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Council begins review of housing authority bylaws; staff recommends broader authority tied to housing needs assessment
Summary
Fruita city staff and the city attorney led a detailed discussion on possible amendments to the 2022 housing authority bylaws, urging flexibility beyond low-income housing tax-credit deals and recommending a housing needs assessment guide scope and future bylaws.
City staff and the city attorney on Monday opened a council discussion on possible amendments to the housing authority’s bylaws, emphasizing flexibility for the authority to pursue a broader set of housing tools than those enumerated in the original 2022 resolution.
Assistant City Manager Dan Karas told council the housing authority was created in 2022 and that its bylaws currently limit the authority’s scope largely to projects using low-income housing tax credits (LIHTC) and related tax abatement tools. Karas said staff has applied for programs such as accessory dwelling unit incentives and has participated in locally funded projects that fall outside the bylaws’ narrow examples.
“...we created the housing authority in 2022,” Karas said, explaining that the original language was intentionally limited because the body and staff were new to using the authority as a financing tool. He recommended giving the housing authority more flexibility to pursue locally appropriate financing and implementation approaches as state and federal funds shift.
City Attorney Mary Elizabeth Geiger said the bylaws currently provide that the city council sits as the housing authority board. She said the council could amend the bylaws to allow community members on the authority in the future while preserving council oversight by requiring at least one city council member and one staff member to remain on the board.
Councilors discussed the merits of keeping the authority narrowly focused so that it does not become a project developer versus expanding its role to encourage projects that meet local goals. Several councilors said a forthcoming housing needs assessment should inform any change in scope and would serve as a safeguard defining city goals and acceptable activities.
Staff told council the next steps would include drafting sample bylaw revisions, coordinating a workshop for in-depth discussion of scope and board composition, and timing any formal changes to align with the housing needs assessment results. Several councilors asked that staff consider a stopgap amendment to permit projects similar to the locally funded Oaks project, which staff described as outside the current bylaws' strict language.
Ending note: Council did not take final action; staff will return with draft language and schedule a workshop after additional analysis and the housing needs assessment.
