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AFFORDABLE HOUSING GUIDE FOR LOCAL OFFICIALS
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Colorado is an incredible state that people want to call home, yet our rapidly growing population is
presenting challenges for many who struggle to find affordable housing. Over 155,000 low-income
households are cost burdened, paying more than 50 percent of their income for a safe place to
live. As varied as the factors are that contribute to the state's lack of affordable housing, there is
no one solution to the problem. What may be achievable in an urban center might not work for a
rural community. The question becomes "where do you begin?"
The Department of Local Affairs (DOLA) has been working closely with local governments and
municipalities for over 50 years providing resources and assistance that help meet the needs of
all Coloradans. Through our Colorado Division of Housing (DOH), we administer state and federal
funding, offer rental assistance through local housing authorities and non -profits, and certify all
factory and/or manufactured structures built or shipped to Colorado.
To provide easy access to important housing resources, DOH has created this edition of the
Affordable Housing Guide far Local Officials; a one-stop compilation of funding, programs, housing
options, service providers, and terminology available to local communities in Colorado. We believe
this guide will be an invaluable tool.
DOLA is committed to strengthening Colorado communities. We look forward to working closely
with local and statewide agencies in our shared vision that everyone has the opportunity to have
a safe place to call home. The Affordable Housing Guide for Local Officials is a resource to help
achieve this goal.
Iry Halter
Executive Director
Division of Housing I Affordable Housing Guide for Local Officials
AFFORDABLE HOUSING GUIDE FOR LOCAL OFFICIALS
TABLE OF CONTENTS
AFFORDABLE HOUSING FOR CHANGING COMMUNITIES................1
HOUSING PROGRAMS AND FUNDING...............................................7
AUTHORITY OF LOCAL GOVERNMENT.............................................23
LAND USE POLICIES AND STRATEGIES.............................................29
REDUCING REGULATORY BARRIERS................................................39
CREATING SUCCESSFUL NEIGHBORHOODS.....................................45
Division of Housing I Affordable Housing Guide for Local Officials
AFFORDABLE HOUSING FOR CHANGING COMMUNITIES
AFFORDABLE HOUSING FOR
CHANGING COMMUNITIES
Local officials increasingly recognize that the
availability and cost of housing has a major
impact on their community. A diversified hous-
ing inventory supports strong economic devel-
opment, attracting new businesses, and ensures
that existing employers are able to recruit and
retain staff. Lack of affordable workforce hous-
ing can force employees to commute significant
distances, contributing to traffic congestion and
air pollution, and to an increased frequency of
employee absences.
To meet the challenges of a rapidly changing
population, Colorado needs to provide a
continuum of housing choices for households
with different incomes, and for those needing
housing accompanied by supportive services.
One of the goals of the Division of Housing
is to help Colorado renters become stable
homeowners. Still, many Coloradans lack the
income or resources to sustain homeownership.
A development strategy based on a solid
understanding of the housing market and
the needs of the community will provide
opportunities for young people and single
households, as well as ensuring the welfare of
the most vulnerable members of the population
with safe, decent, and affordable options for the
elderly and the disabled.
Division of Housing I Affordable Housing Guide for Local Officials Page 1
AFFORDABLE HOUSING FOR CHANGING COMMUNITIES
Page 2
CREATING AFFORDABLE
HOUSING
Developing and operating housing can be chal-
lenging. Developers, in the creation of market -
rate projects, willingly entertain risks, incentiv-
ized by the prospect of achieving a significant
return on investment. Projects that provide
workforce or affordable housing may be more
difficult with limited financial resources to make
deals work. It is here that local governments
play a critical role in helping their communities
achieve a balance of housing types for all resi-
dents in the community.
SUPPLY AND DEMAND
According to the National Association of Home
Builders (NAHB), the housing industry gener-
ally contributes between 15 and 18 percent of
the nation's gross domestic product (GDP). The
housing industry is vital to Colorado's state and
local economies, creating jobs and generating
taxes and wages.
As the economy continues to grow throughout
the Rocky Mountain region, the demand for
home sales is rising in metropolitan areas,
creating much tighter markets than are being
experienced in many rural areas. According
to the U.S. Department of Housing & Urban
Development (HUD), Colorado is experienc-
ing the fastest job growth in the region, with
much of that growth attributable to housing
construction.
JOBS/HOUSING BALANCE
When planning for future economic develop-
ment, or when responding to new proposals,
it is important for communities to take their
local housing market into consideration. A
community that has high housing costs but
mainly attracts jobs at less than $10 an hour
may find that it has a severe lack of affordable
housing for new employees. Pre -planning to
create affordable housing options for low- and
moderate -income households will help keep
new workers in safe, quality housing they can
TEN TIPS FOR LOCAL GOVERNMENTS
1. Understand your housing market.
2. Set a community housing plan.
3. Develop criteria or definitions of affordable housing.
4. Reduce the impact of regulations on affordable housing.
5. Contribute land to affordable housing.
6. Provide financial assistance.
i. Reduce, defer, off -set, or waive development fees for affordable housing.
8. Establish a land banking program to ensure the availability of land for future
development.
9. Allow exemptions for property tax or sales and use taxes.
10. Allow "fast tracking' of planning and zoning approval for affordable housing projects.
Division of Housing I Affordable Housing Guide for Focal Officials
afford. This strengthens communities, enabling
families to send their children to local schools
and support local business while cutting down
on traffic and congestion from commuters.
Analysis Of Housing Demand
1. Convert hourly wages to annual incomes
for each wage earner:
Hourly wage x 2080 (hours per year) =
Annual gross income
Example: $10/hrx 2080 = $20,800
2. To determine what an affordable
housing cost is at these income levels,
use the following calculation:
Annual gross income / 12 = monthly
income
Monthly income x.30 monthly housing
budget
2080 / 12 = $1,733 monthly income
$1,733 x.30 = $520 monthly housing
budget
This wage earner can afford to pay $520 per
month for all housing costs, including rent and
utilities. This analysis is based on a one -income
household, and assumes full time with benefits.
It is importantto note that many minimum -wage
earners are working part time with no benefits.
After determining what new employees can
afford for rental housing, communities need to
look at the prices and availability of units in the
local housing market.
AFFORDABLE HOUSING FOR CHANGING COMMUNITIES
According to the National Association of Home Builders
(NAHB), the estimated one-year impacts of building 100
rental units in a typical local area include:
• $11.7 million in local income.
• $32.2 million in taxes and other revenue for local
governments.
• 161 local jobs.
UNDERSTANDING YOUR
HOUSING MARKET
Housing Needs Assessments and Market Studies
are two distinct tools utilized to quantify the
scope and housing needs facing a community.
The two terms tend to be confused and
incorrectly substituted for each other.
A Housing Needs Assessment provides a general
analysis of the overall condition of the various
types of housing in a community and the need
for specific types of housing (homeownership,
rental, special needs housing). The Housing
Needs Assessment is important in determin-
ing the type and magnitude of housing issues
and needs in a community. In addition, it is an
important tool in narrowing the focus of possi-
ble housing proposals, and it provides an overall
guidance document.
A Market Study provides independent confir-
mation that a specific housing proposal will be
successful in the marketplace. Most lenders
require an independent Market Study to confirm
assumptions about your housing proposal.
The following criteria will be analyzed as part
of a market study: project location (shopping,
employment, neighborhood, school district and
proximityto schools); market area identification
Division of Housing I Affordable Housing Guide for Local Officials Page 3
AFFORDABLE HOUSING FOR CHANGING COMMUNITIES
(socioeconomic characteristics, physical and
political boundaries); demographic data (age,
household size, number of households); rela-
tionship to existing and anticipated comparable
developments; and a statistical analysis of the
number of households that will be available for
the proposed housing project.
According to the National Association of Home Builde,rr
the estimated one-year impacts of building 100
single-family homes in a typical local area include:
$28.7 million in local income.
$3.6 million in taxes and other revenue for local gov-
ernments.
• 394 local jobs.
MARKET ASSESSMENT
FRAMEWORK
STEP 1: Assembling the Team
The first step in the analysis of local housing
needs is assembling a team of individuals and
organizations to involve in the needs analy-
sis process. The goal of this team is to collect
and analyze housing related information and
to provide the results of this analysis to the
broader community.
STEP 2: Data Collection
Demographic information can be obtained from
census data maintained by the federal govern-
ment, and from the State Demography Office.
Additional housing data — on vacancy rates,
average rents, and foreclosures — is available
from government sources or the private sector.
A community might also want to conduct a
"windshield survey" to determine the quality of
available housing stock.
STEP 3: Compilation and Analysis
of the Results
The completed assessment is a preliminary
evaluation that should give the community a
general idea of the size and type of development
needed to meet the housing demand in the
target area. The next step in the process
is determining how to use the information
contained in the assessment. An action plan
should be drafted to list the steps necessary
to achieve the community's housing goals. The
purpose of an action plan is to clarify what
resources are required, and to formulate a
timeline for when specific tasks need to be
completed.
Page 4 Division of Housing I Affordable Housing Guide for Local Officials
AFFORDABLE HOUSING -VOjk
HOUSING BRIDGE
The Housing Bridge below is a needs assessment tool that may be used to help a community achieve
housing balance.
Low Income
c 60% AM i
Housing Bridge
Moderate Income
80 -120% AMI
80% 100% 110%
AMI AMI AMI
First Time Entry Level
Home Market
Market Buyers Housing/
Rentals I
Income
Restricted
Emergency /
Subsidized
/�a+c
Broad
Renter
Market
120% AMI I Above Moderate Income
120-150%AMI
150% AMI
Step Up\ Upper Moderate Income
Market 150-200%AMI
IF
200% AM 1
High End
Market
Used with permission of McCormick and Associates, Inc.
Division of Housing I Affordable Housing Guide for Local Officials Page 5
HOUSING PROGRAMS AND FUNDING
HOUSING PROGRAMS AND
FUNDING
While the challenges faced by each community
may be distinct, there are a wealth of resources
available from federal and state governments,
as well as from private enterprises. Depend-
ing on the condition of your existing housing
inventory, the state of the local economy, or
the availability of jobs, this guide will provide
an overview of the types of programming and
funding sources that can help you respond to
change and foster growth.
DOLA administers federal funds to construct
new housing and rehabilitate existing proper-
ties, as well as voucher programs for low- and
moderate -income renters. DOLA works in
partnership with other government agencies
and private enterprises to provide opportuni-
ties for first-time homeowners, community
service organizations, and affordable housing
developers.
The programs and organizations described
here can guide local jurisdictions to tailor their
regulations and policies to promote growth,
attracting business to generate income, develop
infrastructure, and provide for the social needs
of their communities.
Division of Housing I Affordable Housing Guide for Local Officials Page 7
HOUSING PROGRAMS AND FUNDING
GOVERNMENT AGENCIES
The U.S. Department Of Housing and Urban
Development (HUD)
Housing cost increases are of concern to HUD,
as both production costs and the need for rental
assistance vouchers escalate. HUD is focused
on advancing policies that create opportunity
for people across the country, to create a solid
foundation for the next 50 years. Their mission
is to promote homeownership, support commu-
nity development, and increase access to afford-
able housing, free from discrimination.
The U.S. Department of Agriculture (USDA)
Rural Development (RD) funds a variety of
programs that promote rural homeownership,
including self-help housing; housing repair and
rehabilitation; and rural housing direct loans.
RD also assists with the development of multi-
family rental housing, including farm labor
housing; rural rental housing; rural loan guaran-
tee programs; housing preservation; and rental
assistance programs. Additionally, RD provides
opportunities in community development and
empowerment, business and cooperatives; and
community facilities.
Federal Home Loan Banks (FHLB)
FHLBs can assist affordable housing projects
with loans made at a lower rate than those avail-
able through the commercial lending market.
These Affordable housing Program (AHP) loans
are often the first piece of funding committed
to a project, and are available for purchase,
construction, rehabilitation or refinancing of
very low- to moderate -income rental housing.
For rental projects, at least 20 percent of the
units must be occupied by and affordable to
households at or below 50 percent of the Area
Median Income (AMI). Funds may also be used
for additional units that target households at or
below 80 percent AMI. For ownership housing,
households must earn less than 80 percent AMI.
Another product of the FHLB system is the
Community Investment Program (CIP). Through
this resource, banks and thrifts that are member
banks may borrow advances at a discounted
interest rate or request letters of credit from
their regional FHLB. Lenders may then use
these advances to fund pre -development costs,
purchasing, construction, rehabilitation, or refi-
nancing of housing that will serve households
earning up to 115 percent AMI. It may include
rental units if at least 51 percent of those units
serve income -eligible households. Manufac-
tured housing subdivisions or parks may also
be eligible under the above criteria. The Federal
Home Loan Bank of Topeka provides these
services in Colorado.
Colorado State Housing Board
The Colorado State Housing Board was created
in 1970 to advise the General Assembly, the
Governor, and the Division of Housing on
Colorado housing needs. The seven -member
State Housing Board reviews financing requests
and adopts regulations governing factory -
built structures and multi -family housing in
counties with no building codes. The Board
also sponsors research reports for use by
the public, legislators, and the Governor. The
Board generally meets on the second Tuesday
of each month at 1:00 p.m. at 1313 Sherman 5t.,
Room 318, Denver, CO 80203. Please .° E
website for updates or changes to the schedule.
Page 8 Division of Housing I Affordable Housing Guide for Local Officials
Colorado Division of Housing (DOH)
The Colorado Division of Housing is located
within the state Department of Local Affairs,
and provides financial and technical support
to organizations throughout the state that are
committed to serving Colorado's most vulner-
able citizens and communities. The mission is to
ensure that all Coloradans have access to safe,
affordable housing.
DOH offers funding opportunities for reha-
bilitation and new construction of housing to
public housing authorities, local governments,
and both non-profit and private developers. It
supports, licenses, and regulates the factory -
built construction industry, including the provi-
sion of building department services where
none exist, and the adoption and enforcement
of building codes for factory -built structures.
In concert with local housing authorities and
non-profit service organizations, DOH provides
rental subsidies and down payment assistance
to bridge the gap between household income
and the cost of living by creating a safety netfor
those most at -risk with funding for senior and
special needs housing and the homeless office.
DOH provides gap funding for the acquisition,
APPLICATION CYCLES
HOUSING PROGRAMS AND FUNDING
rehabilitation, and new construction of afford-
able housing.
DOH provides grants and loans from both state
and federal funds. Before applying, please
contact your regional Hk.insJQ
i who will help you in the planning
process and direct your program or project to
the right funding source based on timing, avail-
ability of funds and Division funding priorities.
GRANT AND LOAN PROGRAMS
ADMINISTERED BY THE
DIVISION OF HOUSING
HOME Investment Partnerships
HOME dollars provide competitive funding
to local government, non -profits and private
developers.
There are four basic program types:
• Homebuyer assistance.
• Rehabilitation for owner -occupants.
• Rental housing acquisition, rehabilitation
and construction.
• Tenant -based rental assistance.
All application cycles are competitive. DOH accepts applications by the 1 st of every month.
Monthly: Rental acquisition, rehabilitation, and new construction.
July 1st: Single-family Owner -occupied (SFOO) housing rehabilitation programs
September 1st: Community Housing Development Organization (CHDO) operating funds.
November 1st: Down payment assistance (DPA) programs, including Homeownership
subdivision development.
Division of Housing j Affordable Housing Guide for Local Officials page
HOME Community Housing Development
Organization (CHDO): The CHDO designation
was created to carry out the overall goals of the
HOME program. A CHDO is a private, non-profit,
community-based service organization whose
primary purpose is to provide and develop
affordable housing for the community it serves.
Certified CHDOs receive certification from a
Participating Jurisdiction (PJ) indicating that they
meet certain HOME Program requirements and
therefore are eligible for HOME funding.
If an organization becomes a certified
CHDO, it is eligible to take advantage of
the HOME funds set aside just for CHDOs,
as well as additional special technical
assistance from HUD.
CHDO set-aside funds provide equity
for community-based organizations to
undertake projects, build their capacity to
serve a broad range of affordable housing
needs, and provide guaranteed resources
for affordable housing development.
CHDOs may:
• Serve as owners, developers, and spon-
sors of projects undertaken with funds
from a PJ`s required 15 percent set-aside
for CHDOs.
• Receive special assistance — such as
predevelopment loans, technical assis-
tance, or operating funds — that is not
available to other types of organizations.
• Perform certain services as contractors
to PJs.
Contract with PJs in the same ways as
other non-profit subrecipients to do
acquisition and/or rehabilitation of
rental property; new construction of
rental housing, acquisition and/or reha-
bilitation of homebuyer property; new
construction of homebuyer property,
direct financial assistance to purchasers
of HOME -assisted housing sponsored or
developed by a CHDO with HOME funds.
Community Development Block Grant
(CDBG)
CDBG Entitlement Communities receive direct
funding. Non -metropolitan, non -entitlement
areas apply to the state for use of funds on a
project -by -project basis. State programs can
only fund "non -entitlement" communities.
Principle eligible activities:
Affordable housing.
• Neighborhood revitalization.
• Economic development.
• Improved community facilities.
• infrastructure improvements.
Community Development Block Grant -
Disaster Recovery (CDBG-DR)
DOH works with local communities to ensure
that citizens who have been displaced from their
homes can access resources that help them
rebuild, relocate, and find permanent housing.
The CDBG-DR housing programs are adminis-
tered through partnerships with local govern-
ments, housing authorities, communities, and
volunteer -driven non-profit organizations, and
are for use by those recovering from specific
Presidentially declared natural disasters.
Neighborhood Stabilization Program (NSP)
DOH administers federal NSP dollars to offset
the negative impact of foreclosures on neigh-
borhoods. Funds are directed to areas of
Page 10 Division of Housing I Affordable Housing Guide for Local Officials
greatest need to help stabilize property values
and revitalize communities.
Private Activity Bonds (PAB)
The PAB program funds privately developed
projects. The bonds are tax-exempt and the
amount of the bonds issued are limited by the
IRS based on population. Underwriters use
investor money from the sale of the bonds
called "bond proceeds," to make a loan to a proj-
ect. The project then pays back the loan and the
investors are repaid, plus interest.
Fifty percent of the state PAB cap is allocated
directly to state authorities, and fifty percent is
allocated to local governments whose popula-
tions warrant allocations of one million dollars
or more. These allocations are available to
qualifying local governments from January 1 to
September 15 of each year and may be used for
the following;
• Multi -family housing projects.
HOUSING PROGRAMS AND FUNDING
• Single-family mortgage revenue bonds.
Qualified residential rental projects.
• Qualified redevelopment projects.
• Manufacturing.
• Water, sewer and solid waste disposal.
• Hazardous waste facilities.
Any portion of a direct allocation not used by a
state agency or local government to issue bonds
for a carry -forward purpose or for a mortgage
credit certificate election by September 15
reverts to the Statewide Balance for allocation
by the end of the year.
Revolving Loan Funds
DOH provides grant funds to regional hous-
ing organizations to provide Single Family
Owner -Occupied repair loans (SFOO) and Down
Payment Assistance loans (DPA) to low- and
moderate -income families. These loans are set
at a low interest rate and can be amortized or
deferred depending upon the need of the family.
When loan repayment is received, the housing
Division of Housing I Affordable Housing Guide for Local Officials Page 11
HOUSING PROGRAMS AND FUNDING
agency places the payment into a revolving loan Develop and sustain a network of local
fund. These funds are then recycled back into contractors to complete housing repairs
the community to provide additional housing and renovations.
rehabilitation and down payment assistance.
Single Family Owner Occupied (SFOO)
Rehabilitation
The primary goals of the SFOO Rehabilitation
program are to:
Preserve, enhance, and maintain afford-
able housing stock through repair and
renovation within the community.
Protect the health and safety of the occu-
pants through the correction of housing
hazards.
Assist homeowners in improving the
condition of their homes.
Allow homeowners to stay in their homes.
Create and maintain a regional revolving
loan fund to assist with future housing
rehabilitation projects.
T
•: `
Down Payment Assistance
The primary goals of the down payment assis-
tance program are to:
Provide opportunities for low -and moder-
ate -income Coloradans to purchase their
own homes.
• Increase the number of homeowners
in the regional housing organization's
service area.
• Create and maintain a regional revolving
loan fund to assist future families with
down payment assistance.
• Enhance neighborhoods and communities.
• Provide stability for families and achieve
lower foreclosure rates by requiring pre -
homeownership counseling.
IIIii � III
r�
Page 12 Division of Housing I Affordable Housing Guide for Local Officials
Annual follow-up with families is highly recom-
mended, as well as the provision of foreclosure
counseling, if needed.
Housing Development Grant Funds (HDG)
The HDG program is a competitive grant that
provides funds for acquisition, rehabilitation
and new construction. The fund was created
by the Colorado State Treasury and consists
of monies allocated to the Colorado Afford-
able Housing Construction Grants Fund by
the General Assembly. HDG funds improve,
preserve, or expand the supply of affordable
housing; finance foreclosure prevention activi-
ties in Colorado and acquisition of housing and
economic data necessary to advise the State
Housing Board on local housing conditions.
Housing Development Loan Funds (HDLF)
The HDLF program was originally created to
meet federal matching funds requirements and
now includes funds for development, redevel-
opment, or rehabilitation of low- or moderate -
income housing. Loans provided through HDLF
require collateral.
Colorado Housing Investment Funds (CHIF)
The CHIF program was seeded with $36 million
of custodial funds through the Colorado Attor-
ney General's office with 2012 Mortgage Servic-
ing Settlement funds. The CHIF funds can be
used two ways:
HOUSING PROGRAMS AND FUNDING
2. Short-term loan guarantees for new
construction and rehabilitation. Eligible
borrowers include non-profit, for-profit,
and Housing Authority developers.
HOUSING VOUCHER
PROGRAMS ADMINISTERED BY
THE DIVISION OF HOUSING
Housing Choice Voucher Program (HCV)
The HCV program, commonly referred to as
Section 8, is the federal government's major
program for assisting very low-income families,
the elderly, and the disabled to afford decent,
safe, and sanitary housing in the private market.
Since housing assistance is provided on behalf
of the family or individual, participants are able
to find their own housing, including single-family
homes, townhouses, and apartments. Each year,
DOH houses more than 6,000 families statewide
in its HCV program, serving Colorado's most
vulnerable citizens by providing preference to
individuals with disabilities (over 80 percent of
DOH vouchers serve persons with disabilities),
individuals experiencing homelessness, victims
of domestic violence, and individuals exiting
institutional settings.
Veterans Affairs Supportive Housing
Program (VASH)
The VASH program is a national initiative spon-
sored by HUD and the U.S. Department of Veter-
ans Affairs (VA). The goal of the VASH program is
to provide HCV rental assistance and intensive
case management and clinical services to enable
1. Short-term, low-interest loans to bridge homeless veterans access to permanent hous-
the long-term permanent financing ing while leading healthy, productive lives in the
sources (a portion of loan may remain in community.
the project as permanent debt).
Division of Housing I Affordable Housing Guide for Local Officials Page 13
HOUSING PROGRAMS AND FUNDING
Family Unification Program (FUP)
DOLA partners with the Colorado Division of
Child Welfare and local service providers to
administer this unique housing choice voucher
program to assist homeless youth aging out of
the foster care system (ages 18 through 21) and
families where available housing is an obstacle
to full custody of their children.
Permanent Supportive Housing (PSH)
Voucher
The PSH program (formerly known as Shelter +
Care) serves chronically homeless persons with
disabilities, prioritizing persons with severe
mental illness. The program operates in part-
nership with community mental health centers
across the state, and is designed for individuals
who need services to remain stably housed.
Nearly 60 percent of participants have been in
the program for 5 years or more.
Colorado Second Chance Housing and
Reentry Program (C-SCHARP)
C-SCHARP provides 24 months of rental assis-
tance in combination with intensive behavioral
health services for dually diagnosed parolees
exiting the state prison system. The program
will serve 60 participants annually with recent
expansion efforts that will bring additional slots
to the Colorado Springs and Denver Metro
areas. The program is a collaboration between
DOH, the Department of Corrections, the Office
of Behavioral Health, and Community Mental
Health Centers across the state. Referrals for
the program come directly from the Depart-
ment of Corrections.
Section 811 Project Rental Assistance
Program
DOH receives funding from HUD through the
Section 811 Supportive Housing for Persons
with Disabilities Project Rental Assistance (PRA)
Program. This program assists extremely low-
income people with significant and long-term
disabilities to live independently in the commu-
nity by providing affordable housing linked with
voluntary services and supports. PRA funds
provide project -based rental assistance; it is not
a financing source for housing construction or
acquisition/rehabilitation.
Mental Health (MH) Vouchers
The MH voucher program was created to assist
homeless persons transition smoothly out of
state mental health hospitals into permanent
housing. DOH administers housing vouchers
for approximately 125 persons statewide in
partnership with community mental health
centers and sees a less than 10 percent turnover
annually.
Colorado Choice Transition (CCT) Vouchers
The CCT voucher program provides housing
vouchers for persons with disabilities who
require long-term services and support to tran-
sition out of nursing facilities. These vouchers
help solve systemic barriers to clients moving
into a least -restrictive community living environ-
ment, to improve their health outcomes. This
program also helps people with disabilities who
are at risk of being placed in an institution stay
in their communities.
Page 14 Division of Housing I Affordable Housing Guide for Local Officials
INITIATIVES ADMINISTERED BY
THE DIVISION OF HOUSING
HOMELESS PROGRAMS
The Division of Housing is working in partner-
ship with local, state, and federal stakeholders,
both private and public, to build, promote, and
connect Colorado's most vulnerable citizens with
housing and services. The Homeless Programs
staff works to achieve the goal of making home-
lessness rare, brief, and nonrecurring.
The following programs
and are focused solely
homelessness:
HOUSING PROGRAMS AND FUNDING
Next Step Program
Homeless families with school -aged children
receive rental assistance allowing families to
secure housing and choice of where to live
within their community: close to jobs, family,
and schools of choice. Maintaining school atten-
dance in a specific school can improve academic
success and reduce long term social costs.
Parents receive job counseling and training and
all family members receive supportive services.
are administered Emergency Solutions Grants (ESG) Program
:)n people facing
Office of Homeless Youth Services (OHYS)
Created by the Colorado State Legislature
through the Homeless Youth Services Act
(C.R.S. 26-5.9), the OHYS is a vehicle through
which homeless youth services statewide are
improved by coordinating current services and
facilitating interagency collaboration. The OHYS
identifies gaps, removes barriers, and improves
access and information sharing. In order to
carry out this legislative intent, the OHYS, in
conjunction with the Advisory Committee on
Homeless Youth, develops and implements the
Colorado Homeless Youth Action Plan annually.
This statewide plan contains many key preven-
tion and intervention strategies designed to
collaboratively and comprehensively address
the issue of youth homelessness in Colorado.
These grants are funded by HUD to allow
states, local governments and non -profits assist
homeless persons by providing a complete
continuum of supportive services at emergency
shelters and transitional housing programs. The
program also assists in the prevention of home-
lessness when households experience a sudden
but temporary loss of income that results in an
inability to pay rent, mortgage, or utilities.
Eligible Activities:
• Shelter operating expenses.
• Essential services.
• Homeless prevention activities.
Housing Opportunities for Persons with
AIDS (HOPWA)
The HOPWA program is funded by HUD and
provides states and localities with resources
and incentives to create long-term comprehen-
sive strategies for meeting the housing needs
of low-income persons living with HIWAIDS.
These strategies may include Tenant Based
Rental Assistance (TBRA), Housing Development
Division of Housing I Affordable Housing Guide for Local Officials Page 15
HOUSING PROGRAMS AND FUNDING
activities, Supportive Services, and/or Short -
Term Rent, Mortgage, or Utility Assistance
(STRMU).
Homeless Prevention Activities Program
(HPAP)
Funding for HPAP is made available through the
state income tax check -off, which allows Colora-
do residents to make voluntary contributions on
their state income tax return. DOH administers
HPAP annually through a competitive process to
non-profit organizations throughout the state.
Services provided include but are not limited
to direct payments to landlords and/or utility
companies, and case management. Approxi-
mately 500 households are served annually
through HPAP
Fort Lyon Supportive Residential
Community
Fort Lyon provides recovery -oriented transition-
al housing to homeless individuals. The program
combines housing with counseling, educa-
tional, vocational, and employment services
for approximately 250 homeless and formerly
homeless persons from across Colorado, with
an emphasis on serving homeless veterans.
The Community is located at the former Fort
Lyon Veterans Affairs Hospital in Bent County,
Colorado, and is the outcome of a vision to
repurpose the facility and to offer a supportive
environment to homeless individuals across
the state. Residents fully engage in the overall
operations of the campus including food services,
facilities maintenance, grounds maintenance,
Page 16 Division of Housing I Affordable Housing Guide for Local Officials
housekeeping, and wastewater management—in
conjunction with their daily participation in peer
support groups. Educational and vocational
opportunities are available through local colleg-
es. Residents are also encouraged to participate
in creative programs that help build support and
community while assisting with recovery,
The ultimate goal of this program is for resi-
dents to recover from homelessness, find long-
term housing stability, and reintegrate into their
community of choice.
COMMUNITY LIVING COLORADO (CLC)
DOH's CLC staff seeks to help people with disabili-
ties either move out of institutions or avoid enter-
ing them. DOH provides opportunities for people
with disabilities to live independently in integrated
settings in their communities, with support servic-
es available on an as -needed basis. To that end,
the CLC staff, by an interagency agreement with
the Department of Health Care Policy and Financ-
ing (HCPF), administers the CCT Voucher Program
(described above), and the Medicaid Home Modi-
fications program. People with disabilities who
are eligible for Medicaid Home and Community
Based waiver services can use the home modi-
fication benefit to make their homes accessible,
preventing unnecessary institutionalization. The
agreement with HCPF is aimed at improving the
effectiveness of the home modification benefit
through DOH oversight, inspections, and input
on improvements to program design.
HOUSING TECHNOLOGY AND STANDARDS
DOH's Housing Technology and Standards staff
supports, licenses, and regulates the residen-
tial and non-residential factory -built industry
in Colorado. We ensure the health and safety
of Colorado residents living in manufactured
HOUSING PROGRAMS AND FUNDING
homes by providing training and technical assis-
tance for the industry, and through plan review
and inspection services.
HUD Code Manufactured Housing
A HUD Code Manufactured Home is a trans-
portable home built after dune 15, 1976, of at
least 320 square feet, that is constructed to the
nationally recognized HUD Manufactured Home
Construction and Safety Standards (HUD 3280).
It may be used as a dwelling unit with or with-
out a permanent foundation when connected
to required utilities.
HUD Code Manufactured Homes always
preempt local building codes and must be
accepted into the community for placement.
Local governments may not impose additional
building code requirements in regards to the
construction of the home. The local govern-
ment may require additional on-site mitigation
for snow loads and wind loads. Repairs, reno-
vations, and additions to HUD Code Manufac-
tured Homes are under the local government's
authority.
DOH has participated in the HUD Code Manu-
factured Housing Program since 1976 as a HUD
approved in -plant construction inspection agency
(IPIA) for all homes built in Colorado in compli-
ance to the HUD Construction and Safety Stan-
dards and as the State Administrative Agency
(SAA) that is charged with resolving consumer
complaints in regards to HUD code homes.
Factory -Built Structures and Modular
Homes
All International Residential Code (IRC) Modular
Homes and Commercial Factory -Built Struc-
tures manufactured or sold in Colorado are
Division of Housing I Affordable Housing Guide for Local Officials Page 17
HOUSING PROGRAMS AND FUNDING
regulated by DOH through the administration
and enforcement of the construction standards
adopted by the Colorado State Housing Board.
DOH ensures that these structures are prop-
erly designed and constructed for local climate
conditions and meet the adopted construction
standards. We work with local building depart-
ments to coordinate the on-site inspection
process. In most cases, DOH is responsible for
the regulation of all factory -completed construc-
tion, while the local building department regu-
lates on-site construction activity, including
the home foundation and on-site constructed
garages and other improvements. The Housing
Technology and Standards staff is the point of
contact for local building departments for all
technical concerns, including the resolution of
consumer complaints.
Manufactured Housing Installation
Program (MHIP)
DOH regulates the installation of all HUD Code
and IRC Modular Homes In Colorado through
the Manufactured Housing Installation
Program (MHIP), which provides training and
on-site home installation inspection services.
These inspections are designed to confirm that
the home has been installed to the standards
adopted by the State. Local governments are
encouraged to register as MHIP Participating
Jurisdictions, which allows them to act as the
exclusive MHIP inspection agency for homes
being placed in their communities.
Dealer Registration Program
Consumer protection against unethical or
unlawful manufactured housing sales practices
is provided through the Dealer Registration
Program. All dealers that sell used or new manu-
factured homes in Colorado are required to be
Page 18 Division of Housing I Affordable Housing Guide for Local Officials
registered and bonded. Local governments are
encouraged to forward any consumer concerns
in regards to HUD code or Factory-Built/Modular
Homes to DOH.
Manufactured Housing Parks
There are over 1,300 manufactured housing
parks in Colorado, which play an important
role in the overall supply of housing within a
community. Local governments interested
in fostering the appropriate preservation or
creation of new parks may want to consider
the adoption of zoning and planning practice
changes that support manufactured housing
parks, and the creation of programs that assist
in park infrastructure and individual home
renovations.
Tiny Homes
There is no legal definition of a "tiny home.'
The term can refer to anything from a 100
square foot miniature cabin on wheels to a
house smaller than about 800 square feet. A
"tiny home" is either considered a recreational
vehicle (RV) or a dwelling unit depending on
its defining characteristics. To be considered a
dwelling unit, the house must be constructed for
year-round occupancy (IRC code compliant) and
connected to water, sewer, and electric utilities.
Tiny homes in this case will be subject to locally
adopted building codes, as well as zoning and
subdivision codes. 'Tiny Homes" constructed in
a factory to the IRC code are regulated by DOH.
HOUSING PROGRAMS AND FUNDING
ADDITIONAL HOUSING
RESOURCES
Colorado Housing and Finance
Authority (CHFA)
CHFA works throughout Colorado to increase
the availability of affordable, decent, and acces-
sible housing for lower-income Coloradans, and
to strengthen the state's economy by providing
financial assistance to businesses.
Participating lenders and community partners
help CHFA deploy their resources statewide.
Together with their partners, CHFA has invested
more than $12.2 billion in Colorado's economy.
CHFA's work revitalizes neighborhoods and
creates jobs. They believe everyone in Colorado
should have the opportunity for housing stabil-
ity and economic prosperity.
Low Income Housing Tax Credits (LIHTC)
The LIHTC is a credit against regular federal
income tax liability for investments in acquisi-
tion and rehab or construction of qualified
rent -restricted, low-income rental housing.
Regulations require that projects set aside a
certain percentage of units for low income resi-
dents. Investors then take credits on an annual
basis over a 15 -year period, beginning with
the year that the project is placed in service. A
"compliance period" dictates strict occupancy
regulations.
Non-profit and for-profit developers apply
to CHFA, the State's allocating agency,
which then evaluates applications based on
federal guidelines and criteria identified in
its qualified allocation plan. For more infor-
mation about LIHTC, visit CHFA's website.
Division of Housing I Affordable Housing Guide for Local Officials Page 1
HOUSING PROGRAMS AND FUNDING
Public Housing Authorities (PHAs)
Public Housing Authorities were created by
the Housing Act of 1937 to develop, own, and
manage federal public housing under contract
with HUD. PHAs are overseen by a Board of
Commissioners or Directors who are either
elected or appointed by the local jurisdiction.
PHAs administer federal public housing units as
well as Housing Choice Vouchers.
Federal public housing is developed, owned, and
operated by PHAs. HUD provides an operating
subsidy to pay for the costs of operating and
managing the housing not covered by tenant
rents. Public housing tenants typically pay a
percentage (usually 30 percent) of their income
as rent to the PHA.
In addition, the Colorado Department of Local
Affairs' Division of Housing and the Colorado
Housing and Finance Authority are PHAs that
assist communities in accessing federal housing
resources, including Housing Choice Vouchers.
HUD maintains a complete list of PHAs in
Colorado.
Colorado Housing Counseling Coalition
(CHCC)
CHCC promotes affordable housing for low -
and moderate -income families through hous-
ing counseling and the sharing of knowledge,
resources and counseling techniques among
members.
CHCC member agencies help people improve
their housing conditions and meet the respon-
sibilities of homeownership and tenancy.
Among the many services the member agencies
provide are: pre -purchase counseling, foreclo-
sure prevention counseling, housing consumer
education, debt management, and reverse
equity mortgage counseling.
Many agencies, including DOLA, sponsor Colo-
rado's Foreclosure Prevention Hotline, 1 -877-
601 -HOPE or www.coloradohousingconnects
Homebuyer Readiness
Becoming a homebuyer is a huge step for most
families, and readiness can be determined by
several factors, including the following:
• Credit history — A family should review
their credit report, improve payment
patterns and make corrections or updates.
• Savings — A household savings account
helps establish the discipline required to
reduce debt.
• Income and employment — Steady
income patterns promote successful
• Homebuyer workshops — Families
should attend a homebuyer workshop
to understand the process of buying
and maintaining a home. The Colorado
Housing and Finance Authority (CHFA)
provides a homebuyer education curricu-
lum adopted by many agencies offering
homebuyer workshops.
CHFA
EHomeAmerica is an on-line homebuyer educa-
tion course.
HUD offers a lost of HUD -approved housing
counseling agencies serving Colorado.
Page 20 Division of Housing j Affordable Housing Guide for Local Officials
COLO RADOHOUSINGSEARCH.com
Colorado Housing Search is jointly sponsored
by the Colorado Housing and Finance Author-
ity (CHFA) and DOH as a public service to the
residents of Colorado. The site was developed
through the collaboration of multiple agencies
with a common stake in developing, financing,
and preserving affordable housing throughout
Colorado. Its goals are to:
Help Coloradans find and maintain qual-
ity, safe and decent places to live.
• Provide a clearinghouse for affordable
housing and related services.
• Facilitate operating efficiencies in
the affordable housing market.
Denver Metro Fair Housing Center (DMFHC)
DMHFC is a non-profit organization dedicated
to eliminating housing discrimination and to
promote housing choice for all people through
comprehensive education, advocacy, and
enforcement of fair housing law.
Colorado Civil Rights Division (CORD)
The CCRD is charged with enforcing the State's
anti -discrimination laws, including housing laws.
CCRD works to eliminate and prevent discrimi-
nation in housing, as well as in employment and
public accommodation, through investigation,
education, mediation, and enforcement.
New Market Tax Credits (NMTC)
NMTCs permit individuals and corporate taxpay-
ers to receive a credit against federal income
taxes for making qualified equity investments
HOUSING PROGRAMS AND FUNDING
in Community Development Entities (CDEs). The
credits total 39 percent of the cost of the invest-
ment and are claimed during a seven-year credit
allowance period.
A substantial amount of the investment must be
used by the CDE in support of business activities
in low-income communities. This is not a fund-
ing source for housing, although it can support
commercial and/or retail uses associated with
housing or care facilities.
Private Debt Sources
Because tax credits and grants are generally
not able to fully finance an affordable housing
project, private debt sources are usually needed
as well. Options include conventional financing
from traditional banking institutions together
with tax credits and gap financing. Fannie Mae
and Freddie Mac are two Government -Spon-
sored Enterprises (GSEs) that help by purchas-
ing investment -quality mortgages from conven-
tional lenders, packaging the mortgages as
securities, and selling them on the open market,
Contact your lender for additional information.
Division of Housing I Affordable Housing Guide for Local Officials page 21
AUTHORITY OF LOCAL GOVERNMENT
AUTHORITY OF LOCAL
GOVERNMENT
In Colorado, local governments are empowered
to initiate a number of actions that can affectthe
cost and supply of housing in their communities.
These actions, which may require a direct or
indirect role for local government, encompass
land use regulations, building code and design
standards, and creation of special -use authori-
ties, which can leverage additional resources for
developing affordable housing.
States maintain the right under the U.S. Consti-
tution to regulate land use, health, and public
safety issues. in Colorado, state statutes relin-
quish that control to local governments who are
empowered with the authorityfor adoption and
enforcement of pertinent codes, standards and
policies. Accordingly, critical steps in housing
development such as zoning, building codes
and infrastructure requirements all fall within
the discretionary control of Colorado localities.
This chapter is intended only to raise aware-
ness of local legal authority. Specific strategies
are found in the Land Use Policies and Strategies
chapter.
Division of Housing I Affordable Housing Guide for Local Officials Page 23
AUTHORITY OF LOCAL GOVERNMENT
DISCRETIONARY CONTROL OF
COLORADO LOCALITIES
Land Use Regulations are laws that set a juris-
diction's land use and development standards
in regard to a wide variety of issues, including
subdivision, annexation, and allowable land
uses. While regulations are an integral part of
a community's planning process, regulations
may also substantially increase time and costs
required to build affordable housing.
Zoning Standards are used by local governments
as a gauge for land use decisions and to help
establish areas of uniform development. These
standards, however, may inhibit a jurisdiction
from providing a range of housing that meets
its housing needs.
Building Codes and Standards are adopted by
local governments to safeguard health, safety,
property, and public welfare of a community.
Infrastructure including water, wastewater,
sewer, streets, roads, parks, and schools falls
under local control. Local officials can proac-
tively address environmental issues while
also containing the cost of housing in their
communities.
PUBLIC HOUSING AUTHORITIES
A major benefit of housing authorities is the
ability to use additional financial resources to
devote to critical community projects in light
of restrictions imposed on local governments
by the TABOR Amendment. After enactment of
TABOR in 1992, local government growth was
restrained by requiring voter approval for any
increases in revenues, spending, and additional
debt. Housing authorities can be considered
enterprises, rather than local districts, as long
as their annual grant revenue from state and
local governments is less than ten percent
of their total budget. As government-owned
businesses authorized to issue their own
revenue bonds, housing authorities and urban
renewal authorities can make expenditures that
won't be counted against the local or county
government limits imposed by TABOR. Local
interpretation varies, however, as it relates to
TABOR restrictions.
Creating a Housing Authority
A Housing Authority (HA) can be created at
the municipal or county level. The process is
initiated when a petition sponsored by at least
twenty-five residents of a community is filed
with the local clerk indicating the need for such
an authority. After concluding at a community
hearing that an HA is needed, a resolution is
adopted and forwarded to the mayor's or county
clerk's office. Upon filing a signed certificate
by the newly appointed HA hoard with DOLA,
the municipal or county governing board can
act as the board of directors of the authority,
or appoint a board of housing commissioners.
These officials and their successors are
constituted as a housing authority, which is a
body corporate and politic. Once established,
an HA may employ a secretary who will act as
executive director.
Powers of a Housing Authority
Determine whether housing conditions
are unsafe, unsanitary, or substandard
and investigate methods for improving
such conditions.
Study and make recommendations on
plans addressing the clearing, re -plan-
ning, or reconstruction where unsafe,
unsanitary, or substandard conditions
exist. Provide housing accommodations
for low-income persons In cooperation
with the local jurisdiction.
Page 24 Division of Housing I Affordable Housing Guide for Local Officials
Prepare, implement, and operate
projects including the construction,
reconstruction, improvement, alteration,
or repair of any project,
Assume by purchase, lease, or other
means any project undertaken by any
government or by the city or county.
Act as an agent for the federal govern-
ment in connection with the acquisition,
construction, operation, or management
of a project.
Arrange with the city orwith a government
for the furnishing, planning, re -planning,
opening, or closing of streets, roads,
roadways, alleys, property options,
property rights, or for the furnishing of
property services in connection with a
project.
Lease or rent dwellings, accommodations,
lands, buildings, structures, or facilities
included in any project, and establish and
AUTHORITY OF LOCAL GOVERNMENT
properly to any person, firm, corporation,
the city or county, or government.
• Receive exemption from the payment of
property taxes or special assessments to
the state or any subdivision of the state.
BENEFITS OF HOUSING AUTHORITIES:
1. Ability to apply for loans, grants, and contributions
from government or other sources designed for spe-
cific authority purposes.
2. Ability to acquire property by purchase, lease, opera-
tions, eminent domain, gift, grant, bequest or devise
from any person, firm, corporation or city govern-
ment.
3. Ability to borrow money on terms.
Multijurisdictional Housing Authorities
revise associated rents or charges. Any combination of Colorado cities, towns,
Access buildings or property to conduct or counties may, by contract with each other,
investigations or to make surveys. establish a separate governmental entity to
Sell, exchange, transfer, assign, or pledge be known as a multi jurisdictional housing
authority.
Division of Housing I Affordable Housing Guide for Local Officials Page 25
AUTHORITY OF LOCAL GOVERNMENT
Powers of a Multijurisdictional Housing
Authority
• Plan, finance, acquire, construct/
reconstruct/repair, maintain, manage,
and operate housing projects and
programs pursuant to a multi -
jurisdictional agreement.
• Plan, finance, acquire, construct/recon-
struct/repair, maintain, manage, and
operate housing projects and programs
for employees of employers located
within the jurisdiction of the authority.
Make/enter into contracts with any
person, including contracts with state or
federal agencies, private enterprises, and
non-profit organizations also involved
in providing housing, irrespective of
whether such agencies are parties to the
contract establishing the authority.
Employ agents and employees.
• Cooperate with state and federal govern-
ments in all respects concerning the
financing of such housing projects and
programs.
• Acquire, hold, lease (as lessor or lessee),
sell, or otherwise dispose of any real or
personal property, commodity, or service.
• Condemn property for public use, if
such property is not owned by any
governmental entity or any public utility,
pursuant to state authority.
Receive exemption of property taxes to
the state or subdivision of the state for
properties owned by the housing author-
ity for renters at 50 percent or below
median income.
Per Statute 29-1-204.5(7.5) a multi-jurls-
dictional housing authority may levy, in
all of the area within the boundaries of
the authority, a sales or use tax, or both,
at a rate not to exceed one percent,
consistent with sales or use tax levied by
the state. The tax imposed is in addition
to any other sales or use tax imposed
pursuant to law and exempt from the
limitation imposed by section 29-2-108.
The sales tax will be collected by the
Department of Revenue, and must be
approved by the eligible voters.
Levy an ad valorem property tax (not to
exceed five mills), a sales and/or use tax
(the rate not to exceed one percent.
• Establish development impact fees so
long as: no portion of the authority is
located in a county with a population of
more than one hundred thousand and
so long as the fee is not levied upon
development, construction, permitting,
or otherwise in connection with low or
moderate income housing or affordable
employee housing, and the rate is two
dollars per square foot or less.
LOCAL GOVERNMENT AND
FAIR HOUSING
Local governments are responsible for ensuring
their jurisdictions comply with federal laws and
regulations regarding Fair Housing. Failure to do
so can result in costly litigation from a fair hous-
ing or false claims complaint. it may also result
in your jurisdiction's being declared ineligible
to receive federal community development or
housing funds.
Fair Housing is defined as the right of all people
to be free from discrimination in the rental,
sale, or financing of housing. Discrimination
consists of any actions, omissions, or decisions
made because of race, color, religion, sex, sexual
orientation, disability, familial status, or national
origin that limit housing choices, or that have
the effect of limiting them.
Page 26 Division of Housing I Affordable Housing Guide for Local Officials
Every jurisdiction that qualifies for its own
distribution of federal HUD funds for commu-
nity development and/or housing is required to
complete an Assessment of Fair Housing (AFH).
The AFH is designed to help communities iden-
tify, among other things, fair housing issues
pertaining to patterns of integration and segre-
gation; racially and ethnically concentrated
areas of poverty, disparities in access to oppor-
tunity, and disproportionate housing needs, as
well as the contributing factors for those issues.
Upon completion of the AFH, each commu-
nity must then incorporate it into subsequent
Consolidated Plans in a manner that connects
housing and community development policy
and investment planning with meaningful
actions to Affirmatively Further Fair Housing.
Finally, each community should maintain
records of actions taken and outcomes towards
Affirmatively Furthering Fair Housing to report
to HUD.
Even those local jurisdictions that do not receive
direct funding from the federal government
are responsible for ensuring the availability of
fair housing. Local regulations that impede fair
housing, such as prohibiting rental housing in
areas zoned as single-family residential, could
result in fair housing litigation.
Many means of reducing impediments to
fair housing are under the control of local
governments, in particular land use regulations
and zoning policies. Actions to reduce
regulatory barriers to affordable housing
often also improve Fair Housing, because
racial and ethnic minorities, single -parent
households, and disabled households are
disproportionately low income. Regulations
and policies that reduce impediments to fair
housing may permit:
• Small houses (no minimum size required).
• Small lot sizes.
• Multi -family housing.
• Manufactured housing.
• Group homes for protected classes in
residential areas.
• Accessory dwelling units.
• Mixed-use development.
• Lower parking standards for affordable
housing, multi -family housing, group
housing and special needs housing.
• Higher density in multi -family areas; and
• Growth management exemptions such
as fee waivers.
Permitting affordable Dousing options in a
variety of zoning areas helps to decrease the
concentration of poverty into just a few areas.
Such concentrations of poverty often have
undesirable economic effects and result in
blight; preventing the creation of such areas
is essential to the vibrancy and health of a
community.
Division of Housing I Affordable Housing Guide for Local Officials Page 27
LAIRD USE POLICIES AND STRATEGIES
LAND USE POLICIES AND
STRATEGIES
The State Demography Office projects Colo-
rado's population to exceed 5.9 million by the
year 2020, and 6.4 million by 2025, with contin-
ued peaks and valleys of economic change. This
represents a 28 percent increase between 2010
and 2025. Continued growth will impact schools,
transportation, air quality, and other public
services. In some communities, development
pays its own way through fees for open space,
parks and recreation facilities, roads, water and
sewage treatment, fire and police protection,
and trash removal. The cost for these services
will then be borne by each new development,
rather than being spread among the existing
community residents and businesses. In addi-
tion to fees for municipal services, developers
Ab
must also add in the cost of the local standards
required to build in each community. These
standards can require brick facades, three-inch
diameter trees, or minimum lot sizes. Each adds
costs that are passed on to the consumer.
Local government's greatest impact on housing
cost is in regulating land use and building stan-
dards. It is when a local government includes
affordable housing in its long-term development
plans that the community achieves the great-
est gains in keeping housing affordable to its
residents.
Division of Housing I Affordable Housing Guide for Local Officials Page 2
LAND USE POLICIES AND STRATEGIES
ATTRACTING AFFORDABLE
HOUSING
A strategy for attracting affordable housing
must be linked with local capital improvement
plans. The lack of sufficient infrastructure
increases the cost of housing development,
limits site options, diminishes long-term
economic competitiveness, and aggravates
growth -related disputes. The amount of devel-
opable land is often dependent on topography,
abutment to state or federal lands, or adjacent
municipalities. In many towns, construction
of market -priced housing has consumed the
remaining buildable sites, so planning ahead is
important.
Create a dialogue with the development
community, including real estate agents, devel-
opers, builders, architects, engineers, and plan-
ners. Allow everyone an opportunity to express
their points of view. Look for creative solutions
to difficult issues.
To reduce costs for affordable housing in your
community, include the following in your expe-
dited process: building permit, zoning permit,
subdivision approval, rezoning, certification,
special exception, variance, or any other official
action of your jurisdiction having the effect of
permitting the development of land.
Work/live policies encourage mixed uses
in appropriate non-residential or existing
mixed-use areas to help achieve a reduction
in commuter traffic, create affordability, and
provide living space in renovated, redesigned
structures. These policies can be used to
encourage and support artists, telecommuters,
freelancers, and other compatible employment.
HOW TO CREATE LAND USE
POLICIES THAT ENCOURAGE
AFFORDABLE HOUSING
STEP 1: Analyze the purpose of land use
regulations and building codes
The primary purpose of land use regulations and
building codes is the health and safety of residents
living and working in the community. Local govern-
ments should look at the cost of implementing
these policies to determine their long-term impact
on housing development, considering the origi-
nal purpose of the existing code or standard, and
updating or changing them as necessary.
Page 30 Division of Housing I Affordable Housing Guide for Local Officials
LAND USE POLICIES AND STRATEGIES
STEP 2: Understand your housing market
Assess the overall condition of a community's
housing and the need for specific types of hous-
ing (i.e., homeownership, rental, and special
needs housing). A housing needs assessment
examines existing housing stock — its charac-
teristics, physical condition, and the number of
units — and may make recommendations about
the type and quantity of housing required to
satisfy future needs.
STEP 3: Learn from other Colorado local
jurisdictions
Colorado communities have many different
approaches to affordable housing. Programs
range from incentives to requirements, from
monetary contributions to donations of land,
from deferral of impact fees to fee waivers.
Local governments can draw lessons from the
experiences of similar communities, exploring
how they have responded to the demand for
affordable housing, and planning accordingly.
STEP 4: Create an affordable housing
strategy
Opportunities to create affordable housing
occur on a frequent basis in local communities,
By creating affordable housing goals and strate-
gies tied to the housing and economic needs of
the community, local governments are prepared
to take advantage of opportunities in a consis-
tent and rational manner.
Division of Housing I Affordable Housing Guide for Local Officials Page 31
LAND USE POLICIES AND STRATEGIES
LAND STRATEGIES
Strategy
Benefit
Public Action
Zone sufficient land for all
Allows market to respond
Vacant or under -developed
housing types, including
to housing needs. Avoids
land can be zoned based
medium and high
zoning delays that increase
on projected housing needs
densities.
the cost of specific housing
including single-family,
developments.
multi -family, affordable, and
manufactured housing.
Reduce/eliminate
Provides for more units per
Allow alternative site designs,
minimum lot size,
acre, thereby promoting
based on utility access, soils,
efficiency and affordability.
topography, and other factors to
minimize consumption of land.
Increase densities for
Ensures that housing
Modify zoning ordinances to
residential development in
is located close to
allow increased densities in
commercial areas.
employment.
commercial areas.
Allow Planned Unit
As a flexible negotiated tool,
Modify local zoning or
Developments (PUDs).
PVDs encourage affordable
subdivision ordinances.
housing.
Enact a parking reduction
Increases land use efficiency
Examine parking standards and
ratio for projects that
and reduces cost of housing.
compute a reduction formula
meet your standards for
for affordable housing based on
affordable housing.
your community's needs. Enact
by ordinance.
Increase densities for
Ensures that workers have
Target urban corridors in
residential development
either proximity to their
planning documents as areas of
along transportation
jobs or access to mass
increased density.
corridors.
transportation.
Encourage mixed-use
Allows residential to co -exist
Modify zoning regulations
development.
with commercial uses.
to allow for mixed-use
development.
Page 32 Division of Housing j Affordable Housing Guide for Local Officials
LAND USE POLICIES AND STRATEGIES
LAND STRATEGIES (cont.)
Strategy
Benefit
Public Action
Create density bonuses to
Provides for an increase in
Modify local zoning laws to allow
encourage more efficient
density over the otherwise
density bonuses.
land use.
maximum developable
density when a project
incorporates a certain ratio
of affordable units to market
units and when those units
will stay affordable for a
designated period of time.
Provide a linkage
Large-scale businesses
Modify local zoning ordinances
ordinance.
provide affordable units
to allow for linkage.
during the development
process to increase housing
units available to their
minimum wage workers.
Enact a maximum lot size.
Decreases sprawl, increases
Identify and designate areas for
densities and helps promote
maximum lot size development
production of affordable
through the comprehensive
housing units.
plan.
Allow zero lot -line
Allows houses to be sited
Adopt/modify local zoning laws
development.
on a common lot line to
to allow zero side or rear yard
increase the usable space on
setbacks.
the other side.
Allow/encourage
Reduces development and
Modify subdivision or zoning
clustering of housing
facility maintenance costs
regulations to allow for
units.
and provides incentives for
clustering.
efficient development.
Division of Housing J Affordable Housing Guide for Local Officials Page 33
LAND USE POLICIES AND STRATEGIES
CONSTRUCTION STRATEGIES
Strategy
Benefit
Public Action
Enact uniform building
Allows builders to use
Adopt uniform building codes.
codes that are accepted by
economies of scale for
Limit amendments to local
all local governments.
construction designs and
health and safety issues only. if
materials, reduces design
amendments to building codes
and construction errors.
are being considered, the cost
of these variations should be
considered in the decision.
Allow flexibility in
Allows rehab and conversion
Adopt a scoring system that
rehabilitation codes while
of buildings to affordable
quantifies the overall standard
maintaining protection of
housing while maintaining
of safety by assigning points
health and safety.
standards for community
to each improvement relative
health and safety.
to each other. This creates an
overall safety threshold, but
allows cost savings on individual
improvements.
Assess development
Costs for modest homes and
Develop and adopt a formula for
charges based on square
apartments will decrease
assessing development fees that
footage rather than on a
and larger, less land -efficient
relates to cost per square foot.
per-unit basis.
homes will pay more, thus
encouraging affordable
housing.
Promote the use of infill
Enhances housing
Exempt or defer infill
development.
affordability by using
development areas from some
existing infrastructure
fees or permit requirements,
and services rather than
or grant tax rebates or density
requiring expensive new
bonuses.
roads or water and sewer
lines.
Page 34 Division of Housing I Affordable Housing Guide for Local Officials
LAND USE POLICIES AND STRATEGIES
CONSTRUCTION STRATEGIES (cont.)
Strategy
Benefit
Public Action
Provide an infrastructure
Encourages affordable
On a case-by-case basis, a local
loan or grant (up to a
housing by deferring
government may provide a loan
designated percentage) to
extraordinary off-site costs
or grant (up to a designated
meet off-site infrastructure
until the project is able to
percentage) to a project that
requirements for a
recoup some of these costs
meets the criteria established by
project that meets criteria
as other sites develop.
the local government.
established by the local
government. For example,
the local government
may provide a loan or
grant up to 15 percent of
any off-site cost deemed
extraordinary by both the
local government and the
developer.
Ensure that zoning and
Prefabricated homes are
Modify zoning and land
land use regulations allow
constructed under strict
use regulations to allow
manufactured homes to
standards, have many styles,
manufactured housing to
be installed on permanent
and offer an important
be installed on permanent
foundations.
affordable alternative to site-
foundations.
built homes.
Allow innovative
New materials and design
Modify building code regulations
construction methods.
elements may contribute
to allow innovative construction.
Examples include new
to housing affordability
plumbing or electrical
if allowed by a local
techniques or materials.
government.
Division of Housing I Affordable Housing Guide for Local Officials Page 35
LAND USE POLICIES AND STRATEGIES
LOCAL PROCESS STRATEGIES
Strategy
Benefit
Public Action
Use one-stop or parallel
Reduces time delays
Develop and implement
permit processing,
caused by multiple agency
common application forms
reviews. Such delays add
where possible, and provide
to the carrying costs of
verification and consulting
housing development for
services throughout the
time -sensitive items such
planning process, to ensure that
as property taxes and
permits can be issued as quickly
construction loan interest.
as possible.
The lead municipal agency
Set time limits for multiple
Reduces time delays and
agency review and
uncertainties.
should transmit a single master
approval of building plans.
application to appropriate
departments giving each a set
time for response. Afterjoint
hearings with the developer,
each department has a limited
amount of time for final
decision.
Provide for waiver or
Reduces up -front
Establish affordable housing
deferral of fees.
development costs and
criteria for which waivers may
retains savings in the
be considered. Projects that
project. The project becomes
meet criteria are eligible for
more affordable for current
waiver or deferral.
and future residents.
Allow a Property Tax
Encourages affordable
Develop affordable housing
exemption for those
housing. Fewer costs are
criteria that affordable projects
developments meeting
borne by the units.
must meet to qualify for a
defined criteria.
defined term of property tax
exemption.
Page 36 Division of Housing I Affordable Housing Guide for Local Officials
LAND USE POLICIES AND STRATEGIES
LOCAL PROCESS STRATEGIES (cont.)
Strategy
Benefit
Public Action
Resolve historic and
Saves time and money.
Requires that historic or natural
natural resource
Provides more certainty
resources be inventoried,
protection issues — such
in the permitting and
evaluated, and protected during
as landmarks or open
development process.
comprehensive plan updates.
space -- during the
Eliminates second-guessing
Resource protection measures
planning process, rather
or hidden costs during the
must be clear and objective.
than have these issues
development process.
delay the permitting
process and add cost to
the project.
Allow for Transfer of
Accommodates housing
Development rights are
Development Rights
construction while
assigned to land that is
(TDRs).
protecting environmental
designated for open space.
resources or open space.
These development rights may
be sold by the landowner and
transferred to other areas
where development is more
desired.
Use development
This process works best as
Developers enter into an
agreements.
a public/private partnership
agreement with the local
where the risk can be borne
government which "freezes" the
by both sectors.
regulations applicable to the
development for a period of
time specified in the agreement.
The Development Agreement
includes the savings accrued
from regulatory concessions
in return for the construction
of affordable housing, public
facilities, or preservation of
environmentally sensitive land
or historic structures.
Division of Housing I Affordable Housing Guide for Local Officials Page 37
LAND USE POLICIES AND STRATEGIES
INCENTIVES AND OTHER
STRATEGIES
Local Housing Trust Fund
Local governments can create a dedicated
funding stream for affordable housing in a
community through local housing trust funds.
Thesetrustfunds can create newgap sourcesfor
the development of housing or land banking for
future housing needs when sufficient funding is
available. Depending upon the proposed source
of funding, a new revenue stream or tax could
be subject to voter approval under the TABOR
amendment.
Incentives For Infill Housing
Local jurisdictions can create an incentive for
infill housing by reimbursing development
fees for affordable housing built inside defined
boundaries. Developing within a town or city's
existing grid utilizes infrastructure already in
place and reduces the traffic impact of devel-
opment, particularly where public transit exists.
Accessory Dwelling Unit
An Accessory Dwelling Unit is an additional living
unit attached to a primary residence on a single-
family lot. Most local governments provide
stringent guidelines which detail how and when
these units will be allowed. Some communities
approach the issue on a case-by-case basis.
Other communities utilize conditional use
permits and a set of criteria for parcels on which
accessory dwellings may be built, such as lot
size, setback requirements, access, and parking.
k
Page 38 Division of Housing I Affordable Housing Guide for Local Officials
REDUCING REGULATORY BARRIERS
REDUCING REGULATORY
BARRIERS
Growth management is an ongoing concern
for state and local elected officials in Colorado,
and every community must determine which
approach best serves its unique needs. For
some, this may mean closely examining public
policies used to guide the creation of trans-
portation systems, water supply, open space,
and housing, For others, it may mean adopting
policies that growth should "pay its own way,"
resulting in sometimes complex and confusing
impact fee structures.
Even in an robust economy, wages do not always
keep up with the cost of housing. Public policy
should control direct development according to
a community's wishes. Public policies related to
growth control direct development according
to a community's wishes. Sometimes, however,
those tools inhibit housing that is affordable to
current or prospective residents and may affect
a community's ability to attract an adequate
workforce. It is important that a community
examine its growth regulations to understand
and lessen their impact on affordable housing.
DOH has identified the types of land use regula-
tions frequently cited as barriers to affordable
housing.
Division of Housing' Affordable Housing Guide for Local Officials Page 39
REDUCING REGULATORY BARRIERS
ANNEXATION, SUBDIVISION
AND ZONING POLICIES
Traditional land -use controls such as annexa-
tion and zoning ordinances which regulate the
general placement and density of land uses
in a community and subdivision regulations
which govern site-specific development, can
have significant impacts on the price of hous-
ing. Laws governing annexation and subdivision
.,,y
The Three "Jejocent to a municipality.
• Reinvest in your community's housing stock to help
develop affordable housing for local families.
• Reform community development policies to help
achieve a housing balance.
• Renew community housing partnerships that help
produce affordable multi -family units for working
families.
While zoning is generally intended to separate
incompatible land uses, the use of exclusion-
ary criteria in defining the term "incompatible"
can lead to overly strict restrictions or prohibi-
tions on housing types that are most likely to
be affordable, including multi -family or manu-
factured housing. Other examples of zoning
matters that affect housing affordability:
• Minimum house size, lot size, or yard size
requirements.
Prohibition of accessory dwelling units.
• Excessive subdivision standards.
Restrictions on land zoned and available
for multi -family housing or manufactured
housing.
Regulations often present either a cost incurred
by the development, or a lost opportunity to
balance a community's housing stock. The
more regulations, the higher the cost to the
community. Ultimately, development costs are
passed on to the consumer, whether renter or
homeowner, as a higher cost per square foot.
The higher the cost per square foot, the less
affordable the unit.
During times of economic recession, it becomes
critical for state and local governments to
provide housing opportunities for all income
levels as a means to encourage new employ-
ment. Employment and housing are inextricably
joined together. Across Colorado, more commu-
nities are acknowledging the linkage and review-
ing their land use and subdivision regulations
with a goal of increasing housing affordability.
DEVELOPMENT PERMIT
PROCESSING AND BUILDING
CODES
The cost of housing development and construc-
tion will also be affected by the local permitting
process and building codes. In Colorado, the
development permitting process and adopted
building codes are approved and implemented
at the local level to provide the community with
safe and healthy neighborhoods and homes
that meet specific design criteria.
Housing development permitting may include a
number of permit types and activities, including
but not limited to; site use and setbacks, utility
connections, site drainage, neighborhood design
criteria, and subdivision plans that are in place
to preserve and protect the land use goals of the
jurisdiction. The permitting approval process
Page 40 Division of Housing I Affordable Housing Guide for Local Officials
can be expensive and may involve multiple local
government offices and independent reviews
that create challenges and inefficiencies in the
process. Local governments are encouraged to
review their housing development permitting
process to look for opportunities to eliminate
redundancies and overlap between approval
agencies, to reduce costs, and to speed up the
overall approval process.
Building codes govern the use and installation
of materials, and the design and construction
standards for buildings. A locally adopted
building code plays a vital role in protecting the
health and safety of the occupants of a build-
ing, and the value and longevity of the building.
A housing project may be subject to building
code department fees for the issuance of valid
building, electrical, plumbing, heating, and gas
permits, as well as building plan review fees
to ensure compliance with the locally adopted
building code. in return for these fees, the local
building department conducts on-site inspec-
tions of the building during construction to
observe compliance with the adopted building
code.
In Colorado, the total cost of permit and review
fees vary between local communities and
may run over $30,000 per single-family house
depending on the specific local fees. The effect
of permitting and review fees on the overall
home price can be significant, as most of this
cost is passed from the builder into the final
sales price of the home, having a direct impact
on the affordability of homes.
DECREASING THE COST OF
REGULATION
Local governments can support affordable
REDUCING REGULATORY BARRIERS
housing development through a variety of ways,
including:
A review of their permitting and
review fees to consider fee deferrals or
reductions in order to reduce the overall
development cost of housing.
• Coordination of housing strategies
between municipalities and counties in
planning affordable units.
• Streamlining of the permit review process
between agencies and jurisdictions for
affordable housing projects.
Building flexibility into local codes for
design standards, There may be adequate
but less expensive design alternatives
that can reduce costs while still produc-
EXAMPIgESMWAAAbANCE LAND USE
Mixed Use
Allows housing to exist above retail shops or other commer-
cial development.
Overlay Districts
Allow for flexibility of zoning and development standards
and could include such things as small building setbacks,
garages placed in the rear of homes, narrow streets to
calm traffic, and vertical mixed uses.
FINANCING PUBLIC
IMPROVEMENTS
Local comprehensive land use and capital
construction plans solidify a communitys long-
term vision. In the face of tremendous growth,
planning ensures that a community can handle
new business opportunities and accommodate
future residential development. In times of
Division of Housing I Affordable Housing Guide for Local Officials Page 41
slower growth, planning enables local jurisdic-
tions to allocate scarce resources in an efficient
and consistent manner. Local governments
have begun to charge for many of the services
they provide, using a "pay-as-you-go" plan to
recoup infrastructure costs. These development
charges include fees in lieu of payment, impact
fees, administrative processing fees, and plant
investment fees to pay for service expansion.
While increasing revenues to pay for growth,
these fees become increased costs for renters
and homebuyers. A community may recoup the
cost of its infrastructure, but the result may be
a reduction in housing affordabiNty. A lack of
adequate workforce housing can discourage
new potential employers from establishing
operations in the community. The best
approach is to find a balance that maintains
the integrity of a community's infrastructure but
eases regulatory cost burdens by incorporating
waivers, deferral, or off -set of fees for affordable
housing.
EFFECT OF ENVIRONMENTAL
AND CULTURAL PROTECTIONS
ON AFFORDABLE HOUSING
Resource protection statutes have a potentially
large impact on housing construction. Imple-
mentation of some of these major federal laws
require significant amounts of time and money
for compliance. They may also lack any standard
dispute resolution process, other than federal
courts.
Clean Water Act (CWA)
CWA is the nation's primary water qual-
ity protection statute and affects planning and
development for housing construction in a
number of ways. It contains strict prohibitions
on any construction activity potentially affect-
ing wetlands, and it also controls stormwater
runoff and nonpoint source discharges, which
can impose additional strict requirements on
Page 42 Division of Housing I Affordable Housing Guide for Local officials
housing construction.
Endangered Species Act (ESA)
The ESA protects endangered and threatened
species and their habitat. Listing a species
as endangered or threatened can in rare
circumstances remove thousands of acres
from development. In recent years, developers
and local governments have begun working
cooperatively to avoid standoffs by designing
and implementing habitat conservation plans.
National Environmental Policy Act (NEPA)
NEPA requires environmental impact state-
ments (EIS) to be prepared prior to construction
for certain projects involving federal funding
or approvals. Preparation of an EIS may take
months to complete, depending on the size
and complexity of the proposed project and the
development site.
CREATING A COMMUNITY
HOUSING TRUST FUND (HTF)
An HTF is a flexible, community-based tool
that allows local governments to respond
to affordable housing or workforce housing
opportunities on a case-by-case basis. HTFs
generally have a committed, ongoing source of
funding such as a dedicated portion of a sales
tax or other revenue, or they may be funded
from the sale of surplus property or through an
annual commitment of general fund dollars. A
local jurisdiction may set aside monies for future
participation in affordable housing, provide
dollars to housing non-profit organizations, or
use the dollars to prevent the loss of affordable
housing stock.
REDUCING REGULATORY BARRIERS
EXAMINE YOUR REGULATION
Review your cultural and environmental policies and
regulations to ensure their reasonability.
Review historic preservation ordinances.
Allow adaptive reuse or conversion of surplus
buildings.
REGULATORY BARRIERS
CLEARINGHOUSE
The U.S. Department of Housing and Urban
Development's (HUD's) Office of Policy Devel-
opment and Research (PD&R) established the
Regulatory Barriers Clearinghoume to collect,
process, assemble and disseminate information
on the barriers faced in the creation and main-
tenance of affordable housing. You can submit
your experiences using their online form, to give
them a better understanding of the issues facing
developers of affordable housing.
Division of Housing I Affordable Housing Guide for Local Officials Page 43
CREATING SUCCESSFUL NEIGHBORHOODS
CREATING SUCCESSFUL
NEIGHBORHOODS
Successful housing development projects take
the needs of the entire community into consid-
eration. Any local government interested in
affordable housing should solicit the input of a
broad coalition of entities to explore how new
projects will affect different segments of the
population.
Whether your community is promoting infill
development, redeveloping existing areas,
extending its boundaries, or working on all of
these, it is important to create well-functioning,
successful neighborhoods that include sufficient
safe and affordable housing.
Housing choice accommodates differing needs,
ages, lifestyles, and family economic factors.
Also important to neighborhoods are social
and economic infrastructures that strengthen
the workforce and provide community support.
Attributes of healthy neighborhoods include
parks and open space, schools, pedestrian
access, commercial or mixed-use areas, and
access to transportation, community institu-
tions, and the vibrancy of our main streets.
Division of Housing I Affordable Housing Guide for Local Officials Page 45
CREATING SUCCESSFUL NEIGHBORHOODS
HOUSING PARTNERSHIPS
Local government involvement is often needed
to intiate affordable housing projects. Active
local government participation can lower the
risk, reduce costs by streamlining some of the
processes, and help to develop the best product
to meet local needs.
One way to begin a housing project is to form
a housing task force. The local government can
work with the task force to clearly define its
mission, activities, and responsibilities in the
development process. The task force should be
prepared to address the housing need priorities
of the community, and to identify the groups
and/or services that currently exist that could
assist in meeting the established goals and
objectives.
In determining how to structure the task
force, the roles for each member should be
considered, as well as how members can work
collectively and individually to remove barriers
and facilitate the development process. If the
community does not have the capacity, a third
party may be needed.
The task force can also establish what final
product is desired, ensuring that the product
or project effectively responds to or fills a gap
in the housing needs of the community.
Assessing Capacity
Rarely does a single entity have the resources
and capacity to develop affordable housing
independently. Consequently, partnerships
bring together the expertise and resources
needed to complete the housing development
process and may enable a local government to
work on solving different aspects of the local
housing picture, without pushing any one
agency beyond capacity or duplicating services.
When deciding on a course of action to address
community housing needs, local governments
must first determine their internal capacity,
deficiencies, and gaps in order to assess where
partnerships may be required.
The following questions can assist local officials
in assessing their capacity:
• Should we begin the process with the
resources we have or hire professional
help?
• If we begin on our own, at what point and
for what tasks do we hire professionals?
• How much time and money are we will-
ing and able to invest in exploring our
options?
• Can we rely on our internal staff and
funds to cover the initial expenses?
• Are there staff members with time and
skills to undertake this process?
• Will we need this skill again in the future?
• Can community volunteers assist with
critical tasks?
Will the involvement of these community
volunteers increase local support for the
project?
• Are there other ways to accomplish or
fund this project?
• Are we the most appropriate entity to get
this project done?
• If there is funding for the initial project
phases, how are these decisions affected?
Development Options
Use a Request For Proposals (RFP) to
publicize needed services for inter-
ested parties to submit statements of
Page 46 Division of Housing I Affordable Housing Guide for Local Officials
qualification, services and prices.
• Hire a developer to manage the whole
process.
• Assemble an initial project team that can
carry out earlyactivities without payment.
• Form a development committee as part
of the project.
Selecting The Right Partners
No matter the nature of the partnership or
housing project, local government officials need
to ask questions about the capacity and role of
potential partners. The participation of local
government is critical for this process.
When seeking potential partners be sure to
consider these questions:
• What is the work history and background
of the potential partner?
• Do the references confirm what the
POTENTIAL PARTNERS
CREATING SUCCESSFUL NEIGHBORHOODS
partner is saying?
Are the financial records organized and
well kept?
What is the organization's experience in
this particular form of development?
Does the partner have experience in
areas that are lacking by other members
of the partnership?
Increasingly, non-profit organizations are
becoming valuable partners for local govern-
ments in each stage of housing development.
These organizations often have access to a
substantial pool of volunteers as well as funding
sources for pre -development costs, operating
expenses, and construction activities specifically
earmarked for non -profits.
When partnering with more than one local
government, it is advisable to clearly delineate
in a written agreement which is the lead govern-
ment agency, what each government's roles and
Funding Partner — Provides grants or loans to the project in return for long-term affordability.
Project Developer — Manages the team.
Construction/Project Manager — Day-to-day project oversight.
Service Provider— Provides services for special needs populations once the project is built.
Housing Authority— Provides section S vouchers and ability to exempt property taxes.
Property Management— Manages the project upon completion.
Neighborhood Partners — Engage community members in a positive fashion about the project.
Lenders — Provide financing for project.
Division of Housing I Affordable Housing Guide for Local Officials Page 47
CREATING SUCCESSFUL. NEIGHBORHOODS
responsibilities are, and, most importantly, the
expectations of the project outcome. These are
especially important in rural areas when a hous-
ing project may draw its clientele from many of
the smaller communities.
Strengthening Neighborhood Dynamics
When planning for new or redeveloping areas,
look at existing neighborhoods and analyze the
characteristics that make them attractive and
well-functioning. Determine which features
promote successful interactions among the
residents. Create neighborhoods that welcome
a range of age groups, and ensure that both
rental and homeownership opportunities are
available. Consider policies that allow for mixed
uses, both residential and commercial, with
establishments that draw people in and may
provide informal meeting space. Churches,
service clubs, and other local institutions can
help foster community engagement and partici-
pation. Non -profits and volunteer organiza-
tions can work with you on the development
of programs to improve the physical conditions
of older neighborhoods through trash pick-up,
graffiti removal, landscaping, painting, and
building repairs
Eliminating NIMBY
The "Not In My Back Yard" syndrome, or NIMBY,
is the tendency of neighbors to testify against a
proposed project, often based on misconceptions
or fears that property values, safety, or quality of
life will be compromised. For affordable housing
projects to be successful, outreach that builds
and maintains community support should begin
in the early stages of the development process.
Local officials should anticipate neighborhood
Page 48 Division of Housing I Affordable Housing Guide for Local Officials
concerns regarding the project and provide
factual information on community issues such
as design, density, crime, traffic, and parking.
Housing developers should be required to
contact and involve all neighborhood groups
and constituencies to insure their inclusion in
the process. Public discussions can be used as
an opportunity to acknowledge and address
people's concerns, while promoting housing
affordability as a positive and important factor
in improving neighborhood conditions. Resis-
tance to a development will be mitigated if
local officials can demonstrate that affordable
housing is a community asset, providing hous-
ing for the workforce and local jobs during and
after construction, bringing in federal and state
subsidies, generating sales tax revenue, and
reducing traffic and pollution.
Colorado Main Street
Colorado Main Street is a program founded
by the National Main Street Center (NMSC), a
national organization committed to historic
preservation -based community revitaliza-
tion. The Colorado program is managed by
the Department of Local Affairs (DOLA) using
the NMSC model to assist communities as
they preserve and rejuvenate their downtown
and commercial districts within the context of
historic preservation. A town's main street says
a lot about the community, and bringing to life
the history and unique aspects inspire creative
energy and pride. Local residents are eager to
share their heritage and visitors come to learn
and enjoy.
Colorado Main Street has a tiered system for
local programs to progress through as they
achieve greater levels of self-sufficiency and
success. The Affiliate tier gets limited services
CREATING SUCCESSFUL NEIGHBORHOODS
EVENTS AND ACTIVITIES
• Hold an affordable housing forum or town hall
meeting.
• Host an affordable housing breakfast for citizens
and housing professionals.
• Host a community affordable housing fair.
• Request affordable housing as a topic of a Chamber
of Commerce retreat.
• Host community round tables on affordable housing.
• Provide information on the link between affordable
housing and other aspects of community life.
from DOLA, but it is a great way to connect
to the Main Street network and/or begin the
process of becoming a Candidate. Communities
may remain an Affiliate as long as they desire.
Main Street staff can work with your commu-
nity to help explore the program and help you
decide if it is right for your community.
Please see the Colorado _Main Street Pro rn
for more information on the prerequi-
sites, requirements and available services for
each tier
Division of Housing I Affordable Housing Guide for Local Officials Page 49
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