HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/16/2019 - FIRST READING OF ORDINANCE NO. 096, 2019, APPROVINAgenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY July 16, 2019
City Council
STAFF
Sue Beck-Ferkiss, Social Policy and Housing Program Manager
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 096, 2019, Approving the Waiver of Certain Fees for the Mason Place
Affordable Housing Project.
EXECUTIVE SUMMARY
The purpose of this item is to present Housing Catalyst's request for affordable housing fee waivers for the
Mason Place permanent supportive housing project under development at 3750 South Mason Street, currently
the site of the Midtown Arts Center. All 60 units of this project target residents making no more than 30% area
median income (AMI) and therefore qualify for discretionary fee waivers. The request is to approve the waiver
of 100% of the waivable fees up to the amount of $330,000.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The Fort Collins Housing Authority, doing business as Housing Catalyst (HC), is a Fort Collins, mission-driven
real estate developer that designs, builds and serves affordable communities in Northern Colorado. HC owns
and operates a variety of properties located throughout Fort Collins and serves over 2,200 households in need
of affordable housing. HC also manages the affordable housing properties owned by Villages, Ltd. HC is an
experienced developer and property manager with a good history of running quality developments in Fort
Collins.
HC is seeking affordable housing fee waivers of certain development and capital improvement expansion fees
for Mason Place, an affordable housing project, as allowed by City Code and the Land Use Code. Mason
Place is currently under development and will deliver 60 income restricted units, all of which will be targeted to
households making no more than 30% of the area median income (AMI). The request from HC is provided as
Attachment 1. HC has been awarded competitive 9% low income housing tax credits for the funding of this
development. While HC will be the ultimate owner of the building, it is being developed by Housing Catalyst
LLC and any fee waiver granted would be to Mason Place LLLP, which is the ownership entity for the tax credit
partnership.
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.
• Prior to 2013, these fee waivers were for improvements or repairs and the amounts were small. City policy
was changed after a new construction project received an affordable housing fee waiver of over $500,000.
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• 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.
• By adopting Ordinance No. 37, 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 target homeless or
disabled persons, or for households whose income is no greater than 30% of the area median income
(AMI) qualify.
• Furthermore, waivers were made discretionary by 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.
• In 2017, this policy was broadened by City Council to allow any developer, not only the housing authority,
providing qualifying units to be eligible to seek discretionary fee waivers.
• Staff has been working on improving the processing of requests for fee waivers. In addition to working
closely with applicant developers to confirm fee amounts, the process was modified to provide two
approval options.
o If the developer needs the certainty that the discretionary fee waiver will be approved by City Council
early in the development process, they may apply for approval of the percentage of eligible units even
before the fee amounts are finalized.
o Alternatively, if the waiver request is processed when fee amounts are final, the waiver approval can
be for both the percentage of qualifying units and the fee waiver amount.
• This process improvement allows the applicant to decide on the timing of the fee waiver request. This only
makes a difference in how the City handles the reimbursement or “backfill” to City departments of capital
expansion fees, and appropriations. When the Council is asked to approve a fee waiver after the fee
amounts are finalized, the fee waiver ordinance will contain an appropriation for backfilling waiving fees.
When a fee waiver ordinance only approves the percentage of fees to be waived, a separate Council
appropriation at a later date will be required for reimbursements.
Current Request
Mason Place is a 60-unit affordable housing community being developed at 3750 South Mason Street in Fort
Collins. (Attachment 2)
Mason Place will be a permanent supportive housing (PSH) development. The total development of 60 units
will be dedicated to households making no more than 30% AMI. This will be a community where people can
live for an unlimited term and be provided on-site supportive services to help them achieve and sustain
housing stability. This is a best practice for housing persons experiencing chronic homelessness, most of
whom have disabilities too. This target population qualifies for affordable housing fee waivers from the City
pursuant to City Code and the Land Use Code.
Because Mason Place will house the lowest income category, rents collected will mostly be used for operation
and maintenance of the facility. Very little income will be available to manage debt on a development of this
kind. Therefore, it is important to have as much up-front subsidy as possible in constructing this type of
development project. The City has committed Affordable Housing Capital Fund funds of almost $900,000 as
direct capital assistance as well as Competitive Process funds in excess of $1.1 million to this project. This
project has been awarded highly competitive 9% Low Income Housing Tax Credits from the Colorado Housing
and Finance Authority.
HC is seeking the waiver of certain fees for those 60 qualifying units. The total fees for this $18.7 million
development project are estimated to be in excess of $686,000. The request is for 100% of eligible fees, about
$325,000 (currently calculated at $324,714, Attachment 3), to be waived. Of that amount, about $264,000
(currently calculated at $263,244) are for capital expansion fees which the City has traditionally reimbursed.
The fees for this project are not as high as new construction because it is adaptive reuse, so some fees have
been previously collected for this location and are credited to the project. Because the plans for this
development could still change slightly, HC has requested that Council approve the percentage to be waived at
this time. The fee amounts are not expected to change significantly, but by approving the percentage, more
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time is provided to finalize the fee amounts. The request is seeking approval of 100% of the waivable fees for
the Mason Place project, not to exceed $330,000.
Assuming a fee waiver of no more than $330,000, see below for the City’s total investment in Mason Place, as
well as a comparison to other waiver approved projects. The number of qualifying units is shown first with total
units second after the project’s name. For example, 60 units qualify at Mason Place out of a total of 60 units
(60:60). These projects all have 30% AMI targeted units but serve different demographics. Both Mason Place
and Redtail Ponds are PSH. Oakridge Crossing serves income qualified seniors. The Village on Redwood and
the Village on Horsetooth serve a range of household sizes and ages.
Project Total City
Investment
Total Development
costs
% City
Support
Total Waiver Amount Waiver
per
qualifying
unit
Mason Place (60:60) $2,330,000 $18.7 M 12% $330,000 $5,500
Redtail Ponds (40:60) $1,702,262 $12.5 M 14% $288,000 $7,200
Village on Redwood
(13:72)
$2,858,182 $19.4 M 15% $100,708 $7,747
Village on Horsetooth
(43:96)
$1,711,019 $26.5 M 6% $352,319 $8,193
Oakridge Crossing
(13:110)
$90,923 $22 M .4% $90,923 $6,994
The 2019 income limits published by the U. S. Department of Housing and Urban Development for 30% of the
Fort Collins AMI is $18,350 for a household of 1 and $20,950 for a household of 2. The units at Mason Place
will be primarily one-bedroom units with a few two-bedroom units. Households at this income level are some of
the City’s most vulnerable residents. Most of the residents will be escaping homelessness and have
disabilities.
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 the current 5-year plan is 188 units. This project will deliver 60 units which is 32% of the
City’s current annual goal. Since the City does not develop housing, development partners are relied upon to
bring this necessary housing products to the community. This project will increase the inventory of affordable
rental units and is targeting housing with supportive services for special needs populations, which are two of
the strategies listed in the Plan.
As stated earlier, the City has historically used unrestricted funds to reimburse the appropriate fee funds for
any capital expansion fees waived. For Mason Place, the waived capital expansion fees will be about
$264,000. Traditionally the reimbursement of capital expansion fees has come from General Fund reserves.
Funds from the Affordable Housing Capital Fund (AHCF) that was approved by the voters as part of the City
Capital Improvements Program have also been used to partially match the general fund reserves to reimburse
waived capital expansion fees. This fund will accumulate $4 million over ten years. While most of the current
balance in the AHCF is already committed to this project, $100,00 was withheld for the purpose of matching
general fund reserves for the purpose of fee waiver reimbursements. This project is the first to seek fee
waivers this year.
CITY FINANCIAL IMPACTS
If the fee waivers are granted, the City will forgo the amount of the waived fees not to exceed $330,00 and will
reimburse the appropriate fee funds for Capital Expansion Fees of about $264,000. The Council Finance
Committee recommends that $100,000 be used from the AHCF for this reimbursement and that the balance be
paid from General Fund reserves. The City Council will be asked to approve an appropriation at a later date.
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BOARD / COMMISSION RECOMMENDATION
At it’s June 6, 2019 meeting the Affordable Housing Board voted to support this waiver request. (Attachment
4)
At it’s June 19, 2019 meeting the Council Finance Committee supported granting the waiver request.
(Attachment 5)
PUBLIC OUTREACH
While extensive public outreach was done on the issue of waivers for the City’s Housing Affordability Policy
Study, the Affordable Housing Strategic Plan, and the expansion of eligibility to all developers producing units
targeting households with incomes no more than 30% AMI, outreach beyond the Affordable Housing Board
meeting and the Council Finance Committee meeting has not been conducted specifically on this request.
ATTACHMENTS
1. Housing Catalyst Fee Waiver Request for Mason Place (PDF)
2. Mason Place Location Map (PDF)
3. Mason Place Fee Sheet (PDF)
4. Affordable Housing Board Minutes June 6, 2019 (PDF)
5. Council Finance Committee Minutes June 17, 2019 (Draft) (PDF)
May 15, 2019
Sue Beck-Ferkiss, Social Sustainability Specialist
Office of Social Sustainability
City of Fort Collins
22 Laporte Avenue
Fort Collins, CO 80521
Re: Mason Place Permanent Supportive Housing Development Fee Waivers
Dear Mrs. Beck-Ferkiss,
As a result of the ongoing collaboration between Housing Catalyst and the City of
Fort Collins to estimate fees and waiver amounts for our Mason Place
Permanent Supportive Housing project, I am writing to formally request fee
waivers for the above referenced project under the City of Fort Collins City
Council Ordinance: No. 037, 2013 and the associated intergovernmental
agreement.
The total anticipated fees are estimated at $656,000. The anticipated fee waiver
amount is estimated at $300,000, with 100% of the 60 units eligible for waiver.
To assist in this fee waiver and reimbursement request, I have enclosed the
following information:
1. Schedule of units at Mason Place that will be at or below 30% of the Fort
Collins/Loveland adjusted median income (60 units).
2. Mason Place Development timeline.
Thank you for your time and attention to this request. Please contact me if you
require additional information.
Sincerely,
Julie J. Brewen
Executive Director
ATTACHMENT 1
Mason Place Project Overview
Mason Place will be located at 3750 S. Mason St in Fort Collins, at the current
site of the Midtown Arts Center. Based on the Housing First, Harm Reduction
and Trauma Informed Care models, Mason Place will provide affordable housing
and onsite services to people with special needs who are experiencing
homelessness, including homeless veterans. This permanent supportive housing
community will have 60 new units of housing for homeless individuals at or
below 30% of the Fort Collins/Loveland adjusted median income.
Target Population
Number of Units Area Median Income
60 units 0-30% AMI
60 units total
Mason Place Development Timeline
Low Income Housing Tax Credit (LIHTC) Award – August 2018
Project Development Plan Approval – June 2018
Building Permit submitted to City of Fort Collins – May 31, 2019
LIHTC Partnership Closing – September 2019
Construction Start – September 2019
Fee Waiver Request – May 2019
Deferred Fees Due – December 1, 2019
Construction Complete – October 2020
Lease-up Complete – April 2021
Construction – Permanent Loan Conversion – August 2021
ATTACHMENT 2
City Fees for Mason Place ATTACHMENT 3
AFFORDABLE HOUSING BOARD
REGULAR MEETING
6/6/2019 – MINUTES Page 2
Comments/Q&A:
• Rachel: What is backfill?
o Sue: In Fort Collins, because of the TABOR (Taxpayer Bill of Rights)
amendment, our attorneys are concerned about absorbing funds without
reimbursement, especially of capital expansion fees. We tell developers they
don’t have to pay, and we typically pull from general fund reserves to pay those
fees.
• Diane: What is the total cost of the development?
o Sue: $18.7 million
• Sue: I would like to ask the board if you’d like to make a recommendation about this
request.
Diane made a motion to support the fee waiver request for Mason Place.
Catherine seconded. Approved 5-0.
ATTACHMENT 4
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
06/17/19
10 am - noon
CIC Room - City Hall
Council Attendees: Mayor Wade Troxell, Ross Cunniff, Ken Summers
Staff: Darin Atteberry, Kelly DiMartino, Mike Beckstead, Travis Storin, John Voss, Jackie Thiel,
Kevin Gertig, Lance Smith, Don Klingler, Noelle Currell, Sue Beck-Ferkiss, Kristin
Fritz,John Duval, Tyler Marr, Jo Cech, Katie Ricketts, Zach Mozer, Carolyn Koontz, Bob
Adams, Marc Rademacher
Others: Kevin Jones, Chamber of Commerce
______________________________________________________________________________
Meeting called to order at 10:09 am
Approval of Minutes from the May 20, 2019 Council Finance Committee Meeting. Ken Summers moved for approval
of the minutes as presented. Mayor Troxell seconded the motion. Minutes were approved unanimously.
A. Mason Place Affordable Housing Fee Waivers
Noelle Currell, Manager, FP&A
Sue Beck-Ferkiss, Social Policy and Housing Programs Manager
SUBJECT FOR DISCUSSION
Affordable Housing Fee Waiver Request for Mason Place, a permanent supportive housing community.
EXECUTIVE SUMMARY
Housing Catalyst (HC), formerly known as the Fort Collins Housing Authority, has requested that certain
development and capital improvement expansion fees be waived for all 60 qualifying units at Mason Place. 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 approximate amount of $325,000 for the 60 qualifying units at Mason Place.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does the Council Finance Committee (CFC) support granting the fee waiver request?
2. If CFC desires the Capital Expansion Fees to be backfilled, should this funding come from General Fund
Reserves only, or from both General Fund Reserves and the Affordable Housing Capital Fund?
ATTACHMENT 5
2
BACKGROUND/DISCUSSION
HC is seeking the waiver of certain development and capital improvement expansion fees for Mason Place, an
affordable housing project as allowed by City Code and the Land Use Code. Mason Place is currently under
development and will deliver 60 income restricted units, all of which 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. While HC
will be the ultimate owner of the building, it is being developed by Housing Catalyst LLC and any fee waiver
granted would be to Mason Place LLLP, which is the ownership entity for the tax credit partnership.
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. 37, 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
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 changed by City Council in 2017 so that any developer providing qualifying units is eligible to
seek discretionary fee waivers.
• Staff has been working on improving the method of processing requests for fee waivers. In addition to
working with the applicant to confirm fee amounts, the process allows for the percentage of eligible units to
be approved even before the fee amounts are finalized. However, if the waiver request is processed when
fee amounts are final, the waiver approval can be for both the percentage of qualifying units and the fee
amount. The process allows the applicant to decide on the timing of the fee waiver request. This only makes
a difference in how the City handles the reimbursement of capital expansion fees and does not influence the
project being constructed.
Current Request:
Mason Place is a 60-unit affordable housing community being constructed at 3750 South Mason Street in Fort
Collins. See attachment 2 for map of location. The developer is HC. The total development of 60 units, will be
dedicated to households making no more than 30% AMI. This will be a permanent supportive housing
development where people can live for an unlimited term and be provided on site supportive services to help
tenants achieve and sustain housing stability. This is a best practice for housing persons experiencing chronic
homelessness, most of whom have disabilities too.
HC is seeking the waiver of certain fees for those 60 qualifying units. The total fees for this $18.7 million
development project are estimated to be in excess of $656,000. The request is for 100% of eligible fees, about
$325,000 (currently calculated at $324,714), to be waived. Of that amount, about $264,000 (currently calculated
at $263,244) are for capital expansion fees which the City has traditionally reimbursed. This project is adaptive
reuse and not new construction, so the fees are offset with fees previously collected for this location and are
therefore not as high as a new construction project would be. Because the plans for this development could still
3
change slightly, HC has requested that Council approve the percentage to be waived at this time. The fee
amounts are not expected to change significantly, but by approving the percentage, more time is provided to
finalize the fee amounts.
The 2019 income limits published by the U. S. Department of Housing and Urban Development for 30% of the
Fort Collins AMI is $18,350 for a household of 1 and $20,950 for a household of 2. The units at Mason Place will
be primarily one-bedroom units with a few two-bedroom units. Households at this income level are some of the
City’s most vulnerable residents. Most of the residents will be escaping homelessness and have disabilities. All
units at Mason Place 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 the current 5-year plan is 188 units. This project will deliver 60 units which is 32% of the City’s current
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
and is targeting special needs populations - which are two 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. While most of the current balance
in this fund is already committed to this project, $100,00 was withheld for the purpose of matching general fund
reserves for fee waiver backfill. This project is the first to seek fee waivers this year.
Board and staff support:
• 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 78% of their income to pay the average
rent. 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.
Next Steps
• This request is ready to be presented to Council after this committee’s review.
DISCUSSION / NEXT STEPS:
$686k is the total
Total waivable fees $325k - we may ask for $330k to make sure we have some flexibility
Through 2018 we appropriated $700K through the CCIP dedicated support
$500K of that is still unspent and that amount will be dedicated to this project.
In 2019 we appropriated $400K from the CCIP will go to this project as well
All total - just over $1M of support from the City for this project
Fee waivers as investment
4
Direct subsidy – retain no more than 25% of any fund for backfill
We are requesting that you approve the waiver of 100% of waivable fees
The estimate today is $325K = Could be a bit of movement $330K is the ask - Affordable Housing Board has
approved this request.
Ken Summers; review the support categories
Total of $1M City support
Fee Waivers = $325k
$900K coming from affordable housing capital fund
Total is $1.2M between two awards
Competitive process – annual competition for CDBG home funds
Darin Atteberry; the most important information is the cumulative ask - not just the one time ask
$1.3 - 1 .5M is the actual total - Council doesn’t remember all of these different pieces from 2017
Ken Summers; CDBG allocations we approved - this request is for fee waiver
Outside of what is available through Housing Catalyst - How does that work? Being ask for fee waiver
Sue Beck-Ferkiss; in 2018 Affordable Housing Funds were committee to Housing Catalyst
CDBG funds were from 2018 as well and have been approved by Council
A lot of projects quality for the competitive process and could quality for the capital
Only projects that target 30% AMI or less are eligible for waivers - lowest wage earner units which don’t spin off
rent income so more $$ are required – more subsidy on the front end. Providing permanent support housing
Kristin Fritz; Housing Catalyst
$876k Committee
$1.1M competitive
Total commitment is almost $2M before before the fee waivers
Mayor Troxell; the project is $18.7M - How is this going to be financed?
Kristin Fritz; this is a competitive tax credit project = awarded tax credits on its first round
City funding commitment was prior to the tax credit commitment
Whether or not we received federal low income tax credit
We received state money from Colorado Division of Housing
Lender – all of the financing is fully awarded – underwriting due diligence is in progress and we are set to close
On September 2nd - working its way through - fully funded – completely penciled out
It is typical with the City funding process – that after an award is made we still need to go obtain the remaining
pieces and then go through a contracting process
Mayor Troxell; Will the $18.7M will hold?
Kristin Fritz; Yes, that is the number - we are committed to that number and under contract
5
Some of that background info -overall investment - Hard complete wrap around services
0-30% AMI - tough crowd
Ross Cunniff; I sit on the housing Catalyst Board - I do support taking the waivable fees out of the General Fund
other than out of the Capital Expansion Fees
Mike Beckstead; for clarification - shared or 100% out of the General Fund
Ross Cunniff; 100% out of the General Fund
Sue Beck-Ferkiss; would it all come from the General Fund reserve or should we use the money ($100K) we set
aside?
Ken Summers; use the money we set aside first then the remainder from the General Fund
Mike Beckstead; I put the fees into 3 categories
1) Utility TIFS not being waived
2) Development Fees - waiver is requested – not backfilled
3) Capital Expansion Fees - $264K which would get backfilled
Ross Cunniff; trying to make the Development Review Fees like a dedicated fund – so that is the only thing they
are used for is development review – I would prefer it be portrayed as coming from General Fund reserves
ACTION ITEM:
In the future, I would like to find a structured way we can call these pre application proposed rebates - other
than a waiver - with Housing Catalyst that could cause some financial stress
Source of funding available for projects that pre quality – pre development -Contingent on it actually being built
Being deliberate about setting aside money for these affordable housing purposes and not making it look like we
are playing some kind of shell game.
Council Finance Committee (Mayor Troxell, Ken Summers and Ross Cunniff) unamiously recommended that this
go forward to the full Council
ACTION ITEM: Darin Atteberry; 10% City participation - to Mike – please work with Jackie and Sue - it would be
good to see where those trends are; trending up? trending down? What have we done in prior projects? A
macro perspective. I agree with what Wade and Ross both said, this is a great project that will help with some
serious needs. The complete stack is always important for Council
Mike Beckstead; We will make sure both the complete stack and trends are included in the Council materials.
Ken Summers; what is rate contribution for residents? Do they pay on a sliding scale?
Sue Beck-Ferkiss; housing choice vouchers that are connected to these units - residents pay 30% of their income
and the government pays the rest up to the fair market standard.
-1-
ORDINANCE NO. 096, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE WAIVER OF CERTAIN FEES FOR THE
MASON PLACE 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,
making 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, the Fort Collins Housing Authority, doing business as Housing Catalyst
(“HC”) is seeking the waiver of certain development and capital improvement expansion fees for
Mason Place, an affordable housing project in Fort Collins that will provide 60 income-restricted
units, all 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 with an annual production goal for this five-year plan of
188 units; and
-2-
WHEREAS, the Project will deliver 60 units, 32% of the City’s current annual goal for
new affordable housing units; and
WHEREAS, 100% of the Project units will be dedicated to households making no more
than 30% of AMI; therefore, HC is requesting waivers for 100% of the total waivable Project
fees based on the number of units eligible for such fee waivers; and
WHEREAS, the total fees for the Project are currently estimated at $324,714, but this
amount could change as the Project plans are finalized, so HC is asking that the City Council
approve a waiver of 100% of the waivable fees for the Project but not to exceed $330,000; 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, the Affordable Housing Board at its regular meeting on June 6, 2019, voted
to support this waiver request; and
WHEREAS, the Council Finance Committee at its regular meeting on June 17, 2019,
supported this waiver request.
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 100% 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 HC
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.
Section 4. That the City Council hereby approves the waiver of eligible fees for the
Project in an amount not to exceed $330,000, currently calculated as follows:
Development Review Fees $ 28,693
Building Fees 31,977
Capital Improvement Expansion Fees 264,044
-3-
Total: $ 324,714
Section 5. That the City Council hereby directs the City Manager, once the Project
fees are finalized, to bring forward an ordinance appropriating funds to reimburse the appropriate
funds for the fees waived by this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 16th
day of July, A.D. 2019, and to be presented for final passage on the 20th day of August, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 20th day of August, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk