Department of Community Development
Reference: Amendment to the Affordable Housing Duplex Rental Assistance Demonstration Conversion Agreement
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Shawn Weiman, Affordable Housing Coordinator
Date Prepared: May 21, 2025
PURPOSE
To amend an agreement between the City of Brighton and the Brighton Housing Authority (BHA) regarding the addition of affordable housing units on N. 5th Ave. and S. 18th Ave. and the reporting protocol for affordable housing units on Jessup Street.
BACKGROUND
The City of Brighton and the BHA entered into an agreement on April 4, 2017 (the “Agreement”) in which development impact fee reductions were agreed to for adding, in total, sixteen affordable housing units on Jessup St., N. 5th Ave., and S. 18th Ave. Due to constraints, the scope of work at the 5th Ave. and 18th Ave. properties changed, and consequently, plans for adding seven of the additional units were abandoned. Of the sixteen planned additional units, six were added to the Jessup St. property and three units in total were added to the 5th Ave. and 18th Ave. properties.
The Agreement sets a 50% Area Median Income (AMI) restriction on the units. Rising costs have moved the average income to over 50% AMI at the 5th Ave. and 18th Ave. properties, and impact fee reductions were not applied to the three permits issued for the 5th Ave. and 18th Ave. properties. Also, the Agreement requires annual reporting to the City by means of a Colorado Housing and Finance Authority (CHFA) Long Form G-2; however, the form no longer exists.
To account for these changes, the BHA has requested that the Agreement be amended by:
1. Removing the 5th Ave. and 18th Ave. properties from the terms of the Agreement; and
2. Allowing annual compliance reporting via a listing of rents, family sizes, bedroom counts, and income limits.
STAFF ANALYSIS & RECOMMENDATIONS
Preserving existing affordable units is a fundamental tenet of affordable housing initiatives and is included in the Brighton Housing Needs Assessment (HNA) list of strategies. The existing thirteen affordable units on 5th Ave. and 18th Ave. that the BHA requests be removed from the Agreement are subject to restriction agreements as part of HUD’s Rental Assistance Demonstration program, and the BHA intends to preserve their affordable status.
The 5th Ave. and 18th Ave. units currently average less than 60% AMI. The City’s Proposition 123 affordable housing baseline of 1,357 units was established using the program’s 60% AMI or less threshold. Should any units included in the baseline rise above 60% AMI, they would no longer count as existing affordable inventory and would need to be replaced to meet the goal of 135 additional affordable units by the end of 2026. The 264-unit Retreat at Brighton Ridge affordable development is expected to be permitted by 2026 and would offset any loss of units in the Agreement. Also, units moving to a 60-80% AMI level will count toward the roughly 400 homes identified in the HNA as needed in that range.
Since impact fee reductions were not applied to the three 5th Ave. and 18th Ave. permits, removal of the units from the Agreement poses no financial implications to the City and is supported by staff. Staff recommend addressing conflicting AMI thresholds and sources that appear in the Agreement by specifying in the amendment use of the CHFA Income Limit and Maximum Rent Table for Adams County. This will be consistent with the requirements of future affordable housing projects. Staff also support allowing annual compliance reporting via a listing of rents, family sizes, bedroom counts, and income limits. In addition, the Agreement incorrectly references 65 S. 18th Ave. as 55 S. 18th Avenue, and the amendment includes a correction.
OPTIONS FOR CITY COUNCIL CONSIDERATION
The City Council has four options when reviewing the Agreement amendment request:
1. Approve the resolution approving the amendment;
2. Deny the resolution approving the amendment;
3. Approve the resolution approving the amendment with changes; or
4. Continue the item to be heard at a later, specified date if the City Council feels it needs additional information to consider the amendment.
ATTACHMENTS
• Resolution Approving the First Amendment to the Agreement for Affordable Housing Duplex Rental Assistance Demonstration Conversion
• First Amendment to the Agreement for Affordable Housing Duplex Rental Assistance Demonstration Conversion
• Agreement for Affordable Housing Duplex Rental Assistance Demonstration Conversion dated April 4, 2017
• Draft PowerPoint Presentation