HomeMy WebLinkAboutMemo - Mail Packet - 1/11/2022 - Memorandum From Noah Beals And Meaghan Overton Re: Housing Strategic Plan Implementation: Land Use Code Phase 1 Updates - Diagnostic ReportAPPENDIX 4:
Data Sources & Key Assumptions
103
•Data Sources
•Cost Assumptions
•Market Assumptions
•Affordability Assumptions
•Impact Fees
•Other Assumptions
104
Data Sources
Six Local Developer Interviews
To understand development costs, market rents and prices, and local rate of return targets, as well as barriers to
development. The developers interviewed have experience ranging from developing small single family homes in planned
unit developments to multi-unit mixed use projects.
Four Online Data Sources’
To estimate various market conditions and development costs.
•CoStar: a real estate database, was used to determine the average rent price, rent per square foot, and unit size
for multifamily built after 2015 in residential and mixed use zones in Fort Collins.
•RSmeans: construction estimating database, was used to determine average current construction costs for various
housing types, including single family homes, multifamily, and townhouses.
•Redfin & Zillow: was used to determine average sale prices per sq ft, average sale price for vacant lots, average
unit size, and average lot size for single-family homes and townhouses built after 2015.
Below data sources provided an understanding of the market conditions, development costs, and rent and sales prices for
various residential development types in Fort Collins.
104
105
Cost Assumptions
Construction Costs Cost (per sqft)
Single Family Detached $150
Townhouse $155
Multi-Family up to 4 stories (Wood Frame)$175
Mixed-Use or Multi-Family 5 or more stories
(podium construction)
$200
Land & Site Development Costs Land Cost (per sqft)Site Development
Cost (per sqft)
Demo Cost (per sqft
floor area)
Raw Land $5 $8 -
Finished Lots $25 --
Infill Lots $20 -$15
105
106
Market Assumptions
Market Prices & Unit Sizes Market Price
(per sqft)
Urban Unit Size
(sqft)
Suburban Unit
Size (sqft)
Single Family Detached $240 1,800 (3-bed)2,000 (4-bed)
Townhouse $270 1,500 (3-bed)1,800 (3-bed)
Condominium $290 750 (1-bed)1,000 (2-bed)
Market Rent & Unit Sizes Rent Price (per sqft)Urban Suburban
Unit Size (sqft)Mix Unit Size (sqft)Mix
3-bedroom $1.80 1,100 10%1,200 20%
2-bedroom $2.00 850 20%975 30%
1-bedroom $2.20 650 30%725 30%
Studio $2.70 500 40%500 20%
106
Affordability Assumptions
Fort Collins Area Median Income $95,900 (4-Person Household)
Note that we selected a 4-person household AMI for all prototypes. If the AMI was based on a smaller 2 or 3 person
household, then AMI would be lower and the rent and sale price estimates provided for each prototype would be less
affordable for these smaller households.
Mortgage Terms
Broker Fees 5%
Loan Terms (months)360
Upfront UFMIP 1.75%
Downpayment 3.5%
Interest Rate 5%
Mortgage Insurance 0.85%
107
107
Impact Fees
System Development Charges Link to Fee Information Fee Formula
Water & Sewer Fort Collins - Loveland Water District Tap Fee
Schedule
See Link
Electric Electric Development Fee Estimator Single Family and/or Townhome:
$1,374 per unit
Multi-Family:
$2,172 per unit
Stormwater Fort Collins Stormwater Plan Investment Fee See Link
Building Permit Building Services - How to Calculate Building
Permit Fees
See Link
Capital Improvement Fees Capital Improvement Expansion Fees See Link
Larimer Regional Road Fees Engineering - Larimer County Regional Road Fees See Link
108
108
Impact Fees (Cont’d)
Link to Fee Information Fee Formula
Poudre School District Impact Fees Building Permit Fee Schedule Single Family Detached or 2 - 4 Attached Units:
$1,710 per unit
5 or more Attached Units
$855 per unit
Thompson School District Impact
Fees
Building Permit Fee Schedule Single Family Detached or 2 - 4 Attached Units:
$1,382 per unit
5 or more Attached Units
$946 per unit
City and County Tax Building Permit Fee Schedule 4.65% on half of the total construction valuation
Development Review Fees Transportation Development
Review Fees
Poudre Fire Authority
Development Review Fee
Estimate: $2,000
109
109
110
Other Assumptions
Target Returns
Internal Rate of Return 12%
Project Rate of Return 15%
Property Tax Residential Commercial
Tax Rate 9.40%9.40%
Assessment Ratio 7.15%29.00%
110