SUBJECT:
Title
Inclusionary Housing and Affordable Housing Impact Fee Presentation
Body
DEPARTMENT: Planning and Development
Department
PRESENTER(S): MJ Adams, AICP, Affordable Housing Manager
First Name Last Name, Title
TIME ESTIMATE: 45 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
POLICY ISSUES:
In June 2025, Town Council adopted the Town of Erie Affordable Housing Policy, which outlines a series of actions the Town intends to take to advance efforts to achieve the Town’s affordable housing goals. These goals include encouraging the development of a variety of housing types and affordability. This diversity of housing opportunities is intended to accommodate a broad range of households from families to individuals who live here and/or want to call Erie home. In turn, this greater diversity of households will make it easier for local businesses and organizations to hire employees who live in Erie-helping to reduce traffic associated with jobs in Erie, enabling more people who have grown up in Erie to afford to move back home, making it possible for more elders to afford to “age in community” and making it easier for grandparents who live elsewhere to move to Erie to be near their families. Additionally, this work supports the Town’s commitment through the Regional Housing Partnership to have 12% of the Town’s housing stock affordable by 2035.
STAFF RECOMMENDATION:
Recommendation
Presentation and Discussion only.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Lack of affordable housing has been on the minds of Erie leadership since 2005. When Erie adopted its Comprehensive Plan that year, the plan cited the lack of affordable housing and starter homes as a concern. The rising cost of housing became out of reach for many families, empty-nesters and retirees. The Plan recommended several actions including:
1) the development of an inclusionary housing ordinance; and
2) participating in regional partnerships.
In 2021, Erie adopted Resolution 21-140 to collaborate with the Boulder County Regional Housing Partnership to expand access to affordable housing and work towards a goal of 12% of the housing stock to be affordable by 2035.
In 2022, the Town started to seriously explore the creation of an inclusionary housing ordinance. Newly hired affordable housing staff successfully sought a grant to fund a Housing Needs Assessment and Affordable Housing Strategy. With the Housing Needs Assessment completed, and an Affordable Housing Policy adopted in June 2024, the next step is to develop an inclusionary housing ordinance. In addition to the inclusionary housing ordinance, which will only affect new residential development submittals, Town staff are evaluating an Affordable Housing Impact Fee that could be applied to entitled development that has not yet started construction and smaller developments that are not subject to the inclusionary housing ordinance. Town staff have shared the draft outline of the inclusionary housing ordinance with the development community and have received helpful and insightful feedback that will be considered as staff develop the final draft of the ordinance.
Key components of the draft inclusionary housing ordinance include:
• Applicable to all new development entitlements that have eight (8) or more units;
• Requires 15% of units to be affordable, with options to meet the requirement by building the units on-site, dedicating land, a fee-in-lieu payment, or a combination of the three;
• For the affordable ownership units, 75% of the units must be affordable to households at 120% of the Area Median Income (AMI) and 25% must be affordable to households at 100% AMI;
• For the affordable rental units, 75% of the units must be affordable to households at 80% AMI and 25% must be affordable to households at 60% AMI; and
• All affordable units built must hold a perpetual deed restriction.
The Affordable Housing Impact Fee under evaluation would be applied to housing units already entitled but not yet constructed and smaller residential developments (less than 8 units). This fee may be calculated on a square foot basis and revenues collected would be dedicated to support affordable housing incentives. Both the ordinance and the fee are currently under development and analysis by staff.
Discussion and consideration of the Inclusionary Housing Ordinance and Affordable Housing Impact Fee will lay the groundwork for ordinances that add to the Town of Erie’s Affordable Housing Toolbox in support of our affordable housing goals. Next steps in the process may include an additional study session with the Town Council and Planning Commission before ordinances are finalized.
COUNCIL PRIORITY(S) ADDRESSED: .
ü Engaged and Diverse Community
ü Prosperous Economy
ü Small Town Feel
ü Safe and Healthy Community
ü Fiscally Responsible
ATTACHMENT(S):
1. Town of Erie Affordable Housing Policy
2. Staff Presentation