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On Tuesday, Dec. 11, the Longmont City Council voted to approve an ordinance to amend chapters 4.79, 4.99, 15.05 and 15.10 of the Longmont Municipal Code on Inclusionary Housing.
All members of the council were in favor of the ordinance passing with the exception of Council member Bonnie Finley.
Noticing the regional trend in rising housing costs, the City of Longmont recognized a need to intervene in order to increase the supply of affordable housing in Longmont for low, moderate, and middle-income households. Not only do rising housing costs impact where these demographics live, it also impacts the local economy due to local employers not being able to maintain an adequate workforce.
Longmont is already seeing a limit on the land available for housing development. As such and according to ordinance O-2018-51, "It is essential that a reasonable proportion of such land be developed into housing units that are affordable to low and moderate income residents and working people."
One of the solutions to inclusionary housing is to require that 12% of all market-rate housing development should include affordable housing. This number was determined based on economic indicators and community needs.
Developers are allowed an in-lieu fee option, which means they are able to build the allotted 12% of affordable housing on a different site away from the market-rate housing for a fee.
"Accordingly, the in-lieu fee is set initially at $7.90 per square foot of finished
market-rate for-sale housing, and $1.90 per square foot of finished market-rate rental housing," is stated in the ordinance.
Although the affordable homes can be located in a different section of town, developers are still required to provide the same amount of affordable homes as would have been required on site.
To ensure that these affordable homes will be built, "No final plat or site plan shall be executed for the location of the market-rate units until a final plat sufficient to facilitate the development of the affordable units, and site plan if necessary, have been recorded," states the ordinance.
During the council meeting itself, City Manager Harold Dominguez asked council to give direction on the density cap for in-lieu fees on affordable rental properties.
This density cap, as Council member Marcia Martin clarifies, is not to cap the density from climbing higher or to keep developers from building more units, but to limit the number of units that will be subject to the in-lieu fee.
Council member Tim Waters moved to have 20 units per acre be the limit for the in-lieu fee. Mayor Pro Tem Polly Christensen suggested that council bring the issue back in January due to the lack of exact language being available at the time of voting.
Dominguez stated that, in acknowledging that council had expressed interest in passing this ordinance tonight, city staff had indeed drafted language should this situation present itself.
After a short pause in the meeting for council to read the proposed language, Mayor Pro Tem Christensen asked if anyone in attendance would oppose adding the language this evening, and no opposition was heard.
The motion to cap the in-lieu fee to 20 units per acre passed unanimously.
A motion was made and unanimously passed to adopt the new language suggested by city staff.
Mayor Bagley then opened the floor to the public.
Natasha Hubbard, chair-elect for the Longmont Association of Realtors Board of Directors, stated, "We believe inclusionary housing places an undue burden on the development community. It is unfair to ask these companies to absorb the costs of constructing affordable homes simply because it is their profession."
Edwina Salazar, Executive Director of the OUR Center, encouraged council to take a look at the self-sufficiency standard of 2018 was released by the Colorado Center for Law and Policy. "The results of this standard show that Boulder County has one of the highest rising costs of living in the entire state." Without speaking for or against the ordinance, she further encourages council to continue their "efforts in improving the housing situation in Longmont."
Council member Bonnie Finley wanted council to be aware of the unintended consequences of passing this ordinance when she stated:
Here is what we know. There will be less number of housing units built. The cost of homes will rise in Longmont by at least $20,000 per house or more. Most of the houses that will be built, will be built in that area where the builders don't have to pay or build the affordable housing. So, those will be tract homes because that will be the price range we will have. They will all look alike because you can't have any customizing of that price range of house. For a 1,600 sq. ft. house, it costs $430,000. The price per house for our inclusionary housing ordinance would be $12,940 per house. At 50 houses that is $632,000, so at 100 houses it is almost $1.3 million just for inclusionary housing fees, which means nothing will be built. Once again, an unintended consequence. Just so you go into it with your eyes open, these are just facts. The reason we have those high numbers for Boulder County is because of Boulder. And Boulder's had this inclusionary zoning which has made the costs of their housing go to over $800,000. Their average home price is over $800,000. That's the kind of thing we're going to have in Longmont, because we are going down the same path they've gone down. So I just want you all to be aware of what will happen.
Council member Waters stressed that, "This is not just an ordinance. The ordinance is just one key tool in a larger set of tools that becomes a package in that part of a housing policy in a housing program."
Waters also reminded council and the city that the council made a commitment to monitor the effects of this program.
Mayor Bagley moved for city staff to bring a report back to council on the effects of this ordinance every six months.
The ordinance passed with only Council member Finley against.
