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HomeMy WebLinkAboutHousing Impact Fee AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY,COLORADO,AMENDING SECTIONS 8-30-10, 8-30-20(a)(1)AND 8-30- 20(b)(1)OF THE PITKIN COUNTY LAND USE CODE, IMPLEMENTING CHANGES FOR CALCULATING THE EMPLOYEE HOUSING IMPACT FEE ORDINANCE NO. -2021 RECITALS: 1. It has been the policy of Pitkin Count,,, to provide affordable employee housing for individuals working in Pitkin County for over four decades. This policy has been reiterated many times by the Board of County Commissioners and is formally contained in the Pitkin County Land Use Code and in the establishment of the inultijurisdictional Housing Authority created by Pitkin County and the City of Aspen. 2. A resident work-force is needed to ensure a sustainable local economy and conimunity. Essential to the maintenance of our colmininity and economy is the availability of stable and qualified workforce. Ensuring an opportunity for the workforce and their families to live in Pitkin County is important to maintaining conuilunity character. 3. An essential component to maintaining Pitkin County's community character is the social, economic and political fabric created by the general sense of conununity that occurs when fan-lilies that work in a community live in the community, attend schools in the community, participate in civic organizations in the community and vote in the community. 4. Housing prices have outpaced the ability of the local workforce to afford market housing. Pitkin Courivy's employee housing impact fee has and will continue to generate funds to offset demand for employee housing caused by employment generation from new development, The County will continue to use these fees to create additional dwelling units to be added to the employee housing inventory. S. Revisions to the Pitkin County Employee Housing Impact Fee are necessary to further the goal of Pitkin County to provide housing that is affordable to employees working in Pitkin County. The Board of County Commissioners has utilized a study prepared by Clarion Associates and Dr.James Nicholas entitled Pitkin County Colorado Affordable Housing Support Study dated November 2004 as well as a report prepared by Rees Consulting. Inc.. entitled Affordable Housing Fee Methodology for Pitkin County dated June 2018. The conclusions and recommendations of these studies have been relied upon by the Board of County Conunissioners and are incorporated by reference into these findings. 6. The BOCC finds that the current state of the real estate economy is strong. This is reflected in the robust activity in the construction industry,property management industry,property planning and development professions and the dynamic real estate sales and rental markets. Therefore, the previous justification for relaxing the mitigation required to a degree less than 100% is no longer present. The potential of the impact fee having a negative effect on the real estate economy does not exist. Therefore, the BOCC finds that it is appropriate that development pay its full fair share to mitigate the impact on the housing market. The BOCC finds that all types of development should mitigate 100%of its housing,impact. T Currently,the calculation of the employee housing impact fee involves the analysis of free market residential sales within the unincorporated area of Pitkin Count-y. Since the inception of the County's housing program, the County, individually and through its multijurisdictional housing authority,APCHA.has created and continues to seek to create housing in all areas of Pitkin County including our three municipalities. The BOCC finds that it is consistent with the goals and activities of the County's housing program to analyze sales data from all areas in the County where housing has been created and where the County continues to look for opportunities to create housing. The BOCC finds it is therefore appropriate to collect sales data from the entire County including our municipalities in order to calculate the impact fee. 8. The BOCC finds that it is appropriate to further change the impact fee calculation methodology by lowering the household income level to 80°16 of the area median income(AMI)as that is determined by the U.S. Department of Housing and Urban Development (USHUD). The calculation of the impact fee utilizes income data to determine the amount of the fee. Currently,the calculation uses income data based upon 100%of AMI. For 2031.the income level for a t-%-,,o person household at 100%AMI is 585,200 per year. For-202 1.the income level for the same household at 80%of AMI is 568,160. By reducing the percentage income of the AMI, the fee calculus changes and the fee amount increases to accommodate the effort to focus on housing for lower income households. The County already extends efforts to create housing to serve households earning 80% of AMI. The fee calculation adjustment will allow these efforts to be more appropriately funded based upon lower household income and the increased need for housing in lower income classes. 9. Authority to enact this ordinance is found in Colorado Revised Statutes: Article 28 of Title 30, County Planning and Building Code-, Article 11 of Title 30 County Powers and Functions; and Article 30 of Title 29 Local Government Regulation of Land Use sections 104 and 104.5. 10. The Pitkin County Planning and Zoning Commission reviewed the proposed land use code amendments on January 20., 2020. In attendance for the meeting were, Jeffrey Woodruff, Chair, Chelsea Clark,Vice Chair,Zack Nlatthe-v,-s.Monty Thompson,and Cliff Weiss. The Commission's recommendation to the BOCC is unanimous. The Commission's Resolution reflects a recommendation to change the area from which residential sales are considered to include the entire county including the municipalities. This recommendation is based on the discussion that the fee calculation should include a sales analysis from the areas of the county where employee housing is being considered or being created. The Conunission recommended that the income level targeted by the housing fee should be changed to 80% of the area median income as reported by USHUD. This recommendation is based on a determination of where the need for housing is greatest in the community. Tile Commission also recommended to change the percentage of the fee required to be paid. The Commission discussed that the fee should be 100% of the calculated cost to create housing because of the ability of the current economy to absorb the fee and that this is a time to seriously plan and construct housing units and that the housing program should be fully supported. The Commission also considered that the fee should not increase too much at once and that the ability to further increase the percentage of mitigation exists into the future. As a result of their discussion. the Commission recommended that the required mitigation increase to a level from 100°o of the calculated fee to SOP o of the calculated fee and that if the required mitigation is less than IOVI'o that the variable rate of mitigation be retained for residential development. The Commission's recommendations were passed by a 5-0 vote. 11. The Board of County Commissioners finds that it is appropriate to review the calculated impact fee amounts approximately once a year and for staff to suggest changes to the Board periodically as appropriate. 121, The Board finds that all provisions of these amendments are self-executing and severable. The Board further finds that this legislation is a law of general applicability of Pitkin County and as such is applicable to all property and development in unincorporated Pitkin County. 13. The Board finds that the immediate enactment of this Ordinance is in the best interest of the public health, safety and welfare of the citizens and property owners of Pitkin County and therefore, this ordinance shall become effective immediately upon its adoption. This ordinance will not apply to complete applications for building permits or development approvals received on or before this effective date. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Pitkin County. Colorado that it hereby adopts an ordinance amending Section 8-30-10 and Section 8-30- 20(a)(1)and(b)(1)of the Pitkin County land use code, Implementing changes to the methodology for calculating the employee housing impact fee as attached hereto. The Chair or the Chair's designee is authorized to sign the Ordinance and upon the satisfaction of the County Attorney as to form, and execute any other associated documents necessary to complete this matter. INTRODUCED AND FIRST READ ON THE 28%_D DAY OF JULY 2021 AND SET FOR SECOND READING AND PUBLIC HEARING ON THE 11TH DAY OF AUGUST 2021. NOTICE OF PUBLIC HEARING AND TITLE AND SHORT SUMMARY OF THE RESOLUTION PUBLISHED IN THE ASPEN TIMES WEEKLY ON THE DAY OF . 2021. NOTICE OF PUBLIC HEARING AND THE FULL TEXT OF THE RESOLUTION POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE (NNxNxN-.i)itkincountN!.ct.)iii ) ON THE —DAY OF 2021. ADOPTED AFTER FINAL READING AND PUBLIC HEARING ON THE DAY OF 202L PUBLISHED BY TITLE AND SHORT SUMMARY, AFTER ADOPTION, IN THE ASPEN TIMES WEEKLY ON THE DAY OF , 202 1. POSTED BY TITLE AND SHORT SUMMARY ON THE OFFICIAL PITKIN COUNTY WEBSITE (R-Nk�Nv.t.)itkiticouiitv.colii ) ON THE —DAY OF 2021. THIS ORDINANCE IS EFFECTIVE UPON ADOPTION. ATTEST: BOARD OF COUNTY COMMISSIONERS By By: Jeanette Jones Steven F. Child, Chair Deputy County Clerk Date: APPROVED AS TO FORM AND APPROVED TO CONTENT: CONTENT: John Ely, County Attorney Cindy Houben, Director, Pitkin County Community Development