Affordable Housing Strategic Plan

June 9, 2015

Questions for Council Consideration

1. Does Council generally agree with the stated goals and policies outlined in the draft plan?

2. Would Council like the strategies to be prioritized?

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City’s Role in Affordable Housing

• Policy direction • Funder • Facilitator • Regulator • NOT a builder

Where we are today

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3.33%

4.41%

4.85% 5.17%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

1999 AHSP 2004 AHSP 2009 AHSP 2015 AHSP

Percentage of overall housing units that are publicly assisted, affordable housing

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Affordable Housing Locations

Current Challenges

• Many cost-burdened renters • Rising rents, historic low vacancies • Home ownership gaps

Current Challenges

• Housing more expensive to build

Affordable Housing Definitions

Housing Affordability vs. Affordable Housing Fort Collins definition:

–Dwelling unit affordable for 80% > AMI •Renters: cost 30% > gross income •Homeowners: cost 38%> gross income

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Fort Collins AMI Limits

Percent of AMI AMI HUD Classification Maximum Affordable

Monthly Rent 100% $79,300 Moderate Income $1,983

80% $62,250 Low Income $1,556

60% $47,580 Low Income $1,190

50% $38,900 Very Low Income $973

30% $24,250 Extremely Low Income

$606

Who Does Affordable Housing Serve?

Relationship of Income to Need for Subsidy

0 30% 60% 80% 100% 120%

HIGH

LOW

SUBSIDY NEEDED TO BE AFFORDABLE

PERCENT OF AREA MEDIAN INCOME

LEV

EL

OF

SU

BS

IDY

Units available and affordable to 100 HH earning 30% AMI

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Land Bank Program

Proposed 5 Strategic Goals

1. Increase the inventory of rental housing 2. Preserve affordability of existing housing 3. Increase housing for special needs populations 4. Support affordable homeownership 5. Refine incentives and expand funding sources

Goal: Increase Inventory of Affordable Rental Units

• Many cost-burdened, low income renters

Goal: Increase Inventory of Affordable Rental Units

• Growing gap 31-80% AMI

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0-30% AMI 31-50% AMI 51-80% AMI Total Housing cost burden greater than 30% of income

6,269 4,354 2,590 13,213

Housing cost burden greater than 50% of income

5,825 2,009 440 8,274

Number of Cost-Burdened and Severely Cost-Burdened Rental Households

Source: CHAS 2007-2011

Goal: Preserve Existing Affordable Housing Units

• Aging Inventory • Preserve physical condition of existing stock

- Improve livability and sustainability of stock

Year Unit Built Owner-Occupied Renter-Occupied Number % Number %

2000 or later 7,575 24% 3,624 15% 1980-1999 13,339 42% 8,479 35% 1950-1979 9,024 28% 10,156 41% Before 1950 1,937 6% 2,295 9% Total 31,875 100% 24,554 100%

Goal: Increase Housing and Services for People With Special Needs

• Growing special needs populations

Special Need Category Number

Individuals with hearing difficulty 3,315

Individuals with vision difficulty 1,617

Individuals with cognitive difficulty 3,765

Individuals with an ambulatory difficulty 4,391

Individuals with a self-care difficulty 1,667

Individuals with an independent living difficulty 3,190

Goal: Increase Housing and Services for People With Special Needs

• Growing senior population

Goal: Home Ownership Support

• Price escalation continues

Goal: Development Incentives & Alternative Funding Sources

Profits squeezed

Other Colorado Communities

Communities • Boulder • Denver • Aspen • Vail • Snowmass • Telluride

Policies • Inclusionary Housing

Ordinance • Commercial Linkage Fee • Property Tax • Excise Tax • Head Tax

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Policies Not Recommended

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Policy Reason

Inclusionary Housing Ordinance Deed restricted homes would be at same price point as unrestricted homes

Commercial Linkage Fee

Commercial linkage fees add costs and makes Fort Collins less competitive with surrounding municipalities

Recommended Policies

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Policy Expected Outcome

Activate Land Bank 500-600 additional affordable units Improve financial and non-financial incentives

Incentivizing the types of units that are missing in our inventory

Preserve affordable units in exchange for affordability commitment Maintain supply of affordable units

Policies for Feedback

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Policy Expected Outcome

Progressive fee structure Fees commensurate with impact of development

Phased improvements of existing housing Incremental improvement in condition of housing

Remove barriers to accessory dwelling units (ADUs) Increase supply of affordable units

Construction Defect Litigation remedy Increase supply of townhomes and condominiums

Next Steps

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• Vision • Data analysis and metrics • Outreach • August 18th Regular Meeting

Questions for Council Consideration

1. Does Council generally agree with the stated goals and policies outlined in the draft plan?

2. Would Council like the strategies to be prioritized?

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Contact

Sue Beck-Ferkiss Social Sustainability Specialist sbeckferkiss@fcgov.com 221.6753

Clay Frickey Associate Planner cfrickey@fcgov.com 224.6045

Land Bank Program

• 5 Properties • 50 acres • Combined Purchase Price: $3,002,235 • Value under Current Ordinance: $2,150,000 • Full Fair Market Value: $6,630,000

Systematic investigation to best leverage

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Construction Defect Reform

• 2015 Legislature Failed to Act – SB 177: Mediation and Notice – SB 91: Reduce Statute of Limitations - 8 to 6 – Likely Addressed in 2016 Legislative Session

• 4 Cities Have Adopted Local Ordinances

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