In order to encourage the building of affordable housing units, Fort Collins offers a variety of development incentives that are intended to reduce the costs to developers. In order to receive affordable housing development incentives, a project must meet certain criteria as defined in the Land Use Code:
| - | A housing development is considered affordable if at least 10 % of the total dwelling units are affordable to rent or own by households earning 80% or less of Area Median Income (AMI). |
| - | A unit is considered affordable to rent if a household earning 80% or less of AMI pays no more than 30% of their gross monthly income towards rent, including utilities. |
| - | A unit is considered affordable to own if a household earning 80% or less of AMI pays no more than 38% of their gross monthly income towards their mortgage, including principal, interest, and insurance. |
For complete definitions, see Section 5.1.2 of the Fort Collins Land Use Code, colocode.com/ftcollins/landuse/article5.htm.
HUD Income Limits
Each year HUD determines Area Median Income (AMI) for the Fort Collins/Loveland Metropolitan Statistic Area (MSA), broken down by household size and percentage of AMI.
Fort Collins - Loveland MSA Family Median Income, 2012
Source: City of Fort Collins, based on info from U.S. Housing and Urban Development
|
Number of People/Household
|
Median (100%)
|
80% AMI
|
60% AMI
|
50% AMI
|
30% AMI
|
|
1
|
$54,400
|
$43,550
|
$32,640
|
$27,200
|
$16,350
|
|
2
|
$62,200
|
$49,750
|
$37,320
|
$31,100
|
$18,650
|
|
3
|
$70,000
|
$55,950
|
$42,000
|
$34,550
|
$21,000
|
|
4
|
$77,700
|
$62,150
|
$46,620
|
$35,000
|
$23,300
|
|
5
|
$84,000
|
$67,150
|
$50,400
|
$38,850
|
$25,200
|
|
6
|
$90,200
|
$72,100
|
$54,120
|
$42,000
|
$27,050
|
|
7
|
$96,400
|
$77,100
|
$57,840
|
$48,200
|
$28,900
|
|
8
|
$102,600
|
$82,050
|
$61,560
|
$51,300
|
$30,800
|
Impact Fee Delay
Impact fees are typically paid at the time that building permits are issued. This incentive allows the developer to delay the payment of those impact fees until a certificate of occupancy is issued, or December 1 of that year, whichever happens first. See Section 7.5-26 of the Fort Collins Municipal Code & Charter for full detail.
Development Review Fee Waiver
All projects are required to pay fees related to the review of their project. This incentive waives those fees based upon the percentage of affordable units being offered in a project. For example, if a developer plans to make 40% of the dwelling units affordable, 40% of that project's development review fees
Administrative Construction Fee Waiver
Certain construction fees are exempt for affordable housing projects including construction inspection fees, development construction permit fees, right-of-way construction license fees, and street cut fees. The formula for this fee waiver is the same as the Development Review Fee Waiver; fees are waived based upon the percentage of affordable units being offered in a project. Contact Engineering for more information, 970-221-6605.
Priority Processing
Affordable housing projects are eligible to receive an expedited development review and permitting process.
Density Bonus
Affordable housing projects proposed in the Low Density Mixed-Use Housing (LMN) zone are eligible to increase the maximum allowed density from 8 to 12 dwelling units per acre. See Section of the Land Use Code for full detail.