HomeMy WebLinkAbout101 - 10/04/2022 - AUTHORIZING THE RELEASE OF A RESTRICTIVE COVENANT ON PROPERTY AT 331 NORTH HOWES STREET OWNED BY VILORDINANCE NO. 101, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE RELEASE OF A RESTRICTIVE COVENANT ON PROPERTY
AT 331 NORTH HOWES STREET OWNED BY VILLAGES, LTD.
WHEREAS, on October 1, 2001, the City entered into a Recipient Contract with the Fort
Collins Housing Authority, now known as Housing Catalyst ("FCHA"), through which FCHA
received a grant from the City of $174,931 in Community Development Block Grant (CDBG)
funds to rehabilitate 41 affordable rental housing units in eleven buildings in Fort Collins (the
"Project"); and
WHEREAS, as required by the Recipient Contract, at the completion of the Project FCHA
recorded a Restrictive Covenant enforceable by the City on all the units in the Project, requiring
the units to remain affordable for twenty years (the "Covenant"); and
WHEREAS, the Covenant is set to expire in October 2023; and
WHEREAS, FCHA used $3,000 of the grant proceeds to make improvements to a single-
family rental property located at 331 North Howes Street (the "Property"); and
WHEREAS, the Property is owned by Villages, Ltd., a 501(c)(3) corporation managed by
FCHA; it is currently vacant and has extensive long-term capital needs; and
WHEREAS, the Recipient Contract does not require repayment of the grant funds, but
Villages, Ltd. has offered to repay the City's $3,000 investment in the Property in exchange for
the early release of the Covenant on the Property so that FCHA can sell the Property and use the
proceeds for other multifamily housing; and
WHEREAS, the City would add the repaid grant funding to the funds distributed through
the Social Sustainability's annual competitive grant process; and
WHEREAS, the City's right under the Covenant to restrict the use of the Property
constitutes an interest in real property owned by the City that the City would be giving up by
releasing the Covenant; and
WHEREAS, Section 23-11 l(a) of the City Code states that the City Council is authorized
to sell, convey or otherwise dispose of any interest in real property owned by the City, provided
that the City Council first finds, by ordinance, that such sale or other disposition is in the best
interests of the City; and
WHEREAS, the Affordable Housing Board reviewed this request at its regular meeting on
September 1, 2022, and voted to support the Council's granting of this request.
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 contained in the recitals set forth above.
Section 2. That the City Council hereby finds that releasing the Covenant on the
Property on the tenns and conditions described herein is in the best interests of the City.
Section 3. That the City Council hereby authorizes the City Manager to execute such
documents as are necessary to release the Property from the Covenant upon repayment of the
$3,000 in CDBG funds, on terms and conditions consistent with this Ordinance, along with such
other terms and conditions as the City Manager, in consultation with the City Attorney, determines
are necessary and appropriate to protect the interests of the City or effectuate the purposes of this
Ordinance.
Introduced, considered favorably on first reading and ordered published this 20th day of
September, A.O. 2022, and to be pre
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ctober, A.D. 2022 .
Passed and adopted on final reading this 4th day ofOctL A.D. :022.
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ATTEST_:_ SEAL
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