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HomeMy WebLinkAboutagenda.council.worksession.20250428AGENDA CITY COUNCIL WORK SESSION April 28, 2025 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A APCHA Board Representative Update I.B Council Member Discussion / Pre-Retreat Meeting: - Share Topics of Specific Interest for the Community - Prioritization of Upcoming Work Sessions - Working Agreements / Resource Guide Zoom Meeting Instructions Join from PC, Mac, iPad, or Android: https://us06web.zoom.us/j/87398136560?pwd=XeJ8ZOJxweNVXlrtUwKPodd8BGfcKa.1 Passcode: 81611 Join via audio: +1 346 248 7799 US (Houston) Webinar ID: 873 9813 6560 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kdBUbvF9OT APCHA Board Representatives Update Memo for April 28 2025 City Council Work Session.docx Memo.RegulationChanges.2025.04a.docx RegulationsPresentation.pptx 1 1 MEMORANDUM TO:City Council FROM:Diane Foster, Deputy City Manager THROUGH:Pete Strecker, Interim City Manager MEMO DATE:April 21, 2025 MEETING DATE:April 28, 2025 RE:APCHA Board Representative Update _____________________________________________________________________ REQUEST OF COUNCIL: Staff asks City Council members the following: In advance of the April 28 work session, send to the APCHA Board Representatives any questions they would like to discuss at the work session; and then At the April 28 work session, provide the APCHA Board Representatives with feedback on recent proposed policy changes. SUMMARY AND BACKGROUND: Over the past two years, quarterly APCHA Board Update work sessions have been scheduled whose purpose is to: 1. Provide the City Council with a more in-depth update on APCHA issues than would normally be done during the City Council’s “Board Updates” section of the agenda; and 2. For the APCHA Board Representatives to gather feedback from the full City Council on policy questions before the APCHA Board. These work session items are led by the APCHA Board Representatives. APCHA and City staff will be available to answer questions, however the majority of the discussion is intended to be between the City Council members themselves. 2 DISCUSSION: During the April 16 APCHA Board Meeting APCHA staff presented a number of proposed regulation changes. Many of these regulation changes were presented at the request of the APCHA Board, while other changes, such as elimination of some fees and a recommendation to remove retirement assets from a prospective owner or renter’s Asset Calculation, were proposed by staff, based on community feedback or experience. City Council members may want to review the following materials prior to this April 28 work session discussion: Video of the April 16 APCHA Board Meeting: https://www.youtube.com/watch?v=bILOu-0L_ek APCHA Policy Memo from the April 16 APCHA Board Meeting (attached) Slides from the April 16 APCHA Board Meeting (attached) CITY MANAGER COMMENTS: 3 1 MEMORANDUM TO:APCHA Board of Directors FROM: Cindy Christensen and Bethany Spitz DATE OF MEETING:April 16, 2025 SUBJECT:First Reading Regulation Amendments Discussion: The APCHA Regulations have been edited and amended for clarity and transparency. This has been done to both provide ease of use to our customers and to comply with Colorado ADA requirements. The Regulations have been redlined to account for the following changes: 1. Removal of Retirement Assets from Asset Calculation APCHA consistently hears from applicants that we are discouraging people to save for retirement. Removal of retirement accounts towards the asset calculation will encourage people to save for retirement. APCHA would not consider the following accounts based on IRS guidelines as to what qualifies as a retirement account: 401K IRA 403B 457 This section has been amended to the following: Retirement Account Assets: All assets must be reported to APCHA, but retirement assets held in an account specified by the IRS for retirement funds (e.g., 401K, 457, defined benefit, etc.) are not counted in Net Asset calculation by APCHA. Any income distribution, and/or withdrawal from retirement accounts will be included. 2. Tax Returns & W2s Ownership applicants are currently required to provide W2s/1099s after January 31st, and tax returns after April 15th on top of the normal packet that is required. The administrative burden associated with this ask issignificant on both the applicant and Staff. Staff spends a significant amount of time reviewing entire packets multiple times a year. Staff is proposing that a packet is valid for one year. If an applicant would like to update, they can submit an entirely new qualification packet and pay the $50.00 for that review. In lieu of updated documents provided after the IRS deadlines, Staff is proposing to require the most recent paystub if they have won the lottery. 4 2 The section below has been removed: “Each Qualification Application, after approved by APCHA, will be valid for up to one year and will need to be updated with new information. Updated tax information is requested after January 31st and April 15th.” This section has been amended to the following: Each Qualification Application, once approved by APCHA, will be valid for up to one (1) year and must be updated by the Applicant with any new information. APCHA will review Qualification Applications once a year and will only accept a new application prior to the next review if there is a change in the Household or if the Applicant chooses to submit an application, which includes providing documentation and applicable fees. 3. Bid Price Fee Removal Eliminate the $5.00 bid price fee. This would eliminate a barrier to the system. This would reduce APCHA’s money collected by roughly $6,000 a year. This line item has been removed from the fee schedule. 4. Capital Improvement Fee Removal Eliminate the $50.00 bid price fee. This would eliminate a barrier to the system. This line item has been removed from the fee schedule. 5. Rightsizing – Remove Category Requirements Allow swaps regardless of category to continue to encourage movement in the system. This section has been amended to the following: Unit Categories: Applicant may qualify for any category unit. 6. Capital Improvement Amendments Allow 10% allowable cap every ten years; change approved capital improvements to allow more items. This should allow owners who own their units for a long time to continue making improvements while also getting more back for the expenses they put into their units. Edits included in the Regulations. 7. Lottery Chances Staff is proposing adjusting the lottery chances so that every individual with four years or more of work history in Pitkin County has one chance in the lottery. The current number of chances allocated to each bidder increases with length of work history in Pitkin County. This system rewards longer work histories by providing more chances. Lottery winners from the last five years averaged 16 years of work history. When lotteries were modelled with one chance for everyone who has four years or more work history in Pitkin County, the average years’ work experience for winners decreased by five years (1611). 5 3 Additionally, the winners average age decreased by five years (42 37). That new average age also aligns with the national average age for first time homebuyers. Edits included in the Regulations. 8. Qualified Disabled Employee Requirement This section has been edited to align with the qualified retiree. Historically, the length prior to point of disability or retirement has always aligned. Two years ago they became out of alignment. Staff is requesting that a person must have worked continuously for ten years in Pitkin County prior to the determination of disability in order to maintain the APCHA Deed Restricted Unit. This section has been amended to the following: The person must have worked continuously for ten (10) years in Pitkin County prior to the determination of disability and leased or owned a deed-restricted unit for a minimum of four (4) consecutive years immediately preceding the disability. 9. Removal of 6 Month Leave of Absence for Retirees Remove the Leave of Absence (LOA) allowance for retirees that allows them to take 6 months of leave every year. They would be eligible for the same LOA as all owners, which is a maximum of 2 LOAs totaling no more than 24 months in a ten-year period. This section has been amended to the following: An approved Qualified Retiree must continue to reside in the unit at least nine (9) months of the year as their sole and exclusive primary residence and not own any other developed residential property in the OEZ. (See also Part II, Section 2 (B)(2)(d)) 10. Work Requirements for ACI Allow for individuals at least 55 years old to work at least 1000 hours to qualify for Aspen Country Inn. This would hopefully reduce barriers to entry and fill units quicker. We have nine vacant units that individuals have not been able to qualify for due to income levels. This section has been amended to the following: Senior Applicant A Qualified Senior is aged 65 years old or older and working full-time, at least 1,000 hours per calendar year, in Pitkin County and approved by APCHA according to all other Qualification Requirements. This person will have first priority for senior-designated units in the Aspen County Inn property. A Qualified Senior who is aged 55-64 years old and working full-time, at least 1,000 hours per calendar year, in Pitkin County and approved by APCHA according to all other Qualification Requirements will have second priority for senior-designated units in the Aspen County Inn property. 6 4 11. Category Eligibility in Employer Owned Units Staff is requesting that the category requirements for employer owned units be waived for employees of that employer moving forward. The regulations have been amended as follows: Employer Owned Unit – For purposes of these Regulations an employee qualifying for an employer owned unit, who is employed full-time in Pitkin County by that employer as defined by these Regulations, does not have to qualify at the category of the unit. However, the rental rate charged by the employer must be the rental rate required by the category as prescribed in the deed restriction applicable to that unit. This does not apply to units that are rented on a seasonal basis. RECOMMENDATION: Staff is asking the Board to make the following recommendation: “I move to approve at First Reading, Resolution No. 2 (Series of 2025), A Resolution of the Aspen/Pitkin County Housing Authority Adopting Amendments to the Aspen/Pitkin Employee Housing Regulations and schedule Public Hearing on May 7, 2025.” 7 APCHA Regulations Amendments 2025 8             Overview 9 APCHA Regulations in Compliance with ADA Regulations 10 Removal of Retirement Assets from Asset Calculation 11 Qualification Packet Valid for One Year 12 Bid Price – Eliminate Barriers to the System   13 Capital Improvements Price – Eliminate Barriers to the System    14 •Allowing swaps regardless of category. Rightsizing – Removing Category Requirements 15 Capital Improvement Amendments   16 Lottery Chances  17 Qualified Disabled Employee 18 Removal of 6 Month Leave of Absence for Retirees 19 Work Requirements for ACI  20 Category Eligibility in Employer Owned Units 21