiving
include capital expansion fees, development review fees and building permit fees; and
WHEREAS, the related City Code provisions are based on the recognition that
households earning less than 30% AMI cannot afford market rate housing in Fort Collins, and
that developers need public subsidies to produce housing that residents in this demographic can
afford; and
WHEREAS, the City wishes to provide an incentive for all developers to provide units
affordable to those making less than 30% AMI by amending the City Code and Land Use Code
to allow all developers of units targeting that income bracket to request fee waivers for the
affordable portion of their projects; and
WHEREAS, a developer would be required to request such waivers prior to the City
issuing any certificates of occupancy for a project; and
WHEREAS, whether to grant a fee waiver would still be in the discretion of the City
Council and subject to a finding that granting the request will not jeopardize the City’s financial
interests or timely construction of capital improvements; and
WHEREAS, the City Council believes it is in the best interests of the City to amend the
City Code and Land Use Code accordingly.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS AS FOLLOWS:
Section 1. That the City Council hereby makes and adopts the determinations and
findings outlined in the recitals set forth above.
Section 2. That Section 7.5-19(b) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-19. Imposition, computation and collection of fees.
...
(b) Notwithstanding the foregoing, the City Council may, by ordinance,
waive the imposition of any fee imposed by the provisions of this Article for
an affordable housing project wholly or partially owned by a housing
authority formed pursuant to the provisions of C.R.S. Section 29-4-101, et.
seq, if the City Council, in its sole discretion, determines that:
(1) the affordable housing project is intended to house homeless or
disabled persons, as such terms are defined by the Department of
Housing and Urban Development, or households with an annual
income that does not exceed thirty (30) percent of the area median
income for the applicable household size in the Fort Collins-Loveland
-3-
metropolitan statistical area, as published by the Department of
Housing and Urban Development; and
(2) the proposed waiver will not jeopardize the financial interests of
the City or the timely construction of the capital improvements to be
funded by the fees for which a waiver is sought.
Any waiver of fees hereunder must be applied for in accordance with City application
requirements prior to the City’s issuance of any certificates of occupancy for the project
that is the subject of the waiver request.
Section 3. That Section 7.5-48(e) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-48. Land dedication or in-lieu fees imposed.
…
(e) Notwithstanding the foregoing, the City Council may, by ordinance, waive
the imposition of any fee imposed by the provisions of this Article for an
affordable housing project wholly or partially owned by a housing authority
formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City
Council, in its sole discretion, determines that:
(1) the affordable housing project is intended to house homeless or
disabled persons, as such terms are defined by the Department of Housing
and Urban Development, or households with an annual income that does
not exceed thirty (30) percent of the area median income for the applicable
household size in the Fort Collins-Loveland metropolitan statistical area,
as published by the Department of Housing and Urban Development; and
(2) the proposed waiver will not jeopardize the financial interests of the
City or the timely construction of the capital improvements to be funded
by the fees for which a waiver is sought.
Any waiver of fees hereunder must be applied for in accordance with City application
requirements prior to the City’s issuance of any certificates of occupancy for the project
that is the subject of the waiver request.
Section 4. That Section 7.5-71(c) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-71. Neighborhood parkland capital expansion fee.
-4-
…
(c) Notwithstanding the foregoing, the City Council may, by ordinance, waive
the imposition of any fee imposed by the provisions of this Article for an
affordable housing project wholly or partially owned by a housing authority
formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City
Council, in its sole discretion, determines that:
(1) the affordable housing project is intended to house homeless or
disabled persons, as such terms are defined by the Department of Housing
and Urban Development, or households with an annual income that does
not exceed thirty (30) percent of the area median income for the applicable
household size in the Fort Collins-Loveland metropolitan statistical area,
as published by the Department of Housing and Urban Development; and
(2) the proposed waiver will not jeopardize the financial interests of
the City or the timely construction of the capital improvements to be
funded by the fees for which a waiver is sought.
Any waiver of fees hereunder must be applied for in accordance with City application
requirements prior to the City’s issuance of any certificates of occupancy for the project
that is the subject of the waiver request.
Section 5. That Section 10-28(h) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 10-28 Appeals/variance procedure.
…
(h) Notwithstanding the foregoing, the City Council may, by ordinance, waive
the imposition of any fee imposed by the provisions of this Article for an
affordable housing project wholly or partially owned by a housing authority
formed pursuant to the provisions of C.R.S. Section 29-4-101, et. seq, if the City
Council, in its sole discretion, determines that:
(1) the affordable housing project is intended to house homeless or
disabled persons, as such terms are defined by the Department of Housing
and Urban Development, or households with an annual income that does
not exceed thirty (30) percent of the area median income for the applicable
household size in the Fort Collins-Loveland metropolitan statistical area,
as published by the Department of Housing and Urban Development; and
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(2) the proposed waiver will not jeopardize the financial interests of
the City or the timely construction of the capital improvements to be
funded by the fees for which a waiver is sought.
Any waiver of fees hereunder must be applied for in accordance with City application
requirements prior to the City’s issuance of any certificates of occupancy for the project
that is the subject of the waiver request.
Section 6. That Section 2.2.3 (D)(3) of the Land Use Code of the City of Fort
Collins is hereby amended to read as follows:
Sec. 2.2.3 Step 3: Development Application Submittal
. . .
(D) Development Review Fees.
…
(3) Notwithstanding the foregoing, the City Council may, by ordinance, waive the
imposition of any fee imposed by the provisions of this Chapter for an affordable
housing project wholly or partially owned by a housing authority formed pursuant
to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its
sole discretion, determines that:
(a) the affordable housing project is intended to house homeless or disabled
persons, as such terms are defined by the Department of Housing and
Urban Development, or households with an annual income that does not
exceed thirty (30) percent of the area median income for the applicable
household size in the Fort Collins-Loveland metropolitan statistical area,
as published by the Department of Housing and Urban Development; and
(b) the proposed waiver, if approved by the City Council, will not jeopardize
the financial interests of the City.
Any waiver of fees hereunder must be applied for in accordance with City application
requirements prior to the City’s issuance of any certificates of occupancy for the project
that is the subject of the waiver request.
Section 7. That Section 2.13.3(E) of the Land Use Code of the City of Fort Collins is
hereby amended to read as follows:
2.13.3 Application
…
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(E) Notwithstanding the foregoing, the City Council may, by ordinance, waive the
imposition of any fee imposed by the provisions of this Chapter for an affordable
housing project wholly or partially owned by a housing authority formed pursuant
to the provisions of C.R.S. Section 29-4-101, et. seq, if the City Council, in its
sole discretion, determines that:
(1) the affordable housing project is intended to house homeless or disabled
persons, as such terms are defined by the Department of Housing and
Urban Development, or households with an annual income that does not
exceed thirty (30) percent of the area median income for the applicable
household size in the Fort Collins-Loveland metropolitan statistical area,
as published by the Department of Housing and Urban Development; and
(2) the proposed waiver, if approved by the City Council, will not jeopardize
the financial interests of the City or the timely construction of the capital
improvements to be funded by the fees for which a waiver is sought.
Any waiver of fees hereunder must be applied for in accordance with City application
requirements prior to the City’s issuance of any certificates of occupancy for the project
that is the subject of the waiver request.
Introduced, considered favorably on first reading, and ordered published this 7th day of
November, A.D. 2017, and to be presented for final passage on the 21st day of November, A.D.
2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 21st day of November, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk