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HomeMy WebLinkAboutMemo - Mail Packet - 11/19/2024 - Memorandum from Sue Beck-Ferkiss re 2050 Sustainability Tax Grants to Offset Utility Costs for Affordable Housing (2)Social Sustainability Department 222 LaPorte Avenue PO Box 580, Fort Collins, CO 80522 970-221=6753 sbeckferkiss@fcgov.com CC: Brain Tholl MEMORANDUM Date: November 6, 2024 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Jacob Castillo, Chief Sustainability Officer Beth Yonce, Social Sustainability Director From: Sue Beck-Ferkiss, Interim Housing Manager Subject: 2050 Sustainability Tax Grants to Offset Utility Costs for Affordable Housing BOTTOM LINE City of Fort Collins grants to offset Utility Fees were awarded to Housing Catalyst for the Village on Impala, CARE Housing for Heartside Hill, and to Fort Collins Habitat for Humanity for Harmony Cottages. BACKGROUND In 2024, City Council supported grant funding to offset utility fees for affordable housing development, particularly electric and water fees, using the voter approved Fort Collins 2050 Climate Programs Tax. This funding is for projects that advance greenhouse gas and pollution reduction, the City’s goal of 100% Renewable Electricity, and the City’s 2050 Goal of Community-wide carbon neutrality. Funds were made available in 2024 to provide grants to offset increasing costs of utility related development fees for affordable housing projects targeting households earning no more than 80% Area Median Income. Grant criteria were developed collaboratively including the Utility Department, Social Sustainability Department, and local affordable housing providers and developers. Using the $400,000 appropriated for this purpose, the City provided grants in the form of fee credits to offset the utility costs for three eligible Affordable Housing Projects. 1. Housing Catalyst applied for the Village on Impala. The Village an Impala project demonstrates a commitment to Our Climate Future goals related to “Efficient, Emissions Docusign Envelope ID: 917A350A-B63E-471B-B518-08F6E887F85A Free Buildings” and “100% Renewable Electricity” through the installation of 249 kW of solar generation and the consideration of all-electric buildings. As the community adopts more clean energy resources, we increase local resilience and provide occupants with healthier indoor air quality. The desire to install heat pumps and pursuit of Energy Star certification are examples of project specifics that support community goals. Housing Catalyst was awarded $200,000 in fee credits to offset utility fees at the Village on Impala. 2. CARE Housing applied for the Heartside Hill project. Heartside Hill is a participant in the Utilities Integrated Design Assistance Program (IDAP) and is achieving energy efficiency goals using ductless heating and cooling technology. In addition, this development includes strategies that are aligned with the US Department of Energy Zero Energy Ready certification. A DOE Zero Energy Ready Home is a high-performance home that is so energy efficient that a renewable energy system could offset most or all the home's annual energy use. CARE Housing was awarded $100,000 in fee credits to offset utility fees at Heartside Hill. 3. Fort Collins Habitat for Humanity applied for the Harmony Cottages project. Harmony Village is also an IDAP participant, and Habitat has demonstrated a commitment to designing with high performing building enclosure. This includes intentional plangs for building orientation to optimize heating and cooling performance, installation of energy recovery ventilation (ERVs), and additional insulation including in the foundation. The commitment to building science considerations will continue to provide benefits to occupants/owners year over year and are in alignment with best practices in high performing building design. Fort Collins Habitat for Humanity was awarded $100,000 in fee credits to offset utility fees at Harmony Cottages. NEXT STEPS • Explore additional opportunities to operationalize City resources to build and preserve affordable housing. • Explore continuing to partner with the City Utility Department and affordable housing providers to encourage the focus on high performance in new construction. • Continue to promote the City’s Utilities Integrated Design Assistance Program (IDAP). Docusign Envelope ID: 917A350A-B63E-471B-B518-08F6E887F85A