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Development Incentives for Affordable Housing

Who's Eligible?

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. For complete definitions, see Section 5.1.2 of the Fort Collins Land Use Code. 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.

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, 2014
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
$51,500
$41,200
$30,900
$25,750
$15,450
2
$58,800
$47,050
$35,250
$29,400
$17,650
3
$66,200
$52,950
$39,700
$33,100
$19,850
4
$73,500
$58,800
$44,100
$36,750
$22,050
5
$79,400
$63,550
$47,600
$39,700
$23,850
6
$85,300
$68,250
$51,150
$42,650
$25,600
7
$91,200
$72,950
$54,700
$45,600
$27,350
8
$97,100
$77,650
$58,250
$48,550
$29,150

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.

Fee Waiver

Affordable housing projects of the Fort Collins Housing Authority may qualify if providing housing for formerly homeless individuals, housing for people with disabilities or people earning 30 percent of the AMI or less.

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.