Addressing Boulder Countys Affordable Housing Crisis Through - PowerPoint PPT Presentation

Addressing Boulder County’s Affordable Housing Crisis Through Collaboration and Vision Prepared for the Boulder County Consortium of Cities February 1, 2017 1

As a region, we’re falling far short of meeting the need for affordable housing. The Boulder County Regional Housing Partnership has created a plan to address this, and we ask for your support of this plan. The Boulder County Regional Affordable Housing Strategic Plan: - Priorities, Goals, Strategies - Timeline - Monitoring - Next Steps 2

Lessons Learned & Where We Are Heading Build on what has been working: • 10 Year Plan to Address Homelessness • Intergovernmental Agreement (IGA) • HOME Consortium • Flood Recovery Housing Working Group 3

Social Determinants of Health Pillars of Family Stability

Boulder County Regional Housing Partnership • Formed in 2016 as a cross-jurisdictional working group • Focus is to create a suite of regional strategies and goals to meet our region’s need for affordable, attainable, and workforce housing • Membership: Frank Alexander – Boulder County Housing & Human Services Kathy Fedler – Longmont Community Services Robin Bohannan – Boulder County Community Services Kurt Firnhaber – Boulder Division of Housing Jeremy Durham – Boulder Housing Partners Kristin Hyser – Boulder Community Investment Program Norrie Boyd – Boulder County Housing Authority Betsey Martens – Boulder Housing Partners Leslie Durgin – Boulder Chamber of Commerce Molly McElroy – Longmont Community Services Krystal Winship Erazo – Longmont Housing Authority Michael Reis – Longmont Housing Authority

Rising housing costs Frank Our Affordable Housing Crisis Rising housing costs Lost affordable housing supply Incomes not keeping pace Land costs increasing Additional transportation problems Increased public concern: affordable housing is our top priority

Average Home Sales Prices Dec. 2010 – Dec. 2016 $1,100,000 63 % Boulder (67%) $1,000,000 Boulder County $900,000 Housing Stock Valued at Mountains (65%) $800,000 Greater than $300,000 $700,000 76 % Louisville (65%) $600,000 Lafayette (49%) $500,000 Increase in Longmont Longmont (76%) Average Home Sale $400,000 Prices from 2010-2016 $300,000 $200,000 Source: Boulder Area Realtors Association 2010 2011 2012 2013 2014 2015 2016

Boulder County Median 2BR Monthly Rents Increase Since 2011 38% $2,000 Boulder (31%) Percent of Boulder County Louisville (36%) Population Renting County-wide (36%) $1,700 Lafayette (42%) 36% Longmont (33%) Increase in Boulder $1,400 County Median 2BR Rents from 2011-2016 $1,100 Source: Zillow Rent Index, 2 Bedroom 8

Cost-Burdened Renters in Boulder County 100% SEVERELY COST-BURDENED 90% 15,029 Renter Households (32% of renters ) (more than 50% of income toward rent) 80% 40,000+ people 70% 40,0 of income toward rent) 60% COST-BURDENED 10,004 Renter Households (22% of renters ) 50% (more than 30% of income toward rent) than 50% of income toward rent) 40% 30% 54% of Renters in Boulder 20% County are 10% Housing-Cost-Burdened 0% Boulder County Renters Source: HUD Comprehensive Housing Affordability Strategy (CHAS) data; U.S. Census data 2015

Deep Community Concerns Around Lack of Affordable Housing City of Longmont Citizen Survey Housing affordability getting worse City of Boulder Citizen Survey Affordable housing options are few Boulder Valley Comprehensive Plan Survey More affordable housing Affordable housing More Energy Efficiency is the top priority More open spaces

What’s Happening Today 11

Challenges to Affordable Housing Development • Competing land interests 53% Increase in • Funding issues Housing Costs • Planning Review and 36% Increase in Entitlements – long and Rents unpredictable processes • Construction costs • NIMBYism

Challenges to Affordable Housing Development Tackling the High Cost of Development in Boulder County What does it take to fill the financing gap? City fee waivers Debt No-cost/low-cost land Gap Grants Equity Soft debt

Overcoming Affordable Housing Development Challenges in Longmont • Changed Housing Goals and Policies • Set an Affordable Housing Goal • Align zoning with future land use plan • Review and change regulations, policies and processes that hinder affordable housing creation • Provide “by right” variances/modifications (increased heights/densities, mixed use and AH options) that can be approved administratively by staff • Fee waivers to help offset the cost of providing the affordable units

What The 2013 Flood Taught Us • Additional resources ($25 Million) can help create almost 1,000 affordable homes within 3 to 5 years • Public/private partnerships with larger financers are essential • Our regional focus and support of development in all communities was key to success • A pipeline of projects and land is critical to keeping units in production

City of Boulder’s Approach Middle Income Strategy $865,748 M $650,000 A $574,525 $450,500 $439,950 R $348,450 $331,750 $291,863 $284,500 $286,000 K E Detached All Attached Condo Townhome 3-pp 150% AMI 3-pp 80% AMI Afford Afford T Median Home ≤ 2,000 SQFT Homes All Homes Price (2015)

A 7% Goal

Tools to Support the Middle Class T 1. Land Use & Policy: Provide policy direction related to middle income housing and recommended land use changes to enable new middle income housing. O 2. Middle Income Community Benefit Zoning: Adopt O community benefit policies and outline incentive-based rezoning/community benefit zoning. L 3. Inclusionary Housing: Amend Inclusionary Housing (IH) regulations to include a middle income tier. S 4. Additional Community Benefit (Annexation): Adopt policies requiring more middle income community benefit.

Permanently-Affordable Housing Inventory in Boulder County (2017) – Units by Region 2,395 (553 DR) 50 3,462 (52 DR) 603 (272 DR) Regions: Central Southeast Mountains Boulder Northeast Lafayette Nederland Gunbarrel Longmont Louisville Lyons Niwot

Recent Affordable Housing Development Red Oak Park, Boulder Spring Creek, 59 units Longmont 60 units Aspinwall, Lafayette 72 new & 95 refurbished units High Mar, Boulder Lee Hill, Boulder 59 units 31 units Hearthstone, Longmont Josephine Commons, Lafayette 50 units 74 units

Current & Proposed Affordable Housing Development Kestrel, Louisville 200 units, 2017 Fall River, Longmont, 60 units, 2019 Palo Park, Boulder, 44 units, 2018 Twin Lakes, Gunbarrel 120-240 units, 2020(?) 2 nd Street, Nederland 21 30 units, 2019

The Boulder County A Regional Affordable Housing Strategic Plan Regional Housing Partnership

Priorities In order to develop and preserve diverse affordable housing options, local jurisdictions will work both individually and collaboratively to: 1. Establish regional housing goals 2. Bolster financial resources 3. Secure land and redevelopment opportunities for future housing 4. Preserve affordability of existing housing 5. Align regulatory processes with housing goals

Local and Regional Housing Goals • 30% of units should be homeownership; 70% should be rental • 300 units per year new construction; the rest would be acquisition Proposed Tenure and Method – 10% Goal Homes New Acquisition Total Construction For Rent 3,150 3,150 6,300 For 1,350 1,350 2,700 Ownership Total 4,500 4,500 9,000

Permanently-Affordable Housing Inventory in Boulder County (2035) – Units by Region 4,900 2,500 6,000 3,100 Regions: Southeast Central Mountains Boulder Lafayette Northeast Nederland Louisville Gunbarrel Longmont Lyons Niwot Superior

Bolster Financial Resources Goal of homes Existing Local New Local New Local built or Resources to Funding sources Funding sources acquired/year Invest Annually needed at needed at investment of investment of $50,000/home $85,000/home 600 $15,000,000 $15,000,000 $36,000,000 (Recommended) 1,000 $15,000,000 $35,000,000 $70,000,000 (Most bold)

Bolster Financial Resources • Establish county-wide affordable housing trust fund with variety of potential funding sources: • one or more ballot initiatives first three years of plan • Portion of sales and property taxes in support of goals • Extend/increase Worthy Cause, dedicate some to affordable housing • Review RETT, Occupation, Hotel Tax, RETA • Implement local commercial linkage fees

Align Regulatory Processes with Housing Goals • Adopt staff level approvals, fee reductions and waivers, density increases, and design flexibility for new developments with affordable housing • Require annexations to include affordable housing • Codify local entitlement processes to provide predictable non-discretionary development rights for affordable housing development projects • Expedite entitlements for affordable housing units • Adopt local Affordable Housing Benefits Ordinances to enhance the financial feasibility for developing diverse housing options • Evaluate and modify local land use regulations to eliminate barriers to and facilitate the creation and preservation of affordable housing • Adopt Inclusionary Housing in each jurisdiction