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HomeMy WebLinkAbout2.0 Staff Report 10.18.10Exhibits for Public Hearing held on October 18, 2010 for a Text Amendment Regard ing Affordable Housing Exhibit Letter (AtoZl Exhibit A Staff Memorandum dated 1011812010 B Letter from the Garfield County Housing Authority c Proposed Lanquage for Articles 4 and 8 D Garfield County Comprehensive Plan of 2000 E Garfield County Unified Land Use Resolution of 200fl as amended F Proof of Publication G H I J -t l,r, '/ ,lr*/' {tfi/ oo EXHIBIT TO: FROM: RE: DATE: MEMORANDUM Garfield County Board of County Commissioners Fred A. Jarman, AICP, Director, Building & Planning Department Text Amendments to the Unified land Use Resolution of 2008, as amended specifically regarding refinements to Article lV: Review Procedures & Article Vll I : Affordable Housing October 78,2O7O l. Background The Garfield County Housing Authority (GCHA) met with County Planning Staff to discuss several areas of concern in administering the County's Affordable Housing Regulations. This memorandum includes a letter from the GCHA which describes the impetus for these changes which is attached as Exhibit A. The specific amendments, as they would appear in approved, are also contained in Exhibit B with a brief summary of the proposed changes below: 1. Section 8-401 & 8-402 Additional Category of Eligibility Proposed Change: Add a third priority category for "Applicants who will become fulltime residents of Garfield County by participation in this program. This request is based on the current economic situation and to accommodate applicants who are seeking to become Garfield County residents. Homes in the affordable housing program are sold first to income-qualified families working fulltime in Garfield County and then secondly to current residents of Garfield County. This new floor category would be open to income-qualified families seeking to become residents of Garfield County. This request is ensure sales in a down economy, stabilize families who will likely seek jobs closer to where they live, and recognizes the mobility of jobs in a regional economy. 2. Section 8-401(AX4) proposed Change: lncrease asset cap to 5150,000. Asset limit of 5150,000 is used by other AH programs in the County (Town of Carbondale program) and thus creates consistency. GCHA has had several requests from older buyers to raise the asset cap for qualification purposes. 3. Technical Changes A. Proposed Change: Section 8-401: Add language to clarify income requirement across three AMI categories. This information is currently in 8-302 and should be repeated for clarification. B. Proposed Change: Section 4-202 Add language that the Garfield County Housing Authority has the authority to propose changes to Article Vlll. C. Proposed Change: Section 8-a0a(B): Clarify that permissible financing excludes more than tOO% financing of the sale price of the home. D. Proposed Change: Section 8-302: Remove 5% down payment assumption in initial pricing formula. This assumption in the initial pricing formula for homes in the program was carried over from the first version of these guidelines. Removing this assumption will lower the initial price of AH homes. Permissible financing by buyers is addressed elsewhere in the guidelines (8-4048). E. Proposed Change: Section 8-102 and 8-201(A): Clarify applicability to all residential applications, exclude commercial. This clarifies that Article Vlll applies to all residential development (for-sale & rental), but not commercial development (see 8-201A).Additionally, this language responds to the June passage of H81017 which permits developers to voluntarily enter into affordable rental housing agreements with governments to satisfy inclusionary housing ordinances. Prior to this bill, the Telluride Case had discouraged most affordable rental housing options due to the CO statute prohibiting rent control. II. PLANNING COMMISSION RECOMMENDATION The Planning Commission forwarded a recommendation of approval to the Board of County Commissioners with the following findings: L. That the public hearings before the Planning Commission and Board of County Commissioners were extensive and complete, that all pertinent facts, matters and issues were submitted and that all interested parties were heard. 2. That the application has met the public notice and public hearing requirements of the Garfield County Unified Land Use Resolution of 2008, as amended. 3. That the proposed text amendments have been determined to be in the best interest of the health, safety, morals, convenience, order, prosperity and welfare of the citizens of Garfield County. 4. The proposed text amendments are consistent with applicable standards of the Unified Land Use Resolution of 2008, as amended, and complies with the Garfield County Comprehensive Plan of 2000, as amended. 5. The proposed text amendments do not conflict with State statutory provisions regulating land use. III. RECOMMENDED MOTION "l will make a motion to approve the proposed amendments to the Unified Land Use Resolution of 2OO8, as amended which are attached as Exhibit A with the findings set forth below:" 1. That the public hearings before the Planning Commission and Board of County Commissioners were extensive and complete, that all pertinent facts, matters and issues were submitted and that all interested parties were heard. 2. That the application has met the public notice and public hearing requirements of the Garfield County Unified Land Use Resolution of 2008, as amended. 3. That the proposed text amendments have been determined to be in the best interest of the health, safety, morals, convenience, order, prosperity and welfare of the citizens of Garfield County. 4. The proposed text amendments are consistent with applicable standards of the Unified Land Use Resolution of 2008, as amended, and complies with the Garfield County Comprehensive Plan of 2000, as amended. 5. The proposed text amendments do not conflict with State statutory provisions regulating land use. GARFPD couNrY HousrN" orr,t,r, 'I 430 F Railroad Avenue Phone (970) 625-3589 or (BBB) 627-3589 May 19,2010 Fred Jarman Director, Building and Planning 108 Bth Street, Suite 401 Glenwood Springs, CO 81601 RE: Changes to Article Vlll Affordable Housing Dear Fred: The Garfield County Housing Authority (GCHA) would like to suggest a few changes to Article Vlll after working with the revised article since adoption in fall 2008. The most significant change is to add an additional category of eligibility for applicants working outside the county but who would become Garfield County residents upon purchase. This suggestion is driven by the current economic climate and tightening lending requirements. At all times, GCHA would offer homes first to applicants in priority category one (full-time Garfield County employees), second to priority category two (full-time residents) and only then to this suggested third category. The remaining requests are technical in nature. We appreciated our meeting on May 11,2010 to discuss these changes. County Attorney Deb Quinn suggested a few additional technical changes which we have also incorporated to this request. We are providing a red-lined version of Article Vlll for your review and forward to the BOCC. We are available to answer any comments or questions about these suggestions. Thank you. Geneva Powell Executive Director EXHIBIT Rifle, CO 81650 Fax (970) 625-08s9 Sincerely, fu'*o^* Summarv of Suqqested Ghanqes to Article Vlll 1.8-401 & 8-402 Additional Category of Eligibility Add a third priority category to full-time employees not working for a Garfield County based employment source and who are not residents of Garfield County. Upon purchase of an affordable housing unit, these applicants would become Garfield County residents. This request is based on the current economic situation and to accommodate applicants who are seeking to become Garfield County residents. 2.8-401.A.4 lncrease asset cap to $150,000. 3. Technical Ghanges A. 8-401 Add language to clarify income requirement across three AMI categories. This information is currently in 8-302 and should be repeated for clarification. B. 4-202 Add language that the Garfield County Housing Authority has the authority to propose changes to Article Vlll. C. 8-404.B Clarify that permissible financing excludes more than 100% financing of the sale price of the home. D. 8-302 Remove 5% downpayment assumption in initial pricing formula. E. 8-102 and 8-201Clarify applicability to all residential applications, exclude commercial. EXHIBITL!oog Section 8-lO2Applicability. These requirements for affordable housing shall apply to all land use change applications in Garfield County, such that 15% of the lots proposed in the development shall be developed with affordable housing units. This regulation shall apply to developments proposing five (5) or more lots in Garfield County except as modified in Section 7-602, Affordable Housing Standards/Rural Land Development Exemption These requirements shall apply to residential applications includinq rental housing, not commer ln computing this requirement, any fraction of a unit lot above .50 will be rounded up and any fraction of a unit lot less than .50 will be rounded down. [Provided however that the number of units required under this Article shall not apply to non-expired Preliminary Plans approved by the BOCC under the Zoning Regulations of 1978, as amended and Subdivision Regulations of 1984, as amended.l (Resolution 2009-53) (Resolution 2009-87). Section B-z0lApplication Submittal Requirements. The applicant shall submit the following materials in addition to submittal requirements for application and review of the proposed land use. A. Affordable Housing Plan and Agreement. The applicant shall submit an Affordable Housing Plan that includes the following provisions. The proposed location of the affordable housing units. The proposed number and unit mix of residential units to satisfy the requirements for affordable housing, based upon the provisions of Section 8-301 , Computation of Number and Unit Mix of Affordable Housing Units. The proposed schedule for construction and completion of the affordable housing units in relation to the proposed construction and completion of the overall development. The proposed breakdown of affordable housing units by Category, based on provisions of Section 8-303, Execution of Deed Restriction by Applicant, including the proposed lot size and square footage size of each unit. 5. The proposed forms of deed restriction and any other documents necessary to comply with the requirements of this Article. 6. The proposed mix of ownership or rental housinq units. Any rental housing proposal will require additional guidelines not codified herein. 1. 2. 3. 4. 8-5GaRrIeIo CouI.ITY UuIrIeo LAND USE RESOLUTIoN oF 2008, AS AMENDED The applicant would be resp*onsible for proposing such quidelines including details for administration, on-ooinq affordability, and other deta.ilg. The pro-posed quidelines would be subiect to approvd by Ihe Board of Countv Commissioners. The proposed method of security to the County that will insure construction of the affordable housing units. a. Secured by Bond. A bond or other security acceptable to the Board, in an amount acceptable to the Board of County Commissioners to ensure the required number of affordable housing units are constructed, and b. Secured by Ratios for Permit lssuance. Provisions in the adopted Affordable Housing Agreement which require that building permits for ten (10) free-market houses may only be issued after a building permit for one affordable housing unit has been issued in Comprehensive Plan Study Areas 1 thru 5. c. Another method of securing construction of the affordable housing units acceptable to the Board of County Commissioners. The proposal for compliance with all provisions of the Affordable Housing Guidelines maintained by the Garfield County Housing Authority (GCHA) or other Approved Affordable Housing Entity (AAHE). Section 8-302Pricing of Affordable Housing Units A. Area Median lncome (AMl) Categories Required. The average price for all affordable housing units to be provided shall be dispersed over a range of the Area Median lncome (AMl) levels for low and moderate income families as published annually by HUD for Garfield County^ Applicants shall provide housing in the following three categories, in accordance with the distribution described below. 1. 20 percent of affordable housing units required in Category I - Units priced to 70o/o AMl, sold to 80% AMI households or less; 2. 40 percent of affordable housing units required in Category ll - Units priced to 90% AMl, sold to 100% AMI households or less, 3. 40 percent of affordable housing units required Category lll - Units priced to 110% AMI, sold to 120% AMI households or less.4. Exceptions: lf three or fewer affordable housing units are required by this Article, then the first unit required will be a Category ll unit and the second unit required will be a Category lll unit and the third unit will be a Category I unit. Similarly, if the number of affordable housing units required by this Article results in a fraction when multiplied by 40% or 20o/o (see required distribution of units above), then the Applicant must provide the greatest number of affordable housing units as Category ll units, followed by Category b. 7. lll, and lastly Category l. For example, if 16 affordable units are required, 40o/o of 16 results in 6.4 Category ll units. The Applicant should then provide 7 Category ll units, 6 Category lll units and 3 Category I units. B. lnitial Sales Price of Affordable Housing Units. The initial sales price for each affordable housing unit shall be calculated by the GCHA and the Board of County Commissioners based on the following assumptions: Principle, interest, mortgage insurance, taxes, homeowners insurance and homeowner association dues not to exceed 33% of gross monthly household income based on family size determined by chart below. 80o/o of that amount is estimated for principle and interest and 20% is estimated for mortgage insurance, taxes, homeowners insurance and homeowner association dues. lf actual costs are available, they may be used in place of this 80-20 ratio. A F+nety4ve*(95)-percen{,lea+-te-vaiue, 3O-year mortgage based on a trailing interest rate calculated an average of the previous 18 months interest rates. The GCHA shall calculate the trailing interest rate. The price shall include a landscaped lot and the unit shall be of comparable quality with similar fixtures (e.9. dishwashers, disposals, air conditioning, and energy efficient windows) to market rate units. Number of persons by bedroom configuration used to establish sales price: 1 2. 3. 4. Number of bedrooms, Non-detached structure AMI Household Size for lnitial Sales Price Determination Studio 1 person household 1 2 phh 2 2.5 phh 3 3 phh 4 3.5 phh Number of bedrooms, S i n g le-family detached AMI Household Size for lnitial Sales Price Determination 2 3 person household 3 4 phh 4 5 phh 5 6 phh 4.HOA dues for affordable housing units shall be prorated as compared to HOA dues owed by market rate unit owners. HOA dues for affordable housing units shall be prorated by either average lot size or average unit size in comparison to market rate lots and/or units, whichever results in the lower cost for the affordable units, or by a formula proposed by the applicant and approved by the GCHA and the Board of County Commissioners. lf a prorated HOA is not possible, then the HOA dues for affordable housing units shall be a maximum of 75 percent of the HOA dues owed by market rate unit owners. The applicant will include these calculations in the Affordable Housing Plan. The initial sales price will be calculated by GCHA12O-days from anticipated Certificate of Occupancy. Example lnitial Sales Price Calculation: 3-bedroom single-family unit, 4 person household, 80% AMI = $51,200 in 2007 $51 ,200 / 12 months = $4, 267 gross monthly income 33% of $4,267 = $1,408 80% of $1,408 = $1,126 (principle & interest) 20% of $1,408 = $282 (moftgage insurance, taxes, insurance, HOA) 18 months of trailing interest rate as calculated by GCHA = 6.37% 5. 6. 4 Lean Sa&s orice anoanl = $176,766 6%L+V=4,9€04 W Section 8-40l Determination of Qualification to Purchase Affordable Housing Units. The following considerations shall be applied to qualify an applicant for affordable housing. A. Requirements for Determination of Qualified Applicant. 1. Non Discrimination. Determination of qualification for an affordable housing unit shall be made without regard to race, color, creed, religion, sex, handicap, disability, national origin, familial status or marital status. 2. Resident Qualification. The applicant is a fulltime resident of Garfield County. To qualify as a fulltime resident, the applicant shall live at least nine (9) months a year in the County. 3. Employment Qualification. The applicant is employed full{ime by a Garfield County based employment source, which is a business whose business address is located within Garfield County, whose business employs employees within Garfield County, who work in Garfield County, and whose business taxes are paid in Garfield County. lf an employer is not physically based in Garfield County, an employee must be able to verify that they work in Garfield County a minimum of 1664 hours (min 32 hours/week) per calendar year for individuals, businesses or institutional operations located in Garfield County. To qualify as a full-time employee, the following criteria shall apply. a. A person who works or will work at least 32 hours per week for a Garfield County based employment source. b. A person who has been recruited to work at least 32 hours per week for a Garfield County based employment source. c. The applicant is a retiree and was employed full-time at least 32 hours per week for a Garfield County Based employment source for the four (4) years prior to the date of application. d. The applicant is disabled and was employed fulltime at least 32 hours per week for a Garfield County Based employment source for the two (2) years prior to the date of application. 4. Financial Qualification. The applicant has an annual gross household income equal to or less than the Area Median lncome for the cateoorv unit(s) for sale. Category I units are sold to households earning 80% AMI or less; Cateqorv ll units are sold to households earning 100% AMI or less; and Categorv lll units are so,ld to households earnins'120% AMI or less. ln addition, The applicant has a cumulative net worth, minus qualified retirement assets (as determined by the IRS), not in excess of ${€8SOO $150,000 and satisfies the income criteria set forth in this Article. Section 8-402 Application and Review Procedures for Determination of Qualified Applicant A. Materials for Determination of Qualified Applicant. Application shall be made to the GCHA" The following materials shall be required for proof of residency, income, assets and employment by allfamily members. The GCHA may require additional materials as appropriate. 1. Federal Tax returns for last 2 years. 2. Current income statements in a form approved by the GCHA. 3. Current financial 4. lf current income is less than the previous tax return by twenty (20) percent or greater, the income will be averaged based on the current income and previous tax return to establish an income category. 5. Verification of employment or offer of employment by a Garfield County based employment source. 6. Evidence of legal residency (landlord verification, Colorado Drivers License, phone service, vehicle registration, voter registration). 7. Divorce or Support Decree. 8. A signed release for the GCHA to access the loan application submitted to the Lender. B. Review and Determination of Qualification. The GCHA shall be responsible for application review and determination of qualified applicants. 1. Determination of Qualification or Non-Qualification. The GCHA shall determine whether the family is a qualified applicant for affordable housing units developed in compliance with this Article. 2. Notice of Determination. The GCHA shall provide written notification of a Determination of Qualified Applicant. 3. Determination of Non-Qualification. The GCHA shall provide written notification of a Determination of Non-Qualified Applicant. The writteh notice shall contain the following information. a. A statement of the reason(s) for the decision. b. A statement that the applicant may request a review of the decision by following the grievance procedures described in this Article. C. Priority of Qualified Applicants. The GCHA shall assign all qualified three priorities. Those who qualify for both categories one and two will Category One. I applicants one of fall within Priority A. 1. Priority Category One. Applicants that are employed by a Garfield County based employment source as defined in Article 8-401(A)(3)(a-c). 2. Priority Category Two. Applicants that are fulltime residents of Garfield County. 3. Priority Cateqory Three. Applicants emBlevmenl-pg$oe _eqts-ide-€arfield-Geun+y-and who will be_comg _Lull{im-e residents of Garfield Countv by participation in this program. Section 8-404 Other Requirements Co-Ownership and Co-Signing 1. Any co-ownership interest other than joint tenancy or tenancy in common must be approved by GCHA. 2. Co-signers may be approved for ownership of the affordable housing unit but shall not occupy the unit unless qualified by GCHA. Permissible Financing Any Qualified Applicant who is selected to purchase an Affordable Housing unit is responsible for selection of their preferred financing option(s). However, the GCHA or County may require that financing be obtained from an institutional lender, or a bank, savings and loan association, or any other lender which is licensed to engage in the business of providing purchase money mortgage financing on residential real property. ln addition, any financing used to purchase an Affordable Housing unit must be a conventional or portfolio program that offers fixed or intermediate variable rate terms designed for entry-level buyers. Sub-prime and non-conforming products are not permitted. Financinq more than 100% gf the qale AriAe iE n The GCHA shall be permitted to request financing documents for verification purposes and to withdraw Qualified Applicant status if financing is contrary to these guidelines. B. 7 Fred Jarman From: Mary Borkenhagen [mborkenhagen@postindependent.com]Sent: Thursday, September 09, 2010 9:16 AMTo: Fred JarmanSubject: RE: Public Notice to BOCCAttachments: Fred BOCC t File.pdf; Fred BOCC Receipts.pdf Good Morning Fred- Post for September 16th. There is no charge for the notice to run in the Post, I have attached copies for you to review. Have a great day. Vr.r*t * f:. B.r.ll.r"t"o+er* Legals Clerk Post lndependent. Citizen Telegram . Aspen Times Weekly. Snowmass Village Sun (970)945-8515 ext 16705 Fax: (970)945-85'18 Mailing Address: Legals @ Post lndependent 2014 Grand Ave. . Glenwood Springs, CO 81601-4162 legals@postindependent,com GPI - 1% Business Days Prior to Publication RCT - Friday @ Noon for Thursday Publication DEADLINES nrw - MonJay @ 5:00 for Sunday Publication SVS- Friday @ Noon for Wednesday Publication Please consider the environment before printing this e-mail From: Fred Jarman [mailto:fiarman@garfield-county.com] Sent: Thursday, September 09, 2010 7:53 AM To: Mary Borkenhagen Subject: Public Notice to BOCC Hi Mary, Here's a notice for you. lt needs to run in the Citizen Telegram on or before September 18th. Let me know if you need anything else. Thanks. Fred Your legal notice regarding the BOCC hearing on October 18th has been set in both the Citizen and the EXHIBITf 5557082 O"r"W .11AMTime PUBLIC NOTICE TAKE NATICE that the Director of the Garf ield County Building and Planning Department is proposing certain amendments to the Text of the Garf ield County Unif ied Land Use Resolution of 2008, as amended. The Garf ield County Board of County Commissioners in a noticed public hearing will consider the following amendments to Article Vlll of the Unified Land Use Resolution of 2008. as ame nded: Affordable Housi ng: 1) Amend Section 8-402 to add an additional category (Priority Category Three) of eligibility for applicants working outside the county but who would become Garf ield County residents upon purchase; 2) Amend Section 8-102 to clarify that these regulations apply to residential applicationsincluding rentals, but not commercial applications; 3) Amend Secticn 8-201(AX6) to clarify how'rental housing'proposals will satisfy the intent of the Affordable Housing regulations proposed by an applicant; and 4) Amend Section 8-401tAX4) to increase the Financial Gualification for net worth from $100,000 to $150,000. All persons affected by the proposed amendments are invited to appear and state their views,protests or support. lf you can not appear personally at such hearing, then you are urged to state your views by letter, as lhe Board of County Commissioners will give consideration to the comments in deciding whether to recommend approval of the proposed amendments. The draft amendmonts may be reviewed at the office of the Planning Department located at 108 Btti Street,4th Floor, Garf ield County Plaza Building, Glenwood Springs, Colorado between the hours of 8:30 a.m. and 5:00 p.m., Monday through Friday. This public hearing where the Board of County Commissioner$ shall make a decision regarding these amendments has been scheduled for October 18th, 2010 at 'l:15 PM rryhich will be held in the County Commissioners Meeting Room, Garf ield County Plaza Building 108 8th Street, Glenwood Springs, Colorado. Published in the Citizen Telegram on September 16,2010. [5557082] Ad shown is not actual print size Thu, Sep 09, 2010 5557082 ACCI: 10086e3 PhOne' (e70)e45-8212 E-Mail: Client: Fred Jarman Ad Ticket #5 Name: Address: B:12:39 Garfield County Building 108 8th Street - Ste 401 City: Glenwood SPrings State: CO Zip:81601 Caller: _Receipt Ad Name: Editions: Start: Color: Copyline: 5557082A 8GT/8PI/8PIN/ 09/16110 5557082 rct BOCC 10.18.10 Original ld: 0 Class: 0990 Stop: 09/16/10 lssue 1 ReP: Pl Legal's lAl<t l.loTlCEil\i1l1lrp D r-"jilar,1 ll16 Gal,cld C4ur-.ly 3!'lJilrq atd Pl.rrl!r(: l*pailnerrt i$pro;xi*i! r*rlair ar{erdlrrenis l(1 llri '{yl ua lse {i sl i .il.l Coir nl\j l-!) ri i a<l I ah.\ ,1s4 H.i ibl ,iii1r Il 200t. as rffr+rial. l ir* (:1fl*hl Crlintr Rrard di:alffy Cdrmi$i,ingr$ ifi " n)1ii* plDli| heingn,,l.rf ,*.i*' Ir-,./ir. +!'il.] d,:,i{'. :rr.:i':s..J t.rtr l+ \ .,r {, th; *,ril:rpd l-ri i Ue P..\'ruNr .-, :r: 3. 39 ail rrrjldr Alls(iillii4 F usnql 1l Amsd Setlon &4@ to add sn sdditl@l €tego.y (Pr,qlty c^tegqy ltlre) ot ellgitllity tor applicants wski.g @tside the 6unly t d who wou,d he@me Garrield County resldslsupff pu.chae: 2) Amend Section &ro2 tocr4rily tMt th* reqslntlons apply to r€ld$tlal appllalionsinctudlng renials, but nol comnercial a@ll€llonsi 3) Amqd S&tlon a-201(Al(6) to clarlfy tow'rental housing'proposls will sfllisfy the ,olenl ol the Afiordable H@slng regulrllonsproposi b,y an applarl: and 4) Amsd Setrs &.lOi{AI4} to lrE@s ttE Flnanc,al Ouelilication for nel worth,rofr $lm.ctB t6 S15O.O0O" Tlrii l:ntthc hpe,,n{ *hr.fp lnn P{\afij.y a,({rty C.drr,,,aji,r'r,s si'Jil, rr,rkr n d+.,:sl,y, ,cr.r.I,i! th+$a imendn4fiis Nas b*er,6ch€d!led lor October 18th.20lO at l:15 PM *rtikh lrili lr? trsl'J .fi lL! (oui lv Ci{rrrigsrrrErs [lE!1ilr, i-lj:.rfr.(larl,(iC GrL,ol? Pl:tz-t BJ,lo;,r, 1i6 etd Slrr"i. {:J+r}r.r d SF,r,9s ri*r&t., Puhlislsd ir the C{L'e.i i€&lgla/! c-{} SepterrBei 19.2c13. {i!i7a:621 Ad shown is not actual print size Lines: 52 Depth: 4.35 Columns: 1 Discount: 0.00 Commission. 0.00 Net. 0.00 Tax: o-00 Total 26.31 Payment 0.00