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HomeMy WebLinkAboutagenda.council.worksession.20230508AGENDA CITY COUNCIL WORK SESSION May 8, 2023 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Climate Action Plan, Accelerated Action Options I.B 2022 - 2026 Affordable Housing Strategic Plan Update Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/87427860302? pwd=bVRaL01zYXViNDlUOWIzWlowb2pBdz09 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 874 2786 0302 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kciTomkmF Options_for_Accelerating_the_Implementation_of_the_ASAP_EHS_May_8_FINAL.docx Attachment A - Aspen Sustainability Action Plan (2023).pdf AH_Strategic_Update _5.8.2023.docx COA-Housing-StrategicPlan-May2022-Spread-LowRes.pdf 1 1 MEMORANDUM TO:Mayor and City Council FROM:Tessa Schreiner, Sustainability Manager Tim Karfs, Sustainability Programs Administrator Ainsley Brosnan-Smith, Waste Diversion and Recycling Program Administrator Clare McLaughlin, Sustainability Programs Administrator THROUGH:CJ Oliver, Director of Environmental Health and Sustainability Phillip Supino, Director of Community Development MEMO DATE:April 28, 2023 MEETING DATE:May 8, 2023 RE:Options for Accelerating the Implementation of the Aspen Sustainability Action Plan (ASAP) REQUEST OF COUNCIL: The purpose of this memo is to provide Council with information on options to accelerate the implementation of the Aspen Sustainability Action Plan (Attachment A) as directed by Council in the budget work session held on October 4, 2022. This update is intended to share analysis conducted thus far on accelerated options, identify key areas of importance, and provide useful background information as Council goes into goal setting in mid-May. SUMMARY AND BACKGROUND: Climate impacts: Earth’s global average temperature has statistically been trending upwards since the start of the industrial revolution. The science behind climate change is well-established: the accumulation of greenhouse gases (GHGs) in the earth's atmosphere are linked to increasing global average temperature. According to the World Meteorological Association, the global average surface temperature in 2022 was 1.15°C above pre- industrial levels. Human activities have contributed to the rise of GHGs in the earth's atmosphere (primarily due to the burning of fossil fuels)which are leading to increased temperatures. The Intergovernmental Panel on Climate Change (IPCC) recommends limiting global temperature rise to 1.5°C and to not exceed 2°C to offset the worst impacts of climate change. Every fraction of warming over 1.5°C will have significant consequences, and the sixth and final assessment report cycle from the IPCC, released March 20, 2023, emphasized that the window to limit global temperature increase to the 1.5°C threshold is closing fast. 2 2 Aspen is particularly vulnerable to the impacts of climate change: the increased frequency and magnitude of extreme weather events including from drought, wildfire, landslide, and flood have already caused harm to local environment, property and community health and safety. In addition, earlier loss of snow (and/or later arriving snow) mean a shorter season for skiing; changes in the timing of peak runoff from streams and rivers, and the potential for a longer fire season. A key indicator of local climate change is represented in the number of consecutive frost-free days. Since 1940, the number of frost-free days has increased by forty-six days, and by thirty days since 1980 (AGCI).This is the equivalent of losing a month of winter in less than a lifetime. Aspen’s local emissions and growing population of full-time and part-time residents, visitors, and commuters are contributing to this global climate emergency. Greenhouse-gas inventories: Every three years, the city performs a GHG inventory of both municipal and community- wide activities. GHG inventories are used by municipalities, organizations, private businesses, and countries across the world to track and measure the emissions associated with particular actions or entire communities. They are used to inform climate action planning efforts and to provide an estimate of a community’s carbon footprint for a given time. Aspen adheres to the Global Protocol for Community-Scale Greenhouse Gas Emissions Inventories (GPC) which is a globally accepted process for cities to measure and track GHG emissions. Aspen’s emissions are historically divided into the following key sectors: commercial buildings, residential buildings, on-road transportation, airport operations, and waste processing. Aspen’s most recent GHG inventory provides two- years of data from both 2019 and 2020: Aspen's science-based targets: Since the formation of the Canary Initiative in 2005 (now the Climate Action Office), successive City Councils have demonstrated leadership in driving ambitious and effective action to both cut emissions and respond to climate change warnings. In January 2022, Council passed Resolution #002-Series2022 to adopt science-based targets (SBTs) as Aspen’s new climate goals. SBTs are designed using the most contemporary climate data to build attainable, responsible, and objective goals which represent Aspen’s fair-share of global emissions reduction needed to hold global temperature increases to 1.5°C. ICLEI-Local Governments for Sustainability used Aspen’s 2017 community-wide GHG inventory as a baseline to calculate Aspen’s SBTs as follows: Figure 1: Aspen's 2020 Emission by Sector 3 3 63% reduction of 2017 emissions by 2030, and 100% reduction of emissions (net zero) by 2050. In addition to GHG reduction goals, Council also adopted the following waste-specific goals to reduce emissions as an output of the disposal of trash: Reduce organics in the landfill by 25% by 2025 and 100% by 2050, and Achieve 70% diversion of total waste by 2050. Business-as-usual is no longer an option: Despite some well-documented reductions in GHG emissions since the City started efforts to address them, significant work is still required if Aspen is to reduce its emissions on a timeline to meet its climate goals.Business-as-usual calculations assume that nothing will be done to mitigate climate change in coming years. As demonstrated in the graph below, to continue down the path of business-as-usual is not enough, and with factors including population growth in our region, the costs associated with future proofing our community for climate change now will only get more expensive the longer the city waits. The social costs of carbon which include the extra costs not automatically reflected in market prices such as a shorter ski season, loss of productivity caused by extreme climate events, canyon closures due to mudslides, and decline in human health and labor productivity grow due to delay on climate action. Previous Council Action: For decades, the City of Aspen and the community have prioritized sustainability and have acted to protect the environment locally and globally. In 1989, the City of Aspen adopted the Ecological Bill of Rights, stating the overall environmental philosophy for the Aspen area. In 1994, the Community Office for Resource Efficiency (CORE) was created Figure 2: Aspen's Business as Usual Emissions Projections 4 4 to help Roaring Fork Valley residents save energy and cut carbon emissions to mitigate climate change. The establishment of Renewable Energy Mitigation Program (REMP) in 1999 marked the City’s adoption of a visionary initiative to address climate change, incentivize energy efficiency, and create a fee structure to inject funds into the community for energy efficiency upgrades. In 2015, Aspen Electric became the third city in the United States to transition to 100% renewable energy supply. The City of Aspen has led the way for many other cities and communities to take progressive action on climate change. In recent years, Council has continued to display strong sustainability leadership with the adoption of SBTs and continued resolve to address emissions across key sectors in the community: Aspen Sustainability Action Plan (ASAP) (2023): Council approved the ASAP as the City’s new roadmap of objectives and action items to reach our climate goals. Organics Waste Diversion and Compost Collection (2023): Council updated the Municipal Code to prohibit organic material, such as food, from being thrown away as landfill trash. Building Code Adoption (2023): Council adopted updated building codes, which align with science-based targets, energy efficiency, electrification, and wildfire resilience. Council’s Carbon Goal (2021-2023): Council adopted a carbon reduction goal via Resolution #76_Series 2021, which directs staff to reduce Aspen’s greenhouse gas emissions by taking meaningful action and providing leadership in the following categories: low and zero emissions transportation, waste reduction, energy reduction in buildings, and advocating for state and federal regulations that support GHG emissions reductions. Building IQ (2022): Council adopted the Building IQ ordinance to address emissions from existing buildings in Aspen. Building IQ is a phased, two-part program: benchmarking and developing building performance standards. GoEV City (2022): Aspen signed on to become the eleventh GoEV City in Colorado and to transition the municipal fleet to 100% electric and zero emission vehicles by 2050. Fleet Zero Emissions Roadmap (FZER) (2022): Council approved the FZER, which supports department decisions to purchase electric and zero emission options on a timeline specified by Aspen’s climate goals while also ensuring that city operational needs are met. Race to Zero (2021): Council signed on to Race to Zero, committing Aspen to work towards a zero carbon, resilient future. October 4, 2022 Budget Work Session During the budget work session on October 4, Mayor Torre and City Council offered additional support for projects that would move the needle on Aspen’s GHG emissions. Reiterating the fact that climate change is an existential threat to the community, Council requested that the Climate Action Office consider what the impacts of additional funding would have on project timelines and the underlying goal to reach net-zero emissions by 2050. As the Climate Action Office was already in the process of updating the Climate 5 5 Action Plan now called Aspen Sustainability Action Plan (ASAP), the request to investigate high impact projects was intended to complement those actions. Following the direction received at the October 4, 2022 work session, the City Manager directed staff to come back to Council with additional information on options to accelerate the ASAP ahead of Council’s May 16th goal setting session. Should Council adopt a climate goal in this upcoming round of goal setting, staff is prepared to assist in creating language for that goal. Staff would then work with the City Mangers Office and Finance Department to appropriate budget in response to the renewed goal. DISCUSSION As an immediate next step of the October 4 budget work session, staff brought the ASAP to Council for approval on February 21, 2023, and received direction from Council to come back with a presentation on accelerated options for delivering elements of the ASAP for maximum impact in the next few years. The following discussion touches on key findings and recommendations from the ASAP and then covers considerations for accelerated options. Aspen Sustainability Action Plan: The ASAP (Attachment A) is the guiding document for implementing programs and objectives to reduce community GHG emissions at a pace necessary to reach 2030 and 2050 targets, and to do our part to reduce global emissions and model community-scale climate action for others. The plan is centered in equity and involves under-resourced and underserved members of the community in the planning process and vision for a net-zero carbon economy. The ASAP recommends 58 actions across five sectors reflected in the GHG inventories: energy, buildings, transportation, waste, and airport/aviation. The action items are prioritized based on level of impact and most items should be able to be completed within the next five to seven years with continued buy-in from the community. Staff will update the ASAP each year to ensure the document continues to be relevant and up to date. Action items that cannot feasibly be accomplished in the next five to seven years will be included in future iterations of the plan as new technology and opportunities develop. Full descriptions of the five sectors and their corresponding recommended action items can be found in their respective sections of the plan. To accomplish the plan will require the city to step-up efforts to get each department and member of the community working towards the same goal. Considerations for Accelerated Options: In the process of developing a list of options to accelerate the ASAP to present to Council, staff reviewed areas of the ASAP that could act as a catalyst or create a snowball effect for additional emissions reductions in each work area. Process and Methodology: This process began with staff recognizing that doing this type of analysis for the entire ASAP was not the most efficient course of action. Instead, staff prioritized nine high 6 6 impact projects that, based on GHG data, have the highest potential to reduce emissions. These high impact projects were selected based on criteria that included: Areas where the city has more span of control Where existing technology could enable staff to perform detailed analysis Where staff anticipated strong impact potential when compared against the amount of effort and cost to get the project underway, and Where there was underlying political and community support to proceed with the project analysis. Staff asked climate consultants to develop a model that shows the individual and cumulative impacts of the high impact projects when compared to 2017 GHG emissions baseline. The model relies on numerous assumptions, most important of which, is that the projects will stimulate additional projects that when calculated all together will secure 100% emissions reductions goals i.e., a comprehensive audit of city-owned buildings will help staff perform additional work that leads to the total reduction of emissions from city- owned buildings. Due to the difficult nature of distilling the outcomes of some individual projects, the impacts of some intertwined projects were grouped together. Impact: The model suggests that all together, the selected work areas (once completed) will have a 63% reduction in total emissions by 2050, and that 24% of this total is directly tied to the high impact projects. This has the effect of removing around 56,622 metric tons of carbon dioxide equivalent or over 7,000 homes energy-use for one year by 2050. The model demonstrates that some of the largest wins can be secured with continued investment and attention given to energy efficiency and building performance standards and construction and demolition waste reductions projects. After analyzing the GHG impact model, staff developed a list of five immediate items, listed below, that will play an important and foundational role in setting accelerated action in motion. Staff chose the five items through careful consideration of tangible value, sequencing of actions (what things need to happen first, or what information needs to be gathered before further action can be taken), staff capacity, and feasible timeline. In addition to GHG impact modeling, the consultants then provided high-level estimated cost ranges to implement the five items. Project Estimated Price Range Scope Building performance standards technical assistance $60k - $120k Upstart fee, and ongoing subscription BPS software development and implementation. $150k - $200k Technical support for BPS rulemaking, including and not limited to penalties, 7 7 policies for unique building cases, targets, and editing models as needed. Energy audit of all city owned buildings $0.10 - $0.60/ft² $66k - $396k Explores energy savings and electrification opportunities. Supports long-term planning for upgrades. Fleet and facilities analysis $10k - $125k Includes energy audit of city owned buildings and parking locations to determine capacity for charging. Full fleet analysis, recommendations for suitable EV replacements (at time of replacement) and charging infrastructure analysis. Plastic/ construction and demolition waste diversion $10k worth of staff time estimated Plastic waste Assessing community opinion and desire Meet with external stakeholders in plastics industry. Create policies for code updates in 2024. $50k worth of staff time estimated Construction and demolition waste Research into best practices/end markets for materials. Work with Community Development and Engineering department on code changes. Integrating compliance duties into a FTE position to ensure ongoing compliance. Strategic financial plan for ASAP $130k-160k Itemized costs to implement ASAP action items (p12-22). Includes financial/financing model recommendations, grant models, timeline, and prioritization (impacts vs costs). These five items are intended to provide Council with information on where staff believes the City could begin to accelerate the highest impact areas of the Aspen Sustainability Action Plan. A strategic financial plan for the ASAP to account for the total costs of implementing project work areas and objectives is seen as a foundational item and tied to the future success of the ASAP. Staff is not requesting direction from Council at this time. CONCLUSION To address the global climate change emergency, cities, organizations, and communities need to double-down on their efforts to reduce GHG emissions. Aspen has set a strong precedent for its ongoing attention to its carbon footprint and continued leadership is 8 8 necessary to achieve reductions on a timeline to meet climate milestones. As average global surface temperatures continue to increase, our ability to limit warming to 1.5°C is becoming increasingly difficult. The choices and actions implemented this decade will have irreversible consequences for future generations. Based on direction received from City Council on the October 4, 2022 budget work session and guidance from the City Manager, staff has provided additional analysis and information for Council consideration during this year’s goal setting process. The prioritized options to accelerate implementation of the ASAP will equip staff and the city with the tools and knowledge to expedite work areas and make meaningful adjustments to municipal and community-wide emissions. Should Council vote to keep the existing carbon goal or create an updated one in the goal setting process, staff are prepared to assist in creating language for that goal. Staff would then work with the City Mangers Office and Finance Department to formalize budget for the goal. FINANCIAL IMPACTS: The ASAP and many of its recommended action items, including the additional request in support of accelerated options, will require additional funding sources outside of current budget allocations. These funds could come from a variety of places such as grants (e.g., Inflation Reduction Act and the Infrastructure Investment and Jobs Act), Short Term Rental (STR) tax revenue, or the general fund supplementary budget requests. Proposed STR funding allocation will be presented to Council during the May 8, 2023 meeting. Finally, staff has identified that creating a Financial Strategic Plan for the ASAP will be an important step in understanding wholistic costs for reaching the City’s climate goals. ENVIRONMENTAL IMPACTS: The options for accelerating implementation of the ASAP represent a significant opportunity to draw down Aspen’s municipal and community-wide emissions and demonstrate sustainability leadership. The prioritized action items have been selected for their ability to set in motion emissions reductions at scale in the key sectors of energy, buildings, transportation, waste, and airport/aviation operations. Not achieving local and global climate goals will have disastrous impacts locally. Hotter temperatures, more building “cooling degree days”, deteriorating air quality, changes in precipitation and snowpack, water shortages, and the risk of wildfire, drought, and landslides are all risks that will make it increasingly difficult to conduct business-as-usual. RECOMMENDATIONS: Staff await the City Council goal setting outcome before starting to further develop options for accelerating the implementation of the ASAP. ATTACHMENTS: Attachment A – Aspen Sustainability Action Plan CITY MANAGER COMMENTS: 9 9 10 2023 ASPEN SUSTAINABILITY ACTION PLAN 11 2023 // ASPEN SUSTAINABILITY ACTION PLAN 2 ASPEN SUSTAINABILITY ACTION PLAN The City of Aspen developed the Aspen Sustainability Action Plan as a roadmap of the goals, objectives, and action items for us to accomplish our science- based targets of reducing greenhouse gas emissions (GHG) by 63.4% by 2030 and 100% by 2050. This plan looks at what the City of Aspen can achieve or plan for in the next five to seven years. This document will be updated regularly as we accomplish items and adapt to changing science, climatological conditions, and national dynamics. Reduce greenhouse gas emissions 63.4% by 2030 and 100% by 2050. THE GOALS 12 3 TABLE OF CONTENTS GUIDING PRINCIPLES ........................................... 4 KEY TAKEAWAYS ................................................... 5 VISION FOR A SUSTAINABLE FUTURE ................ 7 ENERGY SUPPLY......................................... 12 BUILDINGS ................................................... 14 VEHICLES & TRANSPORTATION ................ 17 WASTE .......................................................... 19 AVIATION & AIRPORT .................................. 21 CONCLUSION ......................................................... 23 APPENDIX A ........................................................... 24 ACKNOWLEDGMENTS .......................................... 26 13 4 Plan implementation and resource allocation will be equitable, focused on community members most in need of support to achieve community climate goals. EQUITABLE We will adapt and update this plan as we receive new information, resources, and community direction. ADAPTABLE The goals, objectives, and action items in this plan must be accomplished with intentional internal and external collaboration. COLLABORATIVE The contents of this plan are within the City’s scope of control and direction, where we can meaningfully make progress. SCOPE Nearly all the objectives and actions in this plan have co- benefits such as fostering economic sustainability, improving local environmental quality, enhancing public health and safety, and building resilience. CO-BENEFITS GUIDING PRINCIPLES These are values on which the City of Aspen developed and will implement this plan. 14 2023 // ASPEN SUSTAINABILITY ACTION PLAN 5 KEY TAKEAWAYS We will measure the success of this plan in two ways: We know the “what” – we need the community’s guidance on the “how”. Reaching the City’s climate goals requires decarbonizing the Roaring Fork Valley’s electrical grid, maximizing efficiency, switching from non-renewable fuels to clean electricity and other sources, and eliminating the landfill disposal of recyclable and reusable materials. While these actions are clear, we need the community and region’s input on how we build programs, offer support, provide resources, and change policies. Getting the community’s input and feedback will be a vital component of implementing this plan. Regional collaboration is key. Greenhouse gas emissions know no boundaries. The Roaring Fork Valley has both unique challenges and opportunities we’ll need to tackle as a region to be successful. We need to work fast and smart. We are facing a climate crisis, and we need to work quickly to mitigate the worst effects of climate change. Simultaneously, we need to ensure that our progress is driven thoughtfully, intelligently and leaving no one behind. Incorporate adaptation and resilience. As the City adjusts to new climate realities facing the Roaring Fork Valley, we look to solutions that will strengthen our local and regional environment and prepare us to bounce forward when faced with climate change impacts. By seeing year over year reductions in our emissions inventories. By accomplishing action items, which will be reported in annual sustainability reports. 15 2023 // ASPEN SUSTAINABILITY ACTION PLAN 6 GROUND-SETTING Aspen has been committed to protecting the health, prosperity, and safety of its residents and environment through sustainability efforts for more than 30 years. More info: Appendix (pg. 25) Aspen’s 2017 inventory showed that the Aspen community reduced emissions by 21% compared to the 2004 baseline. Since then, we have updated our methodologies and emissions inventory boundary to better reflect our emissions profile. The Aspen Sustainability Action Plan is the blueprint for what’s next. We need your help to implement it. 16 2023 // ASPEN SUSTAINABILITY ACTION PLAN 7 VISION FOR A SUSTAINABLE FUTURE The picture of what a bright climate future looks like for the community of Aspen if we work together includes: The City featuring multimodal corridors that are safe for pedestrians, cyclists, and motorists. Aspen investing in the future of its environment and ecosystems with water, snowpack, and the risk of wildfire being ever-present issues that we’ll continue to adapt to. Buildings receiving energy from 100% renewable sources, which are produced regionally. Electric vehicle charging stations around Aspen providing ample and convenient opportunities to charge zero-emission vehicles. Local flora and fauna thriving throughout the Valley. Local businesses are thriving. Visitors and community members alike sharing the same sustainability ethos. Newly constructed buildings containing recycled materials that have been sourced and processed locally. Building occupants benefiting from highly efficient, comfortable structures that provide a great place to work, live, and play. Buildings having been designed with indoor waste storage to keep people and local wildlife safe. Single-use materials are eliminated and all materials are diverted from the landfill to be either recycled, reused, or repurposed. All community members and visitors having access to efficient, comfortable, and zero- emissions public transit to get them anywhere in the Valley. 17 2023 // ASPEN SUSTAINABILITY ACTION PLAN 8 We’re facing a climate emergency and need to act, but governments need to work quickly to mitigate climate change. Business-as-usual operations are not responsive to the emergency. WHY A SUSTAINABILITY ACTION PLAN? According to the 2022 report by the Intergovernmental Panel on Climate Change (IPCC), the enormity of climate change impacts is larger than previously estimated and we need to act quickly to avoid the catastrophic impacts.1 Since the industrial revolution, GHGs attributed to human activities have been responsible for approximately 33.98°F of warming, and Aspen’s emissions are contributing to this climate reality. Climate change is evident in Aspen. We are seeing impacts such as warmer temperatures, shifting rain and snow patterns, and more precipitation arriving as rain rather than snow. The average number of consecutive frost-free days in Aspen has increased by forty-six days since 1940 and by thirty days since 1980, representing the loss of more than a month of winter in less than a lifetime. As a community that relies on its environment as part of its appeal for recreation and tourism, climate change has far-reaching implications. 1 ___ Climate change 2022: Impacts, adaptation, and vulnerability. IPCC Intergovernmental Panel on Climate Change. https://www.ipcc.ch/report/ar6/wg2/ ASPEN’S BUSINESS-AS-USUAL EMISSIONS FORECAST Source: City of Aspen 2020 Greenhouse Gas Emissions Report (published in January 2022). Electricity Natural Gas Fugitive Emissions Propane Vehicles and Transit Aviation WasteEmissions (mt CO2e)2030 Goal: 63% reduction from 2017 2050 Goal: Net-zero emissions 18 2023 // ASPEN SUSTAINABILITY ACTION PLAN 9 We have new science-based targets for GHGs reduction. We need an updated, adaptable roadmap to act on climate and reach our community’s science-based targets. 2007: Aspen’s first Climate Action Plan (Canary Action Plan) was approved which set ambitious goals to reduce GHGs by 30% below 2004 levels by 2020, and 80% below 2004 levels by 2050. 2017: Aspen published its most recent Climate Action Plan and accompanying Greenhouse Gas Reduction Toolkit. 2022: Aspen City Council adopted ambitious science-based targets to reduce GHGs by 63.4% below 2017 levels, and 100% below 2017 levels by 2050. 2023: The City updated the 2017 Climate Action Plan to create the 2023 Aspen Sustainability Action Plan. Aspen’s science-based targets are the result of Aspen’s recent commitment to ICLEI’s Local Governments for Sustainability Race to Zero campaign. ICLEI first asks cities to endorse the Race to Zero principles and then pledge to “get to zero GHGs as soon as possible and by 2050 at the latest.” Although Aspen has pursued GHGs reduction targets since 2007, it is necessary to update targets to reflect the latest climate change data and to increase the speed and impact of Aspen’s climate actions. ICLEI used Aspen’s 2017 community-wide GHGs inventory to calculate Aspen’s science-based targets: - 63.4% reduction of 2017 GHGs by 2030. - 100% reduction of GHGs (net-zero) by 2050. These long-term science-based targets are consistent with Aspen’s portion of its fair share of global emissions. 19 2023 // ASPEN SUSTAINABILITY ACTION PLAN 10 SUMMARY OF THIS PLAN The Aspen Sustainability Action Plan provides recommendations in four high-impact sectors that are based on extensive analysis, modeling, deliberation, stakeholder input, and community engagement to ensure buy-in and feasibility. Energy Supply Buildings Aviation & Airport Generating electricity to power the community. Use energy of all types in commercial buildings. Aircraft operations and energy use and transportation directly attributable to airport operations and passengers. STAKEHOLDER ENGAGEMENT The recommendations in this plan are a culmination of research and feedback gathered from dozens of stakeholders in 2022 and builds on the extensive research and engagement performed in the development of the 2017 Climate Action Plan. For a list of the stakeholders that helped us craft this plan, see page 26. Aspen will seek ongoing input and feedback from the community as this plan is implemented. The City of Aspen performs Greenhouse Gas Emissions Inventories (GHG inventories) of both its community wide emissions and its municipal operations every 3 years. The 2020 GHG inventory is the latest inventory depicting Aspen's community wide emissions footprint. The next inventory will be compiled in 2023. Transportation Waste The on-road movement of people, goods, and services in private, transit, and fleet services. Solid waste generated in the community and transported to the landfill. ASPEN’S 2020 EMISSIONS BY SOURCES Source: City of Aspen 2020 Greenhouse Gas Emissions Report (published in January 2022). 26% TRANSPORTATION 30% RESIDENTIAL BUILDINGS 30% COMMERCIAL AND INDUSTRIAL BUILDINGS 16% SOLID WASTE 0.3% WASTEWASTER TREATMENT1% FUGITIVE EMISSIONS 20 2023 // ASPEN SUSTAINABILITY ACTION PLAN 11 This roadmap is guided by data outlined in the 2019-2020 Greenhouse Gas Emissions Inventory which is a semi-annual (every 3 years) inventory of both Aspen’s municipal-operations emissions and community-wide emissions. ASPEN'S GHG EMISSIONS • The 2019-2020 Greenhouse Gas Emissions Inventory is different to previous inventories as it analyzed two years of data to get a more accurate representation of the impacts of COVID-19 and broader trends both before and during the pandemic. • The Greenhouse Gas Emissions Inventory also encompasses a smaller geographic area. All of Aspen’s past inventories collected data from a geographic region that was similar to the Urban Growth Boundary and included the City of Aspen and parts of unincorporated Pitkin County around the city, including ski areas, residential neighborhoods, and the Aspen/Pitkin County Airport. • In 2020, other governments in the region, including Pitkin County, the Town of Basalt, and the Town of Snowmass Village, joined in partnership with the City of Aspen to conduct a region-wide inventory. According to global reporting protocols, Aspen’s GHG boundary became about 20% smaller (more reflective of the City’s municipal boundaries) to not double count areas where other governments were claiming responsibility for the emissions. All areas covered in the previous Emissions Inventory Boundary that are not included in Aspen’s legal boundary are captured in emissions totals for unincorporated Pitkin County. Basalt Snowmass Village Aspen Unincorporated Pitkin County ASPEN EMISSIONS INVENTORY BOUNDARY The Aspen Emissions Inventory Boundary (EIB) is seen in the center of the image. The regional EIB includes neighboring jurisdictions in Pitkin County. 21 2023 // ASPEN SUSTAINABILITY ACTION PLAN 12 ENERGY SUPPLY KEY TAKEAWAYS • The City of Aspen Utilities’ 100% renewable energy achievement and Holy Cross Energy’s goal to reach 100% renewable energy by 2030 provides a strong foundation for GHG reductions in all sectors. • By working with partners to eliminate carbon-sourced energy from Aspen’s grid, the City will be positioned to take full advantage of electrification initiatives. • There is still a significant opportunity to shift to local renewable energy sources, including utility-scale generation. SECTOR GOALS • The City will continue to monitor infrastructure development and support resource allocation and field advancement that serve this plan’s goals. • All utilities serving the Aspen community will procure energy supply solely through renewable energy resources by 2050. • The City will balance increased demand for electricity with energy conservation and efficiency and support the development of electricity infrastructure to lay the groundwork for electrification. 22 2023 // ASPEN SUSTAINABILITY ACTION PLAN 13 #Ongoing Energy Objectives (EO) EO1  Support Holy Cross Energy, Municipal Energy Agency Nebraska (MEAN), and Black Hills Energy in decarbonizing Aspen’s energy supply by 2050. A1  Identify gaps and support opportunities to help Holy Cross Energy, Black Hills Energy, MEAN, and other regional utilities to move towards 100% renewable energy. A2  Support state and federal policy that enables renewables and decarbonization and provides grants and additional resources for support. A3 Participate in regional and state collaboratives of governments, businesses, and utilities to drive clean energy transition. A4 Support policies that retire, convert or sell fossil-fuel plants serving the area. A5 Assess opportunities to help utilities and customers prepare for electrification. EO2 Support efforts to maximize local and regional production of renewable energy. A1 Support and incentivize consumers to purchase and generate renewable energy including the development of micro and utility-scale renewables. A2 Support distributed and utility-scale energy storage to address the intermittency of wind and solar. A3 Assess local codes and policies to enable renewable energy development. A4 Encourage regional renewable energy development. EO3 Support relevant federal and state energy policies through active legislative and regulatory engagement. A1  Through continued engagement with community members, elected officials, and partner organizations, Aspen will advance relevant energy- related policy to the benefit of the community. Given the dynamic nature of the policy landscape, Aspen will continue a formal process for prioritizing and advocating on key issues. ASPEN’S 2020 STATIONARY ENERGY EMISSIONS DETAILS Source: City of Aspen 2020 Greenhouse Gas Emissions Report (published in January 2022). ASPEN ELECTRIC ENERGY SOURCES Source: Holy Cross Electric, 2021, holycross.com 27% RESIDENTIAL ELECTRICITY 25% RESIDENTIAL NATURAL GAS 18% COMMERCIAL ELECTRICITY 28% COMMERCIAL NATURAL GAS 2% FUGITIVE EMISSIONS 30.79% COAL 48.37% RENEWABLES 14.77% MARKET 0.51% MINE METHANE5.56% GAS 53% WIND 46% HYDRO 1% LFG HOLY CROSS ELECTRIC ENERGY SOURCES Source: Aspen Electric, 2022, aspen.gov/1202/Renewable-Energy 23 2023 // ASPEN SUSTAINABILITY ACTION PLAN 14 BUILDINGS “Embodied carbon refers to the greenhouse gas emissions arising from the manufacturing, transportation, installation, maintenance, and disposal of building materials.” - Carbon Leadership Forum KEY TAKEAWAYS • Advancement in the building sector towards community climate goals needs to prioritize the lowest income community members in both reducing costs and realizing benefits. • The building sector will be decarbonized through addressing embodied carbon*, energy and water conservation, water and energy efficiency, and renewable energy transition (e.g., electrification), for new and existing buildings. • Cost, available technology, and feasibility are key factors in determining the speed and scale of building decarbonization. • Workforce development will be key to the success of this section’s implementation. SECTOR GOALS • Increase efficiency and reduce energy and water consumption in buildings. • Buildings are fully electric when feasible. • Newly constructed buildings are low- to no-carbon. • Ensure utility costs are scaled to equitably address the cost of decarbonization. • Ensure City development regulations support building sector goals. 24 2023 // ASPEN SUSTAINABILITY ACTION PLAN 15 #Building Objectives (BO)  BO1 Support and incentivize the reduction of energy and water consumption and high-efficiency performance of buildings. A1 Model best practices in efficiency and electrification through energy retrofitting of government buildings and properties. A2 Implement Building IQ and explore opportunities to expand to include additional building types and sizes. A3 Identify community partners and encourage the development of energy and water efficiency and building workforce. A4 Implement a building performance standard that aligns with the City’s climate goals and provides resources for support. A5 Require energy performance disclosure at the point of lease or sale. A6 Evaluate sub-metering requirements for buildings, and implement if beneficial. A7 Leverage business licenses renewal and/or permitting process to increase benchmarking participation and performance. BO2 Support electrification in residential and commercial properties where financially and practically feasible and where the energy burden faced by tenants will not increase as a result of electrification. A1 Consider a component in building performance standards guidelines to require electrification over time. A2 Create an electrification task force. A3 Encourage and incentivize conversions and retrofits to high-efficiency electric for space and water heating and cooling (i.e. ground source heat pump). BO3 Mandate no- to low-carbon standards for new construction and major remodels including considerations for energy use and embodied carbon. A1 Consider adopting building standards such as all-electric and net-zero energy for new buildings and remodels. A2 Integrate space and water heating and cooling equipment standards into building codes. A3 Adopt the latest energy codes with specific local requirements to exceed minimum standards, work towards net-zero, and align with building performance standards. A4 Require net-zero (or near net-zero) for all new development as defined by the City of Aspen. A5 Limit GHGs from future development using controlled growth with careful consideration for developments like affordable housing. A6 Explore incentives and requirements for embodied carbon. BO4 Support utility rates optimization. A1 Support the adaptation of utility rates as necessary to incentivize and balance current and future priorities (i.e., electric vehicles, fuel switching, peak shaving, energy efficiency, demand side management). BO5 Support relevant federal and state buildings policies through active legislative and regulatory engagement. A1 Through continued engagement with community members, elected officials, and partner organizations, Aspen will advance relevant buildings-related policy to the benefit of the community. Given the dynamic nature of the policy landscape, Aspen will continue a formal process for prioritizing and advocating on key issues. 25 2023 // ASPEN SUSTAINABILITY ACTION PLAN 16 BUSINESS AS USUAL EMISSIONS FROM BUILDINGS Source: Group 14 Engineering, Building Performance Standards Stakeholder Group Meeting, published in January 2023.Carbon Emissions (mt CO2e)Years Natural Gas Carbon Emissions Electric Carbon Emissions Emissions Reduction Goal Buildings account for 57% of our community’s greenhouse gas emissions, so action in this sector is especially important and impactful. 26 2023 // ASPEN SUSTAINABILITY ACTION PLAN 17 VEHICLES & TRANSPORTATION KEY TAKEAWAYS • Opportunities to reduce emissions come from collaboration across departments and community partners. • As a starting point, the City will prioritize active and shared transportation. If one must drive, then electric and zero emissions options are preferred. • Beyond saving the community time and money, low and zero- emission transportation offerings and programs need to remove accessibility barriers. • The co-benefits of prioritizing active and shared transportation over single-occupant vehicle driving include improving traffic congestion, community well-being, and air quality. Reduced vehicle emissions can lead to lower ground-level ozone and particulate matter and lessen the health effects caused by these air pollutants. SECTOR GOALS • Reduce solo vehicle miles traveled, both locally and regionally. • Promote public (mass) transit and mobility-as-a-service, which describes more connected and on-demand mobility services often accessed through a digital app or platform, and the associated infrastructure. • Incentivize electric and zero-emission vehicle adoption for individuals and fleets, including supporting charging infrastructure build-out. 27 2023 // ASPEN SUSTAINABILITY ACTION PLAN 18 #Transportation Objectives (TO) TO1  Reduce vehicle miles traveled by promoting alternatives to single-occupancy vehicles including active, shared, and public transportation. A1 Collaborate with employers to subsidize transit and mobility options for employees. A2 Further support the development of bicycle infrastructure (e.g., more bike and shared lanes in key locations, bike parking, and solutions to key locational conflict/hazard areas). A3 Prepare research into commuter behavior to understand conditions necessary to promote mode shift. A4 Enable the growth of on-demand mobility services (e.g., ridesharing, bike-sharing, car-sharing, etc.) for the first- and last-mile of transit connections and/or full trips. A5 Advocate for pedestrian and bicycle safety in ongoing and future projects. A6 Support and research policies to disincentivize single-occupant vehicle travel. TO2  Enhance first- and last-mile connectivity to transit. A1 Support expansion of feeder transit networks to increase access to primary transit stops (e.g., circulators, on-demand mobility). A2 Support and expand mobility offerings for the first- and last-mile and/or full trips. TO3  Promote the adoption of electric and zero-emissions vehicles for individuals and fleets. A1 Support community-wide fleet electrification (e.g., rental cars, hotel shuttles, private fleets, government fleets, RFTA, Car to Go, and personal vehicles). A2 Facilitate partnerships to create electric vehicle charging hubs for taxis and other fleets. A3 Prioritize electric vehicle charging stations in visible, accessible locations. A4 Include electric vehicle charging installations in the City of Aspen building code. A5 Communicate wins and share lessons learned from internal fleet electrification efforts with the wider community. O4 Support relevant federal and state transportation policies through active legislative and regulatory engagement. A1  Through continued engagement with community members, elected officials, and partner organizations, Aspen will advance relevant energy-related policy to the benefit of the community. Given the dynamic nature of the policy landscape, Aspen will continue a formal process for prioritizing and advocating on key issues. ASPEN’S 2020 TRANSPORTATION EMISSIONS 78% ON-ROAD GASOLINE .5% ELECTRIC VEHICLES 19% ON-ROAD DIESEL 3% TRANSIT Source: City of Aspen 2020 Greenhouse Gas Emissions Report (published in January 2022). EVs are listed as having a 0.5% emissions footprint due to vehicles being charged on non-renewable resources. As surrounding utilities transition to greater renewables, this percentage will shift to zero. 28 2023 // ASPEN SUSTAINABILITY ACTION PLAN 19 WASTE KEY TAKEAWAYS • Landfilling resources adds to Aspen’s GHG emissions and shortens the usable life of the landfill. Once the Pitkin County Landfill closes, solid waste will have to be transported out of the Roaring Fork River Valley, increasing the miles traveled for disposal. • Opportunities exist to divert organic materials, recyclables, and construction and demolition debris away from the landfill and into a circular economy. • The two largest categories of solid waste generated in Aspen are construction and demolition debris and organic material. SECTOR GOALS • Reduce organic material going from Aspen to the landfill by 25% by 2025 and by 100% by 2050. • Reduce construction and demolition debris buried in the landfill by 50% by 2030 and 80% by 2050. • Divert 70% of all solid waste from the landfill by 2050. 29 2023 // ASPEN SUSTAINABILITY ACTION PLAN 20 #Waste Objectives (WO) WO1  Decrease municipal solid waste generation. A1 Implement City of Aspen ordinance changes related to resource reduction, reuse, and recycling (e.g., organics and single-use materials). A2 Enforce regulations related to waste avoidance, diversion, and reduction. A3 Incentivize waste diversion practices, such as composting, recycling, and reusing materials. A4  Educate and inform the community about systems, ordinances, practices, and rules regarding waste diversion, such as composting, recycling, and reusing materials. WO2  Decrease construction and demolition debris generation. A1 Phase out the practice of demolition through deconstruction standards. A2 Establish recycled content standards in all construction activity. A3 Introduce or enhance City ordinances and codes to promote and incentivize recycling and the reuse of building materials. A4 Align with City, Pitkin County, and regional waste codes that promote recycling and reuse of building materials. WO3  Support relevant waste-related federal and state policies through active legislative and regulatory engagement. A1  Through continued engagement with community members, elected officials, and partner organizations, Aspen will advance relevant waste- related policy to the benefit of the community. Given the dynamic nature of the policy landscape, Aspen will continue a formal process for prioritizing and advocating on key issues. WO4 Reduce vehicle emissions from solid waste haulers. A1 Incentivize and support GHG reductions through route optimization and zero-emission technology. ASPEN’S 2020 WASTE EMISSIONS TOTAL WASTE EMISSIONS: 27,938 21% MUNICIPAL SOLID WASTE 78% CONSTRUCTION AND DEMOLITION WASTE 1% COMPOST .2% WASTEWATER Source: City of Aspen 2020 Greenhouse Gas Emissions Report (published in January 2022). Landfill: Food scraps and garden waste create acids in anaerobic conditions and pollutes groundwater. Methane: (a very strong greenhouse gas) is produced from food and garden waste kept in anaerobic conditions. Compactor (Not Shown): Removes air in the landfill to save space, which creates an anaerobic environment. 30 2023 // ASPEN SUSTAINABILITY ACTION PLAN 21 AVIATION & AIRPORT KEY TAKEAWAYS • Within the transportation sector, aviation is the greatest emitter, accounting for 58% of transportation emissions in 2020 (and 57% in 2019). • The greatest opportunity for emissions reductions at the Aspen/ Pitkin County Airport is through aircraft operator and tenant emissions. SECTOR GOALS • Support policy and initiatives that reduces airport and aircraft emissions. • Work with key partners on driving sustainable tourism practices and education. • Support sustainable mass transit connection between the city and the airport. 31 Source: City of Aspen 2020 Greenhouse Gas Emissions Report (published in January 2022). 2023 // ASPEN SUSTAINABILITY ACTION PLAN 22 #Aviation Objectives (AO) AO1  Encourage the reduction of airport controlled GHGs. A1 Support the use of electric vehicles or other zero-emissions vehicles for ground support vehicles and ground support equipment. A2 Encourage taxi and airport shuttles to electrify fleet vehicles. AO2  Encourage the reduction of aircraft and aviation related GHGs. A1 Promote and incentivize the use of sustainable aviation fuels in aircraft servicing the local airport. AO3  If a new terminal is developed, ensure that it represents the pinnacle of energy efficiency and sustainability. A1 Encourage and support new terminals or airport buildings to be net- zero. AO4 Encourage passengers to use transit and mobility services to access the airport. A1 Encourage rental car companies to have electric vehicle options and support infrastructure development. AO5 Support relevant aviation and airport-related federal and state policies through active legislative and regulatory engagement. A1  Through continued engagement with community members, elected officials, and partner organizations, advance relevant aviation and airport-related policy to the benefit of the community. ASPEN'S 2020 TRANSPORTATION EMISSIONS 58% AVIATION 33% ON-ROAD GASOLINE 8% ON-ROAD DIESEL 1% TRANSIT ASPEN'S 2020 EMISSIONS BY SOURCE WITH AND WITHOUT AVIATION CONTRIBUTIONS Emissions (mt CO2e)32 2023 // ASPEN SUSTAINABILITY ACTION PLAN 23 1 ___ https://www.ncei.noaa.gov/access/monitoring/climate-at-a-glance/county/time-series CONCLUSION Aspen’s average annual temperatures are increasing, and according to projections, this trend is expected to continue.1 Without prioritizing the current climate challenge, hotter springs and summers will lead to more frequent wildfires and increased demand for our limited water supply. It is critical that we respond to the climate challenges now. The City of Aspen believes that we all have a responsibility to preserve the habitats of our local plant and animal species, our water supply, and the outdoor recreational activities that make this community unique. The Aspen Sustainability Action Plan’s successful implementation is contingent on collaboration and feedback from the community and our regional partnerships. The City of Aspen will update this plan annually, prioritizing the feedback that we receive from readers like you. Please email climate@aspen.gov with feedback and questions. We look forward to our continued work with the community so that we can successfully reach our zero-carbon goal by 2050. 33 24 APPENDIX A 34 2023 // ASPEN SUSTAINABILITY ACTION PLAN 25 ASPEN’S CLIMATE ACTION HISTORY As one of the first cities in the United States to establish a climate division, the City of Aspen prides itself on working for decades to pave a path towards a more sustainable world. This timeline represents some key moments in the history of the City of Aspen’s climate action accomplishments. These wins would not be possible without the collaboration and support from all City of Aspen departments, regional partnerships, Aspen City Council, and the community. 2000 – Partnered with CORE and Pitkin County to form the nation’s first Renewable Energy Mitigation Program (REMP) that incentivizes homeowners to install renewable energy systems. 2003 – Implemented rigorous air quality improvement efforts to regain Environmental Protection Act (EPA) attainment in 2003. In 1988, Aspen received the EPA’s non- attainment status for poor air quality standards. 2005 – Founded the Canary Initiative, the City’s effort to promote environmental stewardship throughout the Roaring Fork Valley. 2005 – Completed the first GHG inventory. 2007 – Created the first Climate Action Plan, committing to an 80% reduction in emissions by 2050. 2010 – Assisted in expanding the composting operations at the Pitkin County Solid Waste Center, leading to curbside collection services. 2012 – Banned single-use plastic bags from Aspen grocers. 2015 – Transitioned our municipal electric system to use 100% renewable energy. 2015 – Installed the first public electric vehicle charging station. 2016 – Passed the Community Electric Vehicle Readiness Plan. 2017 – Adopted an updated Aspen Climate Action Plan. 2017 – Passed the Water Efficient Landscaping Standards (WELS), which established irrigation and landscaping installation requirements. 2018 – Became a professional certifying organization for the Qualified Water Efficient Landscaper (QWEL) Program, an EPA certification program. 2021 – Passed the Electric Vehicle Public Charging Infrastructure Master Plan that sets the goal of significantly increasing publicly available charging stations by 2026. 2022 – Passed the Building IQ ordinance, which set tracking and performance standards for buildings. 2022 – Integrated five Tesla electric vehicles into the Aspen Police vehicle fleet. 2022 – Signed the Race to Zero Agreement, committing to achieving net-zero carbon emissions by 2050. 1885 – Became the first city in the U.S. west of the Mississippi River, to light streets and businesses with hydroelectric power. 1996 – Approved its first Water Conservation Plan as an element of the larger Water Management Plan. 1997 – Developed the solid waste code to require appropriate disposal of waste. Rules about waste did not exist before 1997. 35 2023 // ASPEN SUSTAINABILITY ACTION PLAN 26 ACKNOWLEDGMENTS The 2023 Aspen Sustainability Action Plan is an initiative of the City of Aspen in partnership with the Roaring Fork Valley Community. The updated plan builds on the work that was done with the partner organizations listed in this section. The authors of this document thank both Council and the community for their support of the plan’s successful implementation. Aspen Center for Environmental Studies (ACES) Aspen Chamber Resort Association (ACRA) Aspen Global Change Institute Aspen Skiing Company Black Hills Energy City of Aspen Departments Community Office for Resource Efficiency (CORE) Institute for Market Transformation Holy Cross Energy Pitkin County Pitkin County Solid Waste Center Roaring Fork Transportation Authority (RFTA) Town of Basalt Town of Carbondale Town of Snowmass Village We-Cycle 350.org WE THANK THESE ORGANIZATIONS FOR SUPPORTING THE PREPARATION OF THIS PLAN: ASPEN’S CLIMATE EFFORTS LEVERAGE SUCCESSES AND COMMITMENTS AT THE STATE, NATIONAL, AND INTERNATIONAL LEVELS. REGIONAL PARTNERS INCLUDE: Pitkin County Town of Snowmass Village Town of Basalt Eagle County Town of Carbondale City of Glenwood Springs Garfield County OTHER PARTNERS: Compact of Colorado Communities Colorado Communities for Climate Action Global Covenant of Mayors America’s Pledge/We are Still In Climate Mayors Carbon Disclosure Project International Council for Local Environmental Initiatives USA and Carbon Urban Sustainability Directors Network 36 City of Aspen Climate Action Department climate@aspen.gov aspen.gov/climate CONTACT US 37 MEMORANDUM TO:Mayor and City Council FROM:Liz Axberg, Housing Policy Analyst Ben Anderson, Deputy Director, Community Development Matthew Gillen, Executive Director of APCHA Scott Miller, Director of Public Works Pete Strecker, Director of Finance Phillip Supino, Director of Community Development THROUGH:Diane Foster, Assistant City Manager MEMO DATE:May 3 rd, 2023 MEETING DATE:May 8 th, 2023 RE:2022-2026 Affordable Housing Strategic Plan Update _____________________________________________________________________ REQUEST OF COUNCIL: City Council will be updated on the progress and status of the 2022-2026 City of Aspen Affordable Housing Strategic Plan action items. No action is requested from City Council at this time. SUMMARY AND BACKGROUND: In April 2022, City Council approved to adopt the 2022-26 Affordable Housing Strategic Plan. On November 14 th, Council received the first strategic plan update. Every 6 months, staff provide an Affordable Housing Strategic Plan update to City Council. On page 18 of the strategic plan, the action plan decision matrix lists the 14 action items that City of Aspen staff are focusing on to increase the number of affordable housing units in the next five years. The action items were positioned in order of the estimated number of affordable housing units each could generate during the five-year period of the Affordable Housing Strategic Plan. The action items are as follows: 1. Replace Expiring Deed Restrictions with Permanent Deed Restrictions 2. Complete Lumberyard Project 3. Complete Burlingame Phase 3 Project 4. Community Development Policy Actions 5. Certificates of Affordable Housing Program Enhancements 6. Develop Financial Resources for Construction, Expiring Deed Restrictions & Land Banking 7. APCHA Incentivized voluntary downsizing or voluntary buyout 38 8. Partnerships 9. APCHA Compliance Actions 10.APCHA Policy Actions to increase number of available units 11.APCHA Policy Actions to improve the sustainability housing inventory 12.Additional Development Neutral Program Elements 13.Land Banking 14.Regional Collaboration Since implementation of the strategic plan, Staff across departments have continued to collaborate and contribute to progress on each of these action items. This includes continued conversations as a team on expiring deed restrictions, developing land use code that supports affordable housing, and polices that can positively contribute to the APCHA program by rightsizing units or sustaining units through support of maintenance repairs and capital improvements. On the new development side, Burlingame Phase 3 continues ongoing construction, and the Lumberyard land use development application was submitted early November. Thank you to the City of Aspen Affordable Housing Team for their ongoing contributions and collaboration on the 2022-26 Affordable Housing Strategic Plan. DISCUSSION: 1. Action Item: Replace Expiring Deed Restrictions with Permanent Deed Restrictions Action Item Owners: Liz Axberg Item Description: Page 20 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: In the 2022-26 Affordable Housing Strategic Plan, City Council and staff set Expiring Deed Restrictions as the number one priority with the goal to replace and preserve at least 200 of the 324 expiring deed restrictions in Pitkin County by 2026. This included 79 ownership units and 244 rental units. Since implementation of the strategic plan, staff have worked collaboratively to outline and model strategies that would incentivize owners to replace their expiring restrictions. With rising construction costs, preserving the affordable housing units we already have is significantly more cost-effective than new development. City Council set this goal as a top priority because it preserves the affordability and integrity of units in perpetuity. There is an ongoing, automatic process for updating expiring deed restrictions with APCHA’s current deed restriction that enforces APCHA regulations. Anytime a property is sold or transferred through APCHA, the deed restriction is replaced. Since implementation of the Affordable Housing Strategic Plan, two properties have been automatically replaced through this process (bringing the total of ownership units with expiring deed restrictions from 79 to 77). 39 Staff are discussing and modelling strategies for both rental and ownership units but acknowledge that the strategy implemented would be different with ownership vs rental units due to the nature of the properties. Progress is being made in both areas. Identified Next Steps: Staff across departments continue work to model strategies that could make the 322 expiring deed restrictions permanent. Staff expects to host a City Council work session on this topic before the end of 2023. 2. Action Item: Complete Lumberyard Affordable Housing Development Project Action Item Owner: Chris Everson Item Description: Page 21 of the 2022-2026 Affordable Housing Strategic Plan Progress to Date: The project team has had two public hearings with the Planning and Zoning commission, and we will be back with them on May 2, 2023. The team hopes to come out of the P&Z hearings with a recommendation for City Council, and we hope to schedule public hearings with City Council beginning in late May 2023. Based on direction received from Aspen City Council in a public work session on September 26, 2022, the land use development application for the Lumberyard affordable housing project with 195 affordable rentals and 82 affordable ownership units was formally submitted to Community Development on November 2, 2022. Identified Next Steps: Implementation is planned to be phased, with the City beginning demolition, access, utilities and infrastructure work starting in 2024. Phases of vertical implementation are expected to be accomplished thereafter, through public private partnerships, which will be sought while infrastructure is being put in place. An access permit application has been submitted to the Colorado Dept. of Transportation (CDOT) to begin the formal process of preparing to implement the signalized intersection beginning in 2024. Staff’s assumption is, even if the project is changed in some way during the remainder of the public hearing review and approval process, Council will still want to begin implementation in 2024, and an access permit will be needed under most any redevelopment circumstances. 3. Action Item: Complete Burlingame Ranch Phase 3 Affordable Housing Development Project 40 Action Item Owner: Chris Everson Item Description: Page 22 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: Staff provided the following update to Council on March 27, 2023: Replacement of windows is recently underway and requires removal of siding on the exterior and removal of drywall on the interior in the area of each affected window. This is planned to occur in all buildings on the project. Impacts to the interior of the units are significant and requires subsequent repair and cleaning throughout each unit affected. Unit repairs and cleaning are planned to occur as the remediation work moves forward. Due to labor constraints, the project team is still working out labor resources and exact time frame for the window replacement and subsequent repairs and cleaning of affected units. Staff has requested an additional $3 million in budget authority as part of the 2023 spring supplemental budget process to ensure that funds will be available to complete the necessary repairs and for the insurance and general conditions related to the schedule extension. In the event that labor resources can be worked out soon and suppliers perform as planned, staff expects unit sales could occur late summer 2023 and about one third of the additional budgeted funds may be expended. If labor resources require further augmentation and/or supplier efforts suffer some setbacks, unit sales may need to wait until fall 2023 and up to approximately two-thirds of the requested funds may be expended. If labor resource issues are persistent and supplier efforts fall significantly short of their negotiated remediation actions, units may be further delayed to 2024 and 100% of the supplemental funds could be expended. Identified Next Steps: Staff plans to judiciously expend funds only where absolutely necessary to facilitate the remediation work occurring as efficiently as possible in terms of both dollars and time spent. Staff plans to seek reimbursement from applicable suppliers for funds which the City ultimately may determine to be the responsibility of other parties based on the City’s contracts. At the work session on March 27, 2023, City Council approved the income limit mix for the new (25) 1-bedroom, (17) 2-bedroom and (37) 3-bedroom ownership units (79 units total) to be distributed as 23% Category 2, 32% Category 3, 32% Category 4, and 14% Category 5. Council also generally agreed with staff’s recommended approach to sales lotteries and a right-sizing pilot program to include 5 units. 41 4. Action Item: Community Development Policy Analysis Action Item Owners: Ben Anderson and Phillip Supino Item Description: Page 23 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: In response to the Residential Building Moratorium, passage of Ordinances 13, and 14 in June of 2022 implemented several important policy changes in support of both public and private sector affordable housing development: Administrative review path for deed-restricted AH projects that are otherwise fully compliant with provisions in the Land Use Code. This improvement streamlines and brings additional certainty to the land use approval process for affordable projects. This is intended to cut review times and reduce associated carrying costs before a project's construction. Opportunities for the development of deed-restricted tri-plex and four-plex developments in zone districts that were previously limited to single-family and duplex units. Projects of this kind would be limited to the previously established dimensional limitations of the zone district but would allow additional density in support of AH. Removal of intended and unintended limitations on AH development across most of the zone districts in the city. These changes did not amend dimensional limitations but are consistent with clearly stated community desires that AH is possible across Aspen. Increased affordable housing mitigation requirements in the development and redevelopment of market-rate single-family and duplex units. Including areas in basements and garages in the calculation of mitigation and removing the credit for existing floor area in redevelopment scenarios translates to a mitigation requirement more reflective of employee generation impacts. Increase to affordable housing Fee-in-Lieu. Using a code-prescribed process, the Fee-in-Lieu was increased by nearly 8.5% reflecting a national construction cost index published by the Engineering News Record. This increase will translate into additional revenue from projects that can mitigate with Fee-in-Lieu and influence values in the market for Certificates of Affordable Housing Credit. Identified Next Steps: Staff is continuing to evaluate the effect of the new policies implemented by Ordinances 13 and 14 and the continual adjustments necessary in ensuring the connection between the AACP and the Land Use Code in support of affordable housing. This includes identifying new areas for possible coordination between Community Development, APCHA, and the City Asset Management Affordable Housing program. Additionally, Community Development is evaluating tactics within the building permit review process to consider time and cost considerations in AH development. This may involve proposals for alternative review processes and permit fee reductions. 42 Staff is tracking progress on proposed statewide legislation (213 and 1255, specifically) and has provided alternative language to our state representatives and through lobbying organizations (CAST and CML) as possible amendments. Depending on if either or both of these bills pass, and what specific provisions are included, work may need to be done within Aspen’s Land Use Code to continue long-standing programs related to growth management and affordable housing. Staff will continue to monitor and will update Council as necessary. 5. Action Item: Certificates of Affordable Housing Program Enhancements Action Item Owner: Ben Anderson Item Description: Page 24 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: Established more than ten years ago, the Certificates of Affordable Housing Credits program has been effective in encouraging private sector affordable housing development and in the conversion of market-rate multi-family housing into deed- restricted units. However, the program needs improvement as market conditions have changed. Minor changes to the program were made in a code amendment process in 2021 and Ordinance 13 created an administrative review path for the issuance of AH Credits. These changes, while important, are minimal and will not likely shift the underlying issues with the program. Much more is needed if the program is to remain viable and encouraging of additional affordable housing development. Identified Next Steps: Working with experts from Design Workshop, ComDev staff continue to study potential changes to the AH Credits program. We are evaluating multiple possible code changes in response to issues identified in interviews and discussion with members of the development community and those working to finance AH development projects. Examples of the types of changes that may be proposed: Allowing for the issuance of AH credits for Category 5 and/or Resident Occupied (RO) deed-restricted units. Currently, the code only allows Category 1 - 4 units for credit eligibility. Allowing for issuance of AH credits for dormitory and co-housing unit types. Allowing for non-profit and quasi-government entities to pursue credits. There is also contemplation of allowing private entities working in partnership with the City on AH development to be eligible for credit issuance. Currently, the code effectively only allows private sector AH developers to receive credits. Allowing for the issuance of AH credits as mechanism to encourage permanent affordability for properties that have expiring deed-restrictions. Utilizing the Planned Development process as a mechanism for determining AH Credit issuance for development and redevelopment scenarios that should be 43 encouraged but require flexibility and incentive in pursuit of new or updated AH units. Allowing for the issuance of AH credits as a possible mechanism for APCHA in the encouragement of right-sizing initiatives or other similar program interests. Staff held a Work Session with Council on December 12, 2022, to discuss proposals for changes to the AH Credits program. Reflecting feedback from this discussion, Council passed a Policy Resolution directing staff to pursue Land Use Code Amendments to implement these outcomes. Staff anticipates bringing proposed amendments to Council in June of 2023. Importantly, per Council direction, staff is continuing to evaluate, but is not proposing at this time to make changes to the program that would involve the City of Aspen becoming involved in the AH credits market – including the purchasing of AH Credits or other mechanisms that would bring more certainty to the value of AH Credits. 6. Action Item: Develop Financial Resources for Construction, Expiring Deed Restrictions & Land Banking Action Item Owner: Pete Strecker Item Description: Page 25 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: Since the last update, November 8, 2022’s election results affirmed voter support of implementing a new short-term rental (STR) excise tax. This tax (ranging between 5% and 10% depending on the type of STR permit for the property) will be levied on all STR rentals on or after May 1, 2023, and in its first full year (2024), it is anticipated to amass up to $6M for the benefit of developing, acquiring, or maintaining affordable housing for the Community. Identified Next Steps: In line with previous updates, financing for new housing construction is typically contingent on the specifics of the individual projects, and as such, requires that the projects be designed, entitled, and appropriated to show a firm commitment forward. The Lumberyard project is advancing and shaping this landscape to be able to hone in on the possible methods for financing this endeavor but has not been completely finalized at this time. Tied to a possible financing, staff anticipates engaging the Council and the voting public to extend current sunset dates of December 31, 2040, for both the 1.0% real estate transfer tax and the 0.45% sales tax, to provide a more robust revenue stream to support any debt repayment. Without key sources of revenue identified to support a debt issuance repayment, options for borrowing become limited and also more risky (in terms of retaining control of the financed asset). 44 7. Action Item: APCHA Incentivized Voluntary Downsizing or Voluntary Buyout Action Item Owner: Matthew Gillen Item Description: Page 26 and page 29 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: APCHA Board reiterated with a formal vote that any rightsizing by APCHA owners would be purely voluntary, this vote was taken to alleviate fear in the community that owners would be forced to sell or downsize. During summer of 2022, APCHA owners were invited to complete a comprehensive online survey. 19% of responding three- and four-bedroom owners said they would consider downsizing. The survey analysis was presented to the Board on 9/21/2022. The APCHA Board approved on 4/5/2023 a pilot program for five property exchanges. City Council recently approved the use of five Burlingame Phase III units for another rightsizing pilot project. Identified Next Steps: Applications for the APCHA rightsizing pilot program will be accepted starting early May 2023, initially for five exchanges. The five units in the Burlingame III development will be available for downsizing current APCHA owners. These units will have a separate lottery process. 8. Action Item: Partnerships Action Item Owner: Scott Miller Item Description: Page 27 of the 2022-2026 Affordable Housing Strategic Plan. Progress To Date: Partnerships for Affordable Housing are an opportunity for the City of Aspen to leverage its resources to develop, purchase, or operate more housing units than it might when the city acts as the sole source of capital for development of housing units. The City of Aspen has entered into a conceptual agreement with several other local employers to explore development of Affordable Housing at the property known as the Forest Service Lot, located at Hallam Street and 7th Street. Details of this agreement are still being negotiated. This will probably be a partnership between several governmental jurisdictions, producing a significant number of housing units for each of the partners. The City of Aspen is always looking for partnership opportunities, having engaged in several conversations with private developers, property owners, and governmental 45 jurisdictions. There is nothing new to report at this time. Confidentiality is important to all parties until agreements are close to becoming reality. Identified Next Steps: Negotiations for the Forest Service Lot are continuing; we are hopeful that an agreement beneficial to all parties can be reached. We continue to look for additional partnerships as they present themselves. 9. Action Item: APCHA Compliance Actions Action Item Owner: Matthew Gillen Item Description: Page 28 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: Every other year in the APCHA Ownership Affidavit, owners must attest that they: 1. Are still working in Pitkin County; and 2. Do not own other developed residential property in the Roaring Fork valley (the owner exclusion zone). Owners are only assessed on their individual financial situation when they buy a property. APCHA verifies all compliance complaints received and responds to all verified compliance complaints received following the Notice of Investigation and Notice of Violation process to determine their validity. Owners unable or unwilling to comply are given a chance to present their case before the neutral APCHA hearing officer. If an out of compliance owner wishes to appeal their case, the hearing officer’s decision can be appealed to the APCHA Board. APCHA has two cases currently in this hearing officer process, both of which are central to preserving the integrity of the APCHA system: one enforcing the prohibition on owning other homes in the OEZ, the other involves multiple rental lease violations. The 2023 affidavit was sent to all APCHA owners in April. A new position of compliance officer was hired on 4/3/2023. Identified Next Steps: APCHA will follow up with all APCHA owners to enforce 100 per cent response to the Ownership Affidavit. The compliance officer will then audit a fraction of the owners. 10. Action Item: APCHA Policy Actions to increase number of available units Action Item Owner: Matthew Gillen 46 Item Description: Page 29 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: APCHA has identified about 480 empty or spare bedrooms in the APCHA ownership inventory; the biennial affidavit owner survey enables APCHA to monitor this number. Due to a regulation change, buyers are now only allowed to bid one category above the category at which they qualify. This change reduces competition for units. Identified Next Steps: APCHA Board has approved a rightsizing pilot program. Applications will be accepted starting May 2023, initially for five exchanges. Additionally, five units in the Burlingame III development will also be available for downsizing APCHA owners. These units will have a separate lottery process. 11.Action Item: APCHA Policy Actions to Improve the Sustainability of APCHA Deed Restricted Housing Action Item Owner: Matthew Gillen Item Description: Please see page 30 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: ACPHA has acquired ownership of two units for upgrades and selling back to qualified owners. APCHA has proposed a maintenance grant pilot program to the APCHA Board. Owners with demonstrated need will be given grants to maintain homes. Identified Next Steps: APCHA revamping outreach to the more than fifty Homeowner Associations under the APCHA umbrella including a survey asking for contact information. Initial goal is to prepare capital reserve studies to measure financial health of HOAs. Since the survey was sent out, APCHA has updated the contact information for 37 HOAs. APCHA will present a maintenance grant program to Pitkin County and City of Aspen to request funds to run program. 12.Action Item: Additional Development Neutral Program Elements 47 Action Item Owners: Ben Anderson and Phillip Supino Item Description: Please see page 31 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: There have been important accomplishments in this area. First, at 1235 E. Cooper, eight, two-bedroom market-rate apartments are being converted to deed-restricted units (in-progress) and ownership transferred to the Aspen School District. ComDev and APCHA worked together with the property owner to identify any issues, process the necessary land use approvals, and have issued the affordable housing credits resulting from the conversion following the recordation of the deed- restrictions. When the right property is involved, flexible solutions can be identified to facilitate the creation of new affordable housing without necessarily requiring new development. It is hoped that this project can be a model for other similar outcomes. Secondly, Land Use Code changes resulting from Ordinance #13 were specifically crafted to result in development neutral affordable housing and neighborhood scaled projects that are centrally located. Lastly, Community Development is working on improvements to the AH Credits Program to provide additional flexibility for redevelopment projects, particularly involving expiring deed restrictions, to encourage development neutral outcomes. Identified Next Steps: To fully realize the potential of this action item, it is clearly recognized that additional creativity will be required. Additionally, improved coordination of the Land Use Code, APCHA regulations, and the interests of City of Aspen Asset Management and the 150 Fund will be essential. Council has broadly discussed but has not provided specific direction to staff in the evaluation of additional or alternative revenue streams to finance AH construction (outside of the short-term rental ballot question). Council could provide direction for further evaluation of other potential revenue sources or mechanisms. 13.Action Item: Land Banking Action Item Owner: Scott Miller Item Description: Page 32 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: Land Banking is the process of acquiring and holding land for future development, re-development, or land trade. Over the years, the City of Aspen has purchased several properties for Affordable Housing development. All but one, the Lumberyard property, has been successfully developed. The Lumberyard property has been designed to 100% Schematic Design and is near the end of the Planning & Zoning review process. There are no new opportunities to report on at this time. 48 Identified Next Steps: Staff continue to search real estate, whether listed for sale or not, for land banking potential. 14.Action Item: Regional Collaboration Action Item Owner: Diane Foster & Jenn Ooton Item Description: Page 33 of the 2022-2026 Affordable Housing Strategic Plan. Progress to Date: Seven governmental entities and two organizations across the valley have committed $10,000 each and are part of the West Mountain Regional Housing Coalition (WMRHC). WMR Housing Coalition officially received tax exempt, Colorado 501(c)(3) nonprofit status this summer of 2022. Since the previous update, the Assistant City Manager continues to work closely with the Coalition and is the board representative for the City of Aspen. The City’s Senior Special Projects Manager, Jenn Ooton, was one of the founding members of the West Mountain Regional Housing Coalition and now acts as the alternate board representative for the WMRHC Accomplishments of the Coalition to date include receiving a $50,000 DOLA Admin grant to support strategic planning, a $100,000 IHOP grant to support policy and code studies, and a $25,000 CHFA grant to support equitable outreach. The WMR Housing Coalition contracted Willaford LLC to conduct a region-wide code and policy scan estimated to be completed in July 2023. This scan compiles codes and regulations across the valley to see where affordable housing code and policy needs more collaboration or alignment. The current program areas of focus include researching a valley-wide ownership buy- down program, a rental funds program, and a bedroom incentive program. The Buy Down program and Rental Funds program are both outlined. The West Mountain Regional Housing Coalition is continuing to take steps to build funding support. This includes recently submitting a $3 million request to the AHIIF23 ARPA Loan and Grant Program to support a Buy Down program Identified Next Steps: City of Aspen staff continue to attend WMR Housing Coalition board meetings and represent the City of Aspen. ENVIRONMENTAL IMPACTS:While development of new affordable housing has a negative carbon impact, these developments are usually built to meet higher-than- building-code environmental standards, as determined by City Council. Because City Council has only pursued development within the City’s urban growth boundary, the travel distance of many of a new development’s residents is reduced. Where transit connections are a high priority in new developments, new residents can mode shift from automobile to transit, which also has a net positive carbon impact. 49 Other strategies in this Strategic Plan are development neutral and, consequently carbon neutral. FINANCIAL/BUDGET IMPACTS:Action Item 6 covers all financial impacts in the Affordable Housing Strategic Plan. CITY MANAGER COMMENTS: APPENDIX: 2022-2026 City of Aspen Affordable Housing Strategic Plan 50 AFFORDABLE HOUSING STRATEGIC PLAN CITY OF ASPEN 2022-2026 51 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 2 COMPREHENSIVE STRATEGIC PLAN OF ACTION TO GENERATE & SUSTAIN AFFORDABLE HOUSING UNITS POLICY • APCHA Compliance Actions • APCHA Policy Actions to improve sustainability of existing affordable housing NEW DEVELOPMENT • Complete Burlingame Phase 3 Project • Complete Lumberyard Project • Partnerships • Regional Collaboration • Land Banking DEVELOPMENT NEUTRAL HOUSING SUSTAINABILITY & COMPLIANCE FOUNDATION: 3,200 CURRENT UNITS IN THE APCHA HOUSING PROGRAM • Replace Expiring Deed Restrictions with Permanent Deed Restrictions • Incentivize voluntary rightsizing • Other future development neutral items • Community Development Policy Actions • Affordable Housing Certificates Program • Develop Financial Resources for Construction, Expiring Deed Restrictions & Land Banking • APCHA Policy Actions to increase numbers of available units 52 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 5CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 4 INTRODUCTION With approximately 3,200 deed restricted affordable homes in the Aspen/Pitkin County area, our affordable housing programs are the envy of every ski town in the US. The forethought of elected officials to begin investing in affordable housing in the 1970s and their tenacious commitment to it since that time has resulted in a vibrant, lived-in community. Interspersed throughout the community, these 3,200 homes have helped the Aspen community fight the adverse effects of a historic rise in housing costs, yet we are struggling to now keep up with the market shift in utilization of many homes from residential to commercial in the form of short term rentals. The historic and current day support for affordable housing by Aspenites of all economic strata remains strong. This high level of community support is evidenced by voter-supported funding of the affordable housing program and the fierceness with which the community defends this valuable and essential asset. Compared to our peer ski town communities, we are fortunate to have this legacy of success with the development of affordable housing. Yet, in the present context, several intersecting factors have created a scenario that leaves the community challenged in sustaining important aspects of our economic and social fabric. In August of 2021, the Aspen City Council established three Priority Goals, with Affordable Housing being one of those. The adopted Goal Resolution language set out five steps to accomplish this goal, with the first being the December 2021 Aspen City Council Housing Retreat and the second being this output of that retreat, the Affordable Housing Strategic Plan. The City Council made clear their intent for this Affordable Housing Strategic Plan to be more than an aspirational document; they wanted a plan that is actionable. Accordingly, this plan prioritizes a series of actions to happen in the next five years that can have a significant and positive impact on the quantity of units and overall sustainability of our community’s affordable housing program. The Aspen City Council has and will continue to be committed to addressing the need for more affordable housing – and, as they have stated clearly, “We can’t do it alone.” To solve this challenge, we will need every tool available to us and we’ll need every partner to do their part. Thanks to the team who came together to develop this plan (in alphabetical order): Ben Anderson Chris Everson Diane Foster Matthew Gillen Ron LeBlanc Scott Miller Sara Ott Pete Strecker Phillip Supino ASPEN CITY COUNCIL’S DIRECTION & IDEAS ARE MEMORIALIZED IN THIS PLAN: Mayor Torre — Rachel Richards — Ward Hauenstein — Skippy Mesirow — John Doyle City Of Aspen Affordable Housing Strategic Plan _____________________________________________________________________6 What Is The Housing Strategic Plan Goal? .......................................................................................................................6 How Will The Goals Of The Plan Be Achieved? ..............................................................................................................6 A Focus On Action ......................................................................................................................................................................7 Pillars Of The Strategic Plan ...................................................................................................................................................8 Strategic Focus Areas ................................................................................................................................................................8 For Whom Is Affordable Housing Intended? ....................................................................................................................9 Where Will New Units Be Located? .....................................................................................................................................9 Livability Standards For Affordable Housing ....................................................................................................................9 Aspen Area Community Plan: Housing Policies & Policy Categories _________________________________________10 Looking Back, Moving Forward: Where Have We Been Successful ____________________________________________11 Looking Back, Moving Forward: What Can We Do Better In The Future ____________________________________12 Council’s Support Of Outcomes ..........................................................................................................................................12 Assessing The Need For Affordable Housing In Our Community ______________________________________________13 Summary Of Already-Completed Assessments .............................................................................................................13 Addition Of Updated Data That Informs The Needs ...................................................................................................13 Community Support Of The Need For Affordable Housing .....................................................................................14 Readiness Assessment ____________________________________________________________________________________________________________15 Staffing ............................................................................................................................................................................................15 Financial Capacity on Requested Timeline ......................................................................................................................16 Swot Analysis __________________________________________________________________________________________________________________________17 Action Plan Decision Matrix _____________________________________________________________________________________________________18 City Council’s Affordable Housing Goal ___________________________________________________________________________________19 Actions __________________________________________________________________________________________________________________________________20 Replace Expiring Deed Restrictions With Permanent Deed Restrictions..... ....................................................20 Complete Lumberyard Project ..............................................................................................................................................21 Complete Burlingame Phase 3 Project .............................................................................................................................22 Community Development Policy Actions .........................................................................................................................23 Certificates Of Affordable Housing Program Enhancements .................................................................................24 Develop Financial Resources For Construction, Expiring Deed Restrictions & Land Banking .................25 Incentivize Voluntary Rightsizing.........................................................................................................................................26 Partnerships .................................................................................................................................................................................27 APCHA Compliance Actions ................................................................................................................................................28 APCHA Policy Actions To Increase Number Of Available Units ............................................................................29 APCHA Policy Actions To Improve The Sustainability Housing Inventory ........................................................30 Additional Development Neutral Program Elements...................................................................................................31 Land Banking ...............................................................................................................................................................................32 Regional Collaboration ............................................................................................................................................................33 Actions Not Currently Prioritized __________________________________________________________________________________________34 Review Process _____________________________________________________________________________________________________________________35 Appendix _______________________________________________________________________________________________________________________________36 Appendix A: Housing Chapter Of Aspen Area Community Plan ..........................................................................36 Appendix B: Community Afordable Housing And Livability ....................................................................................42 TABLE OF CONTENTS 53 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 7CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 6  The City Council will continue to evaluate, identify opportunities, plan, partner, facilitate, and leverage existing and new resources to invest in the development and maintenance of affordable housing. This will be accomplished through: (City Council Goal Resolution August 2021) CITY OF ASPEN HOUSING STRATEGIC PLAN WHAT IS THE HOUSING STRATEGIC PLAN GOAL? To provide an action plan to support the continued availability of affordable housing that is high quality, sustainable, and results in a lived-in community and a healthy workforce. City Council has set a goal of of 500 affordable housing units within the next five years. Nearly 50% of this goal number will be achieved without new development. HOW WILL THE GOALS OF THE PLAN BE ACHIEVED? POLICY PROGRAMS PARTNERSHIPS Aspen Area Community Plan & Land Use Code encourage, support & require the creation of affordable housing within the urban growth boundary. City Council’s policy direction regarding land acquisition is to consider any and all acquisitions, including partnerships. The Affordable Housing Certificates Program has been in place since 2010 – with the first project completed in 2012. This program encourages developers to build affordable housing by providing a credit for each affordable housing unit built. That credit can then be sold to another developer who can use it to fulfill employee mitigation requirements on a separate project. The program has included new projects, conversions of freemarket units to deed-restricted, and historically designated properties. The Aspen Pitkin County Housing Authority manages the sales, rental, management and sustainability of deed restricted affordable housing. Development of affordable housing through private and public partnerships has and will continue to provide an alternative to the City-as-Developer approach. With reduced availability of freemarket housing in the Roaring Fork Valley, the need for regional affordable housing partnerships increases. Supporting continuous improvement with the APCHA program, including ensuring adequate resources Convening a City Housing Retreat Creating an affordable housing strategic plan Completing Council directed affordable housing development projects Continuing to seek additional affordable housing development opportunities Leveraging and amending regulations and policies in support of affordable housing Every member of the Aspen City Council – both before and during the December 2021 City Council Housing Retreat – identified the importance of a specific Action Plan within the Affordable Housing Strategic Plan. Every one of the fourteen items within the Action Plan have been identified by City Council as a priority action items for staff. Items that are not a priority are identified on page 33 or are not included in this plan. PRIORITY • APCHA Compliance Actions • APCHA Policy Actions to Increase Number Of Available Units • APCHA Policy Actions to Improve The Sustainability Housing Inventory • Additional Development Neutral Program Elements • Land Banking • Regional Collaboration HIGHEST PRIORITY • Replace Expiring Deed Restrictions with Permanent Deed Restrictions • Complete Lumberyard Project • Complete Burlingame Phase 3 Project TOP PRIORITY • Community Development Policy Actions • Certificates of Affordable Housing Program Enhancements • Develop Financial Resources for Construction, Expiring Deed Restrictions & Land Banking • Incentivize voluntary rightsizing • Partnerships A FOCUS ON ACTION Marolt 54 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 9CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 8 PILLARS OF THE STRATEGIC PLAN Increase the quantity of affordable housing Increase quality of new & existing affordable housing Preserve affordability Provide community housing Ensure the sustainability of the program Support the policies identified in the Aspen Area Community Plan 1 2 3 4 5 6 STRATEGIC FOCUS AREAS SAFE & LIVED-IN COMMUNITY OF CHOICE: Ensure Aspen is an attractive, diverse and safe city to live, work and visit year-round. This includes opportunities to access childcare, healthcare, housing, transit, parks, recreation and technological connectivity. COMMUNITY ENGAGEMENT: Ensure a trusted dialogue and relationship in the community that encourages participation, consensus building, and meaningful engagement. PROTECT OUR ENVIRONMENT: Ensure that policy decisions, programs and projects manage impacts to the environment, climate, and public health and well- being. SMART CUSTOMER FOCUSED GOVERNMENT: Provide value to the community by continuously improving services and processes based on feedback, data, best practices, and innovation. FISCAL HEALTH & ECONOMIC VITALITY: Promote economic sustainability of the Aspen community by advancing a healthy, diverse local economy while responsibly managing revenue streams, community investments, and financial reserves. LIVABILITY STANDARDS FOR AFFORDABLE HOUSING • environmental sustainability • accessibility • quality of construction • parking & storage • unit size • open space & trails • natural light • public transportation WHERE WILL NEW UNITS BE LOCATED? Third Priority: Outside of City limits (This is a change from prior policy) >> To allow for closer proximity to major medical centers >> Partnerships with Pitkin County >> Other regional partnerships FOR WHOM IS AFFORDABLE HOUSING INTENDED? Affordable Housing in the Aspen area is both workforce housing and community housing. The Housing Vision statement in the Aspen Area Community Plan (AACP) makes this clear: We believe that a strong and diverse year-round community and a viable and healthy local workforce are fundamental cornerstones for the sustainability of the Aspen Area community. The AACP cites the benefits of affordable housing to the Aspen community; it “helps to ensure a vital, demographically diverse year-round community” made up of “a healthy mix of people, including singles, families and seniors.” While affordable housing supports the community’s workforce, according to the Mission Statement in the Aspen Pitkin County Housing Authority’s Regulations, affordable housing is also intended for retirees and people with disabilities who have been actively employed within Pitkin County prior to retirement and/or disability. 1 2 3 Top Priority: Within the roundabout, including in the Core Second Priority: Within the Urban Growth Boundary Housing developments should endeavor to balance the principles of community, livability and quality against impacts such as unreasonable levels of cost and construction activity intrusion. Housing structures should utilize land as efficiently as possible and should seek construction efficiencies to levels that do not sacrifice livability beyond levels that are not consistent with these goals. Architecture should be sensitive to neighborhood context to the extent possible while achieving these goals. A myriad of design elements all combine to make a development livable. As discussed further in Appendix B, these elements include, but are not limited to: 55 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 11CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 10 ASPEN AREA COMMUNITY PLAN (AACP): Housing Policies & Policy Categories The policies outlined in the Housing chapter and related housing mitigation policies in the Managing Growth for Community & Economic Sustainability chapter are intended to meet these challenges as the community continues to provide affordable housing. A full copy of the Housing section of the Aspen Area Community Plan, pages 36-41, can be found in Appendix A. At the same time, the 2012 AACP calls for further research on the physical limits to development in the form of ultimate build-out, projected future impacts related to job generation, demographic trends, the conversion of local free market homes and other factors. This kind of statistical analysis will help inform future decision-making and goal-setting in a more meaningful way. This plan emphasizes the need to spread accountability and responsibility for providing affordable housing units beyond the City and County governmental structures, and continuing to pursue affordable housing projects on available public land through a transparent and accountable public process. While past plans have supported "buy-down" alternatives, there has been little comprehensive effort in this regard. A "buy-down" program may be an expensive proposition, but this plan calls for exploring it more thoroughly. The idea is to finally determine if the community is willing to pay the price for providing long-term affordable housing by converting existing free market homes, and/or affordable housing, rather than building new homes. Little Ajax (Source: 2012 Aspen Area Community Plan) LOOKING BACK, MOVING FORWARD: Where have we been successful? With a total of approximately 3,200 deed restricted units within the Aspen/Pitkin County area, 72% (2,303) of which are located within Aspen City limits, this area is home to what is likely the largest affordable housing program in the nation on a per capita basis. In the early 1970s, responding to a loss of free-market employee housing, Pitkin County and the City of Aspen started separate housing programs. Early recognition of the problem and immediate action and sustained investment has created a housing program that is not only the envy of every ski town, it has been the key to maintaining the soul of the community. In 1982 Aspen and Pitkin County joined together to form the Aspen Pitkin County Housing Authority. The City and County jointly fund this program that is now operating under the Sixth Amended and Restated Intergovernmental Agreement, signed in May 2019. Importantly, and unlike some other western ski resort communities, the Aspen community has consistently supported affordable housing through both the 1% Housing Real Estate Transfer Tax and 45% of the .45% Housing and Day Care Sales Tax. These funds have supported the City in the role of developer — although private sector companies are hired to build the units— and have also allowed the City to join with private sector developers to build new affordable housing units. The aforementioned housing policies implemented through the Land Use Code, such as the Affordable Housing Credits Program and the Growth Management Quota System, have also resulted in new affordable housing unit generation. COMPLETED PUBLIC PROJECTS: 2000 - 2021 YEAR FACILITY UNITS OWN/RENT 2000 Snyder 15 Own 2001 7th and Main 12 Own 2002 Truscott II 87 Rent 2005 Annie Mitchell 39 Own 2006 Little Ajax 14 Own 2007 Burlingame Ranch I 91 Own 2015 Burlingame Ranch II 86 Own 2020 802 West Main 10 Rent 2020 517 Park Circle 11 Rent 2021 488 Castle Creek 24 Rent TOTAL COMPLETED 389 257 Own/ 132 Rent TOTAL FTEs 840 FTEs: Number of full time employees housed GENERAL RESIDENTIAL DATA (WITHIN THE CITY OF ASPEN) YEAR 2000 2010 2020 TOTAL HOUSEHOLDS 4,354 5,929 6,197 % CHANGE 2000-2010 // 36.2% 2010-2020 // 4.5% OCCUPIED HOUSEHOLDS 2,903 3,516 3,540 % CHANGE 2000-2010 // 21.1%% 2010-2020 // 0.7% VACANT HOUSEHOLDS 1,451 2,413 2,657 % CHANGE 2000-2010 // 66.4% 2010-2020 // 10.1% % OF VACANT UNITS (free market and affordable combined)33%41%43% Source: Colorado State Demographer’s Office compiled decennial US Census Data from 2000-2020; and APCHA data derived from HomeTrek. Deed Restricted APCHA Units in COA (Source: APCHA)Total: 2,303 Free-Market Units Total from Census less APCHA units Total: 3,894 % of Vacant Free-Market Units (assuming 100% of APCHA units are occupied)68% 56 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 13CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 12 LOOKING BACK, MOVING FORWARD: What can we do better in the future At its December 2021 City Council Housing Retreat, the Council identified what has been done well and what could be done better in the future: YEAR FACILITY UNITS OWN/RENT *2022 Burlingame Ranch III 79 Own **2024-2035 Lumberyard 310 2/3 Rent, 1/3 Own TOTAL In Process 389 177 Own, 212 Rent TOTAL FTEs 780 * Currently under construction ** Currently in planning, subject to change COUNCIL’S SUPPORT OF OUTCOMES When the City is the developer in an affordable housing project, the City Council has a significant role in the design and development of that project. During the December 2021 City of Aspen Housing Retreat, the City Council put forward the following statements in support of successful project outcomes: PUBLIC PROJECTS CURRENTLY IN PROGRESS Maintain the quality of the community through sustainability and have the courage and political will to preserve the community Ensure community understanding of why certain actions are being taken and help the community to understand the 20-year outcomes. Better organize and articulate priorities Make improvements to existing programs, including better use of existing housing stock and utilizing unused bedrooms already built Preservation and restoration of existing housing Adding housing without construction when possible Developing voluntary programming around retirees and seniors still in housing by creating a better situation for them; provide incentives to rightsize Staff will be supported with the resources when they are needed City Council will take full ownership if we don’t succeed City Council will not change direction Council members commit to expressing concerns to staff ahead of time Trust and have patience with staff Lead with a public service heart Burlingame ASSESSING THE NEED FOR AFFORDABLE HOUSING IN OUR COMMUNITY SUMMARY OF ALREADY-COMPLETED ASSESSMENTS 2012 NEEDS ASSESSMENT: In 2012, staff prepared a strategic review of affordable housing document for a joint City/ County housing work session which occurred in September of 2012. The 2012 strategic review hypothesized that from 2012 to 2022, over 650 new housing units would be needed to overcome the forces of job growth, gentrification, and retirement. 2019 NEEDS ASSESSMENT: The 2019 Greater Roaring Fork Regional Housing Study suggested that the need for affordable housing units in the Aspen-Snowmass area was greater than previously anticipated and growing. A copy of that report can be found at: https://tinyurl.com/ycpx92hh 2021 EPS LUMBERYARD DEMOGRAPHIC AND MARKET ASSESSMENT: To prepare for the City’s Lumberyard affordable housing development, in 2021 the City of Aspen commissioned the Lumberyard Demographic and Market Assessment which found that the Roaring Fork Valley is losing households in APCHA income categories 1 (up to 50% AMI) and 2 (51- 85% AMI) and that most of the job growth in Aspen and Pitkin County is in APCHA income categories 2 (51-85% AMI) and 3 (86-130% AMI). The 2021 Lumberyard Demographic and Market Assessment goes on to suggest that rental units should be created primarily in APCHA income category 2 (38%), followed closely by category 3 (33%) and then category 1 (22%), and with a few rental units in category 4 (7%). The 2021 study also suggests that ownership units should be created primarily in APCHA income category 3 (34%), followed by categories 4 (26%) and 2 (23%) while providing some units in category 5 (17%). A similar income mix should be considered for the 79 units at Burlingame Ranch Phase III which will be available for sale in in the Fall of 2022. 2021 EMPLOYMENT DATA The 2021 EPS study also showed 1,668 new jobs in Pitkin County between 2010 and 2019. These jobs were added primarily by the tourism-related job sectors of Accommodations, Food Service, Arts and Recreation and Retail Trade. 39% of job growth was under 80% of Pitkin County Area Median Income (AMI) and an additional 35% fell between between 80% and 120% of AMI. EPS then applied an average of 1.6 earners per household and then converted that job growth to APCHA's Categories, which are based on Area Median Income. The result showed the greatest job growth in Pitkin County between 2010 and 2019 was in Category 3 and then in Category 2 households. 57 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 15CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 14 COMMUNITY SUPPORT OF THE NEED FOR AFFORDABLE HOUSING One needs only to read one of the two daily newspapers or listen to the local NPR broadcast to understand the need for additional affordable housing in our community, as well as for its preservation. These observations are well supported by longitudinal empirical data. The recently published results of the 2021 Pitkin County Community Survey also highlighted the community interest in affordable housing: “Respondents were asked to identify County services and initiatives provided by the County that they thought should receive the most emphasis, from County leaders, over the next two years. Forty-nine percent (49.4%) of respondents selected the County’s efforts to address affordable housing, including quality and quantity, as one of the most important services for the County to provide.” >>> https://tinyurl.com/3tdze9z4 The 2018 City of Aspen Resident Survey cited “Ensuring the availability of adequate workforce housing at a reasonable cost to rent/purchase” as an essential area for the City government to take action, falling just behind protecting the quality and quantity of water in the Roaring Fork River. >>> https://tinyurl.com/bddzm337 Similar results are seen in the 2016 Resident Survey, where “Ensuring the availability of adequate workforce housing at a reasonable cost to rent/purchase” again fell just behind Roaring Fork River water quality and quantity concerns, but tied with “Managing traffic in town more effectively” for third place. >>> https://tinyurl.com/yucw4wru The 2015 Resident Survey did not include a Roaring Fork River question. In this survey, “Ensuring the availability of adequate workforce housing at a reasonable cost to rent/purchase.” was the top response. >>> https://tinyurl.com/493ny3yr Burlingame Ranch 2021 Pitkin County Community Survey 2018 City of Aspen Resident Survey 2016 Resident Survey 2015 Resident Survey READINESS ASSESSMENT STAFFING Department & City’s Affordable Housing Development Fund Currently, the City of Aspen has one full time employee in the Capital Asset Department dedicated to the planning process for new affordable housing developments. Other full-time staff members from the Capital Asset Department provide construction management support during City-developed projects. Collaboration with staff from other departments is often leveraged during the planning process and may include staff from the City Manager’s and City Attorney’s offices, Finance, Community Development, Engineering, Building, Transportation, Parks, Utilities, Environmental Health and the Aspen Pitkin County Housing Authority. Funds from the City’s Affordable Housing Development Fund are otherwise typically used to staff projects as needed with third party professional and/or technical consultants on a project-by-project basis. Community Development Community Development has several staff members who focus on the development, implementation, and refinement of policies that support affordable housing development. During the 2022 Moratorium, Community Development staff will be working directly on new policies to support City Council’s affordable housing goals. As part of this work, significant analysis will be conducted that will support improvements to affordable housing efforts beyond the period of the Moratorium. APCHA Compliance: APCHA has two primary staff members who work part time on compliance, namely the Compliance, Policy & Systems Manager and APCHA’s outside attorney. APCHA’s Executive Director and Deputy Director also participate in compliance efforts. Qualifications: Two Qualification Specialists at APCHA ensure that the people who rent or purchase APCHA deed restricted property meet the requirements as defined in APCHA Regulations. APCHA Housing Sustainability: General upkeep of rental and ownership properties. • Rental housing sustainability for city-owned properties (Truscott, Aspen County Inn and Marolt), is managed by APCHA’s two-member Property Management Team and four-member Maintenance Team. • Housing sustainability for individual ownership units is a topic the APCHA Board began to address in April 2021, supported by the Assistant City Manager, APCHA Executive Director, Deputy Director and the Compliance, Systems and Policy Manager. • Housing sustainability by Home Owners Associations of condominium and other multi-family developments is a topic the APCHA Board would like to address in the future. APCHA staff will propose hiring a HOA Specialist in the future to support this effort as well as to help HOAs of APCHA deed restricted properties with capital reserve planning. City Manager’s Office The City Manager’s Office will be hiring a full time Housing Policy Analyst in the spring of 2022. Additionally, the City’s Assistant City Manager works part-time on housing topics. 58 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 17CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 16 A SWOT Analysis tool helps an organization to identify, at a high level, major internal and external Strengths, Weaknesses, Opportunities and Threats. •Strengths and Weaknesses are focused internally: What do we do well and where could we improve? What resources do we have and what resources do we need. •Opportunities and Threats are externally focused: Outside of our organization, what opportunities exist? What threats could harm our efforts? What is happening in the market that could help or hurt us? STRENGTHS • Community Support • City Council Commitment • Financial Resources • Knowledgeable Staff • 3 ,200 Affordable Housing Units • Pitkin County Partnership • Ability to hire outside private-sector resources WEAKNESSES • Maintenance Costs • Ability to access financial resources quickly • No one solution will solve the problem • Staff workload limits ability to take on new projects • Buying-down existing free-market residential and converting to affordable housing is prohibitively expensive • Highly dependent on outside expertise/ staffing OPPORTUNITIES • Land Acquisitions • Partnerships with private & public entities • Pitkin County potential for county-wide tax • Regional partnerships • Re-balance the cost to create affordable housing with the current drivers of demand for additional affordable housing THREATS • Scarcity of land • Cost of Construction • City of Aspen is sole source of funding • Increased housing costs in entire Roaring Fork Valley • Deferred maintenance and escalating cost of capital repairs in privately-owned affordable housing HOAs • Inability of affordable housing residents to move into free market units in the future • Politically motivated attempts to undermine program/redefine need HELPFUL SWOT ANALYSIS HARMFUL EXTERNALINTERNALFINANCIAL CAPACITY ON REQUESTED TIMELINE Since 2000, over $240 million in dedicated revenues has been invested into the ongoing operation and expansion of the Aspen Pitkin County Housing Authority affordable housing inventory. This includes the development of the completed projects listed above as well as funds invested in upkeep and operation of existing City-owned facilities. Funds from this revenue stream are also budgeted annually toward the operation of the Aspen Pitkin County Housing Authority (APCHA), and those funds are also matched by Pitkin County. (The table to the right does not include such Pitkin County funds.) Funds have also been invested in land banking opportunities for future housing developments. Year Housing Fund Revenues 2000 $5,302,335 2001 $4,845,133 2002 $4,751,964 2003 $8,543,109 2004 $8,090,180 2005 $12,773,154 2006 $14,000,177 2007 $14,075,761 2008 $12,001,447 2009 $8,373,748 2010 $8,321,575 2011 $9,752,953 2012 $8,986,581 2013 $9,584,101 2014 $11,590,103 2015 $13,039,396 2016 $10,084,871 2017 $13,422,231 2018 $13,042,701 2019 $13,784,319 2020 $21,009,309 2021 EST $38,147,667 2000-2021 $243,808,166 Truscott 59 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 19CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 18 City Council has established a goal of 500 affordable housing units. This goal will be achieved: • During the 2022-2026 timeframe; • Within the City of Aspen’s Urban Growth Boundary; • Can be an affordable housing unit achieved through either through development neutral means or through new development; and • Includes units created by private sector, other public sector organizations or City of Aspen. CITY COUNCIL’S AFFORDABLE HOUSING GOAL 2022-2026 GOAL OF 500 AFFORDABLE HOUSING UNITS WITHIN THE NEXT FIVE YEARS. Approximately 50% of this goal will be achieved without new development. Category Action Item Units within 5 Years Development Neutral Replace Expiring Deed Restrictions with Permanent Deed Restrictions 200 New Development Complete Lumberyard Project 100 New Development Complete Burlingame Phase 3 Project 79 New Development Partnerships 35 Development Neutral APCHA Incentivize voluntary rightsizing or voluntary buyout 30 Policy Certificates of Affordable Housing Program Enhancements 40 Compliance & Sustainability APCHA Compliance Actions 15 The average of City Council member goal numbers by tactic totaled 499. That number was rounded up to establish the affordable housing goal: GOAL OF 500 AFFORDABLE HOUSING UNITS WITHIN THE NEXT FIVE YEARS. Approximately half of the goal will be achieved without new development. ACTION PLAN DECISION MATRIX Ajax Apartments Weight on a scale from 1 to 5, where 5 is high 5 3 4 4 5 Category Action Item Development Neutral Replace Expiring Deed Restrictions with Permanent Deed Restrictions 4 5 4 5 5 23 96 1 New Development Complete Lumberyard Project 5 4 3 4 3 19 80 2 New Development Complete Burlingame Phase 3 Project 4 3 2 4 5 18 78 3 Policy Community Development Policy Actions 3 4 5 5 2 19 77 4 Policy Certificates of Affordable Housing Program Enhancements 3 4 5 5 2 19 77 5 Policy Develop Financial Resources for Construction, Expiring Deed Restrictions & Land Banking 3 4 5 5 2 19 77 6 Development Neutral APCHA Incentivized voluntary rightsizing or voluntary buyout 3 5 4 5 2 19 76 7 New Development Partnerships 2 4 4 5 3 18 73 8 Compliance & Sustainability APCHA Compliance Actions 1 4 5 5 2 17 67 9 Policy APCHA Policy Actions to increase number of available units 1 4 5 5 1 16 62 10 Compliance & Sustainability APCHA Policy Actions to improve the sustainability housing inventory 1 4 5 5 1 16 62 11 Development Neutral Additional Development Neutral Program Elements 3 4 1 5 2 15 61 12 New Development Land Banking 5 2 1 5 1 14 60 13 New Development Regional Collaboration 2 1 3 4 2 12 51 14Quantity of Affordable Housing UnitsProximity to Services Lower Cost: Most efficient use of land & dollarsSupports AACPHow quickly AF units will be realizedRaw ScoreWeighted Score Rank60 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 21CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 20 ACTION: Complete Lumberyard Project ACTION ITEM OWNERS Scott Miller & Chris Everson OVERVIEW The City of Aspen’s Lumberyard affordable housing project site is located just south of the Aspen airport business center on the east side of Colorado state highway 82. The City anticipated the development of affordable housing in the area of the current project site and purchased part of the site in 2007. Later in 2020, the City purchased the 3-acre Aspen Mini Storage property, bringing the total project site area to about 10.5 acres. In 2019, Aspen City Council directed the start of a community outreach and conceptual design process which included a process of community engagement and feedback to help inform the design process. The 2019 outreach and conceptual design effort helped to establish that the City should provide a variety of unit types, serving a mix of demographics, and that the site is appropriate for larger buildings and potentially higher density than may be appropriate elsewhere. Since parking is challenging at the airport business center, there was a sentiment that the development should be careful not to make the parking challenge worse by under-parking any development at the Lumberyard site. It was also decided that childcare is needed in the community and may be appropriate at this site The conceptual design effort studied unit counts ranging from 140 units up to 500+ units, and given the affordable housing crisis in Aspen, City Council set their aim at 310 units of affordable housing to be designed for the site. In order to accommodate the higher-than-usual density for the site, and to mitigate the impacts of the development to create a livable neighborhood, it was necessary to explore the use of underground parking and 4-story building massing. In late 2020, the project team presented a conceptual master plan with 310 units and 100% underground parking. Prior to beginning a schematic design process, Aspen City Council had concerns about impacts of 100% underground parking, building spacing, height, orientation and highway and airport noise. These concerns and much more are currently being reviewed through a process of community engagement and City Council feedback, with Aspen City Council weighing in on the evaluation of four potential site arrangements. The project aims to create 200+ rental units and 100+ ownership units for the purpose of housing local community workforce, qualified based on the Aspen Pitkin County Housing Authority regulations. To be successful, the project effort will bring together necessary funding to begin construction of access and infrastructure at the project site in 2024, with phases of housing development to follow thereafter. With the continued schematic design process ongoing, a development application is anticipated in mid-2022 and the land use approval process will be pursued at that time. In early April 2022, the Aspen City Council decided to make the Lumberyard a more livable community by reducing the unit number to 266, however that rightsizing will only reduce the bedroom count by twelve. ESTIMATED TIMELINE 2022: Complete Schematic Design, Submit Development Application for Approval Process 2023: PD Recording, Construction Documents, Building Permit Application Process 2024: Target for Access & Infrastructure Construction Start 2025: Target for First Phase of Housing Construction to Start 2027: Target for Occupancy of First Phase of Affordable Housing 2028+: Remaining Phases of Housing Construction and Occupancy TBD HOW THIS ACTION INCREASES THE NUMBER The Lumberyard Project is anticipated to yield approximately 310 affordable housing units CONNECTION TO AACP The creation of affordable housing in the Aspen area reduces pressures on the valley-wide transportation system by providing housing opportunities for local workforce nearer to where they work and reduces the amount of time spent commuting for workforce, significantly improving quality of life. This effort similarly reduces air quality impacts associated by reducing total commuter miles. New Development ACTION: Replace Expiring Deed Restrictions with Permanent Deed Restrictions ACTION ITEM OWNERS Scott Miller, Chris Everson, Pete Strecker, Matthew Gillen OVERVIEW There are hundreds of deed restrictions with a sunset clause based on some triggering event in the future. When those deed restrictions expire, they will be gone forever. The goal should be to preserve the deed restriction permanently and provide for the preservation of the integrity of the housing unit associated with that deed restriction. After identifying all known expiring deed restrictions, several tools for preservation of those deed restrictions should be identified and the pros and cons of each one explored. Those tools include: • Purchase the deed restriction and re-write the terms. • Negotiate a trade with the owner of that deed restriction for something of value. • Enforce existing land use code, requiring replacement of some deed restrictions. • Legislate new land use code, requiring replacement of some or all deed restrictions. • Council and staff then need to actively pursue a strategy for implementing these tools on an as-needed basis as opportunities present themselves. ESTIMATED TIMELINE Spring 2022: Update the inventory expiring deed restrictions. Summer 2022: Council worksession to discuss recent attempts to preserve deed restrictions & explore the list of possible tools. Summer 2022: Include the identified tools into the Housing Strategic Plan. Fall/Winter 2022: Land Use Code (LUC) updates, in coordination with other potential amendments to the LUC. There is a high likelihood that other actions will be necessary beyond changes to LUC. HOW THIS ACTION INCREASES THE NUMBER By preserving existing deed-restriction now, no ground will be lost. We will not need to replace these units with new units simply to get back to the status quo. CONNECTION TO AACP The AACP states that “The provision of affordable housing remains important” but, “we cannot build our way out of this challenge.” Preserving existing deed-restricted housing stock eliminates the need for entitling and building new deed-restricted housing on a one-to-one ratio. To the extent that this can be accomplished, this saves the community development dollars and the environmental impacts of construction. Development Neutral 61 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 23CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 22 Community Development works continually to better coordinate the AACP and the LUC in the creation of affordable housing development opportunities. During the 2022 Moratorium, staff will work directly on several affordable housing- related improvements to the LUC. The overview below identifies potential policy changes to be evaluated and proposed during the Moratorium and beyond. Additionally, Community Development and APCHA will work collaboratively on a number of these items. OVERVIEW • The Land Use Code (LUC) is the mechanism for exacting housing mitigation (units, fees, credits) from residential, lodge, and commercial development activities. In the GMQS standards, the creation of FTEs from development activities is the basis for the system of private sector affordable housing (AH) development. • There are numerous tools available to ComDev to alter the regulatory, development, and finance landscape to deliver additional affordable housing to the community, including: • Alter zoning standards to permit more density, intensity, and available land for AH development within the City Limits. • Create an AH overlay zone over appropriate zone districts that allows for AH development where applied and with specific standards. • Increase employee generation and mitigation amounts to require more AH from private development. • Require or incentivize on-site AH development for certain project and use types. • Restructure the GMQS to decouple AH FTE generation, unit creation, and fee extraction from development. Assess a fee or tax or certain uses to generate revenue for AH development, buy-down programs, land acquisition, and AH development subsidies. • Alter development review processes to streamline AH development reviews that meet specific standards. • Revise development fees to lower costs to AH development. • Create an impact fee for certain uses or development types which creates a revenue stream to offer financial subsidies for private sector AH development. • Affordable Housing by Right in Every Zone • In addition to the LUC, the AACP is another key tool for encouraging more AH development over time. The next AACP update could include the following to ensure more AH is developed: • Identify, annex (as necessary), and zone specific lands within the UGB for AH development. • Tie utilities extension policies outside the City Limits and existing service area to AH development standards. • Create policies for the UGB which preclude development of lands within the UGB for uses other than or prioritizing AH. • Create policies tying transit MMLOS and transportation network service extensions to AH development standards. • Create policies identifying lands in the UGB for AH-focused TOD developments. • Adopt clearly articulated land banking policies targeting specific properties in the UGB appropriate for acquisition and AH development. ACTION: Summary of Community Development Policy Recommendations ACTION ITEM OWNERS Phillip Supino & Ben Anderson ESTIMATED TIMELINE Once work on the moratorium is complete, Community Development staff will revisit this Action Item to provide a more robust plan. HOW THIS ACTION INCREASES THE NUMBER By ensuring the City’s regulations, policies, and development and impact fees extract AH units and revenue commensurate with the employment generation and community housing impacts. Further, by leveraging regulatory processes and police powers to ensure the community gets the development needed to achieve adopted City policy. CONNECTION TO AACP The following AACP statements (among others) support this action item. I.1. Achieve sustainable growth practices to ensure the long-term viability and stability of our community and diverse visitor-based economy. VII.1. Study and quantify all impacts that are directly related to all types of development. VII.2. Ensure that all new development and redevelopment mitigates all reasonable, directly related impacts. VIII.1. Restore public confidence in the development process. VIII.2. Create certainty in zoning and the land use process. II.5. Redefine and improve our buy-down policy of re-using existing housing inventory. III.2. Promote broader support and involvement in the creation of non-mitigation Affordable housing, including public-private partnerships. IV.2. All affordable housing must be located within the Urban Growth Boundary. IV.3. On-site housing mitigation is preferred. IV.5. The design of new affordable housing should optimize density while demonstrating compatibility with the massing, scale, and character of the neighborhood. Policy ACTION: Complete Burlingame Phase 3 ACTION ITEM OWNERS Scott Miller & Chris Everson OVERVIEW Two prior phases have been completed, with a total of 177 affordable units at Burlingame Ranch. This thriving neighborhood is home to a diverse working population including many families and children. The third phase of building is currently in process as of March 2021. The current construction effort will create 79 additional affordable condominium units in 8 buildings, along with associated landscape and infrastructure. There are also two remaining single-family units to be constructed before the subdivision is complete. The current construction effort utilizes factory-built modular building construction to shorten the construction timeline and to minimize on-site construction impacts to the surrounding neighborhood. Foundations are constructed on the site, and modular buildings are trucked in, lifted and carefully placed, and assembled to completion on the site. Site retaining, roadway infrastructure, and landscape work is also part of the effort. The Burlingame Ranch Phase 3 project effort will deliver 79 new affordable ownership condominiums to Aspen and Pitkin County’s inventory of affordable housing, and sales are expected to begin September 2022. The architectural character, unit sizes and interior configurations are consistent with the previous phase Phase 3 includes carport structures which allow each unit to have one assigned, covered carport parking space with attached storage closet. There will also be an equal number of uncovered surface parking spaces to reach an overall parking capacity of 2 parking spaces per unit. Terms of use for all parking spaces is expected to be governed by the new phase 3 condominium homeowner’s association, which will be set up in the same manner as the two existing condominium associations which exist at Burlingame Ranch already. Adjacent to public parks and Open Space, the landscape for phase 3 will be integrated with the prior phases and includes numerous open lawn areas, hundreds of trees and shrubs, and walkway connections to create a highly accessible community. Those internal walkway connections are also integrated into the larger trail connection plan, and the facility will utilize an irrigation system equipped with a raw water source to avoid the use of potable water for the purpose of watering. The phase 3 residential program consists of approximately 84,000 square feet of livable area within a total of 79 condominium units. The condominium units are a mix of flats and multi-level townhomes with (25) 1-bedroom flat units, (12) 2-bedroom flat units, (5) 2-bedroom townhome units, (23) 3-bedroom flat units, and (14) 3-bedroom townhome units. Unit sales for these 79 new affordable homeownership units beginning September 2022 are anticipated to be facilitated by the Aspen / Pitkin County Housing Authority (APCHA) and are expected to be done via a lottery process. The income levels to be served by these units is expected to be APCHA income categories 2 through 5, although the specific details of the number of units in each category and further details of the sales process will be more closely defined throughout the remainder of 2021 and in the coming months. ESTIMATED TIMELINE Burlingame Phase 3 units scheduled for sale fall 2022. HOW THIS ACTION INCREASES THE NUMBER Burlingame Phase 3 will result in 79 new ownership units. CONNECTION TO AACP The first phase of Burlingame Ranch affordable housing was built in 2006. While land banking is not specifically called out in the AACP as a strategy, the primary outcome of the 2007 Housing Summit was to encourage additional “land banking,” which ultimately resulted in the purchase of the BMC West property, a parcel at 488 Castle Creek Road and others. The 2008 Affordable Housing Plan evaluated 15 potential sites for affordable housing units, identifying a range of up to 685 possible housing units.” New Development 62 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 25CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 24 OVERVIEW The current cost to develop an affordable housing unit in Aspen is approximately $1 million. Having the right portfolio of funding sources and funding partners is critical to gain affordable housing units through development neutral means as well as new development. Taxes • Current tax collections dedicated to affordable housing (1.0% RETT and 45% of 0.45% sales tax) sunset 12/31/2040 (Resolution #81, 2008). • Sales tax collections have been relatively stable, with annual escalation of about 4-5% per year. RETT collections are extremely volatile & after the recent two years of record transaction and price appreciation, it is anticipated that there will be softness in the coming year(s) that will affect collections.   Debt Obligation Types of debt issuances possible depend on project: • General Obligation debt – full faith and credit of the City would back this issuance, but then would require voter approval. Will ensure best borrowing rate possible. This could allow for an ownership type product to be produced and sold, and would allow for some immediate payback into the fund when units are sold. • Tax Revenue Bonds – This would again require voter approval and would be limited in the size of the issuance to the pledged resources (tax collections generated by the sales or RETT taxes) to meet annual repayment terms. Best leveraged in conjunction with extension of existing taxes noted above, to maximize the duration for the payback term. • Certificates of Participation (COPs) can be issued if willing to pledge a city- owned asset of equal value (either can be the project itself or another asset(s)) – if it were the project, it would then mean the project would be rental units. This would likely yield a borrowing rate that is one notch below the best rate the City could achieve under a General Obligation type issuance. • Does not create new resources but rather just changes the availability of resources to achieve goals sooner (pledges future resources today and therefore not available in the future) • Debt is best for creating or acquiring new assets. It is not as good an option for preservation of deed restrictions (but is possible).   Establishment of New Sources • Exploration of new fees to supplement existing tax revenues and other affordable housing mitigation collections (also under review). • Collaborate with other jurisdictions to further a regional tax to support greater housing preservation and development. ACTION: Develop Financial Resources for New Construction, Expiring Deed Restrictions & Land Banking ACTION ITEM OWNER Pete Strecker ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER Specifics around any projects are needed to best match debt issuance options for the desired outcomes and to maximize the City’s credit rating wherever possible. Until this is developed, any debt issuance discussion is premature. New fee creation will be explored during the current land use moratorium period and options will be brought forward to Council for consideration. CONNECTION TO AACP Financing is a required component of any new affordable housing acquisition or development. Tax extensions and voter approval for debt issuance authority are subject to regular election cycles and would need to be coordinated with that in mind, plus any voter outreach effort prior to those voting periods. Fees can be adopted at any time, via the City ordinance process. This will require two readings and public review period. Policy OVERVIEW The AH Certificates program is more than a decade old. The program has included new projects, conversions of freemarket units to deed-restricted, and the use of historically designated properties – all completed by developers in the private sector. Other than the land use reviews, the City of Aspen did not have to expend any resources in the development of these units. The FTEs generated by a project are typically determined by the number of bedrooms in each unit in the project. Categories of the units are assigned in the deed-restrictions. For the completed projects, all have been created in Categories 2, 3, and 4. There have been 109 FTEs generated by completed projects to date, with another 43 – either with Land Use approval or in Land Use Review. A number of program enhancements have been identified as necessary to improve program effectiveness, respond to market dynamics, ease program administration, and ensure the maximization of the benefits to the community and developers provided by the program. Those program enhancements include: • permitting program participants to leverage outside tax benefits and financing to develop AH units for credits; • aligning the value of a credit with the real-world occupancy of an AH unit; • ensuring alignment between the value of a credit and the cost to build an AH unit; • offering City financial incentives to credits developers to lower barriers to credits projects; • improved tracking of credit market dynamics including sale price and supply and demand. • Evaluate the potential for the City to purchase credits. More detailed program analysis is needed to determine the full list of possible program enhancements which could include queue priority for building permit reviews as the potential for developer assistance or partnering. As it is included in the Land Use Code, the normal LUC amendment process is required to alter the program. Since its inception, the AH Certificates program has succeeded in motivating private sector development of non-mitigation AH units. The credits created by those developments has provided flexibility to private sector development to meet its mitigation requirements through the extinguishment of those credits. This symbiotic relationship has provided benefits to both sides of the credits equation. However, analysis is needed to determine if the credits program has resulted in more AH units that would have been required of the same private sector development activities over the same period of time. ACTION: Certificates of Affordable Housing Program Enhancements ACTION ITEM OWNERS Phillip Supino & Ben Anderson ESTIMATED TIMELINE 2022-2023: program analysis, stakeholder outreach, ordinance development, Council action HOW THIS ACTION INCREASES THE NUMBER Maximizing the effectiveness of the program will incentivize private sector AH developers to build new units, or convert free-market into deed- restricted affordable units. CONNECTION TO AACP The following AACP statements (among others) support this action item. I.1. Achieve sustainable growth practices to ensure the long-term viability and stability of our community and diverse visitor-based economy. I.5. Through good land use planning and sound decision-making, ensure that the ultimate population density of the Aspen Area does not degrade the quality of life for residents and the enjoyment of visitors. V.2. Facilitate the sustainability of essential businesses that provide basic community needs. VII.2. Ensure that all new development and redevelopment mitigates all reasonable, directly related impacts. II.1. The housing inventory should bolster our socioeconomic diversity. II.2. Affordable housing should be prepared for the growing number of retiring Aspenites. III.2. Promote broader support and involvement in the creation of non-mitigation Affordable housing, including public-private partnerships TABLE 7. AH CERTIFICATES PROJECTS SINCE 2012 Completed Projects FTEs Generated 301 W. Hyman 14 313/317 AABC 24 210 W. Main 18 518 W. Main 29.66 834 W. Hallam 18.75 815 Vine 3 829 W. Bleeker 1.25 TOTAL 109 FTEs Projects with approval or in review FTEs Proposed 611 W. Main 15.9 1020 E. Cooper 14.1 1235 E. Cooper 12.7 TOTAL 42.7 FTEs Policy 63 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 27CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 26 ACTION: Partnerships ACTION ITEM OWNERS Chris Everson & Scott Miller ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER Under the right conditions, partnerships can increase the pace of affordable housing development or redevelopment. CONNECTION TO AACP 2012 AACP appendix III.2 Promote broader support and involvement in the creation of non-mitigation Affordable housing, including public-private partnerships. (Collaborative Initiative, Incentive Program) II.2.a Establish a working group of people who represent the City, County, public agencies, and the private sector to implement the policy. Explore models of producing affordable housing units, including quasi-public housing development corporations. (I - APCHA, Housing Frontiers, City and County Managers, private sector, taxing districts) II.2.b Explore the creation of a program where the City or County would provide a tax benefit, payment or life-estate planning or other financial incentive to a free-market homeowner to include their property in the City/County’s land banking for future affordable housing. (I - City Manager, County Manager) II.2.c Explore creating a program for deed restrictions for a defined duration. (I - APCHA) II.2.d Explore the benefits of expediting specific affordable housing projects through the development and construction phase. OVERVIEW Partnerships for Affordable Housing typically fall into three categories, (1) between one or more governmental jurisdictions, (2) between a government and a non-profit, and (3) between a government and private sector organizations. The most common type of partnerships between one or more governmental jurisdictions involves a city partnering with other cities to create an entity similar to a housing authority. Some housing authorities have taxing authority, others do not (APCHA). Local governments frequently form partnerships with non-profit organizations to operate a housing program or manage a public housing project. Sometimes the non-profit organization is eligible for grants that a governmental jurisdiction is not. Non-profits also appeal to philanthropic organizations and individuals who can claim tax deductions for making contributions. Public–private partnerships (P3s or PPPs) often involve agreements among one or more government entities and one or more private sector companies to design, build, finance, operate, and/or maintain projects, facilities or operations which may be funded and operated through a partnership of government and one or more private sector companies. PPPs can be effective, but also bring challenges such as land cost, funding, connections to the free market, expiring deed restrictions, and misalignment of values. Agreements to design, build, operate and maintain can be complex and can be effort- intense to put in place and may incur significant legal fees due to the need to hire attorneys to write complex, binding legal agreements which include arrangements and terms that require certain obligations and guarantee and secure the cash flows and involve outside funding mechanisms as well as management terms. But PPPs can bring some benefits to the development process. Project risks can be transferred to private partners, and greater price and schedule certainty can be achieved. There can be opportunity for innovative design and construction techniques, and public funds can be freed up for other projects or purposes. These potential benefits come with limitations such as increased financing costs, limited flexibility and often few bidders to partner with on such projects. The amount of effort and/or risk taken on by a government or quasi-government entity may be modified by including more or less of a role in the service or facility being created. A PPP may be created so that the government or private sector partners take on more or less of the work to create the service or facility sought. Risks and/or activities transferred in PPP Agreements may include design, construction, financing, operations, maintenance and may even include reversionary rights. Financing risks may include financing costs, inflation, design/construction risks, unforeseen project site conditions, permitting, and more. Operation and maintenance risks may include facility maintenance and operations, future unforeseen conditions, underutilization of assets, rent risks, and more. In considering where to place itself on the spectrum, public agencies need to consider questions about benefits of private sector innovation, benefits to accessing private financing, private-sector performance incentives, and other private-sector tools which public agencies may have difficulty managing. New Development No specific timeline can be established for partnerships at this point. ACTION: Incentivize voluntary rightsizing to recapture & utilize unused bedrooms in the existing inventory ACTION ITEM OWNERS Chris Everson & Matthew Gillen OVERVIEW There are potentially 400+ underutilized bedrooms within the existing inventory. Subsidies for the creation of each new bedroom can be some $150,000+ per bedroom for new development. If incentives can be provided for owners/tenants with unused bedrooms to move to a smaller unit and free up the unused bedrooms so that they may be utilized to house people, and if this can be done at a lower cost than developing new bedrooms, then this can save resources such as development dollars, staff time and the environmental impact of construction. Actions/tools needed may include: • Incentive calculation which multiplies the fee in lieu at the category of the bedroom being traded in by the number of FTE slots being freed up and adjusting for depreciation. The amount of the incentive should be less than the subsidy of developing a new bedroom. • The household which is rightsizing may apply their incentive, which is provided from the 150 Fund, to the purchase or rental of an existing or new unit, when available, and will receive lottery priority to do so. • Research and inventory specific units with vacant bedrooms and communicate incentive to owners/tenants Draft policy for implementation may include: • Allow priority in lottery for re-location of target households, target households should be able to use their priority to move to an existing or new smaller unit as those come available. • Implement policy with approval from APCHA board and City Council (for use of 150 funds) • Prepare incentive offers and agreements, target specific households for solicitation of incentive • Possibly of offering the rightsizing household the ability to qualify using their original category or current category, whichever is lower • Evaluate the potential use of the Affordable Housing Certificates program ESTIMATED TIMELINE Spring/Summer 2022: Research and inventory specific units with unutilized bedrooms Spring/Summer 2022: Draft policy for implementation - Include incentive calculation methodology and priority in lottery for re-sales and available rentals for re-location of target households, target households should be able to utilize their rightsizing incentive for a move to an available existing (smaller) unit or a newly developed (smaller) unit as those come available Summer/Fall 2022: Discussions with APCHA Board & Aspen City Council Winter 2022/2023: Implement policy with approval from APCHA board and City Council (for use of 150 funds) Winter/Spring 2023: Prepare incentive offers and target those specific households for solicitation of incentive HOW THIS ACTION INCREASES THE NUMBER By incentivizing rightsizing to recapture and utilize unused bedrooms in the existing inventory, we can maximize the utilization of the existing housing stock. CONNECTION TO AACP The AACP states, “Deed-restricted housing units should be utilized to the maximum degree possible.” For every unused bedroom that can be recaptured and utilized, this saves the community development dollars, staff time and the environmental impact of construction. Development Neutral 64 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 29CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 28 OVERVIEW APCHA has a responsibility to maximize value to the community and efficiency and impact of APCHA housing. A simple measure of that impact is ensuring that APCHA houses the maximum number of individuals possible in the available housing units. Such a simple measure however, does not take into account the wishes, goals and needs of APCHA residents, for whose benefit APCHA properties were constructed. People’s needs and desires change over the years, thus APCHA must seek voluntary, flexible, incentivized programs to maximize occupancy in APCHA units. • Maximum age of Dependent: In November 2021 APCHA lowered the maximum age of a dependent from 24 to 19 in the employee housing regulations, to free up space previously used by adult dependents. • Monitoring “Excess” Units: Through the new HomeTrek system APCHA can now better monitor and assess unit usage. • “Buy-Down/Right Sizing”: The APCHA board will examine possible programs to incentivize people, voluntarily, to move to small units, after, for example retirement. • In Complex Bidding: Currently bidders in the same housing complex have a priority over outside bidders. This policy is an effort to sustain community ties. ACTION: Potential APCHA Policy Actions to increase number of available units ACTION ITEM OWNER Matthew Gillen ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER By providing residents who have outgrown their properties an incentive – and importantly no disincentives -- those residents may voluntarily want to move to another unit. CONNECTION TO AACP The plan clearly says: “All deed-restricted housing units should be utilized to the maximum degree possible.” These are ongoing policy actions, some of which have recently been implemented – such as the Dependent Age – and others are still under development or under consideration by the APCHA Board. Policy OVERVIEW APCHA has a compliance program to ensure affordable housing units are housing people who qualify with APCHA’s rules and regulations, as created by APCHA’s Board of Director. Concurrently, APCHA fully supports keeping qualified people in their units. APCHA’s compliance process starts with qualifications. APCHA is continually seeking to improve performance to ensure that qualified buyers and renters receive all due consideration during the qualification process, and that unqualified applicants do not proceed in the process and are clearly and transparently informed. Similarly, APCHA residents must comply with APCHA regulations, including but not limited to, residency and work qualifications. It is APCHA’s responsibility to the Aspen community to resolve noncompliance fairly and swiftly. • Automated identification of violations: APCHA cross references the list of all APCHA property with the City’s short term rental database. • Investigations: While the qualification process is rigorous and requires income and asset documentation similar to what is required when applying for a home mortgage, there are rare instances where a renter or owner has violated the terms of their deed restriction, such as posting their unit on a Short Term Rental website or putting their APCHA unit into a Trust. APCHA staff work with an outside attorney to conduct investigations of possible deed restriction violations. • Voluntary reporting of violations: “Report a Concern” is a button on APCHA’s website homepage. This allows members of the community to notify APCHA of violations. Importantly, it can be difficult for APCHA to investigate some compliance cases if the reporting individual is anonymous. • Hearing Officer: APCHA has hired and outside hearing officer to resolve compliance cases where needed. • Outreach and Communication: The best way to maintain compliance is education. APCHA is revamping its communication and outreach strategies with an emphasis on interactive, accessible forums and education. ACTION: APCHA Compliance Actions ACTION ITEM OWNER Matthew Gillen ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER Compliance actions are important because they ensure that affordable housing units are being occupied by individuals who meet the qualifications as outlined in the APCHA Regulations. Because Compliance is a handled on a case by case basis and it time intensive, it does not result in a significant increase in available units. CONNECTION TO AACP The plan says, “all deed-restricted housing units should be utilized to the maximum degree possible”, which includes ensuring that units are used by qualified residents. This is an ongoing effort. Compliance & Sustainability 65 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 31CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 30 OVERVIEW This program has not yet been fully fleshed out. Staff from multiple departments, including and importantly, Community Development, will need to work on this post moratorium. The development neutral program will pursue two different paths. First, policies and investments will be explored that would lead to the conversion of existing free-market units into deed-restricted affordable units. Second, the potential of new streams of revenue form currently unmitigated economic activities and the high value of real estate will be evaluated. The revenue would mitigate impacts to the community from real estate speculation, development, and resulting demands for services. The development neutral program supports of number of complimentary policies, including promoting appropriate residential density, re-using and sustaining existing buildings, mixing free-market and AH units within neighborhoods, and requiring development to mitigate for its impacts. Specifically on the topic of “buy-downs”/ purchase of free market property for the purpose of converting to affordable housing: While past plans have supported “buy-down” alternatives, there has been little comprehensive effort in this regard. A “buy-down” program may be an expensive proposition, but this plan calls for exploring it more thoroughly. The idea is to finally determine if the community is willing to pay the price for providing long-term affordable housing by converting existing free market homes, and or affordable housing, rather than building new homes. This type of program has two significant cost-related challenges: 1. Purchase of free market residential property is typically 1.5X the cost of developing new residential property, and 2. Converting purchased free market residential property to practical, usable affordable housing will add additional cost to this effort and could cause the purchase/conversion process to cost 3X to 4X that of developing new affordable housing. It is unlikely that this could be accomplished at any meaningful scale without a 3- to 5-fold increase to the current affordable housing tax revenues. ACTION: Additional Development Neutral Program Elements ACTION ITEM OWNERS Phillip Supino & Pete Strecker HOW THIS ACTION INCREASES THE NUMBER By exacting taxes to generate new revenue, the City will increase funds available to purchase free market units to bring into the AH system. CONNECTION TO AACP The following AACP statements (among others) support this action item. I.1. Achieve sustainable growth practices to ensure the long-term viability and stability of our community and diverse visitor-based economy. I.5. Through good land use planning and sound decision-making, ensure that the ultimate population density of the Aspen Area does not degrade the quality of life for residents and the enjoyment of visitors. II.1. The housing inventory should bolster our socioeconomic diversity. II.5. Redefine and improve our buy-down policy of re- using existing housing inventory. III.2. Promote broader support and involvement in the creation of non-mitigation Affordable housing, including public-private partnerships. IV.2. All affordable housing must be located within the Urban Growth Boundary. IV.3. On-site housing mitigation is preferred. IV.5. The design of new affordable housing should optimize density while demonstrating compatibility with the massing, scale, and character of the neighborhood. The current buy-down policy permits development with an AH mitigation requirement to fulfill that requirement through the purchase and deed-restriction of a free- market housing unit, adding it to the APCHA system. In the years since the creation of this policy, free market housing has increased exponentially in value. Therefore, individual buy-down units are a far less financially viable option for development with a mitigation requirement versus the purchase of AH credits or paying cash-in-lieu. Simultaneously, the community has seen a significant decrease in commercial development and, therefore, the creation of new FTEs requiring housing units as mitigation. This and other trends have reduced the prevalence of the development of on-site AH units. These dynamics have combined to decrease the number of AH units brought into the system by the private sector, relying instead on AH credits and City-built projects to deliver the bulk of new AH units in recent years. It has also increased the rate of population decline in residential neighborhoods, undermining city policies related to a healthy lived-in community, a diversity of housing types and occupants in neighborhoods, and the maximum utilization of residential housing units in town. ESTIMATED TIMELINE 2022: City Council discussion, economic analysis, case studies and legal analysis, legislative development 2023: legislative process, TABOR vote Ongoing: program development and management Development Neutral OVERVIEW With affordable housing in the Aspen area in such short supply, APCHA has a responsibility to obtain maximum impact and value from existing APCHA housing stock, while also protecting residents’ rights and benefit under APCHA regulations. Part of this effort is maintaining the sustainability and lifespan of APCHA housing stock. Each APCHA housing unit that has lifespan extended reduces the need for a new unit. Owners of APCHA deed-restricted housing units are responsible for upkeep and maintenance of their homes, but, unlike the free-market housing cannot recoup the full value (generally restricted to 10 percent), of home improvements upon sale. Coupled with the fact that, due to the scarcity of housing in the Valley, sellers find buyers willing to buy less than adequately maintained homes, there are disincentives for APCHA deed-restricted homeowners to invest and maintain their homes. Further, some APCHA units, such as mobile homes have a limited lifespan, and must be periodically replaced. Some of these actions may require public money for implementation. Actions: • Home Inspection Program prior to Resale: APCHA has difficult role while facilitating the sale of APCHA deed-restricted units, representing both the seller (and preserving equity gained during the home’s ownership period), and the buyer (ensuring the home is in acceptable or good condition to buy). In January 2022, APCHA fully implemented a home inspection program to improve transparency as buyers and sellers negotiate. • Mobile Home Pilot Program: APCHA is exploring a pilot program to assist owners of mobile homes in replacing their homes. • Sellers Standards/Capital Repairs: APCHA will continue to monitor and seek ways to maintain the standard of units sold by APCHA owners, balanced with the equity of the seller. • Additional Ten Percent Capital Improvement Cap: The APCHA Board recently voted to allow homeowners to update their deed restriction to receive an additional ten percent capital improvement allowance to support the maintenance of homes. This updated deed restriction also allows for capital improvements above the ten percent cap for approved energy and water efficiency and life/safety improvements. • Encourage HOAs to Prepare Capital Reserve Studies: Homeowner associations should be aware of their potential needs for capital improvement. APCHA will be looking at the issue of HOA Capital Reserves in the future. • Hire Contract Grant Writer: APCHA has funding and will hire a grant writer for funding sources to support individuals who want to make repairs to their APCHA Deed Restricted Property ACTION: APCHA Policy Actions to improve the sustainability of the APCHA deed restricted housing ACTION ITEM OWNERS Matthew Gillen & Diane Foster ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER Maintaining existing housing units is minimizes the need to replace or perform extensive repairs on units. CONNECTION TO AACP The Aspen Area Community plan calls for deed-restricted housing units to “be used and maintained for as long as possible, while considering functionality and obsolescence.” These are ongoing policy actions, some of which have recently been implemented – such as the Home Inspection Program – and others are still under development or under consideration by the APCHA Board. Compliance & Sustainability 66 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 33CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 32 OVERVIEW At the direction of the City Manager, City and APCHA staff have been active participants in the Roaring Fork Valley Roadmap process, facilitated by Pitkin County. The group has embraced the concept of collaboratively address the topic of workforce sustainability. In October approximated fifty stakeholders participated in a series of focus groups that included representatives from Roaring Fork Valley nonprofits, local governments and agencies and the private sector. This group recommended a specific focus on a regional affordable housing project, there was also strong support for addressing issues related to diversity, equity and inclusion as well as mental wellness. While this project is still in its early stages, there has been active and consistent participation from all of the Roaring Fork Valley local government staff, along with DOLA staff. The collective and overwhelming consensus of stakeholders that more affordable housing is needed in the Valley aligns well with City Council’s critical goal of increasing the number of affordable housing units. Concurrently, the Roaring Fork Roadmap team has been in discussions with a Housing Coalition group that initiated discussions about forming some type of more formal regional housing group. While that group had a temporary hiatus during the early part of the pandemic, the group has been meeting again to develop a plan for better regional collaboration around affordable housing. These two groups have discussed how working together and in collaboration with DOLA could yield results. Staff will keep Council updated as this project moves forward. In February and March 2022 the Aspen City Council, along with a number of other local governments in the Roaring Fork Valley, adopted an MOU in support of the creation of a Regional Housing Non-Profit. It is likely local governments from the Colorado River Basin will also join this effort Unrelated to the item above, during the December 2021 City Council Housing Retreat, the City Council expressed support for Pitkin County considering a county- wide tax to support affordable housing. The City Council has not taken, nor have they been asked for a formal position on this topic. ACTION: Regional Collaboration ACTION ITEM OWNER Diane Foster ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER Affordable housing is an issue facing all communities in the Roaring Fork Valley and beyond. Where state and federal funding for affordable housing will likely be available, a regional effort is more likely to be successful than individual localities seeking funding. CONNECTION TO AACP While the AACP encourages partnerships, the AACP is generally silent on regional collaboration Staff will provide City Council an update on progress later in 2022 New Development OVERVIEW By definition, land banking is the process of acquiring and holding land for future development, re-development, or land trade. Success requires cohesive partnerships among a variety of stakeholders, funding partners, and all levels of government, as well as confidentially. As land is a finite resource, acquiring sites for future use as affordable housing preserves future opportunities for the City to act typically in partnership with a private contractor. The investment in the land can serve as a way to secure more financing options and at more favorable terms. Land banking positions the City to take advantage of favorable market conditions. One of the challenges inherent in land banking is that it takes money away from today’s projects. Nonetheless, land banking can offer a significant benefit to future development, in the land costs are nearly always lower now than in the future. Due to the nature of property acquisition in the public sector, specific properties cannot be mentioned. Infill development alone cannot address mounting affordable housing demands. City Council’s policy direction regarding land acquisition is to consider any and all acquisitions, including partnerships. Actions: 1. Continue to seek appropriate land for land-banking. 2. Consider an incentive program for sellers ??? Dedicate housing to family name, other family incentives of value? Consider a tongue in cheek “cash for homes” marketing effort, which would probably make national news. 3. Consider creating or enabling fast-track for Council approval of potential contract to buy when needed. For example, 1.22 acres at 688 Spruce Street was purchased by a private buyer before staff could bring it to Council’s attention. Land purchase price was in range of other City projects, ended up a missed opportunity for potentially around 20 new units. 4. Consider purchase of parcels discussed with Council in executive session. Consider a means of public discussion for potential conversion of other City assets. 5. AACP Appendix III.2.b Explore the creation of a program where the City or County would provide a tax benefit, payment or life-estate planning or other financial incentive to a free-market homeowner to include their property in the City/County’s land banking for future affordable housing. (I - City Manager, County Manager) ACTION: Land Banking ACTION ITEM OWNERS Scott Miller & Chris Everson ESTIMATED TIMELINE HOW THIS ACTION INCREASES THE NUMBER The availability of additional land creates more housing opportunities, quantifying the number is very difficult. The increase of AH units is dependent on several factors: zoning, mass and scale, NIMBYism, the useful amenities available to the community, good design, incorporation of smart growth principles. CONNECTION TO AACP The AACP provides guidance with respect to: • Continuation of the Aspen Idea • Environmental Stewardship • Sustainable development • Emphasis on quality and livability • Addresses Housing and Daycare needs While land banking must be an ongoing action item, the benefits of land banking actions are not realized until the future. New Development 67 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 35CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 34 An outcome of the July 2021 City Council Retreat, City Council adopted three Critical Goals in August 2021. The Housing Critical Goal reads as follows: Increase number of Affordable Housing Units: In order to deliver an affordable housing system that is high quality, sustainable, and results in a lived-in community, Council will continue to evaluate, identify opportunities, plan, partner, facilitate, and leverage existing and new resources to invest in the development and maintenance of affordable housing. This will be accomplished through: • Convening a City Housing Retreat; • Creating an affordable housing strategic plan; • Completing Council directed affordable housing development projects; • Continuing to seek additional affordable housing development opportunities; • Leveraging and amending regulations and policies in support of affordable housing; and • Supporting continuous improvement with the APCHA program, including ensuring adequate resources. Since August 2021 Council has been presented with updates to the Housing Critical Goal and specific actions to further that goal on a regular basis at Regular Meetings where Council has approved policy, work sessions to provide staff direction on various affordable housing projects and program and through Information Only Memos. The three departments primarily responsible for delivering on the Housing Critical Goal – the Capital Asset Department, Community Development and Housing/APCHA – have all already scheduled appearances before City Council and Information Only Memos for the entire 2022 calendar year. Rather than a wholesale review of this Housing Strategic Plan, this Plan is a living document whose contents will be updated throughout the year. That being said, staff does plan to do an annual review of overall progress and make whatever modifications are necessary to the plan at that time. REVIEW PROCESS In any strategic plan that contains action items, it is also important to identify what action will not be pursued. Below is a list of action we will not undertake at this point due to one or more of the following reasons • Council asked staff NOT to pursue this strategy; and/or • Lower chance of success than other strategies These items could be pursued at a later date should Council’s policy direction change or is market conditions change. • Encourage new free market development in order to receive required affordable housing mitigation results • Vail InDeed Model – Not pursing this model because • It creates additional RO units; not the Category of units we need the most • No rental caps • No appreciation cap • Buy-Downs: Buying down existing free-market single family residential and converting to affordable housing is prohibitively expensive, given available resources and compared to the actions which have herein been prioritized. Even though Buy-Downs are not a prioritized strategy, this does not preclude entertaining offers such as a below market-rate offer to the City to buy or create a reverse mortgage for a home. ACTIONS NOT CURRENTLY PRIORITIZED 68 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 37CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 36 38 2012 Aspen Area Community Plan HousingHousing Vision We believe that a strong and diverse year-round community and a viable and healthy local workforce are fundamental cornerstones for the sustainability of the Aspen Area community. Philosophy We are committed to providing affordable housing because it supports: • A stable community that is invested in the present and future of the Aspen Area. • A reliable workforce, also resulting in greater economic sustainability. • Opportunities for people to live in close proximity to where they work. • A reduction in adverse transportation impacts. • Improved environmental sustainability. • A reduction in downvalley growth pressures. • Increased citizen participation in civic affairs, non-profit activities and recreation programs. • A better visitor experience, including an appreciation of our genuine, lights-on community. • A healthy mix of people, including singles, families and seniors. Many of the philosophical statements in the 2000 AACP still ring true today: “We believe it is important for Aspen to maintain a sense of opportunity and hope (not a guarantee) for our workforce to become vested members of the community. ... (We seek) to preserve and enhance those qualities that has made Aspen a special place by investing in our most valuable asset – people.” “Our housing policy should bolster our economic and social diversity, reinforce variety, and enhance our sense of community by integrating affordable housing into the fabric of our town. A healthy social balance includes all income ranges and types of people. Each project should endeavor to further that mix and to avoid segregation of economic and social classes ...” Living in affordable housing is not a right or a guarantee, but a privilege, carrying with it responsibilities to future generations, such as long-term maintenance and regulatory compliance. The creation of affordable housing is the responsibility of our entire community, not just government. We should continue to explore methods that spread accountability and responsibility to the private sector, local taxing districts and others. We continue to support the following statements from the 1993 and 2000 AACP: “Housing should be compatible with the scale and character of the community and should emphasize quality construction and design even if that emphasis increases [initial] costs and lessens production, [within reason].” At the same time, new construction should emphasize the use of durable and renewable materials in order to improve our environmental stewardship. We should demonstrate our commitment to future generations by providing educational outreach regarding long-term maintenance and regulatory compliance by adopting a strategic plan for long-term maintenance of publicly-owned rental properties, and for handling “unique” properties, such as those with a sunset on deed restrictions. APPENDIX A: HOUSING CHAPTER OF ASPEN AREA COMMUNITY PLAN 69 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 39CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 38 40 2012 Aspen Area Community Plan Housing What’s New in the 2012 AACP Linkages The creation of Affordable housing can help reduce pressures on the valley-wide transportation system by providing housing opportunities for our local workforce in the Aspen Area, while reducing air quality impacts associated with a commuting workforce. Affordable housing is also critical to a viable economy, and helps to ensure a vital, demographically diverse year-round community. At the same time, limited opportunities and funds mean we cannot build our way out of the housing problem, and we recognize that new affordable housing includes infrastructure costs ranging from transportation to government services, schools and other basic needs. Controlling growth and job generation can reduce the pressure to provide affordable housing. Housing Growth & Economy Transportation Community Character The re-use of philosophical language from past community plans is due largely to the long-term support in the Aspen Area for affordable housing as a critical tool to maintain a strong year-round community. Some shifts in policy direction for the 2012 AACP can be attributed to the long-term growth and maturation of the housing program, bringing greater awareness of the need for long-term capital reserves and maintenance for individually-owned and rental properties, as well as publicly-owned rental properties. Another difference in the 2012 AACP is the decision not to establish a specific number of housing units to be developed during the 10-year life of the plan. This should not be perceived as a wavering of support for affordable housing units. The plan calls for exploring the potential of a new housing unit goal, but specific research on this topic was not conducted as part of this plan. This plan focuses on the ongoing challenges of establishing and maintaining a “critical mass” of working residents. The policies outlined in the Housing chapter and related housing mitigation policies in the Managing Growth for Community & Economic Sustainability chapter are intended to meet these challenges as the community continues to provide affordable housing. At the same time, the 2012 AACP calls for further research on the physical limits to development in the form of ultimate build-out, projected future impacts related to job generation, demographic trends, the conversion of local free market homes and other factors. This kind of statistical analysis will help inform future decision-making and goal-setting in a more meaningful way. Instead, this plan emphasizes the need to spread accountability and responsibility for providing affordable housing units beyond the City and County governmental structures, and continuing to pursue affordable housing projects on available public land through a transparent and accountable public process. While past plans have supported “buy-down” alternatives, there has been little comprehensive effort in this regard. A “buy-down” program may be an expensive proposition, but this plan calls for exploring it more thoroughly. The idea is to finally determine if the community is willing to pay the price for providing long-term affordable housing by converting existing free market homes, and or affordable housing, rather than building new homes. On the Horizon As the community continues to provide affordable housing, it is important to recognize and understand future challenges. We must continue to track changes to the Colorado Common Interest Ownership Act (CCIOA) and update our housing policies on a timely basis. APCHA should vigorously promote adoption of CCIOA by existing associations, and require new associations to adopt CCIOA. Lending practices are changing, resulting in new and potentially difficult financing. 39 2012 Aspen Area Community Plan Housing At the same time, we need a new focus on the issues surrounding retirement in affordable housing, as we are on the brink of a rising retiree demographic. In addition, we should continue to provide housing that accommodates the needs of people with disabilities. The provision of affordable housing remains important due to several factors, including the continued conversion of locally-owned homes to second homes, a trend of a more costly down-valley housing market and the upcoming trend towards retirement in affordable housing. With limited vacant land in the Aspen Area and limited public funds, we cannot build our way out of this challenge. Our affordable housing program is continually encountering new crossroads that demand creative thinking, understanding and thoughtful action. What’s Changed Since 2000 Since the adoption of the 2000 AACP, a total of 652 new affordable housing units have been constructed, with another 181 approved but not yet built. By any measure, these are impressive accomplishments, but various relevant trends have continued to challenge the goal of establishing and maintaining a “critical mass” of working residents, as stated in the 2000 AACP. While the ratio of local workers living in affordable housing units increased from 25% to 32% from 2000 to 2008, the ratio of local workers living in free market homes dropped from 22% to 13%, the result of continued conversion of locally-owned free market homes to second homes. At the same time, the economic boom period of 2004 to 2007 saw a dramatic increase in the cost of downvalley land and homes, reducing opportunities for Aspen workers to find free market ownership options in the valley. While the recession has rolled back prices, this plan must assume that the economy will experience another period of prosperity during the life of the plan. In addition, the number of retirees in deed- restricted housing is estimated to jump from approximately 310 today to more than 800 in 2021. The 2007 Housing Summit considered all these factors and more. The primary outcome of the Summit was to encourage additional “land- banking,” which ultimately resulted in the purchase of the BMC West property, a parcel at 488 Castle Creek Road and others. The 2008 Affordable Housing Plan evaluated 15 potential sites for affordable housing units, identifying a range of up to 685 possible housing units. Aspen Area Housing History In the early 1970’s free- market housing that had primarily housed local employees was being demolished and redeveloped as second homes. By 1974, the City and County began addressing this trend by establishing separate affordable housing programs and 14 years later formed the joint Aspen/Pitkin County Housing Authority (APCHA). APCHA is currently funded through a City of Aspen sales tax and a Real Estate Transfer Tax (RETT). The State enacted legislation in 2001 granting Housing Authorities across the state specific powers to raise revenue through sales taxes, use taxes, an ad valorem (property) tax, and/or a development impact fee. To date, APCHA has not pursued these revenue sources. The City of Aspen has a housing sales tax, and both the City of Aspen and Pitkin County have Housing Mitigation fees. APCHA operates under the 4th Amended Intergovernmental Agreement between the City of Aspen and Pitkin County. This agreement has eliminated APCHA’s role as an active developer of workforce housing; that role has been assumed by the City of Aspen. Currently, APCHA is principally involved in the qualification, sales, and enforcement of the housing program and is involved in the oversight of over 2,800 units of deed- restricted housing. The APCHA Board of Directors alone, or in concert with other entities, suggests new policy, programmatic changes, and legislation, or makes recommendations, as required by the City, County or State. 70 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 41CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 40 42 2012 Aspen Area Community Plan Housing Policy Categories Housing Policies IV. LAND USE & ZONING IV.1. Affordable housing should be designed for the highest practical energy efficiency and livability. IV.2. All affordable housing must be located within the Urban Growth Boundary. IV.3. On-site housing mitigation is preferred. IV.4. Track trends in housing inventory and job generation to better inform public policy discussions. IV.5. The design of new affordable housing should optimize density while demonstrating compatibility with the massing, scale and character of the neighborhood. IV.6. The residents of affordable housing and free-market housing in the same neighborhood should be treated fairly, equally and consistently with regard to any restrictions or conditions on development such as parking, pet ownership, etc. V. HOUSING RULES AND REGULATIONS V.1. The rules, regulations and penalties of affordable housing should be clear, understandable and enforceable. V.2. Ensure effective management of affordable housing assets. Incentive Program, Proposed Code Amendment Proposed Code Amendment Work Program for Planning Department & APCHA, Proposed Amendment Data Needs Proposed Code Amendment Proposed Code Amendment Work Program for APCHA Work Program for APCHA 41 2012 Aspen Area Community Plan Housing Policy Categories Collaborative Initiative Collaborative Initiative, Work Program for APCHA Collaborative Initiative, Work Program for APCHA Collaborative Initiative Incentive Program, Proposed Code Amendment Housing Policies I. SUSTAINABILITY AND MAINTENANCE I.1. Affordable housing should have adequate capital reserves for major repairs and significant capital projects. I.2. Deed-restricted housing units should be utilized to the maximum degree possible. I.3. Deed-restricted housing units should be used and maintained for as long as possible, while considering functionality and obsolescence. I.4. Provide educational opportunities to potential and current homeowners regarding the rights, obligations and responsibilities of home ownership. I.5. Emphasize the use of durable and environmentally responsible materials, while recognizing the realistic lifecycle of the buildings. II. PROGRAM IMPROVEMENTS II.1. The housing inventory should bolster our socioeconomic diversity. II.2. Affordable housing should be prepared for the growing number of retiring Aspenites. II.3. Employers should participate in the creation of seasonal rental housing. II.4. Employers who provide housing for their workers through publicly-owned seasonal rental housing should assume proportionate responsibility for the maintenance and management of the facility. II.5. Redefine and improve our buy-down policy of re-using existing housing inventory. II.6. Eliminate the Accessory Dwelling Unit (ADU) program, unless mandatory occupancy is required. III. FISCAL RESPONSIBILITY III.1. Ensure fiscal responsibility regarding the development of publicly-funded housing. III.2. Promote broader support and involvement in the creation of non- mitigation Affordable housing, including public-private partnerships. Community Goal Community Goal, Work Program for APCHA Collaborative Initiative, Incentive Program Collaborative Initiative, Incentive Program Work Program for APCHA Proposed Code Amendment Collaborative Initiative Collaborative Initiative, Incentive Program 71 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 43CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 42 CONNECTION TO AACP Within the introduction of the 2012 Aspen Area Community Plan, two of the stated central themes are “Emphasize the quality and livability of affordable housing.” and “Provide for a critical mass of year-round residents.” Within the housing implementation portion of the appendix of the AACP is an implementation step that, in part, states, “Amend the Housing Guidelines to establish livability standards that promote pride of living in affordable housing.” And although the AACP also encourages area employers to participate in the creation and maintenance of seasonal rental housing, the sections shown above, along with many other such statements in the AACP, support the Housing Philosophy stated within the AACP, which aims to nurture a stable, year-round community, with a reliable workforce with an opportunity to live near where they work, and with a healthy mix of people, including singles, families and seniors. LIVABILITY AND COMMUNITY ENGAGEMENT For public affordable housing developments, the City of Aspen performs typically performs rigorous community engagement, seeking input from the community at large and neighborhood stakeholder groups. A significant portion of such community engagement is typically devoted to affordable housing elements related to livability. At each stage of the design development process, input received from the community engagement process is typically filtered through Aspen City Council. This often results in a careful balance of various priorities such as livability, quality, neighborhood impacts and project cost. And there are many more detailed project elements that require balancing as well, such as environmental sustainability, accessibility, total cost of ownership or tenancy, constructability and more. These topics are interconnected with the meaning of livability among the Aspen affordable housing community. LIVABILITY – GENERAL PRINCIPLES Goals: Housing developments should endeavor to balance the principles of community, livability and quality against impacts such as unreasonable levels of cost and construction activity intrusion. Housing structures should utilize land as efficiently as possible and should seek construction efficiencies to levels that do not sacrifice livability beyond levels that are not consistent with these goals. Architecture should be sensitive to neighborhood context to the extent possible while achieving these goals. Density: Density should be considered as more than just a number and should consider neighborhood context, available open space, amenities and other considerations related to community character. Successful housing developments have been created in Aspen with density ranging from around 7 units per acre up to nearly 80 units per acre. Quality: Quality construction should be employed to mitigate sound and vibration transmission and to promote energy efficiency. It is important to people not to feel as densely housed as they actually are, and it is possible to invest in construction quality, up to a point short of diminishing returns, to make a densely populated facility feel as livable as possible given available resources. Environmental Sustainability: Environmental sustainability standards which are consistent with community goals should be integral to the construction quality program. Investments in sustainability measures should be carefully prioritized to be consistent with housing development goals. Housing Unit Sizes: Housing for a diverse population of income levels should not discriminate livable space based on incomes. Creating equitably sized housing units of standardized sizes can create construction efficiencies and increases flexibility to transfer units among households of different income levels. The Colorado Division of Housing has established “indicators of modest but decent housing” with suggested sizes of 500 square feet for studio or efficiency units, 700 square feet for one-bedroom units, 900 square feet for two-bedroom units and 1,200 square feet for three-bedroom units. necessary and where a high level of livability is otherwise demonstrated, with reduction criteria such as significant storage space, above average natural light, efficient/flexible unit layout, site amenities including parks and open space, and above ground unit versus below ground units. APPENDIX B: COMMUNITY AFFORDABLE HOUSING AND LIVABILITY 72 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 45CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 44 facilities should meet local codes and guidelines related to “wildlife-proof” requirements and recommendations and should otherwise be consistent with wildlife management practices. Mail and transit stop facilities should attempt to keep people separated from areas which could potentially attract bears or other wildlife. Site Lighting & Facilities: Site lighting should provide safety while remaining contextually sensitive and where possible should employ the use of timers and/or sensors to be as energy efficient as possible. Guide-on principles can be equally safe and less intrusive than flooding large areas with light. External availability of water and electrical sources are amenities that tenants and/or homeowners highly appreciate. “Dark skies” and other code-related requirements and recommendations should be rigorously met. Public Transportation: Access to public transportation is a must. Reduction of daily automobile trips should be encouraged through availability of convenient, multi-modal transportation alternatives. LIVABILITY – CHECKLIST The outline below is a useful inventory of decision points for considering characteristics which affect livability. Density, Environmental Sustainability, Accessibility Family oriented vs. non-family oriented Working vs. retirement orientation Flats versus multi-level townhomes & accessibility On-grade access, stairs to get to unit, below-grade, partial below grade units Ceiling heights greater than 8 feet, 8’-6” to 9’-0 where possible Minimum bedroom size, 10 feet Storage ƒInternal to the unit, Kitchen cabinets, Laundry, Foyer/mud – front and rear, linen closets, oversize bedroom closets (upper shelves for seasonal storage), Additional unfinished areas, storage closets under stairways ƒLockable external storage, enclosed preferred to cages, proximity to unit, outdoor gear storage, bikes, kayaks, skis, snowboards, fishing, etc. Trash/recycling/compost & mail facilities ƒProximity to units, aesthetics, durability, parcel boxes, wildlife-proofing, separating trash from mail due to wildlife safety, lighting Outdoor living ƒPrivate outdoor space is preferred by most people, grill, patio, enlarged covered balconies, avoid drip through, snow barriers/trellis Parking ƒLocation on site and relationship to pedestrians, streets/alleys ƒQuantity per unit, per bedroom ƒAbove grade uncovered, above grade covered, lots, street, head-in, parallel, angle, on-site, offsite ƒGuest / visitor / service usage, loading zone ƒAccessible parking ƒProximity to unit ƒDimensions of spaces / access, geometry of getting in and out ƒIntegrated storage with parking ƒSnow removal, snow storage, haul-off, street clearing, secondary clearing Public space/recreation ƒLocation, trail, pedestrian access, on-site open site areas, landscape ƒFlexible use spaces, fencing, demarcation, open ƒChild safety, dog parks, community gardens, programmed spaces Access to public transportation ƒSecure, covered bike storage at transportation nodes The APCHA Affordable Housing Development Policy includes the following Minimum Unit Sizes and defines an “occupancy standard” based on 400 square feet per “employee”. Unit Minimum Net Sq Ft Occupancy Standard Studio 500 1.25 1-Bedroom 700 1.75 2-Bedroom 900 2.25 3-Bedroom 1,200 3.00 In practice, the occupancy standard is less of an actual counting mechanism for occupancy and more of a conversion tool and general benchmark related to the 400 square feet per “employee” standard. The APCHA Affordable Housing Development Policy allows for the reduction of unit sizes by up to 20% in cases where both necessary and where a high level of livability is otherwise demonstrated, with reduction criteria such as significant storage space, above average natural light, efficient/flexible unit layout, site amenities including parks and open space, and above ground unit versus below ground units. Accessibility: Affordable housing facilities should be accessible above and beyond code requirements where possible. Varying levels of accessible dwelling units include Type A Full Accessibility, Type B Adaptable and Type C Visitable. Type A Full Accessibility units should be included at or above code minimums, and all other unit should be Type B Adaptable where possible. Townhome units or units which otherwise include a stairway internal to the unit should be Type C Visitable, and Universal Design should be used in common area facilities. Noise and Air Quality: Locations for affordable housing should be sought which have favorable noise and air quality characteristics. For locations where noise and air quality characteristics are not without flaws, mitigation techniques should be implemented to reduce adverse impacts to reasonable levels. Pedestrian Safety and Automobile Circulation: Whenever possible, housing developments should prioritize pedestrian movement over automobile movement and pedestrian safety over automobile circulation. Community Open Space: Community open space should be created to maximize the use of available land and should be landscaped to facilitate peaceful, playful and socially interactive enjoyment with turf or low-grow grasses as well as strategically placed shrubs and trees to facilitate demarcation of areas and/or privacy where needed. A mix of non-programmed and lightly programmed areas are encouraged. Parks and Trails: Parks and trails provide community benefits and should be connected to housing developments where possible. The use of boulder retaining walls can create material cost efficiencies and can be a contextually sensitive means of retaining earth as opposed to engineered alternatives. Parking and Storage: Parking and storage are key attributes that relate to day-to-day interaction with a housing facility. Local workers may not use their cars every day, but they have a right like everyone else to keep a car in their possession, particularly because Aspen is a remotely located City. Affordable housing units do not generally afford the amount of space that suburban living in America generally affords so convenient access to a reasonable amount of storage space is a key attribute to any housing unit. Parking and storage should be located within reasonable distance to one’s housing. The use of carport structures can be an equitable means of providing covered parking without a high level of expense and can be used where needed to retain earth or serve as sound barriers from nearby sources of noise. Total Cost of Ownership: Total cost of ownership or total rent should be considered in affordable housing designs. The use of durable assemblies and materials as well as low-maintenance mechanical systems along with operational efficiency considerations such as ease of snow removal and landscaping can help keep long-term costs down. Thoughtful design for management of snow, ice, moisture and freeze/thaw conditions can eliminate the need for gutters and downspouts and can help keep maintenance costs down. Wildlife: Sensitivity to wildlife and surrounding open areas is extremely important. Trash, recycling and compost staging 73 CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 47CITY OF ASPEN 2022-2026 — Affordable Housing Strategic Plan 46 Noise ƒUnit-to-unit transmission, wall/wall, floor/ceiling, STC, IIC ƒOutdoor noise, mitigation, berms, trees, façade Lighting ƒNatural light ƒIndoor lighting ƒExterior lighting Ventilation / heating / cooling Low voltage & electric - controls, network outlets, electric outlets, cable/satellite, utility usage, lighting, etc. Laundry in unit versus common, size & fit, maintenance, availability Heating – type ƒHeat pumps (cooling?), mini splits, ducted, radiant, baseboard, cove ƒ100% electric where possible ƒCommon vs. in-unit Hot water heating – common versus in-unit, tank, tankless, efficiency, accessible location, floor drain Solar and PV accessibility/orientation, roof space for p/v, rooftop decks Pets, service animals, emotional support animals, cleanup, bags, dna testing Landscaping ƒTurf, native grasses, low-grow, low water ƒUpkeep, Irrigation ƒHose bibs ƒCommunity gardens ƒStormwater, raingardens Kitchen ƒSingle, double sinks ƒElectric appliances, refrigerator, dishwasher, disposal, range type, microwave, range hood externally vented ƒSolid countertops, island or space for dining table ƒTrash, recycling, compost ƒStorage, cabinets, soffits, natural light/windows Bathrooms ƒQuantity per unit ƒLighting ƒTubs, showers, toilets ƒStorage ƒVentilation ƒFinishes, durability, aesthetics ƒSinks, single vs. double, fixture counts, types Maintenance ƒAccess to HVAC equipment, accessible filter locations, spare filters ƒAppliances, Floor coverings NOTES 74 www.aspen.gov // 427 Rio Grande Place, Aspen, CO 81611 75