Chapter 43.01
ACCESSORY DWELLING UNIT PRODUCTION PROGRAM
Sections:
43.01.020 Purpose and applicability.
43.01.030 Documents incorporated by reference.
43.01.040 Permitting, inspection and approval.
43.01.050 Enforcement and oversight.
43.01.070 Reporting requirements and monitoring.
43.01.090 Severable and contingent.
43.01.100 Administrative regulations.
43.01.110 No city liability – Indemnification.
43.01.010 Definitions.
Accessory dwelling unit (ADU), as defined in GJMC 21.10.020.
Additional incentive is that amount equal to $15,000 minus fees.
Applicant, as defined in GJMC 21.10.020.
Application, as defined in GJMC 21.10.020.
Area median income (AMI), as defined by Colorado Housing and Finance Authority.
Developer. See Applicant.
Fee means:
(1) “Sewer plant investment fee” means a plant investment fee (PIF) collected on behalf of Persigo Wastewater Treatment Facility.
(2) “Water plant investment fee” means a plant investment fee (PIF) collected on behalf of the City of Grand Junction. Does not include any fee collected by any other water provider.
(3) “Development impact fee” or “impact fee” means certain fees now collected or as may be later applied and collected, also known as development impact fee(s), for the purposes of police, fire, parks and recreation, transportation capacity and/or other governmental functions and services.
Fee payment means City payment of fees on behalf of developer.
Owner means and includes a deeded or judicially decreed legal and/or equitable interest in the property.
Owner-occupied property(ies) is a piece of real estate in which the person who holds the title (owns the property) also uses the home or an ADU located on the property as the owner’s primary residence and lives on site.
Property, as defined in GJMC 21.10.020.
Term means the agreed upon term, either five or seven years, limiting the usage of an accessory dwelling unit as a short-term rental.
(Ord. 5136, 3-15-23)
43.01.020 Purpose and applicability.
The Accessory Dwelling Unit Production Program (APP) is intended to respond to a generalized shortage of affordable housing in Grand Junction as determined to exist by the City’s 2021 Housing Needs Assessment. The APP will, as provided in this chapter, incentivize and support the construction or build-out of ADUs on lots with a single-family (attached or detached) or two-family use.
The construction, and in turn increased availability, of ADUs within the City will contribute to alleviating the known shortage of affordable housing. Such dwellings are often referred to as naturally occurring affordable housing (NOAH), which when constructed will benefit the City and promote the health, safety, and welfare of inhabitants of the City.
(Ord. 5136, 3-15-23)
43.01.030 Documents incorporated by reference.
The ADU Production Program Covenant Agreement and Occupancy Certification Form are incorporated by reference and are cited to herein as Attachment A. Attachment may also be referred to as the APP Covenant and Agreement Documents.
(Ord. 5136, 3-15-23)
43.01.040 Permitting, inspection and approval.
All ADUs must meet all permitting, building and processes outlined in GJMC 21.04.040(f), accessory dwelling unit codes and applicable Mesa County building codes.
(Ord. 5136, 3-15-23)
43.01.050 Enforcement and oversight.
(a) The City Manager shall be responsible for oversight and implementation of this chapter including, but not limited to, review, inspection, and enforcement of the GJMC and the APP Covenant and Agreement Documents.
(b) The City and its contractor the Mesa County Building Department (Building Department) are authorized to perform inspections and take enforcement action(s) to ensure compliance with this chapter.
(c) Enforcement of this chapter shall be in accordance with the duty(ies) set forth in GJMC 21.04.040(f), accessory dwelling unit standards.
(d) The applicant shall install and maintain the approved ADU in accordance with this chapter, the applicable building, fire and life safety codes of the City and the APP Covenant and Agreement Documents.
(e) The City shall provide an application for fee payment on forms provided by the City, and when a complete application is filed the Community Development Director will review the application and approve, approve with conditions, or deny each application within 45 days of the City determining the application to be complete.
(Ord. 5136, 3-15-23)
43.01.060 Fees.
(a) Fees are as defined in GJMC 43.01.010. Fees do not include amounts paid to, charged or assessed by another special district, owners association, or special assessment made by any public or private entity, or any other governments other than the City of Grand Junction and Persigo Wastewater Treatment Facility. Fees do not include monies due for permits or plans including but not limited to planning clearances, building inspection or permits, fire inspections, etc.
(b) Fee Payment. A fee payment under this chapter is applicable to any ADU developer (commercial or homeowner).
(1) The City will upon satisfaction of the following pay fees on behalf of the developer for the construction of an ADU.
(2) To receive payment of fees, the developer is required to:
(i) Agree to execute and record in the Mesa County land title records a binding restrictive covenant, in a form provided by the City, that no short-term rental be permitted as a use of either the ADU or principal structure on the property for a period of no less than five years;
(ii) Certificate of occupancy “hold” will be placed on any approved ADU planning clearance receiving a fee payment and/or additional incentive to ensure completion of construction within one calendar year from date of the approved application for fee payment and approved planning clearance, whichever is later. If a certificate of occupancy is not issued within one year, all fees and a refund of any additional incentive will become due immediately; and
(iii) Agree to file an annual certification and reporting requirement as provided in GJMC 43.01.070.
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ADU Production Program |
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ADU developers (amount) |
ADU w/ Owner-Occupied Properties (amount) |
Terms |
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City Paid Fees |
Amount equal to fees at time of planning clearance application |
Amount equal to fees at time of planning clearance application |
5-year commitment to no short-term rental on property |
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ADU Additional Incentive (Owner-Occupied and Income Qualified) |
Not applicable |
Amount of fees at time of planning clearance application plus an amount that sums to $15,000 |
Additional 2-year commitment to no short-term rental (total of 7 years) on property |
(3) ADU Developer of an Owner-Occupied Property. The City will pay fees as provided in subsections (b)(1) and (2) of this section and will provide an additional incentive in an amount that sums to $15,000.
(4) To receive the additional incentive an owner-occupied homeowner shall:
(i) Provide proof of owner-occupancy of the property (in the form of a deed) and affidavit indicating intent for owner-occupancy as a primary residence for the term of the program at time of application; and
(ii) Agree to execute and record in the Mesa County land title records a binding restrictive covenant (see attachment A to the ordinance codified in this section) that no short-term rentals be permitted as a use of either the ADU or principal structure on the property for a period of no less than seven years from the certificate of occupancy;
(iii) Submit written evidence at the time of application that the property owner does not have a household income of more than 140 percent AMI; using the most recent Colorado Housing Finance Authority (CHFA) standards; must submit two forms of verification; including (A) two paycheck stubs from most recent pay periods for all adults living in the household, (B) income tax return from the most recent tax year, (C) employer verification certification, (D) income verification certification from the Social Security Administration and/or another government agency, if property owner/applicant receives any assistance or income from other sources;
(iv) Agree to file an annual certification and reporting requirement as provided in GJMC 43.01.070.
(c) Early Termination Penalty. Due to the potential for homes to be sold, or title to be involuntarily transferred, or a homeowner wanting to end the APP commitment(s), an early termination of the APP Covenant and Agreement Documents may occur as follows:
(1) An owner may terminate the APP Covenant and Agreement Documents at any time by providing a signed written termination notice within 30 days to the City and pay a termination fee in the following amount: (i) 20 percent of the total City paid fees and/or additional incentive; plus (ii) an additional 20 percent of the City paid fees for each full or incomplete year left in the term (“termination fee”).
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Termination fee + 20% of incentive x remaining term years |
(2) If a property is transferred or sold voluntarily or involuntarily, the owner must either pay early termination fee at time of transfer or sale closing and/or the new owner execute a new covenant agreement for the remaining years to fulfill the full extent of the prior owner’s commitment. Partial years will be pro-rated.
(Ord. 5136, 3-15-23)
43.01.070 Reporting requirements and monitoring.
(a) The property owner shall provide copies of lease terms and a completed occupancy certification form for ADU occupants within 10 calendar days when new occupancy of ADU occurs and an annual certification on forms provided by the City; and other provisions, as deemed appropriate by the City Attorney.
(b) The City shall either directly or through a contractor:
Conduct periodic audits at intervals determined necessary or appropriate of the ADU Production Program to ensure compliance with the agreements; including but not limited to review and inspection of short-term rental audit, lease reviews and building permit activity.
(Ord. 5136, 3-15-23)
43.01.080 Remedies.
(a) All fees and additional incentive paid by the City pursuant to this chapter, together with all interest thereon and penalties for early termination/default of any condition of the APP Covenant and Agreement Documents, and all costs of collection, shall constitute a perpetual real estate lien equivalent to general property taxes. No sale or conveyance, whether voluntary or involuntary, of the property to which the APP Covenant and Agreement Documents apply shall extinguish the perpetual lien created hereby. No delay, mistake, error, or irregularity in any act or proceeding authorized by this chapter shall prejudice or invalidate the lien, but the same may be remedied by subsequent amending acts or proceedings, as the case may require. When so remedied, the lien shall take effect and have the priority as of the date of the original covenant or agreement by which it was created. If any court of competent jurisdiction declares any such lien made pursuant to this chapter invalid, then the City Council may, upon notice as required for the making and passing of an ordinance make the lien effective in accordance with the intent of the APP Covenant and Agreement Documents and this chapter.
(b) In the event of a default of the terms and conditions of the APP Covenant and Agreement Documents the City Manager shall prepare an assessment against the real estate to be liened, the amount of the lien and the amount of principal and interest due. No error, failure, or neglect, or default on the part of the City, County Treasurer or County Assessor in complying with recordation, certification or collection of any lien shall invalidate the same.
(c) Any lien upon real estate made pursuant to the APP Covenant and Agreement Documents and this chapter shall be due and payable to the Mesa County Treasurer. The Mesa County Treasurer shall receive payment of all liens so made against any real estate, together with interest and other charges and, in case of default in the payment of any payment(s) so owed the City when due, shall advertise and sell any and all real estate concerning which such default is suffered for the payment of the due but unpaid sum of money with interest thereon. Such sales and advertisements shall be made at the same time(s) and in the same manner and under the same conditions and penalties and to the same effect as are provided by the general laws of the State for the sale of real estate in default of payment of general taxes. The holder of a certificate from the County Treasurer, including the City, showing payment of a lien, may have subsequent assessments endorsed thereon under the same terms and conditions as provided by the general laws of the State for the endorsement of subsequent taxes on tax certificates.
(d) At any sale by the County Treasurer of any real estate in the City for the purpose of paying any lien created by the APP Covenant and Agreement Documents and this chapter, the City Manager or his designee may purchase any such real estate without paying for the real estate in cash and shall receive certificates of purchase in the name of the City. Such certificates shall be received and credited at face value, with all interest penalties and other charges accrued, to the City Manager on account of the lien(s) in pursuance of which the sale was made. The certificates may thereafter be sold by the City Manager at face value, with all interest and penalties accrued. The City Manager shall assign the certificates and the proceeds shall be credited to the APP fund.
(e) In case of any violation of any provision of this chapter, or any amendment thereof, the City may, at its discretion, initiate civil proceedings, including perfecting a lien, and/or filing for injunction, mandamus, abatement, declaratory judgment or other appropriate actions or proceedings, to prevent, enjoin, abate, remove, or otherwise correct any violation of the APP Covenant and Agreement Documents or this chapter. Civil remedies provided for under this section are not exclusive and shall not preclude prosecution for criminal violations under the provisions of this chapter.
(Ord. 5136, 3-15-23)
43.01.090 Severable and contingent.
(a) This chapter is necessary to protect the public health, safety, and welfare of the residents of the City and covers matters of local concern or matters of mixed State and local concern. The provisions of this chapter are severable. If any provision of this chapter is found to be unconstitutional or illegal, such finding shall only invalidate that part or portion found to violate the law. All other provisions shall be deemed severed or severable and shall continue in full force and effect.
(b) The provisions of this chapter and the offering of any incentive(s) for the Accessory Dwelling Unit Production Program is contingent upon annual funding by the City Council availability. The City Council shall, from time to time and/or as necessary, consider effectiveness of this chapter at achieving its stated purposes.
(Ord. 5136, 3-15-23)
43.01.100 Administrative regulations.
The City Manager is authorized to promulgate such rules, regulations, and forms as are necessary to effectuate the implementation, administration, and enforcement of this chapter.
(Ord. 5136, 3-15-23)
43.01.110 No city liability – Indemnification.
(a) By participating in the Accessory Dwelling Unit Production Program and/or accepting an incentive(s) pursuant to this chapter, the applicant waives and releases the City, its officers, elected officials, employees, attorneys, and agents from any liability for injuries, damages or liabilities of any kind that may result from the construction and/or occupancy of the ADU(s).
(b) By participating in the Accessory Dwelling Unit Production Program and/or accepting an incentive(s) pursuant to this chapter, the applicant agrees to indemnify, defend and hold harmless the City, its officers, elected officials, employees, attorneys, agents and insurers against all liability, claims and demands on account of any injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever arising out of or in any manner connected with the construction and/or occupancy of the ADU(s).
(Ord. 5136, 3-15-23)