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HomeMy WebLinkAbout071 - 07/05/2011 - APPROVING THE WAIVER OF CITY FEES FOR THE CARE HOUSING AFFORDABLE HOUSING PROJECT IN THE PROVINCETOW ORDINANCE NO. 071, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE WAIVER OF CITY FEES FOR THE CARE HOUSING AFFORDABLE HOUSING PROJECT IN THE PROVINCETOWNE SUBDIVISION WHEREAS,the Fort Collins Housing Authority(the"Housing Authority")has been formed under the auspices of Section 29-4-101, et seq., C.R.S., for the purpose of providing affordable housing to residents of the City; and WHEREAS, the provision of such housing serves an important public purpose; and WHEREAS, in order to foster the provision of affordable housing, both state and local law exempt projects of the Housing Authority from the payment of certain fees and taxes; and WHEREAS, more specifically, Section 29-4-227, C.R.S. states that a housing authority is exempt from the payment of any fees to the state or any subdivision thereof, and that the property of an authority is exempt from all local and municipal taxes, as are bonds and other evidences of indebtedness of an authority,all property leased to an authority for the purposes of a project,and the income derived from the authority by the lessor under such lease; and WHEREAS, Section 29-4-227, C.R.S. also provides that the portion of a residential project that is occupied by persons of low income and that is owned by or leased to an entity that is wholly owned by an authority, or an entity in which an authority has an ownership interest, or an entity in which an entity wholly owned by.an authority has an ownership interest shall likewise be exempt from taxation,together with the income derived from the above entities by the lessor under a lease; and WHEREAS,it is unclear under the foregoing state law whether an affordable housing project that is only partially owned by a housing authority is exempt from both fees and taxes; and WHEREAS, Ordinance No. 065, 1999, of the City Council states, in Section 2 thereof,that any housing authority organized pursuant to the provisions of Section 29-4-101,et seq.,C.R.S.,shall be exempt from the payment of certain City fees specified therein; and WHEREAS,similarly, Section 7.5-17 of the Code of the City,dealing with the City's capital improvement expansion fees, exempts from the payment of such fees any housing authority organized pursuant to the provisions of Section 29-4-101, et seq., C.R.S.; and WHEREAS, the Housing Authority has entered into an agreement with CARE Housing, a local non-profit corporation, for the purpose of providing affordable housing in the City through a large, multi-family affordable housing project in the Provincetowne subdivision,which is currently under construction; and WHEREAS, because of the tax credit financing arrangement through which the Project is being funded,the Housing Authority currently holds only a small ownership interest in the Project; and WHEREAS, the Director and Board of the Housing Authority have nonetheless recommended that the City waive the Project's payment of the fees specified in Section 2 of Ordinance No. 065, 1996; and WHEREAS, the City Council believes that the waiver of fees for the Project is in the best interests of the City; and WHEREAS, the City Council also believes that, because the status of these kinds of affordable housing projects under state and local law is unclear with regard to the waiver of City fees,the Council should consider revising the provisions of Ordinance No. 065, 1999, and Section 7.5-17 of the City Code so as to more specifically address, as a matter of ongoing policy, the question of whether and under what circumstances the City fees specified in Section 2 of Ordinance No.065, 1999,should be waived for affordable housing projects in which the Housing Authority has only a partial ownership interest. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS AS FOLLOWS: Section 1. That the payment of those fees specified in Section 2 of Ordinance No. 065, 1999, is hereby waived for the Project. Section 2. That, to the extent that the waiver of fees contained in Section 1 of this Ordinance may conflict with the provisions of Ordinance No. 065, 1999, Section 7.5-17 of the City Code,or with any other provision of the City Code,City Land Use Code,or with any other ordinance or resolution of the City Council, the provisions of this Ordinance shall supersede any such other conflicting provision. Section 3. That the City Council hereby finds and determines that the provision of incentives by the City to at housing projects located in the City is a matter of local concern and that, to the extent that the waiver of fees contained in Section 1 above may be construed to be in conflict with the provisions of Section 29-4-101, et seq., C.R.S., or any other provision of State law, the provisions of this Ordinance shall prevail and shall supersede such other law. Section 4. That the City Manager is hereby directed to prepare a report and recommendation for the City Council's consideration at an upcoming work session with regard to whether and under what circumstances the City fees specified in Section 2 of Ordinance No. 065, 1999, should be waived for affordable housing projects in which the Housing Authority has only a partial ownership interest. -2- Introduced,considered favorably on first reading,and ordered published this 7th day of June, A.D.,2011, and to be presented for final passage on the 5th day of July, A.D. 2011. OF F0 G`• c N or ATTEST: '';o- ;z 6 se `••'�.Q 1 Oz0RADO City Clerk Passed and adopted on final reading on the 5th day of July, A.D. 2011. I 'Njayor ATTEST: OF FORTCO �0 0. EAL ;N : City Clerk OR -3-