HomeMy WebLinkAbout06/10/2022 - Planning and Zoning Commission - AGENDA - Work Session
* Work session times are approximate and are subject to change without notice.
David Katz, Chair Virtual Meeting
Ted Shepard, Vice Chair Zoom Webinar
Michelle Haefele
Per Hogestad
Adam Sass
Jeff Schneider
Julie Stackhouse
Planning and Zoning Hearing will be held on Thursday, June 16, 2022 in City Hall Chambers or online.
Regular Work Session
June 10, 2022
Virtual Meeting
Noon – 2:45 p.m.
Planning and Zoning Commission
Work Session Agenda
Participation for this remote Planning and Zoning Commission work session will be available online or by phone.
Commission members and staff may be present in-person but interested members of the public and applicant
teams are strongly encouraged to participate via Zoom. No public comment is accepted during work sessions.
Public Attendance (Online): Individuals who wish to attend the Planning and Zoning work session via remote
public participation can do so through Zoom at https://fcgov.zoom.us/j/91260045144. Individuals participating in
the Zoom session should also watch the meeting through that site.
The meeting will be available to join beginning at 11:45 a.m. on June 10, 2022. Attendees should try to sign in prior
to 12:00 p.m. if possible.
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Please dial: 1-253-215-8782 or 1-346-248-7799, with Webinar ID: 912 6004 5144.
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Packet pg. 1
City of Fort Collins Page 2
TOPICS: PROJECTED TIMES:
Consent:
1. April 21, 2022 Hearing Draft Minutes
2. Vacation of Easements and Rights-of-Way (Buckman/Havelda)
12:00 – 12:25
Discussion:
3. Enclave at Redwood (continuance) (Wray)
12:25 – 1:00
Policy and Legislation:
• Land Use Code Phase 1 (Overton/Beals)
• 1041 Regulations Update (Smith)
1:00 – 2:15
Commission Topics:
• Upcoming Hearing Calendar (Axmacher)
• Commission Updates (Axmacher)
• Transportation Board Liaison Update (Gavaldon)
2:15 – 2:45
The meeting will be available beginning at 11:45 a.m. Please call in to the meeting prior to 12:00 p.m., if possible.
Once you join the meeting: keep yourself on muted status. If you have any technical difficulties during the
meeting, please email abrennan@fcgov.com.
The June 16 Planning and Zoning Commission regular meeting will be available online, remotely and in-
person. Information on participating in the June 16 Planning and Zoning regular meeting is contained in the
agenda for the June 16 meeting available at https://www.fcgov.com/cityclerk/planning-zoning.php. Members of
the public wishing to submit documents, visual presentations, or written comments for the Commission to
consider regarding any item on the agenda must be emailed to smanno@fcgov.com at least 24 hours prior to the
June 16 meeting.
Packet pg. 2
Housing Strategic Plan ImplementationLUC Phase 1 Updates: Proposed Code ChangesJune 14, 2022Noah Beals | Development Review ManagerMeaghan Overton | Housing ManagerLAND USE CODE UPDATESPacket pg. 3
OOutlineINTRODUCTION: Policy Alignment and Process to Date (10min presentation)PART 1: Reorganization / User-friendliness (10min presentation; 20min discussion)PART 2: Housing Related Improvements•Choice, Compatibility, Diversity(10min presentation;30min discussion)•Housing Capacity (10min presentation; 30min discussion)•Affordability (10min presentation;30min discussion)CONCLUSION: Next Steps(10min presentation)2LAND USE CODE UPDATESPacket pg. 4
Discussion3Do the proposed Code changes appropriately implement the City’s adopted policy goals, Housing Strategic Plan strategies, and Diagnostic Report recommendations?LAND USE CODE UPDATESPacket pg. 5
Purpose of the Land Use Code Updates:To Align the LUC with AdoptedCity Plans and Policies with a focus on: •Housing-related changes •Code Organization•Equity4LAND USE CODE UPDATESPacket pg. 6
5• LIV 2: Promote infill and redevelopment• LIV 3: Maintain and enhance our unique character and sense of place as the community grows• LIV 5: Create more opportunities for housing choices• LIV 6: Improve access to housing …regardless of race, ethnicity, income, age, ability, or background• T 5.2: Plan to implement BRT and high-frequency transit-service …along major transportation corridors as land-use densifies and mobility demands increaseCity Plan AlignmentLAND USE CODE UPDATESPacket pg. 7
6Transit Plan AlignmentLAND USE CODE UPDATESPacket pg. 8
“Everyone in Fort Collins has healthy, stable housing they can afford”Housing Strategic Plan Alignment7LAND USE CODE UPDATESPacket pg. 9
8“Everyone benefits from a carbon neutral Fort Collins”• LWPN2: Evaluate opportunities to better encourage the development of “complete neighborhoods” that include a variety of housing options, access to services and amenities, and proximity of housing to jobs• LWPN4: Increase density and mixed usesthrough the land use code as guided by City Plan• HAH3: Increase the number and diversity of housing types and allow more homes per lot (density) via an update to the LUC• HAH9: Strengthenincentives for mixed-use development along the MAX corridor to encourage more housingOur Climate Future AlignmentLAND USE CODE UPDATESPacket pg. 10
9Our Climate Future AlignmentCritical path: • 100% renewable electricity• Expanding local and regional public transit coverage and frequency• Community-wide organic waste diversionLAND USE CODE UPDATESPacket pg. 11
VView the Diagnostic Report here:https://www.fcgov.com/housing/files/luc-diagnostic_final.pdf?1642016494Where we've been…10LAND USE CODE UPDATESPacket pg. 12
AA disciplined and deliberate process: All proposed LUC Updates will be created and evaluated based on how they address the findings.KEY FINDINGS1. Does not support future Priority Place Types2. Limitshousing capacity3. Does not prioritize housing capacity, diversity, & affordability along transit corridors4. LUC is difficult to use11LAND USE CODE UPDATESPacket pg. 13
SUMMARY OF RECOMMENDATIONS10. Recalibrate parking requirements to improve residential capacity in TOD.LUC is difficult to use11. Develop consistent graphic templatesfor building form and use standards.12. Reformat Zonesso Form Standards and Graphics are consistent and more effectively communicate requirements.13. Update Use standards, Definitions, and Rules of Measurementin alignment with adopted plans and define density consistently.14. Change namefrom “Land UseCode” to “Land DevelopmentCode”.15. Rename Zones(without boundary changes) and consolidate to be more intuitive with clear hierarchy.5. Consider replacing maximum densities with improved form standards that guide better design.6. Expand and calibrate incentives for deed-restricted affordable housing and develop monitoring tools.Does not prioritize housing capacity, diversity, & affordability along transit corridors7. Update definitions for affordable housing.a. Review for consistencyb. Clarify and simplify development standardsc. Provide greater flexibility for deed-restricted affordable housing8. Update Zoneswithin a 5 minute walk to transit to allow greater housing diversity and capacity by right.9. Calibrate effective bonus incentives for deed-restricted Affordable housing and develop monitoring tools.12Does not support future Priority Place Types1. Update the housing uses permitted and review types required within Priority Place Types to allow greater housing diversity by right.2. Update Zones that comprise Priority Place Types to more efficiently guide compatible infill (in the core) and development patterns envisioned in adopted city plans(outside the core).3. Update Use Standards & Definitions (e.g. ADU’s & STR’s)Limits Housing Diversity4. Update Zonesthat comprise Priority Place Types to allow greater housing capacity by right.a. Remove barriers (limitations on total number of units or square footage per MF building)b. Clarify and simplify development standardsc. Explore parking reductionsLAND USE CODE UPDATESPacket pg. 14
FIVE GUIDING PRINCIPLESThese Guiding Principles (presented to City Council on November 9, 2021) provide the foundation for the LUC Updates Diagnostic and Approach and will inform all proposed code changes with emphasis on Equity.1311.Increase overall housing capacity(market rate and affordable) and calibrate market-feasible incentives for Affordable (subsidized/deed restricted) housing2.Enable more affordability especially near high frequency/capacity transit and priority growth areas 3.Allow for more diverse housing choices that fit in with the existing context and/or future priority place types4.Make the code easier to use and understand5.Improve predictability of the development permit review process, especially for housingLAND USE CODE UPDATESPacket pg. 15
RReorganization / User-friendlinessPART 1:14Organization, Page Layout, IllustrationsLAND USE CODE UPDATESPacket pg. 16
RRename CodeLand Development Code (LDC) instead of Land Use Code (LUC)ٯThe code regulates more than just land useٯProposed code includes more emphasis on physical form and design compatibility 15LAND USE CODE UPDATESPacket pg. 17
IImproved Code OrganizationArticles reorganized so information is easy to find and most commonly referenced content appears first.16Proposed Table of Contents:Article 1General ProvisionsArticle 2Zone DistrictsArticle 3Building TypesArticle 4Use StandardsArticle 5General Planning and Design StandardsArticle 6 Administration and ProceduresArticle 7Rules of Measurement and Definitions Current Table of Contents:Article 1General ProvisionsArticle 2AdministrationArticle 3General Development StandardsArticle 4District StandardsArticle 5DefinitionsLAND USE CODE UPDATESPacket pg. 18
SSimple & Effective Illustrations17Article 2: Includes reformatted & updated Zone DistrictsٯSimple tables and graphics explain building and lot standardsٯClear Purpose Statements with illustrations LAND USE CODE UPDATESPacket pg. 19
SSimple & Effective Illustrations18ٯArticle 3: Introduces Building Types ٯConsolidates and updates development standards scattered in multiple Sections and Articles in the current CodeٯProvides consistent graphic conventions LAND USE CODE UPDATESPacket pg. 20
GGraphically Clear and Comprehensive Land Use Table19LAND USE CODE UPDATESPacket pg. 21
UUpdated form standards are illustrated consistently20Updated and simplified “Solar Access Bulk Plane” diagram more effectively describes the intent of the standard.Neighborhood Conservation Districts currently regulate “Minimum Side Yard and Maximum Wall Height.”LAND USE CODE UPDATESPacket pg. 22
Summary and Discussion21What questions or feedback do Councilmembers have about the proposed Code reorganization?Key Proposals:• Change name to “Land Development Code” (Recommendation 14)• Reorganize content so the most used information is first in the Code• Reformat zone districts with consistent graphics, tables, and illustrations (Recommendation 12)• Consolidate form standards in new Article 3 – Building Types (Recommendation 11)• Consolidate use standards into table in new Article 4 – Use Standards (Recommendation 13)• Update definitions and rules of measurement for consistency (Recommendation 13)• Rename some zones and create subdistricts to consolidate standards (Recommendation 15)LAND USE CODE UPDATESPacket pg. 23
HHousing Related ChangesPART 2:22Choice, Compatibility, DiversityCapacityAffordabilityLAND USE CODE UPDATESPacket pg. 24
Choice, Compatibility, Diversity23Historic Neighborhood CharacterMissing Middle & ADUsLAND USE CODE UPDATESPacket pg. 25
KEY FINDING #1DOES NOT SUPPORTFUTURE PLACE TYPESƔNo specific definition of accessory dwelling units in LUCƔ“Carriage House” is closest description to ADU but unclear and limited where they are allowed; only allowed in Neighborhood Conservation zone districts (NCL, NCM, and NCB)ƔMin lot size is 12,000 sf in NCL and 10,000 sf in NCMڮNC districts consist of ~3% of Fort Collins24CCarriage houses:“a single-family detached dwelling unit, typically without street frontage, that is located behind a separate, principal dwelling on the same lot”of ~3% of Fort Collins24ڮMost lots within the NC districts are too small for Carriage houses, as currently regulated.Accessory Dwelling Units (ADU’s)Limits Housing DiversityLAND USE CODE UPDATESPacket pg. 26
AArticle 3: Building Types1. Mixe d-Us e2. Apartment3. Rowhouse4. Cottage Court5. Duplex6. Detached House -Urban7. Detached House -Suburban8. Detached Accessory Structures25Housing diversity made easierLAND USE CODE UPDATESPacket pg. 27
CCombining similar uses26LAND USE CODE UPDATESPacket pg. 28
Enable more housing choices in more places 27LAND USE CODE UPDATESPacket pg. 29
28TThe LUC does not promote compatible infill or support the envisioned neighborhood formThe current LUC was calibrated decades ago to primarily guide development of vacant parcels or “greenfield” development. Because of this, development in older neighborhoods experience many challenges often with results that are out of scale with existing building patterns. The Historic Core of the city (NCL, NCM, and NCB zone districts) has experienced compatibility challenges in recent decades.The proposed LDC carefully considers infill and redevelopment and guides more compatible and contextual design outcomes. Diagnostic Report (2022)Strategic Report (2012)LAND USE CODE UPDATESPacket pg. 30
•Reduced minimum lot size for detached house (single unit dwelling) to be more compatible with older lots/buildings shaped by the original 1929 zoning.•Reduced max floor area of detached house to be consistent district wide, instead of a function of lot size29PProposed LDC: Enables more and smaller homes LAND USE CODE UPDATESPacket pg. 31
PProposed LDC: Enables more and smaller homes•Promotes additional units through affordable housing bonus.•Increases range of building types allowed by under Basic Development Review (BDR).30KKey Recommendation: AAllow Greater Housing DiversityLAND USE CODE UPDATESPacket pg. 32
EExisting ConditionsLot Size 8,896 sfFloor Area (Max) 2,780 sf (NCL) or 3,224 sf (NCM)House Size (as shown) 1,040 sf# of Units 1A majority of houses in Old Town are less than 1500 sf in size, with some Character Areas having 2/3 of the houses ranging between 500-999 sf in size.40% of lots in NCL and NCM are larger than 8000 sf.LAND USE CODE UPDATESPacket pg. 33
CCurrent LUC: Favors fewer and larger homes Lot Size 8,896 sfFloor Area (Max) 2,780 sf (NCL) or 3,224 sf (NCM)House Size (as shown) 2,880 sf# of Units 1Height is limited by # of stories (2.5), not feetLAND USE CODE UPDATESPacket pg. 34
EExisting ConditionsLot Size 8,896 sfFloor Area (Max) 2,780 sf (NCL) or 3,224 sf (NCM)House Size (as shown) 1,040 sf# of Units 1A majority of houses in Old Town are less than 1500 sf in size, with some Character Areas having 2/3 of the houses ranging between 500-999 sf in size.40% of lots in NCL and NCM are larger than 8000 sf.LAND USE CODE UPDATESPacket pg. 35
PProposed LDC: Existing House + ADULot Size 8,896 sfFloor Area (Max) 2,000 sf (for primary structure)House Size (as shown) 1,040 sf + ADU# of Units 2Detached ADUMax Height limited to 35’ Proposed LDC limits height by feet, maintains the existing bulk requirements (though redefines/illustrates the standards more clearly), allows ADUs on all residential lots (instead of limiting them to the largest lots in the district), and is more in line with adopted plans and policies.LAND USE CODE UPDATESPacket pg. 36
PProposed LDC: Detached House (Urban)Lot Size 8,896 sfFloor Area (Max) 2,000 sf (for primary structure)House Size (as shown) 1,900 sf# of Units 1Max Height limited to 35’ Proposed LDC limits height by feet, maintains the existing bulk requirements (though redefines/illustrates the standards more clearly), allows ADUs on all residential lots (instead of limiting them to the largest lots in the district), and is more in line with adopted plans and policies.LAND USE CODE UPDATESPacket pg. 37
PProposed LDC: Detached House (Urban) + ADULot Size 8,896 sfFloor Area (Max) 2,000 sf (for primary structure)House Size (as shown) 1,900 sf + ADU# of Units 2Max Height limited to 35’ Detached ADUProposed LDC limits the size of the primary dwelling and allows an ADU, allowing additional units while maintaining the scale of the historic neighborhood.LAND USE CODE UPDATESPacket pg. 38
PProposed LDC: DuplexLot Size 8,896 sfFloor Area/Unit (Max) 1,500 sfFootprint (as shown) 1,500 sf# of Units 2Proposed LDC allows duplexes on lots to be more consistent with the historic 1929 code.The floor area per unit is less than that of a detached house.LAND USE CODE UPDATESPacket pg. 39
Summary and Discussion38What questions and feedback do Councilmembers have about the proposed changes for housing choice, compatibility, and diversity?Key Proposals:• Allow ADUs in all residential and mixed-use zones (Recommendation 1)• Create a menu of building types and form standards to guide compatibility (Recommendation 1)• Update Land Use Table to permit more housing types through BDR (Recommendation 1)• Adjust standards to enable more small-lot infill development and “missing middle” housing types. (Recommendation 2)• Update use standards, rules of measurement, and definitions to align with new building types and standards. (Recommendation 3) LAND USE CODE UPDATESPacket pg. 40
Capacity 39LAND USE CODE UPDATESPacket pg. 41
The city will need about 330,000 additional housing unitsto house incoming residents.Fort Collins will continue to grow, and more homes will be needed to ensure an abundant supply of housing in the future.40The city’s population is expected to increase from about 170,000 today to about 235,000 in 2040. This is an increase of nearly 70,000 residents. Estimated Population Growth (2000 - 2040)1 Source: City Plan Trends and Forces Report (2017); current population from 2020 US CensusLAND USE CODE UPDATESPacket pg. 42
KKey Proposal: Target increases in housing capacity to zones in transit corridors and zones with the greatest amount of buildable land.41Capacity increases enabled through increase to maximum densityShare of buildableland within 5-minute walk of existing and future transit linesCapacity increases enabled through reduction in minimum parking requirements and increase in maximum building height.Zone districts within 5-minute walk of transitCode changes to increase housing capacity are targeted to zone districts that account for approximately 60%of the buildable land in transit corridors.No capacity-related code changes proposed in Phase 1LAND USE CODE UPDATESPacket pg. 43
43EExisting Code StandardsMMax. Density9 units / acreBuilding Height2 storiesSetbacksFront: 20’Rear: 15’Side: 5’Parking2 spaces / unit49 UnitsAMI0%174% AMI($167,000)2,000 sq. ft.Avg. Unit SizeThe existing maximum density of the LMN zone encourages larger, more expensive housing unitsAffordable to households making at least:LAND USE CODE UPDATESPacket pg. 44
44PProposed Code StandardsMMax. Density12 units / acreBuilding Height2 storiesSetbacksFront: 20’Rear: 15’Side: 5’Parking2 spaces / unit66 UnitsAffordable to households making at least:1,500 sq. ft.Avg. Unit SizeThe proposed maximum density increases housing capacity and encourages developers to build smaller, more affordable unitsAMI0%138% AMI($132,000)ሄ35%ህ25%LAND USE CODE UPDATESPacket pg. 45
451 space consumes land that could be used for up to 1,600 SF of floor area in a 4-story buildingKKey Proposal: Reduce minimum parking requirements for smaller units in multi-unit buildingsLAND USE CODE UPDATESPacket pg. 46
46WWhy not put the parking in a garage and build housing on top? Surface Parking~$5,000 / spaceTuck Under~$20,000 / spaceStructured/Underground$20,000 - $40,000 / spaceLAND USE CODE UPDATESPacket pg. 47
47EExisting Code vs. Proposed Code PARKING RequirementsLAND USE CODE UPDATESPacket pg. 48
48This change would enable 116 additional unitson the example site below because less of the site is occupied by parking and more building floor area for housing can be added to the site without generating the need for a larger parking lot.Reducing parking requirements for smaller units would typically enable a 25% increase in the number of units on a site.Min. Parking:1.6 spaces / unit avg.Min. Parking:1.2 spaces / unit avg.LAND USE CODE UPDATESPacket pg. 49
49HHOUSING CAPACITY REPORT CARDPPERFORMANCE METRICEEXISTING CODE PROPOSED CODE % CHANGETotal Housing CapacityEstimated number of units possible to build under zoning standards25,959dwelling units39,725dwelling unitsሄ53%Housing Capacity as Percent of PProjected 20-Year Housing NeedEstimated capacity compared to total projected housing demand through 2040.185%of 30,480 units130%of 30,480 unitsHousing Capacity in Transit CCorridorsEstimated number of units possible to build under zoning standards within 5 minute walk of existing and future transit corridors.5,104dwelling units8,299dwelling unitsሄ63%1 Source: City Plan Trends and Forces Report (2017)LAND USE CODE UPDATESPacket pg. 50
Summary and Discussion50What questions and feedback do Councilmembers have about the proposed changes for housing capacity?Key Proposals:• Target increases in housing capacity to zones in transit corridors and zones with the greatest amount of buildable land (Recommendation 8)• Increase maximum density in the LMN zone from 9 to approximately 12 dwelling units per acre (Recommendations 4, 5, and 8)• Reduce parking requirements for studio, one- and two-bedroom units in multi-unit developments (Recommendations 4, 9, and 10)• Regulate building size through maximum floor area and form standards instead of units per building (Recommendation 5)• Regulate density through form standards and building types instead of dwelling units per acre (Recommendation 5)LAND USE CODE UPDATESPacket pg. 51
Affordability51LAND USE CODE UPDATESPacket pg. 52
HHousing is becoming unaffordable to families with low or moderate incomes. The city set a goal in 2021 for 10% of the housing stock to be permanently affordable units, but it is not on track to achieve that goal.52Despite adding over 500 new affordable units since 2015, affordable housing still only makes up 5% of the City’s housing stock. The great majority of these units were built by public or non-profit housing developers that are able to access funding from federal, state, or local governments. Private developers contributed very few new deed-restricted affordable units.Private developers will build deed-restricted affordable housing if there is a compelling economic incentive to do so. LAND USE CODE UPDATESPacket pg. 53
TThe city’s existing incentives for affordable housing are ineffective. 53There are three reasons why the city’s current zoning incentives for affordable housing are not effective at encouraging private developers to contribute to the affordable housing stock.They are only available to projects in certain areas. A project must be located in either the LMN zone or the TOD Overlay Zone to qualify for an incentive. These zones account for just one-third of the city's residential land area. That means there is no incentive to build affordable housing on two-thirds of the city’s residential land.They are not targeted to the income levels with the greatest need for affordable units. The city’s Housing Strategic Plan identified that the greatest need for rental units is among households with incomes below 60% of Area Median Income (AMI). The greatest need for ownership units is for households below 100% of AMI. Yet existing incentives require units to be affordable at 80% of AMI, regardless of whether they are rental or ownership units.They don’t make economic sense for a private developer. The economic benefits do not outweigh the cost of providing deed-restricted units. In most cases, a project with deed-restricted units would be significantly less profitable than a 100% market rate project. As a result, very few private developers utilize the incentives. LAND USE CODE UPDATESPacket pg. 54
KKey Proposal: Extend incentives to a wider range of zones so there are more opportunities for them to be used.54The current code only offers incentives for affordable housing in the LMN zone or the TOD Overlay Zone. The proposed code would extend incentives to most residential and mixed use zones. The impact of this change is that incentives for affordable units would be made available on an additional 4,300 acres of land, 670 of which are currently vacant and buildable. The share of the city’s total residential or mixed use land where incentives are available would rise from 33% to 51%.Further, the incentives would be available on 60% of the total buildable land in these zones.EXISTING CODEZONES WITH BONUS INCENTIVESPROPOSED CODEZONES WITH BONUS INCENTIVESLAND USE CODE UPDATESPacket pg. 55
KKey Proposal: Modify income criteria so the incentives help to address the most critical shortages in affordable units.55The current incentives for affordable units require that 10% of units in a project be affordable to households earning 80% of AMI, regardless of whether the unit is for rent or for-sale.Yet the city’s Housing Strategic Plan found that the shortage of rental units is significantly greater for households with lower income levels. The shortage of rental units for households earning less than 60% of AMI is nearly 4 times greater than the shortage of rental units for households earning less than 80% of AMI.There is a much greater need for affordable units at income levels of less than 60% of AMI than at 80% of AMISource: Housing Strategic Plan (2021)LAND USE CODE UPDATESPacket pg. 56
KKey Proposal: Modify income criteria so the incentives help to address the most critical shortages in affordable units.56The shortage of affordable ownership units is slightly different. Even households earning greater than 80% of AMI face a critical shortage of affordable for-sale options. The depth of the shortage of households earning up to 120% of AMI is similar to the shortage for households at 80% of AMI.Even moderate income households earning up to 100-120% of AMI have few options for affordable homeownership.Source: Housing Strategic Plan (2021)LAND USE CODE UPDATESPacket pg. 57
KKey Proposal: Modify income criteria so the incentives help to address the most critical shortages in affordable units.57The proposed code would modify the income criteria so that the units produced under the incentive program would more directly address the most critical shortages in affordable units. To qualify for the incentive, rental projects would be required to provide 10% of the units at 60% of AMI. Ownership projects would be required to provide a minimum of 10% of units at 100% of AMI.EEXISTING CODEPROPOSED CODERENTAL OWNERSHIPRequired minimum percentage of affordable units10%10%10%Maximum income level as percent of Area Median Income80% of AMI 60% of AMI 100% of AMICurrent max household income for a 2-person household$61,400 $46,080 $76,800Current max monthly rent or sale price for a 2-person household$1,335Monthly Rent$185,967Sale Price$952 $260,286LAND USE CODE UPDATESPacket pg. 58
KKey Proposal: Raise the density bonus incentive in the LMN zone in order to increase the economic value of the incentive58The LMN zone currently allows for an increase in maximum density for projects with affordable units. The base maximum density is allowed to rise from 9 to 12 dwelling units per acre.While this may seem like a substantial increase in density, the economic value of allowing more housing units is far less than the economic cost of lower revenues from the 10% of units that must be affordableThe following example illustrates this issue on a hypothetical 5 acre site.LAND USE CODE UPDATESPacket pg. 59
TThe proposed increase to the base density in the LMN zone would allow a 100% market rate project at a density level of about 12 units per acre.59Market rate units are affordable to households making at least:AMI0%16 1% AMI ($ 15 4,0 0 )66 Units$540,000Sale Price of 66 Market Rate Units13%ROIPProposed Base Density (No Bonus)MMax Density (Base) 12 units / acreMinimum Percentage Affordable Units N/AMaximum Income Level For Affordable UnitsN/ALAND USE CODE UPDATESPacket pg. 60
TThe proposed bonus removes the maximum density limitation for projects with affordable units. This enables projects with affordable units to yield a similar return -on-investment as 100% market rate projects.60PProposed Density Bonus IncentiveMMax Density w/ Bonus No maximumEffective Density17 units / a creMinimum Percentage Affordable Units 10 %Maximum Income Level For Affordable Units100% of AMI(ownership units)96 Units$540,000Sale Price of 86 Market Rate Units$352,000Sale Price of 10 Affordable Units13%ROIMarket rate units are affordable to households making at least:AMI0%16 1% AMI ($ 15 4,0 0 )ሄ45%No changeLAND USE CODE UPDATESPacket pg. 61
KKey Proposal: Create height bonus and parking reduction incentives in higher density residential and mixed use zones61The current code does not offer any incentives for affordable units in the higher density residential zones (MMN, HMN) and the mixed use zones. There is a significant opportunity to add to the supply of affordable units by offering compelling zoning incentives in these zones.In these zones, the number of units allowed on a site is indirectly regulated primarily through maximum building height and minimum parking requirements. An effective incentive in these zones must provide a concession on these standards which enables more units on the site compared to the base standards.LAND USE CODE UPDATESPacket pg. 62
TThe proposed code allows an additional 1 -2 stories of building height in exchange for setting aside 10% of the units to be affordable. 62621 story height bonus for projects with affordable unitsLAND USE CODE UPDATESPacket pg. 63
TThe proposed code allows an additional 1 -2 stories of building height in exchange for setting aside 10% of the units to be affordable. 632 story height bonus for projects with affordable unitsBase max height reduced from 5 to 4 stories in NC, CC, and CCNLAND USE CODE UPDATESPacket pg. 64
TThe proposed code offers reductions to minimum off -street parking requirements for multifamily projects that include 10% affordable units.6464LAND USE CODE UPDATESPacket pg. 65
TThis project, built at the proposed base height and parking requirements (not using bonus incentives), can achieve 7.7% return -on-investment. 65PProposed Base Code (No Bonus)MMax Height4 storiesParking1.2 s p a ce s / unit (average)Minimum Percentage Affordable Units N/AMaximum Income Level For Affordable UnitsN/A80 Units$1,500Avg. Rent for 80 Market Rate UnitsMarket rate units are affordable to households making at least:7.7%ROI666692% AMI ($88,000)AMI0%LAND USE CODE UPDATESPacket pg. 66
TThis project, which uses the bonus incentives, can yield a similar return on investment while providing 10% of units to be affordable to lower income households earning 60% of AMI (about $46,000).66PProposed Bonus IncentivesMMax Height6 storiesParking0.75 spaces / unit (average)Minimum Percentage Affordable Units 10 %Maximum Income Level For Affordable Units60% of AMI(rental units)12 0 Units$1,500Avg. Rent for 108 Market Rate UnitsMarket rate units are affordable to households making at least:7.5%ROI92% AMI ($88,000)AMI0%ሄ50%$952Rent for 12 Affordable UnitsIIIIሄሄሄሄሄሄሄሄሄሄ555555555000000000%%%%%%%%%LAND USE CODE UPDATESPacket pg. 67
67HHOUSING AFFORDABILITY REPORT CARDPPERFORMANCE METRICEEXISTING CODE PROPOSED CODE % CHANGECapacity for Affordable Units wwith Bonus Incentives Estimated number of deed-restricted affordable units possible to build if bonus incentives are used in all projects.1,590dwelling units(LMN Zone)4,677dwelling units(multiple zones)ሄ194%Capacity as Percent of Affordable RRental Unit ShortageEstimated capacity compared to total estimated shortage of rental units affordable to households earning less than 60% of AMI.123%of 6,787 units68%of 6,787 unitsTotal Housing Capacitywwith Bonus Incentives Estimated number of total units (market rate and affordable) possible to build if bonus incentives are used in all projects.32,394dwelling units53,106dwelling unitsሄ64%1 Source: Housing Strategic Plan (2021)LAND USE CODE UPDATESPacket pg. 68
Summary and Discussion68What questions and feedback do Councilmembers have about the proposed changes for housing affordability?Key Proposals:• Expand affordable housing incentives (Recommendations 6 and 9)• Modify income criteria to address the most critical shortages (Recommendations 6 and 9)• Raise the density bonus incentive in the LMN zone (Recommendations 6 and 9)• Create height bonus and parking reduction incentives (Recommendations 6 and 9)• Require 50-60 years of deed restriction instead of the current 20 years • Continue to require a minimum 10% of units to be affordable for development seeking incentives • Update definitions for affordable housing, review for consistency (Recommendation 7)LAND USE CODE UPDATESPacket pg. 69
Next Steps 69LAND USE CODE UPDATESPacket pg. 70
Next Steps701. Public engagement and testing –Ongoing• Virtual engagement opportunities to educate, seek input, test code changes, and keep the public informed• Workshops and presentations with a range of City departments• Presentations to multiple Boards and Commissions• Dialogues with community groups and members of the public• Advisory meetings with the LUC Phase 1 Working Group2. Public Review Draft Code –summer 20223. Consideration of Adoption – fall 2022LAND USE CODE UPDATESPacket pg. 71
Discussion71Do the proposed Code changes appropriately implement the City’s adopted policy goals, Housing Strategic Plan strategies, and Diagnostic Report recommendations?LAND USE CODE UPDATESPacket pg. 72
72DIVERSITY AND COMPATIBILITYCAPACITYAFFORDABILITYŶAllow AAccessory Dwelling Unitsin all residential and mixed use zones, including lower density zones.ŶEstablish Cottage Courtsas a housing type and allow in most residential zones.ŶRecalibrate lot size and density standardsin “Old Town” zones (NCL, NCM, NCB) to encourage wider variety of housing types (duplexes, townhouses, etc.)ŶAllow “by-right” approval(Basic Development Review) for more housing types in some zones.ŶTarget increases in capacity to zones in transit corridorsand zones with the greatest amount of buildable land.ŶIncrease maximum density of the LMN zoneŶReduce minimum parking requirementsfor smaller units in apartments buildingsŶExtend affordability incentives to a more zonesso there are more opportunities for them to be used.ŶModify income criteriaso the incentives target the most critical shortages in affordable units.ŶRaise the density bonus in the LMN zoneto encourage production of more affordable units.ŶCreate new height bonus and parking reduction incentivesin higher density and mixed use zones to encourage production of more affordable units.LMNMMNHMNRFUERLNCLNCMNCBMIXED USE ZONESLMNMMNHMNNCLNCMNCBMIXED USE ZONESLAND USE CODE UPDATESPacket pg. 73
THANK YOU!73LAND USE CODE UPDATESPacket pg. 74
Draft 1041 Regulations06-28-2022Kelly SmithSenior Environmental Planner1041 REGULATION UPDATESPacket pg. 75
21041 RegulationsAllow local governments to regulate areas and activities of state interestGives local governments permitting authority over development projects even when the project has statewide impacts.A local government must designate the areas or activities of state interest and adopt guidelines pursuant to state statutory procedures and limitations1041 REGULATION UPDATESPacket pg. 76
3Areas of Statewide InterestMineral Resource Areas• Gravel MiningNatural Hazard Areas• Geologic• WildfireHistorical/Natural/ Archaeological Resource Areas• State and Federally listed speciesAreas Around Key Facilities• Highways• Airports• Utility Infrastructure1041 REGULATION UPDATESPacket pg. 77
4Activities of Statewide InterestNew/Expanded Domestic WaterMunicipal/ Industrial Water ProjectsHighways and InterchangesNew CommunitiesPublic UtilitiesSolid Waste DisposalMass TransitAirportsGeothermal ResourcesNuclear Detonation1041 REGULATION UPDATESPacket pg. 78
5Statutory ProcessPublic Hearing Designating Activity/AreaMoratoriumAdopt GuidelinesAccept Permit Applications12341041 REGULATION UPDATESPacket pg. 79
6Where We’ve BeenMayJulySeptemberOctober2021ANALYSIS & OPTIONSPUBLIC HEARING/ DESIGNATIONRESOLUTION:Study 1041 PowersMORATORIUM12Engaged• Water Providers • Sanitation Districts• CDOT• 30 CommunitiesBoards/CommissionsChamberCity UtilitiesCity EngineeringWater ProvidersSanitation DistrictsDevelopersCSUEngagedWater ProvidersSanitation DistrictsPFAEngaged1041 REGULATION UPDATESPacket pg. 80
7Where We Are GoingNOVDECJANFEBMARAPRMAYJUNJULYAUGSEPTOCTNOVDECJANAPPROPRIATE FUNDING/ CONTRACTINGCODE DEVELOPMENTENGAGEMENTDRAFT CODECOUNCIL WORK SESSIONCODE ADOPTIONMORATORIUM EXPIRESIMPLEMENTATIONSCHEDULE431st15th 20th31041 REGULATION UPDATESPacket pg. 81
8DRAFT 1041 Regulations: UNDER CAO REVIEW• Designation Procedures• Definitions• ExemptionsApplicability• Determination of Permit Type• Neighborhood Meeting• Public HearingApproval Process• General Standards• Activity Specific Standards• Activity Specific Purpose Review Standards• Financial Security• Inspection/Reporting• EnforcementPermit Administration• Pre-Application• ApplicationSubmittal Requirements1041 REGULATION UPDATESPacket pg. 82
9DRAFT 1041 Regulations: UNDER CAO REVIEWPermit HierarchyAdministrative PermitFull PermitAd23Findings of No Significant Impacts (FONSI)1Final Development PlanExcavation PermitROW Encroachment PermitStockpile Permit1041 REGULATION UPDATESPacket pg. 83
10DRAFT 1041 Regulations: UNDER CAO REVIEWImpacts Analysis: Review StandardsSocial• Recreation •SafetyEnvironmental• Public Health• Visual Quality• Air Quality•Surface Water• Groundwater• Wetlands & Riparian Areas• Wildlife • Natural Habitats and Features• Soils•Nuisance• Water ConservationEconomic• Financially Feasible• Financial Impacts• Impacts to City Infrastructure• Duplicative Service Impacts• Eminent Domain1041 REGULATION UPDATESPacket pg. 84
11DRAFT 1041 Regulations: UNDER CAO REVIEWApplying the RegulationsProjectFONSI Admin. PermitFull PermitNEWT PipelineXNorthern Integrated Water Supply ProjectXFCLWD Golden CurrantCDOT Port of EntryXX1041 REGULATION UPDATESPacket pg. 85
12DRAFT 1041 Regulations: UNDER CAO REVIEWPre-Application ProcessConceptual Review• Determine 1041 Applicability• Determine Pre-App Submittal Reqs: Studies and Mitigation Pre-Application Meeting• Impacts Analysis• Review Mitigation Approach• Determine Permit Type• Determine Permit Application Submittal ReqsNeighborhood Meeting90 Days From Accepting Application90 Days From Accepting Application• Understand Public Concern• Refine Permit Application Reqs• May Refine Permit Type1041 REGULATION UPDATESPacket pg. 86
13Approval ProcessAdministrative Permit120 Day ContinuanceFull PermitCity Council HearingPZ Commission RecommendationRRRStaff ReviewApplication CompleteCompleteness ReviewCApplication Submitted90-days to HearingCan Appeal to City CouncilAppppCan Appeal to PZ CommissionDirector DecisionStaff ReviewSApplication CompleteCompleteness ReviewCCApplication Submitted90-days to Decision1041 REGULATION UPDATESPacket pg. 87
14DRAFT 1041 Regulations: UNDER CAO REVIEW• Designation Procedures• Definitions• ExemptionsApplicability• Determination of Permit Type• Neighborhood Meeting• Public HearingApproval Process• General Standards• Activity Specific Standards• Activity Specific Purpose Review Standards• Financial Security• Inspection/Reporting• EnforcementPermit Administration• Permit Application (Submittal Requirements)ExhibitsWater Projects • Transmission Lines• Water Diversions• Structures/ Facilities• Reservoirs• Storage TanksWastewater Projects• Wastewater Treatment Plants• Interceptor Lines• Lift StationsHighway Projects• State/Federal Highways, Collectors or Interchanges• Closure of Frontage RoadsApplicability: Definitions1041 REGULATION UPDATESPacket pg. 88
15DRAFT 1041 Regulations: UNDER CAO REVIEW• Designation Procedures• Definitions• ExemptionsApplicability• Determination of Permit Type• Neighborhood Meeting• Public HearingApproval Process• General Standards• Activity Specific Standards• Activity Specific Purpose Review Standards• Financial Security• Inspection/Reporting• EnforcementPermit Administration• Permit Application (Submittal Requirements)ExhibitsOperations and MaintenanceApproved Development with Valid Building PermitApproved Development with Vested RightsDoes Not Meet Definition of DevelopmentApplicability: Exemptions12341041 REGULATION UPDATESPacket pg. 89
16DRAFT 1041 Regulations: UNDER CAO REVIEW• Designation Procedures• Definitions• ExemptionsApplicability• Determination of Permit Type• Neighborhood Meeting• Public HearingApproval Process• General Standards• Activity Specific Standards• Activity Specific Purpose Review Standards• Financial Security• Inspection/Reporting• EnforcementPermit Administration• Permit Application (Submittal Requirements)ExhibitsOperations and MaintenanceApproved Development with Valid Building PermitApproved Development with Vested RightsDoes Not Meet Definition of DevelopmentApplicability: Exemptions1234Operations and MaintenanceApproved Developmentwith Vested Rights13Approved Developmentwith Valid Building Permit2Definition of Development: Exemptions1. CDOT projects within existing ROW2. City or Public utility work within existing easements/ ROW1041 REGULATION UPDATESPacket pg. 90
17Engagement StructureGENERAL PUBLIC•LCSB• NRAB•AQAB• Water Commission• Planning and Zoning Commission• Transportation BoardBOARDS & COMMISSIONS• Transportation (CDOT, City Engineering)• Water/Sanitation Providers• Environmental Advocacy • Economic Focus Group• Boards and Commissions• Larimer CountySTAKEHOLDER WORKING GROUPS• Water/Wastewater• Engineering• EnvironmentalCITY STAFF WORKING GROUPS1041 REGULATION UPDATESPacket pg. 91
18What We Heard: Working GroupsDo You Support Tiered Regulatory ApproachWorking GroupYES NOCDOTXWater/ Sanitation ProvidersXEnvironmental AdvocacyXEconomic FocusXBoards and CommissionsXCity Utilities/EngineeringXPublicX1041 REGULATION UPDATESPacket pg. 92
19Questions• Do Councilmembers support a tiered review process based on project impact instead of a “one-size fits all” regulatory approach, and the criteria used to permit tiers?• Do Councilmembers support the exemptions proposed in the current DRAFT?• Do Councilmembers support the current engagement plan that allows adoption of regulations prior to the moratorium expiring?1041 REGULATION UPDATESPacket pg. 93
20Where We Are GoingNOVDECJANFEBMARAPRMAYJUNJULYAUGSEPTOCTNOVDECJANAPPROPRIATE FUNDING/ CONTRACTINGCODE DEVELOPMENTENGAGEMENTDRAFT CODECOUNCIL WORK SESSIONCODE ADOPTIONMORATORIUM EXPIRESIMPLEMENTATIONCM3SCHEDULEIM431st15th 20th1041 REGULATION UPDATESPacket pg. 94
For Questions or Comments, Please Contact:1041 REGULATION UPDATESPacket pg. 95