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HomeMy WebLinkAboutordinance.council.018-89 ORDIN]tNCE NO. / ~ -- (series of 1989) AN ORDINANCE ADOPTING THE 1989 AFFORDABLE RESIDENT HOUSING GUIDELINES AND AS RECOMMENDED BY THE ASPEN/PITKIN COUNTY HOUSING AUTHORITY WHEREAS, pursuant to the Municipal code of the city of Aspen, as amended, the Housing Income, Eligibility Guidelines, and Housing Price Guidelines are to be established by the city council; and WHEREAS, pursuant to prior resolutions and ordinances of the city, the city Council established Employee Housing Income- Eligibility Guidelines and Housing Price Guidelines for prior years; and WHEREAS, the 1989 Affordable Resident Housing Guidelines (.Guidelines") recommended by the Board of Commissioners of the Housing Authority of the City of Aspen and Pitkin County, a copy of which is annexed hereto and incorporated herein, has been submitted to city Council, which Guidelines sets for the 1989 Housing Authority qualification guidelines for iow, moderate, and middle income ownership, rental housing projects, lodge and commercial development, and development of affordable residential housing units; and WHEREAS, the city Council desires to adopt said Guidelines, and by virtue of the enactment of this ordinance to supersede and amend all prior resolutions and ordinances of the city pertaining to housing guidelines, but only the extent inconsistent with the provisions of this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 That the city Council of the city of Aspen hereby adopts the 1989 Affordable Resident Housing Guidelines, as set forth by the Board of Commissioners of the Housing Authority of the city of Aspen and Pitkin County, a copy of which is annexed hereto and incorporated herein. Section 2 That the regulations and guidelines set forth and adopted herein shall supersede, to the extent inconsistent with the provisions of this Ordinance, all prior resolutions and ordinances of the city of Aspen; provided further, that the provisions of Resolutions and Ordinances pertaining to employee housing guidelines shall remain in full force and effect to the extent not inconsistent with the regulations and guidelines adopted herein. Section 3 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 Nothing in this ordinance shall be construed to affect any right, duty or liability under any ordinances in effect prior to the effective date of this ordinance, and the same shall be continued and concluded under such prior ordinances. Section 5 A public hearing on the ordinance shall be held on the J~ day of /~l~/ .... , 1989, in the city Council Chambers, Aspen City Hal~,/A~pe6, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by th)% city Council of the city of Aspen on the /~day of ~/~/~ j~_~ , 1989. ~/~~~r William L. stfrling, Ma~o' ATTEST: ~athryn K~fh, city Clerk FINALLY adopted, passed, and approv~ this ~ day of William L. s~irling, yor ATTEST: Kathryn ~.' Koch, City Clerk CC. GL1 HOUSING AUTHORITY 1989 AFFORDABLE HOUSING GUIDELINES PITKIN COUNTY Prepared By: ASPEN/PITKIN COUNTY HOUSING AUTHORITY THE HOUSING AUTHORITY OF THE CITY OF ASPEN ]~ND PITKIN COUNTY 1989 AFFORDABLE RESIDENT HOUSING GUIDELINES (formerly known as EMPLOYEE HOUSING GUIDELINES) TABLE OF CONTENTS PAGE 1 INTRODUCTION ................................................ 2 PART I. EMPLOYEE GENERATION ............................... 2 city ........................................ 4 County ..................................... 6 PART II. HOUSING CRITERIA ................................. 6 A. Occupancy Standards .................... 6 B. Square Foot Ranges ........................... C. Square Foot Sales Price - Sale Units ......... 7 D. Square Foot Rental Price - Rental Units ...... 9 E. Requirements for Dormitory/Lodge ............. 10 11 F. Payment-In-Lieu .............................. G. Affordable Resident Lots ..................... 13 14 H. PMH Lots .................................. 14 I. Low Impact Subdivisions ..................... j. Deed Restricting Existing Units ...... 14 15 K. Special Review ........................... 15 L. Accessory Dwelling Unit ..................... 16 M. Caretaker Dwelling Unit ..................... PART III. RENTAL/SALE REQUIREMENTS FOR RESIDENTS ........... 17 17 A. Profile Requirements .................... 17 B. Income Range .............................. 18 C. Asset Limit ................................ 18 D. Verification ................................. E. Priority For Rental of Affordable Resident 19 Units ......................... %''i ..... F. Priority for Sale of Affordable Resioen= Units, Single-Family Homes, Lots ....... 19 22 G. Transfer Fee ................................ 23 GLOSSARY .................................................... i LIST OF TABLES Table I - city Employee Generation Units ........... 2 Table II County Employee Generation Units ......... 4 - 6 Table III - Occupancy Standards ...................... 7 Table IV - Net Livable Square Foot Ranges ............ Table V - Maximum Sales Price Per Square Foot for Newly Restricted and Newly Constructed Affordable Housing Units ................ 8 Table VI - Rental Price Per Sq. Foot ................. 9 Table VII Payment-in-lieu Schedule .................. 12 - 17 Table VIII - Income Maximums .......................... INTRODUCTION "TO ASSURE THE EXISTENCE OF A SUPPLY OF DESIRABLE AND AFFORDABLE HOUSING FOR EMPLOYEES, SENIOR CITIZENS, THE HANDICAPPED, AND OTHER SEGMENTS OF THE ROARING FORK VALLEY WHICH ARE NECESSARY FOR A BALANCED COMMUNITY" - Housing Authority's Goal - Each year the Housing Authority establishes guidelines for the development, admission and occupancy for the resident housing program. The guidelines support the Housing Authority's Goal and are not intended to supersede the appropriate city or County Land Use Code and the Uniform Building Code. The 1989 Affordable Housing Guidelines responds to housing needs in Aspen and Pitkin County as identified by the 1987 Housing Needs Assessment and the 1989 Housing Master Plan. The guidelines are used to review land use applications, qualify applicants for admission and occupancy, and develop and prioritize housing programs. In the event that the 1989 Affordable Resident Housing Guidelines conflict with the Aspen city Code or Pitkin County Land Use Code, the applicable code, either Aspen city Code or Pitkin County Land Use code, is intended to supercede these Guidelines. P~RT I RESIDENT GENERATION This section provides developers with criteria to calculate resident generation and is not intended to supersede the city or County Land Use Codes or the Uniform Building Code. TABLE I CITY C~LCULATIONS OF EMPLOYEE GENERATION UNITS zoning Category/Land Use Full-Time Equivalent Employees Generated category Commercial Core (CC) and 3.5 to 5.25 employees/1000 s.f. Commercial (C-l) (net leasable), based on review of the city Council~s Housing designee Neighborhood Commercial (NC) and 2.3 employees/1000 s.f. (net Service/Commercial/Industrial leasable) (sic/Il) 3.0 employees/1000 s.f. (net office (O) leasable) Commercial Lodge (CL) and Other 3.5 employees/1000 s.f. (net leasable) Tourist Accommodation/Lodge 0.2 to 2.0 employees/room, based on review of the city Council~s Housing designee NOTES AND CONDITIONS: a. The above Employee Generation calculation figures are intended to be consistent with Section 8-109, Affordable Housing, of the city Code. b. Employee generation for commercial uses shall be based on net leasable square footage and shall be verified by review of the Housing Authority. c. For purposes of calculating employee generation, a full-time employee equivalent (FTE) is a person who is paid annually on a basis of 2080 hours per year (173.33 hrs./month x's 12 months). d. Affordable housing may be provided on the same site or on an alternate site as the proposed development, provided that credit shall only be given for dwelling units located within the city of Aspen or the Aspen Metro Area, as this area is 2 currently defined by the Aspen/Pitkin County Growth Management Policy Plan. Applicants proposing to provide resident housing on an alternative site shall be required to demonstrate its feasibility through demonstrating that they have an interest in the property or dwelling units, and by specifying the size and type of units to be provided and any physical upgrades to be accomplished. e. The Aspen city Code Growth Management Section 8-106G(4) (d) refers to the Provision of Affordable Housing. This section allows for the advice of the city Council's housing designee to be used in the determination of the number of employees the proposed development is expected to generate. The standards for employee generation representing the various levels of service which reflect the types of lodge operations in existence or proposed for the city of Aspen. This section allows that the applicant be given the opportunity to present to the housing designee information demonstrating that an alternative standard should be employed. The alternative standard may be employed upon the recommendation of the designee. f. Should a proposed development cause the displacement of housing units which are currently deed restricted to resident housing guidelines, then the applicant shall only receive credit for housing for the net number of employees to be housed by the proposed development, reflecting the number to be housed in the new units minus those housed in the existing units, rather than for housing the gross number of employees housed in the new units. g. The deed restrictions created to obtain credit for deed restricted housing may be amended by agreement between the property owner and the city Council upon the review of the Housing Authority. 3 TABLE II COUNTY CALCULATIONS OF EMPLOYEE GENERATION UNITS The following formula is used for calculation of number of full- time equivalent employees generated by a project. Square Footage of Building x full-time equivalent employees per 1000 s.f. The following Table sets forth the Full-Time Equivalent Employee Generation figure to be used. Full-Time Equivalent Employee Land Use Category Generation Residential Per County Code Tourist Accommodation/ 0.2 - 0.4 employees per room Lodge Commercial Professional/Office 3.9 employees/1000 s.f. Retail/Wholesale/Services 3.5 employees/1000 s.f. Warehouse 0.4 employees/1000 s.f. Manufacture 1.5 - 4.0 employees/1000 s.f. Restaurant/Bar 5.0 - 10.0 employees/1000 s.f. Utilities/Quasi Govern- 1.5 - 2.5 employees/1000 s.f. mental Based on review of Housing Other Authority CONDITIONS: a. Employee generation for commercial uses shall be based on net leasable square footage and shall be verified by review of the Housing Authority. b. For purposes of calculating employee generation, a full-time employee equivalent (FTE) is a person who is paid annually on a basis of 2080 hours per year (173.33 hrs./month x's 12 months). c. Should a proposed development cause the displacement of housing units which are currently deed restricted to resident 4 housing guidelines, then the applicant shall only receive credit for housing for the net number of employees to be housed by the proposed development, reflecting the number to be housed in the new units minus those housed in the existing units, rather than for housing the gross number of employees housed in the new units. d. The deed restrictions created to obtain credit for deed restricted housing may be amended by agreement between the property owner and the Board of County Commissioners upon the review of the Housing Authority. 5 PART II HOUSING CRITERIA Developers shall use these criteria for occupancy standards, square foot ranges, square foot prices for sale or rental units, requirements for dormitories, payment-in-lieu, resident lots, and deed restricting existing units. A. OCCUPANCY STANDARDS Table I sets forth the standard for the number of bedrooms to accommodate a family of a given size. These standards shall be used when calculating resident unit requirements in the construction of sale or rental units. TABLE III OCCUPANCY STANDARD April 1989 to April 1990 UNIT TYPE OCCUPANCY 1.00 employee DORMITORY/LODGE 1.25 employees STUDIO 1.75 employees ONE BEDROOM 2.25 employees TWO BEDROOMS THREE OR MORE BEDROOMS 3.00 employees B. SQUARE FOOT RANGES Table III sets forth the allowable net livable square foot ranges to be used in the calculation of rent and sale prices of employee units. Net livable square footage is defined in the Glossary. Developers may choose to construct larger units, however, allowable rent and sale prices shall be calculated according to the following: 6 TABLE IV NET LIVABLE SQUARE FOOT RANGE April 1989 to April 1990 unit Type LOW MODERATE MIDDLE Dorm/lodge 125-300 - Studio 300-500 400-500 600-700 1 Bedroom 500-600 600-700 700-800 2 Bedroom 650-850 700-1,000 900-1,100 3 Bedroom 850-1,000 1,000-1,100 1,100-1,300 single-Family 900-1,200 1,200-1,400 1,300-1,500 Detached CONDITIONS: 1. This calculation will be required upon all applications and must be verified. The "net livable square footage" is defined in the Glossary. 2. Upon demonstration by an applicant that it can and will provide resident housing to the extent to which the demand for low and moderately priced housing would be increased by the proposed development, the minimum square foot stipulation may be waived with approval after special review of the Housing Authority. 3. Should an applicant propose a unit which is larger than provided for by the guideline, then its rental or sales price shall not be greater than that allowable had the housing unit complied with the applicable size limitations. C. SQUARE FOOT SALES PRICE - SALE UNITS Allowable sales price per square foot for the sale units is described in Table III. 7 TABLE V MAXIMUM SALES PRICE PER SQUARE FOOT FOR NEWLY RESTRICTED ~ND NEWLY CONSTRUCTED AFFORDABLE RESIDENT UNITS* /~ND PRICE/LOT April 1989 to April 1990 PRICE/S.F. Including Lot TYPE if applicable PRICE/LOT Low $ 70.00 $ 15,000 Moderate $ 97.00 $ 20,000 Middle $124.00 $ 25,000 , All resident housing units constructed and operated as 100% resident housing, including seasonal housing, without any associated free market or commercial development, may be exempt from the resident price guidelines, if approved by the Aspen city Council or the Board of County Commissioners of Pitkin County, and shall be controlled by separate agreement with the Housing Authority. CONDITIONS: 1. Middle income sale units will not be considered for GMP points. 2. Square foot price is calculated on net livable square footage, as defined in the glossary. This calculation will be required on all applications and must be verified by the Housing Authority. 3. Sale prices will be rounded to nearest $100. The average income in each category for each size unit will be used to determine affordability. 4. Sale units will be offered through the Housing Authority to all qualified persons under procedures established by the Housing Authority of the city of Aspen and Pitkin County. 5. In the event resident units associated with a lodge, agricultural operation, commercial, or residential development are employer owned, persons employed directly by the owners shall be given first priority to purchase. In the event there are no persons directly employed by the owner who qualify or are available, the unit shall then be offered to other qualified residents according to limitations contained in these guidelines. Commercial or lodge developments shall not be restricted to housing 8 employees of their own business, but shall also be permitted to house qualified residents of the community at large. It is anticipated that proposed resident units will be required to be restricted to the low income price and occupancy guidelines. However, at the time the applicant requests growth management exemption pursuant to the appropriate city or County Code, the Housing Authority shall review and consider the current community need for housing, evaluate the affordability of the proposed units to residents, and establish the appropriate price and occupancy category to which the units should be restricted. 6. All units must be in a marketable condition, fully constructed, inspected and approved by the Housing Authority. D. SQUARE FOOT RENTAL PRICE - RENTAL UNITS The allowable monthly rental price per net livable square foot is described in the following table: TABLE VI RENTAL PRICE PER SQUARE FOOT April 1989 to April 1990 TYPE PRICE/S.F. LOW $ .63 MODERATE $ .89 MIDDLE $1.23 Allowable increase on existing units: 4.7% CONDITIONS: 1. Square foot allowance is calculated on net livable square footage, as defined in the Glossary. 2. Rental rates shall not be increased for furnished units. 3. Middle income rental units will not be considered for GMP points. 4. Rental rates shall include utilities metered in common, condominium dues, management costs and taxes. 5. Occupants of deed restricted rental units must obtain verification and qualification prior to occupancy from the Housing Authority. Occupant must provide owner/landlord with proof of verification and 9 qualification by the Housing Authority prior to occupancy. 6. In the event resident units associated with a lodge, commercial, agricultural operation, or residential development are employer owned, persons employed directly by the owners shall be given first priority. In the event there are no persons directly employed by the owner who qualify or are available, the unit shall then be offered to other qualified residents according to limitations contained in these guidelines. Commercial or lodge developments shall not be restricted to housing employees of their own business, but shall also be permitted to house qualified residents of the community at large. It is anticipated that the proposed housing units will be required to be restricted to the low income price and occupancy guidelines. However, at the time the applicant requests growth management exemption pursuant to the appropriate city or County Code, the Housing Authority shall review and consider the current community need for housing, evaluate the affordability of the proposed units to residents and establish the appropriate price and occupancy category to which the units should be restricted. 7. All rental units must be fully constructed, inspected and approved by the Housing Authority. E. REQUIREMENTS FOR DORMITORY/LODGE By review and acceptance of the Housing Authority an applicant may satisfy the resident housing requirements by the construction of dormitory/lodge units. The dormitory/lodge shall be consistent with the following standards and shall meet the appropriate Housing Authority standards and the appropriate city or County Land Use Code and the Uniform Building Code. CONDITIONS: Dormitory/Lodge units shall be required to meet the following minimum standards: 1. There shall be between 125 and 300 average net livable square feet of living area per person, including sleeping, bathroom, cooking, and lounge used in common. Net livable square footage shall not include interior or exterior hallways, parking, patios, decks, laundry rooms, mechanical areas, and storage. Dormitory/lodge rents shall be calculated on the net livable square footage as described above. 10 2. Rental rates shall include all utilities metered in common, management costs and taxes. 3. One bathroom shared by no more than four persons, containing at least one water closet, one lavatory, one bathtub with a shower, and a total area of at least 60 square feet. 4. A kitchen facility containing a sink, stove and refri- gerator and shared by no more than four persons and a total area of at least 60 square feet or access to a common kitchen. 5. Use of 20 square feet per person of enclosed storage area located within or adjacent to the unit. 6. All units shall comply with UBC standards. 7. An existing dormitory/lodge resident unit may be approved if smaller than the 125 to 300 square feet, if it can be demonstrated by the developer that the unit warrants special consideration, i.e. other amenities not usually associated with dormitory. 8. A manager, assistant manager, or lodge owner, who is in the moderate income range may occupy the unit, however, rent will be calculated based on the low income guidelines. Lodge owners must work full-time for the lodge operation. F. PAYMENT IN LIEU An applicant for a development may satisfy the resident housing requirement of city of Aspen Code Section 24-11.10(i) or Pitkin County Land Use Code, Section 5-300, (as applicable) through a payment-in-lieu fee as stated below: Acceptance of the payment-in-lieu option shall be at the sole discretion of the city Council or County Commissioners based on recommendation by the Housing Authority. The Housing Authority will evaluate an applicant's payment-in-lieu proposal based on the following criteria: 1. Whether the Housing Master plan is furthered by the payment. 2. Whether the applicant's site is appropriate for resident housing. 3. Whether the applicant's site is well suited for the development of resident housing, taking into account the availability of services, proximity to employment oppor- 11 tunities, and whether the site contains environmental constraints to development. 4. Whether the method of payment proposed will result in resident housing being produced prior to or at the time the impacts of the development will be experienced by the community. 5. Whether the development itself requires the provision of resident housing on site to meet its service needs. 6. When the application shall be for residential development allotments, a minimum of twenty-five (25) percent of the total number of bedrooms built on the site on which allotments are requested shall be affordable resident housing, unless, pursuant to the above standards, it shall be determined that this amount of affordable resident housing cannot or should not be built on-site. For the purposes of this section, a studio shall be counted as a three-quarter (3/4) bedroom. 7. If the Council shall not approve the method by which the applicant proposes to provide affordable resident housing, the applicant shall be provided with direction as to which other method or methods would be preferable. TABLE VII pAYMENT-IN-LIEU SCHEDULE April 1989 to April 1990 EMPLOYEE UNIT TYPE PER UNIT LOW MODERATE MIDDLE DORMITORY 1.00 $ 30,000 $ -0- $ -0- STUDIO 1.25 37,500 25,000 18,750 ONE BEDROOM 1.75 52,500 35,000 26,250 TWO BEDROOMS 2.25 67,500 45,000 33,750 THREE OR MORE 3.00 90,000 60,000 45,000 BEDROOMS PAYMENT PER EMPLOYEE $ 30,000 $ 20,000 $ 15,000 CONDITIONS: a. All payment-in-lieu fees shall be dedicated for the subsidy of the resident housing program, including, but not limited to, the acquisition of land and buildings, subsidizing of planning, site development, construction, and financing of units, upgrading existing housing, and other housing uses approved by the city of Aspen or Pitkin County. 12 b. The payment-in-lieu fee shall not be commingled with general operating funds of the city of Aspen, Pitkin County, or the Aspen/Pitkin County Housing Authority, and shall be held in trust. c. Fees shall be paid prior to issuance of building permit and will be held in trust by the Housing Authority until such time that the Housing Authority deems it necessary to expend these monies. d. Fees shall be paid prior to and on a proportionate basis to the issuance of any building permits for the free market units and/or commercial square footage of the project. e. All payment-in-lieu fees, from the time they are due and payable shall become a lien upon the land and improvements against which they are assessed and may be collected against any subsequent owner of such land and/or improvements. Any claim for payment may be prosecuted as an action in personam or by an action of enforcement of such lien or both. If said fee is not paid to the Housing Authority at the time specified in the approval process, interest shall be charged to the applicant at a rate of 2% per month until such fee is paid in full plus attorney fees. f. The payment-in-lieu fee shall be indexed to the payment schedule adopted at time of payment. g. Applicants may choose to prepay the resident housing dedication fee prior to the issuance of any building permits for the project and receive a discount on the fee, based on the present value index included within the guidelines. Approval of the present value discount shall be at the option of the Housing Authority. Lodge and commercial applicants are not offered this option. Residential projects under five units will be offered a discount for early payment calculated on two years at 10 percent. Residential projects over five units will be offered a discount for early payment calculated on five years at 10 percent. G. AFFORDABLE RESIDENT LOTS An applicant for a development in Pitkin County may satisfy the resident housing requirement by development of resident lots. Acceptance of the lots shall be at the discretion of the Pitkin County Board of Commissioners upon recommendation of the Housing Authority. 13 CONDITIONS: 1. Ail lots must be fully developed and ready for construction, i.e., improved lots with water or well, sewer or septic, roads, telephone, electricity, and gas (if available), in place. 2. unimproved lots must be conveyed to the Housing Authority within seven (7) days from the date of recordation of the final plat for the project. 3. At the time of conveyance, an escrow account in an amount sufficient to cover installation of improvements of the lots, in accordance with the Guidelines shall be established in the name of the Housing Authority and the applicant. In no event shall improvements, as noted in Condition No. 1 above, be completed more than one year from the date of conveyance of the property to the Housing Authority. 4. The Subdivision Improvements Agreement and the Protective Covenants shall incorporate the conditions stated in No. 1, 2, and 3, directly above this paragraph. H. PERMANENT MODERATE HOUSING LOTS (PM/{) Ail PMH resident lots proposed to be operated as 100 percent resident housing without any associated free market or commercial development, may be exempt by Contract from the housing price guidelines, if approved by the Aspen city Council or the Board of County Commissioners of Pitkin County, and shall be controlled by separate agreement with the Housing Authority. The city and County may accept land or development rights under separate Agreement. I. LOW IMPACT SUBDIVISIONS Ail PMH lots created subject to the Low Impact Subdivision regulations, shall comply with either the iow, moderate, or middle income and occupancy guidelines, as determined by the Housing Authority. Ail PMH lots granted approval subject to the Low Impact Subdivision shall be restricted by conditions established on a case by case basis by Resolution of the Board of County Commissioners, and upon recommendation of the Aspen/Pitkin Housing Authority. J. DEED RESTRICTING EXISTING UNITS An applicant may satisfy the resident housing obligation by deed restricting existing unrestricted housing that complies with the Affordable Resident Housing Guidelines. Acceptance of existing units shall be at the discretion of the Aspen city 14 Council or the Pitkin County Board of Commissioners upon recommendation of the Housing Authority. Applicant shall provide documentation acceptable to the Housing Authority showing ownership or other agreement granting written permission from the record owner to submit the proposed project to be converted. CONDITIONS: 1. The applicant may purchase fully constructed units and deed restrict them to the resident housing guidelines of the Housing Authority to assure that they can be rented or sold at a price and manner to contribute to affordable resident housing in the city and County. 2. Requirements for upgrade of an existing project shall be as follows: a unit must be freshly painted; all appliances must be in good working order; new carpet will be provided (unless carpet has been purchased in last five years and is in good condition); exterior shall be painted and a general level of upgrade to yards, windows, heating, plumbing and electrical shall be provided. Ail units shall meet UBC minimum standards and shall be approved by the Housing Authority and the Building Inspector prior to issuance of C.O. for the project. 3. Existing units currently deed restricted shall not be eligible. 4. Applicant shall provide documentation acceptable to the Housing Authority showing ownership or other agreement granting written permission from the record owner to submit the proposed project to be converted. K. SPECIAL REVIEW COMMITTEE A Special Review Committee is composed of Housing Authority, city, or County Staff. The Committee shall have the authority to review special circumstances for consideration not addressed in the guidelines, or extraordinary circumstances, including, but not necessarily limited to, a needs assessment for amounts of rooms to be used by an applicant under the priority system; financial and asset limitation considerations; verifications and qualifications which are questionable; self-employment financial qualification considerations, etc. L. ACCESSORY DWELLING UNITS - The development of no more than one Accessory Dwelling Unit per each dwelling unit on a parcel containing a detached residential unit or a duplex, which is required to be deed restricted by a document approved by the 15 Housing Authority. M. CARETAKER DWELLING U~ITS - The development of one affordable resident housing unit attached to or within a single family home or within an agricultural outbuilding on any lot which conforms to the minimum lot area requirements within the R- 15, R-30, AF-2, AF-1, RS-20 and RS-30 zone districts under the following conditions and limitations: 1. Newly constructed resident units shall not have more than one (1) bedroom nor exceed five hundred (500) square feet of total floor area, provided that resident units in the R-15 zone shall be limited to studios not to exceed three hundred fifty (350) square feet. 2. The applicant shall, by deed restriction or other permanent commitment running with the land, guarantee that the employee unit shall remain a rental unit, not be condominiumized, not be occupied by the owner or spouse, be limited to occupancy by not more than two (2) adults, and related children, who qualify as (and have been found by the Housing Authority to be) employees of the community under such guidelines as may be from time to time established by said Authority; and leases shall be provided with terms of not less than six consecutive months. 16 PART III RENTAL/SALE REQUIREMENTS FOR EMPLOYEES Rental/Sale Resident Housing Guidelines establish admission and occupancy criteria for resident units. The intent is to promote and maintain an inventory of affordable rental and ownership units for Aspen/Pitkin County residents. A. PROFILE REQUIREMENTS To be eligible for resident rental/sale housing, a person must: A. Not own residential real estate, or list and sell the residential real estate prior to closing on the affordable housing unit (and still meeting the asset limitations) and B. If he owns vacant land when he leases or purchases a restricted affordable housing unit, as soon as the land is improved with a residence, he must relinquish his rental unit or list and sell his ownership interest in the affordable sales housing unit; and; C. A person must qualify as follows: 1. An employee; 2. A senior resident; 3. A handicapped person; or 4. A dependent of any of the above, as defined by the IRS. B. INCOME RANGE Household income (defined as combined individual income) shall not exceed the following maximums per year: TABLE VIII INCOME MAXIMUM April 1989 to April 1990 THREE OR MORE INCOME CATEGORY DORMITORY STUDIO I BEDROOM 2 BEDROOMS BEDROOMS Low $ 16,800 $ 20,000 $ 29,400 $ 37,700 $ 50,400 Moderate 22,000 27,750 38,500 49,500 66,000 Middle 29,300 36,600 51,300 65,900 88,000 NOTE: A household below an income limit wishing to purchase a unit restricted under a higher category, may qualify for a unit restricted under a higher category. 17 C. ASSET LIMIT Assets shall not exceed the following limits: $250,000 Middle Income $175,000 Moderate Income $125,000 Low Income Any purchaser who has assigned, conveyed, transferred, or otherwise disposed of property within the last two years without fair consideration in order to meet the asset limitations shall be ineligible. D. VERIFICATION Verification for rentals shall be accomplished on a yearly basis for all restricted units. The Housing Authority shall request any combination, or all, of the following documentation as Proof of residency and employment: 1. Federal Income Tax return forms. a. Applicant must provide the last two (2) years of Federal tax returns, an audited financial statement, or acceptable documentation to the Housing Authority. b. No greater than a 20 percent difference between income reported on tax returns and current income statements will be accepted without acceptable docu- mentation of the difference. 2. Employer verification. 3. Landlord verification (proof of residency, physical address). 4. Valid Colorado driver's License (address issue date). 5. Verification of Telephone Service (date of installation, person listed to). 6. Vehicle insurance and registration. 8. Voter registration. 9. Deposits for down payment shall be verified by the holder of such funds. 10. Any documentation which the Housing Authority deems necessary to make a determination. 18 E. PRIORITY FOR RENTAL OF ~FFORD~BLE RESIDENT UNITS Persons desiring to lease a Affordable Resident Unit, shall receive the following priority: 1. Residents. Qualified, verified residents of Pitkin County. 2. Employers. Employers shall be the last priority. Employer must provide a copy of the lease acceptable to the Housing Authority and the lessor defining the rules and obligations contained therein. Employers cannot occupy the resident unit, except by Special Review. F. PRIORITY FOR SALE OF ~FFORD~BLE RESIDENT UNITS, SINGLE-FAMILY HOMES, ~ND LOTS The policy of the Housing Authority Board in the past has been to give residency top priority, and occupancy second priority. However, the Housing Authority Board has determined during review in 1989, that in the case of single-family homes, and lots, tenure and occupancy are tied more closely together. Therefore, the Board has established two separate sets of priorities, as determined below, single family homes or lots, and all other units. Persons desiring to bid on a resident unit, single-family home or lot, listed for sale receive priority according to the following schedule: 1. First Level Priority: Maximum bid price. 2. Second Level of Priority: The following shall have preference and enjoy such in the following priority: a. Persons with present ownership interest (joint or tenants in common) in the unit. The purchase price for this interest must be equal or greater than all other bids offered and not exceeding the maximum allowable bid price. b. Person(s) chosen by the remaining owner(s) to purchase the interest of another owner provided that a bid equal to or greater than all other bids received but not exceeding the maximum appreciation and all owners (after sale) will meet all current qualifications for a household. c. Spouses or children of current owners. d. Tenants displaced due to conversion of a project shall have first priority in the new project. 19 3. Third Level Priority a. For Lots and single-Family Homes only*: i. Resident with 6 or more years in residency (calculated by the Housing Authority): (a) With a minimum occupancy of three or more. (b) With a minimum occupancy of two. ii. Residents with 2 to 6 years in residency (calculated by the Housing Authority): (a) With a minimum occupancy of three or more. (b) With a minimum occupancy of two. iii. Residents with 2 or less years in residency (calculated by the Housing Authority): (a) With a minimum occupancy of three or more. (b) With a minimum occupancy of two. v. Residents with 6 or more years in residency (calculated by the Housing Authority) with no minimum occupancy. vi. Residents with 2 to 6 years in residency (calculated by the Housing Authority) with no minimum occupancy. vii. Residents with 2 or less years in residency (calculated by the Housing Authority) with no minimum occupancy. b. All other resident housing: i. Residents with 6 or more years in residency (calculated by the Housing Authority): (a) With minimum occupancy and living within the complex in which the unit has become available. (b) With minimum occupancy. (c) No minimum occupancy and living within the complex in which the unit has become available. (d) No minimum occupancy. ii. Residents with 2 to 6 years in residency (calculated by the Housing Authority): 20 (a) With minimum occupancy and living within the complex in which the unit has become available (b) With minimum occupancy. (c) No minimum occupancy and living within the complex in which the unit has become available. (d) No minimum occupancy. iii. Residents with less than 2 years in residency (calculated by the Housing Authority): (a) With minimum occupancy and living within the complex in which the unit has become available (b) With minimum occupancy. (c) No minimum occupancy and living within the complex in which the unit has become available. (d) No minimum occupancy. 4. By Special Review, Employers may purchase units and are the last priority. Employers who purchase units are subject to different Occupancy, Resale, Deed Restriction and Covenant which can be obtained through the Housing Authority for review. 5. OTHER CONDITIONS a. Priority for handicapped units shall be given to handicapped persons when equal length of residency is established. b. Persons who own free market residential dwelling units in Pitkin county are eligible to purchase deed restricted sales units contingent upon deed restricting the free market unit they currently own to the rental guidelines set forth in these guidelines concurrently with the purchase of the new deed restricted affordable housing unit. Persons who own deed restricted affordable housing units must sell their unit within 6 months. In the event the unit is not under contract within 6 months, the Housing Authority has the option to buy said unit. c. Any ownership interest other than joint tenancy or tenancy-in-common must be approved by the Housing Authority. d. All transactions regarding the conveyance of any of 21 the units shall be subject to the Occupancy and Resale Deed Restriction, Agreement, and Covenant. e. Co-signers may be approved for ownership projects but shall not occupy the unit unless qualified by the Housing Authority. f. Units with the highest bids of equal amounts and equal priority status shall be placed in a lottery which will be held within a reasonable amount of time following the deadline for bids. g. Leave of Absence may be granted for one year subject to clear and convincing evidence which shows a reason for leaving and a commitment to return to the Aspen/Pitkin area and shall be approved by the Housing Authority Board. said evidence shall be in written form presented to the appropriate Homeowner's Association and to the Housing Authority 30 days prior to leaving for review and recom- mendations. The Leave of Absence shall be for one year and may, at the discretion of the Housing Authority Board, be extended for one year, but in no event shall not exceed two years. The unit may be rented under the Housing Authority's rental guidelines, during said year or years, to a qualified resident in the city of Aspen and/or Pitkin County. After verification andqualification of tenant's, a copy of the executed lease shall be furnished to the Housing Authority. h. If a unit is listed for sale and the owner must relocate to another area, the unit may, upon approval of the Housing Authority Board, be rented to a qualified resident, approved by the Housing office. A letter must be sent to the Housing office requesting permission to rent the unit until sold. A minimum six (6) month written lease must be provided to the tenants with a sixty (60) day move out clause upon notification when the unit is sold. All tenants must obtain verification from the Housing office and the unit must rent as defined in the terms of the Deed Restriction and Covenants on the unit. G. TRANSFER FEE If the title of a unit is transferred according to the Part III.E.2. of these Guidelines, the transfer fee to the Housing Authority shall be $100.00, to be paid at closing. 22 Assets - Anything owned by an individual, which has commercial or exchange value. Assets consist of specific property or claims against others, in contract to obligations due others. Retirement accounts shall not be included in the calculation of assets. capital improvements - any fixture erected as a permanent improvement to real property or that which adds to the value of the property. Caretaker unit - an approved additional dwelling unit either attached or detached to provide housing for a caretaker or manager. There are no asset or income limitations and rental rates are calculated, unless otherwise agreed to under the deed restriction for the particular unit, according to the Housing Authority Guide- lines if the unit is rented to an employee of another project. Co-signer - a joint signer of a promissory note. Consumer Price Index (C.P.I.) - The Consumer Price Index (C.P.I.) as published by the Bureau of Labor Statistics in the U.S. Department of Labor, for All Urban Wage Earners and Clerical Workers (CPI-W) U.S.average - all items or 6% per year whichever is less. Debt/income ratio - the ratio of the monthly debt serviceable as a percentage of gross income. Dormitory - A structure or portion thereof under single management that provides group sleeping accommodations for guests or residents in one (1) or more rooms for compensation. Occupancy of a dormitory unit shall be limited to no more than eight (8) persons. Each unit shall provide a minimum of one hundred and fifty (150) square feet per person of net living area, including sleeping, bathroom, cooking and lounge used in common. Standards for use and design of such facilities shall be in accordance with the Employee Guidelines. Employee or Full Time Equivalent - A person who works a minimum of 30 hours per week 9 months per year and who may or may not live in Pitkin County. For the purposes of calculating employee generation a Full Time Employee Equivalent (FTE) is a person who works 2080 hours per year (173.33 hrs./per mon. x 12 months). Equity -that interest or value remaining in property after payment of all liens or charges on the property or the monetary interest the owner has over and above the mortgage indebtedness. Financial Statement - a statement detailing all personal assets, liabilities, and net worth (the difference between assets and liabilities) as of a specific date. 23 Fixture - 1) a tangible thing, which previously was personal property, and which has been attached to or installed in land or a structure thereon in such a way as to become a part of the real property. 2) any nonportable lighting device built in or attached securely to the structure. 3) The permanent parts of a plumbing system and fixtures. Gross Income - the total income derived from a business, employment and from income-producing property, before deductions for expenses, depreciation, taxes, and similar allowances. Handicapped Person - a person shall be considered handicapped within the meaning of Section 504 of the Rehabilitation Act of 1973 and C.R.S.24-34-301. Household Income - Combined income of all individuals who will be occupying the unit regardless of legal status. Joint Tenancy - Title in real estate owned by two or more persons with right of survivorship, which upon the death of one, vests in the remaining joint tenant or tenants. Interior Design Improvements - Improvements made to a employee/employer owned unit which depreciate over time. Improvements include, but are not necessarily limited to carpet, paint, appliances, window coverings, wall coverings, ceramic tile, light fixtures, etc. Leasehold Interest - a less than fee estate which a tenant possesses in real property. Lottery - a drawing of lots which selects the winner from equal applicants. Maximum Bid Price - calculation of purchase price times the appreciation (as identified in the resale agreement) plus capital improvement costs including labor if professionally provided and for which verification of the expenditure is provided. Minimum Occupancy - one person (with a leasehold/ownership interest) per bedroom. A minor child or dependent shall be granted equal status. Net Livable Square Footage - is calculated on interior living area, includes interior storage area, and does not include exterior storage or garages, either attached or detached. Occupancy and Resale Deed Restriction, Agreement, and Covenant - a contract entered into between the Housing Authority and the purchaser at the time of closing identifying the conditions of occupancy and resale. 24 Permanent Moderate Housing (PMH) - low, moderate, and middle housing free from speculative investment and for primary residence use by employees, senior residents, the handicapped, and the disabled. Present Value - Future value calculation discounted at percent per annum discount rate identified in the guidelines. Resale Agreement - a contract entered into between the Housing Authority and the purchaser at the time of closing identifying the conditions of occupancy and resale. Residency - cumulative length of residency within the last 10 years; need not be continuous or immediately prior to date of application. Seasonal Employee - a person working not less than 30 hours per week, but not for a full year. Senior - a person the age of 60 years or more. Tenancy-in-Common - ownership of property between two or more persons who have an undivided interest in the whole property~ no right of survivorship, when one of the owners dies, the interest _ __ passes to his or her heirs or beneficiaries and not to the surviving tenants in common. 25