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HomeMy WebLinkAboutordinance.council.011-2021 ORDINANCE NO. 11 (SERIES OF 2021) AN ORDINANCE OF THE ASPEN CITY COUNCIL AMENDING CITY OF ASPEN LAND USE CODE CHAPTER 26.540; TO ADOPT CHANGES TO THE CERTIFICATES OF AFFORDABLE HOUSING CREDITS PROGRAM. 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 craft code amendments to coordinate the Aspen Area Community Plan (AACP), the Land Use Code and City Council affordable housing goals; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the City of Aspen conducted public outreach through various work sessions with Council, and discussions with members of the development community; and, WHEREAS, Community Development staff in discussions with the development community and in analysis of observed challenges in the development of affordable housing has proposed improvements to the Certificates of Affordable Housing Credits program; and, WHEREAS, on October 13, 2020, City Council passed Policy Resolution#079, Series of 2020, approving initiation of code amendments; and, WHEREAS, Community Development staff provided outreach opportunities and held discussion with the Aspen Pitkin County Housing Authority and the Planning and Zoning Commission and received formal recommendation from Planning and Zoning Commission in Resolution# 03, Series of 2021; and, WHEREAS,at a regular meeting on May 11,2021,City Council by a four—zero (4-0)vote, approved Ordinance#011, Series of 2021,approving a Code Amendment to 26.540; and, WHEREAS,the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety,and welfare. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN,COLORADO THAT: Section 1: Section 26.540.030 shall be rescinded and adopted as follows: 26.540.030 Applicability and prohibitions A. This Chapter applies to all Certificates of Affordable Housing Credit. Housing credits may only be established from affordable housing created on a voluntary basis and designated at any Category with established cash-in-lieu rates in the Housing Guidelines, including the deed- restriction of unrestricted units (buy-down units). Ordinance No.11,Series of 2021 AH Credits Pagel of 6 1. City of Aspen Housing Credits may be used within the city limits of the City of Aspen as provided in this Title and may be used in other jurisdictions as may be authorized by that jurisdiction. City of Aspen Housing Credits may only be established from development within the City of Aspen boundaries. 2. Affordable Housing projects may establish City of Aspen Housing Credits in conjunction with other state and federal affordable housing incentive programs, such as,but not limited to the Low-Income Housing Tax Credit(LIHTC). 3. 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. 4. The market for Certificates of Affordable Housing Credit is unrestricted and the City shall not prescribe or guarantee the monetary value of a Credit. 5. The Community Development Director shall establish policies and procedures for the printing of certificates, their safe-keeping, issuance, re-issuance, record-keeping, and extinguishments. 6. 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. 7. Fractional units are eligible for the establishment of Housing Credits if deed restricted as for-sale or are subject to an agreement with the City requiring the unit to be permanently deed restricted. For example,if a development project is required to mitigate 2.4 FTEs and is proposing on-site units that house 3 FTEs,the additional 0.6 FTEs proposed that are not required for mitigation are eligible for establishment as a Certificate of Affordable Housing Credit. 8. Any affordable housing units created for the establishment of Housing Credits, including fractions thereof, which are part of a mixed-use building shall be deed restrict as for-sale. Units that are part of a 100% affordable housing project may be for-rent. B. This Chapter does not apply to the following: 1. 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. 2. Affordable housing units created prior to the adoption of Ordinance No. 6, Series of 2010. 3. Affordable housing units developed by, or in association with: the City of Aspen, Pitkin County, the Aspen/Pitkin County Housing Authority, or similar government or non- governmental organization (NGO) that receives public funds for the purpose of building affordable housing. Ordinance No.11, Series of 2021 AH Credits Page 2 of 6 r 4. Dormitory units. 5. The creation of voluntary affordable housing units deed restricted at a Category which a cash-in-lieu rate has not been established in the Housing Guidelines. Section 2: Section 26.540.050 shall be rescinded and adopted as follows: 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. 1. The net livable square footage of each unit and proposed number of bedrooms. 2. If applicable,the conditions under which reductions from net minimum livable square footage requirements are requested according to Aspen Pitkin County Housing Authority Guidelines and a copy of the recommendation from APCHA related to the units. 3. Proposed Category designation for each unit. 4. Proposed Category Designation of sale or rental restriction for each unit. This should include and conditions that APCHA will require related to either the sale and/or rental of the units. 5. Proposed employees housed by the affordable housing units in increments of no less than one- one-hundredth (.01) according to Section 26.470.050.D (Table 4, FTEs Housed). 6.. For projects approved by the Historic Preservation Commission that include affordable housing units within a designated structure,provide a calculation for the Credits generated within the designated structure that includes a multiplier of 1.2 x the employees housed per paragraph 5, immediately above. This multiplier recognizes the additional costs related to preservation efforts of designated structures. The multiplier does not apply to units/Credits established in non- historic structures in the same project. 7. For projects that are converting (without demolition) existing free-market (single family, duplex, or multi-family) units into Category, deed-restricted units for the purpose of establishing affordable housing credits, the application shall additionally contain the following: a. Recommendation from APCHA that identifies the development standards for a project or unit being accepted into a deed restriction by APCHA. The application should specifically reference APCHA's evaluation of the property and any necessary improvements to the property necessary to meet APCHA requirements. Eventual issuance of credits will be conditioned on fulfilling the identified development requirements. b. A precise evaluation, conducted by an architect or other qualified party that identifies the existing net livable area of the unit is required. If a unit is below APCHA's minimum net livable area based on the number of bedrooms (as established by APHCA's Ordinance No.11, Series of 2021 AH Credits Page 3 of 6 Guidelines), a 400 square feet per FTE calculation will be utilized instead of the bedroom count, in determining the number of Credits that will be generated by the project. Section 3: Section 26.540.070 shall be rescinded and adopted as follows: 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 26.470.080.D.7.a-g 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. Section 4: Section 26.540.080 shall be rescinded and adopted as follows: 26.540.080 Procedure for issuing a certificate of affordable housing credit A. The Planning and Zoning Resolution in approving the establishment of Affordable Housing Credits for a project shall identify one of two possible paths for the eventual issuance of established credits: 1. Upon completion of the project and the presentation of a Certificate of Occupancy and APCHA deed restriction for the completed affordable units, 100% of the approved Certificates shall be issued in a form prescribed by the Community Development Director; or, 2. Upon presentation of a performance bond, letter of credit, or other financial instrument acceptable to the City Attorney in guaranteeing the eventual completion of the project, a project developer will receive phased issuance of Affordable Housing Credits per the following schedule: 0 30%of approved Credits at completion of foundation inspection • 30% of approved Credits at completion of framing/roofing inspection • 40% of approved Credits at presentation of Certificate of Occupancy and the APCHA deed restriction 3. The bond, letter of credit, or other financial instrument shall be presented and reviewed with the submission of the building permit and will be for an amount of 100 %of the total project valuation. 4. Approval of phased issuance of Affordable Housing Credits must be included in the Planning and Zoning Commission Resolution.No phased issuance shall occur until the City Attorney has reviewed and approved the provided financial instrument. Ordinance No.11,Series of 2021 AH Credits Page 4 of 6 5. If phased issuance is approved by the Planning and Zoning Commission Resolution and the project developer determines ultimately not to pursue the phased issuance, Credits will be issued per Paragraph 1 at the time of the completed project. B. Upon successful completion of the requirements of Paragraph 1 or 2 above, the issued 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. The Category Designation and number of employees housed by the affordable housing units, according to Section 26.470.050.D —Employees Housed; in increments of no less than one-one- hundredths (.01). Section 5• Any scrivener's errors contained in the code amendments herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 6• 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 resolutions or ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 7• If any section, subsection,sentence,clause,phrase,or portion of this resolution 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 8• A public hearing on this ordinance was held on the 11t'day of May, 2021, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, 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. Ordinance No.11,Series of 2021 AH Credits Page 5 of 6 INTRODUCED,READ,AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 27th day of April, 2021. ATTEST: _ c < Nicole Henning, City Clerk Torre, Mayor FINALLY,adopted,passed and approved this 1 lth day of May,2021. Torre,Mayor ATTEST: APPROVED AS TO FORM: Nicole Henning, City Clerk �ames R. True, City Attorney Ordinance No.11,Series of 2021 AH Credits Page 6 of 6