HomeMy WebLinkAboutMemo - Mail Packet - 2/1/2022 - Memorandum From Sue Beck-Ferkiss Re: Invitation To Apply For State Affordable Housing Development Incentive Grant Program
Social Sustainability
321 W. Maple Street
PO Box 580
Fort Collins, CO 80522
970.221.6758
MEMORANDUM
DATE: January 27, 2022
TO: Mayor Arndt and City Councilmembers
THRU: Kelly DiMartino, Interim City Manager
Kyle Stannert, Deputy City Manager
Jackie Kozak-Thiel, Chief Sustainability Officer
Meaghan Overton, Housing Manager
FROM: Sue Beck-Ferkiss, Social Policy and Housing Programs Manager
RE: Invitation to Apply for State Affordable Housing Development Incentives Grant Program
______________________________________________________________________
Bottom Line: On January 21, 2022, the City was formally invited to apply to the Catalyst round
of funding for a $2.2 million grant from the Affordable Housing Development Incentives Grant
program through the Colorado Department of Local Affairs (DOLA) for the Kechter Townhomes
land bank project. Applications will open on January 31 with a submittal deadline of March 7,
2022. The application must include a Council Resolution to:
Confirm that the elected body is aware of, and
Approves of the intent to apply for grant funds.
Staff will be bringing forward a Resolution in support of the grant application for Council
consideration on February 15, 2022.
Background:
The Kechter Townhome project is the result of a 2017 City Council priority seeking to develop a
land bank property for home ownership. The partnership team for a specific project was
assembled in 2019. The partnership is led by TWG (as developer) and including Elevation
Community Land Trust (ECLT) and Housing Catalyst (HC) and was formed for the purpose of
developing 54 permanently affordable for-sale townhomes. Every entity involved in this private-
public partnership has been working diligently to bring additional resources to this innovative,
permanently affordable ownership project. On November 2, 2021, City Council conveyed the
City-owned property to the partnership to develop the 54 permanently affordable townhomes.
which was prioritized through extensive community outreach. The Affordable Housing Board
has been monitoring and supports this project.
About the Affordable Housing Development Incentives Grant program:
allocation. Colorado HB 21-1271 created the Affordable Housing Development Incentives Grant
program to provide grants to local governments to develop one or more affordable housing
developments in their community that are livable, vibrant, and driven by community benefits.
These grants can be used to offset tap fees, infrastructure, and other needs and amenities that
support affordable housing projects. Local governments were encouraged to pick one or two
shovel-ready projects that could spend all the funds by June 2024 to apply for gap funding.
Approximately $37,728,000 is available in the Affordable Housing Development Incentives
Grant program. Funding will be phased, with 3-5 Catalyst projects funded in the first round.
Catalyst projects should exceed the requirements of the grant guidelines, be ready to implement
quickly, and will have demonstration value. The goal of the Catalyst round is to complete
exemplary and innovative examples of affordable housing projects or programs to celebrate
local governments who have made strong commitments in reducing barriers to affordable
housing development and have time-sensitive projects ready for investment that will serve as
examples for applicants in the main round of funding.
About the proposal:
Staff submitted the Kechter Townhomes project for consideration under the Catalyst round of
funding on October 29, 2021 through an initial Letter of Intent (LOI). While it is scheduled to
break ground soon, a funding gap currently being covered by partner loans to the project still
ees levied by a special district, the
Fort Collins - Loveland Water District, which is a defined eligible expense under the grant
program guidelines.
Staff chose the Kechter Townhomes project because it exceeds the grant program guidelines, is
shovel-ready but still has a funding gap and has demonstration value for future affordable home
ownership projects. The Kechter Townhomes project exceeds the program guidelines set by
DOLA in several ways including:
Targeting sale prices to 70% area median income (AMI) and restricting the land to 80%
AMI when the grant program allows up to 140% AMI for home ownership.
Implementing more than the minimum number of required adopted land use strategies.
The project has more than the required 20% funding match already committed.
Extra points are awarded for projects that are restricted for more than 30 years and this
project will be affordable in perpetuity.
On January 21, 2022, the City was formally invited to apply to the Catalyst round of funding.
Next Steps:
Staff will bring a Resolution in support of the grant application for Council consideration on
February 15, 2022.