HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/02/2019 - RESOLUTION 2019-003 APPROVING A WAIVER OF THE 2017Agenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY January 2, 2019
City Council
STAFF
Wendy Bricher, Financial Coordinator
Beth Sowder, Director of Social Sustainability
Ingrid Decker, Legal
SUBJECT
Resolution 2019-003 Approving a Waiver of the 2017 PILOT for Housing Catalyst.
EXECUTIVE SUMMARY
The purpose of this item is to approve a waiver of the 2017 PILOT of $9,638 for Housing Catalyst per the 1971
Cooperative Agreement.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
Public housing authorities are formed by the local governing body under State of Colorado enabling legislation.
The Fort Collins Housing Authority (FCHA), now called Housing Catalyst, was formed by the Fort Collins City
Council on May 20, 1971.
The Federal Department of Housing and Urban Development (HUD) requires a public housing authority to
submit to HUD for approval a Cooperation Agreement between the housing authority and the local government
before the housing authority can submit an application for a public housing project. HUD’s standard form of
Cooperation Agreement must be used unless modifications are approved to comply with state or local
requirements. The Payment In Lieu of Taxes (PILOT) is covered in Section 3 (a) of the Cooperation
Agreement form.
On December 16, 1971, to meet this requirement, the City and FCHA entered into a Cooperation Agreement,
which provided that FCHA must make annual PILOT payments to the City for the public services and facilities
furnished by the City. The PILOT applies only to those properties specifically funded by the HUD “Public
Housing” program. The computation of the PILOT is done on form HUD-52267 and is calculated using the
total tenant revenue, less utility expenses for those units. A copy of the 1971 Cooperation Agreement, as
amended in 1986, is included as Attachment 2.
In 1986, upon request of FCHA, the City Council adopted Resolution 1986-177 which relieved FCHA of its
obligation to make the PILOT payments. Based on that resolution, FCHA did not make PILOT payments from
1987 through 1990. The City also refunded FCHA’s PILOT payments for the years 1984, 1985 and 1986.
In 1992, the City Council adopted Resolution 1992-093, repealing Resolution 1986-177 and reinstating the
requirement that FCHA pay the annual PILOT payment. The change was made to assure compliance with
HUD regulations. Since that time, the City has returned the annual PILOT payments to FCHA at its request. In
recent years, Congressional appropriations have been at 80% of the HUD operating subsidy for Public
Agenda Item 7
Item # 7 Page 2
Housing units, and the PILOT refund helps make up for Congressional underfunding of operations and
services to these units.
Staff recommends that the 2017 PILOT payments of $9,638 waiver be approved for Housing Catalyst. As a
condition of the waiver, the City will require Housing Catalyst to sign a letter agreement obligating it to use the
funds for creating or maintaining affordable housing in a manner consistent with HUD guidelines.
CITY FINANCIAL IMPACTS
None.
ATTACHMENTS
1. PILOT Request Letter (PDF)
2. 1971 HUD Agreement (PDF)
ATTACHMENT 1
ATTACHMENT 2
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RESOLUTION 2019-003
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING A WAIVER OF THE 2017 PILOT FOR HOUSING CATALYST
WHEREAS, on December 16, 1971, the City and the Fort Collins Housing Authority,
now called Housing Catalyst, (the “Authority”) entered into a Cooperation Agreement (the
“Agreement”) to comply with the requirements of a public housing program financed by the
federal Department of Housing and Urban Development (“HUD”); and
WHEREAS, the Agreement requires the Authority to make an annual payment in lieu of
taxes (“PILOT”) to the City for the public services and facilities provided by the City to
Authority housing projects; and
WHEREAS, since at least 1992, the City has remitted such PILOT payments to the
Authority to help fund affordable housing-related activities and meet the needs of low-income
Fort Collins residents; and
WHEREAS, the Authority is scheduled to make a PILOT payment for 2017 of $9,638;
and
WHEREAS, this year, rather than having the Authority pay the PILOT funds to the City
and then ask the City Council to appropriate the funds for repayment to the Authority as in past
years, City staff is recommending that the Council simply waive the requirement that the
Authority pay the PILOT funds, simplifying the process; and
WHEREAS, the parties to a contract can agree to waive an obligation required of a party
to such contract; and
WHEREAS, as a condition of agreeing to such waiver, the City will require the Authority
to sign a letter agreement obligating the Authority to spend the funds for creating or maintaining
affordable housing in a manner consistent with HUD guidelines.
NOW, THEREFORE, BE IT RESOLVED 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 contained in the recitals set forth above.
Section 2. That the City Council hereby waives the Authority’s obligation to make a
PILOT payment for 2017 only pursuant to the 1971 Cooperation Agreement on the condition
that the Authority spend such funds for affordable housing and related activities for Fort Collins
residents consistent with HUD guidelines.
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Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
2nd day of January, A.D. 2019.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk