Longmont is moving forward with a fee waiver program for attainable housing.
While the city has a program already in place for affordable housing, defined as housing serving families with incomes less than 80% the area median, city staff noted during Tuesday’s study session that there is a growing need for “attainable housing” in Longmont.
Attainable housing as defined by city staff is housing serving families in the 80.1-120% AMI. The proposal discussed with council would waive city fees for building this type of housing for purchase. Attainable rentals aren’t included in the approach at this time as the city is waiting on more data.
City Manager Harold Dominguez estimated that the fee waivers would save developers between $25,000-$35,000 per unit depending on the cost of the house and several other factors. This would be for houses selling around $290,000-$600,000 — what families in the attainable housing range could afford to purchase that are quickly disappearing from the market.
“I think if we don’t start doing something in this attainable realm, in five or ten years down the road we’re likely going to be talking about 80-100% AMI in the same way we’re talking about below 80% AMI,” he said.
To qualify, as proposed, a developer must apply, meet a minimum criteria and then have the option to meet additional requirements for further fee waivers.
Those optional add ons could include deed-restricting the properties, allowing the right of first refusal for people who work for a Longmont employer or for the city of Longmont and more. While the city council was overall in support of staff continuing their work on this project, further discussion will be needed on the specific additional benefits.
Housing and Community Investment Division Director Molly O’Donnell described what success of this program would look like.
“This is perhaps an aspirational goal, but really we would hope to see a 20% increase in new construction homes sold at these prices (between 80-120% AMI),” she said.
All council members were supportive of staff’s work, even with the questions still yet to be answered. Councilmember Susie Hidalgo-Fahring emphasized that there is a need for this type of housing in Longmont, and that it wouldn’t take away from affordable housing work.
“It’s really for our working class people,” she said. “We cannot afford market rate homes, and we make too much to qualify for any sort of subsidy.”
Staff said they will continue working on this proposal and return with an ordinance.
