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GLENWOOD SPRINGS, Colorado — The city will allow credits for income-restricted rental apartments at Glenwood Meadows to be used toward the developers' overall affordable housing requirement, City Council agreed at its Sept. 2 meeting.
However, the Meadows' most recent bid for federal Low Income Housing Tax Credits was denied by the Colorado Housing and Finance Authority. So developers Robert Macgregor and Mike Maple must now work with the city to come up with acceptable guidelines for the rent controls.
Council voted 6-1 directing city staff to work with Glenwood Meadows LLC on final language amending the Annexation and Development Agreement for the mixed-used Meadows project, as it relates to affordable housing.
The move may also lead to a broader policy change that recognizes rent-controlled apartments as a part of the city's community housing program, as long as developers are willing to consider the option.
In addition to the large retail commercial center at Glenwood Meadows, the project was approved in 2005 for up to 475 residential units. Of those, 300 can be rental apartments.
The city's community housing program requires 15 percent of all “for sale” market units to be deed-restricted and targeted at households earning 100 percent of the Area Median Income (AMI).
Under the amended agreement, though, the Meadows will be given a 70 percent credit toward an affordable market unit for each “long-term” (at least 40 years) income-restricted rental unit.
The Meadows would also still need to include at least 5 percent affordable “for sale” units, using the same deed and income restrictions.
Developers had requested a minimum of 3 percent, but with a 50 percent credit for rental units. Council, on recommendations from city planning staff as well as the city planning commission, stipulated 5 percent. Affordable rental units will also likely need to be targeted at those earning 80 percent of the AMI.
“We do feel that affordable rentals are important to the community,” city planner Jill Peterson said. “But affordable for-sale units are still more important, because it helps to create a more stable work force.”
Peterson offered that, because of the downturn in the housing market, it's likely that Glenwood Springs will see more rental projects in the near future.
And, the recent passage of HB 1017, which was signed into law by Gov. Bill Ritter earlier this summer, allows for local governments to negotiate with willing developers on the creation of rent-controlled units. Previously, a state Supreme Court ruling on a case out of Telluride had prevented governments from even broaching the subject.
“This is a request that would have been made 10 years ago, if the legal mechanism had been in place to do it,” said Meadows attorney Chad Lee. “This will provide us the flexibility to try to get something done out there.”
Some City Councilors were hesitant to amend the development agreement without first coming up with the guidelines for affordable rental units, a process that could take several months.
“I would like to see us refer this to staff to craft the guidelines first,” said Councilor Stephen Bershenyi, who opposed the Meadows amendment. “I don't want to start doing these things piecemeal, and this feels piecemeal to me.”
Other council members, however, said that whatever guidelines are established for the Meadows can be incorporated into the city's affordable housing regulations.
Mayor Bruce Christensen expressed frustration that the Meadows was denied the tax credits.
“I feel betrayed by CHFA, and I think they owe you, and us, an explanation for their decision,” the mayor said. “They denied a project that was ready to go, and threw away countless hours that we've worked on this.”
The Meadows initially won approval for the credits shortly after the project was approved five years ago. However, final zoning requirements could not be met within the specified time frame to take advantage of them.
jstroud@postindependent.com
However, the Meadows' most recent bid for federal Low Income Housing Tax Credits was denied by the Colorado Housing and Finance Authority. So developers Robert Macgregor and Mike Maple must now work with the city to come up with acceptable guidelines for the rent controls.
Council voted 6-1 directing city staff to work with Glenwood Meadows LLC on final language amending the Annexation and Development Agreement for the mixed-used Meadows project, as it relates to affordable housing.
The move may also lead to a broader policy change that recognizes rent-controlled apartments as a part of the city's community housing program, as long as developers are willing to consider the option.
In addition to the large retail commercial center at Glenwood Meadows, the project was approved in 2005 for up to 475 residential units. Of those, 300 can be rental apartments.
The city's community housing program requires 15 percent of all “for sale” market units to be deed-restricted and targeted at households earning 100 percent of the Area Median Income (AMI).
Under the amended agreement, though, the Meadows will be given a 70 percent credit toward an affordable market unit for each “long-term” (at least 40 years) income-restricted rental unit.
The Meadows would also still need to include at least 5 percent affordable “for sale” units, using the same deed and income restrictions.
Developers had requested a minimum of 3 percent, but with a 50 percent credit for rental units. Council, on recommendations from city planning staff as well as the city planning commission, stipulated 5 percent. Affordable rental units will also likely need to be targeted at those earning 80 percent of the AMI.
“We do feel that affordable rentals are important to the community,” city planner Jill Peterson said. “But affordable for-sale units are still more important, because it helps to create a more stable work force.”
Peterson offered that, because of the downturn in the housing market, it's likely that Glenwood Springs will see more rental projects in the near future.
And, the recent passage of HB 1017, which was signed into law by Gov. Bill Ritter earlier this summer, allows for local governments to negotiate with willing developers on the creation of rent-controlled units. Previously, a state Supreme Court ruling on a case out of Telluride had prevented governments from even broaching the subject.
“This is a request that would have been made 10 years ago, if the legal mechanism had been in place to do it,” said Meadows attorney Chad Lee. “This will provide us the flexibility to try to get something done out there.”
Some City Councilors were hesitant to amend the development agreement without first coming up with the guidelines for affordable rental units, a process that could take several months.
“I would like to see us refer this to staff to craft the guidelines first,” said Councilor Stephen Bershenyi, who opposed the Meadows amendment. “I don't want to start doing these things piecemeal, and this feels piecemeal to me.”
Other council members, however, said that whatever guidelines are established for the Meadows can be incorporated into the city's affordable housing regulations.
Mayor Bruce Christensen expressed frustration that the Meadows was denied the tax credits.
“I feel betrayed by CHFA, and I think they owe you, and us, an explanation for their decision,” the mayor said. “They denied a project that was ready to go, and threw away countless hours that we've worked on this.”
The Meadows initially won approval for the credits shortly after the project was approved five years ago. However, final zoning requirements could not be met within the specified time frame to take advantage of them.
jstroud@postindependent.com
