HomeMy WebLinkAboutConstituent Letter - Read Before Packet - 8/4/2020 - Letter From Kristin Fritz, Housing Catalyst, Re: Landmark Designation Of Three Public Housing Properties
M E M O R A N D U M
DATE: July 27, 2020
TO: Fort Collins City Council
FROM: Kristin Fritz, Chief Real Estate Officer, Housing Catalyst
RE: Landmark Designation of Three Public Housing Properties
Housing Catalyst is in the process of applying to the Department of Housing and Urban
Development (HUD) for approval to reposition our public housing portfolio to a more
sustainable affordable housing model through HUD’s Section 18 Disposition program. Federal
funding for public housing does not adequately cover the costs of necessary maintenance, and
units have a backlog of capital needs that continues to grow as the properties age. Therefore,
Housing Catalyst is pursuing this repositioning program, which will ultimately allow us to
better provide safe, healthy, and affordable homes now and into the future.
In their current status as public housing, properties are owned by HUD and are considered
protected from any “adverse effects,” which includes any negative impact or alteration to the
characteristics of a home with historical significance. HUD wants to ensure that historic homes
remain protected even as ownership changes. One of the best methods of doing so is to
designate them as historic landmarks, which guarantees adequate City and State review of
physical changes to the homes. A potential concern from Housing Catalyst has been whether
the proposed designation would add future cost or burden to the future low-income
homeowner and/or possibly contribute to the ongoing affordability of the properties. The
properties that have been identified for designation as historic landmarks are 331 S. Loomis,
228 Whedbee, and 1016/1018 Morgan. Both City of Fort Collins and Colorado State Historic
Preservation Office staff agree that this is the best approach for future protection of these
homes.
At the July 21, 2020 meeting, City Council inquired about Housing Catalyst’s financial incentive
in repositioning its public housing. This repositioning is an opportunity to both preserve
existing affordable housing and develop additional affordable units with business models and
management methods that are more sustainable and better serve our residents. Housing
Catalyst will use the proceeds from the disposition to rehabilitate existing Housing Catalyst-
owned affordable housing properties, as well as to develop additional affordable units. In
addition, Housing Catalyst will be selling a portion of its public housing portfolio (44 units) to
Elevation Community Land Trust (ECLT), a non-profit organization that creates and preserves
affordable housing through homeownership opportunities. ECLT purchases homes in need of
rehabilitation, updates them, and then offers them for sale as an affordable homeownership
option for families earning 80% of the area median income or less.
If you have any further questions, please contact me at kfritz@housingcatalyst.com or (970)
416-2938.