HomeMy WebLinkAbout077 - 07/05/2022 - AMENDING CITY CODE TO CREATE AN ADMINISTRATIVE PROCESS FOR AWARDING FEE CREDITS FOR CERTAIN AFFORDABORDINANCE NO.077, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE VIII OF CHAPTER 7.5 THE CODE OF THE CITY OF
FORT COLLINS TO CREATE AN ADMINISTRATIVE PROCESS FOR
AWARDING FEE CREDITS FOR CERTAIN AFFORDABLE HOUSING UNITS
WHEREAS, by adoption of Ordinance No. 065, 1999, the City Council exempted from the
imposition of the City's capital improvement expansion fees the land development projects of
housing authorities formed pursuant to the provisions of Section 29-4-101, et seq., and specified
various other City fees from which such projects are also to be exempted; and
WHEREAS, on March 19, 2013, the City Council adopted Ordinance No. 037, 2013, which
made amendments to the City Code and Land Use Code limiting the types of projects for which
housing authorities could request fee waivers, and specifying that those waivers are to be granted
at the discretion of City Council upon a determination that proposed waivers will not jeopardize
the financial interests of the City or the timely construction of capital improvements to be funded
by the fees; and
WHEREAS, on November 21, 2017, the City Council adopted Ordinance No. 148, 2017,
to create an incentive for all developers to provide units affordable to those making less than 30%
AMI by amending the City Code and Land Use Code to allow all developers of units targeting that
income bracket, not just the housing authority, to request fee waivers for the affordable portion of
their projects; and
WHEREAS, on November 17, 2020, the City Council adopted Ordinance No. 137, 2020,
eliminating affordable housing fee waivers and instead authorizing a flat, per -unit amount per
qualifying affordable unit (a "Credit") that the City can fund and deposit in a trust account owned
by the City; and
WHEREAS, a developer awarded a credit can then direct that amount to be spent on fee
balances owed to the City during the development of the project; and
WHEREAS, the City Code as revised in 2020 still requires that the City Council approve
a Credit, by ordinance, only if the City Council determines that: (1) the proposed project is intended
to house homeless or disabled persons, as such terms are defined by the Department of Housing
and Urban Development (HUD), or households with an annual income that does not exceed 30%
of the area median income (AMI) for the applicable household size in the Fort Collins -Loveland
metropolitan statistical area, as published by HUD; and (2) the proposed waiver will not jeopardize
the financial interests of the City; and
WHEREAS, to make the process of issuing a Credit more efficient for developers and City
staff, and in the interests of continuous improvement, City staff is recommending that the City
Council amend the City Code to allow staff to award credits through an administrative process,
rather than requiring City Council approval by ordinance, when the City Council has already
appropriated funds specifically for such Credits; and
WHEREAS, a developer would be still be required to request a Credit prior to the City
issuing any certificates of occupancy for a project, and City staff would ensure the project meets
the affordability requirements for receiving a Credit; and
WHEREAS, if the City received a Credit request exceeding the amount of funds already
appropriated and available to fund the request, City staff would bring the request to the City
Council for consideration, findings, and any necessary appropriation, with approval in the City
Council's discretion; and
WHEREAS, in the course of preparing this Ordinance, it was noted that Article VIII of
Chapter 7.5 also contains a numbering error, which is corrected by the proposed amendments; and
WHEREAS, at its regular meeting on May 5, 2022, the Affordable Housing Board voted
to support the change to the City Code described in this Ordinance; and
WHEREAS, the City Council believes it is in the best interests of the City to amend the
City Code accordingly.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS AS FOLLOWS:
Section 1. That the City Council hereby makes and adopts the determinations and
findings outlined in the recitals set forth above.
Section 2. That Section 7.5-101 of the Code of the City of Fort Collins "Application
for Credit" - is hereby renumbered as Sec. 7.5-102 and amended to read as follows:
Sec. 7.5-102. - Application for credit.
(b) If the City Council has already appropriated funds sufficient and intended for the
purpose of providing fee credits for affordable housing under this Article, the City Manager
or their designee may approve a credit upon determining that the affordable housing units
are intended to house homeless or disabled persons, as such terms are defined by the United
States Department of Housing and Urban Development, or households with an annual
income that does not exceed thirty (30) percent of the area median income for the
applicable household size in the Fort Collins -Loveland metropolitan statistical area, as
published by the United States Department of Housing and Urban Development. The City
Manager or their designee shall notify the developer in writing whether the project will
receive a fee credit.
(c) If the City Council has not already appropriated funds sufficient and intended for the
purpose of providing fee credits under this Article, the City Council may, by ordinance,
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appropriate additional funds as necessary and approve a credit if the City Council, in its
sole discretion, determines that:
(1) the affordable housing units are intended to house homeless or disabled persons,
as such terms are defined by the United States Department of Housing and Urban
Development, or households with an annual income that does not exceed thirty (30)
percent of the area median income for the applicable household size in the Fort
Collins -Loveland metropolitan statistical area, as published by the United States
Department of Housing and Urban Development; and
(2) the proposed credit will not jeopardize the financial interests of the City.
Section 3. That Section 7.5-102 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-103. - Amount of credit and payment process.
(b) If the City approves a credit for a project, the City shall deposit a lump sum equal to
the total amount of the credit into a trust account held by the City for the benefit of the
project developer, from which the developer may direct the City to pay balances due to the
City for development review fees and capital expansion fees, except as otherwise expressly
prohibited or provided in this Code or other applicable law.
(c) If any credit remains unused in the trust account one (1) year after the last certificate of
occupancy for the project has been issued, or if construction of the project is not
commenced within three (3) years of the effective date of the notice or ordinance approving
the credit, then the trust account shall terminate and the remaining credit shall be
redeposited in the fund or funds from which the credit was originally paid.
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Introduced, considered favorably on first reading and ordered published this 21st day of
June, A.D. 2022, and to be presented for final passage on thA Sth day of July, A.D. 2022.
ATTEST:
J"-
City Clerk
Passed and adopted on final
ATTEST:
City Clerk