HomeMy WebLinkAboutMemo - Mail Packet - 4/28/2020 - Memorandum From Sue Beck-Ferkiss And Tom Leeson Re: Work Session Summary - April 14, 2020 - Affordable Housing PrioritiesSocial Sustainability
321 Maple Street
PO Box 580
Fort Collins, CO 80522
970.221.6758
MEMORANDUM
DATE: April 17, 2020
TO: Mayor Wade Troxell & City Councilmembers
THRU: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Jacqueline Kozak-Thiel, Chief Sustainability Officer
Beth Sowder, Social Sustainability Department Director
FROM: Sue Beck-Ferkiss, Social Policy & Housing Program Manager, SSD
Tom Leeson, Deputy Director, Planning Transportation and Development
RE: Work Session Summary April 14, 2020 – Affordable Housing Priorities
Introduction: At the April 14, 2020 City Council Virtual Work Session, Jackie Kozak-Thiel and
Sue Beck-Ferkiss from Sustainability Services reported to Council on four items as requested at
a City Council Meeting in October 2019. All Councilmembers were present. The topics were:
Homebuyer Assistance Program, Elevation Community Land Trust, Inclusionary Housing
Ordinance and Affordable Housing Impact Fee. Staff also sought guidance on strategic housing
planning options.
Councilmembers’ discussion and direction included:
The need for future framing - What are the tools we have, what are the tools we need,
and how do we make an impact?
The need for broad stakeholder and community engagement especially with end users
from various income levels and people with lived experience in challenges related to
housing affordability.
Interest in looking at a wide range of tools, options and policies to help alleviate the
affordability issues related to housing in our community.
Appreciation for the partnership with Elevations Community Land Trust.
Understanding that the City’s Home Buyer Assistance Program may not be needed due
to other programs – with some concern that Impact Development Fund’s program with
similar terms may not meet community needs. Some question about whether a new City
program was required for households with incomes greater than 80% area median
income (AMI). (Follow-up information below).
The need to continue to find ways to support affordable and attainable home ownership
opportunities.
Direction that while conditions are not right for an Inclusionary Housing Ordinance at this
time, this should be reconsidered in 2-3 years.
Cautious support for continuing to investigate an affordable housing impact fee with the
development impact fee update in 2021 since a legal nexus was established and this
can be tailored in a way to least disrupt or negatively impact development.
Some interest in exploring other sources of revenue like sales tax or property tax.
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Support for broadening the scope of the next strategic housing plan in both income
levels and tools considered.
Excitement around getting the housing planning process and work of the Council Ad Hoc
committee started.
Follow-up items
Clarification regarding Home2Health state grant – this funding can only be used for Land
Use Code Updates and Housing Policy to lead to systemic improvements and long-term
impacts. It is not available to invest in housing or for direct service.
Down Payment Assistance Programs (DPA):
o DPA is available through private banks, Colorado Housing and Finance
Authority, and Impact Development Fund (IDF).
IDF can serve the households with incomes up to 80% area median
income with the Division of Housing (DOH) grant. Because they have this
state funding, the City will not need to fund IDF at this time. If they are
successful at deploying the DOH funds, they can apply to the City’s
Competitive Process for additional funding for Fort Collins households.
Any funding left in the City program when IDF’s program is up and
running can be returned to the completive process to be used to support
affordable home ownership such as a Habitat for Humanity home.
Staff will continue to explore additional ways to support home ownership.
o Families with higher incomes can access Colorado Housing Finance Authority
Programs. For example, their Larimer County maximum income limits vary by
program but in summary are:
up to $120,000 for households regardless of size,
and up to $122,000 for 3 person households.
Recognizing that the density needed to recommend an Inclusionary Housing Ordinance
is not achievable under current regulations, staff recommends further analysis beyond
the consultant’s example of a 20% density increase including a methodology that
accounts for scenarios that reflect implementation of City Plan strategies and consider
removing other regulatory barriers to achieving our land use goals.
In answer to the question about Elevation Community Land Trust’s track record,
Elevation is one of the newest community land trusts in Colorado, although others such
as the Colorado Community Land Trust have been operating for decades. Since
inception less than 2 years ago, Elevation’s trust now holds 77 homes in trust. Their
2020 goals were to acquire 209 homes and sell 90 to buyers, but COVID-19 impacts
may slow that down for this year. While the City’s partnership with Elevation is not
exclusive, their unique model capitalizes them in a way that allows them to bring subsidy
to projects. Most CLTs do not have that capacity.
Still to come:
Requested follow-up regarding the Housing Manager position and the Council Ad Hoc
committee will be shared with Council separately.
Consultant Economic & Planning Systems Inc. has been asked to include an
assessment of development potential available in the City as we look at long term
planning horizons from City Plan and how that could affect conditions for a successful
Inclusionary Housing Ordinance.
More information on how the COVID-19 pandemic will affect the City’s housing sector.
Staff will continue public engagement through Home2Health and internal analysis to
inform the next strategic housing plan.
Staff will provide regular quarterly updates to Council on the on-going planning process
in addition to the Council Priorities Dashboard. The next one will be in June.
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