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HomeMy WebLinkAboutordinance.council.023-82 RECORD OF PROCEEDINGS 100 Leaves ORDINANCE NO. 23 (Series of 1982) AN ORDINANCE AMENDING ORDINANCE NO. 79, SERIES OF 1981, TO ESTABLISH 1982 QUALIFICATIONS AND GUIDELINES FOR LOW, MODERATE AND MIDDLE INCOME OWNERSHIP AND RENTAL OF EMPLOYEE HOUSING UNITS WHEREAS, within the provisions of Section 24-11.4(b)(4)(aa) of the Municipal Code of the City of Aspen, as amended, housing income-eligibility guidelines and housing price guidelines are to be established by the City Council, and WHEREAS, pursuant to Ordinance No. 79, Series of 1981, the City Council established employee housing income-eligibility guidelines and housing price guidelines for the year 1982, and WHEREAS, for the purpose of establishing uniform employee housing income-eligibility guidelines and housing price guidelines for both the City and County and in anticipation of the creation of a joint City/County Housing Office, the City Council desires to amend Ordinance No. 79, Series of 1981, for the purpose of re- establishing the guidelines as set forth below: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 That Section 1 of Ordinance No. 79, Series of 1981, is hereby amended to read as follows: "Section I That the following shall constitute the City of Aspen's 1982 employee housing income-eligibility guidelines for low, moderate and middle income employee housing units located within the City of Aspen: 1. Personal income shall not exceed the following maximum combined (family) household income per year (less alimony and child support payments paid). RECORD OF PROCEEDINGS 100 Leaves INCOME RANGE LOW MODERATE MIDDLE Studio 0 - 10,000 9,250 - 14,700 13,600 - 29,400 1 Bedroom 0 - 14,350 13,275 22,050 20,400 - 33,520 2 Bedroom 0 - 21,170 19,585 - 29,400 27,200 - 51,750 3 or 4 Bedroom 0 - 25,580 23,665 - 38,520 35,630 - 68,720 2. Applicants of 55 years of age or older shall be reviewed according to the current income and residency guidelines for senior citizens adopted annually by the City Council. 3. Household assets shall not exceed 150% of the purchase price of the unit. Assets shall include all fixed and liquid assets, excluding personal effects. Assets shall include all professional 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 schedule: A. Employee-Owned Units: a) Residents of five (5) or more years with a minimum occupancy of one resident per bed- room. b) Two (2) to five (5) years residency with mini- mum occupancy. c) Two (2) or more years of residency without minimum occupancy. d) Fewer than two (2) years of residency with minimum occupancy. 2 RECORD OF PROCEEDINGS 100 Leaves B. Employer-Owned Units: In the event units are employer owned, persons employed directly by the owners shall be given first priority in accordance with the schedule con- tained in subparagraph "A" hereinabove. In the event there are no persons directly employed by the owner who qualify or are available, then the unit shall be offered to such other qualified residents and employees in accordance with the schedule con- tained in subparagraph "A" hereinabove. If there remain unsold units within a project, the two year period may be reduced by six (6) month intervals until all units are sold. For the purpose of this section, minimum occupancy is defined as one person (with an ownership interest, or party to a lease if a rental project) per bedroom, and maximum occupancy is defined as not exceeding two persons (each with an ownership interest, or party to lease if a rental project) per bedroom. The minor children of a person with an ownership interest (or party to a lease if a rental project) is granted the same status as his or her parent for the purposes of this section. For the purpose of assigning priority, the highest number of years of residency held by a spouse, any person acquiring an ownership interest, or signing a lease (if a rental project) will de~ermine into which category the applicants will be assigned. 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 spouses (and intended spouses) of current owners and persons fifty-five (55) years of age or older. 3 RECORD OF PROCEEDINGS 100 Leaves 7. The following shall have preference and enjoy such in the following priority: (a) Persons with an ownership interest (joint or ten- ants in common) in the unit provided that they have lived in the unit for at least one (1) year prior to conveyance. This section shall not apply when the sale of one owner's interest to another is an exempt transfer under the resale agreement. The purchase price for this interest must be equal to or greater than all other bids offered (but not exceeding the maximum appreciation). (b) Person(s) chosen by the remaining owner(s) to pur- chase the interest of another owner provided that he (they) make a bid equal to or greater than all other bids received (not exceeding the maximum appreciation) and all owners (subsequent to sale) will meet all current qualifications for a house- hold. (c) Spouses and intended spouses of current owners. (Assurances may be required of an intended marriage and require the intended spouse to relinquish his or her interest in a unit if the marriage does not occur.) (d) Any owners of housing under a County Resale Agree- ment specifically giving the owner a priority over other applicants for employee housing units within the City. (e) Those applicants who have been tenants on the site of a new employee housing project and shall be dis- placed due to the construction of the new project 4 RECORD OF PROCEEDINGS 100 Leaves or the conversion of an existing project, provided that: 1) The tenants have lived on the site or in the units for a minimum of six (6) months before the starting date of construction, conversion, or approval for conversion; 2) The tenants meet all other qualifications per- taining to the project. 8. Debt/income ratios, including all liabilities, shall be as follows: 31-34% of total income allocated for servicing housing debt and related obligations, 38%-41% total income for all serviceable debt and obli- gations which includes current obligations added to loan liability for the purpose of calculating 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 qualifica- tions and all units shall be owner-occupied. Joint tenancy and tenancy in common shall be permitted with other forms of joint ownership permitted only on special review of the City of Aspen. 10. All transactions regarding the conveyance of any of these types of unit 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) Proof of residency and employment shall consist of: RECORD OF PROCEEDINGS 100 Leaves (1) Employee verification - (W-2 income, Federal Tax return forms 1040/1040A for financial information). (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. (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). (d) Applicants shall be reviewed according to the fol- lowing financial criteria: (1) Applicant must provide two (2) years of Federal tax returns and income statement and balance sheet. (2) No greater than a 20% discrepancy will be accepted between income reported on tax returns and current income statement, without thorough documentation of the discrepancy due to wage increase, change in positions, etc. (3) Co-signors will be approved for ownership pro- jects provided that the co-signor is either related to the purchaser or is an employer of RECORD OF PROCEEDINGS 100 Leaves the purchaser and is not liable for more than twenty percent (20%) of the monthly payments required to amortize the mortgage. *Optional methods." Section 2 That Section 2 of Ordinance NO. 79, Series of 1981, is hereby amended to read as follows: "Section 2 The following shall constitute the City of Aspen's employee housing price guidelines for sale and rental of low, moderate and middle income employee housing units located within the City of Aspen: INCOME RANGE LOW MODERATE MIDDLE Studio 0 - 10,000 9,250 - 14,700 13,600 - 29,400 1 Bedroom 0 - 14,350 13,275 - 22,050 20,400 - 33,520 2 Bedroom 0 - 21,170 19,585 - 29,400 23,665 - 38,520 3 or 4 Bedroom 0 - 25,580 23,665 - 38,520 35,630 68,720 Constructed Units (Allowed price per square foot) LOW MODERATE MIDDLE Sales1'2 $58.00 $72.00 $87.00 Rental3'4'5 .55 .65 .82 MINIMUM/MAXIMUM SQUARE FEET: Studios: 300-600 Sq. Ft. 1 Bedroom: 500-899 Sq. Ft. 2 Bedroom: 700-1100 Sq.Ft. 3 and 4 Bedroom: 1000-1300 Sq. Ft. NOTES: 1 and 3 Square foot allowance is calculated on living area only (interior measurement). Rental rates rounded to nearest $5. Sales prices rounded to nearest $100. 7 RECORD OF PROCEEDINGS 100 Leaves 2Allowable price per square foot is calculated at 13% inter- est amortizing for 30 years with 10% down. If 13% financing with 10% down is not provided the price per square foot will be adjusted to reflect appropriate affordability. The aver- age income to each category for each size unit will be used to determine affordability. 4Rental prices include all common utilities. 5The rental rates which may be charged for a project is the rate in effect at the time of general submission approval. " Section 3 That Ordinance No. 79, Series of 1981, is hereby amended by adding a Section 3, which section shall read as follows: "Section 3 All employee housing units constructed and operated as 100% employee housing without any attached free market or commercial development, are exempt from the housing price guidelines. The establishment of sales and rental prices will be done on a case by case basis, and must be reviewed and approved by the City Council. Requests for establishment or increases in sales or rental prices must be supported by documentation indicating economic justifica- tion for such request." Section 4 That Section 4 of Ordinance NO. 79, Series of 1981, is hereby amended to read as follows: "Section 4 The employee housing income-eligibility guidelines and hous- ing price guidelines set forth above shall apply to all units deed restricted to employee housing units after December 28, 1981. All employee housing units approved prior to December 28, 1981, shall be allowed to adjust their rental rates and/or sales prices con- sistent with the guidelines contained in this ordinance and con- sistent with any subsequent guidelines adopted by the City of Aspen, provided, however, that in no case shall any previously 8 RECORD OF PROCEEDINGS 100 Leaves deed restricted employee unit be required to reduce its rental rate or sales price in the event said guidelines are decreased." Section 5 That Ordinance No. 79, Series of 1981, is hereby amended by adding a new section 4-a, which shall read as follows: "Section 4-a The guidelines established above shall remain in force and effect until such time as they are amended or supereeded by Ordinance of the City Council." Section 6 If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent 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 A public hearing on the ordinance shall be held on the~ day of ·~ ~m , 1982, at 5:00 P.M. in the City C bers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED published as provided by law by the~Ci~y Council of the City of Aspen on the /d~ day of , 1982. ATTEST: Kathryn S~/Koch~,' City Clerk 9 RECORD OF PROCEEDINGS 100 Leaves FINALLY adopted, passed and approved this ~7- . day of Herman' 5~el, hayor ~ATTEST:' -c~ -~ Kathryn'~. Koch, City Clerk 10 RECORD OF PROCEEDINGS 100 Leaves STATE OF COLORADO ) CERTIFICATE ) ss 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 /~ , 19 .~ and published in the Aspen Times a wetly newspaper of general circul- ation,/pub!ished in the City of Aspen, Colorado, in its issue of /3 , 19 __ and was finally adopted and approved at a regular meeting of tko City Council on /'-~~J , 19--~ and ordered published as Ordinc.nce No. Series of 19 of said C~t~, as provided by law. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of said City of Aspen, Colorado, this ../~q4(_- day of ~ ~., 19~ Kathyrn S.~och, City Clerk ~ ..... -~~Cl'erk ....