HomeMy WebLinkAbout032 - 04/04/2023 - AUTHORIZING THE RELEASE OF RESTRICTIVE COVENANTS ON PROPERTY AT 1947 PHIA WAY DEVELOPED BY FORT COLLORDINANCE NO.032,2023
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE RELEASE OF RESTRICTIVE COVENANTS ON PROPERTY
AT 1947 PHIA WAY DEVELOPED BY FORT COLLINS HABITAT FOR HUMANITY
WHEREAS,on September 1,2020,the City entered into a Development Contract with
Fort Collins Habitat for Humanity (“Habitat”),through which Habitat received from the City a
loan of $80,000 in HOME Investment Partnership (HOME)funding from the federal Department
of Housing and Urban Development (HUD)to support the cost of constructing a single-family
home (the “Project”)at 1947 Phia Way in Fort Collins (the “Property”)for an income-eligible
homeowner;and
WHEREAS,the HOME funding was secured by a promissory note,deed of trust,and an
Agreement of Restrict Covenants on the Property ensuring the home would be transferred to an
income-eligible buyer and remain affordable for 20 years (the “Covenant”);and
WHEREAS,Habitat constructed the project in partnership with the Geometry in
Construction program at Poudre High School,which began work on the project offsite,but
construction was delayed for the 2020-21 school year because of the Covid pandemic;and
WHEREAS,the home was moved to the Property in the summer of 2022 and the selected
homeowner and volunteers worked to complete the home on site;and
WHEREAS,by the time the home was completed in January 2023 the homeowner no
longer met HUD’s HOME income requirements,which triggered a mandatory repayment of the
HOME funds by Habitat to the City,which has been completed;and
WHEREAS,the City will add the repaid HOME funding to the funds distributed through
the Social Sustainability s annual competitive process;and
WHEREAS,with the funding repaid the City has no reason to burden the Property with
the Covenant,and staff has requested that the City Council authorize release of the Covenant;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 23-111(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.
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 terms 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 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 7th day of
March,2023 and to be presented for final passage on the 4th day of Ap ,2023.
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ATTEST:
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City Clerk)e41eci424
Passed and adopted on final reading on this 4Ih day of April,2023.
ATTEST:
City Clerk/&4’eI