HomeMy WebLinkAboutordinance.council.032-12 ORDINANCE No. 32
(Series of 2012)
AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AMENDMNETS TO
CHAPTER 26.540 OF THE CITY OF ASPEN LAND USE CODE—CERTIFICATES OF
AFFORDABLE HOUSING CREDIT.
WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen
Land Use Code, the City Council of the City of Aspen directed the Community Development
Department to explore code amendments related to the Certificates of Affordable Housing
Credits program; and,
WHEREAS,pursuant to Section 26.310, applications to amend the text of Title 26 of the
Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by
City Council, and then final action by City Council after reviewing and considering the
recommendation from the Community Development; and,
WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development
Department conducted Public Outreach, including meetings with owners and potential
developers of Certificates, review with members of the Planning and Zoning Commission, and
review with members of the Aspen/Pitkin County Housing Authority; and,
WHEREAS, during a duly noticed public hearing on November 12, 2012, the City
Council approved a Policy Resolution, Resolution 106, Series of 2012, directing staff to process
code amendments related to the Certificates program; and,
WHEREAS, the Community Development Director has recommended approval of the
proposed amendments to the City of Aspen Land Use Code Chapter 26.540 as described herein;
and,
WHEREAS,the Aspen City Council has reviewed the proposed code amendments ad finds
that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; and,
WHEREAS,the Aspen City Council finds that this Ordinance furthers and is necessary for
the promotion of public health, safety, and welfare; and
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ASPEN,COLORADO THAT:
Section 1: Chapter 26.540 of the City of Aspen Land Use Code, which section defines the
creation, authority, and use of affordable housing credit certificates, shall read as follows:
Chapter 26.540
CERTIFICATES OF AFFORDABLE HOUSING CREDIT
Sections:
Ordinance No.32,Series 2012,Page 1 of 8
26.540.010 Purpose
26.540.020 Terminology
26.540.030 Applicability and Prohibitions
26.540.040 Authority
26.540.050 Application and fees
26.540.060 Procedures for Establishing a Credit
26.540.070 Review criteria for Establishing an Affordable Housing Credit
26.540.080 Procedures for Issuing a Certificate of Affordable Housing Credit
26.540.090 Authority of the Certificate
26.540.100 Transferability of the Certificate
26.540.110 Exchanging Category Designation of an Affordable Housing Certificate
26.540.120 Extinguishment and Re-Issuance of a Certificate
26.540.130 Amendments
26.540.140 Appeals
26.540.010 Purpose
There are two main purposes of this chapter: to encourage the development of affordable
housing; and to establish an option for housing mitigation that immediately offsets the impacts of
development. A Certificate of Affordable Housing Credit is issued to the developer of affordable
housing that is not required for mitigation. Another entity can purchase such a Certificate and use
it to satisfy housing mitigation requirements. Establishing this transferable Certificate creates a
new revenue stream that can make the development of affordable housing more economically
viable. Establishing this transferable Certificate also establishes an option for mitigation that
reflects built and occupied affordable housing, thereby offsetting the impacts of development
before those impacts are felt. This Chapter describes the process for establishing, transferring
and extinguishing a Certificate of Affordable Housing Credit.
(Ord. No. 6-2010, §5)
26.540.020 Terminology
Certificate of Affordable Housing Credit (Credit or Certificate). A transferable document
issued by the City of Aspen acknowledging and documenting the voluntary provision of
affordable housing which is not otherwise required by this Title or by a Development Order
issued by the City of Aspen. The Certificate documents the Category Designations and number
of employees housed by the affordable housing. The Credit is irrevocable and assignable. A
Certificate of Affordable Housing Credit is a bearer instrument.
Establishing a Credit. The process of the City of Aspen acknowledging the voluntary provision
of affordable housing through issuance of a transferable Credit.
Extinguishing a Credit. The process of the City accepting a Credit to satisfy affordable housing
requirements of a development.
Category Designation. A classification system used to reflect different sales price and rental
rate restrictions of affordable housing as set forth in the Aspen/Pitkin County Housing Authority
Guidelines.
Ordinance No.32, Series 2012.Page 2 of 8
26.540.030 Applicability and Prohibitions
This Chapter applies to all Certificates of Affordable Housing Credit created prior to the
adoption of Ordinance No. 32, Series 2012, and henceforth. Credit Certificates may be used
within the city limits of the City of Aspen as provided in this Title. Credit Certificates may be
used in other jurisdictions as may be authorized by that jurisdiction.
This Chapter applies to affordable housing created on a voluntary basis. It does not apply to
affordable housing created to address an obligation of a Development Order or which is
otherwise required by this Title to mitigate the impacts of development. This Chapter does not
apply to affordable housing units created prior to the adoption of Ordinance No. 6, Series of
2010.
A Certificate of Affordable Housing Credit may be sold, assigned, transferred, or conveyed.
Transfer shall be evidenced by an assignment of ownership on the actual certificate document.
Upon transfer, the new owner may request the Community Development Director re-issue the
Credit Certificate acknowledging the new owner.
The market for Certificates of Affordable Housing Credit is unrestricted and the City shall not
prescribe or guarantee the monetary value of a Credit.
The Community Development Director shall establish policies and procedures not inconsistent
with this Chapter for the printing of certificates, their safe-keeping, issuance, re-issuance, record-
keeping, and extinguishments.
Projects seeking approval to develop affordable housing in exchange for Certificates of
Affordable Housing Credit may be subject to additional reviews pursuant to this Title.
26.540.040 Authority
The Planning and Zoning Commission, in accordance with the procedures, standards and
limitations of this Chapter and of Chapter 26.304, Common Development Review Procedures,
shall approve, approve with conditions, or deny an application for the establishment of a
Certificate of Affordable Housing Credit.
The Community Development Director, in accordance with the procedures, standards and
limitations of this Chapter and of Section 26.304, Common Development Review Procedures, is
authorized to issue, re-issue, exchange Category designations, and extinguish a Certificate of
Affordable Housing Credit.
(Ord. No. 6-2010, §5)
26.540.050 Application
All applications shall include the information required under Chapter 26.304, Common
Development Review Procedures. In addition, all applications must also include the following
information.
A. The net livable square footage of each unit.
Ordinance No.32,Series 2012.Page 3 of 8
B. If applicable, the conditions under which reductions from net minimum livable square
footage requirements are requested according to Aspen Pitkin County Housing Authority
Guidelines.
C. Proposed Category Designation of sale or rental restriction for each unit.
D. Proposed employees housed by the affordable housing units in increments of no less than
one-one-hundredth (.01) according to Section 26.470.100.2 —Employees Housed.
(Ord. No. 6-2010, §5)
26.540.060. Procedures for Establishing an Affordable Housing Credit
A development application to establish a certificate of Affordable Housing Credit shall be
reviewed pursuant to the Common Development Review Procedures set forth at Chapter 26.304,
and the following procedures and standards. The City of Aspen Planning and Zoning
Commission shall review a recommendation from the Community Development Director and
shall approve, approve with conditions, or deny an application to establish Certificates of
Affordable Housing Credit. This requires a one-step process as follows:
A. Step One—Review before the Planning and Zoning Commission.
1. Purpose: To determine if the application meets the standards for authorizing
establishment of a Certificate of Affordable Housing Credit
2. Process: The Planning and Zoning Commission shall approve, approve with
conditions, or deny the application after considering the recommendation of the
Community Development Director.
3. Standards of review: 26.540.070
4. Form of decision: Planning and Zoning Commission decision shall be by resolution.
The resolution may include a description or diagram of the affordable housing.
5. Notice requirements: The requirements of 26.212.060 shall apply. No public hearing
notice is required.
26.540.070 Review criteria for Establishing an Affordable Housing Credit
An Affordable Housing Credit may be established by the Planning and Zoning Commission if all
of the following criteria are met. The proposed units do not need to be constructed prior to this
review.
A. The proposed affordable housing unit(s) comply with the review standards of Section
26.470.070.4(a-d).
B. The affordable housing unit(s) are not an obligation of a Development Order and are not
otherwise required by this Title to mitigate the impacts of development.
Ordinance No.32,Series 2012.Page 4 of 8
(Ord. No. 6-2010, §5)
26.540.080 Procedures for Issuing a Certificate of Affordable Housing Credit
Once the Planning and Zoning Commission has approved an Affordable Housing Credit through
adoption of a Resolution, and a Certificate of Occupancy has been issued for the affordable
housing unit(s), the Community Development Director shall issue a Certificate of Affordable
Housing Credit in a form prescribed by the Director.
A. The Certificate of Affordable Housing Credit shall include the following information:
1. A number of the Certificate in chronological order of their issuance.
2. Parcel identification number, legal address and the street address of the affordable
housing.
3. The Category Designation and number of employees housed by the affordable housing
units, according to Section 26.470.100.2 — Employees Housed, in increments of no less
than one-one-hundredths (.01).
B. Issuance of the Certificate. At the time of issuance of a Certificate by the City, a letter
acknowledging receipt and acceptance of the certificate shall be submitted by the owner to the
Community Development Department.
(Ord. No. 6-2010, §5)
26.540.090 Authority of the Certificate
The Certificate may be utilized in whole or in part, including fractions of an FTE no less than .01
FTE, to satisfy affordable housing mitigation requirements in accordance with other applicable
sections of this Title.
(Ord. No. 6-2010, §5)
26.540.100 Transferability of the Certificate
A. A Certificate of Affordable Housing Credit may be sold, assigned, transferred, or conveyed
in whole or in part, in increments no less than one-one-hundredth (.01). Transfer of Title shall be
evidenced by an assignment of ownership on the actual certificate document. Upon transfer, the
new owner may request the City re-issue the Certificate acknowledging the new owner. Re-
issuance shall not require re-review by the Planning and Zoning Commission.
B. The sale, assignment, conveyance or other transfer or change in ownership of a Certificate of
Affordable Housing Credit shall be recorded in the real estate records of the Pitkin County Clerk
and Recorder and must be reported by the grantor to the City of Aspen Community Development
Department within five (5) days of such transfer. The report of such transfer shall disclose the
Certificate number, the grantor, the grantee and the total value of the consideration paid for the
Certificate. Failure to timely or accurately report such transfer shall not render the Credit void.
Ordinance No.32,Series 2012.Page 5 of 8
C. The market for Certificates of Affordable Housing Credit is unrestricted and the City shall
not prescribe or guarantee the monetary value of a Certificate of Affordable Housing Credit.
(Ord. No. 6-2010, §5)
26.540.110 Converting Category Designation of an Affordable Housing Certificate
Certificates of Affordable Housing Credit represent a number of employees housed at a specific
Category designation. Projects seeking extinguishment of a Credit to satisfy affordable housing
mitigation standards of this Title may have a different Category Designation requirement than an
existing Certificate represents. This section sets forth a process to convert a Certificate of a
certain Category Designation for a Certificate of a different Category Designation. This process
amends the number of employees housed to create an equivalency. This Section relies on the
Affordable Housing Dedication Fees (aka Fee-in-Lieu) stated in the Aspen Pitkin County
Housing Authority Guidelines, as are amended from time to time.
To convert a Certificate of a certain Category Designation for a Certificate of a different
Category Designation, the following steps are necessary:
Step 1. Multiply the employees housed stated on the existing Certificate by the per
employee Fee-in-Lieu fee for the Category Designation as stated in the APCHA Guidelines.
Step 2. Divide the resulting number from step 1 by the Fee-in-Lieu fee for the Category
Designation of the proposed Certificate.
The resulting number from step 2 shall be the employees housed for the proposed Certificate.
The Community Development Director shall re-issue a Certificate using this number of
employees housed and specifying the proposed Category Designation.
Example: An owner of a Category 3 Certificate wishes to exchange the Certificate for a
Category 2 Certificate. The existing Certificate states 2.25 employees housed.
Step 1. Employees housed multiplied by Category 3 per-FTE Fee-in-Lieu.
2.25 X $217,567 = $489,525.75
Step 2. Number from step 1 divided by Category 2 per-FTE Fee-in-Lieu.
$489,525.75 / $230,583 = 2.12
In this example, the Community Development Director would re-issue a Certificate stating
2.12 employees housed and a Category 2 designation. Please note that the Aspen/Pitkin
County Housing Authority Fee-in-Lieu rates change from time to time. The rates used for
this calculation shall be those in effect upon request for conversion.
The conversion of a Certificate's Category Designation shall be approved by the Community
Development Director and shall not require additional review by the Planning and Zoning
Commission.
Ordinance No.32, Series 2012.Page 6 of 8
26.540.120 Extinguishment and Re-Issuance of a Certificate
A. Unless otherwise stated in a Development Order, extinguishing all or part of a Certificate of
Affordable Housing Credit shall occur prior to issuance of a Building Permit for the development
for which the housing mitigation is required. Extinguishment shall be evidenced by an
assignment of ownership on the actual certificate document to "the City of Aspen for
extinguishment."
(Ord. No. 6-2010, §5)
B. Certificates of Affordable Housing Credit may be extinguished to satisfy affordable housing
requirements of this Title if the Community Development Director finds the following standards
met:
1. All other necessary approvals for the proposed development, as required by this Title,
have been obtained and the applicant has submitted the necessary information, pursuant
to Section 26.304.075, Building Permit.
2. The applicant has submitted authentic Certificates of Affordable Housing Credit in the
number and Category Designation required for the development.
3. The Certificate owner has assigned ownership of the Certificates to "the City of Aspen
for extinguishment."
C. When all of a Certificate is extinguished, the city shall void the Certificate. When part of a
Certificate is extinguished, the city shall issue a Certificate citing the remaining FTEs in
increments of no less than .01 of employees housed.
26.540.130 Amendments
Amendments to an affordable housing project that occur during additional review(s) required by
this Title or other amendments which do not change the essential nature of the project may be
approved by the Community Development Director. Revisions to the number or Category
Designation of the affordable housing units and Credit Certificates to be issued shall be reflected
in a revised development order.
Revisions to the number or Category Designation of the affordable housing units and Credit
Certificates to be issued, proposed after all approvals are granted, shall require re-review
pursuant to the standards and procedures of this Chapter.
26.540.140 Appeals
An applicant aggrieved by a determination made by the Community Development Director or
Planning and Zoning Commission, pursuant to this Chapter, may appeal the decision to the City
Council, pursuant to the procedures and standards of Chapter 26.316, Appeals.
(Ord. No. 6-2010, §5)
Ordinance No.32,Series 2012.Page 7 of 8
Section 2: Effect Upon Existing Litigation.
This ordinance shall not affect any existing litigation and shall not operate as an abatement of any
action or proceeding now pending under or by virtue of the ordinances repealed or amended as
herein provided, and the same shall be conducted and concluded under such prior ordinances.
Section 3: Severability.
If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason
held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and shall not affect the validity of the remaining
portions thereof.
Section 4: Effective Date.
In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall
become effective thirty(30)days following final passage.
Section 5: Notice of Public Hearing.
A public hearing on this ordinance shall be held on the 10th day of December, 2012, at a meeting of
the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall,
130 S. Galena St., Aspen, Colorado, a minimum of fifteen days prior to which hearing a public
notice of the same shall be published in a newspaper of general circulation within the City of Aspen.
FIRST READING OF THIS ORDINANCE WAS INTRODUCED, READ AND ORDERED
PUBLISHED as provided by law, by the City Council of the City of Aspen on the 26th day of
November,2012.
ATTEST:
/Kathryn S. K` ch, City Clerk Michael C. Ireland,Mayor
"1
FINALLY, adopted, passed and approved this day of w ,2012.
ATTEST:
i
Kathryn S. !�16, City Clerk Michael C. Ireland,Mayor
Approved as to form:
ames R True, City Attorney
Ordinance No.32,Series 2012.Page 8 of 8
Ad Name: 8642007A LEGAL NOTICE
ORDINANCE#32,2012 PUBLIC HEARING
Ordinance#32,Series of 2012,was adopted on
Customer: Aspen (LEGALS) City of first reading at the City Council meeting November
Your account number: 1013028 a c This ordinance,if adopted,will approve
a code de amendment to provide a mechanism for
affordable housing certificates to be converted
between categories. The public hearing on this
ordinance is scheduled for December 10,2012 at 5
PM,City hall,130 South Galena.
PROOF OF PUBLICATION To see the entire text,go to the city's legal notice
website
httr)://www.aspen itkin com/Departments/Clerk/
Leaal-Noticesl
If you would like a copy FAXed,mailed or e-mailed
to you,call the city clerk's office,429.2686.
Published in the Aspen Times Weekly on Novem-
ber 29,2012- [8642007]
STATE OF COLORADO,
COUNTY OF PITKIN
I,Jim Morgan, do solemnly swear that I am General
Manager of the ASPEN TIMES WEEKLY, that
the same weekly newspaper printed, in whole or in
part and published in the County of Pitkin, State of
Colorado, and has a general circulation therein;that
said newspaper has been published continuously and
uninterruptedly in said County of Pitkin for a period
of more than fifty-two consecutive weeks next prior
to the first publication of the annexed legal notice or
advertisement.
The Aspen Times is an accepted legal advertising
medium, only for jurisdictions operating under
Colorado's Home Rule provision.
That the annexed legal notice or advertisement was
published in the regular and entire issue of every
number of said daily newspaper for the period of 1
consecutive insertions;and that the first publication
of said notice was in the issue of said newspaper
dated 11/29/2012 and that the last publication of
said notice was in the issue of said newspaper dated
11/29/2012.
In witness whereof,I have here unto set my hand
this 12/06/2012.
Jim Morgan,General Manager
Subscribed and sworn to before me,a notary public
in and for the County of Garfield,State of Colorado
this 12/06/2012.Mary E.Borkenhagen,Notary Public
Commission expires:September 12,2015
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