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Home My WebLink AboutPACKET Town Board Study Session 2010-02-09F <OWN-O>\ JOINT STUDY SESSION TOWN BOARD, ESTES VALLEY PLANNING COMMISSION AND ESTES PARK HOUSING AUTHORITY Tuesday, February 9, 2010 4:30 p.m. Rooms 202 & 203 170 MacGregor Ave. AGENDA 1. Housing Needs Discussion. 2. Community Development Assessment. 3. Miscellaneous. NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. f Jackie Williamson From: Admin iR3045 Sent: Thursday, February 04, 2010 8:35 AM To: Jackie Williamson Subject: Job Done Notice(Send) ***************************** *** Job Done Notice(Send) *** ***************************** JOB NO. 2345 ST. TIME 02/04 08:28 PGS. 1 SEND DOCUMENT NAME TX/RX INCOMPLETE ----- TRANSACTION OK 6672527 Greg White 5869561 KEPL 5869532 Trail Gazette 5861691 Channel 8 6353677 Reporter Herald 2247899 Coloradoan 5771590 EP News ERROR ----- 1 t Town of Estes Park, Colorado Community Development Department Summary Assessment Report IMU Lowell Richardson Deputy Town Administrator Town of Estes Park February 1, 2010 Community Development Department Q0 Summary Organizational Assessment r A. Summary Zucker Systems was contracted to provide a professional review of the Community Development Department's (CDD) operational practices. Selected through an RFP process Zucker Systems initiated a process applying proprietary methodologies specific to the community development industry to conduct the review. The onsite work conducted by Paul Zucker included customer input, policy maker input, staff input and observational activities (attending meetings, conducting research etc...). The review resulted in (55) recommendations for change. However, the report prioritized five key areas supported by one or more of the (55) recommendations deemed to possess a higher importance compared to others: 1) Inter-Governmental Agreement with Larimer County a. Recommendations (2 and 3) i. Continue the relationship with the county by renewing the IGA. ii. Possibly increasing responsibilities by adding functions to the agreement for building permits and inspections. 2) Lack of Planning a. Recommendations (10 and 49) i. CDD should initiate a more aggressive role in clearly communicating with the Town Trustees, Planning Commission and Town Administration their priorities for the CDD. ii. The CDD should provide a formal planning work program. 3) Timing of Reviews a. Recommendations (29, 30, 31, 32 and 34) i. Continue meetings with contractor association with a possible outcome to reduce the number of correction comments and details on plans. ii. New construction plan check first check should be 10 working days for residential and 20 days for commercial. Rechecks should be completed in 2 days for residential and 4 days for commercial. iii. Residential remodel plan check first check should be 5 working days and 10 working days for commercial tenant improvements and 2 days for any rechecks. iv. Provide a policy handout outlining plans and permits available for review and issuance over-the-counter. v. All other entities who review building permits should be held to the same standard of the building department. The building department should coordinate. 4) Technology a. Recommendations (18, 19, 11, 13, 14 and 16) Town of Estes Park February 1, 2010 Community Development Department ~1 Summary Organizational Assessment i. Conduct a technology review of permitting and other systems to include the newer version of PT Win. ii. Provide field computer and printer for the building inspector. iii. Acquire the correct copy machine for CDD when renewing copier lease for 2010. iv. Provide a multiple line phone for admin assistant. v. Upgrade GIS software so all CDD staff has same software. vi. When upgrading MS Office software all units in CDD should receive same upgrades. 5) Planning Processes a. Recommendations (45, 46,48, 50 and 51) i. All copies should be forwarded to affected entities at time of applications. ii. Public notification should be immediate for all BOA hearings. iii. Substantial changes should be made regarding staff decisions concerning Development Plan process. iv. Modify agenda process for items that are sent to Planning Commission. v. Consider modifications to the Final Plat process. These corresponding recommendations are currently under review by CDD staff identifying what changes can be implemented with little or no budget impact. Those items identified by the consultant having significant budget impact (i.e. technology improvements, equipment etc...) will be researched thoroughly before any recommendations are made. It should be noted the consultant did categorize recommendations into (37) Phase I and (18) Phase Il actions. Phase I actions recommend completion within nine months and Phase 11 actions recommend completion in 18 months. Each recommendation is given a priority rating of one, two or three. CDD Director Bob Joseph shall provide a work plan to implement those recommendations deemed appropriate for the Town of Estes Park. This work plan will be coordinated carefully with Town Administration insuring department efficiencies, systems and budget are coordinated to provide a quality service for the Estes Park community. Town of Estes Park February 1, 2010 Community Development Department 111 Summary Organizational Assessment . f 2/10/2010 THE ESTES PARK HOUSING AUTHORITY Joint Study Session The Town Trustees, The EPHA and the Planning Commission February 9,2010 Agenda Â® History of the EPHA Â® Overview of HousingNeeds Assessment Â® Range of need Â® Land: What is available Â® Land Use issues Â® Income Restrictions Â® Other Communities Â® Goals and Roles History of the EPHA Â® The EPHA was formed in 2000 by the 'Ibwn Trustees in response to the ongoing complaints of the local business owners Â® Since that time the EPHA has added Cleave StreetApartments Talons Pointe Lone Tree Village was added by Lenteland Vista Ridge Homeownership The Pines Section 8 Voucher program Down Payment Assistance Program 1 2/10/2010 2008 Nee-di)GidiissE,kit Summary Â® Additional Units needed by 2015 756-959 1 Â® This is ALL Unit types, ALL Income levels i Â® 298 are Rental and 661 Homeownership Â® Units needed to support job growth sustain employers, house in commuters Calculation of Additional Units Â® Tb address overcrowding Â® 'Ib address in commuters Â® Estimated Job Growth Â® Fill vacant positions Â® Responses from Households Â® Responses from Businesses Range of Need Â® 30% AMI and Less: Elderly, Disabled, Single Parents: Assisted mostly through federal programs. Section 8 rental assistance etc. 2 to 3 year wait list for Section 8 e 30%-60% AMI: Workforce Housing. Income restricted rental properties i.e Talons Pointe, Cleave Street, Lone Tree. Various financing tools available for this income range. Â® 80% and under: Deed Restricted Home Ownership. Ands are available in the form of grants, low interest loans etc. Vista Ridge 00 80%-140% Homeownership needs. Two wage earners, 1 2 '':211.' / 110 ' t'Up,1' Lili,2.- 1 L'/ 9" U ! 19 V't'7 Girr:!:~91#rt!..â€ž.T.FC,~ 2/10/2010 Has Anything changed?? Â® Undoubtedly with the change in economy Â®The numbers have shifted some, but the basic premise of need has not Â® Need vs Demand Rental vs Homeownership $* 4-*1# Â® Currently 69% ofvalley population are homeowners and 31% are renters Â® In 1999 a80%-50% ratio existed Â® Advantages to Homeownership: 1. Long termstability forcommunity 2. Fhctor in retaining young families ' Â® Advantages of Rentals: 1. Serves the workforce and therefore businesses 2. Serves lower income level Both can be directly tied to Economic Development - From Housing Needs Assessment Â® " In practice, fhe idealmix between ownership and rental housingis as much a matter of policy as it is of need. Municipal and county officials base policies not only on the extent of problems but on the vision they have for their conimunity's future 3 I . . 2/10/2010 Available Land Â® EPHA Owned Lot 4: 5.5 Acres: Lot 4 Â® Current plan **for 48*omeownershiplmits which was done in 2002 Â® The EP}ta is re-designing this plan Â® Goal is to complete development within the next 2 to 3 years A:vailable Land Â® The EPHA has and continues tostudy. and inventory the available land Â® Affordable Housing'standards' are $10,000- $20,0001and costper unit Â® Wapiti Meadows: $54,000 per unit Â® Fish Hatchery'Ibwn ownedproperty Impediments to Affordable Housing Â® NIMBY @ 0...Iwouldn'tmindiO>uildingof a Habitat home) if this were a regular house with regular people..' Â® 'Aftordable Housing is all well and good as long as it is not to the detriment of the neighbors' Â® 'kenters areloudand have toomany cars...' 4 . 1 2/10/2010 Land Use Tools 9 Inclusionarv Zoning A zoning regulation or ordinance requiring a builder or developer<to set aside X number of units or a percentage of units of a development for Affordable Housing. Can be cash inlieu. e Linkage or Impact fees A fee imposed on Developers or builders to offsetcthe *impact' 07 their new building or development. Can be on Residential or Commercial property , e Incentives Examples: Density Bonuses: Fbe Waivers: Buading Permit, tap fees, use tax etc. 4 Land Use Tools Â® ADU Accessory to a Single R~%12%;;i#~~7~=t detached Â® Donation of publically owned land Â® Sales Tax Â® Real Estate TransferTax Seasonality of State Taxable Sales - 1 --=.S-.-*--=006) 1 -PA#4-2-Calo,) / .... Lr .a -10'. 1 !11 1 1/11/1#1!fli i.liziii 5 2/10/2010 1 Other Communities Â® Town of Breckenridge: Impact Fees, Inclusionary zoning,ADUs and waivers of all building and permit fees. They receive monies from the Summit County sales tax. Â® Crested Butte: Inclusionary zoning,ADUs, Real Estate Transfer tax Â® Winter Park: Impact fee of $3.00 per SF on all construction 1 Other Resort Communities - Â® Inclusionary zoning: Basalt, Sam Miguel County, Telluride, Carbondale, Glenwood Spings, Eagle County, Steamboat Spring, Aspen/Pitkin County etc Â® Impact Fees: All of the above. Varied in amount and nature of the fee Â® ADUs: All comrnunities listed above allow and offer incentives Summit County Â® Passed a .125% Sales Tax for Affordable Housing development, programs and , operations Â® Impactfee of $2.00 (or less) per Sq. Ft. ofALL new construction or substantial remodel Â® Between 1/1/2009-10/31/20*they received $824,771 from sales tax and another $412,000 infees 6 . 2/10/2010 Income Limits Â® Currently no financial assistance available for over 80% AMI from any public sources Vision for the Future Â® Ongoing afford,Ne housing funding source @ Be able to serve the 81%-140% AMI in homeownership Â® 'Ib fill the rental housing needs for local workers of ail income levels Goal Setting Â® Community Vision for Housing 7 '.. . 2/10/2010 - Roles Â® Who deem*at? Questions, Comments and Discussion .IL LAOL,5,1,6....06'lisde,EMI",1 8 -,DÂ· ##*-1 v,-,r-'*. 97 --â€ž-.-0 -7 r . . ,; 147 F I / Ui\ 4%47 i i it~ w UL--./L-#-LkmEL., _=ZI : 37=-1 Â»trt 4/43& 1'9 A Guide for Local Officials 2007 7 ...... e Bill Ritter, Governor ,./Cobra40 <Departiwit â‚¬ Loca{ jlfrairs 5.4.1,4tard. E-:al 2,lefat 52â€¢24,7Â·01-' SW- 2-W- 9' 54.â€¢P INTRODUCTION The availability of affordable housing is paramount to maintaining healthy regional economies as well as helping families maintain financial stability. While this issue affects many individuals, it has larger impacts on the ec6nomy as a whole. Without affordable housing, businesses are not able to recruit and retain workers. Without workers, businesses are not able to function with high efficiencies. In many communities the cost of housing is becoming a source of community wide concern. New residents have raised the demand for housing units beyond the capacity of many communities to supply them. This high demand has resulted in record prices for land, homes and rental dwellings, eyen in the face of a softer real estate market. When housing costs are discussed, local leaders often feel that the housing market is beyond their tontrol and there really isn't any role for local government in proposing and executing solutions to housing problems. The conclusion that local housing markets are not influenced by Igcal actions is not borne out in history. The right of involvementon the part of local elected officials was clearly stated by the New York Court of Appeals in 1936: X ..3 The fundamental purpose ofÂ»government is to protect the health, safety, .and general welfare of the public..,its power plant for the purpose consists of the power of taxation, the police, power, and the power of eminent domain. Whereas there arises in the state, a condition' of affairs holding substantial menace to the public health, safdtyf general welfare, it becomes the 'duty Â·of 'the gove?nmQant to .apply whatever power is necessary and approp'riate to chack it. Since the I 930s local governments have used these Awers to enhance the general welfare and deal with the problems of health and safety as 1they relate to overcrowded conditions in slums. The National Industrial Recovery Act of 1933 authorized federal funds for the creation of local housing authorities with the power to finance, develop and own low income housing. Additionally, over time there have been other reasons for local governments to work to improve housing conditions. In reviewing these reasons, all of them reflect the primacy of the local government role in promoting and building an environment where individuals and familiesscan flourish. First, elected officials - mayors, city council members and county commissioner - have a strong desire to help solve human problems. Constituents who are forced into unsafe or overcrowded housing conditions may vote br candidates who want to improve those conditions. Second, the federal government has been a strong advocate for housing opportunity. Since the New Deal, there has been a declared national goal of a "decent home" for all Americans. Third, improving neighborhoods and housing conditions is one approach local governments use in combating various social problems from domestic violence to street crime. Lastly, it is in the best financial interest of the local government to stimulate actions that raise property values and increase the valuation of the jurisdiction. The ability to pay for needed government services is directly impacted by the ad valorem tax base of a given locality. While local elected leaders don't have complete control over all policies and regulations that impact both supply and demand for housing, the residents of a town may come to local leaders for assistance. As the federal government retreats from many programs, the pressure on local officials to be the first responder to problems is not going to recede. Market conditions in Colorado will continue to cause problems for many, and, consequently, local elected officials will have an increasing need for the best information regarding housing. This guidebook is designed to provide some cf that information. You will find information that should increase understanding of the following areas: . Provide a basic framework and rationale for local government involvement in housing markets. . Provide basic methods to enable communities to recognize and understand markets and the market problems regarding housing. . Provide basic information on the roles, tools and options that might be considered by a local government desiring to increase the supply of affordable housing in its community. . Provide information sources and agencies to contact in order to gain more information or assistance on housing issues. Affordable Housing: A Guide for Local Ofticials is not intended to be an encyclopedia on housing issues. Local leaders have limited time for single issues. This material is designed to provide enough information to engage in planning and deliberating various potential actions. It is assumed that other volunteers or local government staff will have the ultimate responsibility for implementing plans commissioned by elected officials. The Colorado Division of Housing mission is to help communities reach their housing goals. It is hoped the material presented will help your community take the necessary action to meet its goals. Kathi Williams Director, Colorado Division of Housing TABLE OF CONTENTS 1. Building Successful Communities 1-1 The Role of Local Government in Creating Affordable Housing 1-1 Building Successful Communities 1-2 2. Supply and Demand 2-1 jobs Housing Balance . 2- 1 Analysis of Housing Demand 2-2 3. The Changing Landscape of Government Roles 3- 1 The Role of the U.S. Department of Housing and Urban Development 3-1 Public Housing Authorities 3-2 Rural Development 3-2 The Colorado Division of Housing: Stepping up to the Plate 3-3 Federal Programs Administered by DOH 3-4 Private Activity Bonds (PAB) . 3-4 HUD McKinney-Vento Homeless Grants Administered by, DOH 3-5 Supportive Housing ProgranÂ» HMIS Implementation Grant 3-5 Section 8 Rental Assistance 3-6 Housing Standards and Technology 3-6 The Colorado Blue Ribbon Panel of Housing 3-7 Roundtable Advisory Groups 3-7 Down Payment Assistance Programs 3-8 Single Farriily Owner- Occupied Rehabilitation Program 3-8 .r Tenaht Based Rental Assistance Program (TBRA) 3-9 TBRA in Colorado Communities 3-9 Colorado Housing and Finance Agency 3-10 Colorado Department of Human Resources-Supportive Housing 3- 10 and Homeless Programs Colorado Housing Counseling Coalition 3- 11 Homebuyer Readiness 3-11 Community Housing Development Organintions (CHDOs) 3- 12 Becoming a CHDO 3-12 Other Housing/ Development Programs 3-13-3-14 Private Debt Sources 3-13 Colorado Housing Search.com 3-14 4. Empowered Communities: Legal Authority of Local Governments 4-1 Discretionary Control of Colorado Localities 4-1 Creating Housing Authorities 4-2 Benefits of Housing Authorities 4-2 City/Town Housing Authority 4-3 Powers of a City/Town Housing Authority 4-3 County Housing Authorities 4-4 Powers of a County Housing Authority 4-4 Veterans Housing Authority 4-5 Powers of a Veterans Housing Authority 4-5 Multi Jurisdictional Housing Authorities 4-6 Powers of Multi Jurisdictional Housing Authorities 4-6 5. Land Use 5- 1 How to Create Land Use Policies that Encourage Affordable Housing 5-2 Land Strategies 5-3 Additional Land Strategies 5-4 Construction Strategies 5-5 Additional Construction Strategies 5-6 Financing Strategies 5-7 Additional Financing Strategies 5-8 Incentives and Other Strategies 5-9 6. Local Housing Needs Assessments 6-1 Framework 6-1 Step One: Assembling the Team 6-2 Step Two: Data Sources 6-3 Step Three: Compilation and Analysis of the Results 6-4 Step Four: The Action Plan 6-5 The Housing Bridge 6-5 7. Housing Partnerships 7-1 Assessing Capacity 7-2 Development Options 7-2 Picking the Right Players 7-3 Potential Partners 7-3 Partnership Example 7-4 8. Reducing Regulatory Barriers 8- 1 The Three "R"s 8- 1 Annexation, Subdivision and Zoning Policies 8-2 Development Permit Processing and Building Codes 8-3 Financing Public Improvements 8-4 Effect of Environmental and Cultural Protections on Affordable Housing 8-5 Affordable Housing Programs & Strategies 8-6 Creating a Community Housing Trust Fund 8-6 1 9. Manufactured Housing, an Affordable Alternative 9-1 Division of Housing Inspection and Other Services 9-1 HUD - Manufactured Housing Program 9-2 Dealer Registration Program 9-2 Design and Construction of Manufactured Homes 9-3 Who Lives in Manufactured Homes 9-3 Factory Built Program (FB) 9-4 10. Designing Successful Neighborhoods 10-1 Strengthening Neighborhood Dynamics 10-1 Eliminating NIMBY -"Not in My Back Yard" 10-2 11. National, State and Local Housing Organizations 11-1-11-2 Colorado Hou sing Development Organizations (CHDOs) 11-3-11-6 Housing Authorities 11-7-11-10 Emergency Shelter Grant Homeless Agencies 11-11-11-12 Domestic Violence Hotlines 11-13-11-16 Senior Housing and Related Services 11-17 Housing for People with Disabilities 11-18 Migrant and Farm Worker Housing 11-19 Colorado Housing Counseling Coalition 11-20- 11-21 Other Housing Organizations 11-22 4 . ~~ 75*% AFFORDABLE HOUSING: tf Colorado Division of Housing tpey *' A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 1. BUILDING SUCCESSFUL COMMUNITIES t~ersified housing inven- holds or elderly to live else- ory is an essential com- where. ponent of successful com- munities because it allows â€¢ Workers may be forced to com- for a diversified workforce. Local of- mute significant distances, leading ficials increasingly recognize the need to traffic congestion and air pollu- tion. for a balance between jobs and hous- ing, and that land use plays an impor- â€¢ Unless growth is pursued in a tant role in creating that balance. well thought out manner, the val- The availability and cost of housing ues that draw people to our can have a major impact on various Colorado communities may be eroded. aspects of your community. Listed here are a few of the ramifications. â€¢ Economic development may be limited if potential new employ- ers feel that employees will have a difficult time finding housing. â€¢ Existing employers may be unable to recruit and retain staff needed :ady'l-lic/~Il)' for operation of their business. â€¢ Lack of diversified housing may force young people, single house- - THE ROLE OF LOCAL GOVERNMENT IN CREATING AFFORDABLE HOUSING Developing and operating housing is a risky business. Developers, in the creation of market rate pro- jects, willingly entertain that risk, since the prospect of achieving a significant return on investment also exists. Projects that provide workforce or affordable housing, however, may be more difficult and costly to develop. It is here that local governments play a critical role in helping their communi- ties achieve a balance of housing types for all persons in the community. 1-1 4Â»9 + AFFORDABLE HOUSING: Colorado Division of Housing %*4*49 A GUIDE FOR LOCAL OFFICIALS Director Kathi Williams BUILDING SUCCESSFUL COMMUNITIES TEN ACTIONS FOR LOCAL GOVERNMENTS: il[J|~ OF INTEREST: 1. Conduct a housing needs assessment; 2. Set a community housing plan; 3. Develop criteria or definitions of affordable housing; According to the national 4. Reduce the impact of regulations on affordable association of homebuild- housing; ers (NAH8), it is esti- 5. Contribute land to affordable housing; mated that the one-year impact of building 100 6. Provide financial assistance; single-family homes in 7. Reduce, defer, off-set or waive development Average City USA include: fees for affordable housing that meets your criteria; â€¢ $/ /.6M in /oca/ in- 8. Establish a land banking program; come; 9. Allow property tax/sales and use tax waivers; â€¢ $ 1.4M in taxes and other income for 10_ 10. Allow "Fast Tracking" of affordable housing projects. cal governments; and â€¢ 250 local jobs INSIDE STORY 1,11 1 1 6 1 ........ .. 4 Q-- -- 1. Springtree Village Senior Apartments is an affordable housing , tax credit project in Durango. The City of Durango leased the land to the project at a low cost to - r:34 - - ensure affordability for fifty years. 1-2 /6Fcozo)' Mt e 16) AFFORDABLE HOUSING: Colorado Division of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams 111:5* Director 2. SUPPLY AND DEMAND S ince the economic downturn 44*7911-! 111 f L.U. -ililli of 200 I , the housing industry 4 - â€ž.7, 459 /94 iwit,6- .i.-T*9~7..lial has shown it is one of our na- 44 1,Il~~.-~17/~ tion's biggest economic en- - /4.J.5,/*ill ' 1â€ž11,~- gines. According to the national ~ ' -4 .- Association of Homebuilders, ....N" 4 .N.~. (NAHB), housing accounts for ap- housing choices for households with proximately 14 percent of the na- different incomes and for those tion's Gross Domestic Product. The needing housing accompanied by sup- housing industry is vital to Colo- portive services. While it remains a rado's state and local economies - goal to make many Colorado renters creating jobs and generating taxes homeowners, many lack the re- and wages. sources to do so. People with the As the Colorado economy recovers, lowest incomes benefit most from it will look different than it did during deeply subsidized rental housing and the high times of the Internet boom. housing accompanied by supportive Waiters and waitresses, construction services like case management and workers, store clerks and others em- access to classes. ployed in jobs created by disposable income are vulnerable to layoffs or reduction in hours. There is a need for a continuum of 10'Ir. -4.~- JOBS/HOUSING BALANCE AND f#-11 ANALYSIS OF HOUSING DEMAND When planning for future economic development, or when responding to economic development proposals, it is important for communities to take their local housing market into consideration. A community that has high housing costs that attracts jobs at $10 an hour or less may find that they have a severe lack of affordable housing for new employees, or that employees are forced to live in other communities and commute long distances to work. Pre-planning to create affordable housing options for low- and moderate-income households will keep new employees in town in safe, decent housing that they can afford. Keeping employees in town helps schools and local businesses and cuts down on traffic and congestion from commuters. 2-1 Colorado Division 0.'FELop AFFORDABLE HOUSING: of Housing Â»*fy A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director ANALYSIS OF HOUSING DEMAND ,ER~ Use these calculations to compare incomes to housing prices: -nl 1. Convert hourly wages to annual incomes: OF INTEREST: Hourly wage x 2080 = Annual income Example: $ 10/hr x 2080 = $20,800 2. To determine how much housing is affordable at According to the national these income levels, use the following calculation: association of homebuild- Annual income / 12= monthly income ers (NAHB), it is es#- mated that the construc- Monthly Income x .30 = monthly housing budget tion of 100 multifamily 2080 / 12 = $1,733 monthly income units in Average City USA $ 1,733 x .30 = $520 monthly housing budget generates: â€¢ $5.3M in /oca/ in- This wage earner can afford to pay $520 a month for rent and utilities. come; This analysis does not take into consideration two-income households. â€¢ $630,000 in taxes and other revenues for /oca, governments; After determining what new employees can afford for rental housing, com- and munities need to look at the prices and availability of units in the local â€¢ / /2 /oca/ jobs. housing market. INSIDE STORY Talons Pointe The Town of Estes Park and local water and sewer special districts waived tap fees in the amount of $41,478 and ,/1/I'll"IM'llill//1,/9/'Ilili/'r./646"/digi:'ile#56/li:*.Ill $ 11,017 in building permit fees to help create affordable rental and homeownership opportunities for low-income residents of tie community. This is in addition to the $400,000 already contributed to the development of the overall project. 2-2 K , /;06@3942' Colorado Division 4 -/e W AFFORDABLE HOUSING: of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams NalyÂ« Director 3. THE CHANGING LANDSCAPE OF GOVERNMENT ROLES he downsizing of the federal needed to offset those costs, which, government recognizes that added with a profit attractive to most state and local officials are private developers, places much of best positioned to address the private market housing out of problems and issues unique to their reach for many low- and moderate- jurisdictions. It encourages state and income families. local governments to make services more demand responsive and cost- Many factors contribute to these efficient while increasing the willing- costs and can be controlled with ness of households to pay for and measured oversight and innovative maintain services that they desire. planning techniques applied by local Local jurisdictions have the simulta- governments. Such factors and meth- ods are discussed in more detail in neous need to be attractive to busi- Chapter 5. ness in order to generate income, provide infrastructure and provide for the social needs of their commu- nities. Private developers react to the basic economic concepts of supply, de- .~ :=j mand and profit in a fashion similar IMIMP"fli .1.Â¢. N...1 - to other industries. Rising housing .,.Ii'll/~"*....~.-.C / -I. development costs, however, in- crease the purchase price or rents THE ROLE OFTHE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) Housing cost increases are of concern to HUD, as both production costs and rental assistance vouchers escalate. To respond to an ever-increasing demand for dollars, Congress has trimmed the number of Section 8 vouchers available and is evaluating all of its programs. HUD is responding by instituting reforms and placing greater emphasis on partnering its limited federal resources with state and local governments, as well as private sector and nonprofit organizations. While Congress contin- ues to rely on established programs, more reforms are expected and the role of HUD and other fed- eral agencies will continue to change. 3-1 I '. 44 ...A. .6 #f~44~ AFFORDABLE HOUSING: Colorado Division of Housing 0*\8 {331 Re/*~ Â»\UÂ»/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director PUBLIC HOUSING AUTHORITIES (PHAs) Public Housing Authorities (PHAs) ant rents. Public housing tenants typi- were created by the Housing Act of cally pay a percentage (usually 30 1937 to develop, own, and manage percent) of their income as rent to federal public housing under contract the PHA. with HUD. PHAs are overseen by a In addition, the Colorado Division of Board of Commissioners or Director Housing, the Colorado Housing Fi- who are either elected or appointed nance Authority and the Colorado by the city or town. PHAs administer Department of Local Affairs, Suppor- federal public housing units as well as tive Housing and Homeless Programs Section 8 tenant-based vouchers. (SHHP) are PHAs that assist commu- Historically, PHAs have been highly nities in accessing federal housing re- regulated by HUD. However, recent sources, including Section 8. federal legislation has given greater flexibility to PHAs to decide how to use federal housing resources to meet housing needs in local commu- nities. Federal public housing is developed, M//Fllly.'-I- owned, and operated by PHAs. HUD 142~~M.1492/full provides an operating subsidy to pay flmi-=/F/1 r:1214 for the costs of operating and manag- Dl"14 11--1,~ ing the housing not covered by ten- .r- "FÂ¥ 2/-1/,Tilil RURAL DEVELOPMENT Rural Development (RD), an arm of the U.S. Department of Agriculture, funds a variety of programs that promote rural homeownership, including self-help housing; housing repair and rehabilitation; and rural housing direct loans. RD also assists multifamily rental housing, including farm labor housing; rural rental housing; rural loan guarantee programs; housing preservation; and rental assistance pro- grams. Additionally, RD provides opportunities in community development and empowerment; business and cooperatives; and community facilities. 3-2 ef ~311 AFFORDABLE HOUSING: Colorado Division of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director COLORADO DIVISION OF HOUSING: - m STEPPING UPTOTHE PLATE .-/./.11/& 9- The Division of Housing is a sub-agency of the Department of Local Affairs . that works to ensure that Coloradoans live in safe, decent and affordable :I'll/'ll/&31/9 1"ill/:~ housing by funding the following: 1. Rehabilitation of existing housing or new construction 1 - Kathi Williams, Director, of single family homes, multifamily apartments and Division of Housing homeless shelters; 2. Direct loans, loan guarantees, equity investments or subordinated debt for construction or permanent financing; 3. Homeownership assistance granted to local agencies who, in turn, provide low-interest down payment assistance loans that are amortized or deferred and are due on sale of the property or death of the borrower. Local housing authorities, private developers, nonprofit corporations, cities and counties may apply for financing. Most funding provided by the Division requires a contribution from the community served, and the housing must be owned or occu- pied by persons with moderate incomes. STATE HOUSING BOARD 1 - 9':-Ii.. ip/'llia.illi 1 4. ./2Â· c Â·Â·:. f *21 . 1-//0,221/Fling Eall= + 6181)*j *2-I'll:~al*. 22 t~"liallimiw~ . ,%.- ....9,/.-0. 1 p.li' 4 11.-~ 4242 â€žMd,*--- N'--Â·-1 ft -' Mike Rosser Suzanne Anarde Theo Gregory Sally Hatcher Jack Kelly EugeneLucero Karen Weltkunat PUBLIC PRIVATE PARTNERSHIP: FORECLOSURE HOTLINE The Colorado Foreclosure 1 lotline connects horneown- il~0ll/illlllllliqllillllllllllli ers with trained professional housing counselors. .2/2*liEâ„¢[Â¥RinY*~ CHASEO Call for ttee advice. ~H:lir,1/I[,Ttiâ€žâ€žâ€žâ€žâ€ž These counselors will help borrowers understand their I.lf-~0~z461-Hoi@â€¢ COLORADO options while working with the borrower and the lender ~ , Mil Division of Housing to help avoid foreclosure. Made Possible by Freddie CARHOF 3-3 14 AFFORDABLE HOUSING: Colorado Division of Housing 9*fâ‚¬ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director FEDERAL PROGRAMS ADMINISTERED BY DOH HOME Investment Partnerships: Community Development Block Eligibility: States, cities, urban coun- Grant: (CDBG) ties, and consortia of local govern- Eligibility: Entitlement Communities ments with binding agreements are receive direct funding. Non-metro- eligible to receive formula allocations politan cities apply to the state for as determined by HUD. There are use of funds on a project-by-project four basic program types: basis. - Homebuyer assistance; - Rehabilitation for owner- Principle eligible activities: occupants; - Neighborhood revitalization; - Rental housing acquisition, rehabi- - Economic development litation and construction; and, - Improved community facilities - Tenant-based rental assistance. - Infrastructure improvements; - Affordable housing. Within the areas above, there are CDH administers the housing por- four eligible activities: tion of CDBG. - Acquisition of property, including down payment and closing costs; - Rehabilitation (conversion and reconstruction); - New construction; and - Tenant-based rental assistance. lizI].1 Elaizi i PRIVATE ACTIVITY BONDS (PAB) Fifty percent (50%) of the state Private Activity Bond cap is allocated directly to state authorities, and fifty percent (50%) is allocated to local governments whose populations warrant allocations of $1M or more. These allocations are available to qualifying local governments from January I to Septem- ber 15 of each year, and may be used for manufacturing; qualified redevelopment projects; single fam- ily mortgage revenue bonds; qualified residential rental projects; multi-family housing projects; water, sewer and solid waste disposal; and hazardous waste facilities. Any unallocated remainder is retained in the Statewide Balance. Any portion of a direct allocation not used by a state agency or local gov- ernment to issue bonds for a carry-forward purpose or for a mortgage credit certificate election by September 15, reverts to the Statewide Balance for allocation by the end of the year. 3-4 g 25 )% AFFORDABLE HOUSING: Colorado Division of Housing 4\11*Â« A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director HUD MCKINNEY-VENTO HOMELESS GRANTS ADMINISTERED BY DOH Emergency Shelter Grant: (ESG) Housing Opportunities for Persons Program with AIDS (HOPWA) Program This grant assists homeless persons The HOPWA formula grant program by providing a complete continuum provides states and localities with re- of supportive services at emergency sources and incentives to create shelters and transitional housing pro- long-term comprehensive strategies grams. It also assists in the preven- for meeting the housing needs of tion of homelessness when house- low-income persons with Acquired holds experience a sudden, but tem- Immune Deficiency Syndrome( AIDS) porary loss of income that results in or related diseases, such as HIV. an inability to pay rent, mortgage or These strategies may include Tenant utilities. Based Rental Assistance (TBRA), Eligible Recipients: Housing Development activities, Sup- portive Services, and/or Short-Term States, Local Governments or Non- profit Organizations Rent, Mortgage or Utility Assistance (STRMU). Eligible Activities: - Shelter operating expenses; - Essential services; and bl:'i&('lle/inrul//1/lil.Vi - Homeless prevention activities. ~-1 ' . 1Â£99 SUPPORTIVE HOUSING PROGRAM - HMIS IMPLEMENTATION GRANT This Supportive Housing Program Grant assists small, rural homeless organizations 11# in Colorado with hardware, software, system security and training for implementa- tion of the Homeless Management Information System (HMIS) required by HUD. ~ Eligible organizations are those rural, non-domestic violence agencies receiving 3*1 . -- 4 Emergency Shelter Grant (ESG) or Community Development Block Grant (CDBG) .41 444.e â‚¬ funding from the State. This grant is available through a partnership with the Colo- v rado Coalition for the Homeless (CCH). 3-5 ~5~4~ AFFORDABLE HOUSING: of Housing Colorado Division 443* A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director SECTION 8 RENTALASSISTANCE The Colorado Division of Housing are less than 30% of the area median (CDH) offers rental assistance subsi- income. A family receiving rental as- dies (Section 8 Vouchers) to very sistance pays about 30% of their low-income families in 47 Colorado monthly income toward rent for a counties. CDH contracts with local unit on the private market, the re- housing agencies that focus on family mainder of the rent is paid to the eligibility and ensure that the rental landlord. unit meets housing quality standards. In recent years, Congress began cut- CDH offers rental assistance in coun- ting the number of HUD Section 8 ties served by small housing agencies vouchers available. HUD, itself, has and to special populations in the placed greater emphasis on partner- Denver metro area. For a list of ing limited federal resources with CDH contractors in the state, go to state and local governments, the pri- www.dola/state.co.us/doh, and vate sector and nonprofit organiza- choose "Rental Assistance". tions. While it continues to rely on Because the demand for rental assis- established programs, indications are tance is high, it is primarily available that more -#-' only to families, senior citizens and budget cuts * 1&-&7 disabled individuals whose incomes are to come. -: 6-1"'- I f'lul/*im'Imi,lill//Fifill' lillilill'll HOUSING STANDARDS ANDTECHNOLOGY /nspection Services: Factory built (modular) housing, commercial structures, and manufactured homes sold in this state must meet Colorado safety standards. The Colorado Division of Housing inspects these buildings to ensure the health and safety of Colorado residents who purchase these units. There are 15 Colorado counties without building departments. Hotels, motels, and multifamily homes built in one of these counties are required to be inspected by the Division to ensure that they meet the building standards adopted by the State Housing Board. Manufactured Housing Installation Program: This program regulates the installation of new and used manufactured homes. 3-6 2/3**70 AFFORDABLE HOUSING: Colorado Division of Housing #* 1 444Â« A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director COLORADO BLUE RIBBON PANEL ON HOUSING In 2004, the University of Denver â€¢ Establish a "One-Stop-Shop" for and Colorado Division of Housing access to housing development in- established the Colorado Blue Rib- formation and to streamline the bon Panel on Housing-a cross- housing development and grant ap- section of private, public and non- plication process. profit organizations involved in hous- Financing Housing Needs ing and community development. â€¢ The Colorado General Assembly Their mission was to explore ways to should restore housing develop- meet Colorado's housing challenges. ment grant funds to the 2002 levels Their recommendations are below. of $4.6 million. Strategic Partnerships â€¢ Provide new permanent and reli- â€¢ Pursue greater collaboration be- able funding sources for the acqui- tween housing and economic devel- sition, production, and preservation opment organizations. of affordable housing. Expand Data Collection/Delivery â€¢ Ensure that housing funds are used â€¢ Promote a common format for effectively to leverage funds from a housing needs assessments to facili- wide array of local governments, tate regional comparisons and to nonprofits, and for profit organiza- lessen the cost of updating assess- tions. ments. Policy Development â€¢ Create a task force to facilitate â€¢ Broaden policies that facilitate planning and completion of needs preservation of existing affordable assessments. units. â€¢ Maximize public access to needs â€¢ Monitor and evaluate how federal assessment and other housing data. state and local regulations and in- Improve Access to Housing Ser- centives affect the cost of produc- vices ing housing. â€¢ The Division of Housing should â€¢ Pursue foreclosure mitigation ef- work with other large housing forts. agencies to create common applica- tion and reporting procedures. â€¢ Coordinate "211" Services HOUSING NEEDS ASSESSMENTS * The Division of Housing envisions standardizing collection of data elements common to most hous- ing needs assessments while respecting the needs of local jurisdictions. This approach will allow communities to view housing information at the regional as well as local level to better understand housing balance. At the same time, state housing, community and economic development agencies will gain insights that assist them in creating policy and taking action. 3-7 4.hk-ic. 401 F 123 3 AFFORDABLE HOUSING: Colorado Division 1 *9 rn.1 9* of Housing 944*9~ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director DOWN PAYMENT ASSISTANCE PROGRAM CDH provides grant funds to re- (3) Create and maintain a regional gional housing organintions to pro- revolving loan fund to assist future vide down payment assistance loans families with Down Payment Assis- to low and moderate-income fami- tance. lies. These loans are set at a low in- (4) Enhance neighborhoods and terest rate and can be amortized or communities. deferred depending upon the need of (5) Provide stability for families and the family. When loan repayment is achieve lower foreclosure rates by received, the housing agency places requiring pre-homeownership coun- the payment into a revolving loan seling. fund. The primary goals of the down Annual follow-up with families is payment assistance program are to: highly recommended, as well as the ( 1) Provide opportunities for low and provision of foreclosure counseling, moderate income Coloradoans to if needed. purchase their own homes. (2) increase the number of home- owners in the regional housing or- -.- ganization's service area. SINGLE FAMILY OVVNER- OCCUPIED REHABILITATION PROGRAM CDH provides grant funds to regional housing organizations throughout the state to provide SFOO Housing Rehabilitation loans to low and moderate-income families. Like the Down Payment Assis- tance Program, these loans are set at a low interest rate and can be amortized or deferred depend- ing upon the need of the family. When loan repayment is received, the housing agency places the payment into a revolving loan fund. These funds are then recycled back into the community to pro- vide additional housing rehabilitation. The primary goals of the SFOO Housing Rehabilitation pro- gram are to: ( 1) Preserve, enhance and maintain affordable housing stock through repair and renovation within the community; (2) Protect the health and safety of the occupants through the correction of housing hazards; (3) Assist homeowners in improving the condition of their homes; (4) Allow homeowners to stay in their homes; (5) Create and maintain a regional revolving loan fund to assist with future housing rehabilitation projects; (6) Develop and sustain a network of local contractors to complete housing repairs and renovations. 3-8 270Â¥. LolaK *91*th AFFORDABLE HOUSING: Colorado Division 140 (300 40)* f of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director TENANT BASED RENTAL ASSISTANCE PROGRAM Tenant Based Rental Assistance (TBRA) Low-Income Housing Tax is a HOME program designed by the Credit or other subsidized Colorado Division of Housing (CDH) to unit or other housing assis- assist homeless families who are work- tance; ing and in need of housing. - Families are expected to work with a case manager and com- This program currently assists homeless plete case management goals t o families by: secure long term housing; â€¢ Providing temporary housing assis- - Families pay the greater Of 30% tance that allows families to stabilize; of income for housing costs or â€¢ Providing case management to assist a $ 100 minimum. families in obtaining long term hous- ing; â€¢ Stabilizing families and helping them move past multiple issues in their lives including limited job skills and/ or lack of problem solving ability, evictions and poor credit; â€¢ Providing opportunities with respon- sibility to participate: .. , 11 11 1, - Families are expected to apply .. for Section 8 (rental assistance) 941 1, 1 Id ....1.11.11....mi./Illp or other housing assistance, or obtain an affordable unit, e.g. TBRA IN COLORADO COMMUNITIES TBRA programs are in place in Adams County, Broomfield, Boulder, Colorado Springs, Denver, Fort Collins, Longmont, Loveland and Mesa County. Requests to expand the program to rural areas of the state are under consideration. Program specifications: â€¢ Requires a local match; â€¢ Requires coordination with other existing TBRA local government programs, public housing authorities and housing providers and workforce centers. â€¢ There is a limit of 18-24 months for rental assistance. 3-9 73:206. 4<2*34 AFFORDABLE HOUSING: Colorado Division 1*\Fl fal **/ of Housing 91**V A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director COLORADO HOUSINGAND FINANCEAUTHORITY The Colorado Housing and Finance designated buildings over 50 years Authority (CHFA) is an independent, old are entitled to tax credits of 20% self-sustaining establishment with of rehabilitation costs up to $50,000. nearly $3 billion in assets. CHFA sells The credit reduces income taxes bonds which enable it to finance sin- owed to the state and can be carried gle-family mortgages for qualifying forward for five years. homebuyers and facilitate develop- Mortgage Revenue Bonds - are issued ment of multi-family apartments for throughout the year by CHFA, and low- and moderate-income residents proceeds are used to purchase be- through a variety of programs. low-market rate first mortgage loans Low4ncome Housing Tax Credit Pro- from participating lenders for first- gram (UHTC) - allows individuals time home buyers. and corporations that invest in quali- Other programs: fying low-income housing projects to Mortgage Credit Certificate Program; receive federal tax credits that di- HomeStart Program; Housing Fund; rectly reduce their tax liabilities for Down Payment Assistance Program; ten years assuming that the project Taxable Bond Program; 501 (c ) (3) continues to comply with program 8ond Program; Housing Opportunity regulations. Fund; Private Activity Bonds. Taxable Loan Program - construction Phone: 800-866-2432. and permanent financing for new construction or substantial rehabilita- tion projects that are also assisted ~I~.. with LIHTC. Colorado Historic Preservation Income Tax Credits - owners of historically 10 + 34 1 't COLORADO DEPARTMENT OF HUMAN SERVICES - SUPPORTIVE HOUSINGAND HOMELESS PROGRAMS Supportive Housing and Homeless Programs (SHHP) is a statewide housing agency that operates in the Colorado Department of Human Services. SHHP's rental assistance programs are available in all 64 counties in Colorado. SHHP partners with over 60 private non-profit agencies to provide housing options for Colorado citizens with special needs. The rental assistance programs provide a subsidy for extremely-low and very low income families - the elderly, the homeless, and persons with dis- abilities - to rent decent, safe, and sanitary housing in the community. SHHP also provides technical assistance and sponsorship of HUD Supportive Housing Program and Shelter Plus Care Grants. Phone: 303-866-7350. 3-10 :~ 86< R)*3 AFFORDABLE HOUSING: Colorado Division \.Â· 2% 3944// / of Housing flieff A GUIDE FOR LOCAL OFFICIALS Kathi Williams COLORADO HOUSING COUNSELING COALITION The Colorado Housing Counseling CHCC has staffed the Foreclosure Coalition (CHCC) promotes afford- Prevention Hotline, held free semi- able housing for low and moderate- nars for potential homebuyers and income families through housing distributed brochures promoting counseling and the sharing of knowl- the availability of housing counsel- edge, resources and counseling tech- ing all in an effort to continually niques among members. educate the public about housing. CHCC member agencies help people A list of Housing Counseling Or- improve their housing conditions and ganizations may be found at the meet the responsibilities of home- end of this guide. ownership and tenancy. Among the many services the member agencies provide are: pre-purchase counseling, foreclosure prevention counseling, housing consumer education, debt management, and reverse equity + 4& F)7'. 47=Ill-ITÂ·...m.. mortgage counseling. 2 <11 -/flf #&222/4 Irit,/11 1 k V p=- 1- #Milido * 6 ldBulÂ¢ 1 HOMEBUYER READINESS Becoming a homebuyer is a huge step for most families, and readiness may be determined by several factors, including the following: â€¢ Credit history -A family should review their credit report, improve payment patterns and make corrections or updates; â€¢ Savings -A household savings account helps establish the discipline required to reduce debt; â€¢ Income and employment - Steady income and employment patterns promote successful homeownership; â€¢ Homebuyer workshops -- Families should attend a homebuyer workshop to understand the process of buying and maintaining a home. 3-11 9/ Â» AFFORDABLE HOUSING: Colorado Division of Housing 44*09 A GUIDE FOR LOCAL OFFICIALS Kathi Williams %~18 763~ Director COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHDOS) of affordable housing needs and pro- What is a Community Housing De- vide guaranteed resources for afford- velopment Organization (CHDO)? able housing development. A CHDO (pronounced like cho'do) CHDOs may: is a private, nonprofit, community- - Serve as owners, developers, and based service organization whose pri- sponsors of projects undertaken with mary purpose is to provide and de- funds from a PJ's required 15 percent velop decent, affordable housing for set-aside for CHDOs. the community it serves. The Colo- - Receive special assistance, such as rado Division of Housing (CDH) is a predevelopment loans, technical as- Participating Jurisdiction (Pj), eligible sistance or operating funds, from a PJ to receive and utilize HOME dollars that is not available to other types of to accomplish certain housing-related organizations. goals. Certified CHDOs receive cer- - Perform certain services as contrac- tification from a PJ indicating that tors to Pjs. they meet certain HOME Program - Contract with PJs in the same ways requirements and therefore are eligi- as other nonprofit sub-recipients to ble for HOME funding. do acquisition and/or rehabilitation of - If an organization becomes a certi- rental property; fied CHDO, it is eligible to take ad- - new construction of rental housing; vantage of the HOME funds set aside - acquisition and/or rehabilitation of just for CHDOs, as well as additional homebuyer property; special technical assistance from - new construction of homebuyer HUD. property; CHDO set-aside funds provide eq- - direct financial assistance to pur- uity for community-based organiza- chasers of HOME-assisted housing tions to undertake projects, build sponsored or developed by a CHDO their capacity to serve a broad range with HOME funds. BECOMING A CHDO HUD provides information about CHDO certification at their website. The following internet address is for a "CHDO Checklist" and serves as a guide to the steps required for a community nonprofit agency to become certified as a CHDO. http://www.hud.gov/offices/cpd/affordablehousing/training/chdo/characteristics/chdochec.pdf Major topics covered include the following: â€¢ Legal Status . Organizational Structure â€¢ Capacity â€¢ Relationship with Nonprofit Entities 3-12 metal ~4 3{gy~~ AFFORDABLE HOUSING: 1/6/ Colorado Division of Housing 9\422*/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director OTHER HOUSING /DEVELOPMENT PROGRAMS Low-Income Housing Tax Credits Nonprofit and for-profit developers While The Colorado Division of apply to CHFA, the State's allocating Housing (CDH) does not manage agency, which then evaluates and the low-income housing tax credit scores applications based on federal program (LIHTC), it does work guidelines and criteria identified in its closely with the Colorado Housing qualified allocation plan. For more Finance Authority (CHFA) to coordi- information about LIHTC, contact nate funding for projects. Tax cred- CHFA at: (303) 297-2432. its are an important source of equity New Market Tax Credits for many affordable housing projects. New Market Tax Credits (NMTC) The LIHTC is a credit against regular permit individuals and corporate tax- federal income tax liability for invest- payers to receive a credit against fed- ments in acquisition and rehab or eral income taxes for making quali- construction of qualified rent- fied equity investments in Commu- restricted, low-income rental hous- nity Development Entities (CDEs). ing. Regulations require that projects The credits total 39% of the cost of set aside a certain percentage of units the investment and are claimed dur- for low income residents. Investors ing a seven-year credit allowance pe- then take credits on an annual basis riod. over a I 5-year period, beginning with the year that the project is placed in Substantially all of the investment service. A "compliance period" dic- must be used by the CDE in support tates strict occupancy regulations. of business activities in low-income communities. wiaÂ·/'4- PRIVATE DEBT SOURCES Because tax credits and grants are generally not able to fully finance an affordable housing project, private debt sources are usually needed as well. Fannie Mae and Freddie Mac are the two govern- ment-sponsored enterprises (GSEs) that help provide additional financing. These agencies purchase investment-quality mortgages from lenders, package the mortgages as securities, and sell them on the open market. Contact your lender for additional information. 3-13 t~~ AFFORDABLE HOUSING: Colorado Division 64 (47 **/,1 of Housing 933ff,9 A GUIDE FOR LOCAL OFFICIALS d-/8 76/6 Kathi Williams Director OTHER HOUSING /DEVELOPMENT PROGRAMS (CONTINUED) Federal Home Loan Banks is the Community Investment Pro- Federal Home Loan Banks (FHLB) gram (CIP). Through this resource, are often able to assist affordable banks and thrifts that are member housing projects with loans made at a banks may borrow advances at a dis- lower rate than those available counted interest rate or request let- through the commercial lending mar- ters of credit from their regional ket. These Affordable Housing Pro- FHLB. Lenders may then use these gram (AHP) loans are often the first advances to fund predevelopment piece of funding committed to a pro- costs, purchase, construction, reha- ject, and are available for purchase, bilitation or refinancing of housing construction, rehabilitation or refi- that will serve households earning up nancing of very low- to moderate- to 115% AMI. It may include rental income rental housing. units if at least 51% of those units serve income-eligible households. For rental projects, at least 20% of Manufactured housing subdivisions or the units must be occupied by and affordable to households at or below parks may also be eligible under the above criteria. 50% of the Area Median Income (AMI). Funds may also be used for The Federal Home Loan Bank of additional units that target house- Topeka provides these services in holds at or below 80% AMI. For Colorado. You may contact them at ownership housing, households must (785) 233-0507. earn less than 80% AMI. Another product of the FHLB system 9 -1 - ap#Â¥t .7-22 - COLORADOHOUSINGSEARCH.com ColoradoHousingSearch.com is jointly sponsored by the Colorado Housing and Finance Au- thority (CHFA) and the Colorado Division of Housing (CDH) as a public service to the residents of Colorado. The site was developed through collaboration of multiple agencies with a common stake in developing, financing, and preserving affordable housing throughout Colorado. Its goals are to: â€¢ Help Coloradans find and maintain quality, safe and decent places to live; â€¢ Provide a clearinghouse for affordable housing and related services; and, â€¢ Facilitate operating efficiencies in the affordable housing market. 3-14 ~~ AFFORDABLE HOUSING: Colorado Division of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 4. EMPOVVERED COMMUNITIES: LEGAL AUTHORITY OF LOCAL GOVERNMENT ~n Colorado, local governments that control to local governments are empowered to initiate a who are empowered with the au- number of actions that can af- thority for adoption and enforcement fect the cost and supply of of pertinent codes, standards and housing in their communities. These policies. Accordingly, critical steps in actions, which may require a direct housing development such as zoning, or indirect role for local government, building codes and infrastructure le- encompass land use regulations, quirements all fall within the discre- building code and design standards, tionary control of Colorado locali- and creation of special-use authori- ties. This chapter is intended only to ties, which can leverage additional re- raise awareness of local legal author- sources for developing affordable ity. Specific strategies are found in housing. Chapter 5. The U.S. Constitution bestows to the states certain police powers which ..B=.D.-fÂ¢a~ - -.../i// include the right to regulate land use, tillillimislili:i:"& 9,/Fill/A.*A health, and public safety issues. In ,@9filillill/90/itti.tulri Colorado, state statutes relinquish f /Â¢11/~dimmm~~ijp' -99'(f~ DISCRETIONARY CONTROL OF COLORADO LOCALITIES Land Use Regulations are laws that set a jurisdiction's land use and development standards in re- gard to a wide variety of issues, including subdivision, annexation, and allowable land uses. While regulations are an integral part of a community's planning process, regulations may also substantially increase time and costs required to build affordable housing. Zoning Standards are used by local governments as a gauge for land use decisions, and help estab- lish areas of uniform development. These standards, however, may inhibit a jurisdiction from provid- ing a range of housing that meets its housing needs. Building Codes and Standards are created by local governments to safeguard health, safety, prop- erty and public welfare of a community. Infrastructure, including water, wastewater, sewer, streets, roads, parks, and schools, fall under lo- cal control. Local officials can proactively address environmental issues while also containing the cost of housing in their communities. 4-1 AP pew % AFFORDABLE HOUSING: Colorado Division of Housing 4*VA (al) R)*/1 A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director CREATING HOUSING AUTHORITIES Powers of a Housing Authority from state and local governments is less 1. Ability to apply for loans, grants, than ten percent of their total budget. and contributions from govern- As a result, certain expenditures by ment or other sources designed these authorities are not counted for specific authority purposes; against the local or county government limits imposed by the TABOR Amend- 2. Ability to acquire property by ment, a tax and spending limitation purchase, lease, operations, emi- measure. Local interpretation of these nent domain, gift, grant, bequest authorities varies, however, as it relates or devise from any person, firm, to TABOR restrictions. corporation or city government; 3. Ability to borrow money on terms. As government-owned businesses authorized to issue their own reve- nue bonds, housing authorities and urban renewal authorities have been interpreted in legal opinions as enter- prises rather than local districts, as long as their annual grant revenue BENEFITS OF HOUSING AUTHORITIES: A major benefit of housing authorities is the ability to use additional financial resources to devote to critical community projects in light of restrictions imposed on local governments by the TABOR Amendment. After enactment of TABOR in 1992, local government growth was restrained by re- quiring voter approval for any increases in revenues, spending, and additional debt. As government- owned businesses authorized to issue their own revenue bonds, housing authorities have been inter- preted in legal options as enterprises rather than local districts as long as their annual grant revenue from state and local governments is less than ten percent of their total budget. As a result certain expenditures by these authorities are not counted against the local or county government limits kn- posed by TABOR. 4-2 Â»n ~205431Â·9~~X~ /OFCOLO. C k .. WYof4\ ~*Â»'1% AFFORDABLE HOUSING: Colorado Division of Housing \*44*7*/ A GUIDE FOR LOCAL OFFICIALS ~41876_:M Kathi Williams Director CITY/TOWN HOUSING AUTHORITY Creation of a City/Town Housing Au- ment in the Department of Local Af- thority (HA) is initiated when a peti- fairs, the municipal governing board tion, sponsored by twenty-five (25) can act as the board of directors of residents of a community, is filed with the authority, or appoint a board of the town/city clerk indicating the housing commissioners. These offi- need for such an authority. After cials and their successors are consti- concluding at a community hearing tuted as a housing authority, which is that an HA is needed, a resolution is a body corporate and politic. Once adopted and forwarded to the established, an HA may employ a mayor's or county clerk's office. secretary who shall be an executive Upon filing a signed certificate by the director. newly appointed HA board with the Colorado Division of Local Govern- POWERS OF A CITY/TOWN HOUSING AUTHORITY v Determine whether housing conditions are unsafe, unsanitary, or substandard and investigate methods for improving such conditions; v Study /make recommendations on city plans addressing the clearing, re-planning, or reconstruc- tion where unsafe, unsanitary, or substandard conditions exist. Provide housing accommodations for low-income persons and cooperate with the city. v Prepare, carry out and operate projects including the construction, reconstruction, improvement, alteration or repair of any project; v Assume by purchase, lease, or other means any project undertaken by any government or by the city; v Act as an agent for the federal government in connection with the acquisition, construction, op- eration, or management of a project; v Arrange with the city or with a government for the furnishing, planning, re-planning, opening, or closing of streets, roads, roadways, alleys, property options, property rights, or for the furnishing of property services in connection with a project. v Lease or rent dwellings, accommodations, lands, buildings, structures, or facilities included h any project, and establish and revise associated rents or charges; v Access buildings or property to conduct investigations or to make surveys. v Sell, exchange, transfer, assign, or pledge property to any person, firm, .corporation, the city, or government; v Be exempt from the payment of property taxes to the state or any subdivision of the state; v Be exempt from the payment of special assessments to the state or any subdivision. 4-3 /152 Â· CO234 #30,-2...6*19PN Colorado Division AFFORDABLE HOUSING: of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director COUNTY HOUSING AUTHORITIES A County Housing Authority (HA) is ment in the Department of Local Af- initiated when a petition, sponsored fairs, the county governing board can by twenty-five (25) residents of a act as the board of directors of the community, is filed with the county authority, or appoint a board of clerk indicating the need for such an housing commissioners. These offi- authority. After concluding at a com- cials and their successors are consti- munity hearing that an HA is needed, tuted as a housing authority, which is a resolution is adopted and for- a body corporate and politic. Once warded to the county clerk's office. established, an HA may employ a sec- Upon filing a signed certificate by the retary who shall be an executive d- newly appointed HA board with the rector. Colorado Division of Local Govern- POWERS OF A COUNTY HOUSING v Determine whether housing conditions are unsafe, unsanitary, or substandard and investigate methods for improving such conditions; v Study /make recommendations on city plans addressing the clearing, re-planning, or reconstruc- tion where unsafe, unsanitary, or substandard conditions exist. Provide housing accommodations for low-income persons and cooperate with the city. v Prepare, carry out and operate projects including the construction, reconstruction, improve- ment alteration or repair of any project; v Assume by purchase, lease, or other means any project undertaken by any government or by the county; v Act as an agent for the federal government in connection with the acquisition, construction, op- eration, or management of a project; v Arrange with the county or with a government for the furnishing, planning, re-planning, opening, or closing of streets, roads, roadways, alleys, property options, property rights, or for the fur- nishing of property services in connection with a project. v Lease or rent dwellings, accommodations, lands, buildings, structures, or facilities included in any project, and establish and revise associated rents or charges; v Access buildings or property to conduct investigations or to make surveys. v Sell, exchange, transfer, assign, or pledge property to any person, firm, corporation, the county, or government; v Be exempt from the payment of property taxes to the state or any subdivision of the state; V Be exempt from the payment of special assessments to the state or any subdivision. 4-4 ff;*3%) AFFORDABLE HOUSING: Colorado Division of Housing 143-2**y A GUIDE FOR LOCAL OFFICIALS Kathi Williams 118718,3.. Director VETERANS HOUSING AUTHORITY The jurisdiction for the veterans ~~ A 670 Housing Authority (HA) is the area in which it has been created. All cities and towns, however organized, by or- --:tiÂ·,W + 11,41-2. dinance may create veterans' housing :Ilill, 1 P 11 11'll"mill f. 11*99 authorities and provide their duties ~ 1-4-*IT- 1 2 and powers to give preferences to ./.IMM,6/7&4,1*r -'ll/Zawl /4 Â·MI veterans of World War 11 as to all -CE . =11= housing constructed, purchased, or lilli :1 =111 leased by or under the direction of the executive director. POWERS OF AVETERANS HOUSING AUTHORITY v Study and make recommendations on city plans addressing the clearing, re-planning and recon- struction of areas where unsafe, unsanitary, or substandard conditions exist. Provide housing ac- commodations for low-income persons and cooperate with the city.; v Prepare, carry out and operate projects, including the construction, reconstruction, improvement, alteration or repair of any project; v Assume by purchase, lease, or other means any project undertaken by any government or by the city; v Act as an agent for the federal government in connection with the acquisition, construction, op- eration, or management of a project; v Arrange with the city or with a government for the furnishing, planning, re-planning, opening, or closing of streets, roads, roadways, alleys, property options, property rights, or for the furnishing of property services in connection with a project. v Lease or rent dwellings, accommodations, lands, buildings, structures, or facilities included ki any project, and establish and revise associated rents or charges; v Access buildings or property to conduct investigations or to make surveys or soundings v Sell, exchange, transfer, assign, or pledge property to any person, firm, corporation, the city, or government; 4-5 /06Â¥7Â£84% Colorado Division 15-903 AFFORDABLE HOUSING: of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director MULTIJURISDICTIONAL HOUSING AUTHORITIES Any combination of Colorado cities, towns, or counties may, by contract with each other, establish a separate governmental entity to be known as a multi-jurisdictional housing authority. POWERS OF A MULTIJURISDICTIONAL HOUSING AUTHORITY: v To plan, finance, acquire, construct/reconstruct/repair, maintain, manage, and operate housing projects and programs pursuant to a multi-jurisdictional agreement; v To plan, finance, acquire, construct/reconstruct/repair, maintain, manage, and operate housing projects and programs for employees of employers located within the jurisdiction of the author- ity; v To make/enter into contracts with any person, including contracts with state or federal agencies, private enterprises, and nonprofit organizations also involved in providing housing or the financ- ing for such housing projects or programs, irrespective of whether such agencies are parties to the contract establishing the authority; v To employ agents and employees; v To cooperate with state and federal governments in all respects concerning the financing of such housing projects and programs; v To acquire, hold, lease (as lessor or lessee), sell, or otherwise dispose of any real or personal property, commodity, or service; v To condemn property for public use, if such property is not owned by any governmental entity or any public utility, and devoted public use pursuant to state authority; v Exemption of property taxes to the state or subdivision of the state for properties owned by the housing authority for renters at 50% or below median income.; v Per Statute 29- 1 -204.5(7.5) a multi-jurisdictional housing authority may levy, in all of the area within the boundaries of the authority, a sales or use tax, or both, at a rate not to exceed one percent, consistent with sales or use tax levied by the state. The tax imposed is in addition to any other sales or use tax imposed pursuant to law and exempt from the limitation imposed by section 29-2- 108. The sales tax will be collected by the Department of Revenue, and must be approved by the eligible voters. v To levy an ad valorem property tax (not to exceed five mills), a sales and/or use tax (the rate not to exceed one percent), and, if no portion of the authority is located in a county with a popula- tion of more than one hundred thousand, development impact fees (two dollars or less per square foot) may be imposed, but must be approved by the eligible voters. v To establish development impact fees so long as: no portion of the authority is located in a county with a population of more than one hundred thousand and so long as the fee is not levied upon development, construction, permitting, or otherwise in connection with low or moderate income housing or affordable employee housing, and the rate is two dollars per square foot or less. 4-6 Trtf*% AFFORDABLE HOUSING: Colorado Division of Housing 41*7*/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 5. LAND USE emographic forecasters the cost of the local standards re- expect Colorado's popu- quired to build in each community. lation to exceed 5. I mil- These standards can require brick &- lion by the year 2010, cades, 3-inch diameter trees, or mini- with continued peaks and valleys of mum lot sizes. Each adds costs that economic change. This represents a are passed on to the consumer. De- 56% increase compared to our 1990 velopment fees and building stan- population. Continued growth will dards can increase development impact schools, transportation, air costs up to 20% for each housing quality, and other public services. unit. The solution adopted by many com- What impact does local government munities is to have development pay have on the cost of housing develop- its own way. Where this occurs, fu- ment? Local government's greatest ture development may include the impact on housing cost is in regulat- cost of each of these services: fees ing land use and building standards. for open space, parks and recreation It is when a local government in- facilities, roads, water and sewage cludes affordable housing in its long- treatment, fire and police protection, term development plans that the and trash removal. This means that community achieves the greatest the cost for these services will be gains in keeping housing affordable to borne by each new development and its residents. not spread among the existing com- munity residents and businesses. In mvvill...#im").60..- 1 . addition to fees for municipal ser- h vices, developers must also add in I .f/2/ -*'M'm~,1.WÂ£./. LAYING THE GROUND WORK A strategy for attracting affordable housing must be linked with local capital improvement plans be- cause the lack of sufficient infrastructure increases the cost of housing development, limits site op- tions, diminishes long-term economic competitiveness, and aggravates growth-related disputes. The amount of developable land is often dependent on topography, abutment to state or federal lands, or adjacent municipalities. In many towns, construction of market-priced housing has consumed the re- maining buildable sites, so planning ahead is important. 5-1 /4/ *29* 3 ~3*47% AFFORDABLE HOUSING: Housing Colorado Division of A GUIDE FOR LOCAL OFFICIALS Kathi Williams %%:k=tulb/ Director HOW TO CREATE LAND USE POLICIES THAT ENCOURAGE AFFORDABLE HOUSING STEP I. Analyze the purpose dations about the type and quantity of land use regulations and of housing needed to satisfy future building codes. needs. The primary purpose of these poli- STEP 3 Learn from other Colo- cies is the health and safety of resi- rado local jurisdictions dents living, working or traveling in Colorado communities have many the community. It is important to different approaches to affordable assess the cost and benefit of each housing. Programs range from incen- of these policies regarding their tives to requirements - from mone- long-term impact on housing devel- tary contributions to donations of opment, including consideration of land - from deferral of impact fees to the original purpose of the existing fee waivers. code or standard. STEP 4. Create an affordable STEP 2. Conduct a housing housing strategy. needs assessment. Opportunities to create affordable A housing needs assessment pro- housing occur on a frequent basis in vides an analysis of the overall con- local communities. By creating afford- dition of a community's housing and able housing goals and strategies tied the need for specific types of hous- to the housing and economic needs ing, i.e., homeownership, rental, and of the community, local governments special needs housing. A housing are prepared to take advantage of needs study also examines existing opportunities in a consistent and m- housing stock - its characteristics, tional manner. physical condition, and the number of units, and may make recommen- (fr...'- -7 , 1 jo, - , 4-KA- 1 --27>-;93 , V-----9 ...LUG-' 1% A THE INSIDE STORY City of Loveland Affordable Housing Incentives: The City of Loveland offers a variety of incen- tives to developers and builders of affordable housing within Loveland. These include fast track de- velopment review for qualified projects, modification of the development standards, a use tax credit, and density bonuses for qualified projects. 5-2 efiLi#MiliMIREF Â§ AFFORDABLE HOUSING: Colorado Division of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director LAND STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Zone sufficient land for all Allows market to respond Vacant or under-developed housing types, including to housing needs. Avoids land can be zoned based on medium and high densities. zoning delays that in- projected housing needs h- crease the cost of specific cluding single family, multi- housing developments. family, affordable and manu- factured housing. Reduce/eliminate minimum Provides for more units Allow alternative site de- lot size. per acre, thereby promot- signs, based on utility ac- ing efficiency and afforda- cess, soils, topography, and bility. other factors to minimize consumption of land. Increase densities for resi- Ensures that housing is Modify zoning ordinances to dential development in located close to employ- allow increased densities in commercial areas. ment. commercial areas. Allow Planned Unit Devel- As a flexible negotiated Modify local zoning or sub- opments (PUDs). tool, PUDs encourage i- division ordinances. fordable housing. Enact a parking reduction Increases land use effi- Examine parking standards ratio for projects that meet ciency and reduces cost and compute a reduction your standards for afford- of housing. formula for affordable hous- able housing. ing based on your communi- ties needs. Enact by ord- nance. LAYING THE GROUND VVORK Create a dialogue with the development community, including real estate agents, developers, builders, architects, engineers, - I :-Aâ‚¬ - I and planners. Allow everyone an opportunity to express their ,/-//2-/,I,1 ... 1 le points of view. Look for creative solutions to difficult issues. ,~--.'#.421-*-..%- 5-3 /6062% Colorado Division 1:(1 9 23 AFFORDABLE HOUSING: of Housing 94*Â»/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director ADDITIONAL LAND STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Create density bonuses to Provides for an increase in density Modify local zoning laws to allow encourage more efficient over the otherwise maximum de. density bonuses. land use. velopable density when a project incorporates a certain ratio of i- fordable units to market units and when those units will stay afford- able for a designated period of time. Increase densities for resi- Ensures that workers have either Target urban corridors in plan- dential development along proximity to their jobs or access ning documents as areas of in- transportation corridors. to mass transportation. creased density. Provide a linkage ordinance. Large-scale businesses provide af. Modify local zoning ordinances to fordable units during the develop- allow for linkage. ment process to increase housing units available to their minimum wage workers. Enact a maximum lot size. Decreases sprawl, increases densi- Identify and designate areas for ties and helps promote production maximum lot size development of affordable housing units. through the comprehensive plan. Encourage mixed-used devel- Allows residential to co-exist with Modify zoning regulations to al- opment. commercial uses. low for mixed-use development. Allow zero lot-line develop- Allows houses to be sited on a Adopt/modify local zoning laws to ment. common lot line to double the us- allow zero side or rear yard set- able space on the other side. backs. Allow/encourage clustering Reduces development and facility Modify subdivision or zoning of housing units. maintenance costs and provides regulations to allow for clustering. incentives for efficient develop- ment. 5-4 2/3 Colorado Division ~0i til**1%j AFFORDABLE HOUSING: of Housing i *4Â«99 2 A GUIDE FOR LOCAL OFFICIALS Director Kathi Williams CONSTRUCTION STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Enact uniform building Allows builders to use Adopt uniform building codes that are accepted by economies of scale for code. Limit amendments to all local governments. construction designs and local health and safety is- materials, reduces design sues only. If amendments and construction errors. to building codes are being considered, the cost of these variations should be considered in the decision. Allow flexibility in rehabili- Allows rehab and conver- Adopt a scoring system that tation codes while maintain- sion of buildings to afford- quantifies the overall stan- ing protection of health and able housing while main- dard of safety by assigning safety. taining standards for com- points to each improve- munity health and safety. ment relative to each other. This creates an overall safety threshold, but allows cost savings on individual improvements. Promote the use of infill de- Enhances housing afforda- Exempt or defer infill devel- velopment. bility by using existing n- opment areas from some frastructure and services fees or permit require- rather than requiring ex- ments, or grant tax rebates pensive new roads, water or density bonuses. and sewer lines. INSIDE STORY Grand County Affordable Housing program requires that devel- 1.'7:' 1.'~ ~ 2,;tetg':76'i.'; opers of five (5) or more housing units develop a plan along with . ,~4 19'z=,L h the Grand County Housing Authority to address affordable hous- j.*;Â£,2~ipÂ·t.Â·9%4 ing either within their project or within the county at large. f~F~ These efforts vary from project to project. 5-5 2294 ~4~ 11 AFFORDABLE HOUSING: of Housing Colorado Division 994*9 A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director ADDITIONAL CONSTRUCTION STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Provide an infrastructure loan Encourages affordable housing by On a case-by-case basis, a local or grant (up to a designated deferring extraordinary off-site government may provide a loan percentage) to meet off-site costs until the project is able to or grant (up to a designated per. infrastructure requirements for recoup some of these costs as centage) to a project that meets a project that meets criteria other sites develop. the criteria established by the b- established by the local govern- cal government. ment. For example, the local government may provide a loan or grant up to 15% of any off-site cost deemed extraordi- nary by both the local govern- ment and the developer. Ensure that zoning and land Prefabricated homes are con- Modify zoning and land use regu- use regulations allow manufac- structed under strict standards, lations to allow manufactured tured homes to be installed on have many styles, and offer an im- housing to be installed on perma- permanent foundations. portant affordable alternative to nent foundations. site-built homes. Allow innovative construction New materials and design ele- Modify building code regulations methods. ments may contribute to housing to allow innovative construction. affordability if allowed by a local Examples may include new government. plumbing or electrical techniques or materials. Assess development charges Costs for modest homes and Develop and adopt a formula for based on square footage rather apartments will decrease and lar. assessing development fees that than on a per-unit basis. ger, less land-efficient hornes will relates to cost per square foot. pay more, thus encouraging af- fordable housing. 5-6 Colorado Division *2Â»% AFFORDABLE HOUSING: of Housing 4/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Â»15* Director FINANCING STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Use one-stop or parallel Reduces time delays caused Vacant or under-developed permit processing. by multiple agency reviews. land can be zoned based on Such delays add to the car- projected housing needs rying costs of housing de- including single family, mui- velopment for time sensi- tifamily, affordable and tive items such as property manufactured housing. taxes and construction loan interest. Set time limits for multiple Reduces time delays and The lead municipal agency agency review and approval uncertainties. should transmit a single of building plans. master application to ap- propriate departments giv- ing each a set time for te- sponse. After joint hear- ings with the developer, each department has a lim- ited amount of time for i- nal decision. Provide for waiver or defer- Reduces up-front develop- Establish affordable housing ral of fees. ment costs and retains sav- criteria for which waivers ings in the project. The may be considered. Pro- project becomes more af- jects that meet criteria are fordable for current and eligible for waiver or defer- future residents. ral. TIME IS MONEY To reduce costs for affordable housing in your community, 16/VE,K<abc/A-AN."Â£11-7/' include the following in your expedited process: building per- PX.'<i~"-~i-lf-,YIDL,bi'"~ mit, zoning permit, subdivision approval, rezoning, certifica- 1,2~ tion, special exception, variance, or any other official action of 02~ 1 your jurisdiction having the effect of permitting the develop- 1*ligi.Lan,I,.,_,c~~ ment of land. 25,em....I-I'liNT--11 5-7 A#/*--_141, Colorado Division Pre jo) AFFORDABLE HOUSING: 1*\9. 058 *7*) of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams 144**y Director ADDITIONAL FINANCING STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Resolve historic and natural Saves time and money. Provides Requires that historic or natural resource protection issues, more certainty in the permitting resources be inventoried, evalu- such as landmarks or open and development process. Elimi. ated, and protected during com- space during the planning nates second-guessing or hidden prehensive plan updates. Re- process, rather than have costs during the development source protection measures must these issues delay the permit- process. be clear and objective. ting process and add cost to the project. Allow a Property Tax exemp- Encourages affordable housing. Develop affordable housing crite- tion for those developments Fewer costs are borne by the ria that affordable projects must meeting defined criteria. units. meet to qualify for a defined term of property tax exemption. Allow for Transfer of Devel- Accommodates housing construc. Development rights are assigned opment Rights (TDRs). tion while protecting environ. to land that is designated for open mental resources or open space . space. These development rights may be sold by the landowner and transferred to other areas where development is more de- sired. Use development agreements. This process works best as a pub. Developers enter into an agree- lic/private partnership where the ment with the local government risk can be borne by both sectors. which "freezes" the regulations applicable to the development for a period of time specified in the agreement. The Development Agreement includes the savings accrued from regulatory conces- sions in return for the construc- tion of affordable housing, public facilities, or preservation of envi- ronmentally sensitive land or his- toric structures. 5-8 52:*a (%802) AFFORDABLE HOUSING: Colorado Division of Housing 9~Â«** A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director INCENTIVES AND OTHER STRATEGIES STRATEGY BENEFIT PUBLIC ACTION Establish a local housing Provides a dedicated Depending upon the pro- trust fund. funding stream for afford- posed source of funding, a able housing in a commu- new revenue stream or tax nity. could be subject to voter approval under the TABOR amendment. Create an incentive for infill Utilizes infrastructure al- Passage of an enabling ordi- housing by reimbursing de- ready in place and re- nance to allow reimburse- velopment fees for afford- duces traffic impact of de- ment when infill housing able housing built inside de- velopment. occurs. fined boundaries. Enact a parking ratio reduc- Increases space that can Develop affordable housing tion for affordable housing be used for affordable criteria or standards and units. housing units. enact a resolution that al- lows reduction in the ratio of required parking spaces if standards are met. Allow accessory dwelling Allows for increased den- Create conditional use units. sities. An accessory standards and criteria for dwelling unit is an addi- parcels on which accessory tional living unit attached dwellings may be built, in- to a primary residence on cluding lot size, set back re- a single-family lot. quirements, access and parking. WORK/LIVE POLICIES A work/live policy encourages mixed uses in appropriate nonresidential or existing mixed-use areas to help Living -Â· -A achieve a reduction in commuter traffic; provide afforda- quarters 50-*â€¢IME"71â€¢; 1 bility; provide living space in renovated, redesigned struc- tures. This policy can be used to encourage and support artists, lone-eagle computer-based residents, home occu- Commercial i /41,11 i, -9 IM~~0~ pations and other compatible employment. 5-9 029*ftj AFFORDABLE HOUSING: Colorado Division 94%091 of Housing 9\Â»Â»/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director EXAMPLES OF AFFORDABLE HOUSING PROGRAMS El Paso County Housing Trust: Town of Breckenridge Fee Provides loans and grants to local Waiver Program: Waives all city- nonprofit agencies to finance hard generated fees. These fees include costs in the development or acquisi- building and permit fees, planning re- tion of affordable housing. view, water tap, and annexation sur- Garfield County Affordable charges. Housing Program: Requires all Town of Winter Park: A devel- new developments to make 15% of oper may either construct an units affordable to families with in- "affordable housing unit" or pay comes equal to or less than 80% of $3.00/sq. ft. as part of all new con- the county median income. The pro- struction, including multifamily, com- gram is voluntary at this time. mercial, etc. The Town government City of Lakewood: Waives plan- purchased eight acres earmarked for ning fees associated with housing an affordable housing "for sale" pro- projects proposed by nonprofits, and ject and is currently in contract nego- allocates financial resources to de- tiations with a potential partner to velop affordable housing projects. build the project. Assesses a fee used to mitigate the housing need created by the new de- t*Â» 14&66 W#*Mit y~*311#F/1--1//1/M velopment. Developers may choose -P-Ti to enter into an agreement with the town to build affordable units within their development. Proceeds go to support affordable housing. W . Dr~ & riptÂ·. Â· ' I. ACCESSORY DWELLING UNIT An accessory dwelling unit is an additional living unit attached to a primary residence on a single-family lot. Most local governments provide stringent guidelines which Â£Â»-04 detail how and when these units will be allowed. Some 1 = 1,4 -4 - ..,Gr 7 N J U .:le, r-e. N '911% 43:n, communities approach the issue on a case-by-case basis. dilillillit'r Other communities utilize conditional use permits and a set of criteria for parcels on which accessory dwellings may be built, such as lot size, set back requirements, access, and Accessory unit parking. 5-10 Colorado Division *c -3Â«>% AFFORDABLE HOUSING: 4*\9 (2) S/*f of Housing 94%%*if*/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 6. LOCAL HOUSING NEEDS ASSESSMENTS his chapter of the Guide for Market Study - A Market Study Local Officials summarizes provides independent confirmation the steps needed to quan- that a specific housing proposal will tify and confirm the scope be successful in the market place. of housing needs facing a community. Most lenders require an independent Below are definitions of two distinct Market Study to confirm assumptions terms that tend to be confused and about your housing proposal. The incorrectly substituted for each following criteria will be analyzed as other. part of a market study: project loca- Housing Needs Assessment - A tion (shopping, employment, housing needs assessment provides a neighborhood), market area identifi- general analysis of the overall condi- cation (socioeconomic characteris- tion of the various types of housing ties, physical and political bounda- in a community and the need for spe- ries), demographic data (age, house- cific types of housing hold size, number of households), re- (homeownership, rental, special lationship to existing and anticipated needs housing). The Housing Needs comparable developments, i.e., com- Assessment is important in determin- peting products and a statistical ing the type and magnitude of hous- analysis of the number of households ing issues and needs in a community. that will be available for the pro- In addition, it is an important tool in posed housing project. narrowing the focus of possible hous- ing proposals and provides an overall guidance document. The most useful ---0 Housing Needs Assessments will be t 1 designed to allow for easy updates. ,Â·47 U i--61 1/\\ FRAMEWORK The following steps provide a general framework for completing a review of local housing needs and creating and implementing an action plan to address housing issues: 1. Assemble the team 2. Identify and organize data sources 3. Compile and analyze of results 4. Determine and implement an action plan. 6-1 ber~ Colorado Division 154*21 AFFORDABLE HOUSING: of Housing 1 NE< 59/4/7 â‚¬ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director HOUSING NEEDS ASSESSMENTS STEP ONE: ASSEMBLING THE TEAM An important step in the analysis of is critical in providing an accurate and local housing needs is assembling a unbiased housing needs assessment team of individuals and organizations to the community that balances com- to involve in the needs analysis proc- munity desires and objectives with ess. The goal of this team is to co|- the proposed outcomes suggested by lect and analyze housing related h- the collected and analyzed data. An formation and to provide the results RFP can be used to select a qualified of this analysis to the broader com- consultant. munity. Local Responsible Party-A Local Task Force-The goal of a trusted and responsible local individ- local task force is to bring together ual should be selected to organize, concerned citizens from public, pri- support and manage the Housing vate and nonprofit sectors to ana- Needs Assessment process. This h- Iyze local housing supply and de- dividual will need to have the time and resources available to see the mand. A task force with diverse and representative composition can pro- project through to completion. This vide a wide range of perspectives individual may be a local government and foster a cooperative working re- employee or an individual with ties to lationship for future efforts. the housing industry in the commu- n ity. Outside Professionals-Many 10- cal task forces determine that out- side assistance is necessary to de- velop, analyze, and present housing needs and issues to the community. Professional housing needs assess- ment and market study firms bring an objective, outside perspective on the housing issues in a community. This 3?y I.:i:lillilmilmilp INSIDE STORY .1.lill A professional consultant may be selected through an RFP (request for proposal) or RFQ (request for qualifications) process. The selected professional should bring strong analytical skills that are complimented by experience working in communities with similar populations and demographics. 6-2 f> e 3% AFFORDABLE HOUSING: of Housing Colorado Division 4*ie)Â»f A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director HOUSING NEEDS ASSESSMENTS STEP TWO: DATA SOURCES A great deal of information is avail- come familiar with the housing stock able for use in conducting a Housing and assess the condition of occupied Needs Assessment, including sources buildings, the number of "for rent" maintained by federal, state and local and "for sale" signs, and identify w- governments and the private sector. cant land suitable for construction. Many sources offer access to their Building Permits contain informa- housing data via website. tion about the estimated value of the Public Purpose Housing Organi- construction. Estimated value can h- zations that assist low income dicate trends in housing costs. Infor- households with housing vouchers, mation about building permits can be weatherization, or other resources obtained from the local government can provide valuable data on unmet agency that administers building per- housing needs and special popula- mits. tions in the community. Many agen- Interviews, Focus Groups and cies maintain waiting lists of eligible Surveys with residents, local prop- households that are unable to be erty managers, real estate agents, served due to a shortage of re- grassroots organizations and local sources. civic leaders can be used to collect U.S. Census Data-This data is or- information about housing needs in ganized by regions, metropolitan sta- the community. tistical areas, urbanized and rural er- Local Real Estate Agents and eas, counties, census tracts, block Property Managers - The local groups and blocks. The last census Board of Realtors, local real estate was completed in 2000. agents and property managers may Other Housing Assessments - have valuable information about com- Local planning agencies, the local munity housing needs and the types housing authority, or the Colorado of housing that are available. Division of Housing may have com- Housing Affordability - Median pleted a recent assessment of hous- income for each county can be ob- ing needs as a condition of receiving tained from the Colorado Division of federal housing funds. Housing. Current rents and pur- State Demographers Office - chase prices can be obtained from Extensive data on specific areas of DOH and the local real estate com- Colorado by population and econ- munity. omy can be obtained from the State Housing Conditions Census data Demographers Office. and local surveys can be useful in es- A Windshield Survey is an infor- timating how much of the housing mal site inspection of housing stock stock is in need of rehabilitation. in a community. It is a way to be- 6-3 OF(821 Colorado Division feÂ»jEF 1% AFFORDABLE HOUSING: of Housing %*<iâ‚¬*58 A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director HOUSING NEEDS ASSESSMENTS STEP THREE: COMPILATION AND ANALYSIS OF THE RESULTS The completed Housing Needs As- 4. Housing Stock Conditions - sessment is a preliminary evaluation This criteria describes the condition that should give the community a of the housing stock in the commu- general idea of the size and type of nity (boarded or abandoned build- housing development needed to ings, vacant lots, seriously deterio- meet the housing demand in the tar- rated occupied homes). get area. The next step in the proc- If an analysis of the Housing Needs ess is determining how to use the in- Assessment results indicate that the formation contained in the Assess- figures in criteria (1) and (2) are suffi- ment. Depending on the established ciently high and rates in (3) are ex- goals of the local task force, listed tremely low, the next step would to below are some of the criteria to use be to proceed to identifying housing in analyzing the Housing Needs As- development goals. The analysis of sessment information. criteria (4) can help determine the 1. Unmet Need - This criteria de- type of development that will be the scribes the frequency of unmet low most suitable for the community. A income housing requests that repre- substantial number of boarded and/ sent real demand for units; or abandoned houses -- that are vi- 2. Incidence of Complaints - able structures -- can suggest a focus This criteria describes the incidence on housing rehabilitation. A lack of of complaints about housing quality viable structures and a high number and conditions to local service or- of inadequate structures would justify ganizations or code enforcement au- a new construction strategy. thorities; 3. Vacancy Rates - This criteria provides vacancy rate information about housing affordable to lower h- come populations; and r INSIDE STORY J 1- Local realtors and property managers may have valuable information about the need for housing in your community and the types of housing that are available. Pertinent questions to ask of these professionals may include typical rents by type and size of units, property condition, renter prefer- ences and special need units available. 6-4 037~* AFFORDABLE HOUSING: Colorado Division 9% 63) 4/4 of Housing Â»~429*/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director HOUSING NEEDS ASSESSMENTS STEP FOUR: THE ACTION PLAN There are many possible actions to Concurrently, the need to preserve solve community affordable housing home ownership for low and moder- needs: ate-income families could be met by a â€¢ New construction of affordable single family homeowner rehabilitation ownership and rental units; loan program, operated by the housing â€¢ Rehabilitation of existing housing; authority with grant funds provided by â€¢ Purchase/conversion of existing the Division of Housing. market rate units to affordable Moderate-income residents might be units by nonprofit housing provid- assisted in attaining home ownership ers; through a down payment assistance â€¢ Creation of rental assistance pro- loan program administered by a local grams; nonprofit. While these programs are â€¢ Creation of homeownership assis- being developed, the housing authority tance programs; and could administer a Section 8 rental as- â€¢ Creation of housing for special sistance program for very low-income needs populations. families. The final goal of an action plan is to Churches or social service providers assure that safe, decent and affordable might form partnerships to address housing is available to all members of the needs of homeless or mentally ill the community. New public-private residents with city support or grants partnerships can help meet this goal. from private foundations. The overall For example, a community may de- plan can address all the segments of cide to address low-income family need identified in the community with- housing with construction of new out overburdening any single organiza- rental units by a housing authority. tion or service provider. HOUSING BRIDGE Housing Bridge The housing bridge is a needs assess- i.61 ill R}MII 0 14'*.1. ment tool that may be used to help a 105% 11# L*luri L.f..4 1{1'6 . . community achieve housing balance. Â£0Â· .6 *01 5118411 21 r< 1, 0%.1 AirrK#*41,3.. 1'41|101 116% lili i H- leâ€¢el ' - Â£95[HHILL:tilll I -4< s.0 Up , 10 AMI zeSIMI 11.~Alli j Ene,gmel 6...1-1â€ž...... 1 - . Housing Bridge used with permission of McCor- ,~ < 4 r HÂ®[* 1 mick and Associates, Inc. 6-5 .,3. 9 - 4: 1. 34 â‚¬ + -*5 7 I lili :-4 4 4.. 1. . 40 : .% W ..r - al> '8Â¥8'?929~ 9 NCY & RENT SURVEY P 11:ird Quarter zoo; 3 1.f ' #40*3 Lincoln Omaty R,VAL REPORt Marketing NitrneÂ» rand Valley Needs Assessment I. 11014*ing fitiÂ«ty 35"5* C -gmlttle fi .6. 104 4,â‚¬1 1* A01* 4/ AL.....4 6,1â€¢n I â€¢ Fâ€¢cl "64 If '4$'...*..-.:.-.' -r... ...-. , 0 .Â· , 4/. Â·4 Â®â€¢e" -~.ti,...Â· . ..'.twif, ,Â·.Â¢0%~â€¢beJ ' I *0./. ~ AM-V' 4#*1*~ 11,~~*4, At-th 'ju.,Up 'lf#re 2,â€¢â€¢â€¢ 4Â¢~â€¢,1*, 4. N.9 ' N Aâ€¢â€¢ 14 '41.1., Â·.34,.,*.~a~.i #92 4â€¢%'13" .,41 4 4,4 ' 4 4/ ",1, â€¢ â€¢â€¢'â€ž2 ,#, ' 1 0*,14 4,4..th.4 &4" An,4 , /4 /â€¢4"â€¢441Â¢â€¢64,44'1*4",9.0,44*Â·1*k/1 kic I ". *4 . 42. h 4.Litt ':6' A p ~W '|61,4 1.A 14â€¢ 44;~A'A, |UN# A-Â·â€žsl-B :Â¢ 3 #1.r, , I'... 1 ~r k. ..', ",,"* ~ <,* &'Voil'~ ~~ '~1, .â€ž1$,1, .4,4.1,62 Â¢04*+Ug /Â· 4 T Â·44Â·Â·' 1,*itl â‚¬?#00 bu': t.ft AH'.fd.6Â¢. 1~ M,4~1~* 4**'P ~~Â»* '*. L ' 4 -*41â‚¬,r ...4,.. *,<.Â·Â©â€žn,K./1*.11.... , .r.,4.. -4 h . I.. $'..' ........4Â¢/.In . .1 4,~~~*,MiiÂ«,t, iÂ¢%. e~,h,Â· hit't ......Â¥ 104 4 $ 4 4â€¢44 .4,â€¢â€¢ti ,Â¢).4 t i"*.â€¢s:'i <4 'v4*.1 4,4 44%,"Â·di ..1 /-4 $Â·2. 0/.-N.*...W./010 i C .,~ 14*VWWâ€¢ *1,qâ€¢â€¢â€¢ivt e.,.,r..,, ati + JA 1-",4 t, 444 NA F # 04 af,t~in '" ' â€¢â€¢,Ja*4â€¢*6.iniÂ·\,4..,..ir.y,~.*u,i,*t,,,,~Â«1Â· Ihih' . : ... 4. 1,. â‚¬14 ...11* i 6-6 fi~% AFFORDABLE HOUSING: Colorado Division of Housing LAWÂ¢ A GUIDE FOR LOCAL OFFICIALS Kathi Williams 'tiziy Director 7. HOUSING PARTNERSHIPS ~s with any mechanism, an Priority Needs - What are the initial spark is needed to housing need priorities of the com- get the machine running. munity to be addressed by the task This is often the role of force? the local government in affordable Resources in the Community - housing. Active local government What groups and/or services cur- participation in an affordable housing rently exist in your community that project can lower the risk, reduce could assist in meeting the goals and costs by streamlining some of the objectives identified by the task processes and help to develop the force? best product to meet local needs. Process - How will the task force be This chapter will highlight: methods structured? What are the roles for for assessing local government capac- each member? How can task force ity; identifying partners; defining roles members collectively and individually of potential partners; and forms of work to remove barriers and facili- partnerships. tate the development process? What One way to begin a housing project will be the management structure of is to form a Housing Task Force. the housing project? The local government can work with Outcome - What product is de- the Task Force in clearly defining its sired? Does the product or project mission, activities, and responsibilities effectively respond to or fill a gap in in the development process. Follow- the housing needs of the community? ing are some questions to answer: .,44"132. a.i, Â£ f ilt v- *Tra ..1.Â» t,% d.,= R nill,41 .:I. 4.... i~Â·Â·.4.Lil/I'l4//IV P."* 1~~~ r~~1.4/JIL// INSIDE STORY Collaboration brought together a variety of agencies and entities to create Colorado House, a transi- tional housing project in a former motel and restaurant in downtown Colorado Springs. The prop- erty provides improved living accommodations to those homeless households that want to participate in a variety of case management programs being offered on-site. Participating agencies include Rocky Mountain Community Land Trust, American Red Cross, Homeward Pikes Peak, Partners in Housing, the City of Colorado Springs, El Paso County and a variety of foundations and other funders. 7-1 /44/f~ Colorado Division *le 3~ AFFORDABLE HOUSING: of Housing 4*f A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director ASSESSING CAPACITY Rarely does a single entity have the we willing and able to invest in resources and capacity to develop exploring our options? affordable housing. Consequently, â€¢ Can we rely on our internal staff partnerships bring together the ex- and funds to cover the initial ex- pertise and resources needed to penses? complete the housing development â€¢ Are there staff members with process and may enable a local gov- time and skills to undertake this ernment to work on solving different process? aspects of the local housing picture, â€¢ Will we need this skill again in the without pushing any one agency be- future? yond capacity or duplicating services. â€¢ Are there community volunteers When deciding on a course of action that can be called upon to help to address community housing needs, with critical tasks? local governments must first deter- â€¢ Will the involvement of these mine their internal capacity, deficien- community volunteers increase cies, and gaps in order to assess local support for the project? where partnerships may be required. â€¢ Are there other ways to accom- Evaluating Capacity plish this project or find the The following questions can assist money for it? local officials in assessing their capac- â€¢ Are we the most appropriate en- ity: tity to get this project done? â€¢ Should we begin the process with â€¢ If there are possible sources of the resources we have or hire revenue to help with the initial professional help? project phases, does this affect â€¢ If we begin on our own, at what these decisions? point, and for what tasks do we hire professionals? ~2~ â€¢ How much time and money are .,/1"'fil....cil"- DEVELOPMENT OPTIONS ( 1) Use a Request for Proposals to publicize needed services for interested parties to submit state- ments of qualification, services and prices. (2) Hire a developer to manage the whole process. (3) Assemble an initial project team from people who can carry out early activities without payment. (4) Apply to public agencies for operating funds or pre-development funding (5) Form a development committee as part of the project. 7-2 fe-*% AFFORDABLE HOUSING: Colorado Division of Housing 99%29* J A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director PICKING THE RIGHT PLAYERS No matter the nature of the partner- housing development. These organi- ship or housing project, local govern- zations often have access to a sub- ment officials need to ask questions stantial pool of volunteers as well as about the capacity and role of poten- funding sources for pre-development tial partners. It is critically important costs, operating expenses, and con- for the local government to partici- struction activities specifically ear- pate in this process. marked for non-profits. When seeking out potential partners When partnering with more than one be sure to consider these issues: local government in a housing project, - What is the work history and it is advisable to clearly delineate in a background of the potential written agreement which is the lead partner? government agency, what each gov- - Do the references confirm ernment's roles and responsibilities what the partner is saying? are, and, most importantly, the expec- - Are the financial records cr- tations of the project outcome. ganized and well kept? These are especially important in ru- - What is the organization's ex- ral areas when a housing project may perience in this particular draw its clientele from many of the form of development? smaller communities. - Does the partner have experi- ence in areas that are lacking by other members of the part- nership? Increasingly, non-profit organizations are becoming valuable partners for ,/At.*38# 4/4/IM. local governments in each stage of .~foll/ 1 POTENTIAL PARTNERS Funding Partner - Provides grants or loans to the project in return for long-term affordability. Project Deve/oper-Manages the team Construction/Projea manager - Day-to-day project oversight. Service Provider - Provides services to the project once it is built. Housing Authority - May provide Section 8 vouchers and ability to exempt property taxes. Property Management-Manages the project upon completion. Neighborhood Partners - Engage community members in a positive fashion about the project. Lenders - Provide financing for project. 7-3 Colorado Division WPLEE~% AFFORDABLE HOUSING: of Housing *44%09 A GUIDE FOR LOCAL OFFICIALS Kathi Williams 1.18.16 >i Director PARTNERSHIP EXAMPLE HOLIDAY NEIGHBORHOOD, BOULDER dies and on-site supportive services. Four additional units will serve households at or below 30%. The City of Boulder provided a Sec- tion 108 loan of $4.2 million to pur- %/0/.a.Vi Etti~j.WI.K chase the entire Holiday Drive-in site in 1997. The City also committed Boulder Housing Partners (BHP) is $2,276,000 in grants to the overall master developer of an entire site project. that was once the Holiday Drive-In. The agency sold finished lots to a wide variety of builders. BHP has 5- 7")7 2 2â€ž nalized purchase agreements with three different developers to buy 56 of those affordable units. The entire development will include 330 dwell- ing units, a community garden, a new city park, artist studios, offices, res- The other partners included the taurants, and other neighborhood Mental Health Center of Boulder businesses. County; Federal Home Loan Bank of Topeka, the Colorado Division of Housing, and the U.S. Department of 1, 1,1.Are Housing and Urban Development (HUD). About 137 of the dwelling units will be permanently affordable. BHP will acquire 22 one-bedrooms, 29 two- bedrooms, and 5 three-bedroom units. The Boulder County Mental Health Center will screen applicants and provide them with rental subsi- 74 Colorado Division 4/'Al*6% AFFORDABLE HOUSING: of Housing 9* A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 8. REDUCING REGULATORY BARRIERS ~he state's rapid increase in that is affordable to current or pro- development from the early spective residents and may affect a 1990's to early 2000's made community's ability to attract an ade- growth management a pri- quate workforce. It is imperative that mary concern for state and local a community examine its growth elected officials in Colorado. Many regulations to understand and lessen communities closely examined public their impact on affordable housing. policies used to guide the creation of CDH has identified four types of land transportation systems, water supply, use regulations frequently cited as open space, and housing. Many also barriers to affordable housing. Those adopted policies that growth should regulations include annexation, subdi- "pay its own way," resulting in some- vision and zoning policies; develop- times complex and confusing impact ment processing and building codes; fee structures. public improvement financing; and Although Colorado's economy regulations to protect environmental slowed for a time, indications are and cultural resources. that it is now rebounding. Most growth-control policies and fees have remained in place, ready for when the economy does turn around. Public policies related to growth con- trol direct development according to REDUCE LAND COST BARRIERS a community's wishes. Sometimes, however, those tools inhibit housing AL. Aa. THE THREE "R"S â€¢ Reinvest in your community's housing stock to help develop affordable housing for local fami- lies; â€¢ Reform community development policies to help achieve a housing balance. â€¢ Renew community housing partnerships that help produce affordable multi-family units for working families. 8-1 9;1%7 1% AFFORDABLE HOUSING: of Housing Colorado Division Â«*la 63 A *4 <1*04/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams '112Â« Director ANNEXATION, SUBDIVISION AND ZONING POLICIES Traditional land-use controls such as Regulations often present either a annexation, zoning ordinances (which cost incurred by the development, or regulate the general placement and a lost opportunity to balance a com- density of land uses in a community) munity's housing stock. The more and subdivision regu/ations (which gov- regulations, the higher the cost to ern site-specific development) can the community. Ultimately, devel- have significant impacts on the price opment costs are passed on to the of housing. Laws governing annexa- consumer, whether renter or home- tion and subdivision may increase owner, as a higher cost per square time and costs of developing land ad- foot. The higher the cost per square jacent to a municipality. foot, the less affordable the unit. While zoning generally is intended to During times of economic recession, separate incompatible land uses, the it becomes critical for state and local use of exclusionary criteria in defin- governments to provide housing op- ing the term "incompatible" can lead portunities for all income levels as a to overly strict restrictions or prohi- means to encourage new employ- bitions on housing types that are ment. Employment and housing are most likely to be affordable, including inextricably joined together. Across multifamily or manufactured housing. Colorado, more communities are Other examples of zoning matters acknowledging the linkage and re- that affect housing affordability: viewing their land use and subdivision . Minimum house size, /ot size, or regulations with a goal of increasing yard size requirements; housing affordability. â€¢ Prohibition Of accessory dwe#ing units; â€¢ "Excessive" subdivision standards; *P*236Llf-*C>* â€¢ Restrictions on land zoned and avai/- ab/e for multifamily housing or manu factured housing. ..7.-0-E~&11 EXAMPLES THAT BALANCE LAND USE: MIXED USE - allows housing to exist above retail shops or other commercial development. OVERLAY DISTRICTS - allow for flexibility of zoning and development standards and could include such things as small building setbacks, garages placed in the rear of homes, narrow streets to calm traf- fic, and vertical mixed uses. 8-2 /Â¢01..COLO: AFFORDABLE HOUSING: of Housing Colorado Division A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director DEVELOPMENT PERMIT PROCESSING AND BUILDING CODES A second type of regulation likely to struction standards for the building. affect a community's supply of afford- A local building code plays a vital role able housing is development process- in protecting not only the occupants ing and permitting. The permitting of the building but also its long-term process can be expensive. Separate value. In Colorado, the total cost of fees may be charged for issuance of permit and review fees may run over valid building, electrical, plumbing, $ 1,200 per house. Since most of this heating, and gas permits. In addition, cost is passed directly from the fees may be charged simply to review builder onto the price of the home, builder plans to ensure compliance overall home prices rise and the with various rules and regulations. overall supply of affordable housing In addition, permit approval proce- decreases. dures can overlap between agencies or jurisdictions, resulting in similar substantive reviews being required more than once. In some jurisdic- tions, as many as seven different agen- cies may review the adequacy of storm drains in a new residential sub- division. Building codes serve the important -====e===A i 1 -IrAL public purpose of health and safety by ,U=Â»>===sal , governing the use and installation of materials and the design and con- DECREASING THE COST OF REGULATION COORDINATE HOUSING STRATEGIES Coordinate housing strategies between municipalities and counties in planning affordable units; STREAMLINE PERMIT REVIEW PROCESS Streamline permit review process between agencies and jurisdictions; CREATE FLEXIBLE DESIGN STANDARDS Build flexibility into local codes for design standards. There may be adequate, but less expensive design alternatives that can reduce costs while still producing a quality product. 8-3 I. 4319*3%~ AFFORDABLE HOUSING: Colorado Division of Housing \\ 44.46 ,<77 V ~:-w**)*/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams 4tuay Director FINANCING PUBLIC IMPROVEMENTS Local comprehensive land use and While a community may recoup the capital construction plans solidify a cost of its infrastructure, it may le- community's long-term vision. In the duce housing affordability and result face of tremendous growth, planning in a workforce that cannot afford to ensures a community can handle new reside in the community in which it is business opportunities and accom- employed. A oommunity that does modate future residential develop- not have adequate housing for its ment. In times of slower growth, workforce may find that the employ- planning enables local jurisdictions to ers they hoped to attract locate in allocate scarce resources in an effi- communities that have more afford- cient and consistent manner. To pay able housing. The best approach is for many residential services, local to find a balance that maintains the governments have begun to charge integrity of a community's infrastruc- for the services they provide, using a ture but eases regulatory cost bur- "pay-as-you-go" plan to recoup ser- dens by incorporating waivers, de- vice and infrastructure costs. These ferral or off-set of fees for housing development charges include fees in that will remain affordable. lieu of payment, impact fees, adminis- trative processing fees and plant in- vestment fees to pay for service ex- pansion in their communities. ....t.-. While increasing revenues to pay for -2=.-~ ~.~ growth, these fees become increased costs for renters and homebuyers. .12.-1:.~..:. EXAMPLES: DECREASING THE COST OF REGULATION REGULATORY REQUIREMENT REMEDY Water/Sewer Tap Fees The Town of Crested Butte has a reduced fee basis for water and sewer taps for deed restricted housing units. Exactions The City of Colorado Springs shared the on-site drainage improve- ments for an affordable housing project. Development Impact Fees The Town of Breckenridge waived all city-generated fees except sewer fees for housing affordable to households up to 120% of Area Median Income. 8-4 F(firps) AFFORDABLE HOUSING: Colorado Division of Housing vt*#*/A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director EFFECT OF ENVIRONMENTAL AND CULTURAL PROTECTIONS ON AFFORDABLE HOUSING Probably the most commonly recog- ments on housing construction. nized, and potentially the most far- â€¢ Endangered Species Act (ESA). The reaching, resource protection stat- ESA protects endangered and utes that affect affordable housing are threatened species and their habi- the major federal laws such as the tat. Listing a species as endangered Clean Water Act and the Endangered or threatened occasionally can re- Species Act. These statutes have a move thousands of acres from de- potentially large impact on housing velopment, though this is rare. ) In construction. Such statutes tend to recent years, developers and local require significant amounts of time governments have begun working and/or money for compliance, be- cooperatively to avoid standoffs by cause of their unpredictability and be- designing and implementing habitat cause of their poor coordination with conservation plans each other and with state and local â€¢ National Environmental Policy Act programs. They may also lack any (NEPA). NEPA requires environ- standard dispute resolution process, mental impact statements (EIS) to other than federal courts. be prepared prior to construction Examples include: for certain projects involving fed- â€¢ Clean Water Act (CWA). The ra- eral funding or approvals. Prepara- tion's primary water quality pro- tion of an EIS may take months to tection statute affects planning and complete, depending on the size development for housing construc- and complexity of the proposed tion in a number of ways. First, it project and the development site. contains strict prohibitions on any construction activity potentially af- fecting wetlands. The Act also con- trols storm water runoff and non- . .-+ 4JR'A point source discharges, which can r -1 1 1 . impose additional strict require- . .A h ikit EXAMINE YOUR REGULATION: Review your cultural and environmental policies and regulations to ensure their reasonability; Review historic preservation ordinances; Allow adaptive reuse or conversion of surplus buildings. For more information, visit HUD's Regulatory Barriers Clearinghouse at the following link: http://www.huduser.org/rbdsearch/rbcdetails.asp?Docld= 1242 8-5 116( 9/ e 181 AFFORDAB LE H OU S I NG: of Housing Colorado Division 1*\36?3 %)4 â‚¬ A GUIDE FOR LOCAL OFFICIALS Kathi Williams ~1876> Director AFFORDABLE HOUSING PROGRAMS & STRATEGIES EL PASO COUNTY HOUSING TOWN OF CRESTED BUTTE has a TRUST FUND provides loans and reduced fee basis for water and grants to local nonprofit agencies to sewer taps for deed-restricted af- finance hard costs associated with fordable units. These include rental the development or acquisition of af- and ownership units restricted under fordable housing. agreement with the town or the CITY OF LOVELAND offers a vari- Gunnison County Housing Authority. ety of incentives to developers and CITY OF STEAMBOAT SPRINGS re- builders of affordable housing within views affordable deed-restricted Loveland. These include fast track rental and ownership projects which development review for qualified request concessions, according to es- projects, modification of the develop- tablished guidelines. Building permit ment standards, a use tax credit, and fees can be waived or deferred until density bonuses for qualified pro- occupancy or initial sale, and water jects. and sewer tap fees can be waived or TOWN OF FRASER assesses a fee deferred until unit occupancy or ini- on all habitable construction. The tial sale. Density bonus, code vari- fee is used to mitigate the housing ance, fast track approval, and use tax need created by new development. waivers are also available under the Developers can also choose to enter guidelines. into an agreement with the town to build affordable units within their de- velopment. Proceeds go to support affordable housing all TOWN OF BRECKENRIDGE has adopted policies and regulations to 1-liar address the need for affordable hous- ing. CREATING A COMMUNITY HOUSING TRUST FUND A community housing trust fund (HTF) allows local governments to respond to affordable housing or workforce housing opportunities on a case-by-case basis. HTFs generally have a committed, ongoing source of funding such as a dedicated portion of a sales tax or other revenue, or they may be funded from the sale of surplus property or through an annual commitment of general fund dollars. A local jurisdiction may set aside monies for future participation in affordable housing, provide dollars to housing nonprofit organizations, or use the dollars to prevent the loss of affordable housing stock. HTFs are flexible, community-based tools. 8-6 .. 1*/-4.0*a, 1% Colorado Division LAN<-EFÂ«% AFFORDABLE HOUSING: of Housing ?i*)232 A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 9. MANUFACTURED HOUSING, AN AFFORDABLE ALTERNATIVE M anufactured housing has to offer consumer savings in the 10- evolved dramatically from 20 percent range from a comparable its early roots in the site-built home. These savings can be travel trailers of the realized due to the inherent efficien- 1920's and 1930's, through defense cies in using an assembly line manu- worker housing in the 1940's, and facturing process, cost savings in bulk the mobile homes of the postwar material purchasing, sophisticated era. The dominant trend has been an materials and assembly handling sys- evolution from trailer vehicle to con- tems, and engineered construction ventional house. techniques. In the end, today's manufactured home can be an afford- Manufactured housing is today less able alternative for nearly all home- mobile, sturdier, safer, and more like buyers. site-built homes. The industry con- tinues to meet homebuyer prefer- '4#E ences for designer bathrooms, walk- i*â€¢i in closets, large master bedroom suites, open floor plans, conventional exterior finishes, and other amenities commonly associated with site-built ~ custom homes. The result is that many manufactured homes are indis- tinguishable from their site-built counterparts. Manufacturers are able DIVISION OF HOUSING INSPECTION AND OTHER SERVICES 1. Approval of the manufacturer's product design. 2. Approval of the manufacturer's quality control program. 3. Approval of the manufacturer's plant facility and manufacturing process. 4. Performance of on-going inspections of the manufacturing process in each plant. 5. Performance of inquiry, follow-up, and, when necessary, inspection of consumer complaints to ensure that the manufacturer corrects all code items. 6. Administration of a dealer registration program for retail sellers of factory built housing. 7. Administration of a manufactured home installation program and oversight inspections to en- sure proper home installations. 9-1 I 44-20% AFFORDABLE HOUSING: of Housing Colorado Division 4%490*/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director HUD-MANUFACTURED HOUSING PROGRAM A Manufactured Home is a struc- Colorado has participated in the ture, transportable in one or more HUD-Manufactured Housing Pro- sections, which is eight body feet or gram since 1976 as a HUD-approved more in width or four body feet or in-plant construction inspection more in length, or *len erected on agency (IPIA) for all homes built in site, is 320 square feet or more, is Colorado in compliance to the HUD built on a permanent chassis and is Construction and Safety Standards. designed to be used as a dwelling Concurrently, Colorado Division of with or without a permanent founda- Housing (CDH) also became a HUD tion when connected to the required approved State Administration utilities, including plumbing, heating, Agency (SAA) which consists of re- air-conditioning, and electrical . viewing consumer complaints for These homes have a permanent red code and non-code complaint items, HUD label attached to the tail light providing the manufacturer a copy of end, approximately one foot up from the complaint and making determina- the bottom of the house. This label tions that the manufacturer has ad- states that this home has been in- dressed the complaint in compliance spected and constructed in compli- with the Federal Act. Additional fol- ance with HUD Standards. In addi- low up actions such as site visits, tion to this label, each manufactured pursuing investigations, conducting home bears a data plate stating that hearings and other activities are per- the home has been designed to com- formed as necessary. ply with HUD construction stan- dards. The data plate is located d- ther in the utility room, the master bedroom closet or behind one of the cabinet doors in the kitchen. a,~*~1-rmnmfift'W/fi DEALER REGISTRATION PROGRAM Consumer protection against unethical or unlawful manufactured housing sales practices is available through the CDH Dealer Registration Program. Civil litigation and/or criminal prosecution may provide recourse for other unlawful practices. 9-2 . 1. Colorado Division +~eS AFFORDABLE HOUSING: of Housing 240,/ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director DESIGN AND CONSTRUCTION OF MANUFACTURED HOMES Manufactured housing is, today, less compatible with the architecture of mobile, sturdier, safer, more expen- communities where they will be 10- sive, and more like conventional site- cated, manufacturers now produce built housing. homes that are more like site-built Construction. Building practices homes in construction, size, and ap- for manufactured homes are basically pearance. Conventional lap siding, the same. The typical chassis is a double-hung windows, and higher welded steel frame, custom designed sloped shingle roofs can make dou- and fabricated for the loads of the ble-section homes undistinguishable particular model. The chassis must from their site-built counterparts. support the unit during transport, Most of today's manufactured homes balancing necessary flexure and ex- have vinyl, hardboard, or plywood cessive movement. The house is siding, with wood or vinyl trim, and typically framed conventionally with conventional fiberglass shingled roofs. lumber above the chassis. Once on the site, the wheels and towing hitch can be removed from the chassis. Interior/Exterior Design. To meet home buyer preferences and to make manufactured homes more WHO LIVES IN MANUFACTURED HOMES? Many families find manufactured housing to 4, â€¢â€¢f 114:U..24.,41 11.ad LeÂ» Than 31(1 n. 1,1 be an affordable alternative to stick-built w w 1406 - 40 - 49 t'rÂ·4 - ......... ..d,%44*m/1 housing. According to the 2002 Foremost FO 4 s* zir. I -,1,8, --'....1//'/I",I- 68 0 10"4 ~ study, .OVe.ib& â‚¬ 9.i Zr. /// 7.-/0.. â€¢ Fifty five percent (55%) of persons liv- .twn,ge Age 54.1 ing in manufactured housing work full- Eimplwi.qi., :f.,iu, 01 11â€ž:4,<,Id ItcÂ·id time; h,11 time $916 = IM time â€¢ Thirty percent (30%) of residents in Rclited mal - ~â€¢L~WmeN- JUM#SM X:~~ manufactured housing are retired. â€¢ Thirty percent (30%) of households re- Annual li~+MEMAN#W AlÂ¢*0~ siding in manufactured housing have le,44 11=n StÂ«000 4% Il $â€ž131111) St')99â€¢, 2,re "I incomes above $40,000; $20.001, 429.4,9 96 I .10â€¢El . SUUMMI . $19.994 1*'. ~ I'llill'Imill'll'll'lill â€¢ The median income is $28,000. $40.- $491100 i r. =i %41.(11*1 & (Diet 1â€ž: - â€¢ Average age is 54. I years. Ilte M:didn iâ€¢kâ€¢,mt M S.14.Â¥MÂ«, 9-3 I Colorado Division 09* AFFORDABLE HOUSING: of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams tel/~ FACTORY BUILT PROGRAM (FB) RESIDENTIAL CONSTRUCTION The Division of Housing administers partments are benefited by the and enforces the construction stan- knowledge and expertise of Section dards adopted by the Colorado State staff in factory-built residential con- Housing Board, currently the 2003 In- struction and having a single point of ternational Residential Code (IRC) contact for resolving all Colorado and 2002 National Electric Code factory-built residential issues. (NEC); reviews and approves manu- Factory Built Manufacturing facturer Quality Assurance (QA) Concept: The manufacturers of programs; reviews and approves Colorado Factory Built (Modular) manufacturer engineering manuals; re- homes cffer consumers homes built views and approves in-plant quality to the same model building codes assurance inspection agencies; reviews generally used by local Colorado and approves design and construction building departments for the con- documents; issues/affixes approval h- struction of site-built homes. By LE- signias; enforces the Boards authority ing a manufacturing process, these to pre-empt local ordinances and homes are constructed at a lower regulations; reviews and approves cost per square foot. The manufac- construction modifications to units turing concept involves training un- prior to, or during installation; col- skilled workers to perform a skilled lects fees adopted by the Board to task in a consistent and proper manner pay for reasonable costs incurred; and much like the automobile industry provides inspections in certified Colo- does. Additionally, the process is in rado manufacturing plants. place to ensure the inspection and Benefits: Colorado citizens are en- approval of all manufacturing work. sured that factory-built homes are properly constructed and manufactur- ers are ensured that their homes will be accepted throughout the State. The Section is a single point of contact for -I.--- citizens with questions or issues re- lated to factory-built residential homes and resolves consumer com- plaints related to construction stan- dard deviations. Local building de- -i--- al--I-'-I=-li 9-4 . A . Colorado Division â‚¬314)%) AFFORDABLE HOUSING: of Housing A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director 10. DESIGNING SUCCESSFUL NEIGHBORHOODS hether your commu- employment becomes more regional nity is promoting infill in nature. Other attributes of development, rede- healthy neighborhoods include parks veloping existing ar- and open space, schools, pedestrian eas, extending its boundaries, or access, commercial or mixed use ar- working on all of these, it is important eas, access to transportation, com- to create well-functioning, successful munity institutions and the creation neighborhoods, that include sufficient, of a neighborhood improvement safe and affordable housing. plan. Housing choice accommodates differ- ing needs, ages, lifestyles and family economic factors. Also important to neighborhoods, are social and eco- nomic infrastructures that strengthen the workforce and provide commu- nity support. Population diversity and dispersal are m important elements in creating suc- =--Ng-- cessful neighborhoods, especially as ~1) 1-1--- W STRENGTHENING NEIGHBORHOOD DYNAMICS â€¢ Analyze existing neighborhoods to understand characteristics that make them attractive and well- functioning. Encourage as many of these elements as possible into new or redeveloping areas. â€¢ Determine features that help neighborhood residents interact successfully. â€¢ Allow for mixed uses, that is, residential with commercial. â€¢ Create neighborhoods that allow a range of age groups. â€¢ Encourage small establishments that draw people that may provide informal meeting space. â€¢ Strengthen community engagement and participation. Churches, service clubs and other local insti- tutions are important neighborhood meeting places. â€¢ Create programs to improve the physical conditions of older neighborhoods. â€¢ Ensure that both rental and homeownership opportunities are available. 10-1 I - 4%**p.E*~ 61* B AFFORDABLE HOUSING: Ir/--Liee*le Colorado Division of Housing 444%2~ A GUIDE FOR LOCAL OFFICIALS Kathi Williams Director ELIMINATING NIMBY -"NOT IN MY BACKYARD" The "Not In My Back Yard" syn- â€¢ Require housing developers to drome, or "NIMBY", as it is often contact and involve all neighbor- called, is the tendency of neighbors hood groups and constituencies adjoining a new use or new develop- to insure their inclusion in the ment to testify against a proposed process. project, often based on misconcep- â€¢ Demonstrate that affordable tions or fears that property values, housing is a local community m- safety, or quality of life will be com- set, i.e. provides housing for the promised. It is important to begin workforce, provides local jobs early to create a process that builds during and after construction, and maintains community support for brings federal and state subsidies, affordable housing. addresses jobs/housing balance, . Anticipate and address neighbor- generates sales tax revenues, le- hood concerns regarding the de- duces traffic/pollution. veloping area or the specific pro- ject. â€¢ Provide factual information on community issues, i.e. design, density, crime, traffic, parking or other topics. ,//C,/IL ... /1/17/ :,Â» i-~ â€¢ Promote housing affordability as a L--i - I.- positive and important factor in ;râ€¢ ur, iL I wia :1.-liStistv .1, pl improving neighborhood condi- 4!Ilt~t. e.,m,0.t~~ tions. â€¢ Ask about people's concerns and acknowledge/address those con- cerns. EVENTS AND ACTIVITIES â€¢ Hold an affordable housing forum or town hall meeting; â€¢ Host an affordable housing breakfast for citizens and housing professionals; â€¢ Host a community affordable housing fair; â€¢ Request affordable housing as a topic of a Chamber of Commerce retreat; â€¢ Host community round tables on affordable housing; â€¢ Provide information on the linkages of affordable housing with other aspects of community life. 10-2 2/10/2010 Community Development Department 0 THE ZUCKER REPORT ANALYSIS --- Five Priority Areas 0 i) IGA 2) Lack of Planning 3) Timing of Reviews 4) Technology 5) Planning Processes Will . . - - 1 ... 2/10/2010 1) IGA 0 â€¢ Excellent approach best ever seen o IGA should be renewed o IGA should examine additional functions (valley wide building permits and inspections) 2) Lack of Planning 0 â€¢ Insufficient long range planning, i.e. comp plan 1996 and development code 2000. Lack of strategy to carry out comprehensive plan. o CDD create formal planning program. o CDD aggressively communicate clear planning priorities for the department. 2 . 2/10/2010 3) Timing of Reviews 0 â€¢ Planning/Building reviews meet/exceed state & national standards. Number of areas where processes can be improved and timelines shortened. o Continue contractors association dialogue re: the number of plan check comments. o Set timelines for re-checks of building plans. o Reduce residential remodels to five days and commercial tenant improvements to ten days. o Performance standards should be met go% of the time and reviewing departments should follow same review timelines of building department. 4) Technology 0 â€¢ CDD uses outdated permitting systems (limited capabilities) compared to most communities who use, at a minimum, field computers for building inspectors. o Assess cost of new permitting software. o Field computer and printer for building inspectors/code officers. o Smaller technology issues should be addressed. 3 I :. 2/10/2010 5) Planning Processes 0 â€¢ Meets and works within industry standards however there are areas for improvement. o Send out plan copies to all affected agencies at time of application. o Immediate notifications of BOA agenda once public hearing is known. o Modify steps for items that go to PC and final plat process. 4