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Home My WebLink AboutWORK SESSION SUMMARY-06/14/2022-Work Session Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Page 1 of 5 Planning, Development & Transportation Services MEMORANDUM DATE: June 21, 2022 TO: Mayor and City Council THRU: Kelly DiMartino, City Manager Tyler Marr, Interim Deputy City Manager Caryn Champine, Director of Planning, Development and Transportation Paul Sizemore, Community Development and Neighborhoods Service Director FROM: Noah Beals, Development Review Manager Meaghan Overton, Housing Manager RE: June 14, 2022, Work Session Summary – Housing Strategic Plan Implementation: Land Use Code Phase 1 Updates The purpose of this item was to provide updates on progress for the Land Use Code (LUC) Phase 1 Update. Staff sought Council feedback to the proposed changes to the code, specifically to the organization of the code, increases to housing choice, compatibility, and diversity, recalibrating housing capacity standards and expanding affordability incentives. Five members of Council were present in person, Mayor Pro Tem Francis participated remotely, and Councilmember Peel was absent. Feedback The presentation was divided into the following four parts. Reorganization of the Code: Overall: Several Councilmembers expressed support for the recommendations adding clarity and efficiency to the Code through graphics and consolidation. There was appreciation for the emphasis on user-friendliness as well. Specific Feedback:  Establish a way to ensure future Code changes do not create redundancy.  With the proposed name change to “Land Development Code,” consider whether there is equal emphasis given to preservation of land and environmental resources. Clarifications  There are adopted plans that specifically addresses preservation of land. Additionally, the proposed code does not change the requirements that limit the impact on natural areas and other environmental resources. DocuSign Envelope ID: 2CC3FF81-0925-435E-B20D-696158DE52A3 Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Page 2 of 5 Planning, Development & Transportation Services Housing choice, capability, and diversity: Overall: Several Councilmembers expressed support for the recommendations for increases to housing choices and recalibrating compatibility/diversity standards. Specific Feedback:  Supportive of expanding Accessory Dwelling Units (ADU) to all residential and mixed-use zones. Councilmembers noted a need to clarify understanding of where Short-Term Rentals are allowed and if ADU’s can be limited to long term rentals.  Allowing ADU’s does not mean residents will be able to build such. Policy changes should make building ADUs feasible.  ADU’s should not be split off from the primary house on their own lot.  Ensure new standards are applied equitably and are not limited by HOA’s or private covenants.  Make sure design requirements are calibrated appropriately.  Recognition that many of the new building types already occur in existing neighborhoods.  The process to shift to Basic Development Review (BDR) is a significant change. Councilmembers had questions about whether specific sized projects would be eligible for BDR under the proposed change. Staff clarified that the proposed change to BDR still includes public notification and opportunity to appeal a decision.  Councilmembers had questions about the appropriate notification area for BDR projects.  With the proposed name change to “Land Development Code” consider whether there is equal emphasis given to preservation of land and environmental resources. Clarifications  The City began working on Short Term Rentals (STR) in 2014. An extensive, multi- year public outreach and research effort led to the adoption in 2017 of a licensing process for STR. Under current regulations, primary short-term rentals are permitted in zone districts that allow bed and breakfast. Non-primary short-term rentals are permitted in zone districts that allow hotels  A primary STR requires the owner to reside on the property and a non-primary STR allows the owner to reside at a different location.  Out of the following ten residential zone districts, only four districts allow Primary, STRs. Zone District Primary, Short-Term Rental Non-Primary, Short-Term Rental Rural Lands (RUL) Urban Estate (UE) Residential Foothills (RF) DocuSign Envelope ID: 2CC3FF81-0925-435E-B20D-696158DE52A3 Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Page 3 of 5 Planning, Development & Transportation Services Low Density Residential (RL) Low Density Mixed-Use Neighborhood (LMN) Medium Density Mixed-Use Neighborhood (MMN) x High Density Mixed-Use Neighborhood (HMN) x Neighborhood Conservation, Low Density (NCL) Neighborhood Conservation, Medium Density (NCM) x Neighborhood Conservation, Buffer (NCB) x  The proposed code changes discussed at the work session do not include changes to these short-term rental regulations. Capacity: Overall: There was a mix of opinion for proposed changes to increase housing capacity. Several Councilmembers expressed support and noted that changes to add housing capacity accurately reflect the input received during public outreach for the City’s adopted policy direction in City Plan, the Transit Master Plan, the Housing Strategic Plan, and the Our Climate Future Plan. Others felt that an increase in housing capacity would not solve the problem of affordability and could lead to negative impacts in existing neighborhoods. Specific Feedback:  The proposed parking reductions apply only to multi-unit development. Several Councilmembers encouraged staff to also explore parking reductions for single-unit dwellings and townhouses. Overall, several Councilmembers noted that a shift is necessary in how the City’s regulations address parking and transit to achieve goals in the City’s adopted plans.  Several Councilmembers questioned whether the proposed parking reductions were substantial enough, and whether parking requirements should be reduced further.  An increase in the number of dwelling units per acre can encourage development of smaller units. This is important not just because of cost but also aligns with what some Councilmembers hear about peoples’ desire to live in smaller units and accommodate different family sizes. Options are needed and this can provide choices.  Councilmembers noted that added capacity is not a guarantee of reducing cost for the resident. DocuSign Envelope ID: 2CC3FF81-0925-435E-B20D-696158DE52A3 Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Page 4 of 5 Planning, Development & Transportation Services Clarifications  Reduction of minimum lot sizes are being proposed only in the existing old town zone districts.  The proposed 2,000 sf floor area is only for the Detached Urban House building type. The Detached Suburban House building type would allow for greater than 2,000 sf. However, the Detached Suburban House would not be allowed in the old town zone districts. Affordability: Overall: All Councilmembers expressed support for recommendations to expand affordable housing incentives to other zone districts and find ways to encourage developers to build affordable units into their projects. Specific Feedback:  Councilmembers encouraged staff to make sure that projects are required to provide equal access to amenities on site and equal treatment of residents in affordable units.  Several Councilmembers questioned whether the City’s affordability term could be permanent rather than lasting for 50 to 60 years.  Councilmembers noted a need to build in compliance standards that are enforceable and penalties for noncompliance, stating that the penalties should exceed benefit received.  Building height should not be measured based on stories but rather by feet from a defined grade.  Councilmembers had questions about the impact of housing incentives and additional height on properties adjacent to the Poudre River, specifically in the CCR zone. Follow-up was requested about this area (see Clarifications below).  Councilmembers had questions about why affordable housing incentives have to date been limited to the LMN and Transit-Oriented Development Overlay zones (see Clarifications below).  Councilmembers noted that the community has a lot to do in building affordable housing because we are already behind. Several Councilmembers asked about mandatory inclusionary housing programs and whether the proposed incentives would result in sufficient production of affordable housing. Clarifications  As a result of substantial revision to the Downtown zone in 2019, the CCR zone district is now a small area in the city and does not include the Poudre River. The Poudre River is mostly in the Downtown zone district within the River Corridor subdistrict. This River Corridor subdistrict does not allow any residential uses. Therefore, the proposed incentives will not apply to this area.  Current affordable housing incentives were limited to the LMN zone district for the following reasons: o When the current Code was adopted in 1997, staff and decision-makers anticipated most new development in the LMN zone. DocuSign Envelope ID: 2CC3FF81-0925-435E-B20D-696158DE52A3 Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Page 5 of 5 Planning, Development & Transportation Services o Other zone districts that allow for greater density (for example, the MMN zone) do not have a maximum density. They only have minimum densities. Next Steps Overall: Staff intends to move forward with legal review of a draft Code, with public engagement and testing of the proposed code this summer. Specific next steps are listed below. Councilmembers encouraged staff to include engagement with residents who participated in developing the City’s adopted plans (City Plan, Housing Strategic Plan, etc.).  Public engagement and testing – Ongoing o Virtual engagement opportunities to educate, seek input, test code changes, and keep the public informed o Workshops and presentations with a range of City departments o Presentations to multiple Boards and Commissions o Dialogues with community groups and members of the public o Advisory meetings with the LUC Phase 1 Working Group  Public Review Draft Code – summer 2022  Consideration of Adoption – fall 2022 DocuSign Envelope ID: 2CC3FF81-0925-435E-B20D-696158DE52A3