HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2018 - SECOND READING OF ORDINANCE NO. 067, 2018, APPROVIAgenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY June 5, 2018
City Council
STAFF
Sue Beck-Ferkiss, Social Policy and Housing Programs
Ingrid Decker, Legal
SUBJECT
Second Reading of Ordinance No. 067, 2018, Approving the Waiver of Certain Fees for the Oakridge Crossing
Affordable Housing Project.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on May 15, 2018, authorizes an affordable housing fee
waiver request for Oakridge Crossing and a refund of waived fees already paid. Oakridge Crossing, LLLP has
requested that certain development and capital improvement expansion fees be waived for qualifying units at
Oakridge Crossing, an affordable senior community. 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. Oakridge Crossing LLLP is requesting fee waivers in the amount of
$90,923 for the 13 qualifying units at Oakridge Crossing. Council Finance Committee supports this request and
suggested using funds from the Affordable Housing Capital Fund in the Community Capital Improvement
Program fund for the refund.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, May 15, 2018 (w/o attachments) (PDF)
2. Ordinance No. 067, 2018 (PDF)
Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY May 15, 2018
City Council
STAFF
Sue Beck-Ferkiss, Social Sustainability Specialist
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 067, 2018, Approving the Waiver of Certain Fees for the Oakridge Crossing
Affordable Housing Project.
EXECUTIVE SUMMARY
The purpose of this item is to present an affordable housing fee waiver request for Oakridge Crossing and if
granted, authorizing a refund of waived fees already paid. Oakridge Crossing, LLLP has requested that certain
development and capital improvement expansion fees be waived for qualifying units at Oakridge Crossing, an
affordable senior community. 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. Oakridge Crossing LLLP is requesting fee waivers in the amount of $90,923 for the 13 qualifying units
at Oakridge Crossing. Council Finance Committee supports this request and suggested using funds from the
Affordable Housing Capital Fund in the Community Capital Improvement Program fund for the refund.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Oakridge Crossing LLLP is seeking the waiver of certain development and capital improvement expansion fees
for Oakridge Crossing, an affordable housing project as allowed by City Code and the Land Use Code. Oakridge
Crossing is currently under construction and will deliver 110 age-restricted income restricted units, of which 13
will be targeted to households making no more than 30% of the area median income (AMI). The request from
Oakridge Crossing LLLP is attached as Attachment 1.
Fee Waiver History
For many years, the City provided affordable housing fee waivers for some building permit fees, development
review fees and some capital expansion fees as an incentive to encourage the development of affordable
housing.
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 projects for which City fees should be waived.
This was after a large waiver was granted.
By adopting Ordinance No. 037, 2013, City Council limited eligibility of fee waivers to the local housing
authority and limited what types of units would qualify for fee waivers. Only 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 qualify.
Furthermore, waivers were made discretionary by City Council upon a determination that the proposed
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 2
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 policy was modified by City Council in 2017 so that any developer providing qualifying units is
eligible to seek discretionary fee waivers.
Current Request
Oakridge Crossing is a 110-unit affordable housing community being constructed at 4786 McMurry Avenue in
Fort Collins. (Attachment 2) The developer is Oakridge Crossing LLLP. Of the 110 total units, 13 units, equaling
11.8% of the total development, will be dedicated to households making no more than 30% AMI. Oakridge
Crossing LLLP is seeking the waiver of certain fees for those 13 qualifying units. The total fees for this $22 million
project are more than $1.7 million, and $770,538 of that amount are waiver eligible. The request is for waiver of
11.8% of eligible fees, which total $90,923. Of that amount, $79,913 are for capital expansion fees. In this case,
the request is to refund fees already fully paid. See figure below for breakdown of fees:
Fee Type Total Fees Collected 11.8% Waiver amount
Development Review Fees $43,053 $5,080
Building Fees $37,944 $4,477
Capital Expansion Fees $677,229 $79,913
Storm water Review Fee $12,312 $1,453
TOTAL $770,538 $90,923
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. (2018 income limits have not
been published yet). Households at this income level are some of the City’s most vulnerable residents. These
qualifying units at Oakridge Crossing fit the definition and are eligible for fee waivers as established by City
Code, and the Land Use Code.
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 110 units which is 59% 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. This project will house seniors, who are called out tin the Plan
as a special needs population.
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
Community Capital Improvements Plan. This fund will accumulate $4 million over ten years.
City Council has provided staff direction to use the Affordable Housing Capital Fund for reimbursement of fee
waivers and for a new Direct Subsidy program that will help finalize funding for projects that are close to ready
to proceed. $112,500 from this fund has been allocated to partially backfill fees waived for the Village on
Horsetooth development. The request for Oakridge Crossing is also shown in the chart below. In this case, a
refund is requested for all fees waived since all fees have been paid. The Council Finance Committee suggested
that the full refund be paid from the Affordable Housing Capital Fund, which is part of the Community Capital
Improvements Fund. See below for detailed fund information:
Agenda Item 8
Item # 8 Page 3
Year Anticipated tax amount Committed amounts Available to Commit*
2016 $200,000 0 $200,000
2017 $250,000 $112,500 $337,500
2018 $250,000 $90,923 $496,577
2019 $400,000 0 $896,577
2020 $400,000 0 $1,296,577
2021 $500,000 0 $1,796,577
2022 $500,000 0 $2,296,577
2023 $500,000 0 $2,796,577
2024 $500,000 0 $3,296,577
2025 $500,000 0 $3,796,577
*Note that if the City Council approves the Housing Authority’s request for $876,662 in AHCF funds (being
considered by separate resolution), these amounts will be lower after 2018.
CITY FINANCIAL IMPACTS
This Ordinance would approve the use of $90,923 already appropriated in the Affordable Housing Capital Fund
to be used to issue a refund of qualifying fees paid that have been waived through Council action.
BOARD / COMMISSION RECOMMENDATION
At its April 5, 2018 meeting, the Affordable Housing Board voted unanimously to recommend support for this
waiver request. (Attachment 3)
At its April 16, 2018 meeting, the Council Finance Committee supported granting this waiver request.
(Attachment 4)
PUBLIC OUTREACH
Both the Affordable Housing Board and Council Finance Committee meetings discussing this request were open
to the public. No additional outreach has been conducted specifically on this request.
ATTACHMENTS
1. Oakridge Fee Waiver Request (PDF)
2. Oakridge location map (PDF)
3. Affordable Housing Board minutes, April 5, 2018 (draft) (PDF)
4. Council Finance Committee minutes, April 16, 2018 (draft) (PDF)
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ORDINANCE NO. 067, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE WAIVER OF CERTAIN FEES FOR THE
OAKRIDGE CROSSING AFFORDABLE HOUSING PROJECT
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, which
made amendments to the City Code and Land Use Code limiting the types of projects for which
housing authorities 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, on November 21, 2017, the City Council adopted Ordinance No. 148, 2017
(the “2017 Ordinance”), which further amended the City Code and Land Use Code to create an
incentive for all developers to provide housing units affordable to those making less than 30% of
the area median income (AMI) by allowing all developers of units targeting that income bracket
to request fee waivers for the affordable portions of their projects; and
WHEREAS, the 2017 Ordinance states that the City Council can waive, by ordinance, fees
that would otherwise be imposed for an affordable housing project only if the City Council
determines that: (1) the 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 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
WHEREAS, Oakridge Crossing LLLP (“Oakridge”) is seeking the waiver of certain
development and capital improvement expansion fees for Oakridge Crossing, an affordable
housing project in Fort Collins that will include 110 age-restricted and income-restricted units, of
which 13 will be targeted to households making no more than 30% of AMI (the “Project”); and
WHEREAS, the City has established affordable housing production goals in the 2015-2019
Affordable Housing Strategic Plan (Plan) with an annual production goal for this five-year plan of
188 units; and
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WHEREAS, the Project will deliver 110 units, 59% of the City’s annual goal for new
affordable housing units; and
WHEREAS, 13 of the Project units (or 11% of the total development) will be dedicated to
households making no more than 30% of AMI; therefore, Oakridge is requesting waivers totaling
$90,923, which represents 11% of the total waivable Project fees based on the number of units
eligible for such fee waivers; and
WHEREAS, the Project fits the definition of a project eligible for fee waivers under the
City Code and Land Use Code as amended by the 2017 Ordinance; and
WHEREAS, City Finance staff has determined that waiver of these fees 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 the waiver is sought; and
WHEREAS, Oakridge has already paid the fees for the Project, and if the City Council
approves the waiver request City staff proposes using $90,923 already appropriated in the
Affordable Housing Capital Fund (AHCF) in the Community Capital Improvement Program
(CCIP) to issue a refund of such fees to Oakridge; and
WHEREAS, the voter-approved ballot language for the CCIP says the AHCF is to be used
to fund the capital costs of development or rehabilitation of one or more public or private housing
projects designated specifically for low-income individuals or families; and
WHEREAS, the Affordable Housing Board at its regular meeting on April 5, 2018, voted
to support this waiver request; and
WHEREAS, the Council Finance Committee at its regular meeting on April 16, 2018,
supported this waiver request and funding it through available funds in the Affordable Housing
Capital Fund.
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 contained in the recitals set forth above.
Section 2. That the City Council hereby finds that 11% of the Project is intended to
house households with an annual income that does not exceed 30% of the area median income for
the applicable household size in the Fort Collins-Loveland metropolitan statistical area, as
published by HUD.
Section 3. That the City Council further finds that the fee waiver requested by
Oakridge 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.
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Section 4. That the City Council hereby approves the waiver of $90,923 in fees that
were previously paid to the City for the Project, consisting of:
Development Review Fees $ 5,080
Building Fees 4,477
Capital Improvement Expansion Fees 79,913
Utilities - Stormwater Review Fee 1,453
Total $ 90,923
Section 5. That the City Council hereby finds that the Project meets the requirements
for funding from the Affordable Housing Capital Fund and directs that Oakridge be reimbursed
for the fees described above from funds available in the Affordable Housing Capital Fund.
Introduced, considered favorably on first reading, and ordered published this 15th day of
May, A.D. 2018, and to be presented for final passage on the 5th day of June, A.D. 2018.
__________________________________
Mayor Pro Tem
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 5th day of June, A.D. 2018.
__________________________________
Mayor Pro Tem
ATTEST:
_______________________________
City Clerk