CITY COUNCIL STUDY SESSION MEMORANDUM

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1 City and County of Broomfield, Colorado CITY COUNCIL STUDY SESSION MEMORANDUM To: From: Prepared by: Mayor and City Council Charles Ozaki, City and County Manager Kevin Standbridge, Deputy City and County Manager Cheryl St. Clair, Housing Program Manager Meeting Date Agenda Item # May 10, Agenda Title Broomfield Housing Authority Discussion Summary The City Council held a study session to discuss affordable housing on January 19, At the study session, a presentation was made by the Affordable Housing Community Task Force. The presentation included the data the Task Force had collected on housing needs in Broomfield, and they requested that City Council: 1) Prioritize affordable housing in the updated Comprehensive Plan to provide adequate inventory for an economically diverse community; 2) Create a plan for developing a broad spectrum of housing in considering the civic center development plans, generating a broader spectrum of housing options through the development review process, and identify resources Broomfield can contribute to achieve the goals of more housing options; and 3) Consider how to enhance the activity of the Broomfield Housing Authority by exploring neighboring community models. At the conclusion of the study session, the City Council requested a follow up study session to discuss the status and the history of the Broomfield Housing Authority; roles, responsibilities, and limits of the Authority; and to benchmark the structure and authority of Housing Authorities in neighboring communities as reference. This memorandum discusses those items. Prior Council Action At the October 13, 2015, meeting, City Council approved the request from the community task force for a Study Session to further discuss the issues surrounding affordable housing in Broomfield. After the January 19, 2016, Study Session, City Council agreed to periodic follow up discussions regarding the questions and issues raised by the Community Task Force. None at this time. N/A Financial Considerations Alternatives Proposed Actions/Recommendations City Council discussion and direction to staff on any desired action after the discussion. Item 1 - Page 1

2 Broomfield Housing Authority Discussion Page 2 BACKGROUND Public housing in the United States comes in all sizes and types, from scattered single-family houses to high-rise apartments for elderly families. Public housing encompasses a number of different programs, including the housing choice voucher program. The U.S. Department of Housing and Urban Development (HUD) provides federal funding to local housing authorities that manage their programs. There are approximately 1.2 million households living in public housing units, managed by some 3,300 Housing Authorities. A local government creates a Housing Authority, after determining the need through a public input and hearing process. Over the past few decades, as Congress has slowly reduced funding to HUD for these programs, Housing Authorities have creatively become the owner and developer of low and moderate income housing in addition to administering HUD funded programs. Private efforts exist also to address the continuing need. Housing Authorities have partnered with the private sector to create housing options by utilizing low-income housing tax credits, low interest loans provided through tax exempt bonds, through banks that receive Community Reinvestment Act (CRA) credit, and by leveraging the equity in the HUD financed properties they own. The Broomfield Housing Authority (BHA) was legally formed in 2002, under the Colorado Housing Authority statute. Prior to becoming a City and County government, Broomfield was served by the Adams County, Boulder County and the Jefferson County Housing Authorities. At the time of formation, City Council designated the Council as the governing board, the commissioners, of the Housing Authority. Powers of a Housing Authority A housing authority is governed by commissioners established by either appointment of the local jurisdiction s governing officials to serve as commissioners, i.e. City Council, or by appointment by the Mayor of citizens in the jurisdiction. A housing authority created pursuant to the Housing Authorities Law is a distinct, independent governmental entity from the city within which it operates. Under the Colorado statute referenced above, (attached as Appendix A) the powers of a housing authority are extensive. A Housing Authority has the power to ensure the jurisdiction which they serve has a continuing inventory of safe and sanitary housing for all residents of the jurisdiction. The Housing Authority may own and manage housing, may construct new housing, may incur debt, may work in conjunction or as an agent of the local government, and may act as a grantor or lender. A Housing Authority may also investigate housing conditions, and may establish entities controlled by the authority, such as development or redevelopment agencies, that could own and operate housing developments. Housing Authorities are typically funded through grants from HUD, although many have now leveraged the equity in their owned developments to fund new projects along with private financing. History of the Broomfield Housing Authority (BHA) 2002 At the time City Council established the BHA, Broomfield entered into an intergovernmental agreement (IGA) with the Jefferson County Housing Authority to provide for a minimum of 25 Housing Choice vouchers for use in Broomfield while the BHA attempted to secure a voucher program and other Broomfield housing programs from HUD. Housing vouchers are federally funded and provide a rent subsidy for income-qualified households. Due Item 1 - Page 2

3 Broomfield Housing Authority Discussion Page 3 to changes occurring at the U.S. Department of Housing and Urban Development (HUD), the BHA was unable to secure a voucher program. Boulder County Housing Authority also entered into an Intergovernmental Agreement with Broomfield to allow the Boulder County Housing Authority to continue servicing the clients living in Broomfield under their housing programs. Those agreements remain in effect Broomfield approved a reduction in the Public Land Dedication requirement for the Summit Apartments in exchange for the sale or rental of 20 units in the development to moderate income buyers or tenants Broomfield participated with Wonderland Homes to provide 15 homes in the Redleaf development for sale to homebuyers at or below 80% of the area median income. Wonderland Homes contributed $5,000 per home and Broomfield contributed development fees (deferred building permit fees, Service Expansion Fees and Use Tax) for the affordability of each home in the program The BHA and Broomfield Health and Human Services initiated the Tenant Based Rental Assistance (TBRA) Program with funding received from the Colorado Division of Housing. The TBRA Program provides rental assistance and supportive services such as job training and education, over a two-year period for up to 15 individuals/families. Starting in 2008 and continuing to the present, funding for the TBRA Program is provided by federal HOME Investment Partnership monies that Broomfield receives as a member of the Boulder/Broomfield Regional Consortium Broomfield entered into an agreement with a developer to build Broomfield Greens, a 50- unit affordable apartment building for seniors. A $500,000 grant from the State Division of Housing HOME Funds Program was received by the BHA to cover a portion of the construction costs. The BHA loaned the grant money to the project, and maintains a fractional ownership in the project. The BHA does have first right of refusal to purchase the property if the partnership decides to sell Broomfield joined with the City of Boulder, Boulder County and the City of Longmont to form the Boulder/Broomfield Regional Consortium and the Consortium was awarded HOME funding. Broomfield chose to allocate 100% of its allocation (average $65,000 per year) to continue the Tenant Based Rental Assistance Program to address the lack of rental housing assistance Broomfield entered into an agreement with the developer of Vantage Pointe Lofts, the developer would sell 21 units to eligible moderate income homebuyers in exchange for a reduction in the Public Land Dedication requirement Broomfield was defined by HUD as a metropolitan city under the Community Development Block Grant (CDBG) program and, in 2009, began receiving for the first time entitlement grantee funding. Broomfield determined the BHA would administer the CDBG funding. The BHA set up a housing rehabilitation program with the CDBG funding (average $205,000 annually) The CDBG and HOME funded programs are developed and implemented, and have served over 200 households to date The BHA applied for and was awarded $50,000 from the Foothills United Way to assist homeowners with repairs resulting from the flood and storm in September The grant assisted 10 Broomfield homeowners with cleanup and repairs. Item 1 - Page 3

4 Broomfield Housing Authority Discussion Page In July 2015, the BHA entered into an agreement with the Colorado Division of Housing to administer approximately 25 vouchers for the City and County of Broomfield. This opportunity allows the BHA to become an experienced voucher administrator and open opportunities to apply for future federal funding, if available. Funding The following table shows grant funding that has passed through the BHA budget as well as the contribution value of incentives made by the City and County of Broomfield to developers in exchange for affordable housing units. CCB/BHA Housing Program Funding On-going Annual funding - subject to Congressional appropriation Source/Type of Funds Amount Use of Funds CDBG approx $200,000 Home Rehabilitation received from HUD Mobile Home Repair Urgent Home Repair Housing Counseling Construction of privately owned affordable rentals HOME received from HUD Colorado Division of Housing HOME grant approx $65,000 Tenant Based Rental Assistance $500,000 Broomfield Greens 50 low-income senior rentals One-time Pass through grants Flood Repair received from Foothills United Way (2013) Neighborhood Stabilization Grant (HUD through state) CCB infrastructure sewer line $50,000 Home Repair/Cleanup $438,357 2 homes purchased out of foreclosure, rehabbed, & sold to low-income families in partnership with Habitat $101,597 Emerald Hill 14 home sales low-income buyers w/habitat City and County of Broomfield - one time contribution CCB Fee Waivers CCB exchange of fees/ongoing property tax for limited ownership CCB PLD reduction CCB PLD reduction $9,856 per home total $147,840 Redleaf 15 under market home sales $75,967 Broomfield Greens 50 low-income senior rentals for 50 years Summit Apts 20 under market rentals for 10 years Vantage Point 2 under market home sales This represents Broomfield participation in the preservation or creation of 233 homes for low and moderate income families, and rental assistance to 60 families. Item 1 - Page 4

5 Broomfield Housing Authority Discussion Page 5 Following is a map which shows the distribution of homes directly benefitted from the above described programs. Neighboring Community Housing Authorities Item 1 - Page 5

6 Broomfield Housing Authority Discussion Page 6 Below is a table which summarizes the activity of the neighboring communities housing authorities. All of the housing authorities manage voucher programs with the exception of Westminster, who is served by Adams and Jefferson Counties for vouchers. Development and ownership of affordable housing is addressed in every community either by the city housing authority or by the county housing authority in the cases of Arvada and Westminster. Comparison of Neighboring Community Housing Authority Structure Rental Assistance Housing Authority Commissioners CDBG/HOME Administration Voucher Program - Units Affordable Rental Units Owned Boulder Housing Partners (City of Boulder Housing Authority) Appointed 7-member Citizen Board 1 Council Liaison NO (public housing) 453 (affordable) 139 market Boulder County Housing Authority (BCHA) (serves Lafayette and Louisville*) Adams County Housing Authority (ACHA) Jefferson County Housing Authority Arvada Housing Authority Metro West Housing Solutions (Lakewood Housing Authority) Westminster Housing Authority Longmont Housing Authority 3 County Commissioners Appointed 7- member Citizen Board Appointed 5- member Citizen Board 7 City Council Members Appointed 5-member Citizen Board 7 City Council Members Appointed 5-member Citizen Board 1 Council Liaison HOME (public housing) NO 1, (public housing) CDBG rehab CDBG rehab 1, (public housing) 508 none (all owned by JCHA) NO 1,411 1,255 JCHA JCHA and ACHA JCHA and ACHA rehab NO * Boulder County HA absorbed the Louisville Housing Authority in 2012 Voucher Program - serves very low income subsidized by federal government Public Housing =- Very low income subsidized by federal government Affordable units = non-rent subsidized, restricted rents due to tax credits, tax-exempt bonds, grants, other city /county fee waivers, city/county housing development funding The following tables are an overview of the current Broomfield housing stock, the first table shows the rental housing inventory, the number of units, the average rent paid without utilities and the income needed to qualify for a unit. Item 1 - Page 6

7 Broomfield Housing Authority Discussion Page 7 Broomfield Rental Housing Inventory Data (2nd and 3rd Quarter 2015) (As reported to the Apartment Association of Metro Denver) Type of Housing Number of Units Average Rent* Vacancy Rate Hourly Income Rate to Afford Rent* Rental - efficiency 19 $ 1, % $ Rental - one bedroom 2,169 $ 1, % $ Rental - 2 bedroom/1 bath 649 $ 1, % $ Rental - 2 bedroom/2 bath 1,436 $ 1, % $ Rental - 3 bedroom 94 $ 2, % $ Rental - other 31 $ 1, % $ Annual Income to Afford Rent* $ 42,840 $ 47,808 $ 42,804 $ 63,432 $ 77,220 $ 64,692 Total 4,398 *Rents are based on tenants paying electricity and gas. ** Based on 40 hour per week, 30% of income for housing cost, not including utilities. The next table shows the housing stock available for homeownership, the appraised value range and the range of income needed for mortgage approval. Type of Housing Broomfield Home Ownership Inventory (From Broomfield Assessor 1st Quarter 2016) Number of Homes Appraised Value Hourly Income to Afford Mortgage*** Annual Income to Afford Mortgage Condo 813 less than $250,000 Approx. $36 Approx. $75,000 Condo 93 $251, ,000 $36 -$50.48 $75,000-$116,667 Duplex/Triplex 23 less than $250,000 Approx. $36 Approx. $75,000 Duplex/Triplex 3 $251, ,000 $36 -$50.48 $75,000-$116,667 Single Family owned 5,061 less than $250,000 Approx. $36 Approx. $75,000 Single Family owned 4,747 $251, ,000 $36 -$50.48 $75,000-$116,667 Single Family owned 2,767 $351,000 - $450,000 $ $64.90 $117,000-$150,000 Single Family owned 3,934 over $450,000 $ $150,000 + Total 17,441 *** Based on 40 hour per week, 30% of income for housing cost, 10% down payment Item 1 - Page 7

8 Broomfield Housing Authority Discussion Page 8 The following table shows the average income ranges of Broomfield residents and the approximate number of existing rental units and for sale homes available to each income range. These numbers represent a reported sampling of rental units and give a snapshot of Broomfield resident incomes and costs of housing. Number of Households in Broomfield by Income Range*** Number of Market Based Rentals Available Number of Homes Available $0-$24,999 2, $25,000 - $34,999 1, $35,000-49,999 1,801 2,837 0 $50,000-$74,999 3,044 4,304 0 $75,000-$99,999 3,062 4,398 5,897 $100,000-$149,999 4,143 4,398 13,507 $150,000+ 2,468 4,398 17,441 *** Data from ACS 2010 census with 2014 inflation-adjusted dollars Broomfield residents looking to acquire housing who fall into the 0 available rental housing units are either paying more than 30% of their income for rent, are over-housed, meaning families who are doubling and tripling up in homes to afford rent, or are moving out of the area. Large numbers of households acquired their housing when prices were relatively lower. The next two tables include the average annual salaries for comparison with the prior table. Local Employer Hourly Wage Data Tables for Broomfield (Data obtained from as of March 2016) Median Hourly Rate by Employer Type Employer Type Hourly Rate Annual* Company $ $ 34,403 Private Practice/Firm $ $ 38,251 Other Organization $ $ 34,154 Hospital $ $ 37,440 Franchise** $ $ 11,325 Self-Employed $ $ 66,560 School/School District $ $ 40,144 Government - State & Local $ $ 45,198 Government - Federal $ $ 31,200 Median Hourly Rate by Industry Industry Hourly Rate Annual* Manufacturing $ $ 40,248 Health Care $ $ 32,531 Medical Device $ $ 47,694 Manufacturing Health Care Service $ $ 32,032 Pharmaceutical $ $ 41,496 Manufacturing Telecommunications $ $ 63,419 Grocery Store or Supermarket** $ $ 11,274 *Annual income assumes 40 hours per week, 52 weeks per year, except as noted. ** Assumes average of 20 hours per week. NEXT STEPS Direction from City Council to staff on next steps. Item 1 - Page 8

9 Appendix A COLORADO REVISED STATUTES *** This document reflects changes current through all laws passed at the First Regular Session of the Seventieth General Assembly of the State of Colorado (2015) *** Short title TITLE 29. GOVERNMENT - LOCAL HOUSING ARTICLE 4.HOUSING PART 2. CREATING HOUSING AUTHORITIES C.R.S (2015) This part 2 shall be known and may be cited as the "Housing Authorities Law". HISTORY: Source: L. 35: p. 523, 1.CSA: C. 82, 29.CRS 53: C.R.S. 1963: Cross references: For cooperation with the federal government regarding housing projects, see article 55 of title 24; for relocation assistance and land acquisition policies, see article 56 of title 24. ANNOTATION Law reviews. For article, "Legality of the Denver Housing Authority", see 12 Rocky Mt. L. Rev. 30 (1939). For article, "Municipal Powers and the Public Purpose Doctrine", see 21 Rocky Mt. L. Rev. 277 (1949). For article, "Legal Classification of Special District Corporate Forms in Colorado", see 45 Den. L.J. 347 (1968). Section is constitutional. This section does not violate article XX, Colo. Const., since it is of public concern within the police power of the state. People ex rel. Stokes v. Newton, 106 Colo. 61, 101 P.2d 21 (1940). And was enacted to make federal funds and credits available. To take advantage of the funds and credit provided by the United States Housing Act, 42 U.S.C.A , our general assembly enacted this article. People ex rel. Stokes v. Newton, 106 Colo. 61, 101 P.2d 21 (1940). Housing authority created pursuant to the Housing Authorities Law is a distinct, Item 1 - Page 9

10 independent governmental entity from the city within which it operates. Roe v. Hous. Auth. of City of Boulder, 909 F. Supp. 814 (D. Colo. 1995) Petition for creation of authority - notice - hearing (1) Any twenty-five residents of the city may file a petition with the city clerk setting forth that there is a need for an authority to function in the city. Upon the filing of such a petition, the city clerk shall give notice of the time, place, and purposes of a public hearing at which the council will determine the need for such an authority in the city. Such notice shall be given at the city's expense by publishing a notice, at least ten days preceding the day on which the hearing is to be held, in a newspaper having a general circulation in the city, or, if there is no such newspaper, by posting such a notice in at least three public places within the city at least ten days preceding the day on which the hearing is to be held. (2) Upon the date fixed for said hearing, held upon notice as provided in this section, a full opportunity to be heard shall be granted to all residents and taxpayers of the city and to all other interested persons. After such a hearing, the council shall determine: (a) Whether unsanitary or unsafe inhabited dwelling accommodations exist in the city; or (b) Whether there is a lack of safe or sanitary dwelling accommodations in the city available for all the inhabitants thereof. (3) In determining whether dwelling accommodations are unsafe or unsanitary, the council shall take into consideration the following: The physical condition and age of the buildings; the degree of overcrowding; the percentage of land coverage; the light and air available to the inhabitants of such dwelling accommodations; the size and arrangement of the rooms; the sanitary facilities; and the extent to which conditions exist in such buildings which endanger life or property by fire. (4) If it determines that either of the conditions enumerated in subsection (2) of this section exist, the council shall adopt a resolution so finding and shall cause notice of such determination to be given to the mayor or such other appointing authority as is otherwise provided by charter or ordinance who shall thereupon appoint, as provided in section , no more than nine commissioners to act as an authority; except that, in any city and county having a population of more than three hundred thousand, the mayor or such other appointing authority as is otherwise provided by charter or ordinance shall appoint nine commissioners to act as an authority whose appointments shall be conditioned upon confirmation by the council. The number of commissioners shall be specified by the council in the resolution. A certificate signed by such commissioners shall then be filed with the division of local government in the department of local affairs and there remain of record, setting forth that a notice has been given and public hearing has been held, that the council made a determination after such hearing and that the mayor or such other appointing authority as is otherwise provided by charter or ordinance has appointed them as Item 1 - Page 10

11 commissioners. Upon the filing of such certificates with said division, the commissioners and their successors shall constitute a housing authority, which shall be a body corporate and politic. (5) The boundaries of such authority shall include the same geographical area as is then or thereafter included within the boundaries of the city which caused such authority to be created. (6) If the council determines after a hearing that neither of the conditions enumerated in subsection (2) of this section exist, it shall adopt a resolution denying the petition. After three months have expired from the date of the denial of such petition, subsequent petitions may be filed and new hearings and determinations made thereon. (7) In any suit, action, or proceeding involving the validity or enforcement of any bond, contract, mortgage, trust indenture, or other agreement of the authority, the authority shall be conclusively deemed to have been established in accordance with the provisions of this part 2 upon proof of the filing of the aforesaid certificate. A copy of such certificate, duly certified by the division of local government, shall be admissible in evidence in any such suit, action, or proceeding and shall be conclusive proof of the filing and contents thereof. (8) If the council of any city denies any petition filed for the creation of a housing authority, in accordance with the provisions of subsection (6) of this section, and the residents of such city determine that there is in fact a shortage of decent, safe, and sanitary dwelling accommodations in the city, a petition may be filed with the council requesting that the question of the approval or disapproval of creating a housing authority be submitted to a vote of the registered electors of such city. If the petition, which may consist of one or more separate copies, contains the signatures and residence addresses of registered electors of such city equal in number to not less than five percent of the votes cast for governor or for president and vice-president of the United States at the last preceding general election held within such city, the council shall cause a special election to be held on the question of the creation of a housing authority. All registered electors within the city shall be eligible to vote at said election, which shall be conducted insofar as possible in accordance with the provisions of sections to ; except that the question to be voted on shall be the creation of a housing authority. HISTORY: Source: L. 35: p. 527, 4.CSA: C. 82, 32.CRS 53: L. 63: p. 557, 2. C.R.S. 1963: L. 65: p. 727, 2.L. 76: (4) and (7) amended, p. 596, 9, effective July 7.L. 87: (8) amended, p. 323, 68, effective July 1.L. 91: (4) amended, p. 725, 1, effective April 20.L. 99: (4) amended, p. 128, 2, effective March 24.L. 2000: (4) amended, p. 881, 3, effective August Appointment of commissioners (1) The authority shall consist of commissioners selected by the council in the manner Item 1 - Page 11

12 provided in either subsection (2) or (3) of this section. (2) The council may provide that all members of the governing body of the city shall ex officio be appointed the commissioners of the authority. The terms of office of such commissioners shall be coterminous with their terms of office on the governing body. For the purposes of this subsection (2), the term "governing body" means the mayor and council, board of trustees, board of commissioners, legislative body, or other body charged with governing the city. The mayor or, if the city has no mayor, the president of the council or such other presiding officer of the council shall ex officio be chairman of the commissioners. The commissioners shall select from among their members a vice-chairman. (3) (a) The council may provide that an authority shall consist of no more than nine commissioners appointed by the mayor or such other appointing authority as is otherwise provided by charter or ordinance; except that the council of a city and county having a population of more than three hundred thousand may provide that such authority shall consist of nine commissioners appointed by the mayor or such other appointing authority as is otherwise provided by charter or ordinance. The council may also provide that the mayor or such other appointing authority as is otherwise provided by charter or ordinance shall designate the first chairman. Not more than one of such commissioners may be a city official. In the event that a city official is appointed as a commissioner of an authority, acceptance or retention of such appointment shall not be deemed a forfeiture of his or her office, or incompatible therewith, or affect his or her tenure or compensation in any way. The term of office of a commissioner of an authority who is a city official shall not be affected or curtailed by the expiration of the term of his or her city office. (b) The commissioners who are appointed under the provisions of this subsection (3) shall be designated by the mayor or such other appointing authority as is otherwise provided by charter or ordinance to serve for terms that are staggered from the date of their appointment such that, to the extent possible, the terms of an equal number of commissioners end each year. Thereafter, the term of office shall be five years. A commissioner shall hold office until his or her successor has been appointed and has qualified. Vacancies other than by reason of expiration of terms shall be filled for the unexpired term. A majority of the commissioners shall constitute a quorum. The mayor or such other appointing authority as is otherwise provided by charter or ordinance shall file with the city clerk a certificate of the appointment or reappointment of any commissioner, and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner. The authority shall select from its members a vice-chairman and a chairman when the office of the first chairman becomes vacant. (c) Until such time as the council takes action pursuant to subsection (6) of this section, all appointments of the commissioners appointed pursuant to this subsection (3) shall be conditioned upon confirmation by the council as required by section (4). This paragraph (c) shall apply to original and successor appointments and to appointments to fill vacancies. (3.5) Notwithstanding any other provision to the contrary, commencing on and after August Item 1 - Page 12

13 2, 2000, as new appointments are made to authorities pursuant to subsection (3) of this section, such appointments shall be made so that not less than one commissioner of each authority shall be an individual who is directly assisted by the authority and who may, if provided in a plan of the authority, be elected by individuals directly assisted by the authority. This subsection (3.5) shall not apply to any authority with fewer than three hundred public housing units if the authority provides reasonable notice to the resident advisory board of the opportunity for not less than one individual to serve as a commissioner of the authority as provided in this subsection (3.5) and, within a reasonable time after receipt by such board of the notice, the authority is not notified of the intention of any such individual to serve as a commissioner. (4) A commissioner shall receive no compensation for his services but shall be reimbursed for actual and necessary expenses incurred in the performance of his official duties. (5) An authority may employ a secretary who shall be executive director, technical experts, and such other officers, agents, and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties, and compensation. An authority may call upon the corporation counsel or chief law officer of the city for such legal services as it may require, or it may employ its own counsel and legal staff. An authority may delegate to one or more of its agents or employees such powers or duties as it deems proper. (6) (a) Any council may, by resolution, change the method of appointment of commissioners after a proper notice and hearing and set a date for the changed method to become effective. (b) Subsequent to the appointment of nine commissioners by the mayor and their confirmation by the council pursuant to section (4), any council of a city and county having a population of more than three hundred thousand may, by resolution, change the number of commissioners after a proper notice and hearing and set a date for the changed number to become effective. (7) The terms of office of present commissioners of authorities created under this section shall expire July 1, Prior to such date, the council shall appoint new commissioners, as provided in either subsection (2) or (3) of this section, such appointments to be effective July 1, Duty of the authority and commissioners The authority and its commissioners are under a statutory duty to comply or to cause strict compliance with all provisions of this part 2 and the laws of the state of Colorado, and, in Item 1 - Page 13

14 addition thereto, with each term, provision, and covenant in any contract, on the part of the authority to be kept or performed by the authority Powers of authority (1) An authority shall constitute a body both corporate and politic, exercising public powers and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this part 2, including the following powers in addition to others granted in this section: (a) To investigate living, dwelling, and housing conditions and the means and methods of improving such conditions; (b) To determine where unsafe, unsanitary, or substandard dwelling or housing conditions exist; (c) To study and make recommendations concerning the city plan in relation to the problem of clearing, replanning, and reconstruction of areas in which unsafe, unsanitary, or substandard dwelling or housing conditions exist, and the providing of dwelling accommodations for persons of low income, and to cooperate with any city or regional planning agency; (d) To prepare, carry out, and operate projects and to provide for the construction, reconstruction, improvement, alteration, or repair of any project or any part thereof; (d.3) To grant or lend moneys or otherwise provide financing to any person, firm, corporation, the city, or a government for any project or any part thereof; (d.5) To pledge or otherwise encumber any of its moneys in support of or in connection with a project; (d.7) To establish entities controlled by the authority that may own, operate, act, invest in as a partner or other participant, or take any and all steps necessary or convenient to undertake or otherwise develop a project; (e) To take over by purchase, lease, or otherwise any project undertaken by any government or by the city; (f) To manage as agent of the city any project constructed or owned by the city; (g) To act as agent for the federal government in connection with the acquisition, construction, operation, or management of a project or any part thereof; Item 1 - Page 14

15 (h) To arrange with the city or with a government for the furnishing, planning, replanning, opening, or closing of streets, roads, roadways, alleys, or other places or facilities for the acquisition by the city or a government of property, options, or property rights, or for the furnishing of property or services in connection with a project; (i) To lease or rent any of the dwellings or other accommodations, or any of the lands, buildings, structures, or facilities embraced in any project, and to establish and revise the rents or charges therefor; (j) To enter upon any buildings or property in order to conduct investigations or to make surveys or soundings; (k) To purchase, lease, obtain options upon, or acquire by eminent domain, gift, grant, bequest, devise, or otherwise any property, real or personal, or any interest therein from any person, firm, corporation, the city, or a government; (l) To sell, exchange, transfer, assign, or pledge any property, real or personal, or any interest therein to any person, firm, corporation, the city, or a government; (m) To own, hold, clear, and improve property and to insure or provide for the insurance of the property or operations of the authority against such risks as the authority may deem advisable; (n) To procure assurance from a government of the payment of any debts or parts thereof secured by mortgages made or held by the authority on any property included in any project; (o) To borrow money upon its bonds, notes, debentures, or other evidences of indebtedness, and to secure the same by pledges of its revenues and, subject to the limitations imposed by this part 2, by mortgages upon property held or to be held by it, or in any other manner: (I) In connection with any loan, to agree to limitations upon its right to dispose of any project or part thereof, or to undertake additional projects; (II) In connection with any loan by a government, to agree to limitations upon the exercise of any powers conferred upon the authority by this part 2; (p) To invest any moneys held in reserve or sinking funds or any moneys not required for immediate disbursement in property or in securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S., or to deposit the same or any part thereof in any depository authorized in section , C.R.S. For the purpose of making such deposits as provided in this paragraph (p), the commissioners may appoint, by written resolution, one or more persons to act as custodians of the moneys of the authority. Such persons shall give surety bonds in such amounts and form and for such purposes as the authority requires. Item 1 - Page 15

16 (q) To sue and be sued; (r) To have a seal and to alter the same at pleasure; (s) To have perpetual succession; (t) To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority; (u) To make and from time to time amend and repeal bylaws, rules, and regulations not inconsistent with this part 2, to carry into effect the powers and purposes of the authority; (v) To conduct examinations and investigations and to hear testimony and take proof under oath at public or private hearings on any matter material for its information; (w) To issue subpoenas requiring the attendance of witnesses or the production of books and papers and to issue commissions for the examination of witnesses who are out of the state, unable to attend before the authority, or excused from attendance; (x) To make available to such agencies, boards, or commissions as are charged with the duty of abating nuisances or demolishing unsafe structures within its territorial limits its findings and recommendations with regard to any building or property where conditions exist which are dangerous to the public health, morals, safety, or welfare; and (y) To do all things necessary or convenient to carry out the powers given in this part 2. (2) Any of the investigations or examinations provided for in this part 2 may be conducted by the authority or by a committee appointed by it, consisting of one or more commissioners, or by counsel, or by an officer or employee specially authorized by the authority to conduct it. Any commissioner, counsel for the authority, or any person designated by it to conduct an investigation or examination has the power to administer oaths, take affidavits, and issue subpoenas or commissions. An authority may exercise any of the powers conferred upon it by this section, either generally or with respect to any specific project through or by any agent which it may designate, including any corporation formed under the laws of this state, and, for such purposes, an authority may cause one or more corporations to be formed under the laws of this state or may acquire the capital stock of any corporation. Any corporate agent, all of the stock of which is owned by the authority or its nominee, to the extent permitted by law, may exercise any of the powers conferred upon the authority. (3) In addition to all of the other powers conferred upon it by this section, an authority may do all things necessary and convenient to carry out the powers expressly given in this part 2. No provisions with respect to the acquisition, operation, or disposition of property by public bodies shall be applicable to an authority unless the legislature specifically so states. Item 1 - Page 16