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Home My WebLink Aboutordinance.council.049-83 RECORD OF PROCEEDINGS Leaves ORDINANCE NO. ~/~ (Series of 1983) AN ORDINANCE ESTABLISHING 1983 QUALIFICATIONS AND GUIDELINES LOW, MODERATE AND MIDDLE INCOME FOR OWNERSHIP, RENTAL AND DEVE[ MENT OF EMPLOYEE HOUSING UNITS WITHIN THE CITY OF ASPEN AND BY VIRTUE OF THIS ORDINANCE SUPERSEDING AND AMENDING PRIOR RESOLU- TIONS AND ORDINANCES (SPECIFICALLY ORDINANCE NO. 79, SERIES OF 1981, ~ND ORDINANCE NO. 23, SERIES OF 1982) BUT ONLY TO THE EX~ THAT THEY ARE INCONSISTENT WITH THIS ORDINANCE WHEREAS, pursuant to the Municipal Code of the City of Asp.~n, as amended, 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 City, specifically Ordinance No. 79, Series of 198~, as amended Ordinance No. 23, Series of 1982, the City Council established Employee Housing Income - Eligibility Guidelines and Housing Pri ~e Guidelines~for prior years, and WHEREAS, pursuant to Resolution NO. 83-20 the Housing Authol- ity of the City of Aspen and Pitkin County has established 1983 housing authority qualifications guidelines for low, moderate middle income ownership housing projects; and pursuant to Resolu- tion No. 83-21 has established 1983 housing authority qualifica- tion guidelines for low, moderate and middle income rental projects; and pursuant to Resolution NO. 83-22 established 1983 qualification guidelines for low, moderate and middle income rental housing projects associated with lodge and commercial development, and WHEREAS, with the goal of establishing uniform Employee Hous- ing Income - Eligibility Guidelines and Housing Price Guidelines as recommended by the Aspen/Pitkin Housing Authority, the City Council desires to establish 1983 qualifications and guidelines for low, moderate and middle income ownership, rental and develop- ment of employee housing units as set forth below and, by virtue of the enactment of this ordinance, to supersede and amend all RECORD OF PROCEEDINGS Leaves resolutions and ordinances of the City pertaining to housing guidelines, but only to the extent inconsistent with the provisions of this ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF TH CITY OF ASPEN, COLORADO: Section 1. Ownership Housing Projects. The following shall constitute the City of Aspen's 1983 qualifications for low, moderate and middle income housing pr jects located within the City of Aspen: 1. Persons shall not exceed the following maximum combined (family) household income per year: INCOME RANGE STUDIO ONE BEDROOM TWO BEDROOM 3 & 4 BED~ )OM Low 0-12,200 0-17,090 0-21,970 0-29, 95 Moderate 10,980-18,955 15,380-26,540 19,775-34,120 26,365-45, 95 Middle 18,935-28,790 26,540-40,300 34,120-51,825 45,495-69, 90 2. Applicants of 60 years of age or greater shall be reviewed according to the current income and residency guidelines for senior citizens adopted annually by the Board of Commissioners of the Aspen/Pitkin Housing Authority, as approved by the City Council. 3. Household assets shall not exceed 150% of the purchas price of the unit. Assets shall include all fixed and liquid assets, excluding personal effects. Assets shall include all p~o- fessional and business equity for both self-employed persons and investors. If there remain unsold units within a project, the 150% asset maximum may be increased by 25% increments not to exceed 200% of sale price until all units are sold. 4. All persons shall be residents and employees in Pitkin County and shall receive priority according to the following dule: 2 RECORD OF PROCEEDINGS 10C Leaves a. Residents of five (5) or more years with a minimum occupancy of one person per bedroom. b. Two (2) to five (5) years of residency with minimum occupancy of one person per bedroom. c. Two (2) or more years of residency without minil~um occupancy of one person per bedroom. d. Fewer than two (2) years of residency with minimum occupancy of one person per bedroom. If there remain unsold units within the project, the two year period may be reduced by six (6) month intervals until all unit are sold. For the purpose of this section, minimum occupancy is defined as one person (with an ownership interest) per bedroom. The minor children of a person without an ownership interest is granted the same status as his or her parent for the purpose of this section. For the purpose of assigning priority, the highest ber of years of residency held by a spouse, any person acquiring an ownership interest, will determine into which category the applicants will be assigned. The period of residency need not be continuous and nee, not be immediately prior to the date of application. 5. Persons who work in the County full time but live out- side the County shall be considered residents. 6. All persons shall be full time employees from the date of occupancy, provided that this requirement shall not apply to spouses (and intended spouses) of current owners and persons si~ (60) years of age and older. 7. The following shall have preference and enjoy such in the following priority: 3 RECORD OF PROCEEDINGS 10 Leaves a. Persons with an ownership interest (joint or ~n- ants in common) in the unit. The purchase pr ce for this interest must be equal to or greater than all other bids offered (but not exceeding the ~xi- mum appreciation). b. Person(s) chosen by the remaining owner(s) to chase the interest of another owner provided ~at he (they) make a bid equal to or greater than other bids received (not exceeding the maximum appreciation) and all owners (subsequent to will meet all current qualifications for a hou~e- hold. c. Spouses of current owners. d. Any owners of housing under a Housing Authorit5 Resale Agreement specifically giving the owner priority over other applicants for Authority he s- ing units. e. Those applicants who have been tenants on the site of a new employee housing project and shall be lis- placed due to the construction of the new project or the conversion of an existing project, provi(led that: (1) The tenants have lived on the site or in e units for a minimum of six (6) months befoze the starting date of construction, conversion, or approval for conversion; (2) The tenants meet all other qualifications ~r- raining to the project. 8. Debt/income ratios, including all liabilities, shall exceed: RECORD OF PROCEEDINGS 10C Leaves a. 31-34% of total income allocated for servicing housing debt and related obligations; b. 38-41% of total income for all serviceable debt added to loan liability for the purpose of calcu- lating and adjusting the Minimum Required Household Income (M.R.H.I.). 9. Unless specifically exempted by these guidelines, all persons having an ownership interest shall meet these qualifice tions and all units shall be owner-occupied. Joint tenancy an~ tenancy in common shall be permitted with other forms of joint ownership permitted only on special review of the Authority. 10. All transacations regarding the conveyance of any of these types of units shall be subject to the Resale Agreement. 11. For the purpose of applying these guidelines: a. Assets and equity shall be defined in accordance with Federal Tax regulations concerning property~ bonds, interest, etc. Income is Adjusted Gross Income as defined in Internal Revenue Service (I.R.S.) regulations. b. Income shall not include alimony or child support payments. c. Proof of residency and employment shall consist of: (1) Employee verification (W-2 income, Federal ~x return forms (1040/1040A) for financial info mation. (2) Employer verification. (3) Landlord verification (proof of residency, physical address). (4) *Valid Colorado Driver's License (address, issue date). 5 RECORD OF PROCEEDINGS 100 Leaves (5) *POSt Office box. (6) *Telephone (date of installation, person listed to). (7) *Vehicle insurance and registration. (8) *Voter registration. *Optional Methods d. Employment and residency shall be averaged for ~ minimum requirement of nine (9) months employme! and residency. (Thirty (30) hours per week divided by forty (40) hours/full time week = 75%; 12 mo~ths x 75% = 9 months). e. Applicants shall be reviewed according to the fo - lowing financial criteria: (1) Applicant must provide two (2) years of Federal tax returns and income statement an. balance sheet. (2) No greater than a 20% discrepancy will be accepted between income reported on tax returns and current income statement, withou~ thorough documentation of the discrepancy du~ to wage increase, change in positions, etc. (3) Co-signers will be approved for ownership jects provided that the co-signer is either related to the purchaser or is an employer the purchaser and is not liable for more than twenty percent (20%) of the monthly payments required to amortize the mortgage. 6 RECORD OF PROCEEDINGS 100 Leaves Section 2. Rental Housing Projects. The following shall constitute the 1983 qualifications for low, moderate and middle income residential rental housing pro- jects within the City of Aspen Housing Authority's jurisdiction or control: 1. Persons shall not exceed the following maximum combined (family) household income per year: INCOME RANGE STUDIO ONE BEDROOM TWO BEDROOM 3 & 4 BEDRgOM Low 0-12,200 0-17,090 0-21,970 0-29,295 Moderate 10,980-18,955 15,380-26,540 19,775-34,120 26,365-45,495 Middle 18,935-28,790 26,540-40,300 34,120-51,825 45,495-69,090 2. Applicants of 60 years of age or greater shall be reviewed according to the current income and residency guidelines for senior citizens adopted annually by the Board of Commissioners of the Aspen/Pitkin Housing Authority, as approved by the City Council. 3. Household assets shall not exceed 150% of the value of the unit (based upon the allowable sales price per square foot). Assets shall include all fixed and liquid assets, excluding per- sonal effects. Assets shall include all professional and business equity for both self-employed persons and investors. 4. All persons shall be residents and employees in Pitkin County. The period of residency need not be continuous and need not be immediately prior to the date of application. 5. Persons who work in the County full time but live out- side the County shall be considered residents. 6. All persons shall be full time employees from the dace of occupancy, provided that this requirement shall not apply to spouses (and intended spouses) of current tenants and persons sixty (60) years of age and older. 7. For the purpose of applying these guidelines: RECORD OF PROCEEDINGS 100 Leaves ao Assets and equity sh~ll be defined in accordance with Federal Tax regulations concerning property, bonds, interest, etc. Income is Adjusted Gross Income as defined in Internal Revenue Service (I.R.S.) regulations. b. Proof of residency and employment shall consist of: (1) Employee verification (W-2 income, Federal Tax return forms (1040/1040A) for financial infor- mation. (2) Employer verification. (3) Landlord verification (proof of residency, physical address). (4) *Valid Colorado Driver's License (address, issue date). (5) *Post Office box. (6) *Telephone (date of installation, person listed to). (7) *Vehicle insurance and registration. (8) *Voter registration. *Optional Methods RECORD OF PROCEEDINGS 100 Leaves Section 3. Rental Housing Projects Associated with Lodge and Commercial Development. The following shall constitution 1983 qualifications for .ow, moderate and middle income housing projects associated with lolge and commercial development within the City of Aspen: 1. In the event employee units associated with a lodge commercial development are employer owned, persons employed directly by the owners shall be given first priority to occupy he units. In the event there are no persons directly employed by owner who qualify or are available, then the unit shall be off, fed to such other qualified residents and employees in accordance th the limitations contained herein. 2. Persons shall not exceed the following maximum combin~ (family) household income per year: INCOME RANGE STUDIO ONE BEDROOM TWO BEDROOM 3 & 4 Low 0-12,200 0-17,090 0-21,970 0-29,29 Moderate 10,980-18,955 15,380-26,540 19,775-34,120 26,365-45,49 Middle 18,935-28,790 26,540-40,300 34,120-51,825 45,495-69,09 3. Household assets shall not exceed 150% of the value o~ the unit (based upon the allowable sales price per square foot). Assets shall include all fixed and liquid assets, excluding per- sonal effects. Assets shall include all professional and busine: s equity for both self-employed persons and investors. 4. All persons shall be residents and employees in Pitkin County. The period of residency need not be continuous and need not be immediately prior to the date of application. 5. Persons who work in the County full time but live out- side the County shall be considered residents. 6. All persons shall be full time employees from the date of occupancy, provided that this requirement shall not apply to 9 RECORD OF PROCEEDINGS 100 Leaves spouses (and intended spouses) of current tenants and persons sixty (60) years of age and older. 7. For the purpose of applying these guidelines: a. Assets and equity shall be defined in accordance with Federal Tax regulations concerning property, bonds, interest, etc. Income is Adjusted Gross Income as defined in Internal Revenue Service (I.R.S.) regulations. b. Proof of residency and employment shall consist of: Employee verification (W-2 income, Federal Tax return forms (1040/1040A) for financial infor- mation. 2) Employer verification. 3) Landlord verification (proof of residency, physical address). (4) *Valid Colorado Driver's License (address, issue date). 5) *Post Office box. 6 *Telephone (date of installation, person listed to). 7 *Vehicle insurance and registration. 8 *Voter registration. *Optional Methods c. Employment and residency shall be averaged for a minimum requirement of nine (9) months employment and residency. (Thirty (30) hours per week divided by forty (40) hours/full time week = 75%; 12 months x 75% = 9 months). 10 RECORD OF PROCEEDINGS 100 Leaves d. Applicants must provide two (2) years of Federal Tax returns and income statement and balance sheets. 11 RECORD OF PROCEEDINGS Leaves Section 4. Development of Employee Housing Units. The following shall constitute the 1983 price guidelines or the development of sale and rental, low, moderate and middle income units: 1. PRICE GUIDELINES:9 LOW MODERATE MIDDLE CONSTRUCTED UNITS (Allowed price per square foot) SALES (1,2,5,7) $65 $86 $127 RENTAL (3,4,6,9) .58 .78 1.13 2. MINIMUM/MAXIMUM SQUARE FEET:8 LOW MODERATE MIDDLE Studios 400-500 400-500 500-600 1 bedroom 500-600 600-700 700-800 2 bedroom 700-850 850-1,000 900-1,10 3 bedroom 850-1,000 1,000-1,100 1,100-1 20 3. Applicants for the 1983 GMP allocation shall not recei e points under the Growth Management Quota System for proposing to develop middle income units to satisfy the employee housing requirement. 4. The following notes pertain to Paragraph 1 and 2 above 1 and 3 Square foot allowance is calculated on living area only (interior measurement). Rental rates rounded to nearest $5. Sales prices rounded to neartest $100. 2 Allowable price per square foot is calculated at 13% interest amortizing for 30 years with 20% down. If 13% financing with 20% down is not provided, the price per square foot will be adjusted to reflect appropriate affordability. The average income in each category for each size unit will be used to determine affordability. 4 Rental prices include all commonly metered or assessed utili- ties, condominium dues and taxes. 5 All "for sale" units will be offered through the Housing Author- ity to all qualified employees under procedures established by the Aspen/Pitkin Housing Authority. 12 RECORD OF PROCEEDINGS 10~ Leaves 6 Unless specifically exempt from this provision, all occupant of deed restricted rental units must be qualified prior to occu pancy by methods approved by the Housing Authority. 7 All units offered for sale must be fully constructed and occ pancy ready (i.e. appliances, carpeting or floor covering, e~.c.) 8 Upon demonstration by a Lodge or Commercial applicant that hi can and will provide employee housing to the extent to which the demand for low and moderately priced housing would be increa:ed by the proposed development, the minimum square feet stipulation may be waived with the approval of the Aspen/Pitkin Housing Authority. 9 Existing rental units may increase rental rates by no more 6.6 over current rental rates. Section 5. The foregoing regulations and guidelines shall not be bind:ng (but shall be advisory only) on employee housing projects devel- oped and operated as one hundred percent (100%) employee housin¢ projects (i.e. projects without attached free market or lodge commercial development); provided that such project shall be governed by regulations and guidelines which are separately set contract by the developer and/or operator and the City Council )r its designee) upon a finding by the City of economic justificat: for any deviation from the foregoing established regulations and guidelines. The regulations and guidelines set forth herein shall super sede, to the extent inconsistent with the provisions of this ordinance, all prior resolutions and ordinances of the City of Aspen, specifically Ordinance No. 79 (Series of 1981), as amende( by Ordinance No. 23 (Series of 1982); provided further that the provisions of prior resolutions and ordinances pertaining to employee housing guidelines shall remain in full force and effect to the extent not inconsistent herewith. 13 RECORD OF PROCEEDINGS 10~ Leaves Section 6. Severability. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of ~mpetent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 7. Public Hearing. A public hearing on the ordinance shall be held on the day of ~~-~ , 1983, at 5:00 P.M. ~n the City Council Chambers, Aspen City Hall, Aspen, Colorado, 5 days prior to which hearing notice of the same shall be publish, once in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ MD ORDERED published as provided by law the City Council of the City of Aspen on thec~ day of /~ , 1983. -~ -~. William L. Stirli ATTEST: ~o~ch, City Clerk/ FINALLY adopted, passed and approved this /7 day of ~ , 1983. ATTEST: ~ 14 RECORD OF PROCEEDINGS 100 Leaves STATE OF COLORADO ) ss CERTIFICATE COUNTY OF PITKIN ) I, Kathryn S. Koch, City Clerk of Aspen, Colorado, do hereby certify that the above and foregoing ordinance was introduced, read in full, and passed on ~ reading at a regular meeting of the City Council of the City of Aspen on ~~3 ~ , 19 ~ , and published in the Aspen Times a weekly newspaper of general circulation published in the City of Aspen, Colorado, in its issue of ~~ ~ , 19 ~ , and was finally adopted and approved au aAregular meeting of the City. Council on ~~ /~ , 19 ~ , and ordered published as Ordinance No. .~/ , Series of 19 ~ , of said City, as provided by law. IN WITNESS WHEREOF, I have hereunto set mY hand and the seal of said City of Aspen, Colorado this /~ day S.E A L Deputy City Clerk