Fast Tracking Affordable Housing: Varied Approaches Across Colorado

October 3, 2024 APA Colorado

Robyn DiFalco, DOLA, Community Dev Office

Josh Olhava, AICP, PCCP, Ayres Associates

TJ Dlubac, AICP, Community Planning Strategies

MJ Adams, Town of Erie

Ashley Chambers, City of Grand Junction

Niki Galehouse, City of Grand Junction

Today’s Agenda

• Overview of DOLA’s process to develop the guidance materials
• Overview of Fast Track guidance, applicability and analysis
• Strategies for implementing Fast Track
• Community examples: Town of Erie & City of Grand Junction
• Q & A

Stakeholder Engagement Process & Timeline

Partner Agencies and Stakeholders

Key Partners:

• CML
• CCI
• CCAT
• CHFA

• OEDIT
• CDOT
• Gov's Office
• APA Colorado

• Housing Colorado
• Maiker Housing Partners
• Gary Community Ventures
• Urban Land Institute CO

• CO Assn of Home Builders
• HBA Metro Denver
• HBA Colorado Springs
• Urban Land Conservancy

Local Government Representation:

• More than 65 planners from every region of the state.

Tribal Partners:

• 6 representatives from tribal governments

Developers (for profit & nonprofit):

• More than 30 developers with affordable housing expertise, including housing authorities.

Prop 123. Expedited Review Overview

Online DOLA Guidance Materials

• Expedited Review Process = in place 2027
• Second Commitment Cycle for Prop 123 = due Nov. 01, 2026
• Local Planning Capacity Grant Program
• Encourage Early and Continuous Improvement Efforts
• Code Changes
• Procedure Changes
• Template Resolution – downloadable and customizable

Which Housing Projects Require Expedited Review?

**For projects that have 50% or more units defined as “Affordable”

Local policies may be more inclusive, but not more narrow than what the law requires

Note: These guidance materials are not related to:

• Compliance criteria for other Prop. 123 requirements
• Local government baseline or commitments
• Prop. 123 funding program requirements

Local Definition of Affordable Housing can be different from local government commitment

Prop. 123 Expedited Review Timeframe

• 90-calendar day time frame = complete application submittal to a final decision
• Separate 90-calendar day time frame per application

Local Control!

Complete application = local government completeness process

• *Submittal does not always mean complete
• Final decision = approval or denial - does not include:
• Recommendation
• Post approval steps

Prop. 123 - Common Application Types

Required

• Admin. Modification
• Alternative Compliance
• Building Permit
• Conditional Use
• Development Plan
• Site Plan
• Special Use / Use by Special Review
• Variance or Waiver

Possibly Required

• Accessory Use Permit
• Civil / Construction Drawings
• Master Plan
• PUD and PUD Amendment

Not Required

• Annexation
• Appeals
• Comprehensive Plan Amendment
• Concept / Pre-App.
• Rezoning
• Subdivision/Plat/ Division of Land
• Subdivision Exemption
• Zoning Establishment

Expedited Review - Extensions (developer)

Optional 90-calendar day extension.

• A one-time developer request per application.
• Added to the overall 90-calendar day time frame.
• Time to address comments from an agencies with approval authority.
• **Must be captured in your code or procedure documentation.

Expedited Review - Extensions (local govt.)

Local governments = optional 30-calendar day extension(s).

• Additional time for both parties to address substantial comments
• Best Practice: unique circumstances and/or delays beyond local control

Strategies Guidance Structure

Strategy Development:

• From stakeholder and partner agency input, survey results, and best practices.
• Aligned common process and review challenges with potential solutions.
• Focused under three topic areas.

Strategies - Topic #1: Quality of Submission Materials

Challenge

• Applications are incomplete and are not accepted as complete, delaying the starting point of the review timeline.
• Applications do not include accurate or adequate information to allow decision makers to make decisions on an application.
• Staff members responsible for reviewing or accepting applications as complete are not experienced in the type of application(s) being requested or applied for.
• The required information to be submitted is either ambiguous or unnecessary.

Strategies - Topic #2: Review Timelines

Challenge

• External referral agencies do not comply with required review timelines.
• Coordination with various internal Departments extends the review period.
• The lack of experience in current staff is extending review timelines and generating irrelevant review comments.
• Applications require multiple reviews before they are approved, extending the overall process.
• A local government’s public meeting schedule extends the overall approval process.
• There isn’t political or staff support for affordable housing projects.
• Agency review comments are not clear enough to allow developers to adequately address within the re-submitted materials.

Strategies - Topic #3: Staff Capacity

Challenge

• The number of land use applications have increased beyond what the current staff can review within the required period of time.
• The department is understaffed either because it’s a small department with limited funding or due to staff turnover and vacancies which have impacted staff’s ability to review applications in a timely fashion.
• The current staff is lacking in the experience with the types of applications being submitted.

Strategies Overview

1. Affordable Housing Plan
2. Affordable Housing Expedited Review
3. Application Checklists & Guides
4. Assessment or Update
5. Contracted Planning Support
6. Dedicated Staff Planner/Liaison
7. Development Review Committee
8. Intergovernmental Agreement

9. Level of Approval
10. Post-Review Meeting
11. Pre-Application Meeting
12. Prioritize Affordable Housing Projects
13. Process Improvement
14. Public Meeting Schedule
15. Training:

a: Reviewer Training

b: Developer Training

General strategies to consider to work towards the 90-day time frame…

Local Planning Capacity Grant Program

The program supports local governments’ capacity to address affordable housing, especially:

• expedited review of affordable housing
• Can also support planning capacity to develop affordable housing, implement strategies/incentives, achieve Prop 123 commitments, and affordable housing goals

“Fast Track” + capacity for planning efforts

Fast Track Required by 2027

Local Planning Capacity Grant Program Recap

• Awarded $4.4 M in March & July 2024
• 4.8 M available through June 2025
• September 2024: $3.1 M requested
• Next Funding Cycle is February 2025

Apply: Schedule a Pre-Application Meeting

dlg.colorado.gov/local-planning-capacity-grant-program

Town of Erie� “Fast Track” Permitting��MJ Adams, AICP�Affordable Housing Manager��APA Colorado Conference�October 3, 2024

Erie, Colorado at a Glance

Town of Erie Housing Stock as of Dec. 31, 2023

Approximately 600 building permits issued annually for new units

Current Affordable housing:

• 167 units Proposition 123 baseline 1.3%
• Proposition 123 goal: 5 units/year

Why Fast Track?

• Recognition that long timeline for permitting process increased cost and risk to developer.
• It would be required for Proposition 123.
• Erie had its first public/private partnership and was interested in using an expedited permitting process to advance the development.
• Town leadership very supportive of making change to advance affordable housing efforts.

What is “fast track” permitting for Erie?

• Developments with more than 12% affordable units eligible for fast track
• Fast track follows the minor subdivision approval process:
• Administrative review
• No public hearings required; neighborhood meetings discretionary
• Affordable developments eligible for:
• Up to 25% density bonus
• No minimum lot size, Up to 25% reduction in set-backs
• Additional flexibility under Alternative Equivalent Compliance

What is affordable and why 12%

• Erie defines affordable using Boulder County AMI
• Homeownership less than 120% AMI
• Rental less than 80% AMI
• Erie – Boulder County Regional Housing Partnership commitment to have 12% of housing stock affordable by 2035

Fast Track Flowchart

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Cheesman Residences – 35 homes

• 18 affordable @ <90% AMI
• 17 affordable at <110% AMI

First Fast Track Development Timeline

• May 2023 – Pre-application meetings start
• July 2023 – Erie adopts fast track permitting process
• November 2023 -First submittal
• December 2023 -Neighborhood meeting
• March 2024 – Pre-Development Agreement Approved
• April 2024 – Building Permit Applications submitted
• June 2024 – Final Plat and DA Approval
• June 2024 – Building Permits issued
• July 2024 – Horizontal construction starts

Lessons Learned�

• Pre-Application review must be ROBUST!
• Neighborhood meeting in advance of full review
• Completeness/quality of developer submittal is critical
• Strong teamwork among internal development review staff (planning, engineering, parks, building) critical –weekly meeting
• Project manager – manages and tracks communications with developer and her team
• Add dry utilities into review process early
• Understand workings with external review organizations

Next steps�

• Update User’s Guides for Development Review
• Recalibrate Erie’s fast track process
• To align with Prop 123 requirements
• To adjust for proposed Inclusionary Housing Ordinance changes
• Regional Work Group on Fast Track Permitting

�QUESTIONS?

MJ Adams, Affordable Housing Manager

mjadams@erieco.gov (303)746-1979

Expedited Review Process

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How have needs changed?

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2021 Top Housing Needs

• Additional affordable rentals
• Starter homes and family homes priced near or below $250000
• Housing resources for special needs populations
• Diverse housing options to accommodate evolving needs

2024 Update

• Gap is lower but need persists (acute rental need is <30% AMI)
• Shortage impacting higher income households than in 2021 (exacerbated by interest rates)
• Need persists; see UHNA for in depth analysis of needs among unhoused residents.
• Need persists to accommodate demographic shifts and changes in housing preferences.

Housing Strategy

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Comprehensive Plan Principle 5: Strong Neighborhoods and Housing Choices

Grand Junction Housing Strategies

1. Participate in regional collaboration regarding housing/homelessness needs and services
2. Adopt a local affordable housing goal
3. Implement land use code changes that facilitate attainable housing development and diversity
4. Encourage development of Accessory Dwelling Units (ADUs)
5. Formalize existing incentives and consider additional for affordable housing development

• Consider implementation of an inclusionary housing/linkage fee ordinance
• Explore designation of an Urban Renewal Area (URA) and utilization of Tax Increment Financing for affordable housing
• Consider adoption of a voluntary rental registry program in conjunction with landlord incentives
• Provide community engagement and education opportunities to address housing challenges and promote community participation

• Allocate City-owned land (and/or acquire vacant or underutilized properties) for affordable and mixed-income housing
• Create a dedicated revenue source to address housing challenges.
• Provide financial support to existing housing and homelessness services and promote resident access to services
• Support acquisition/rehabilitation that creates or preserves affordable housing

Strategy 5: Formalize Existing Incentives and Consider Additional Incentives for Affordable Housing Development

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Development incentives to encourage developers/builders to build affordable housing can take many forms:

• Permit or process-oriented incentives (e.g., fast track development approval; city-assigned, dedicated planning advocate to help move the development through the approval process; reduction in public meeting requirements;
• Regulatory incentives such as density or height bonuses (allows for more units to be built than allowed by right by zoning);
• Fee waivers/rebates (Colorado state law allows impact fees to be waived for affordable housing;) and
• Tax incentives for affordable development (or land donation to affordable development.

Development incentives are tied to a contractual commitment to produce an agreed-upon share of affordable units (can be rental or owner). Most policies mandate set asides of between 10 and 30 percent of units affordable to 50% to 80% of area median income (AMI), depending on the market, and set affordability periods that range from 15 to 99 years. The average length of time for deed restrictions is 30 years.

Expedited Review

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Resolution 97-22

• ANY project that commits to the construction of at least 10 percent of the units as Affordable, as follows:
• Expedited Review For Sale Units. Any project or subdivision including at least 10% of the units as 100% AMI Affordable Units
• Expedited Review for Rent Units. Any project including at least 10% of the units as 60% AMI Affordable Units
• Advanced in current workflow
• Initial round of review comments on behalf of the City will be issued within 30 days of a complete submittal
• Subsequent rounds of review will be issued within 15 days of a resubmittal

Expedited Review Implementation

• Identification of qualified projects
• Prioritization within workflow

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Challenges

• Tracking
• Applicant Response Times
• Review Agency Coordination
• Project Complexities

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What’s Next?

DOLA Land Planning Grant

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Questions & Contact Info � Robyn DiFalco, DOLA� Josh Olhava, Ayres Associates� TJ Dlubac, Community Planning Strategies� MJ Adams, Town of Erie� Ashley Chambers, City of Grand Junction� Niki Galehouse, City of Grand Junction� �DOLA’s Fast Track Guidance Materials: https://cdola.colorado.gov/prop123fasttrack