HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/08/2020 - HOUSING STRATEGIC PLAN UPDATEDATE:
STAFF:
December 8, 2020
Meaghan Overton, City Planner
Lindsay Ex, Interim Housing Manager
Caryn Champine, Director of PDT
Jackie Kozak-Thiel, Chief Sustainability Officer
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Housing Strategic Plan Update
EXECUTIVE SUMMARY
The purpose of this item is to:
1. Briefly summarize progress on the Housing Strategic Plan since the August 2020 Work Session;
2. Share community feedback to date on the greatest challenges and possible solutions to improve housing
affordability;
3. Introduce the initial list of potential strategies to be considered in the Housing Strategic Plan;
4. Provide an overview of the draft evaluation criteria for assessing these strategies;
5. Update Council on the direction provided by the Ad Hoc Housing Council Committee; and
6. Share next steps.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What feedback do Councilmembers have on the following:
• Engagement to date?
• Strategies identified?
• Draft evaluation criteria?
2. Do Councilmembers support bringing forward an off-cycle appropriation to initiate the Land Use Code (LUC)
work?
BACKGROUND / DISCUSSION
As outlined at the April 14, 2020 Work Session on Affordable Housing Priorities and the August 25, 2020 Work
Session on the Housing Strategic Plan, the City developed its first Affordable Housing Strategic Plan in 1999 to
stimulate housing production for the City’s low-wage earners (under 80% of the area median income, or AMI).
The current update to the Housing Strategic Plan has expanded this scope to include the entire housing
spectrum, recognizing the gap between peoples’ incomes and the cost of housing continues to widen, and current
resources are insufficient to meet our adopted goals for affordable housing production. (Attachment 1) Staff
expects to share the plan with Council for consideration of adoption on February 16, 2021. The gra phic below
outlines the progression of the Housing Strategic Plan process1:
1 Note: In the timeline graphic, the * symbol in each of the steps indicates community engagement opportunities.
December 8, 2020 Page 2
Housing Strategic Plan - Progress to Date
At the December 8, 2020 Work Session, staff will briefly revisit Step 1 (Vision) and outline actions to date on
Steps 2-4 (Greatest Challenges, Community Engagement, Strategy Identification and Draft Criteria for Strategy
Evaluation). At the January 26, 2021 Work Session, staff will share the outcome of the Strategy Evaluation (Step
5), discuss strategy prioritization (Step 6), and share the draft Plan, including indicators and metrics to evaluate
plan success as well as guiding principles for adaptive implementation. Belo w, the elements that will be
highlighted at the December Work Session are further described.
Step 1: Develop a Vision for the Plan (August)
As discussed at the August 25, 2020 Work Session, the first step in the Housing Strategic Plan process was to
establish a universal vision that will guide the selection and prioritization of strategies for the Plan. Based on the
extensive community feedback and engagement to date, the draft vision for the Plan is as follows:
Draft Vision: Everyone has stable, healthy housing they can afford
Step 2: Identify the Greatest Challenges (September)
To answer the questions of “what is the problem we’re trying to solve” and “what are our greatest chall enges to
achieving the vision,” staff compiled an Existing Conditions Assessment to summarize the current state of housing
in Fort Collins.
Six key challenges were identified:
• Challenge #1: Price escalation impacts everyone and disproportionately impacts BIPOC (Black, Indigenous,
and People of Color) and low-income households.
• Challenge #2: There aren’t enough affordable places available for people to rent or purchase, or what is
available and affordable isn’t the kind of housing people need.
• Challenge #3: The City does have some tools to encourage affordable housing, but the current amount of
funding and incentives for affordable housing are not enough to meet our goals.
• Challenge #4: Housing is expensive to build, and the cost of building new housing will likely continue to
increase over time.
• Challenge #5: It is difficult to predict the lasting effects of COVID-19 and the impacts of the pandemic.
• Challenge #6: Housing policies have not consistently addressed housing stability and healthy housing,
especially for people who rent. (Attachment 2)
The full report is available at www.fcgov.com/housing.
Step 3: Engage the Community (October/November)
With the vision and greatest challenges identified, City staff and Home2Health partners engaged nearly 450
participants in the Housing Strategic Plan process in the months of October and November. A range of safe and
accessible engagement opportunities were des igned, including Community Guide discussions led by the Center
for Public Deliberation, in-person (distanced and masked) focus groups led by the Partnership for Age -Friendly
Communities, City-led virtual workshops, and an online, asynchronous “At Your Own Pace” survey module.
Preliminary demographics show that these engagement approaches and partnerships successfully reached
historically underrepresented groups including BIPOC households, low -income households, mobile home park
residents, renters, and older adults.
Specific groups engaged. Overall, 35 workshops and small-group discussions were held during October and
November. In addition to the extensive community engagement through Home2Health and other efforts noted
above, staff has also engaged the following entities on the Housing Strategic Plan in small-group discussions:
• Affordable Housing Board • Homeward 2020
• Affordable Housing Providers (monthly) • Housing Catalyst
• Banking community • Larimer County
December 8, 2020 Page 3
• Board of Realtors • League of Women Voters
• CARE Housing, Inc. • Mi Voz
• Community Development Block Grant
(CDBG) Commission
• Natural Resources Advisory Board
(NRAB)
• Fort Collins Chamber LLAC • Neighbor 2 Neighbor
• City Staff • NoCo Housing Now
• CSU Classes
• Developers and Builders
• Economic Advisory Commission
• North Fort Collins Business Association
• Our Climate Future - Affordable Housing
Workshops
• Family Leadership Training Institute
(FLTI)
• Peer cities
• Planning and Zoning Board
• Fort Collins Sustainability Group • Board/Commission Super Issues Meeting
• Grandfamily Coalition • Urban Land Institute
• Habitat for Humanity • Many community members
• Home2Health Core Team
Values, themes and strategies identified. Building on the feedback provided prior to the start of the Housing
Strategic Plan, engagement focused on the greatest challenges identified in the Existing Conditions Assessment
and on brainstorming potential strategies to address those challenges. In general, participants responded
positively to the draft vision and felt that the challenges accurately reflected their knowledge of housing in Fort
Collins. Community values of equity, choice, and collaboration were key themes noted across the different modes
of engagement.
Specific community-recommended strategies identified included the following:
• Revamp the housing we have: Remove or relax occupancy restrictions; relax restrictions on density in
existing neighborhoods; make it easier for homeowners and developers to modify existing homes; ensure all
neighborhoods have access to amenities; explore options for “housing swaps” between older and younger
residents
• Increase the amount and type of new housing available: Incentivize developers to build affordable housing;
explore new housing types, including tiny homes and cooperative housing; build more duplexes and small
multifamily units; relax restrictions on density and building height for new buildings
• Ensure housing stability for renters and homeowners: Caps on rent prices or annual increases; explore rental
licensing to promote safe and healthy housing; preserve manufactured housing communities; explore
opportunities for resident-owned manufactured housing communities; explore opportunities to reduce cost
burden of HOAs, condominium associations, and metro districts
• Leverage funding for housing stability and sustainability: Provide rental assistance and emergency bill pay
assistance; provide financial incentives (ex: reduced fees) for developers providing affordable housing;
consider opportunities to use City land for affordable housing projects; continue to support nonprofits
providing supportive housing services
An executive summary of Home2Health fall engagement findings is included. (Attachment 3) A full analysis and
report of fall engagement will be available in early 2021.
Engagement next steps. Community engagement will continue in 2021 with opportunities to provide input on
strategy prioritization and comment on the draft Housing Strategic Plan. Staff is currently drafting educational
“Policy 101” materials to support effective community involvement in the plan adoption process and the spring
community summit.
December 8, 2020 Page 4
Step 4: Identify Strategies & Draft Criteria for Evaluation (November)
Includes two components:
• Summation of strategies identified during commun ity engagement in addition to strategies identified through
review of peer cities, leading authors, previous City reports, and support from the project’s consultant team,
Root Policy Research; and
• The development of criteria that will be used to evaluate the individual strategies, in preparation for Step 5
(Evaluate Strategies) and Step 6 (Prioritize Strategies).
It is important to note that staff is mid-way through this step - these components (strategies and criteria) will
continue to be refined through December and January in staff workshops, as well as through City Council
feedback and community engagement. Additional details regarding implementation (specific action steps,
beneficiaries, financial resources, responsible parties, etc.) will be incorpo rated after initial evaluation of each
strategy. An initial list of more than 50 strategies is included. (Attachment 4)
Strategy organization. Housing policy is first and foremost a community issue and as such, the city’s list of more
than 50 draft strategies is organized around community participants in the housing system: builders/developers,
landlords, homeowners associations, special districts and government entities, financial institutions, manufactured
housing neighborhoods, homeowners, renters, people experiencing homelessness, residents vulnerable to
displacement, historically disadvantaged populations, and other community partners. This identification metric
fosters broad access to the plan by allowing all participants, businesses, and residents to see where they “fit” in
the city’s approach to housing.
A secondary categorization is also used to describe the type of strategy being used: education/information,
revenue generation, financing, direct assistance, or policy (preservation, new constr uction, incentives,
accessibility, housing diversity).
Draft Evaluation Criteria. A number of factors are important considerations in evaluating and prioritizing specific
strategies for inclusion in the Housing Strategic Plan. Not only should strategie s be equitable, effective, and
financially feasible, they should also directly contribute to progress on the City’s current affordability goal (10% of
units affordable to 80% of AMI by 2040) and the City’s vision for housing, “Everyone has healthy, stable housing
they can afford.” Over a dozen criteria have been identified that assess whether a strategy advances the vision
and the overall feasibility of the strategy. The draft criteria and initial framework is illustrated in the Figure below .
(Attachment 5)
Additional criteria can be added to capture City priorities as desired and/or clarified (e.g., unit quantity vs depth of
affordability, priority populations, housing balance across the spectrum vs targeted approach of city funds, etc.).
December 8, 2020 Page 5
Figure 1. Evaluation Framework
Housing Strategic Plan - Remaining Steps
Step 5: Evaluate Strategies (December/January)
Strategy evaluation will be initiated in December, after Council’s feedback on the draft criteria. Root, the City’s
consultant, will be facilitating an evaluation of all preliminary strategies over a series of workshops in December
and January.
First, each strategy will be evaluated across a series of questions to confirm feasibility and alignment with City
vision: (response options are yes/no/maybe). Next, strategies will be rated for efficacy and relative cost to the city
(on a scale of 1 to 5). A final product, with all of the evaluated strategies, will be included in the final plan and in
the information provided to Council and the community for the next step in the planning process “Prioritize
Strategies” (Step 6).
Step 6: Prioritize Strategies (January 2021)
One of the early themes from community engagement before the planning process officially kicked off was t hat
priorities should be established to guide this work, especially given that there are so many areas where the
housing system can be influenced. In alignment with that feedback, once individual strategies are evaluated, City
staff will engage the community, the Ad Hoc Housing Committee, and City Council at the January 26, 2021 Work
Session to prioritize strategies. While the design for community and Council engagement on prioritization will be
developed in December, the intention is to identify high priority strategies for the community and the City to move
forward in implementation (Step 8).
December 8, 2020 Page 6
Step 7: Consider Plan Adoption (February/March 2021)
The draft plan is scheduled to be released in early January to facilitate community feedback and strategy
prioritization. Staff will make revisions based on Council and community feedback and will bring forward the final
plan for adoption consideration by Council at the February 16, 2021 meeting (Ordinance First Reading).
Step 8: Implementation
In many ways, the final step in the planning process is just the beginning of the work to ensure that everyone has
stable, healthy housing they can afford. Implementation is when community, Council and staff will transition from
“what” to “how” we achieve this vision. While specific implementation planning is still underway, the following are
slated for the spring of 2021:
• Community Summit (April or May): To support moving from the plan to implementation with the community,
staff is working with Home2Health partners to design a community summit that will focus on mapping out
implementation of the prioritized strategies in the Plan. More details on the design of this summit will come in
2021.
• Council Work Session (Late Spring 2021): After the Community Summit, staff will bring forward the outcome
of the Summit and a roadmap for implementation and ongoing tracking to City Council in a Work Session.
This is anticipated to be in May or June of 2021 (depending on the timing of the Community Summit).
Ad Hoc Housing Council Committee
In parallel with the Housing Strategic Plan update, the Ad Hoc Housing Council Committee continues to meet
monthly to explore housing-specific topics and provide recommendations to City staff and to the entire City
Council. Members of the Ad-Hoc Committee have requested pre-work before each meeting to allow time for in-
depth discussion and exploration. Meeting materials including pre -work, minutes, and recordings are available at
<https://www.fcgov.com/council/ad-hoc-housing-committee>. Committee members have also heard from
community members via question and answer periods during the September and November meetings.
Committee Meetings and Areas of Focus to Date
Committee topics have included the following:
Month Focus Outcomes
August Overall Focus and
Prioritization
Clarified focus of the Committee on the plan’s development and
diving deeply on 14 topics, as time allows.
September Existing Conditions and
Greatest Challenges
Clarity around the “problem we’re trying to solve.” Encouragement
to test the greatest challenges with the community.
October Housing Types and
Zoning
Initial list of strategies to pursue to support greater diversity of
housing types and LUC changes.
November Review: Housing Types
and Zoning Strategies
Identified in October
Explore: Strategies for
Anti-displacement and
Housing Stability
Housing Types & Zoning: Refined list of strategies to pursue as
quick(er) wins, leading to a recommendation that an off -cycle
appropriation for advancing the LUC audit be brought to the full
Council. Anti-displacement: Identification of three potential
quick(er) wins to discuss further at the December meeting.
Committee Process
At the September and October meetings, the Committee heard from community members and p eer communities
regarding their perspectives on greatest challenges, opportunities, and solutions. Beginning in October,
Councilmembers have used the following framework to discuss strategies and solutions:
December 8, 2020 Page 7
• Quick(er) wins: Were any of the strategies and solutions discussed something that could be moved forward
on immediately (within this Council term)? Are additional resources required or can it be moved forward within
existing capacity and resources?
• Transitional strategies: Are there any strategies that could be part of the Housing Strategic Plan but cannot be
moved forward within the next 5-6 months and should be highlighted in the end-of-term transition report to the
next Council?
• Transformational Strategies: Are there strategies that could be part of the plan and will take a longer time (2+
years) to develop an implementation and engagement strategy to address?
Quick(er) Wins Identified Thus Far
At the November meeting, the Committee reviewed the Housing Types and Zoning Discussion from October and
identified the following quick(er) wins:
• Adopt the Housing Strategic Plan to guide implementation and future efforts;
• Evaluate opportunities to increase and recalibrate affordable housing incentives in the LUC;
• Bring forward an off-cycle appropriation to prioritize housing-related LUC changes
The December meeting will review the strategies explored for anti -displacement and housing stability at the
November meeting, and additional quick(er) wins are anticipated to be identified. These quick(er) wins and any
additional items identified at the January Ad Hoc Meeting will be shared at the January 26, 2021 Work Session.
Additional information for the Land Use Code off -cycle appropriation. As recommended by the Ad Hoc Committee
at the November meeting, staff is seeking Council support for an off-cycle appropriation to initiate the housing-
related LUC changes outlined in the Land Use Code Audit. Staff proposes a sequence of LUC work as outlined in
a memo included in the November 12 Ad Hoc Committee packet.
This proposed sequence is summarized below:
The current update to the Housing Strategic Plan is leading the way for prioritization of LUC changes. Staff
anticipates that the Housing Strategic Plan will include recommendations for high priority LUC changes that can
then be initiated by this off-cycle appropriation. Initiating this work now, instead of delaying until January of 2022,
means that the full sequence of work associated with this LUC update could be completed in the next full budget
cycle.
Staff estimates that an appropriation of approximately $250,000-$350,000 is needed to initiate this first phase of
the Land Use Code Audit, specifically the housing-related LUC work in Q2 2021.This appropriation will be
enhanced with the addition of approximately $50,000 -$60,000 in funding through Home2Health to support
analysis of high-priority housing-related code changes and community engagement. A final determinat ion of the
scope and cost will be finalized after the January Work Session. This appropriation is expected to resource the
following:
• Identification of priority housing-related LUC changes as determined in the Housing Strategic Plan (e.g.
affordable housing incentives, changing uses or housing types allowed, encouraging missing middle housing
types, updating regulations for accessory dwelling units, etc.)
• Modeling, visualization, and analysis of potential code changes
• Drafting and legal review of code language
• Restructuring the LUC with an emphasis on chapter restructuring, consolidation, simplification
December 8, 2020 Page 8
Upcoming Ad Hoc Committee meetings
Upcoming meetings have the following focus area, subject to change based on the Committee’s direction:
• December: Reviewing the anti-displacement and housing stability strategies identified in November and
exploring two topics: (1) funding and financing for Affordable Housing, and (2) rental regulations, including
exploring existing regulations (occupancy) and approaches from other cities.
• January: Review of the strategies identified in the two December “explore” topics; Deep dive into the
evaluation of the strategies identified in the Housing Strategic Plan and initial prioritization discussion prior to
the January 26 Work Session.
• February: Deep dive on the Housing Strategic Plan prior to First Reading on February 16, 2021.
• March/April: Transition to implementation, end-of-term report, and additional topics TBD.
Next Steps
• December - Strategy evaluation, prioritization
• January 7 - Draft plan completed
• January 7-21 - Draft plan public comment period
• January 26 - Council Work Session
• February 16 - Plan adoption, first reading
• March 2 - Plan adoption, second reading
• Spring - Community summit, implementation, and alignment
ATTACHMENTS
1. Work Session Summary, August 25, 2020 (PDF)
2. Existing Conditions Assessment - Greatest Challenges (PDF)
3. Home2Health Fall Engagement - Executive Summary (PDF)
4. Housing Draft List of Strategies (PDF)
5. Draft Evaluation Framework and Criteria (PDF)
6. Powerpoint Presentation (PDF)
Social Sustainability
222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522
970.221.6758
MEMORANDUM
DATE: August 28, 2020
TO: Mayor and City Council
THRU: Darin Atteberry, City Manager
Affordable Housing Executive Team1
FROM: Lindsay Ex, Interim Housing Manager
Meaghan Overton, Senior City Planner
RE: August 25, 2020 Work Session Summary: Housing Strategic Plan Update
The purpose of this item was to provide a Housing Strategic Plan update, including the draft vision,
community engagement plan, and Ad Hoc Committee scope. All Councilmembers were present.
General Feedback
Vision: Support for the draft vision that “Everyone has stable and healthy housing they can afford,”
noting it was concise, comprehensive, and durable.
Community engagement plan
Overall support for the engagement plan, including engaging community members with
lived experience
Critical to engage builders, developers and entrepreneurs as well as the faith community
Encouragement to explore engaging in additional languages
Support for engaging Boards and Commissions, including the Economic Advisory
Commission, in the plan’s development
Encouragement to include data where possible about barriers arising due to COVID
Ad Hoc Committee Scope
Support for the overall scope, the desire to learn from other communities and experts in
these fields, and support for exploring demand-side strategies, e.g., earning capacity
Noted how complex this issue is and the need to focus on the greatest challenges, why
they exist, and what the community can do to address these. A suggestion was made to
synthesize the work into 4-5 priorities to aid in focus for future action.
Additional feedback
Support for bringing the plan forward for adoption in February 2021
Support to establish target dates, quantified goals, and measures of success to illustrate if
the work is on/off track within the Strategic Plan.
1 Jackie Kozak Thiel, Chief Sustainability Officer; Theresa Connor, Utilities Executive Director; Caryn Champine,
Planning, Development, and Transportation (PDT) Director; Julie Brewen, Housing Catalyst Executive Director;
Dave Lenz, Finance Planning and Analysis Director; Beth Sowder, Social Sustainability Director
DocuSign Envelope ID: CF3B6298-A32C-45F0-B48D-428A221D5470
ATTACHMENT 1
2
Support to continue the plan and taking action at the same time, and the importance for the
plan to include prioritized action steps. The housing needs in our community are urgent and
require both planning for the future and strategic action now. Support to continue
connecting housing and health, including stress associated with affordability, the home’s
interior, and the neighborhood scale, e.g., walkability, access to transit, feeling safe, etc.
Continue emphasizing the plan’s focus on the entire housing spectrum, with strategies for
all income levels to achieve the vision, e.g., addressing strategies for seniors such as
accessibility and community members who are lower income and leaving the community,
supporting home ownership, wealth management, and consumer education, etc.
Recognition that community members’ needs change over time and that a range of housing
choices and availability of those housing types is important, e.g., for renters, first-time
homebuyers, those who want to age in place.
Follow-up Questions
Question: Councilmembers asked if the data provided on slide 6 illustrating the growing gap
between median income and median house price was adjusted for inflation
o Response: the data are not adjusted for inflation, as this reflects the experiences of
families and community members during those years. Staff will add this footnote to
the chart and would highlight that if the numbers were adjusted for inflation, the
chart would show that adjusted median incomes would actually decline in most
years, contributing to less available purchasing power for housing today.
Question: What is the relationship between the City’s policy that supports primary job
retention and the impact on who is able to afford a home?
o Response: this will be further explored via the Ad Hoc Committee in association with
the topic “nexus between economic policies and housing affordability.”
Question: For the graphic on slide 7 in the presentation that illustrated Fort Collins had lost
nearly 3,000 households that earn less than $25K and had gained nearly 4,000 households
earning greater than $75K, Councilmembers asked staff to confirm why these gains and
losses occurred.
o Response: Staff is still analyzing this question and will include this information in the
Existing Conditions Assessment, set to be complete in September. Staff also will
include this information in an upcoming monthly memo to City Council.
Next Steps
The Ad Hoc Committee meetings will be scheduled through April of 2021. The full materials
will be shared with City Council via the Thursday packets the week before.
Monthly memos are planned to Council with progress updates. These memos will also be
shared with Boards and Commissions, such as Planning and Zoning, Affordable Housing,
Economic Advisory Commission, and Community Development Block Grant (CDBG)
Commission
Council Work Session scheduled for December 8. Tentative focus is on revising the goals,
strategies, and guiding principles that will support the overall plan, as well as an overview of
the plan that will be released for public review in January 2021.
Community engagement September thru November on the draft vision, goals, strategy
identification, and guiding principles discussion.
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Housing Strategic Plan | Existing Conditions Assessment 52
OUR BIGGEST CHALLENGES
Price escalation impacts everyone, and disproportionately impacts BIPOC households
Latinx, Black or African American, and Native American households
make up a disproportionate share of low-income households in
Fort Collins. While the wages of many low-income occupations
have climbed faster than wages overall, they still have not kept up
with the increase in housing prices. Since 2010, rents have
increased 40%, single-family detached homes have increased in
value by 125%, townhome and condo values have risen 158%,
while wages have increased by just 25%. With an ever-widening
gap between housing prices and incomes, and without further
review into possible causes and explanations for that gap, BIPOC
households could continue to be further marginalized by our housing system and suffer from the
continued effects of a gap that may be caused, at least in part, by effects of institutionalized racism, which
is further as outlined in the Equity and Inclusion Section beginning on page 3.
Current incentives and financial resources are insufficient for meeting our affordable housing goals
While the City has a number of affordable housing incentives and $1,500,000 – $3,000,000 in direct
subsidy funding every year, these resources are not enough to meet the City’s affordable housing goals.
The City is currently 708 affordable units behind in meeting its goals. Assuming a $38,970 investment by
the City yields one unit of affordable housing, it would take roughly $27,590,000 of investment to catch
up. $27,590,000 of direct subsidy represents 9 – 18 years of resources at current funding levels. This also
assumes LIHTC prices remain steady, there is ample PAB allocation for each project, and private
developers have the ability to deliver projects. In addition, recommendations from the Land U se Code
Audit indicate that current land use incentives (e.g. increased density, parking reductions) for affordable
housing need to be revised and recalibrated. Every year that passes where the City does not meet its
affordable housing goals means current and future generations must make up the difference.
Job growth continues to outpace housing growth
Jobs grew at 2.8% per year from 2010 to 2019. The Fort Collins population only grew by 1.6% annually
during the same timeframe. While the housing stock of Fort Collins grew by 1.73% from 2010 – 2019, this
is still a slower pace of growth than experienced by the job market. Unemployment initially fell from 7%
to 3% between 2012 and 2015 and has held steady below 3% since 2015. All of these factors indicate that
most new jobs find someone to fill these positions. If new housing supply cannot keep up with the pace
of job growth, people are likely forced to live in surrounding communities. Timnath, Wellington, and
Windsor grew by 18, 8.7, and 7 percent, respectively from 2015 – 2018. These communities amongst
others are turning into bedroom communities for Fort Collins. As of 2015, 18,799 car trips started in
communities with cheaper home prices than Fort Collins. Some of these commuters live in nearby
communities by choice. It is likely, however, that many of these commuters cannot afford to live in Fort
Collins and must live in surrounding communities. This is an example of the “drive till you qualify” effect.
Data clearly indicate BIPOC
communities are disproportionally
low-income, have smaller net
worth, and are less likely to be
homeowners. While structural
racism is evident across the United
States and more locally, more work
is needed to establish the exact
cause of these disparate outcomes
here in Fort Collins.
1
ATTACHMENT 2
Housing Strategic Plan | Existing Conditions Assessment 53
This runs counter to the inclusive vision outlined by City Plan and the City’s climate action goals amongst
others, e.g., the City’s goals include reducing VMT (vehicle miles travelled); when individuals have to drive
further to meet their housing needs, VMTs are increasing instead of decreasing.
The cost of development continues to rise
In isolation, housing regulations help deliver the kind of development and community desired by the Fort
Collins community. Developers pay for the impact their developments have on the community through
various fees, and regulations help ensure consistency across all kinds of new housing development. The
unintended consequence of regulations on housing coupled with impact fees in Fort Collins is that new
housing ends up being unattainable for most households. Fees for infrastructure, water, and development
review continue to rise as resources become scarcer and developments become more complex. Whereas
in 2015 the average cost to build a unit of housing was around $278,000, today it costs close to $330,000.
Median income households can only afford a home priced at around $330,000. Developers build housing
for a profit and thus cannot build new homes for sale below $330,000 without some form of subsidy. In
addition, the Land Use Code Audit identified many places where existing regulations could be revised or
clarified to better encourage a wide range of housing options. However, rewriting the Land Use Code is a
complex, resource-intensive task that will require funding to complete. Complicating this picture is the
finite natural resources and land in Fort Collins. Water will only continue to be scarcer and more
expensive. Within our GMA, Fort Collins has a limited supply of land. This all means it will only become
more expensive to develop in Fort Collins. A dollar spent today on housing will go further than a dollar
spent on housing in ten years.
Addressing the entire housing spectrum will require new tools and processes
Previous housing plans in Fort Collins have been focused on subsidized, deed-restricted affordable
housing for residents making 80% AMI or less. City incentives, regulations and processes target the
construction, expansion, and preservation of affordable housing that meets this definition. As this Existing
Conditions document outlines, however, our existing tools are not enough to achieve our affordable
housing goals. Federal funding like Low Income Housing Tax Credits (LIHTC), HOME, and CDBG funds only
support units targeted at households earning less than 80% AMI. Further, escalation in housing prices and
rents means that it is increasingly difficult for many to afford housing in Fort Collins, even if they make
more than 80% AMI. City policies and regulations also do not address housing stability and health in a
systematic way. A key challenge for this Housing Strategic Plan will be to determine the appropriate
incentives, regulatory frameworks, and processes needed to fully achieve the vision for stable, healthy
housing that people across the housing spectrum can afford. Implementation of these new tools will
likewise be a critical challenge. Fort Collins will have some important decisions to make about whether
and how to dedicate additional funding to housing incentives, implement changes to the Land Use Code,
and adjust our processes to fully support the vision of the Housing Strategic Plan.
2
Housing Strategic Plan | Existing Conditions Assessment 54
REMAINING QUESTIONS
What will the lasting effects of COVID -19 be?
COVID-19 has cast a shadow of uncertainty over many facets of life. Unemployment has soared into
double digits, leaving many without a stable income for the time being. While the CARES Act did provide
enhanced unemployment benefits and a one-time stimulus to households earning less than $100,000, it
is unclear what the medium and long-term financial prospects are for households impacted by COVID-19.
Previous recessions have seen increased rates of foreclosures and evictions. Recovery is also uncertain
since this current recession is in direct response to a pandemic. Recovery will depend on the availability
of a viable vaccine, continued physical distancing, how fast businesses recover, and many other factors.
This makes predicting the lasting effects of COVID-19 difficult.
How will housing policies evolve to address health a nd stability - particularly for renters - in addition
to affordability?
What does it mean for all residents to have healthy and stable housing? With only 1 in 10 renters being
able to afford the median home price is Fort Collins, how will the City support its nearly 50% of households
that are renters? Today, the City has several programs available to support households, e.g., income -
qualified programs, Healthy Homes, Landlord and Tenant Information, and more, and has recently
supported increased rights for manufactured homeowners (who own the home but rent or lease the
land). Since fewer households in Fort Collins own homes than in the past, housing policies also need to
evolve to better support renters in our community.
As noted on page 50, the current zoning does not meet demand for housing supply. Further, Fort Collins
limits the number of unrelated people that can occupy a home (referred to as U+2). While many consider
U+2 to be essential and a success story in preserving neighborhood character, it is unclear to what extent
U+2 impacts the housing market. More study would shed light on how U+2 impacts the local housing
market and how it might be modified to meet its intent without impacting the affordability of housing.
The Housing Strategic Plan will include the entire spectrum of housing and will recognize the critical role
of rental housing within the housing system. This will require careful consideration of new policies that
could improve housing stability and health for renters.
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HOUSING STRATEGIC PLAN FALL 2020 ENGAGEMENT SUMMARY
Prepared by Cactus Consulting, LLC in partnership with the Home2Health team HOW WE GOT HERE The City is updating the Housing Strategic Plan. This plan sets housing goals and guides City decisions on policy and funding for the housing system. While previous plans have focused on income-qualified Affordable Housing, this update to the Housing Strategic Plan will address the entire spectrum of housing needs in our community. The draft vision – Everyone has stable, healthy
housing they can afford – reflects this shift. The City reviewed data on housing in Fort Collins and community feedback gathered through the Home2Health project and identified six key challenges related to housing. These included not enough affordable housing, high building costs, and unequal outcomes for BIPOC (Black, Indigenous, and People of Color) and low-income households. The Housing Strategic Plan team designed safe and accessible engagement opportunities to gather feedback on the challenges and ideas for overcoming them. This included Community Guide discussions, in-person (distanced and masked) focus groups, virtual workshops, and a survey. Through these approaches, the City was able to gather feedback from over 440 participants in October and November of 2020. Preliminary demographics show that these activities helped reach BIPOC households, low-income households, mobile home park residents, renters, and older adults. Over the last few months many people have been working diligently on gathering community feedback on this new plan. However, it is important to note that this summary is also built on the shoulders of many engagement efforts conducted over the past two years. Community members have consistently talked about the importance of housing to a healthy environment, an equitable community, and to the physical and mental health of individuals. COMMUNITY VALUES FOR HOUSING Community members responded positively to the draft vision: “Everyone has healthy, stable housing they can afford.” Responses from community members also highlighted important values that should be included in plans for addressing housing challenges in our community.
Equity. Folks want a diverse community where teachers, hairdressers, and essential workers can afford to live, and where BIPOC households do not face discrimination. People discussed the importance of creating specialized, “wraparound” support systems so people can find and keep homes. Many also highlighted the need for more accessible housing for seniors.
Choice. People recognized that different households have different housing needs. They prioritized having options for the types of housing they rent or buy. This includes different types,
1
ATTACHMENT 3
sizes, and prices of “market housing” (non-subsidized) and different types of subsidized and/or supportive housing. Many also highlighted the importance of neighborhood amenities (transportation, outdoor spaces) in making their housing choices.
Collaboration. Folks recognized that a challenge like housing requires community-wide action. Many of the ideas for addressing housing challenges would require changes to local or statewide policies. However, responses also highlighted the importance of bringing in nonprofits, developers, and local employers. Respondents also recognized the need for public awareness and education to build community-wide support for doing things differently. COMMUNITY RECOMMENDATIONS FOR HOUSING STRATEGIES Community members generally felt that the six housing challenges reflected their experience of housing in Fort Collins. Participants suggested a variety of strategies to overcome these challenges and help everyone in Fort Collins have healthy, stable housing they can afford. These strategies are grouped into four categories—Revamp the housing we have, Increase the amount and types of new
homes, Ensure housing stability and safety for renters and homeowners, and Leverage funding for
housing stability and sustainability. Under each heading is a list of recommended actions from the community. These will be further explored in the full report in early 2021. Revamp the housing we have
Who: Local government agencies, builders/developers, nonprofits, homeowners’ associations (HOAs), landlords, community members
Community Recommendations: Remove or relax occupancy restrictions ⧫ Relax restrictions on density in existing neighborhoods ⧫ Make it easier to modify homes ⧫ Ensure all neighborhoods have access to amenities ⧫ Explore options for “housing swaps” between residents Participants saw zoning and occupancy restrictions as a significant barrier to having enough housing, and to having housing that is affordable for all residents. Many folks supported repealing “U+2”, which limits the number of unrelated people who can live in a house. This was seen as a potential benefit for people of all ages living on single incomes, and an opportunity to “free up” additional homes for rental or purchase. Community members also suggested relaxing restrictions on density (or the number of homes in an area) and removing other limitations in the Land Use Code to allow homeowners and developers to renovate or add to existing homes. This includes adding Accessory Dwelling Units (carriage houses, in-law apartments, etc.) or converting single-family houses into duplexes. Another suggestion was to institute “housing swaps” between older individuals looking to downsize and young families looking for more space. Finally, community members shared the importance of ensuring that all neighborhoods have access to quality amenities, including outdoor spaces and convenient public transportation.
2
Increase the amount and types of new homes available
Who: State and local government agencies, builders/developers, financial institutions, nonprofits
Community Recommendations: Incentivize developers to build affordable housing ⧫ Explore new housing types, including tiny homes and cooperative housing ⧫ Build more duplexes and small multifamily units ⧫ Relax restrictions on density and building height for new buildings Community members emphasized the need for new housing options that people can afford on a typical salary, rather than “luxury” homes or apartments. Some also expressed a desire for options that go beyond the “traditional” single-family home, including more duplexes, small multi-family developments, tiny houses, and cooperative housing. Folks discussed strategies to encourage developers to build more affordable, diverse types of housing, including waiving fees, providing other financial incentives, or requiring that a certain percentage of all new developments be affordable. Policies to allow more density or higher buildings (with elevators) were also suggested to increase the supply of housing in town. Ensure housing stability and safety for renters and homeowners
Who: State and local government agencies
Community Recommendations: Caps on rent prices or annual increases ⧫ Explore rental licensing to promote safe and healthy housing ⧫ Preserve manufactured housing communities ⧫ Explore opportunities for resident-owned manufactured housing communities ⧫ Explore opportunities to reduce cost burden of HOAs, condominium associations, and metro districts There was a strong desire among community members to reduce the burden of housing costs on households in Fort Collins. Participants expressed frustration that landlords could set and increase prices without any oversight, and suggested regulations at the state or local level that would limit maximum rent prices, reduce extra fees, and/or limit maximum annual increases. Folks also expressed concern about the monthly fees from HOAs, condominium associations, mobile home parks, and metro districts inflating the cost of home ownership. People also shared negative experiences with landlords who did not maintain their homes. Some expressed fear that asking landlords to maintain homes would invite retaliation or encourage the landlord to raise the rent. A rental licensing program was suggested as an option to put housing protections in place and ensure housing is safe and healthy. Residents of manufactured housing communities also discussed the need for park preservation, and the desire to work towards more resident control and ownership of communities. Many owners of manufactured housing discussed struggling with costs despite owning their home because of perpetual increases in lot rent, costly utility bills, and frequent fees.
3
Leverage funding for housing stability and sustainability
Who: Local government agencies, nonprofits
Community Recommendations: Provide rental assistance and emergency bill assistance ⧫ Provide financial incentives (ex: reduced fees) for developers providing affordable housing ⧫ Consider opportunities to use City land for affordable housing projects. ⧫ Continue to support nonprofits providing supportive housing services Folks recognized that current funding levels were not adequate to meet the housing needs in our community, and discussed the importance of balancing the very immediate need to keep people’s housing stable with the longer-term need to fund the housing options people want and need in our community. In general, community members prioritized “gap funds” for low-income folks needing assistance to make ends meet and subsidized housing for low-income households. Assistance for middle-income earners was suggested through financial incentives to developers to provide housing at a lower cost. There was some support for City-led development of subsidized housing or “tiny home” sites, but largely folks did not see the City as a major supplier or manager of affordable housing. Participants praised the hard work of nonprofits in this arena, and expressed support for bolstering their funding and expanding services to meet the needs of specialized populations, including seniors raising grandchildren, immigrant and refugee families, and people who were incarcerated. Next Steps In Fort Collins, our vision for housing – everyone has safe, stable housing they can afford – is not a reality for everyone. Realizing this vision and overcoming the complex challenges of our housing system will require big, community-wide solutions. Overall, these responses suggest that the community is ready to do things differently. Several of these suggestions still require investigation and conversation. For example, there was a perception among participants that “investment buyers” were unfairly driving up prices and reducing opportunities for home ownership by buying homes to rent out. More data is needed on the impact of investment buying in Fort Collins to understand the right balance between promoting home ownership and increasing rental supply. People also recognized that removing U+2 and/or increasing density in neighborhoods may be a challenging transition and could be unpopular with some homeowners. Community dialogue will be necessary to negotiate any potential changes. These community voices, values, and ideas have provided a starting point for the Housing Strategic Plan’s efforts. Community voices—particularly those of BIPOC and low-income households—should continue to be a fundamental part of the evaluation of strategies to ensure that the transition from feedback to policy is as smooth as possible.
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1
MEMORANDUM
To: Fort Collins HSP Team
From: Mollie Fitzpatrick, Root Policy Research
Re: Preliminary Strategy Review
Date: November 19, 2020; Revised November 23, 2020
This memo describes the structure of preliminary strategies recommended for
consideration as part of Fort Collins’ plan to address the full spectrum of housing needs.
Strategies will continue to be refined through December and January in staff
workshops, City Council feedback, and community engagement.
Strategy toolkit. The following toolkit of strategies reflects preliminary
recommendations for consideration as part of the Fort Collins Housing Strategic Plan.
Preliminary strategies are based on findings and recommendations in previous City
reports,1 best practices in peer and leading communities, stakeholder and resident
outreach, as well as the research and expertise of city staff. Additional details regarding
implementation (specific action steps, beneficiaries, financial resources, responsible
parties, etc.) will be incorporated after initial evaluation of each strategy.
Strategy “buckets.” Housing policy is first and foremost a community issue and
as such, the city’s strategies are organized around community participants in the
housing system: builders/developers, landlords, homeowners associations, special
districts and government entities, financial institutions, manufactured housing
neighborhoods, homeowners, renters, people experiencing homelessness, residents
vulnerable to displacement, historically disadvantaged populations, and other
community partners. This identification metric fosters broad access to the plan by
allowing all participants, businesses, and residents to see where they “fit” in the city’s
approach to housing.
A secondary categorization is also used to describe the type of strategy being used:
education/information, revenue generation, financing, direct assistance, or policy
(preservation, new construction, incentives, accessibility, housing diversity).
Figure 1 (beginning on the following page) shows the organizational structure, along
with the preliminary strategies proposed for evaluation.
.
1 2020 Land Use Code Audit, 2020 Analysis of Impediments to Fair Housing Choice, Homeward 2020
ATTACHMENT 4
2 Figure 1. Preliminary Strategy Recommendations Impacted Players in the Housing System Proposed Strategy HOAs Landlords Builders/ Developers Finc. Institutions Special Districts & Gov’t Entities Manufactured Housing Nhbds Home-owners Renters People Experiencing Home-lessness Residents vulnerable to dis-placement Historically dis-advantaged populations Other Partners Education, Communication, and Information 1 Refine local affordable housing goal. The City has already adopted a broad goal of 10% affordable at 80% AMI. Consider formal adoption of subgoals (e.g., 10% of rental units affordable to 60% AMI; 5% of owner units deed restricted and affordable to 100% AMI) to help set expectations for developers as they negotiate agreements with the city and establish more specific targets for the city to monitor progress. X X X X X X X X X X X X 2 Improve resident access to housing information and resources. Language access plan; tenant rights/responsibilities; fair housing rights and complaint process; affordable housing goal/policy tracker; housing equity; resource/program information; affordable housing database and/or search engine; partner agencies housing services. X X X X X X X X X X X X 3 Promote inclusivity, housing diversity, and affordability as community values. PR campaign and/or communications related to density, structural racism, need for affordable housing, myths about affordable housing, etc. Could also use "tactical urbanism" strategies as part of this effort. X X X X X X X X X X X X 4 Support community organizing efforts in manufactured home communities and access to resident rights information. X X X X X X X 5 Assess displacement and gentrification risk. City staff can use the work other communities do in this space as a guide for building our own index for displacement and gentrification risk using readily available data (Census, American Community Survey, etc.). This information can be used to help promote and target anti-displacement resources/programs, pair such resources with major capital investments, and guide community partnerships. X X X 6 Conduct a condition review and ownership survey of existing, aging multi-family housing stock. Identify building rehab needs, rental trends, which buildings have opportunities to leverage historic property funding, etc. X X X 7 Conduct economic productivity analysis of selective case study neighborhoods based on date of development (e.g. Old Town North with Harvest Park and an example from the lower end of LMN density spectrum) X Community Partnerships, Governance, Equity-Centered Implementation 8 Regularly assess existing housing policies and programs to ensure they are effective, equitable, and aligned with vision. Begin with a comprehensive review of current programs/policies using the Government Alliance on Race & Equity Racial Equity Toolkit. All strategies proposed in this Housing Strategic Plan will also be evaluated through an equity and efficacy lens. X X X X X X X X X X X X 9 Consider extending the city’s affordability term. The City’s current affordability term for projects receiving City funding or incentives is 20 years but many cities use longer terms, commonly 30 up to 60 years. (Affordability term refers to the period over which affordable housing is income restricted, after which its deed restriction expires and it can convert to market-rate). X X X X
3 10Conduct a formal Disparity Study to evaluate the prevalence of inequities in the housing system in Fort Collins. In collaboration with the City Attorney’s Office, this study could research current and historic documents, e.g., deeds, subdivision plats, policies and programs, to understand the root causes of inequities and disparities in Fort Collins. X X X X X X X X X X X X 11Provide staff and those involved in the housing process with unconscious bias training to ensure all community members are treated equally in processes. X X 12Create an anti-displacement committee, which would review opportunities to pair anti-displacement strategies with major public investments to mitigate the unintended consequences of such investments on residential displacement. X X X X 13Improve access to interpreters/translators and City programs, especially in Spanish and consider other languages X X X X X X 14Embed partnerships and associated funding into all housing strategies to adequately compensate for expertise X 15Identify opportunities for communities to be decision makers, e.g., participatory budgeting X X X X X Dedicated Revenue Stream(s) for Affordable Housing 16Extend sales tax dedicated to Affordable Housing Capital Fund (due to sunset in 2025). X X X X X X X X 17Create a new dedicated revenue stream to fund the Affordable Housing Fund. Trust funds have grown immensely in popularity with reductions in federal funding for housing coupled with rising needs across communities. Local funds can support a variety of affordable housing activities, have fewer restrictions and are easier to deploy than federal or state dollars. Revenue sources are varied and include: X X X X X X X X X X X X 17a Linkage fees (commercial and/or residential) or impact fees (paid by new development). A linkage fee policy was reviewed by City Council in 2020 and was suggested to move forward in the next fee review and update (est. 2021). X 17b General Obligation Bonds X X 17c Cash in Lieu fees from inclusionary housing buyouts (if implement IH) X 17d Dedicated property or sales tax X X X X 17eDemolition tax X X 18Consider affordable housing requirements/funding as part of metro districts. The city is already working on a specific recommendation for this strategy. X X 19Consider affordable housing requirements/funding as part of TIF districts in Urban Renewal Areas. X X 20Explore funding options through linked, but non-traditional sources, such as health agencies/foundations and/or social impact bonds. These innovative financing strategies are becoming more common and aim to leverage the savings created by stable, affordable housing but realized in other sectors (lower medical, social service, and justice costs). X Financing for New Construction and Preservation 21Partner with local Community Development Financial Institution (CDFI) to offer gap financing and low cost loan pool for affordable housing development. X 22Continue to pursue public-private partnerships and consider a dedicated staff member who would focus on cultivating such opportunities. X X X X
4 23Work with developers to better understand the financing barriers to missing middle projects and consider partnerships with financial institutions (CDFI, credit unions, and banks) to address such barriers. X X 24Consider formation or partnership opportunities for a socially conscious Real Estate Investment Trust (REIT) to fund projects aligned with the city's housing vision and goals. X X Technical/Direct Assistance 25Increase funding for financial literacy, credit building, and homebuyer education for residents. Some CDBG funding is allocated to supporting nonprofits that are providing this service but additional funding would increase capacity. Opportunities should be available in both English and Spanish and should be affirmatively marketed to historically disadvantaged populations and demographic groups with disproportionately low rates of homeownership. X X X X X X X 26Foreclosure and eviction prevention and legal representation. Housing Counseling generally takes the form of providing assistance with mortgage debt restructuring and mortgage and/or utilities payments to avoid foreclosure; short-term emergency rent and utilities assistance for renters. Cities often partner with local nonprofits experienced in foreclosure counseling. Landlord-tenant mediation is similar but generally conducted by local Legal Aid for more involved disputes between the landlord and tenant. CARES Act funding is currently dedicated to a legal defense fund for renters but additional resources are necessary to carry this strategy beyond the duration that CARES resources allow. X X X X X X X 27Home rehabilitation. Grants or loans to assist low income homeowners and (less common) multifamily property owners with needed repairs. Can be emergency repairs or maintenance needed to preserve homes. X X 28Consider a mandated rental license program for long-term rentals and pair with best practice rental regulations. Having a rental registration or license program (a program in which landlords are required to obtain a license from the city) makes it easier to implement and enforce a variety of renter protections, promote best practices to landlords, and identify problem landlords. Specific efforts promoted through such programs include landlord education (fair housing or other), standardized lease agreements in English and Spanish, application fee reasonableness requirements, "just cause" evictions, source of income protection enforcement, housing quality standards, etc. Can include a modest fee to cover program cost, e.g., recent research suggests these fees range from approximately $0 to $110/unit, though fee frequency, determination, etc. varies by jurisdiction. X X X X X X Policies Preserve Existing Affordable Housing and Naturally Occurring Affordable Housing 29Public Sector Right of First Refusal for Affordable Developments. Typically requires owners of affordable housing notify the public sector of intent to sell or redevelop property and allow period of potential purchase by public sector or non-profit partner. X X X X
5 30Tenant right of first refusal for cooperative ownership of multifamily or manufactured housing community. Laws that give tenants the right to purchase a rental unit or complex (including a manufactured housing community) before the owner puts it on the market or accepts an offer from another potential buyer. Laws typically allow residents to assign their “right of first refusal” to other entities, such as nonprofit partners that help the residents form a limited equity cooperative, or affordable housing providers that agree to maintain the property as affordable rental housing for a set period of time. Note that this provision already exists for manufactured housing communities under the Colorado Mobile Home Park Residents Opportunity to Purchase (HB20-1201 passed in June 2020). X X X 31Acquisition/ rehabilitation of naturally occurring affordable housing. In this strategy nonprofits or for-profit affordable housing developers purchase privately-owned but low-priced housing options, or subsidized units with affordability periods ending (“at risk” affordable housing). Owners make needed improvements and institute long- term affordability. At-risk housing stock may include private rentals with rising rents, manufactured housing parks, or lower-cost single- family homes and real estate owned (REO) properties. Rental properties can be maintained as rental or convert to cooperative ownership. Ownership properties can be resold to lower-income families or leased as affordable rentals. City role in this strategy could include acquisition, capital to subsidize non-profit purchase, or rehabilitation loans. X X X X X 32Small landlord incentives. Public sector incentives that encourage small landlords to keep units affordable for a period of time in exchange for subsidized rehabilitation or tax or fee waivers. Requires identification of properties through rental registration. Could also be applied to current vacation rentals for conversion to longer term permanent rentals. X X X Support New Construction of Affordable Housing 33Bolster city land bank activity by allocating additional funding to the program (contingent on adopting additional revenue stream policy). Begin with inventory and feasibility of publicly owned land in city limits and growth management area. Also consider underutilized commercial properties that could be used for affordable housing. Continue effective disposition of existing parcels to affordable housing developers and land trust partners. X 34Inclusionary Housing. Policies that require or incentivize the creation of affordable housing when new development occurs, either within same the development or off-site. Some inclusionary housing ordinances allow the developer to pay fees "in lieu" of developing the affordable units. Colorado state law currently prohibits Inclusionary Housing for rental but it is an option for owner-occupied developments; and the state will be considering repealing the prohibition on inclusionary rental ordinances in the 2021 session. X 35Evaluate opportunities for affordable housing components in Capital Improvement Projects. Could be achieved through land donations, development agreements, and/or partnerships with affordable housing developers. If adopt an anti-displacement committee (see #10 above), involve that committee in this process. X X X Incentivize Private Development to Create Affordable Housing and Other Community Benefits 36Community Benefit Agreements. Agreements negotiated among community groups, a municipality and a developer that require specific terms in exchange for local support and/or planning approvals. CBAs aim to mitigate impacts of the X X X X X
6 project through local benefits like workforce training, local hiring targets and affordable housing investment. 37Incentivize energy efficiency, water conservation, and other green building practices in alignment with Our Climate Future Big and Next Moves Incentives can include fee waivers, variances, density bonuses, etc. X 38Recalibrate existing incentives to reflect current market conditions (existing incentives include fee waivers, fee deferral, height bonus, density bonus, reduced landscaping, priority processing). Conduct a detailed review of the current financial benefit of existing incentives relative to their requirements and evaluate applicability by income level and geography. Based on that analysis, recommend changes to incentive structure and applicability to increase efficacy. X 39Create additional development incentives for affordable housing. Development incentives are tied to a commitment to produce an agreed-upon share of affordable units (can be rental or owner). Most policies mandate set asides of between 10 and 30 percent, depending on the market, and set affordability periods between 15 and 99 years. Incentives can take many forms; see below: X 39a Expand density bonus program to apply in other zone districts (currently limited to LMN zone). Program would need to be calibrated for a variety of zones. X 39b Annexation approval tied to development of affordable housing. X 39c Building variances (can apply to setbacks, lot coverage, parking requirements, design standards, open space dedication, etc.) X Increase Supply of Accessible Housing 40Buydown of ADA/accessible units. Provide subsidies to persons with disabilities who cannot afford market-rate accessible rentals, most of which are in multifamily developments built after 1990 (post Americans with Disabilities Act, or ADA). X X 41Visitability policy. Require or incentive developers to make a portion of developments "visitable," meeting design standards that allow easy visitation by mobility impaired residents (one zero step entrance, 32-inch doorways, and bathroom on the main floor that is wheelchair accessible). Visitable design has been shown to add no additional cost to developers; it can be incentivized using a variety of incentives similar to affordability incentives (e.g., fee waivers/deferrals, priority processing, density bonuses, variances, etc.). X Allow the market to respond to a variety of housing preferences 42Remove barriers to the development of Accessory Dwelling Units. Allow by right in all residential zone districts (in process per the 2020 LUC audit); reduced (or waived) tap fees and other development fees; consider development of a grant program for low and moderate income owners; evaluate feasibility of ADUs by lot to determine if there are overly burdensome standards related to lot coverage, setbacks, alley access, etc. and address those barriers as necessary. X 43Revise occupancy limits and family definitions. Occupancy limits and narrow family definitions often create unintended constraints on housing choice and options, including cooperative housing opportunities for seniors and people with disabilities desiring to live with unrelated adults in a single family home setting. Occupancy limits can also pose fair housing liabilities to the extent that they have a disparate impact on people with disabilities. Current best practices are to allow up to 8 unrelated or to base occupancy on building code requirements instead of family definitions. X X X X X
7 44Calibrate tap fees and other development fees to encourage product diversity and the production of smaller footprint homes (which are more likely to carry market-rate affordability). Per unit and per tap fees incentivize large and/or luxury development so that developers can recover fee costs through higher market prices. Fees can be scaled in tiers and/or by square footage, making it easier for developers to recover the cost of the lower fees of smaller homes with lower market prices. The city currently scales fees by bedroom and lot size and consideration of additional granularity is currently in process. X 45Remove barriers to allowed densities through code revisions. As noted in the 2020 LUC Audit, barriers to fully realizing allowed densities include multifamily unit number maximums, square footage thresholds for secondary or non-residential buildings, and height limitations that restrict the ability to maximize compact sites using tuck-under parking. Such requirements should be recalibrated or removed entirely. X 46Assess how metering and tap requirements may impact housing type diversity. Reasonableness considerations for ADUs, missing middle, manufactured housing communities, etc. X X X 47Increase awareness & opportunities for collaboration across water districts and other regional partners around the challenges with water costs and housing. X X Continue the City's ongoing efforts to implement recommendations from current housing-related studies and other City efforts: 482020 Land Use Code Audit Recommendations. Create more opportunities for a range of housing choices2. Define a range of options between two-family and multi-family housing3. Clarify definition of and opportunities for Accessory Dwelling Units (ADUs)4. Remove barriers to allowed densities5. Incentivize affordable housing projects6. Clarify and simplify development standards7. Consolidate like standards and definitions and make them more broadly applicable8. Increase flexibility9. Recalibrate incentives to reflect current market conditions10. Align Design Manual with updated development standards X X X 492020 Analysis of Fair Housing Choice Action Steps 1. Strengthen fair housing information, educational and training opportunities. 2. Improve the housing environment for people with disabilities 3. Support efforts to improve residents’ establishment and building of credit. 4. Support programs, projects, and organizations that improve housing access and affordability. 5. Continue to pursue infrastructure and public amenity equity. 6. Pursue public engagement activities to inform Land Use Code and policy updates through Home 2 Health. X X X 50Homeward 2020 (TBD upon release of report, intent is to align the strategies from the 10-year Homeward 2020 effort within the Housing Strategic Plan) X X X 51Continue to align housing work with other departmental plans and programs to leverage more funding resources and achieve citywide goals. X X Source: City of Fort Collins and Root Policy Research.
MEMORANDUM
To: Fort Collins HSP Team
From: Mollie Fitzpatrick, Root Policy Research
Re: Preliminary Strategy Review
Date: November 19, 2020; Revised November 23, 2020
This memo describes the evaluation framework of preliminary strategies recommended
for consideration as part of Fort Collins’ plan to address the full spectrum of housing
needs.
Criteria will continue to be refined through December and January in staff
workshops, City Council feedback, and community engagement.
Evaluation framework. A number of factors are important considerations in
evaluating and prioritizing specific strategies for inclusion in the Housing Strategic Plan.
Not only should strategies be effective and financially feasible, they should also directly
contribute to progress on the city’s current affordability goal (10% of units affordable to
80% of AMI by 2040) and the city’s vision for housing, “Everyone has healthy, stable
housing they can afford.” Root will be facilitating a staff evaluation of all preliminary
strategies over a series of workshops in December and January.
First, each strategy is evaluated across a series of questions to confirm feasibility and
alignment with City vision: (response options are yes/no/maybe). Next, strategies are
rated for efficacy and relative cost to the city (on a scale of 1 to 5). Root recommends
that strategies be re-evaluated every 3 years in concert with evaluating outcomes (i.e.,
are the strategies working?).
Figure 1, on the following page, illustrates the evaluation framework.
ATTACHMENT 5
Page 2
Figure 1. Evaluation Framework
Note: Additional criteria can be added to capture city priorities as desired and/or clarified (e.g., unit quantity vs depth of
affordability, priority populations, housing balance across the spectrum vs targeted approach of city fu nds, etc.).
Source: City of Fort Collins and Root Policy Research
Evaluation Framework Ex. StrategyEx. StrategyDoes this strategy create/preserve housing affordable to 80% AMI or less (City-
adopted goal for affordability)?yes
Does this strategy enhance housing stability?maybe
Does this strategy promote healthy neighborhoods/housing?yes
Does this strategy increase equity in the following ways…
Address housing disparities?yes
Increase accessibility?no
Increase access to areas of opportunity?maybe
Promote investment in disadvantaged neighborhoods?yes
Mitigate residential displacement?yes
Does this strategy address highest priority needs (to be defined by sub-goal
development)?maybe
Does this strategy increase housing type and price-point diversity in the city?yes
Does the city have necessary resources (financial and staff capacity) to implement
administer and monitor?yes
Does this strategy have community support?yes
Can the City lead implementation of this strategy (or does it require state/regional
leadership and/or non-profit or partner action)?yes
If no, are partnerships in place to lead implementation?n/a
Does this strategy help advance other community goals (e.g., climate action, water
efficiency, etc.)?yes
How effective is this strategy in achieving the desired outcome (on a scale of 1 to 5
where 1 is not at all effective is 5 is very effective)?4
How resource intensive is this strategy (on a scale of 1 to 5 where 1 is no cost is 5
is very high cost)?2
Rating scales for efficacy and cost
Respond to each question with yes, maybe, or no:Vision CriteriaFeasibility Criteria
1Housing Strategic Plan Work SessionJackie Kozak Thiel, Caryn Champine, Lindsay Ex, Meaghan OvertonDecember 8, 2020ATTACHMENT 6
Questions for Consideration2What feedback do Councilmembers have on the following: • Engagement to date?• Strategies identified?• Draft evaluation criteria? Do Councilmembers support bringing forward an off-cycle appropriation to initiate the LUC work?
CITY PLAN•Principle LIV 5: Create more opportunities for housing choices•Principle LIV 6: Improve access to housing …regardless of their race, ethnicity, income, age, ability, or backgroundStrategic Alignment3COUNCIL PRIORITIES• Affordable and Achievable Housing Strategies• Equity and Inclusion• Reimagining Community Engagement STRATEGIC OBJECTIVESNeighborhood Livability & Social Health•NLSH 1.1 Improve and increase…housing… affordable to a broad range of income levels.
Step 8: Implement* (Spring +)Step 7: Consider Adoption* (Feb/Mar)Step 6: Prioritize Strategies* (Jan)Step 5: Evaluate Strategies(Dec)Step 4: ID Strategies, Criteria (Nov/Dec)Step 3: Engage Community (Oct/Nov)Step 2: Greatest Challenges (Sep)Step 1: Vision (Aug)Housing Strategic Plan ProcessProgress to Date50+ Strategies Identified Thus FarConsultant SupportCommunity Engagement, Priorities Peer Cities & Leading Authors
Step 1: Draft Vision5Everyone has healthy, stable housing they can afford
Challenge #1:Price escalation impacts everyone & disproportionately impacts BIPOC* and low-income households.Challenge #2:There aren’t enough affordable places available for people to rent or purchase, or what is available and affordable isn’t the kind of housing people need.Challenge #3:The City does have some tools to encourage affordable housing, but the current amount of funding and incentives for affordable housing are not enough to meet our goals.Challenge #4:Housing is expensive to build, and the cost of building new housing will likely continue to increase over time.Challenge #5:It is difficult to predict the lasting effects of COVID-19 and the pandemic’s impacts.Challenge #6: Housing policies have not consistently addressed housing stability and healthy housing, especially for people who rent.6Step 2: Greatest Challenges*Black, Indigenous, and People of Color
Step 3: Community Engagement7“At your own pace” modulePartner-led engagement(12)City-led virtual workshops + presentations (24)Previous City engagement effortsCommunity Guide DiscussionsNearly 450 community members engaged in just over two months!
Step 3: Community Engagement8What We've Heard:Overall support for draft visionChallenges accurately reflect people's knowledge and experience Key values – Equity, Choice, CollaborationThemes:oRevamp the housing we haveoIncrease the amount and type of new housing availableoEnsure housing stability for renters and homeownersoLeverage funding for housing stability and sustainability
50+ Strategies Identified Thus FarConsultant SupportCommunity Engagement, Priorities Peer Cities & Leading AuthorsStep 4: Identify Strategies & Draft Evaluation Criteria9Initial Strategy Categories:1. Education, Communication & Information 2. Community Partnerships, Governance, and Equity-Centered Implementation3. Dedicated Revenue Stream(s) for AH4. Financing for New Construction & Preservation 5. Technical/Direct Assistance6. PoliciesPreserve Existing Affordable Housing and Naturally Occurring Affordable HousingSupport New Construction of Affordable HousingIncentivize Private Development to Create Affordable Housing and Other Community BenefitsIncrease Supply of Accessible HousingAllow the market to respond to a variety of housing preferences7. Continue efforts to implement recommendations from current housing-related studies and other City efforts
Impacted Players in the Housing System Proposed Strategy HOAs Landlords Builders/ Developers Finc. Institutions Special Districts & Gov’t Entities Manufactured Housing Nhbds Home-owners Renters People Experiencing Home-lessness Residents vulnerable to dis-placement Historically dis-advantaged populations Other Partners Education, Communication, and Information 5 Assess displacement and gentrification risk. City staff can use the work other communities do in this space as a guide for building our own index for displacement and gentrification risk using readily available data (Census, American Community Survey, etc.). This information can be used to help promote and target anti-displacement resources/programs, pair such resources with major capital investments, and guide community partnerships. X X X 10Overarching Category: Education, Communication, and Information Specific Action: Assess displacement and gentrification riskWho Is Impacted: Renters, residents vulnerable to displacement, historically disadvantaged populations Step 4: Identify Strategies & Draft Evaluation Criteria
11Note: Step 5 is individual strategy evaluation; Step 6 is strategy prioritization with community and Council in January (process in design)Note: Step 5 is individual strategy evaluation; Step 6 is strategy prioritization with community and Council in January (process in design)Step 4: Identify Strategies & Draft Evaluation CriteriaDoes the strategy help achieve the vision and support equity?Is the strategy feasible to implement?What level of impact will the strategy likely have?What level of resources will be required?
Council Ad Hoc Housing Committee12Discussion Framework:• Quick(er) wins – before April • Transitional Strategies – next Council • Transformational – more than 2+ yearsAug: Overall Focus & PrioritizationSept: Existing Conditions & Greatest ChallengesOct: Housing Types & ZoningNov: Review Housing Types & Zoning; Explore anti-displacementDec: Review anti-displacement Explore funding & financing; occupancy & rental regulationsQuick(er) wins identified thus far• Evaluate opportunities to increase and recalibrate affordable housing incentives in the Land Use Code (existing resources)• Off-cycle appropriation to advance Land Use Code audit(additional resources required)Additional “quick(er) wins” may be brought forth at the January Work Session
Off-cycle appropriation to advance Phase One of the Land Use Code (LUC) Audit What: Housing specific LUC Changes (2021-2022) Responds to the greatest challenges by: Addresses the entire housing spectrum with new tools and processesDefines additional housing types; creates opportunity to increase overall supplyRecalibrates incentives for affordable housing production, identifies opportunities to add to existing incentivesRefines and simplifies development processesWhen:Could bring forward Q1 2021, begin work Q2 2021Resources Required for Phase One: $250-350K for housing-specific changes, $50-$60k matching funds from Home2Health (analysis & engagement)13
Step 8: Implement (Spring +)Step 7: Consider Adoption (Feb/Mar)Step 6: Prioritize Strategies (Jan)Step 5: Evaluate Strategies(Dec)Step 4: ID Strategies, Criteria (Nov)Step 3: Engage Community (Oct/Nov)Step 2: Greatest Challenges (Sep)Step 1: Vision (Aug)Next Steps & ImplementationKey 2021 Dates:• January 7, 2021 - Draft Plan released• Jan 7 - Jan 21 - Community review• Jan 21 - Feb 3 - Staff Revisions• Jan 26 – Council Work Session – Strategy Prioritization, Plan Indicators, & Guiding Principles• Feb 16 – Adoption (1stReading)2020 Next Steps:• Incorporate remaining strategies• Begin strategy evaluation• Design process for strategy prioritization• Draft plan for January release Next Steps
Questions for Consideration15What feedback do Councilmembers have on the following: • Engagement to date?• Strategies identified?• Draft evaluation criteria? Do Councilmembers support bringing forward an off-cycle appropriation to initiate the LUC work?