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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/15/2018 - RESOLUTION 2018-052 AUTHORIZING THE EXECUTION OF AAgenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY May 15, 2018 City Council STAFF Beth Sowder, Director of Social Sustainability Jackie Kozak-Thiel, Chief Sustainability Officer Ingrid Decker, Legal SUBJECT Resolution 2018-052 Authorizing the Execution of a Funding Agreement Between the City and the Housing Authority for a Loan of Funds from the Affordable Housing Capital Fund for Mason Place. EXECUTIVE SUMMARY The purpose of this item is to consider a resolution authorizing the execution of a funding agreement between the City of Fort Collins and Fort Collins Housing Authority (doing business as Housing Catalyst) for a loan of funds from the Affordable Housing Capital Fund (specific fund within the Community Capital Improvement Program) for the construction of Mason Place, a permanent supportive housing development. The funding amount requested is $876,662, to assist with the remaining funding gap prior to application for Low Income Housing Tax Credits which, along with mortgage debt, will provide the majority of the funding needed for the project. The proposed agreement will be subject to future appropriation by the City Council. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Over the past several years, housing attainment and affordability has been a key issue in City Plan as well as a primary issue identified by residents in the Community Survey. Additionally, the City’s Strategic Plan includes an initiative focused on improving access to quality housing that is affordable to a broad range of housing types. The Affordable Housing Strategic Plan speaks directly to the use of the Affordable Housing Capital Fund (AHCF) as a way to invest in needed housing projects, and permanent supportive housing for extremely low-income (0- 30% Area Median Income) are projects especially in need of direct subsidy. Increasing the number of permanent supportive housing units and progressing toward making homelessness rare, short-lived, and non-recurring are City priorities. The most recent Housing First Initiative (HFI) quarterly report data indicates that approximately 320 people in our community are chronically homeless. Permanent supportive housing would likely be appropriate housing for these individuals. The voter-approved Community Capital Improvement Program includes a specific Affordable Housing Capital Fund which will accrue a total of $4M over ten-years. The ballot language states it 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. This is a new source of funding that has not been available for new projects yet. At the Council work session in January, Council was open to utilizing this fund for different potential options including fee waiver backfill and direct subsidy. This request would be a direct subsidy. Housing Catalyst is in the pre-development phase of the newest permanent supportive housing development called Mason Place which will be similar in size and programming to Redtail Ponds. Redtail Ponds was the first permanent supportive development in Fort Collins also developed by Housing Catalyst which has earned Agenda Item 16 Item # 16 Page 2 national recognition for both programming and design. Housing Catalyst owns the property and work is well underway with the architect, engineers, general contractor, and other design and energy sustainability professionals. Mason Place will:  Provide 60 new apartments for homeless individuals with a disability, including veterans  Provide on-site supportive services based on Housing First, Harm Reduction, and Trauma Informed Care models  Assist people earning extremely low-incomes (0-30% Area Median Income)  Utilize Veteran Administration Supportive Housing (VASH) vouchers and Housing Catalyst Project Based Vouchers  Serve difficult and hard to reach populations The primary financing mechanism is the competitive federal Low-Income Housing Tax Credit (LIHTC) program. Timing is essential because the application for tax credits is due to the Colorado Housing Finance Authority by June 1, 2018. The application will need to show all funding sources committed - including local Community Development Block Grant (CDBG)/HOME/Affordable Housing Fund, Colorado Division of Housing, mortgage lender, developer, and other partners. Last month, the CDBG Commission conducted the competitive funding process for local CDBG, HOME, Affordable Housing Fund, and Human Service Program funding. With several solid requests totaling more than the available funding, the CDBG Commission recommended funding Mason Place at $1,123,388 ($2M requested). In order to fill the funding gap, Housing Catalyst is asking the City to utilize the Affordable Housing Capital Fund for the remaining $876,662.* (Attachment 1) The attached funding sources table (Attachment 2) shows the funding contributions from City, State, and Housing Catalyst and highlights the funding gap. *The amount recommended for funding by the CDBG Commission was revised after receiving the HUD allocation amount which was higher than anticipated. Therefore, the amount being requested has been reduced from the original request letter. To fulfill this request, the City Council would need to authorize the City Manager to enter into a funding agreement between the City and Housing Catalyst that would provide $876,662 to Housing Catalyst over the next three years (2018, 2019, 2020) from the Affordable Housing Capital Fund. (Attachment 3) This funding agreement would be:  Conditional on Housing Catalyst receiving 2018 LIHTC grant award  For the development of Mason Place, a permanent supportive housing development  Providing funds as a “due-on-sale” loan to ensure the project remains as affordable housing (would only need to be repaid if/when the development was sold)  Funds for 2019 and 2020 would be conditioned on the City receiving and appropriating the funds. CITY FINANCIAL IMPACTS This funding would come directly from the CCIP Affordable Housing Capital Fund, leaving an estimated $2.8M in the fund which will accrue in future years and could be used for additional projects. BOARD / COMMISSION RECOMMENDATION At its May 3, 2018 meeting, the Affordable Housing Board voted to support the staff recommendation to provide funding from the Affordable Housing Capital fund to the Mason Place development. (Attachment 4) Housing Catalyst’s need for this funding was realized after only partial funding for the Mason Place project was recommended through the City’s competitive funding process (leaving the gap of $876,662). The deadline for the Low-Income Housing Tax Credits application is June 1, 2018, so this will need to go to City Council at the Agenda Item 16 Item # 16 Page 3 May 15 meeting in order to make the deadline which did not allow enough time for this request to be considered by the Council Finance Committee. PUBLIC OUTREACH A neighborhood meeting was held April 9, 2018 at the Foothills Assembly of God Church with 24 people in attendance. City staff did a short presentation, introducing the project and describing the development review process. The applicant, Housing Catalyst, gave a short description of the project, the population it will serve, and their history in the Fort Collins community. With open house stations staffed with Housing Catalyst and design team members, community members were given the chance to interact and ask questions directly to the project team members who responded and recorded everything in written form. Housing Catalyst provided written responses to all public comments received at the April 9 meeting. Staff at Housing Catalyst reached out to a dozen individual business owners in the month preceding the neighborhood meeting. This outreach included one-on-one meetings and telephone conversations to describe the development, answer questions, and take note of any concerns. Housing Catalyst staff also met with an owner representative from the Safeway shopping center north of the development, who then took public outreach materials to the group of business owners within that shopping center. Additionally, staff followed up with individuals from the Troutman Park neighborhood who expressed concerns and questions about Mason Place following the neighborhood meeting. They also met with Dr. Gile, Lopez Elementary School’s principal, to provide information and address her questions so she can share that information with the school staff and parents. ATTACHMENTS 1. Mason Place Funding Request Letter from Housing Catalyst (PDF) 2. Mason Place Funding Sources Table (PDF) 3. Draft Housing Catalyst Mason Place AHCF Funding Agreement (DOCX) 4. Affordable Housing Board minutes May 3, 2018 (DOCX) 5. PowerPoint Presentation (PDF) April 17, 2018 Ms. Jaqueline Kozak-Thiel Chief Sustainability Officer City of Fort Collins 222 LaPorte Avenue Fort Collins, CO 80521 Dear Jackie, Housing Catalyst is in the pre-development and finance layering phase of our community’s newest permanent supportive housing development. Building on the success of the nationally recognized Redtail Ponds permanent supportive housing, Mason Place will be similar in size and programming. It will add 60 new affordable apartments to our community, plus on-site services for people who have experienced homelessness and who are extremely low-income (0-30% Area Median Income). The primary financing mechanism is the competitive federal Low Income Housing Tax Credit (LIHTC) program. This project meets the Affordable Housing Strategic Plan goals as well as City Strategic Initiatives. The Mason Place application for tax credits is due to the Colorado Housing Finance Authority by June 1, 2018. This is a highly competitive process with many strong projects in the pipeline. The Housing Catalyst LIHTC application will need to show all funding sources committed. The LIHTC program is one of the only tools for development of new affordable housing. It is complex and requires funding commitments in the form of local CDBG/HOME/AHF, the Colorado Division of Housing, mortgage lender, developer and other partners. Permanent supportive housing in particular requires a great deal of partner participation and local community support. We are grateful to the CDBG Commission for its recent recommendation for funding in the amount of $920,000 for Mason Place. We know that increasing the number of permanent supportive housing apartments and making progress toward making homelessness rare, short lived and non-recurring is a City priority. Housing Catalyst applied for $2 million of the $3.7 million available this round. In order to fill the final funding gap, we now respectfully request that the City Council activate the Affordable Housing Capital Fund by committing $1,080,000. This fits well with the ballot language that states that it 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. We would need a commitment letter for the June 1st tax credit application, but we would not need the funds contracted until closing the tax credit partnership in Fall 2019. There are also some mechanisms that would allow for us to borrow funds from one of our lenders with the future commitment of these dollars. The attached Sources Table shows the strong City, State and Housing Catalyst contributions, and also shows the need for this final piece. We believe that this is the right time and perfect opportunity to activate this fund. I look forward to answering any questions you may have and to further conversations about next steps. Sincerely, Julie J. Brewen CEO ATTACHMENT 1 Mason Place Sources SOURCE AMOUNT Federal Low Income Housing Tax Credits (LIHTC equity investor contribution) $11,648,150 Permanent Loan (Mortgage debt) $2,500,000 Colorado Division of Housing (HOME) $600,000 Division of Housing (Marijuana sales tax set‐ aside for permanent supportive housing) $750,000 City CDBG/HOME/AHF (Per CDBG Commission recommendation ‐ $2mill was requested) $1,123,388 Housing Catalyst Equity (Deferred Developer max feasible/allowable per LIHTC rule) $724,664 Affordable Housing Capital Fund Request $876,662 TOTAL $18,222,814 ($450,000 of anticipated City fee waivers reduce the construction cost and are not shown as a source for this purpose.) ATTACHMENT 2 Housing Catalyst Mason Place 2018 1 DRAFT RECIPIENT CONTRACT FOR CITY OF FORT COLLINS AFFORDABLE HOUSING CAPITAL FUND MONIES THIS RECIPIENT CONTRACT (“Contract”) is entered into by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (hereinafter referred to as "the City") and the HOUSING AUTHORITY OF THE CITY OF FORT COLLINS, DBA HOUSING CATALYST, a body corporate and politic under the laws of the state of Colorado (hereinafter referred to as the “Recipient”), and shall be effective on the date last signed below. W I T N E S S E T H: WHEREAS, the City, through its Affordable Housing Capital Fund (“Fund”), desires to be a financial partner with developers of local affordable housing, where feasible; and WHEREAS, Recipient is proposing to construct Mason Place, a permanent supportive housing development (the “Project”), and has requested funding for the Project totaling $1,080,000 from the Fund; and WHEREAS, the City wishes to support the Project by providing funding subject to the terms and conditions herein. NOW, THEREFORE, in consideration of the mutual promises of the parties, it is agreed as follows: 1. Scope of Services/Performance Monitoring. A. The Scope of Services to be rendered by the Recipient as a condition of receiving funds for the Project pursuant to this Contract is attached as Exhibit A hereto and made a part of this Contract. The Recipient will develop the Project on the “Project Property”, as described in Exhibit A. Recipient agrees to perform the work described in Exhibit A, Scope of Services, in compliance with all provisions of this Contract. Recipient warrants and represents that it has the requisite authority and capacity to perform all of Recipient's obligations hereunder. B. The City will monitor the performance of the Recipient against goals and performance standards required herein. Substandard performance as determined by the City will constitute non-compliance with this Contract. If the Recipient does not take action to correct such substandard performance within a reasonable period of time after being notified by the City, the City may initiate contract suspension or termination procedures. 2. Time of Performance/Term of Contract. Housing Catalyst Mason Place 2018 2 The Project shall commence upon the full and proper execution of this Contract and shall be completed on or before [DATE] (the “Completion Date”). However, the Project time of Performance may be extended by letter, subject to mutual agreement of the City and the Recipient. To initiate this process, the Recipient shall submit a written request to the City at least sixty (60) days prior to the Completion Date and shall include a full justification for the extension request. Except as provided in Section 22 below, this Contract shall be in effect as long as the Recipient retains control over properties which utilize Fund monies provided pursuant to this Contract for acquisition, construction or rehabilitation of affordable housing, including income generated from the funds. The City's obligation to provide funding under this Contract shall be from [DATE] to [DATE] and shall be contingent upon full compliance by Recipient with all terms and conditions set forth herein. 3. Payment/Repayment of Funds. If the Recipient is awarded 2018 9% Tax Credits by the Colorado Housing Finance Authority by no later than September 1, 2018 and is not in default hereunder, and the Contract and Scope of Services are eligible expenditures of Fund monies, the City will pay the Recipient monies of Eight Hundred Seventy-Six Thousand Six Hundred Sixty-Two dollars ($876,662) over a period of three years on the following schedule with no prepayment penalty: 2018: $484,000 in Fund monies appropriated and available (payment will occur once this agreement has been executed). 2019: $300,000 in Fund monies, subject to receipt of anticipated revenue by the City and appropriation of such funds by the Fort Collins City Council. Payment will occur January 15, 2019. 2020: $92,662 in Fund monies, subject to receipt of anticipated revenue by the City and appropriation of such funds by the Fort Collins City Council. Payment will occur January 15, 2020. Recipient also anticipates receiving from the City, subject to a separate agreement, an amount equal to $1,123,388 in CDBG/HOME monies (the “HUD Money”). Payment will be made upon presentation of invoices which Recipient certifies are true and correct copies of payments due on behalf of the Recipient, for an activity covered by this Contract and made in accordance and compliance with the Scope of Services. In no event shall the City's obligation to make payment to the Recipient hereunder exceed Eight Hundred Seventy-Six Thousand Six Hundred Sixty-Two dollars ($876,662). Payments may be made once a month in cases covering reimbursement for operation costs, otherwise upon presentation of vouchers accompanied by invoices or receipts showing date paid. Payment may be suspended by the City in the event of a default by Recipient. For certain projects funded with Fund monies, the City will withhold a retainage of 10% of the loan amount until the Recipient has successfully completed development of the Project through rental of all units and submittal to the City of all required documentation. All funds are provided as a “due-on-sale loan” at a minimum, unless otherwise specified in the Scope of Services. Loans also require payment of five percent simple interest on the principal, which payment shall be made to the City at the payoff of the loan. All loans Housing Catalyst Mason Place 2018 3 are due in full upon sale or transfer by Recipient of the Project Property, in the event of a default by Recipient under this Contract, or if the Recipient or a subrecipient commits fraud, deceit or misrepresentation in obtaining funding. 4. Environmental Conditions. When applicable, no funds shall be obligated or expended until an Environmental Review is completed and submitted to the City of Fort Collins for review and the City has notified Recipient that the City concurs with the Environmental Review. The Recipient agrees to comply with all environmental or public health related laws or regulations, insofar as they apply to the performance of this Contract, including but not limited to:, the Clear Air Act, 42 U.S.C., 1857, et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended 1318 relating to inspection, monitoring, entry, reports and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; the Environmental Protection Agency (EPA) regulations pursuant to 40 CFR, Part 50, as amended; the National Environmental Policy Act of 1969; and the Flood Disaster Protection Act of 1973. 5. Affordability/Restrictive Covenants Affordability requirements as described in the Scope of Work remain with the Project Property regardless of change of ownership during the specified period of affordability. An Agreement of Restrictive Covenants detailing affordability requirements in a form reasonably acceptable to the City will be placed on all properties funded by the City, which Restrictive Covenants will be used to enforce the long-term affordability of the project. The Recipient shall qualify households applying for housing assistance using Section 8 income guidelines. 6. Notices. Notices required to be given under this Contract shall be hand delivered or sent by U.S. Mail or overnight commercial courier and addressed as follows: If to the City: If to the Recipient: Affordable Housing Program Social Sustainability Department Housing Authority of the City of Fort Collins, dba Housing Catalyst 1715 W. Mountain Ave. Fort Collins, CO 80521 City of Fort Collins P.O. Box 580 Fort Collins, CO 80522-0580 Recipient will also notify the City promptly of any change in its ownership. 7. Compliance with Laws. Housing Catalyst Mason Place 2018 4 The Recipient, in performance of this Contract, agrees to comply with all applicable Federal, State and local laws and ordinances, and other policies, regulations and guidelines established for the City of Fort Collins. Recipient agrees to comply with all provisions of the Americans with Disabilities Act and all regulations interpreting or enforcing such act. 8. Proof of Lawful Presence Recipient acknowledges that the City’s Affordable Housing Funds are a “public benefit” within the meaning of C.R.S. § 24-76.5-102. As such, the Recipient shall ensure compliance with C.R.S. § 24-76.5-103 of State statute by performing the required verifications. Specifically, when required the Recipient shall ensure that: a. if the public benefit provided by the funds flows directly to a natural person (i.e., not a corporation, partnership, or other legally-created entity) 18 years of age or older, he/she must do the following: (i) complete the affidavit attached to this Contract as Exhibit “D”. (ii) attach a photocopy of the front and back of one of the following forms of identification: a valid Colorado driver’s license or Colorado identification card; a United States military card or military dependent’s identification card; a United States Coast Guard Merchant Mariner identification card; or a Native American tribal document. b. If an individual applying for the benefits identified herein executes the affidavit stating that he/she is an alien lawfully present in the United States, Recipient shall verify his/her lawful presence through the federal systematic alien verification or entitlement program, known as the “SAVE Program,” operated by the U.S. Department of Homeland Security or a successor program designated by said department. In the event Recipient determines through such verification process that the individual is not an alien lawfully present in the United States, the Recipient shall not provide benefits to such individual with the City’s Affordable Housing Funds. The City acknowledges that the Scope of Services provided by Recipient herein may fall within several exceptions to the verification requirements of C.R.S. § 24-76.5-103 for non- profits. For example, certain programs, services, or assistance such as, but not limited to, soup kitchens, crisis counseling and intervention, short-term shelter or prenatal care are not subject to the verification requirements of C.R.S. § 24-76.5-103. 9. Prohibition Against Employing Illegal Aliens This paragraph applies to all recipients whose performance of work under this Contract does not involve the delivery of a specific end product other than reports that are merely incidental to the performance of said work. In compliance with C.R.S. § 8-17.5-101, Recipient represents and agrees that: Housing Catalyst Mason Place 2018 5 (a) As of the date of this Contract, Recipient does not knowingly employ or contract with an illegal alien who will perform work under this Contract; and Recipient will participate in the electronic employment verification program created in Public Law 104-208, as amended, and expanded in Public Law 108-156, as amended, and jointly administered by the United States Department of Homeland Security and the Social Security Administration, or its successor program (the “E-Verify” Program), in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under this Contract. (b) Recipient shall not knowingly employ or contract with an illegal alien to perform work under this Contract or knowingly enter into a contract with a subcontractor that fails to certify to Recipient that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Contract. (c) Recipient has confirmed the employment eligibility of all employees who are newly hired for employment to perform work under this Contract through either the E-Verify Program or the employment verification program established by the State of Colorado pursuant to Section 8- 17.5-102(5)(c), C.R.S. (the “department program”). (d) Recipient is prohibited from using either the E-Verify Program or the department program procedures to undertake pre-employment screening of job applicants while this Contract is being performed. (e) If Recipient obtains actual knowledge that a subcontractor performing work under this Contract knowingly employs or contracts with an illegal alien, Recipient shall: (i) Notify such subcontractor and the City within three days that Recipient has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and (ii) Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this Section the subcontractor does not cease employing or contracting with the illegal alien; except that Recipient shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. (f) Recipient shall comply with any reasonable request by the Colorado Department of Labor and Employment (the “Department”) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8- 17.5-102 (5), C.R.S. (g) If Recipient violates any provision of this Contract pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Contract. If this Contract is so terminated, Recipient shall be liable for actual and consequential damages to the City arising out of Contractor’s violation of Subsection 8-17.5-102, C.R.S. Housing Catalyst Mason Place 2018 6 (h) The City will notify the Office of the Secretary of State if Recipient violates this provision of this Contract and the City terminates the Contract for such breach. 10. Independent Contractor. Nothing contained in this Contract is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Recipient shall at all times remain an independent contractor with respect to the services to be performed under this Contract. The City shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation insurance as the Recipient is an independent contractor. 11. Liability. As to the City, Recipient agrees to assume the risk of all personal injuries, including death resulting therefrom, to persons, and damage to and destruction of property, including loss of use therefrom, caused by or sustained, in whole or in part, in connection with or arising out of the performance or nonperformance of this Contract by Recipient or by the conditions created thereby. Recipient further agrees to indemnify and save harmless the City, its officers, agents and employees, from and against any and all claims, liabilities, costs, expenses, penalties and attorney fees arising from such injuries to persons or damages to property or based upon or arising out of the performance or nonperformance of this Contract or out of any violation by Recipient of any statute, ordinance, rule or regulation. 12. Insurance and Bonding. The Recipient shall carry sufficient insurance coverage to protect Contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum, shall purchase blanket fidelity bond covering all of Recipient’s employees in an amount equal to cash advances from the City. Specifically, the Recipient will protect the City’s investment by providing Property Insurance, Workers Compensation and Employer’s Liability Insurance, if applicable, Commercial General Liability Insurance and All Risk Property Damage Insurance. 13. Grantor Recognition. The Recipient shall ensure recognition of the role of the City in providing services through this Contract. All activities, facilities and items utilized pursuant to this Contract shall be prominently labeled as to funding source. In addition, the Recipient will include a reference to the support provided herein in all publications made possible with funds made available under this Contract. Such labeling and/or reference shall generally state the following: "This project is partially supported by funding from the City of Fort Collins." 14. Documentation and Record-keeping. A. Records to be Maintained. Housing Catalyst Mason Place 2018 7 The Recipient shall maintain all records that are pertinent to the activities to be funded under this Contract. Such records shall include but not be limited to: (i) Records providing a full description of each activity undertaken including the location of the Project, the form of assistance provided and the per-unit subsidy; (ii). Records required to determine the eligibility of activities, including minimum and maximum per-unit subsidy limits, household income, and lease requirements and tenant protections for each household; (iii). Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with City Affordable Housing fund assistance; The Recipient shall use reasonable and appropriate accounting systems in maintaining the records required hereunder. B. Retention. The Recipient shall retain all records pertinent to expenditures incurred under this Contract for a period of five (5) years after the termination of all activities funded under this Contract. Records for non-expendable property acquired with funds under this Contract shall be retained for five (5) years after final disposition of such property. The Recipient shall maintain all eligibility documentation on the occupants of the Project that supports the low-income benefit criteria for such occupants throughout the period of affordability for the Project as defined in the Scope of Work. C. Client Data. The Recipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to: client name, address, income level or other basis for determining eligibility, and description of service provided, racial and ethnic data and single head of household data. In addition, data will be retained for affordability and income targeting for each household. Such information shall be made available to City monitors or their designees for review upon request. D. Property Records. The Recipient shall maintain real property inventory records which clearly identify Project properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria. E. Audits and Inspections. Housing Catalyst Mason Place 2018 8 All records with respect to any matters covered by this Contract shall be made available to the City at any time during normal business hours, as often as the City deems necessary, to audit, examine and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within thirty (30) days after receipt by the City. Failure of the Recipient to comply with the above requirements will constitute a violation of this contract and may result in the withholding of future payments. F. Suspension and Debarment. By executing this Contract, Recipient verifies and affirms that it has not been suspended or debarred from participating in or receiving federal government contracts, subcontracts, loans, grants or other assistance programs. 15. Reporting and Payment Procedures. A. Budgets. The specific use of the funds provided to Recipient under this and other City funding programs, is included in Exhibit A (Scope of Services), and a detailed contract budget for the Project is attached as Exhibit “C” and incorporated herein by this reference. The City and the Recipient may revise the budget from time to time in accordance with existing City policies, by amendment of this Contract. B. Program Income. The Recipient shall report to the City yearly all program income, as defined at 24 CFR 570.500(a) generated by activities carried out with funds made available under this Contract, including, but not limited to, any rental income or income derived from the sale of the Project Property. The Recipient may use such income during the Contract period for supportive services for residents of the Project based on Housing First, Harm Reduction, and Trauma Informed Care models. All program income not used in accordance with this Section shall be returned to the City at the end of the Contract period. C. Indirect Costs. If indirect costs are charged, the Recipient will develop an indirect cost allocation plan for determining the appropriate City share of administrative costs and shall submit such plan to the City for approval prior to submission of requests for any payments for the same. D. Payment Procedures. The City will pay to the Recipient funds available under this Contract based upon information submitted by the Recipient and consistent with any approved budget and City policy concerning payments. With the exception of certain Housing Catalyst Mason Place 2018 9 advances, payments will be made for eligible expenses actually incurred by the Recipient, and not to exceed actual cash requirements. Payments will be adjusted by the City in accordance with advance fund and program income balances available in Recipient accounts. In addition, the City reserves the right to liquidate funds available under this Contract for costs incurred by the City on behalf of the Recipient. E. Progress Reports. The Recipient shall submit regular Progress Reports to the City on a quarterly basis until Project completion and on a yearly basis thereafter or as required by the Scope of Services. Quarterly reports shall include a narrative description of progress, percentage of work completed, funds expended, and any issues or problems. During any required period of affordability, the recipient will submit a yearly occupancy report and the City may require submission of a yearly audit. 16. Monitoring and Evaluation. The City reserves the right to monitor and evaluate the progress and performance of the Recipient to assure that the terms of this Contract are being satisfactorily met in accordance with City and other applicable monitoring and evaluating criteria and standards. Recipient shall cooperate with City relating to such monitoring and evaluation, and make available to the City any documents or other information requested by the City or relevant to the City’s monitoring and evaluation. 17. Property Acquired With Program Funds. A. Recipient agrees to use all personal assets and all real property, acquired or improved, in whole or in part, with Fund monies, as set forth in Exhibit A. In the event Recipient ceases to use a personal asset or real property acquired or improved with Fund monies in accordance with Exhibit A, the Recipient shall return the personal asset or real property to the City, or pay to the City a sum equal to its fair market value, less any portion of the value attributable to expenditures of non- Fund monies for the acquisition of, or improvement to, the asset or property. The Recipient shall transfer to the City any Fund monies on hand at the time of expiration of this Contract and any accounts receivable of Fund monies. B. Recipient agrees to promptly provide to the City, through an appropriate lien, deed of trust, or other security instrument, such security interest in any personal or real property acquired using funds provided under this Contract as the City may deem appropriate, based upon the nature of the property, the Scope of Services, the potential term of the security interest, and such other reasonable considerations as the City may deem appropriate in protecting its interest in the funds provided hereunder. Recipient further agrees that in addition to, or in lieu of the above, the City may require the execution and recordation of Restrictive Covenants on real property purchased in connection Housing Catalyst Mason Place 2018 10 herewith, in order to protect the City’s interest in the funds provided hereunder. 18. Civil Rights. A. Compliance. The Recipient agrees to comply with Chapter 13, Article II, of the City Code and Title 24, Article 34, Parts 3 through 7, C.R.S., and with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 104(b) and Section 109 of Title 1 of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans With Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246, as amended by Executive Orders 11375, 11478 and 12086. B. Employment Nondiscrimination. The Recipient will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, sexual orientation, disability or other handicap, age, actual or perceived sexual orientation, gender identity, marital status, or status with regard to public assistance in accordance with federal, state and local laws. The Recipient will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. The Recipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause. The Recipient will serve all eligible beneficiaries without regard to religion and may not restrict housing to people of a particular religion or by reason of their participation (or lack thereof) in religious activities. C. Land Covenants. This Contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and 24 CFR 570 Part 1. In regard to the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Contract, the Recipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Recipient is a beneficiary of and entitled to enforce such covenants. The Recipient, in undertaking its obligation to carry the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. Housing Catalyst Mason Place 2018 11 D. Fair Housing. All housing (for sale or rent) assisted with funding through the City must be made available without discrimination based on race, color, national origin, age, sex, religion, familial status or disability according to Title VIII of the Civil Rights Act of 1968, Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, Executive Orders 11063 and 12259 – Equal Opportunity in Housing, Section 504, Title II of the Americans with Disabilities Act; and without discrimination based on disability, race, creed, color, sex, sexual orientation, marital status, familial status, religion, national origin, or ancestry according to Part 5 of Article 34 of Title 24, C.R.S. 19. Prohibited Activity. The Recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities, lobbying, political patronage or nepotism activities. Funds provided under this Contract must not be used for religious activities, to promote religious interests, or for the benefit of a religious organization. The recipient cannot require a beneficiary to participate in inherently religious activities; however, a faith-based organization may retain its independence to carry out its mission, including allowing a Board of Directors to be selected based on religious practice. 20. Conflict of Interest. The Recipient covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Contract. The Recipient further covenants that in the performance of this Contract, no person having such a financial interest shall be employed or retained by the Recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the City, or of any designated public agencies or Recipients which are receiving Affordable Housing Fund monies. 21. Subcontracts. The Recipient shall not enter into any subcontracts with any agency or individual in the performance of this Contract without the written consent of the City prior to the execution of such contract. The Recipient will monitor all subcontracted services on a regular basis to assure compliance with both this Contract and the applicable subcontract. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. The Recipient shall cause all of the provisions of this Contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Contract. The Recipient shall undertake to ensure that all subcontracts let in the performance of this Contract shall be awarded in a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the City, along with documentation concerning the selection process. 22. Suspension or Termination and Default. Housing Catalyst Mason Place 2018 12 A, Recipient may terminate this Contract at any time by giving written notice to the City of such termination and specifying the effective date thereof at least thirty (30) days before the effective date of such termination. Partial terminations of the Scope of Service may only be undertaken with the prior written approval of City. If the Recipient terminates this Contract prior to completion of the Scope of Services, including any required period of affordability, all funds previously paid to Recipient by the City pursuant to this Contract must be repaid to the City upon such termination. B. The City may also suspend or terminate this Contract, in whole or in part, if Recipient materially fails to comply with any term of this Contract, or with any of the rules, regulations or provisions referred to herein; and the City may declare the Recipient ineligible for any further participation, through the Competitive Process, in City affordable housing, public facility or human services contracts, from any City funding source, in addition to other remedies as provided by law or in equity. In the event there is probable cause to believe the Recipient is in noncompliance with any applicable laws, rules, or regulations, the City may withhold up to one hundred (100) percent of said Contract funds until such time as the Recipient is found to be in compliance by the City or is otherwise adjudicated to be in compliance, or exercise the City’s rights under any security interest of the City arising hereunder. C. In the event of any termination pursuant to this section, the Recipient shall remit to the City all monies previously paid by the City to the Recipient under this Contract, and all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by Recipient under this Contract shall, at the option of the City, become the property of the City, provided, however, that Recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. D. This Contract, and the City's obligations under it, will automatically terminate in the event of suspension or non-appropriation of funds by the City. 23. Amendments. The parties may amend this Contract at any time, provided that such amendments make specific reference to this Contract and are executed in writing, signed by a duly authorized representative of both organizations. Such amendments shall not invalidate this Contract, nor relieve or release the City or Recipient from its obligations under this Contract, except as expressly provided therein. 24. Assignability. This Contract has been awarded based on the specific qualifications and representations of the Recipient. Therefore, the Recipient shall not assign or transfer: (a) any interest in this Contract; (b) any of its rights or obligations under this Contract, or (c) its interest in any property obtained using the funds provided under this Contract (including Housing Catalyst Mason Place 2018 13 but not limited to the Project Property as described in Exhibit A), without the prior written consent of the City; provided, however, that claims for money due or to become due to the Recipient from the City under this Contract may be assigned to a bank, trust company or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. For assignments and transfers requiring City consent, the Recipient must give the City no less than thirty (30) days advance notice of the proposed assignment or transfer. Notwithstanding any provision contained herein to the contrary, a to be formed entity of which the Recipient is the general partner or managing member (the “Partnership”) shall be a permitted sub-Recipient under this Contract and shall have all the same rights and obligations as the Recipient under this Contract. Without limiting the generality of the foregoing, the parties hereby expressly agree that the Partnership has the right to receive a loan of the Affordable Housing Capital Fund monies awarded under this Contract from the Recipient. 25. Entire Agreement/Governing Law. This Contract including all attachments; the applicant’s corresponding application for the City’s Competitive Process, the applicant’s verbal presentation before the CDBG Commission, the Promissory Note(s), the Deed(s) of Trust, the Agreement of Restrictive Covenants for Real Property and any other applicable legal documents, constitute the entire agreement between the parties hereto and no statement, promise, conditions, understanding, inducement or representation, oral or written, express or implied, which is not contained herein shall be binding or valid. This contract shall be binding upon the parties, their agents, representatives, successors and assigns. This Contract shall be governed under the laws of the State of Colorado. 26. Authority to Sign The persons executing this Contract on behalf of the Recipient represent that one or both of them has the authority to execute this Contract and to bind the Recipient to its terms. IN WITNESS WHEREOF, the parties have executed this Contract as of the date of the most recent signatory. THE CITY OF FORT COLLINS, COLORADO A Municipal Corporation By:_______________________ Date _________ Darin A. Atteberry, City Manager ATTEST: ____________________________ City Clerk Housing Catalyst Mason Place 2018 14 ____________________________ (print name) APPROVED AS TO FORM: ____________________________ Sr. Assistant City Attorney ____________________________ (print name) HOUSING AUTHORITY OF THE CITY OF FORT COLLINS, DBA HOUSING CATALYST a body corporate and politic under the laws of the state of Colorado Date: By: Julie J. Brewen, Executive Director & Chief Executive Officer Housing Catalyst Mason Place 2018 15 EXHIBIT A SCOPE OF SERVICES 1. Project Description and Objectives: Mason Place Permanent Supportive Housing Development will provide 60 new units of housing for homeless individuals with a disability with onsite supportive services. Based on the Housing First, Harm Reduction, and Trauma Informed Care models, Mason Place will provide affordable housing and services to people with special needs who are experiencing homelessness, including homeless veterans. With a combination of VASH vouchers and Housing Catalyst Project Based vouchers, Mason Place will be able to serve difficult and hard to reach populations with deep Area Median Income targeting. 2. Amount of award, source of funding: $876,662 AHCF 3. Terms of the Loan: Due on Sale loan with 5% simple interest 4. Project Property Address, number of units in the project and number of accessible units: 3750 S MASON Street, Fort Collins, CO 80525; 60 units; and 3 accessible units 5. Legal Description of Project Property: LOT 5A, CREGER PLAZA, SECOND REPLAT, CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO 6. Low and Moderate Income Benefit. The Recipient shall insure that 100% of the total AHCF-assisted units (60 units) will be occupied by persons whose household income is less than or equal to 30% of area median income. Income limits are attached to this document as Exhibit B-1 and may be amended as necessary. The Recipient shall determine annual income of the Project beneficiaries using Section 8 Housing Program income definitions as per 24 CFR Part 813. 7. Affordability. Rental: For all City funding, regardless of changes in fair market rents and in median incomes over time, the qualifying rents are not required to be lower than the fair market rents for the project in effect at the time of contract execution. Area median incomes and Fair Market Rents are annually adjusted by the department of Housing and Urban Development (HUD). Rent and income levels must be reviewed annually by the City for compliance with the above requirements. The Fair Market Rent schedule, as set forth in Exhibit B-2 is attached hereto and is incorporated herein by reference, or as subsequently promulgated in writing by the City. The Recipient shall ensure that all of the units in the Project continue to be used to provide housing for low and moderate income persons at affordable rents. 8. Agreement of Restrictive Covenant: The City shall prepare and Recipient will be responsible for executing an agreement of restrictive covenant that will ensure that the property will remain affordable without regard to the term of any mortgage or the transfer of ownership for not less than the appropriate term described in the previous paragraph. The period of affordability for this project is twenty years regardless of repayment of loan and/or transfer or sale of the property. Housing Catalyst Mason Place 2018 16 9. Tenant and Participants Protection: The lease between a tenant and an owner of rental housing must be for not less than one year, unless by mutual agreement between the tenant and the owner. Leases must specify that tenants must receive at least 30 days written notice prior to implementing a rent increase. The lease may not contain any of the prohibited lease terms listed in 24 CFR Part 92.253(b). In addition, all leases must comply with applicable state or local tenant-landlord laws. 10. Contract Administration. The City is responsible for providing the following information to the Recipient yearly as it becomes available: income limits, rent limits, utility allowances and any changes to requirements that may affect the management of the project. The Recipient shall be responsible for the timely completion of the Scope of Services requirements. 11. Housing Standards. These units will, at a minimum, meet HUD's Housing Quality Standards (24 CFR, Section 982.401 and 92.251, incorporated by reference), including lead- based paint requirements at 24 CFR Part 35, and all applicable local and state building codes and standards. Housing Catalyst Mason Place 2018 17 EXHIBIT B-1 2017 Income Limits Income Limits (effective date 16/15/2017) 2017 Median Income for a Family of 4: $76,800 Mason Place will serve primarily single people at 0-30% AMI (Fort Collins/Loveland Metropolitan Statistical Area) City of Fort Collins Household Members 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 23,040 24,900 26,750 28,600 30,450 AMI = Area Median Income 51-80%: Low Income (HOME High Income Limit) 31-50%: Very Low Income (HOME Low Income Limit) 0-30%: Extremely Low Income Housing Catalyst Mason Place 2018 18 EXHIBIT B-2 2017 Fair Market Rents Rent 0-Bdrm 1-Bdrm 2-Bdrm 3-Bdrm 4-Bdrm Low HOME 685 733 880 1016 1135 High HOME 719 817 996 1347 1483 FAIR MARKET 719 817 996 1450 1755 50% Rent Limit 685 733 1173 1016 1135 65% Rent Limit 910 976 1383 1536 1659 *This section to be updated with the 2018/2019 rent and income limits at execution. Housing Catalyst Mason Place 2018 19 EXHIBIT C PROJECT BUDGET Please note: The Sources and Uses statement from the application is hereby incorporated into the agreement from which the following is itemized: Committed Funds (A) + Anticipated Funds (B) = Total Funds (C) + $11,648,150 = $11,648,150 $11,648,150 $750,000 + $0 = $750,000 $0 + $600,000 = $600,000 $1,350,000 $920,000 + $0 = $920,000 + $1,080,000 = $1,080,000 $2,000,000 $655,859 + $0 = $724,664 $0 + $2,500,000 = $2,500,000 $3,224,664 $18,222,814 Expenses $ 2,700,000 $ 9,660,000 $ 1,595,550 $ 1,432,000 Perm Financing Costs $ 151,000 $ 159,500 $ 1,656,942 $ 867,822 $ 18,222,814 Other Total Project/Program Expenses = Syndication Costs Developer Fees Project Reserves Description Acquisition Costs Construction Costs Professional Fees and Soft Costs Construction Interim Costs FUNDING SOURCES/REVENUES Federal Low Income Housing Tax Credit (LIHTC) State Government Sources LIHTC Investor Equity DOLA SHP City CDBG/HOME DOH Description Federal Total = State Total = Local Total = Fee and Debt Total = Local Sources (includes government and non-foundation sources) Permanent Loan (Mortgage Debt) Affordable Housing Capital Fund Housing Catalyst Mason Place 2018 20 EXHIBIT D Proof of Legal Residency Pursuant to Section 24-76.5-103(4)(b), C.R.S. ONE COPY AND VERIFICATION REQUIRED FOR EACH ADULT AGE 19 AND OLDER I, _____________________________________, swear or affirm under penalty of perjury under the laws of the State of Colorado that (check one): ______ I am a United States citizen, or ______ I am a legal Permanent Resident of the United States, or ______ I am otherwise lawfully present in the United States pursuant to federal law. I understand that this sworn statement is required by law because I have applied for a public benefit, as defined by law. I understand that state law requires me to provide proof that I am lawfully present in the United States prior to receipt of this public benefit. I further acknowledge that making a false, fictitious, or fraudulent statement or representation in this sworn affidavit is punishable under the criminal laws of Colorado as perjury in the second degree under Colorado Revised Statute section 18-8-503 and it shall constitute a separate criminal offense each time a public benefit is fraudulently received. If I checked the second or third option above, I understand that my lawful presence in the United States will be verified through the federal Systematic Alien Verification of Entitlement (SAVE) Program. __________________________ ____________________ Signature Date The above affidavit must be accompanied by a copy of one of the following four types of identification. _____ A valid Colorado Driver’s License or a Colorado Identification Card, issued pursuant to Article 2 of Title 42, C.R.S.; or _____ A United States military card or a military dependent’s identification card; or _____ A United States Coast Guard Merchant Mariner card; or _____ A Native American Tribal document. MINUTES CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Date: Thursday, May 3, 2018 Location: Colorado River Room, 222 Laporte Avenue Time: 4:00–6:00pm For Reference Diane Cohn, Chair Ken Summers, Council Liaison Sue Beck-Ferkiss, Staff Liaison 970-221-6753 Board Members Present Board Members Absent Diane Cohn Jen Bray Curt Lyons Catherine Costlow Jeffrey Johnson Kristin Fritz Rachel Auldridge Staff Present Sue Beck-Ferkiss, Social Policy & Housing Project Manager Ryan Mounce, Planner, City of Fort Collins Clay Frickey, Planner, City of Fort Collins Brittany Depew, Administrative Assistant/Board Support Guests Julie Brewen, Housing Catalyst Call to order: 4:03 Agenda Review: No changes Public Comment: None Review and Approval of Minutes Jeff moved to approve April minutes before the meeting. Curt seconded. Motion passed, 4-0-2. Kristin recused and Rachel abstained. A. Housing Catalyst’s request for Affordable Housing Capital Fund funding – Sue Beck- Ferkiss The Competitive Process amounts awarded to housing applicants changed slightly as more funding was received from the U.S. Department of Housing and Urban Development (HUD) than anticipated. Housing Catalyst requested $2 million for the Mason Place permanent supportive housing development and are slated to receive $1,123,388 through the Competitive Process. They are now asking for the remaining $876,662 from the Affordable Housing Capital Fund. Housing Catalyst is applying for 9% tax credits on June 1, and the strongest application would be fully funded. Their gap in funding is due to their Community Development Block Grant (CDBG) request not being funded in full. The Affordable Housing Capital Fund is voter approved, and gets an increasing amount each year for a total of $4 million. Comments/Q&A: • Catherine: How much is currently in the fund? o Sue: We have about $500k in the account now, and the next two years we will get $400k each year. We would not give them funds now, we are committing to giving them the funds when needed, and as available in the Affordable Housing Capital Fund. • Diane: What’s the construction timeline? We’re looking at 2019? o Sue: Yes, but they have to get 2018 tax credits. o Diane: The 9%? o Sue: Yes, the 9% tax credits. • Catherine: So there wouldn’t be any funds left for other projects? o Sue: We would withhold some for fee waivers. • Diane: The request is for $876,662? o Sue: Yes, and it might take 2 or 3 years to fulfill the commitment. Jeff moved to support the staff recommendation to provide funding from the Affordable Housing Capital Fund to the Mason Place development. Curt seconded. Motion passed 5-0-1. Kristin recused. 1 Housing Catalyst Mason Place Request Beth Sowder, Social Sustainability Dept. Director May 15, 2018 ATTACHMENT 5 Purpose 2 • Resolution • Execution of funding agreement with Housing Catalyst • Loan from Affordable Housing Capital Fund • Construction of Mason Place, permanent supportive housing • $876,662 to assist with remaining funding gap • Application for Low Income Housing Tax Credits Plan and Strategy Alignment 3 CITY PLAN CITY STRATEGIC PLAN AFFORDABLE HOUSING STRATEGIC PLAN “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.” 4 Voter Approved Language 5 REDTAIL PONDS Redtail Ponds Mason Place • Permanent Supportive Housing • Serving homeless individuals with a disability • On-site supportive services • Adaptive reuse of existing building • 60 units total • Utilize VASH and HC Vouchers • Serve difficult/hard to reach populations 6 • Green building and energy efficient construction • Vehicle parking spaces: 80 • Bike parking spaces: 62 (37 enclosed) • 3-story • Single point of entry w/ 24-7 staffing Mason Place Funding Sources 7 SOURCE AMOUNT Federal Low Income Housing Tax Credits (LIHTC equity investor contribution) $11,648,150 Permanent Loan (Mortgage debt) $2,500,000 Colorado Division of Housing (HOME) $600,000 Division of Housing (Marijuana sales tax set‐aside for permanent supportive housing) $750,000 City CDBG/HOME/AHF (Per CDBG Commission recommendation ‐ $2mill was requested) $1,123,388 Housing Catalyst Equity (Deferred Developer max feasible/allowable per LIHTC rule) $724,664 Affordable Housing Capital Fund Request $876,662 TOTAL $18,222,814 Request to Authorize Funding Agreement $876,662 over three years (2018, 2019, 2020) This agreement would be: • Conditional on HC receiving 2018 LIHTC grant award • Development of Mason Place • “Due-on-sale” loan – ensure the project remains affordable 8 Public Outreach Housing Catalyst Outreach: • Neighborhood Meeting April 9, 2018 • Presentations, overview • Open House style • Business outreach including Safeway shopping center • Followed-up with Troutman Park neighborhood • Lopez Elementary School Principal 9 Staff Recommendation Staff recommends approval of the resolution: • Aligns with City goals and priorities • Funding would come from AHCF leaving an estimated $2.8M for other future projects • Affordable Housing Board voted to support 10 -1- RESOLUTION 2018-052 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF A FUNDING AGREEMENT BETWEEN THE CITY AND THE HOUSING AUTHORITY FOR A LOAN OF FUNDS FROM THE AFFORDABLE HOUSING CAPITAL FUND FOR MASON PLACE WHEREAS, the Housing Authority of the City of Fort Collins, doing business as Housing Catalyst (“HC”) is proposing to construct Mason Place, a permanent supportive housing development in Fort Collins serving low-income homeless individuals with a disability, including veterans (the “Project”); and WHEREAS, HC applied for $2,000,000 in funding for the Project from the City’s 2018 competitive process for the allocation of City financial resources to affordable housing programs and projects and community development activities; and WHEREAS, the City’s Community Development Block Grant Commission recommended funding $1,123,388 of HC’s request; and WHEREAS, HC is planning to apply for tax credits from the Colorado Housing and Finance Authority, and must have its application submitted by June 1, 2018; and WHEREAS, to compete for tax credits, HC’s application must show that all its other funding is secured; and WHEREAS, to make up the funding shortfall, HC is requesting $876,662 in funds from the City’s Affordable Housing Capital Fund (AHCF) in the Community Capital Improvement Program (CCIP); 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, if the City Council approves the request, the City would provide the funding to HC in the same way it provides most other funding for affordable housing capital projects: as a due-on-sale loan pursuant to a Recipient Contract between the City and HC (the “Contract”); and WHEREAS, under the terms of the Contract, the City would provide $484,000 in AHCF funds for the Project in 2018, an additional $300,000 in AHCF funds in 2019 and $92,662 in AHCF funds in 2020, subject to receipt of anticipated revenue by the City and subject to appropriation of such funds by the City Council; and WHEREAS, the Contract would also allow HC to pass the funding through to a new partnership entity formed for the Project, of which HC is the general partner or a managing member; and -2- WHEREAS, Article II, Section 16 of the City Charter of Fort Collins empowers the City Council, by ordinance or resolution, to enter into contracts with governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, under Section 1-22 of the City Code, intergovernmental agreements and other cooperative arrangements between the City and other governmental entities are to be submitted to the City Council for review, unless they fit within one of the exceptions that permit execution by the City Manager; and WHEREAS, Section 29-1-203 of the Colorado Revised Statutes provides that governments may cooperate or contract with one another to provide certain services or facilities when such cooperation or contracts are authorized by each party thereto with the approval of its legislative body or other authority having the power to so approve; and WHEREAS, the City Council finds that the Project meets the requirements for funding from the AHCF, and that it is in the best interests of the City to provide the requested funding to HC for the project. 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 Manager is hereby authorized to execute a Recipient Contract with Housing Catalyst on terms consistent with this Resolution, along with such other terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City or effectuate the purposes set forth herein. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of May, A.D. 2018. _________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk FUNDING USES/EXPENSES Deferred Develop Fee Total Revenues from all Categories =