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HomeMy WebLinkAboutMemo - Read Before Packet - 3/2/2021 - Memorandum From Lindsay Ex And Meaghan Overton Re: Item 4: Housing Strategic Plan Second Reading And Item 5: Land Use Code Appropriation Second Reading - Board And Commission Recommendations Social Sustainability 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6758 MEMORANDUM DATE: February 26, 2021 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: Item #4: Housing Strategic Plan Second Reading and Item #5: Land Use Code Appropriation Second Reading Board and Commission Recommendations Purpose: The purpose of this memo is to summarize the recommendations of the Planning and Zoning Board (7-0) and the Economic Advisory Commission (6-1) for approval of the Housing Strategic Plan (HSP). The Planning and Zoning Board also recommended approval (7-0) of the off- cycle appropriation for Phase 1 of the Land Use Code (LUC) update. Summary: The Economic Advisory Commission recommended the HSP at their January meeting (draft meeting minutes were included in the First Reading Packet) and revisited the final plan at their meeting on February 17, 2021. The Planning and Zoning Board considered the HSP and the off- cycle appropriation at their hearing on February 18, 2021. Minutes from these discussions have been included as attachments. Board and Commission members offered the following feedback: Appreciation for the comprehensiveness and feedback and incorporate it into the plan. Support for moving forward with HSP adoption and the LUC changes. Emphasis on the importance of community engagement for both implementation of the HSP and the LUC changes, particularly any changes that impact existing neighborhoods. lenges; strategies that can advance quickly should be implemented as longer-term work continues. In addition to feedback on the plan itself, Board and Commission members discussed key topics to explore further in implementation, e.g., impacts of occupancy on housing costs, the resources needed to implement the HSP, and the intersection of economic vitality and affordability. Planning and Zoning Board members also requested historical information about housing costs and wages, which will be shared in a future memo. Attachments: Planning and Zoning Board Draft Minutes (February 18, 2021) Economic Advisory Commission Draft Minutes (February 17, 2021) 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; Travis Storin, Chief Financial Officer; Dave Lenz, Finance Planning and Analysis Director; Beth Sowder, Social Sustainability Director; and Josh Birks, Economic Health Director. Planning and Zoning Board Hearing | February 18, 2021 1 Draft Minutes, Item #3 3. Housing Plan Recommendation Project Description:This is a request for a Recommendation to City Council regarding the adoption of the Housing Strategic Plan and the off-cycle appropriation to advance Phase 1 of the Land Use Code (LUC) Update. Recommendation: Approval Secretary Manno reported that no citizen emails or letters were received. Staff and Applicant Presentations Planner Overton and Lindsay Ex Interim Housing Manager gave a brief verbal/visual overview of this recommendation. Public Input (3 minutes per person) None noted. Staff Response None noted Board Questions / Deliberation Member Hansen questioned what is being recommended and that it was not code changes. Planner Overton responded that he was correct and that the Board would make the recommendation to Council for adoption of the plan and adoption of the appropriation that would fund the Land Use Code changes, but not recommending and specific changes at this point. Vice Chair Shepard is intrigued by the community summit that is coming up. Are all the partners shown [Home2Health partners] participating in the summit? Planner Overton responded yes, that is the plan and others will join in if they would like. Member Katz questioned where the funding from the appropriation was coming from. Planner Overton responded that the funding is coming from the general fund. Member Schneider commended the team for how well they listened to citizens and the analysis completed. He is behind phase I, 100%. With everything else, he is a bit concerned due to the details and funding not being dug into. Fort Collins needs this, but there are many details that need to be worked out. This is appreciated, great job. Chair Haefele agrees. Housing affordability is one issue that ticks all the boxes. Member Katz thanked the team for their work. Member Hansen echoed the sentiment. This is complex. Is there is list of the quicker wins? Priority 21 looks at occupancy limits, this should be looked at early on. This takes the existing stock and redistributes it among income levels. What is going to take longer than a year to dive into this? Lindsay Ex responded there is similar and wide perspective in regard to occupancy. Time needs to be taken to have the conversation with the community. The community is interested in the aspects of what can be moved forward more quickly, e.g., the extra occupancy process and is there a safe haven. If you are in violation of those occupancy rules could you raise your hand and get those concerns addressed without being held in violation. Planning and Zoning Board Hearing | February 18, 2021 2 Draft Minutes, Item #3 Vice Chair Shepard commented that he could see how from a lay person’s perspective it could be daunting. But the discussions have been happening and all are up to speed. Chair Haefele asked if the City has done an analysis on how many unused bedrooms for rent there are. Is there anything that shows that there is an excess of bedrooms? Member Katz has the same questions and does not feel it is possible to find this data. Member Hogestad questioned the Land Use Code audit. Is this audit based on the 26 strategies and that the Land Use Code would be tailored to support all 26 of the strategies? Planner Overton clarified that it was done after the adoption of City Plan in 2019 and includes a specific focus on house, and affordable housing in particular because housing was such a key topic in City Plan. The 26 strategies and the Housing Strategic Plan are looking at the audit and saying, “yes we should continue to move that forward and consider changes to the Land Use Code”. Member Hogestad, within the audit, is there consideration to the stability of the existing neighborhoods and how this might affect the existing neighborhoods? Single family neighborhoods should be protected as well as their quality of life. Planner Overton responded that the Land Use Code audit was done int he context of City Plan which includes policy language about the delicate balance of neighborhood livability and stability and change. The guiding principles in the Housing Strategic Plan, these are meant to be a tool for decision making for staff. In the principles there is talk about being more strategic about where things are happening, direct language like Member Hogestad is not in there. There is flexibility. Member Hogestad talked about the occupancy limits. He feels that people will start buying up single- family homes as an investment. This will cut out single-family ownership. Lindsay Ex responded that according to the graphs, single-family home ownership is already out of reach for the majority of our community. We need to lean into this conversation. Member Hogestad does not agree based on what he is seeing in the papers. He feels the intent is to provide more housing. Member Hansen feels that priority 21 should be a higher priority on the list. Most to look at realistic view of the data regarding the rental stock. U+2 was implemented as a way to protect neighborhoods; it does not make sense to apply the same rules to all homes. Chair Haefele and Member Katz touched on something that is skewing the data. There is a likelihood 4-bedroom homes that has 3 people on the list likely has 4 people renting it. This is a task for an implementation of the plan. How are these homes actually being used for rental and does the housing stock on the graph need to be redistributed so we know how it is really being used and how it is affecting incomes and we have a better understanding of where we truly have a housing shortage. Deregulation is going to help a little bit here. U+2 and the application process have a stick feel to so people avoid using it. So, we have people using houses that are out of compliance and we have no way to track it, no idea how it is impacting our housing stock. Otherwise, we may be misinformed when making strategies to improve. Member Katz feels two potential issues may be run into; 1. It would become more attractive to investors and 2. It may actually increase the rent and be a negative impact. Please consider with item 21 and chart, maybe do an overlay map like short-term rentals. Planner Overton clarified that the timeframe of the strategies do not mean they are waiting two years to start, more, how long do we think a process would take to come to a conclusion. Staff are currently pooling notes about who’s responsible, have the same data and get on the same page. Whatever the solution, staff think that this could be done within a year. Chair Haefele commented that a majority of the zone districts already allow extra occupancy. It is underutilized and maybe the first phase of strategy 21, look at what are the barriers of applying for it. The City has a tendency to reward or not punish those who ask for forgiveness rather than permission. So, it is suspected that many landlords who could get it don’t do it because it is cheaper and easier to do it until they get caught. This needs to be addressed. Planning and Zoning Board Hearing | February 18, 2021 3 Draft Minutes, Item #3 Member Hogestad feels it is important to have adequate community outreach and would like to make sure that it happens. Member Hansen wants to make sure that this does not move at a leisurely pace and that we need to do what we can close the gap. Implement what we can within the next 12 months. Member Hogestad asked how the price of housing has escalated, is it a spike or a curve? Lindsay Ex shared that rents have increased by 68%, median price for a single-family detached home has increased by 124%, the price of townhomes and condos has increased by 164% while wages have only increased by on 25%. Planner Overton responded that they would have to do some research to get data back to him and will follow up. This would be on historical housing costs. Member Schneider took a holistic look at where we are at these days. Costs are outrageous and we have had a housing issue for 100 years. Member Hansen would like to see how a housing bubble pop relates to the timing of the current trend we are seeing in housing. To the difficulty of this problem, the salary range does not work for employees to live where they work. This needs to be corrected. Chair Haefele pulled up some internet sites that are for vibrant cites and they are showing the expense in living in a city such as that. The only way affordability happens is if prices come down or if housing is subsidized. People need a way to have or reach equity. Member Shepard feels this is a very comprehensive piece of work by staff and he would like to move to recommend to Council. Member Shepard made a motion that the Fort Collins Planning and Zoning Board recommend approval to the City Council of the Housing Strategic Plan and the Phase 1 Land Use Code Updates based on the findings of fact and the information presented. Member Hansen seconded. Member Hansen requested an amendment. Member Schneider asked if Phase I Land Use Code Updates should be included and made a friendly amendment to have it added to the motion. Both Shepard and Hansen accepted amendment. Vote: 7:0. ECONOMIC ADVISORY COMMISSION TYPE OF MEETING – REGULAR February 17, 2021 4:00 - 6:00 pm via Zoom 2/17/21 – MINUTES Page 1 1. CALL TO ORDER 4:00 pm. 2. ROLL CALL List of Board Members Present Connor Barry Braulio Rojas John Parks Ted Settle Aric Light George Grossman Julie Stackhouse Renee Walkup List of Board Members Absent – Excused or Unexcused; if no contact with Chair has been made Spencer Clark List of Staff Members Present Josh Birks - Staff liaison and Director, Economic Health Cameron Gloss, Manager, City Planning Lindsay Ex, Interim Housing Manager Meaghan Overton - Sr. Planner List of Guests none 3. AGENDA REVIEW No changes 4. PUBLIC PARTICIPATION N/A 5. APPROVAL OF MINUTES AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 2/17/21 – MINUTES Page 2 There were some minor changes regarding attendance, end time, language and punctuation. As there were no further objections, Connor declared the January minutes approved as amended. 6. UNFINISHED BUSINESS a. Update: Reimagining Boards and Commissions -Ted Settle Ted did not have any additional information after his presentation at last month's meeting. Connor -Q - What are the next steps? A - Josh - Next step is for Council to adopt the proposed changes. b. Update on Housing Strategic Plan (Cont.) - Lindsay Ex and Meaghan Overton Lindsay reported that on February 16 City Council reviewed and adopted the draft Housing Strategic plan on first reading. The draft plan is still being reviewed, and she and Meaghan Overton were present at this meeting to share updates to the plan. There have been several revisions to the plans, including efforts to more clearly connect the 26 strategies to six specific outcomes. Other changes include: Additional storytelling Emphasized supportive services & linkage with Our Climate Future Letters from leadership, Home2Health partners, executive summary, and appendices added Recognition of businesses in implementation Updated graphics to illustrate the supply gap, enhanced connections to the existing goals, and strategies Additional updates to the guiding principles Language changes to 9 of the 26 strategies for clarity and specificity Need for more messaging around affordable housing Next steps for the plan include: Council second reading and adoption on March 2; Ad Hoc committee meetings in March/April; a community summit in April/May; and implementation of the plan and Council work session this summer. As supply side strategies of the draft Housing Strategic Plan had previously been of most interest to the EAC, Lindsay asked the group if it wanted to amend its previous recommendation to specifically focus on the supply side strategies in the AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 2/17/21 – MINUTES Page 3 plan, or to consider amending its prior overall recommendation, or take no action. Board Discussion John - Q - What impacts would the EAC changing its recommendation have? A - Most likely nothing, only to clarify the EAC's thoughts and position. Julie - Thinks the EAC should stand ready to respond if staff needs assistance from us. Braulio - Q - How often is that plan going to be reviewed and reevaluated in order to adjust to any changes that may happen? A - Lindsay - Historically these types of plans have been updated on a 5-6 year basis, but staff recognizes things need to be more dynamic here and will evaluate the plan on a two-year cycle. However, it will be flexible enough to quickly act on opportunities that may appear. Renee - It is important the EAC continue to stay involved and she recommended that future focus groups include, in addition to builders and developers, also people who are in need of affordable housing, Connor - Q - What will implementation realistically look like? A - There will be a community summit in late April, and conversations around implementation would be more appropriate after that. Staff will also go back to a Council work session in the summer to present the overall implementation plan with strategy-specific action roadmaps. Julie - Citizens need to be kept informed of the finite amount of housing that will be available in the future. Price pressures will remain and be difficult to solve. We need to establish a shared expectation of what is possible as a laudable goal in order to reduce frustration. Discussions around housing density also needs to be discussed Connor is also concerned about supply issues and suggested the community be kept informed about what the City is doing to address this. Braulio - To have affordable houses, there needs to be houses available under $300,000. However, builders need to be willing to build these houses. This will not happen in a free market. He suggests the City offer some kind of benefits to builders to help their profit margin or these affordable houses will probably not be built. 7. NEW BUSINESS a. Revised Residential Metro District Evaluation Process - Cameron Gloss Cameron Gloss reviewed updates to the plan he previously presented to the