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Home My WebLink AboutWORK SESSION SUMMARY-05/23/2023-Work Session Community Development & Neighborhood Services Planning & Development Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6111- fax MEMORANDUM Date: May 26, 2023 To: Mayor Arndt and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Caryn Champine, Director of Planning, Development, and Transportation From: Paul Sizemore, Director of Community Development and Neighborhood Services Meaghan Overton, Housing Manager Re: May 23, 2023 Work Session Summary – Land Use Code Extended Discussion __________________________________________________________________ At the May 23 Work Session, staff updated Council on engagement conducted so far related to the Land Use Code (LUC) changes, received feedback regarding potential code alternatives, and received guidance on next steps. The staff presentation was provided by Caryn Champine, Meaghan Overton, and Paul Sizemore. Mayor Arndt was absent. All other Councilmembers were in attendance. Summary of Feedback Council discussed the content for this work session in multiple segments. The presentation began with a summary of engagement events to date. Councilmembers were overall pleased with engagement efforts and complimented staff work on events including the open house and a series of walking tours. Many Councilmembers were able to attend one or more engagement events and indicated that they were well done and valuable for Councilmembers and attendees. Following the discussion about engagement, Councilmembers reviewed a series of polarity maps for 5 specific topics: Accessory Dwelling Units, 2-5 plexes, Affordable Housing, Private Covenants/HOAs, and Parking. Council discussed each topic in turn, identifying the direction they would like staff to take when drafting code options to present at the July work session. An overview of the polarity map framework has been included below for reference. Council also reviewed staff’s proposed direction about two additional topics: Community Input in Development Review and Short-Term Rentals. Specific Feedback Accessory Dwelling Units (ADUs): Most Councilmembers supported a direction that seeks to maximize both housing capacity and options that fit in with the existing context (top right quadrant). Some Councilmembers supported more emphasis on options that fit in with the existing context (bottom right quadrant). Additional potential regulations discussed by Councilmembers included: • Support for allowing ADUs more widely alongside design requirements to address concerns about privacy, shading, and overall visual impact. • Support for allowing a separate exterior entrance for attached ADUs. • Support for further work on parking requirements, including exploration of tandem spaces. • Exploration of lot size requirements that could limit where ADUs are permitted; alternatively, some suggested that ADUs on smaller lots could potentially require additional privacy regulations. • Exploration of options that would require owner-occupancy of either the primary house or the ADU. Some expressed concern that ADUs could circumvent occupancy regulations, and owner- occupancy requirements were one potential solution shared during the discussion. • There was some discussion of whether specific proposed changes should be referred to the ballot if Councilmembers are not hearing consensus or definitive feedback. 2-5 plexes: Councilmembers explored several potential directions for 2-5 plex Land Use Code (LUC) requirements. Overall, Councilmembers encouraged a greater emphasis on transit corridors for these “missing middle” housing types. Councilmembers requested a comparison of where 2-5 plex buildings are permitted in the current LUC and repealed code (see follow-ups section below). Additional analysis was also requested that would identify lots where 2-5 plex buildings are actually feasible, which staff will provide as part of the July 31 work session code alternatives for 2-5 plexes. Additional potential regulations discussed included: • Consider allowing 2-5 plexes along transit corridors only; alternatively, consider allowing a smaller number of units further away from transit and a higher number of units closer to transit. • Exploration of incentives to incorporate existing buildings. • Support for design regulations where 2-5 plexes are permitted. • Exploration of expanding where 2-5 plex buildings are permitted if affordable housing is provided. Affordable Housing: Overall, Councilmembers expressed support for maximizing affordable housing incentives and expanding incentives citywide (top right quadrant). Several Councilmembers requested additional information about mandatory inclusionary housing (IHO) and the potential phasing of an IHO policy. Councilmembers asked about the role of the LUC in affordable housing, noting that some policies (e.g., impact fees) are not directly regulated by the LUC. Specific topics explored included: • Overlap between incentivizing incorporation of existing buildings and naturally occurring affordable housing. Support for exploring ways to keep existing and more affordable housing stock. • Discussion about Proposition 123 funding and Fort Collins’ eligibility for the funding. • Discussion about the relationship between housing supply and affordability. Some Councilmembers expressed doubt that increased housing supply will improve housing affordability. Private covenants/HOAs: Councilmembers supported including HOAs in land use changes. While Councilmembers generally agreed that additional housing types permitted through LUC changes should also apply in HOA communities, Council also clarified that HOAs should still be able to regulate design and other community characteristics. There were several legal questions about HOA covenants that could indirectly restrict housing types (e.g., no overnight parking). A legal memo will be drafted and shared with Council to address these questions with the materials for the July 31st materials. Parking: Overall, Councilmembers supported “right-sizing” parking requirements and encouraged careful consideration of parking impacts to adjacent neighborhoods if less parking is required. Councilmembers discussed the following additional regulations: • Support for parking reductions for affordable housing projects • Acknowledgement that there is a balance between having too much parking and not enough parking, and a trade-off between space on a site for parking and space for housing. • Exploration of allowing tandem parking spaces to “count” toward parking requirements. • Exploration of ways to encourage permeable paving. Community Input in Development Review: Councilmembers generally supported staff’s proposed direction on community input in development review. Council encouraged exploration of dedicated comment periods, posting comments online, and requiring neighborhood meetings for housing developments. Some Councilmembers noted that the Planning and Zoning Commission plays an important role, particularly when a development requires modifications from the LUC. Councilmembers discussed that when a development meets code requirements, administrative approval may be appropriate. When a development does not meet code requirements, some Councilmembers suggested requiring a public hearing. Short Term Rentals: Councilmembers generally supported staff’s proposed direction on short term rentals (STR). Councilmembers agreed that changes to the code should not create additional opportunities for STR. Staff will explore code options that would limit or prohibit new STR in ADUs and 2-5 plexes. Follow ups and Clarifications As follow-up from this work session, staff will share several additional analyses with Councilmembers now and in the coming weeks: • Summary of zone districts listing the housing types allowed currently under the LUC and the housing types that would have been allowed under the repealed code (attached to this Memo) • Memorandum on mandatory inclusionary housing ordinance (IHO), potential phasing, and policy considerations • Memorandum on deconstruction of existing structures • Legal memorandum regarding HOA covenants and potential for covenants that indirectly restrict housing types Next Steps • Public engagement will continue into June and July. Engagement will focus on creating opportunities for general audiences, and community members who have been underrepresented at engagement events so far, including those who speak Spanish as their primary language, renters, Native American community members and others who may identify as BIPOC. • Engagement materials will begin to include potential alternatives, and how those connect to feedback received through the re-engagement process. These alternatives will be presented within a polarities framework to allow community members to engage with potential trade-offs. • A memo will be provided in late June that will summarize community feedback collected throughout the re-engagement process. Where possible, staff will share information with Council about the number of unique/repeat participants at engagement events. • Council will continue to discuss the Land Use Code Updates at the July 31 work session. The July work session will summarize engagement findings and provide a range of code alternatives for Council’s consideration. Attachment 1. Housing Types allowed by Zone District LDC Article 4 – Use StandardsChanges in Residential Zone DistrictsRESIDENTIAL DISTRICTSRULUERFRLOT-AOT-BMHRESIDENTIAL USESExisting Proposed Existing Proposed Existing ProposedExisting Proposed Existing Proposed Existing Proposed Existing ProposedSingle Unit DwellingʆɂʆɂɊɂʆɂɂɂɂɂSingle Unit Attached DwellingʆʆNot AllowedɂNot AllowedɂTwo Unit Dwelling/DuplexʆʆNot AllowedɂɂɂMulti-Unit DwellingɊɂMixed-Use Dwelling UnitsAccessory Dwelling UnitNot AllowedɂNot AllowedɂNot AllowedɂNot AllowedɂʆɂʆɂNot AllowedɂShort Term Primary RentalsɅɅɅɅShort Term Non-Primary RentalsExtra Occupancy Rental HousesʆʆManufactured HousingʆʆGroup HomesʆʆɊɊɊɊɊɊʆʆʆʆShelter for victims of domestic violenceɂɂɂɂʆʆɂɂɂɂɂɂɂɂɂɊ - Public Hearing and Neighborhood Meeting (Type 2)ʆ - Public Hearing (Type 1)- Administrative (BDR)The red color indicates a change from LUC to the LDCɅ - Licensing LDC Article 4 – Use StandardsMIXED-USE DISTRICTSLMN MMN HMN OT-C NCRESIDENTIAL USES Existing Proposed Existing Proposed Existing Proposed Existing Proposed Existing ProposedSingle Unit DwellingʆɂʆɂɂɂSingle Unit Attached DwellingʆɂʆɂɂɂʆʆTwo Unit Dwelling/DuplexʆɂʆɂʆɂʆʆMulti-Unit DwellingʆɂʆɂʆɂʆɂMixed-Use Dwelling UnitsʆɂʆɂʆɂAccessory Dwelling UnitNot AllowedɂNot AllowedɂNot AllowedɂNot AllowedɂNot AllowedɂShort Term Primary RentalsɅɅɅɅɅɅɅɅShort Term Non-Primary RentalsExtra Occupancy Rental HousesʆʆɂɂɂɂɂɂɂɂManufactured HousingɊɊGroup HomesɊɊɊɊɊɊʆʆʆʆShelter for victims of domestic violenceɂɂɂɂɂɂɂɂChanges in Residential Zone DistrictsɊ - Public Hearing and Neighborhood Meeting (Type 2)ʆ - Public Hearing (Type 1)- Administrative (BDR)The red color indicates a change from LUC to the LDCɂɅ - Licensing LDC Article 4 – Use StandardsChanges in Residential Zone DistrictsRESIDENTIAL DISTRICTSRULUERFRLOT-AOT-BMHRESIDENTIAL USESExisting Proposed Existing Proposed Existing ProposedExisting Proposed Existing Proposed Existing Proposed Existing ProposedSingle Unit DwellingʆɂʆɂɊɂʆɂɂɂɂɂSingle Unit Attached DwellingʆʆNot AllowedɂNot AllowedɂTwo Unit Dwelling/DuplexʆʆNot AllowedɂɂɂMulti-Unit DwellingɊɂMixed-Use Dwelling UnitsAccessory Dwelling UnitNot AllowedɂNot AllowedɂNot AllowedɂNot AllowedɂʆɂʆɂNot AllowedɂShort Term Primary RentalsɅɅɅɅShort Term Non-Primary RentalsExtra Occupancy Rental HousesʆʆManufactured HousingʆʆGroup HomesʆʆɊɊɊɊɊɊʆʆʆʆShelter for victims of domestic violenceɂɂɂɂʆʆɂɂɂɂɂɂɂɂɂɊ - Public Hearing and Neighborhood Meeting (Type 2)ʆ - Public Hearing (Type 1)- Administrative (BDR)The red color indicates a change from LUC to the LDCɅ - Licensing LDC Article 4 – Use StandardsMIXED-USE DISTRICTSLMN MMN HMN OT-C NCRESIDENTIAL USES Existing Proposed Existing Proposed Existing Proposed Existing Proposed Existing ProposedSingle Unit DwellingʆɂʆɂɂɂSingle Unit Attached DwellingʆɂʆɂɂɂʆʆTwo Unit Dwelling/DuplexʆɂʆɂʆɂʆʆMulti-Unit DwellingʆɂʆɂʆɂʆɂMixed-Use Dwelling UnitsʆɂʆɂʆɂAccessory Dwelling UnitNot AllowedɂNot AllowedɂNot AllowedɂNot AllowedɂNot AllowedɂShort Term Primary RentalsɅɅɅɅɅɅɅɅShort Term Non-Primary RentalsExtra Occupancy Rental HousesʆʆɂɂɂɂɂɂɂɂManufactured HousingɊɊGroup HomesɊɊɊɊɊɊʆʆʆʆShelter for victims of domestic violenceɂɂɂɂɂɂɂɂChanges in Residential Zone DistrictsɊ - Public Hearing and Neighborhood Meeting (Type 2)ʆ - Public Hearing (Type 1)- Administrative (BDR)The red color indicates a change from LUC to the LDCɂɅ - Licensing