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HomeMy WebLinkAboutordinance.council.011-95 ORDINANCE NO. /{ (Series of 199~) AN ORDINANCE AMENDING THE 1994 AFFORDABLE HOUSING GUIDELINES AS RECOMMENDED BY THE ASPEN/PITKIN COUNTY HOUSING OFFICE WHEREAS, pursuant to the Municipal Code of the City of Aspen, as amended, the 1994 Affordable Housing Guidelines were approved by Ordinance No. 14 (Series of 1994); and W-HEREAS, pursuant to prior resolutions and ordinances of the City, the City Council approved priorities for the purchase of deed restricted housing; and WHEREAS, an amendment ("amendment") recommended by the Housing Authority Board of Directors at the special meeting held ~on November 30, 1994, a copy of which is annexed hereto and incorporated herein as Resolution No. 94-07, has been submittedlto the City Council which sets forth the amendment to the 1994 Affordable Housing Guidelines as to a change in the definition of a dependent; and WHEREAS, the City Council desires to adopt said amendment, and by virtue of the enactment of this Resolution to supersede and amend the prior Ordinance No. 14 (Series of 1994) as it pertains to the new definition of a dependent. 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 changes to the 1994 Affordable Housing Guidelines, as recommended by the Board of Directors of the Aspen/Pitkin County Housing Office, a copy of which is annexed hereto and incorporated herein as Resolution No. 94-07, and as follows: a. Dependent shall be defined as a person 21 years or under, related by blood or adoption and living with that applicant at least six months and one day out of every twelve months (183 days), see Exhibit 1. Section 2 A public hearing on the ordinance shall be held on the 27th day of February, 1995, in the City Council Chambers, City Hall, Aspen, Colorado. INTRODUCED, READ ~ ORDERED PUBLISHED as provided by lawiby the City Council of the City of Aspen on the 13th day of February, 1995. en~nett, Mayor ATTEST: kathryn ~ K~ch~ City Ci~r'~--- FINALLY adopted, passed and approved this 27th day of February, 1995. John , Mayor ATTEST: Kathryn S.~och, City-Cl~%r~¢ ~guide~amend. cc 2 A RESOLUTION OF THE ASPEN/PITKIN COUNTY HOUSING BOARD RECOMMENDING AMENDMENTS TO THE 1994 ASPEN/PITKIN COUNTY AFFORDABLE HOUSING GUIDELINES TO THE BOARD OF COUNTY CO~ISSIONERS AND CITY COUNCIL Resolution 94-07 RECITALS A. In April of 1994, the City Council and the Board of County Commissioners (BOCC) directed the Housing Board to re- evaluate the priority system for the purchase of affordable housing units because some community members raised the concern that longevity was not given an appropriate value in the existing priority system. The Council and BOCC were clear that they did not recommend changes, but wanted the Housing Board to evaluate the priority system, solicit public input and report back to each elected body. B. Since June of 1994, the Housing Office and Housing Board have held eleven {11) meetings {community meetings, Housing Board work sessions and regular Housing Board meetings) to receive pub!lic comment on this issue and to discuss amendments. C. Nine (9) of these meetings were advertised in the da~ily papers to ensure that the entire community could attend and comment on changes to the priority system. D. At many of these meetings, attendance exceeded twenty (20) citizens. E. At these meetings, the Housing Board received comments from many sectors of the community, including single parents, divorced parents, children of divorced parents, singles, traditional families and couples without children. Also within each sector, the Housing Board received comments from persons with less than one year of residency to more than twenty-seven years of residency. F. Each sector of the community had legitimate, but different needs and wants from the community's housing program. G. Based upon this five-month, eleven meeting effort to evaluate the existing priority system, the Housing Board made the following findings: 1. The goal of the Aspen Area Community Plan is to house sixty percent (60%) of the workforce upvalley from Aspen Village in as diverse a housing inventory as possible. 2. The Housing Board desires to keep the priority and lottery system simple so that it can be easily communicated to the public and administered by staff. 3. Every time a housing policy is created which favors one sector of the community, other sectors feel excluded. 4. Every time we exclude a sector of the community, we pit one group against another group of the community. This situation is counterproductive to the affordable housing program and to a healthy community. 5. The Housing Board finds that past efforts to enhance "traditional family" housing opportunities have been counterproductive because of their exclusivity. 6. The Housing Board finds that the housing program will serve the community best if it is as inclusive as possible given responsible thresholds on longevity and minimum occupancy. 7. The Housing Board finds the existing Guidelines serve the community well in the areas of longevity and minimum occupancy and should be continued as shown on the current 1994 Affordable Housing Guidelines, Exhibit 1. 8. The Housing Board finds that the definition of dependents is too rigid and that the households with 2 dependent preference for three-bedroom units is counterproductive to our goal of inclusivity. 9. The Housing Board acknowledges the need to create more affordable housing in the community. A balanced housing inventory can create housing opportunities for more of the community without having to give additional preferences in the Guidelines. NOW, THEREFORE, BE IT RESOLVED by the Aspen/Pitkin County Housing Board that they recommend the 1994 Aspen/Pitkin County Affordable Housing Guidelines be amended as follows: a. Dependent shall be defined as a person 21 years or under, related by blood or adoption and living with that applicant at least six months and one day out of every twelve months, see Exhibit 1. b. Delete the language which provides households with dependents a preference for units with three or more bedrooms as stated in Section 6, El, Fi and Gl, see Exhibit 1. APPROVED by the Board at its special meeting on November 30, 1994. A~~AUTHORITY David J. Myler,/~hairman Date ~fi~ Tolen,~Ex~'~ive Director Date C. Persons living within the same complex, meeting minimum occupancy standards shall be placed in the next (third) highest position on the list. D. Persons with minimum occupancy and one or more dependents residing in the unit greater than 225 ~!~ days out of any 12-month period with three or more bedrooms shall be placed in the next (fourth) highest position on the list. NOTES: Minimum Occupancy (see Definitions) as used herein is one person (with a leasehold interest) per bedroom. A minor child or dependent residing in the unit greater than 225 ~i.~ days out of any ~i2-month period shall be granted equal status as a person with a leasehold interest. 2, Emergency Workers (see Definitions) meeting minimum occupancy may qualify for placement into the highest priority category and compete with other applicants in that category upon Special Review and upon finding by the Special Review Committee that the emergency worker complies with the definition herein. 3. Persons who are removed from their residence in Aspen or Pitkin County due to conversion or reconstruction of their residence by governmental action may receive higher priority upon Special Review. 4. First priority for accessible units shall be given to disabled persons prioritized by length of residency. SECTION 5. PROCEDURES FOR SALE AND PURCHASE OF AN AFFORDABLE HOUSING UNIT A. LISTING UNIT WITH THE APCHO: STAFF DUTIES 1. An owner of an affordable housing unit desiring to sell should consult with Housing Office and review the Deed Restriction covering the unit to determine the maximum sales pr[ce permitted and other applicable provisions concerning a sale. Unless otherwise provided in the Deed Restriction, the unit must be listed for sale with the APCHO and the APCHO staff will administer the sale in accordance with the Guidelines in effect at the time of listing. There shall be a minimum listing period of three months before a unit's price can be readjusted. Any termination in the listing may require the payment of administrative and advertising costs. 2. These Guidelines are intended to assure that ALL purchasers and ALL sellers will be treated fairly and impartially. Questions will be answered and help provided to any potential purchasers or sellers EQUALLY in accordance with the current Guidelines. Listings, sales contracts, extensions to contracts and closing documents will be prepared and all actions necessary to consummate the sale shall be undertaken. 3. in pursuit of the above, the APCHO staff will be acting on behalf of the APCHO. It should be clearly understood by and between all parties to a sales transaction that the staff members are not acting as licensed brokers to the transaction, but as representatives of the APCHO and its interests. They shall nevertheless attempt to help both parties to consummate a fair and equitable sale in accordance with the current Guidelines. purchaser's of said units shall also pay the fee based on their mortgage as set forth above. If the fee is paid on a unit and the unit is subsequently refinanced, the fee shall only apply to that amount of the refinanced mortgage greater than the initial mortgage upon which the fee :was initially collected. FNMA-type financing provisions are those which provide, among other things, for the removal of the Deed Restriction on the unit upon foreclosure of the mortgage if the APCHO or the City or the County do not exercise their option to purchase the unit within a specified time following foreclosure. If FNMA-type financing provisions are not used by the mortgagor, no fee shall be charged by the APCHO. The amount and adequacy of the fee and the mortgage reserve fund shall be reviewed annually as part of the review of the Guidelines. D. DEED RESTRICTION The purchaser must execute, in a form satisfactory to the APCHO and for recording with the Pitkin County Clerk concurrent with the dosing of the sale, a document acknowledging the purchaser's agreement to be bound by the recorded Deed Restrict[on covering the sale unit. E. ADDITIONAL INFORMATION 1. Any co-ownership interest other than joint tenancy or tenancy-in-common must be approved by the APCHO. 2. Co-signers may be approved for ownership of the unit but shall not occupy the unit unless qualified by the APCHO. 3. If a unit is listed for sale and the owner must relocate to another area, the unit may, upon approval of the APCHO, be rented to a qualified individual, in accordance with the Guidelines for a maximum period of two (2) years. Notice of such intent and the ability to comment shall be provided to any applicable homeowner's association at the time of request to the APCHO. 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 tenant with a sixty (60) day move out clause upon notification when the unit is sold. All tenants must be qualified by the APCHO and the unit must be leased for the rent and upon the terms set forth in the Deed Restriction on the unit or, if there are no such provisions in the Deed Restriction, upon terms approved by the APCHO. Pr[or to APCHO's qualification of tenant, said tenant shall acknowledge as part of the lease that said tenant has received, read and understands the homeowners' association covenants, rules and regulations for the unit and shall abide by them. Enforcement of said covenants, rules and regulations shall be the responsibility of the homeowners' association. A copy of the executed lease shall be furnished by the owner or tenant to the APCHO and homeowners' association. SECTION 6. PRIORITIES FOR PERSONS BIDDING TO PURCHASE AN AFFORDABLE HOUSING UNIT The qualified person(s) submitting the highest bid price (not to exceed the maximum bid price) during a bid period shall have the first right to negotiate purchase of the unit. If two or more qualified bids are submitted at the highest bid price, they shall receive preference and be prioritized for selection as the top bidder in the following order: A. Persons with a present ownership interest (joint or tenants in common) in the affordable housing unit. B. Person(s) chosen by the remaining owner(s) to purchase the interest of another owner. C. Spouses and/or children of current owners, including joint custody of the children. D. Persons living in and owning another unit within the complex who meet minimum occupancy standards. E. Persons with four or more consecutive years of employment in Pitkin County immediately prior to application for purchase: 1. With minimum occupancy and one or more dependents for units with three or more bedrooms (dependents must reside in the unit greater than 225 i~i~ days out of any 12-month period). 2. With minimum occupancy. F. Persons with one to four consecutive years of employment in Pitkin County immediately prior to application for purchase: 1. With minimum occupancy and one or more dependents for units with three or more bedrooms (dependents must reside in the unit greater than 225 ;~i~ days out of any 12-month period). 2. With minimum occupancy. G. Persons with less than one consecutive year of employment in Pitkin County immediately prior to application for purchase: 1. With minimum occupancy and one or more dependents for units with three or more bedrooms (dependents must reside in the unit greater than 225 ~ days out of any 12-month period). 2. With minimum occupancy. H. Persons with four or more consecutive years of employment in Pitkin County immediately prior to application for purchase not meeting minimum occupancy, but which most closely approximates minimum occupancy. I. Persons with one to four consecutive years of employment in Pitkin County immediately prior to application for purchase not meeting minimum occupancy, but which most closely approximates minimum occupancy. J. Persons with less than one consecutive year of employment in Pitkin County immediately prior to application for purchase not meeting minimum occupancy, but which most closely approximates minimum occupancy. After prioritization, the names of bidders 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. If the terms of the proposed purchase contract, other than maximum price, as initially presented to the owner, are unacceptable to the owner, there shall be a mandatory negotiation period of three (3) business days to allow the owner and potential buyer to reach an agreement regarding said terms, including but not limited to the closing date and financing contingencies. If after the negotiation period is over the owner 12 and buyer have not reached an agreement, the next bidder's offer will then be presented to the owner for consideration and a three (3) business day negotiating period will begin again. All follow-up qualified bids will be processed in a like fashion until the unit is sold or all bids are rejected. If the owner rejects all bids, the unit shall be rebid or withdrawn from sale and the owner shall be subject to the provisions of Section 4, paragraph C.1., regarding sales fee. NOTES: 1. Minimum Occupancy (see Definitions) as used herein is one person (with an ownership interest) per bedroom. A minor child or dependent residing in the unit greater than 225 ~i.~ days out of any 12- month period shall be granted equal rights as a person with an ownership interest. 2. Emergency workers (see Definitions) meeting minimum occupancy may qualify for placement into the highest lottery category (except Sections 5 A, B and C) and compete with other applicants in that category upon Special Review and upon finding by the Special Review Committee that the emergency worker complies with the definition herein. 3. First priority for accessible units shall be given to disabled persons prioritized by length of residency. 4. Persons who are removed from their residence in Aspen or Pitkin County due to conversion or reconstruction of their residence by government action may receive higher priority upon Special Review. 5. Transfer within immediate family to a qualified buyer requires a $100 fee. SECTION 7. LEAVE OF ABSENCE FOR OWNERS OF AFFORDABLE HOUSING UNITS If an owner of an affordable housing unit must leave Pitkin County for a limited period of time and desires to rent the unit during the absence, a leave of absence may be granted by the APCHO for one year upon clear and convincing evidence which shows a bona fide reason for leaving and a commitment to return to the Aspen/Pitkin area. A letter must be sent to the APCHO, at least 30 days prior to leaving, requesting permission to rent the unit during the leave of absence. Notice of such intent to rent and the ability to comment shall be provided to any applicable homeowners' association at the time of request to the APCHO. The leave of absence shall be for one year and may, at the discretion of the APCHO, be extended for one year, but in no event shall the leave exceed two years. The unit may be rented in accordance with the APCHO's Guidelines during said one or two year period so long as the Deed Restriction covering the unit permits the rental. In the event that the rental rate is not set forth in the Deed Restriction, the rent shall be established at the greater of owner's cost or the rent established in accordance with the Guidelines for units at the appropriate income category (see Table IV). Owner's cost as used herein includes the monthly mortgage principal and interest payment, plus condominium fees, plus utilities remaining in owner's name, plus taxes and insurance prorated on a monthly basis, plus $20 per month. Prior to APCHO's qualification of tenant, said tenant shall acknowledge as part of the lease that said tenant has received, read and understands the homeowners' association covenants, rules and regulations for the unit and shall abide by them. Enforcement of said covenants, rules and regulations shall be the responsibility of the homeowners' association. A copy of the executed lease shall be furnished by the owner or tenant to the APCHO and homeowners' association. Additionally, an owner may request a one-time in-county leave of absence for six (6) months by Special Review with all the above conditions applying. ~3 PART VII. DEFINITIONS Accessible Dwelling Unit - Any dwelling unit that is Cosigner- Ajoint signatory of a promissory note who approachable, functional and can be used by people shall not occupy the unit unless qualified by the with disabilities, independently, safely, and with APCHO. dignity. Deed Restriction - A contract entered into between Accessory Dwelling Unit (Ordinance#I, Series of the APCHO and the owner or purchaser of real 1990) See Aspen Land Use Code, Supp. No. 2, property identifying the conditions of occupancy and Section 5-510. resale. Affordable Housing - Dwelling units restricted to the Dependent - A child or other re[afire of the renter or housing size and type for individuals meeting asset, owner of an affordable housing unit, which child or income and minimum occupancy guidelines approved relative is taken and listed as a dependent for federal by the Aspen City Council, Board of County income tax purposes by such renter or owner or his or Commissioners and/or the APCHO, whichever shall her present or former spouse Affordable Hous n,q Zone District - See Aspen Land ~=~i~[~[i~!i~':';~:~':';~;~;~';:''~:~ Use Code, Supp. No. I, Section 5-206.2. 225 days out of any 12-month period of time). APCH0 - Aspen/Pitkin County Housing Office. Disabled Person - A person who meets the definition of "individual with handicaps" contained in 29 UiS.C. Assets - Anything owned by an individual which has Section 706(8), as amended, the federal Rehabilitation commercial or exchange value. Assets consist of Act of 1973; or a person who has a "handicapi" as specific property or claims against others, in contrast defined in C.R.S. 24-34-301(4), the ColOrado to obligations due others. See also definition for Antidiscrimination Act. Gross Assets and Net Assets. Dormitory- A structure or portion thereof under single Basement - As defined by the applicable City or management that provides group sleeping accommo- County Land Use Code. dafions for occupants in one (1) or more rooms for compensation. Standards for use, occupancy, and Bedroom - Designed to be used for sleeping purposes design of such facilities shall be approved by the which may contain closets, may have access to a APCHO. See Part III, Section 4, of these Guidelines. bathroom and which meets applicable City or County Uniform Building Code requirements for light, Emergency Worker- An employee or volunteer (on ventilation, sanitation and egress, call 24 hours/day for human, life threatening emergencies) of a community based organization that Buydown Unit - Free-market which the government provides on-scene assistance giving personal care to (Aspen, Pitkin County, Housing Office) acquired and victims, including, but not limited to the following: Fire deed restricted to affordable housing. Department Workers, Mountain Rescue, Sheriff's Deputies, Police Officers, Hospital Emergency Room Capital Improvements- Unless otherwise defined in Technicians, Social Service Workers (mental health the Deed Restriction covering the affordable housing and abuse case workers), Ambulance Drivers and unit, any fixture erected as a permanent improvement Emergency Medical Technicians. to real property excluding repair, replacement, and maintenance costs. Employee/Qualified Resident - A person who is employed on the basis of a minimum of 30 hours per Caretaker Dwelling Units - See County Land Use week, 9 months per year, in Pitkin County (also see Code. definition for Seasonal Employee). 30