Decades ago, the City established the AHA pursuant to the provisions of C.R.S. § 29-4-201 et seq. in order to address unsanitary and unsafe housing conditions within the city of Alamosa, in particular with respect to low income residents. The City and the AHA have entered into various cooperation agreements over the years, as contemplated by 42 U.S.C. § 1437c(e)(2), including, without limitation, cooperation agreements dated:

• November 16, 1960
• May 19, 1971
• May 7, 1981

Copies of the historical agreements are attached.

Although not entirely clear, and obscured by the mists of time, the City Attorney believes all the historical cooperation agreements remain in force, and that there are multiple agreements relating to multiple phases of  housing projects constructed by the AHA. The cooperation agreements all require the AHA to remit payments in lieu of taxes (“PILT payments”) to the various taxing jurisdictions it is subject to, consisting of 10% of the aggregate Shelter Rent it charges residents in its projects or the amount permitted by state law in effect the date such payment is made, whichever is lower. The money for these payments comes from the federal department of Housing and Urban Development. Federal law at 42 U.S.C. § 1437d(d) contains the same requirement to make the PILT payments of the lesser of 10% or what is prescribed by state law, but additionally notes that the cooperation agreement may also allow that PILT payment to be reduced to such lesser amount as is agreed to in the cooperation agreement between the City and the AHA.

The AHA has approached staff both with questions about whether it is really required to make the PILT payments (it is), and whether, rather than making such payments, it could retain those funds to apply to its projects. Staff believes that there are particular projects that provide a direct benefit to the provision of affordable housing that would benefit the City. The proposed amendment to the cooperation agreements would allow the AHA to retain the PILT payments otherwise due to taxing jurisdictions upon Council approval of particular project(s) for the benefit of affordable housing to which the retained PILT payments will be provided. The project(s) and the amount of PILT payment to be applied shall be specifically identified in a resolution adopted by Council on an annual basis. In adopting any such resolution, Council shall consider the entire AHA budget in relation to the PILT retainage requested by the AHA, as well as the purposes to be served by the AHA in retaining the PILT payments referenced in the resolution.

Resolution No. 11-2022, which addresses the specific use for the 2021 PILT payments follows this agenda item.