The Longmont City Council heard a presentation by Molly O'Donnell, city of Longmont housing director, concerning implementing a fee waiver program. The program is designed to be a step up to homeownership for those falling in the 80% to 120% area median income bracket.
O’Donnell’s team brought a similar presentation before council in April. At the time, city staff was instructed to look further into deed restrictions, employer-sponsored units and local employment preference from a fair housing lens.
City staff noted that city-sanctioned building fees can influence the price of a home. O’Donnell noted that while the government plays a role in creating attainable housing, it will also take partnerships with others, including local employers.
The housing team proposed that developers could apply for a fee waiver if they were creating for sale attainable housing. The developer would need to demonstrate a financial need to apply for the waiver. They would also have to have a written agreement with the city of Longmont that restricts the sale price that is in accordance with the city’s inclusionary housing sales price. The buyers of these homes would need to be income-qualified and live in the home.
In the city’s research, it found that deed restrictions were not desired by developers, however, as a compromise, developers suggested a 7-10-year restriction, which is the term limit the city arrived at.
The city staff divided the fee waiver program parameters into two sections, large investment and small investment by the city.
Large investment properties would seek 45% or more in waived fees. As a result, the properties would become deed-restricted for 10 years and roll over for up to 30 years or after the third sale — whichever comes first, according to the city.
Small investment properties are considered to be those that seek less than 45% in waived fees. The city council agreed that these properties would have a 10-year fixed deed restriction that would not roll over.
Longmont employers would have the option to invest in attainable housing for employees. This type of housing could include fee waivers from the city if an employer chooses to negotiate such terms with a builder. Employers could also purchase homes within a development.
City Council chose to modify the incentive structure to make it more desirable for developers to choose to build affordable housing on their sites.
A first reading for an ordinance on fee waivers is expected to come before council on Oct. 10.
