TC Ord. No. 19-01 Amending Chapter 3.08 Sales Tax; Chapter 3.12 Real Property transfer Tax; Enacting Chapter 3.14 Community Housing Incentives; and Amending Chapter 13.08 Public Services of the Avon Municipal CodeA
Avon
C O 1 ORAD O
TOWN OF AVON, COLORADO
ORDINANCE NO. 19-01
AMENDING CHAPTER 3.08 SALES TAX; CHAPTER 3.12 REAL
PROPERTY TRANSFER TAX; ENACTING CHAPTER 3.14
COMMUNITY HOUSING INCENTIVES; AND AMENDING CHAPTER
13.08 PUBLIC SERVICES OF THE AVON MUNICIPAL CODE
WHEREAS, the Town of Avon, Colorado ("Town") is a home rule municipality aild
political subdivision of the State of Colorado ("State") organized and existing under a home rule
charter ("Charter") pursuant to Article XX of the Constitution of the State; and
WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule
powers of the Town, the Town Council has the power to make and publish ordinances necessary
and proper to provide for the safety, preserve the health, promote the prosperity, and improve the
morals, order, comfort, and convenience of its inhabitants; and
WHEREAS, Town Council adopted the Town of Avon Community Housing Plan on
December 13, 2018, which included a policy to "formalize a fee waiver/reimbursement process"
and which included an Appendix A: Avon Community Housing Plan — Work Plan that
contemplated formalizing a Fee Waiver Program; and
WHEREAS, Town Council adopted the Town of Avon Comprehensive Plan which includes
Policy E.1.3: which states in part, "Provide attainable housing through alternative means,
including ... waiver of development and building fees, ..."; and
WHEREAS, the Town Council finds that amendments to the Town of Avon Municipal
Code will promote the health, safety and general welfare of the Town of Avon community; and
WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that
the Town Council desires to comply with the requirements of the Town of Avon Home Rule
Charter by setting a public hearing in order to provide the public an opportunity to present
testimony and evidence regarding the application and that approval of this Ordinance on First
Reading does not constitute a representation that the Town Council, or any member of the Town
Council, supports, approves, rejects, or denies this ordinance; and,
WHEREAS, Town Council conducted a public hearing on June 11, 2019 and continued the
public hearing to June 25, 2019.
Ord. 19-01
June 25, 2019 SECOND READING
Page 1 of 8
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF AVON, COLORADO:
Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein
by reference and adopted as findings and determinations of the Town Council.
Section 2. Enactment of Section 3.08.036 — Tax credit for Community Housing. A new
Section 3.08.036 of the Avon Municipal Code is hereby enacted to read as follows:
1.08.036 — Tax credit for Community Housing. Notwithstanding any other provision of
this Chapter, there may be granted a sales tax credit to each person owing tax on the sale
of building materials and fixtures used in a Community Housing project provided that such
sales tax credit is approved by Council by resolution in accordance with Chapter 3.14.
Neither the ability of the Town to grant this tax credit nor the repeal or termination of this
tax credit shall constitute a tax rate increase, the imposition of a new tax or a tax policy
change."
Section 3. Amendment of Section 3.12.060 — Exemptions. Section 3.12.060 of the Avon
Municipal Code is hereby amended to recodify Section 3.12.060(17) as Section 3.12.060(14); to
recodify and amend Section 3.12.060(14) to Section 3.12.060(15) to read as set forth in this
section; to recodify Section 3.12.060(15) to Section 3.12.060(17); to recodify Section
3.12.060(16) to Section 3.12.060(18); to enact a new Section 3.12.060(16); such that Sections
3.12.060(14) through (18) shall read as follows:
1.12.060 (14) The subsequent transfer of a residence involved in a "tax free" or "tax
deferred" trade under the Internal Revenue Code wherein the interim owner acquires
property for the sole purpose of reselling that property as part of a qualified exchange and
the property is resold within twenty-four (24) months after the first transfer. In these cases,
the first transfer of title is subject to the real property transfer tax and the subsequent
transfer will only be exempt as long as a transfer tax has been paid in connection with the
first transfer of such residence in such exchange. In the event the consideration for the
subsequent transfer is greater than the consideration for the first transfer, transfer tax shall
be due on such increased amount of consideration,
(15) Any sale or conveyance of real property or improvements for the purpose of
constructing or otherwise providing Community Housing as defined in Chapter 3.14;
provided, that the parties to the transaction shall apply to the Town Council for the
exemption prior to the occurrence of the transaction from which exemption is sought in
accordance with Chapter 3.14 Community Housing Incentives and that the property shall
be subject to a deed restriction that protects and maintains the Community Housing for the
benefit of the Town.
(16) Transfers of Community Housing, as defined in Section 3.14.020, subject to a deed
restriction to qualified purchasers provided that the deed restriction that protects and
maintains such Community Housing for the benefit of the Town is in compliance with all
terms and conditions of such deed restriction.
Ord. 19-01
June 25, 2019 SECOND READING
Page 2 of 8
(17) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for
any sale or conveyance of real property and completed improvements for occupancy as a
primary residence, provided the following conditions are met:
a. The same applicant has not previously received an exemption pursuant to this
subsection;
b. An application for exemption is filed with the Town Manager or his or her designee,
which application is accompanied by:
1. An affidavit that the real property is being purchased for use as a primary residence
and not for investment or resale (provided that a co -signor shall not disqualify the
exemption for the applicant where the co -signor is signing for the sole purpose of
facilitating the financing qualifications of the applicant/primary resident and signs an
affidavit that the co -signor is not a co -purchaser for investment or resale purposes); and
2. A promissory note in the amount of the tax otherwise owing, together with interest
accruing at the rate hereinafter provided, providing that the tax and the promissory note
including accrued interest shall be due and payable in full in the event the applicant shall
fail to occupy and use the property as a primary residence within the timeframe
established under the definition of primary residence found in Section 3.12.020 or shall
cease to use the property as his or her primary residence within one (1) year after closing
and granting to the Town a lien securing such indebtedness, which lien shall be
subordinate to any first mortgage or deed of trust of record.
c. The exemption applies only to the portion of the transfer tax actually paid by the
buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the
transaction.
(18) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for
any sale or conveyance of real property and completed improvements for occupancy as a
primary residence, provided that the following conditions are met:
a. The applicant previously received a primary residence exemption pursuant to Section
3.12.060(17) and the applicant has satisfied the conditions of subsection (17)b.1. and 2. of
Section 3,12.060; and
b. An application for exemption is filed with the Town Manager or his or her designee,
which application is accompanied by:
1. An affidavit that the applicant's current primary residence used to satisfy the
requirements of Section 3.12.060(17) is within the Town; that the applicant meets the
definition of an Eagle County employee; that the real property is being purchased for use
as a new primary residence and not for investment or resale (provided that a co -signor
shall not disqualify the exemption for the applicant where the co -signor is signing for the
sole purpose of facilitating the financing qualifications of the applicant/primary resident and
signs an affidavit that the co -signor is not a co -purchaser for investment or resale
purposes); and
2. A promissory note in the amount of the tax otherwise owing, together with interest
accruing at the rate hereinafter provided, providing that the tax and the promissory note
including accrued interest shall be due and payable in full in the event that the applicant
Ord. 19-01
June 25, 2019 SECOND READING
Page 3 of 8
shall fail to occupy and use the property as a primary residence within the timeframe
established under the definition of primary residence found in Section 3.12.020 or shall
cease to use the property as his or her primary residence or shall cease to meet the
definition of an Eagle County employee within one (1) year after closing and granting to the
Town a lien securing such indebtedness, which lien shall be subordinate to any first
mortgage or deed of trust of record; and
c. The exemption applies only to the portion of the transfer tax actually paid by the
buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the
transaction.
Section 4. Enactment of Section 3.14 — Community Housing Incentives. Section 3.14 of
the Avon Municipal Code is hereby enacted to read as follows:
1.14 Community Housing Incentives.
3.14.010. Purpose. Council may elect to promote Community Housing through the use
of Community Housing Incentives, including the credit, exemption or waiver of taxes and/or
fees which are otherwise applicable to residential development. The approval of
Community Housing Incentives shall be in Council's sole discretion. The value of any
Community Housing Incentive approved by Council shall be less than or reasonably
commensurate with the value of the proposed Community Housing, which shall be
determined in Council's sole discretion. The Community Housing Incentive shall not apply
and shall not be granted to any Community Housing that is provided to satisfy employee
housing mitigation required pursuant to Title 7 - Development Code.
3.14.020. Definitions
Community Housing means residential housing which is subject to a deed restriction that
limits use to long-term residential use as a primary residence by qualified persons and
which deed restriction may impose other restrictions and limitations and may include terms
deemed appropriate in the Council's sole discretion, including but not limited to controls on
the resale price of such residential property, and which deed restriction is enforceable by
the Town.
Community Housing Incentive means a tax and/or fee credit, exemption, waiver or
refund approved by resolution in accordance with this Chapter 3.14.
3.14.030. Approval by Resolution. Any credit, exemption or waiver of taxes or fees
shall be approved by Council by resolution, which approval shall be in Council's sole
discretion. The resolution shall include the following minimum elements;
(1) The Community Housing project shall be defined by location, type of residential units,
and quantity of residential units;
(2) The taxes and/or fees that are subject to a credit, exemption and/or waiver shall be
defined, and may be apportioned for a development project that includes both
Community Housing and other residential and/or commercial elements;
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June 25, 2019 SECOND READING
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(3) The form of the deed restriction that shall protect and maintain such Community
Housing for the benefit of the Town shall be included with the resolution and the
resolution shall accept or authorize the acceptance and execution of the deed
restriction;
(4) The resolution shall include a finding that the tax and/or fee credits, exemptions and/or
waivers are necessary to promote Community Housing that meets a current or
projected housing need for the Avon community; and,
(5) The resolution shall include a finding of public benefit for providing such tax and/or fee
credit, exemption and/or waiver.
3.14.040. Sales Tax. Council may provide a tax credit for the amount of sales tax
imposed upon building materials and fixtures delivered, installed and/or consumed in
Community Housing projects. Council may determine to provide a partial tax credit as
determined appropriate by Council for buildings with mixed Community Housing and
commercial uses and/or free market residential units. Neither the ability of the Town to
grant this tax credit nor the termination of this tax credit shall constitute a tax rate increase,
the imposition of a new tax or a tax policy change.
3.14.050. Real Property Transfer Tax. Council may provide an exemption for the real
property transfer tax on property that is conveyed to construct or otherwise provide a
Community Housing project. Council may determine to provide a partial tax credit as
determined appropriate by Council for buildings with mixed Community Housing and
commercial uses and/or free market residential units. Neither the ability of the Town to
grant this tax credit nor the termination of this tax credit shall constitute a tax rate increase,
the imposition of a new tax or a tax policy change.
3.14.060. Development Code Fees. Council may provide a waiver, refund or
reimbursement of Development Application review fees that are required pursuant to Title
7 — Development Code. The cost for third party consultants and professionals, studies and
reports are not included in the Development Application review fees that can be waived,
refunded or reimbursed under this Chapter 3,14. Council may determine to provide a
partial fee waiver, refund or reimbursement as determined appropriate by Council for
buildings with mixed Community Housing and commercial uses and/or free market
residential units.
3.14.070. Avon Tap Fees. Council may allow the tap fees to be credited towards the
cost of required water line upgrades or extensions, may allow deferment of tap fee
payment, or may allow a combination of credit and/or deferment of tap fees that are
required pursuant to Chapter 13.08 — Rates and Charges of Title 13 — Public Services.
Council may determine to provide a partial fee credit or fee deferment as determined
appropriate by Council for buildings with mixed Community Housing and commercial uses
and/or free market residential units.
3.14.080. Building Permit fees. Council may provide a waiver of Plan Review and
Building Permit fees that are required pursuant to Title15 — Building Code. Council may
Ord. 19-01
June 25, 2019 SECOND READING
Page 5 of 8
determine to provide a partial fee waiver, refund or reimbursement as determined
appropriate by Council for buildings with mixed Community Housing and commercial uses
and/or free market residential units.
Section 5. Amendment of Section 13.08.030 — Classification of customers. Section
13.08.030 of the Avon Municipal Code is hereby amended to enact a new sub -section (4) to read
as follows:
"(4) Community Housing. Residential use which meets the definition of Community
Housing set forth in Section 3.14.020."
Section 6. Enactment of Section 13.08.045 — Tap fee waiver for Community Housing. A
new Section 13.08.045 of the Avon Municipal Code is hereby enacted to read as follows:
"13.08.045 — Tap fee deferral for community housing. Town Council may defer tap fees
for residential units in a Community Housing project pursuant to the procedures set forth in
Chapter 3.14."
Section 7. Codification Amendments. The codifier of the Town's Municipal Code,
Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes
as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal
Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any
typographical error in the enacted regulations, provided that such correction shall not
substantively change any provision of the regulations adopted in this Ordinance. Such
corrections may include spelling, reference, citation, enumeration, and grammatical errors.
Section 8. Interpretation. This Ordinance shall be interpreted and applied to comply in all
respects with Article X, Section 20, of the Colorado Constitution, in its application to any person
or circumstance and no part of this Ordinance shall be interpreted or applied to constitute a tax
policy change that would require voter approval.
Section 9. Non -Severability. If any provision of this Ordinance, or the application of such
provision to any person or circumstance, is for any reason held to be invalid or held to be in
conflict with Article X, Section 20, of the Colorado Constitution, such invalidity or conflict shall
invalidate this Ordinance in its entirety. The Town Council hereby declares that it would have
passed this Ordinance and each provision thereof, even though any one of the provisions might
be declared unconstitutional or invalid. As used in this Section, the term "provision" means and
includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term
"application" means and includes an application of an ordinance or any part thereof, whether
considered or construed alone or together with another ordinance or ordinances, or part thereof,
of the Town.
Section 10. Effective Date. This Ordinance shall take effect thirty (30) days after the date of
final passage in accordance with Section 6.4 of the Avon Home Rule Charter.
Section 11. Safety Clause. The Town Council hereby finds, determines and declares that this
Ordinance is promulgated under the general police power of the Town of Avon, that it is
Ord. 19-01
June 25, 2019 SECOND READING
Page 6 of 8
promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and
welfare. The Town Council further determines that the Ordinance bears a rational relation to the
proper legislative object sought to be obtained.
Section 12. No Existing Violation Affected. Nothing in this Ordinance shall be construed to
release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or
affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability
incurred, or any cause or causes of action acquired or existing which may have been incurred or
obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any
such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall
be treated and held as remaining in force for the purpose of sustaining any and all proper actions,
suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and
for the purpose of sustaining any judgment, decree or order which can or may be rendered,
entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or
declaring such penalty or liability or enforcing such right, and shall be treated and held as
remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and
appeals pending before any court or administrative tribunal.
Section 13. Publication. The Town Clerk is ordered to publish this Ordinance in accordance
with Chapter 1.16 of the Avon Municipal Code.
INTRODUCED AND ADOPTED ON FIRST READING AND
HEARING on May 28, 2019 and setting such public hearing for
Chambers of the Avon Municipal Building, located at One Lake
continuing the public hearing to June 25, 2019.
B
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—
Sarah Smith Hymes, or
ATTEST:
REFERRED TO PUBLIC
une 11, 2019 at the Council
Street, Avon, Colorado, and
Brenda Torres, Deputy T
ADOPTED ON SECOND AND FINAL READING on June 25, 2019.
Sarah Smith Hymes, Mayor
APPRO
PMj1 Wisor, ToWn Attorney
Ord. 19-01
June 25, 2019 SECOND READING
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Brenda Torres, Town Cl
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