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HomeMy WebLinkAboutMemo - Mail Packet - 3/28/2023 - Memorandum From Ginny Sawyer Re: Legislative Update – Housing Bill Summary [Sb23-213 Land Use] City Manager’s Office City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com Date: March 23, 2023 To: Mayor and City Council From: Ginny Sawyer, Policy and Project Manager Thru: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager RE: Legislative Update – Housing Bill Summary [SB23-213 Land Use] It is anticipated that the statewide “Housing Bill” will be introduced this week. Staff has received the attached summary. Once the Bill is numbered and submitted it will be added to the tracker which can be found at the link below. Clicking on the Bill within the tracker will open the Bill (estimated at 110 pages.) The Bill tracker can be found here: https://www.fcgov.com/citymanager/legislative.php DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A March 19, 2023 __________________________________________ MORE HOUSING NOW: Policy Summary Sponsors: Sen. Moreno, Rep. Woodrow, Rep. Jodeh Goals of the Policy Package: The Problem:Housing costs are forcing Coloradans out of their neighborhoods,and housing shortages are making the problem worse.Seniors who want to downsize,young people living on their own,and first-time homebuyers,all struggle to find homes.People are moving further from where they work and spending more on transportation costs.As a state,this means more congestion on our roads,more pollution,and more businesses without workers.These problems are inter-jurisdictional and beyond any community's ability to solve alone.If we don’t act now, we risk facing the point of no return, and Colorado could become like California. The Solution:We need more housing for every Colorado budget across the continuum.This policy package will drive down the cost of housing for ownership or rent by allowing more housing options to be built in smart locations within municipalities,especially in the urban municipalities and rural resorts with the greatest need. THE PACKAGE DOES…..THE PACKAGE DOES NOT…. Create more options for property owners to build a variety of housing types in smart locations. Discourage or prevent single-family homes. Streamline regulations to make it easier to build a variety of housing types. Tell cities or property owners what they have to build. Respect the municipal role in land use decision-making.Allow the state to regulate every aspect of land use decision making. Speed and complement implementation of Colorado's historic investments in affordable housing. Control local affordable housing policies. Create a policy floor that tailors strategies to the needs of different communities and regions. Apply one-size-fits-all standards to the state. Focus on larger municipalities and metro areas as the right place for more housing options. Require denser housing types in unincorporated areas or rural areas of the state. Strengthen collaboration between local, regional, and state entities to plan for great neighborhoods for Coloradans. Create a top-down West Coast system of statewide planning. 1 DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A Key Policy Details ●Geographic Application of the Policy Package: The package applies policies to different tiers of municipalities. The most impactful policies apply only to Urban Municipalities and Rural Resort Job Center Municipalities. ●Urban Municipalities Tier 1 and 2: All municipalities in Metropolitan Planning Organizations (MPOs) that meet criteria for population size, and population of Census Urbanized Areas. ●Rural Resort Job Center Municipalities:Municipalities that are outside MPOs, and meet criteria for population, jobs, and regional transit service. ●Non-Urban Municipalities: All other municipalities with greater than 5,000 population. ●Small or Rural Municipalities:Small or rural Municipalities that are not included in the above criteria and are only required to meet Statewide policies ●Statewide: All cities, counties, and city/counties. ●Counties:Policies requiring housing do not apply to Counties.Counties are subject to Statewide policies. Larger Counties are subject to analysis and reporting requirements for Strategic Growth items. Exemptions from the policy for non-urbanized areas,sensitive and hazardous areas, water supply, and extensions for areas with a lack of water/wastewater infrastructure. ●Flexible Option and Default Option The proposal sets up a framework for each policy area that allows municipalities to choose: ●An option with flexible minimum standards.In this option,municipalities will have flexibility to fine tune their standards to meet local needs. They may also keep the codes they have if they already meet minimum standards. ●Or, adhere to a state-developed default model code,which will automatically apply to municipalities that do not choose the flexible option. ●Technical Assistance DOLA will provide technical assistance for communities to accomplish the items within this package (code changes, housing plans, etc). ●Implementation The Executive Director (ED) of DOLA is authorized to promulgate rules, policies, or procedures to implement these sections, supported by Division of Local Government (DLG) and staff from CEO, CDOT, and DNR. A multi-agency advisory committee of DOLA, CEO, CDOT, and DNR will hold public processes and propose rules and policies to the ED of DOLA for approval. PART 1. Housing Needs Assessments and Housing Needs Plans Purpose: ●Determine housing needs and set housing goals so that Colorado can provide housing at every budget. ●Identify affordability strategies that are tailored to local and regional needs. 2 DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A ●Provide a framework for state, regional, and local agencies to track progress and align investments and policies. Proposed Policies: ●Housing needs assessment at the state, regional, and local level every 5 years, completed by state agencies to have a consistent and holistic understanding of housing needs statewide. ●Local Housing Plans every 5 years ●Required Strategies from the Menu of Affordability Strategies: two strategies for all subject municipalities and three strategies for municipalities with fixed-rail transit stations ●A Menu of Displacement Mitigation Strategies will provide guidance to identify areas at risk for displacement and strategies to mitigate that risk. ●Unique Rural Resort Approach with Regional Strategies PART 2. Accessory Dwelling Units & PART 3. Middle Housing Purpose: ●Provide housing types that are more affordable to Coloradans:Accessory Dwelling Units (ADUs,also known as backyard carriage houses),duplexes,triplexes,multiplexes and townhomes. Proposed Policies: ●Flexible Option minimum standards: ○Allow ADUs and Middle Housing types in all residential zones. ○Must be a "by-right" permitted use with administrative review. ○Municipalities can update or keep their own code, so long as it meets minimum standards, or follow the state-developed model code. ○Flexible parking standards - jurisdictions can’t require parking, but owners can add parking. ○Municipalities may regulate short term rentals in these housing types and apply affordability strategies at their own discretion. ●Default Option ○Additional detailed zoning requirements and standards as needed. ○Projects that meet the standards must be administratively approved by the municipality. PART 4. Transit Oriented Communities & PART 5. Key Corridors Purpose: ●Reduce housing AND transportation costs by adding housing near transit. ●Create walkable and bikeable neighborhoods that are great places for people. ●Allow community institutions to help solve the housing crisis. Proposed Policies: ●Transit Oriented Communities: housing around rail transit stations. ●Key Corridors: housing around bus transit corridors, commercial job centers, downtowns, 3 DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A and community institutions (property owned by schools, religious orgs, and governments). Flexible Option minimum standards: ●Municipalities have flexibility to allow different levels of density of multi-family housing as a use by right close to fixed-rail transit stations. ●Municipalities have flexibility to identify areas (centers, districts, or nodes) within Key Corridors where multifamily housing is most optimal for their community, while meeting the overall average zoning density for the corridor. ●Municipalities apply affordability strategies chosen from the Menu of Affordability Strategies, and strategies from the Menu of Displacement Mitigation Measures if needed, as determined by municipality. ●Flexible parking standards mean jurisdictions can’t require parking, but developers and landowners can add parking as needed. Default option model code: ●More detailed zoning standards as necessary and a density "bonus" for affordable projects. PART 6. Removing Restrictions on Housing Affordability Purpose: ●Streamline regulations to reduce housing cost and time delays. Proposed Policies: ●Manufactured housing:Streamline processes so that manufactured housing is regulated equivalent to stick-built homes.(Urban Municipalities, Rural Resort Job Centers, Non-Urban Municipalities) ●Unit sizes:Remove minimum residential square footage size restrictions, except those established for fire and building code standards.(Urban Municipalities) ●Occupancy restrictions:Remove occupancy restrictions based on the familial status of residents.(Statewide) ●Home Owner Associations (HOAs) and Planned Unit Developments (PUDs): Change state statutes to ensure that affordable housing types can be allowed in HOAs and PUDs. PART 7. Strategic Growth Planning and Water Purpose: ●Does not add new authorities to state agencies. ●Requires consistent analysis and reporting in state, local, and regional planning processes. State Agency Proposed Policies: ●Strategic Growth Objectives ●State Agency Programs: Funding Guidelines and Streamlining Processes ●Transportation Planning ●Benefits of Strategic Growth Study ●Natural and Agricultural Land Priorities Report 4 DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A Local Government Proposed Policies: ●Greenfield Development Analysis ●Additional Elements for Comprehensive Plans ●Require a water element in Comprehensive Planning ●Water Loss Reporting More Detail on the Geographic Application Which Policies Apply Where: Urban Municipalities Tier 1 Urban Municipalities Tier 2 Rural Resort Job Center Municipalities Non-Urban Municipalities Statewide (Counties, small munis) 1.Housing Needs Assessments & Plans X X X 2.Accessory Dwelling Units (ADUs) X X X X 3.Middle Housing X With additional flexibility 4.Transit Oriented Communities (rail) X 5.Key Corridors (bus transit, commercial corridors, etc) X With additional flexibility 6.Removing Barriers (Miscellaneous) X X With additional flexibility X Occupancy restrictions only 7.Strategic Growth Planning & Water X X X X Larger Counties only More Detail on the Benefits of this Package Affordability Removing restrictions on housing will increase the construction of all types of housing for every Colorado budget. Workforce Many Colorado employers struggle to fill positions and retain workers because of a lack of available and affordable housing.Our teachers,firefighters,and nurses are being priced out of the communities where they work by restrictive local housing laws.This proposal will help these workers continue to live in the communities they serve. 5 DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A Water Efficient development and compact housing design use less water.A study predicted that every one percent of land in the City of Denver converted from single-family to multi-family development saves enough water to supply an additional 141 four-person households. Emissions Compact,mixed use development close to public transit can reduce driving 20-40% compared to low density, auto-oriented development. Equity Building housing of all types and sizes can increase access to homeownership, especially in resource-rich areas with jobs, safe streets, and quality schools. Healthy and Active Communities People who live in walkable neighborhoods are 47%more likely to be active at least 30 minutes a day.Coloradans who walk or bike for transportation and recreation save residents $3.2 billion annually in health care costs and contribute $1.6 billion to the local economy through household spending, manufacturing, exports and tourism. Local Government Costs Compact development costs less to provide public infrastructure and services for, and produces more revenue per acre than low density development. Resilience & Conservation The number of people living in Colorado’s wildland-urban interface grew by almost a million people in just 5 years.Building better and smarter helps reduce ex-urban sprawl and can help limit the loss of agricultural and natural lands. __________________________________________ on Twitter @COBuildsBetter 6 DocuSign Envelope ID: C37097A8-345A-4298-A31B-E6F24042343A