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HomeMy WebLinkAboutagenda.apz.19881011A G E N D A ASPEN PLANNING AND ZONING COMMISSION October 11, 1988 - Tuesday 4:30 P.M. Old City Council Chambers 2nd Floor City Hall SPECIAL MEETING I. COMMENTS Commissioners Planning Staff II . __- III. PUBLIC HEARING -Continued A. Displacement/Affordable Housing Code Amendments IV. ADJOURN MEETING a. cov MEMORANDUM TO: Aspen Planning and Zoning Commission FROM: Alan Richman, Planning Director RE: Affordable Housing/Displacement Code Amendments DATE: October 6, 1988 PURPOSE: Attached for your consideration is the first draft of proposed Code Amendments in response to the Administrative Delay adopted by City Council on August 30. The draft reflects the recommended approach provided to you in our memo dated September 231 which met with your general acceptance when presented on September 27. We suggest that you refer back to that memo for the rationale behind each of the proposals we have made. It is our intention that you review this draft, provide us with suggestions for changes and additions and direct us to return on October 18 with a draft Resolution. We would like to obtain your final recommendation for Council, if possible, on November 1. ANALYSIS: Following is a section -by -section synopsis of the proposed amendments. Section l: This section adds an entire new Division to Article 5, the Zone District Regulations. The new section establishes displacement requirements along the lines identified in our prior memo. The requirements apply to all demolition of multifamily residences, except those in our tourist accommodations zones (unless a residence in those zones has been used for long term rental). The standard is a 1:1 replacement ratio for units and a 50o ratio for bedrooms. Replacement is required on -site, unless the applicant meets one of several criteria permitting the unit to be replaced elsewhere within the City. Replacement must occur at the same time that the new units are to be occupied. Also included in this section is the "caretaker unit" provision, now known as "attached affordable dwelling units". When a detached residence, or duplex is demolished, each unit must be replaced on -site with an attached affordable unit. (P&Z may want to consider exempting -owner -occupied units which are rebuilt for the owner's use.) The unit must contain no less than 300 nor more than 600 sq. ft., be a studio or one bedroom unit and be attached to or within a principal residence. (P&Z may want to consider allowing the unit to be detached in lower density zones such as R-30 and RR.) The units are allowed as accessory uses in all zones and as such are exempt from density and parkin requirements, but are subject to all other dimensional requirements (FAR,' setbacks, etc.) of the zone district. Section 8: This section replaces the old detached residents and duplex sliding scale in the RMF zone district with the newer, R-6 sliding scale. , . .........:. Sections 9-11: These sections apply the R-6 sliding s to detached residential and duplex uses in the CC, C-1 andsale Office zone districts. One very interesting idea suggested by P&Z which we have not yet drafted is that of only allowing a residence to be built to some percentage of the FAR (say, 75% of the sliding scale) when it does not contain affordable housing and to 100% of the scale when it does contain affordable housing. While we find this to be an p excellent suggestion, we are unsure whether it should only apply to new development and replacement, or if it would also apply to small additions. If it is to apply to additions, pp will probably remove the ability of many owners to do remodels which involve limited expansion, assuming that many homes alrea exceed 75% of the sliding scale but are below maximum FAR. If it is to apply to replacement or new development, it will be ve difficult to draft and may not be legally sustainable. ry P&Z should also give us direction on any which you would like us to add as additional Your resolution to City Council. affordableregscover 3 economic incentives recommendations in Attachment 1 Section 1 That a new Division 7 of Article 5 be adopted to read as follows: DIVISION 7: REPLACEMENT HOUSING PROGRAM Sec. 5-701. Purpose. The City of Aspen's neighborhoods have traditionally been comprised of a mix of housing types, including those which are affordable by its working residents. However, because of Aspen's attractiveness as a resort environment, and because of the physical constraints of the upper Roaring Fork Valley, there is constant pressure for the redevelopment of older homes for tourist and second home use. Preservation of the housing inventory and provision of dispersed housing opportunities in Aspen have been long-standing planning goals of the community. Achievement of these goals will .promote a socially and economically balanced community, limit the number of employees who face a long and sometimes dangerous commute on State Highway 82, reduce the air pollution effects of employee commuting and prevent exclusion of working residents from the City's neighborhoods. In its Housing Master Plan, the City has established a goal that housing be provided by both the public and private sectors. The City, through the Housing Authority, has provided affordable housing both within and adjacent to the city limits. The City finds it necessary to adopt limitations on the displacement of housing units from its inventory to insure that the private sector maintains its role in the provision of affordable, housing and to prevent a housing shortfall from occurring while the impacts of new development are being addressed. Sec. 5-702. Applicability. Whenever aproject is proposed in which one or more residential dwelling units is to be demolished, the applicant shall be required to replace the demolished housing units pursuant to the standards of this Division. The requirements of this Division shall apply to demolition of residential dwelling units in the Lodge/Tourist Residential (L/TR), Commercial Lodge (CL),. Lodge Preservation (LP) and Commercial Core (CC) zone districts only when it is found that the unit has been rented at any time during the past shall not be permitted. Sec. 5-705. Timing. Replacement units shall be available for occupancy at the same time as the new units, regardless of whether built on- or off -site. When replacement units are proposed to be built off -site, the applicant shall be required to obtain a development order approving the off -site development prior to or in conjunction with obtaining a development order approving redevelopment of the site on which demolition is proposed to take place. Sec. 5-706. Procedure. When multi -family dwelling units are demolished and replaced, the applicant shall be subject to the requirements of Art. 7 Div. 10 Subdivision. When detached residential and duplex dwelling units are demolished and replaced, the applicant shall be subject to the requirements of Sec. 5-707, Attached Affordable Dwelling Units. Sec. 5-707. Attached Affordable Dwelling Units. Whenever a detached residential or duplex dwelling unit is demolished, the owner shall be required to replace each unit on -site with an Attached Affordable Dwelling Unit. Such units shall be constructed in either a studio or one -bedroom configuration and contain no less than 300 nor more than 600 square feet. Such units shall be included within or attached to a principal residential structure and shall be considered accessory uses in all zone districts in the City of Aspen. Such units shall not be subject to the minimum lot area per dwelling. unit requirements and parking requirements of Art. 5, Div 2, but shall be subject to all other dimensional requirements of the underlying zone district. Attached affordable dwelling units shall be subject to review and approval by the Aspen/Pitkin Housing Authority. The Housing Authority shall requirethat the unit be limited, by deed restriction or other guarantee running with the land, to rental for periods of six months or longer and to occupancy by no more than two (2) qualified employees of Pitkin County, as defined by the Housing Authority. Such units shall not be separately condominiumized. Attached affordable dwelling units may also be developed within any existing or new detached 3 ficant that it is not likely the City could produce affordable housing because of the magni- tude of the project it would be required to develop. When the application shall be for residential development allotments, a minimum of twenty five percent (25%) of the total number of bedrooms built on the site for which allotments are requested shall be affordable housing, unless, pursuant to the above standards, it shall be determined that this amount of affordable housing cannot or should not be built on -site. For the purposes of this section, a studio shall be considered a three-quarter (3/4) bedroom. If the Council shall not approve the method by which the applicant proposes to provide affordable housing, the applicant shall be provided with direction as to which other method or methods would be preferable. Section 3 That the following new language be added at the end of the "Minimum lot area per dwelling unit" requirement in Art. 5, Div i 21 Dimensional Requirements, n the Residential Multi -Family (RMF), Commercial (C-1), Office (0) and Lodge/Tourist Residential (L/TR) zone districts: "For multi -family dwellings when at least fifty percent (50%) of the bedrooms built on -site are restricted as affordable housing, provided that a studio shall be considered a three-quarter (3/4 bedroom, the following sq. ft. requirements apply: ) studio: 500 1 bedroom: 600 2 bedroom: 1,000 3 bedroom: 1,500 Units with more than 3bedrooms: one (1) bedroom per 500 square feet of lot area." Section 4 That the use tables in the Residential Multi -Family (RMF) and Office (0) zone districts contained in Art. 5, Div. 2 be amended to add "dormitory" as a permitted use. Section 5 That the following new section be added to Art. 7, Div 10, Subdivision: Sec. 7-1004. C.S. Affordable Housing. The proposed subdivision shall be required to provide affordable housing in 5 sq.ft. in lot area, up to a maximum of 4,020 sq. ft. of floor area. 15,000-50,000 4,020 sq.ft. of floor area, plus 5 sq.ft. of floor area for each additional 100 sq.ft in lot area, up to a maximum of 5,770 sq.ft. of floor area. 501000+ 5,770 sq.ft. of floor area, plus 2 sq.ft. of floor area for each additional 100 sq.ft. in lot area. Lot Size Allowable Duplex (Sq. Ft. Sq, Ft. 0- 31000 90 sq.ft. of floor area for each 100 sq.ft. in lot area, up to a maximum of 2,700 sq.ft. of floor area. 31000- 61000 2,700 sq.ft. of floor area, plus 30 sq.ft. of floor area for each additional 100 sq.ft. in lot area, up to a maximum of 3,600 sq.ft. of floor area. 6,000- 91000 3,600 sq.ft. of floor area, plus 16 sq. ft. of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 4,080 sq.ft. of floor area. 91000-15,000 4,080 sq.ft. of floor area, plus 6 sq.ft. of floor area for each additional 100 sq.ft. in lot area, up to a maximum of 4,440 sq.ft. of floor area. 15,000-50,000 4,440 sq.ft. of floor area, plus 5 sq.ft. of floor area for each additional 100 sq.ft in lot area, up to a maximum of 6,190 sq.ft. of floor area. 501000+ 6,190 sq.ft. of floor area, plus 3 sq.ft. of -floor area for each additional 100 sq.ft. in lot area. Multi -family: 1:1 Section 9 That Art. 5, Div. 2, Dimensional Requirements, be amended with regard to the external floor area ratio in the Commercial Core (CC) , zone district to read as follows: 7 9,000-15,000 4,080 sq.ft. of floor area, plus 6 sq.ft. Of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 4,440 sq.ft. of floor area. 15,000-50,000 4,440 sq.ft. of floor area, plus 5 sq.ft. of floor area for each additional 100 sq.ft in lot area, up to a maximwn of 6,190 sq.ft. of floor area. 50,000+ 6,190 sq.ft. of floor area, plus 3 sq.ft. of floor area for each additional 100 sq.ft. in lot area. All uses other than detached residential and duplex dwellings: 1.5:1; however, the 1.5:1 external floor area ratio may be increased to 2:1 by Special Review pursuant to Art. 7, Div.4. Section 10 That Art. 5, Div. 2, Dimensional Requirements, be amended with regard to the external floor area ratio in the Commercial (C-1), zone district to read as follows: 10. External floor area ratio (applies to conforming and nonconforming lots of record): Lot Size Detached Residential Allowable Dwell i* Ms (Sq. Ft.) Sct. Ft. 0- 3,000 80 sq.ft. of floor area for each 100 in lot area, up to a maximum of 2,400 sq.ft. of floor area. 31000- 61000 2,400 sq.ft. of floor area, plus 28 sq.ft. of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 3,240 sq.ft. of floor area. 61000- 91000 3,240 sq.ft. of floor area, plus 14 sq. ft. of floor area for each additional 100 sq.ft. in lot area, up to a maximum of 3,660 sq.ft. of floor area. 91000-15,000 3,660 sq.ft. of floor area plus 6 sq.ft. of floor area for each additional 100 sq.ft. in lot area, up to a maximum of 4,020 sq. ft. of floor area. 151000-50,000 4,020 sq.ft. of floor area, plus 5 sq.ft. of floor area for each additional 100 9 Lot Size Detached Residential Allowable Dwellings �.Ft. ) - Sq. Ft. 0- 31000 80 sq.ft. of floor area for each 100 in lot area, up to a maximum of 2,400 sq.ft. of floor area. 31000- 61000 2,400 sq.ft. of floor area, plus 28 sq.ft. of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 3,240 sq.ft. of floor area. 61000- 9,000 3,240 sq.ft. of floor area, plus 14 sq.ft. of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 3,660 sq.ft. of floor area. 91000-15,000 3,660 sq.ft. of floor area plus 6 sq.ft. of floor area for each additional 100 sq.ft. in lot area, up to a maximum of 4,020 sq. ft. of floor area. 15,000-50,000 4,020 sq.ft. of floor area, plus 5 sq.ft. of floor area for each additional 100 sq.ft in lot area, up to a maximum of 5,770 sq.ft. of floor area. 50,000+ 5,770 sq.ft. of floor area, plus 2 sq.ft. of floor area for each additional 100 sq.ft. in lot area. Lot Size Allowable Duplex (Sq. Ft. ) - -Ft* 0- 31000 90 sq.ft. of floor area for each 100 sq.ft. in lot area, up to a maximum of 2,700 sq.ft. of floor area. 31000- 6,000 2,700 sq.ft. of floor area plus 30 sq.ft. of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 3,600 sq.ft. of floor area. 61000- 91000 3,600 sq.ft. of floor area, plus 16 sq. ft. of floor area for each additional 100 sq. ft. in lot area, up to a maximum of 4,080 sq.ft. of floor area. 91000-15,000 4,080 sq.ft. of floor area, plus 6 sq.ft. of floor area for each additional 100 sq.ft. in lot area, up to a maximum of 4._ LAW OFFICES OF RICHARD Y. NEILEY, Jr., P.C. chard 1'. Neilev, Jr. ':one M. Alder HAND DELIVERY 600 East Hopkins Avenue, Suite 3 Aspen, Colorado 81611 (303) 925-9393 October 11, 1988 Mr. Alan Richman Planning Director Aspen/Pitkin County Planning Department 130 South Galena Street Aspen, Colorado 81611 Aspen Planning and Zoning Commission 130 South Galena Street Aspen, Colorado 81611 Re: Displacement/Affordable Housing Code Amendments Dear Mr. Richman and Members of the Planning and Zoning Commission: This letter is written to address concerns raised by the Memo- randa issued by the Planning Department on September 23, 1988 and October 6, 1988 regarding the above matter. This office represents the owners of the Valley -Hi Apartments at 1000 East Hopkins Avenue, Aspen, Colorado. This property was involved in the planning process at the time the administrative delay was imposed on August 8, 1988. As a consequence, the planned redevelopment of the property has been affected by the moratorium prohibiting the acceptance of demolition/ subdivision applications and will be affected in the future by the proposed Code amendments. The proposed Code amendments are not likely to achieve the stated objective of preserving existing and creating new inventories of affordable housing. The proposed amendments are so restrictive as to be punitive and confiscatory. Because they create no true incentive for development of new affordable housing, the impact will be felt most sub- stantially by the few remaining non-condominiumized residential multi -family properties, without any assurance that those properties will remain in the affordable housing inventory. Although the perception that an affordable housing shortage exists is probably correct, there appears to be a complete lack of empirical data to serve as a basis for determining which sectors of the public cre- ated the problem and which ought to be charged with rectifying it. ' It does not appear that any analysis of the impact of commercial or lodge Letter to Mr. Richman and the Aspen Planning and Zoning Commission October 11, 1988 Page 2 development on the housing marl=_et has been done or that alternatives to imposing regulations on residential development and redevelopment have been considered. The proposed amendments radically alter the traditional rights and interests of property owners. It appears that the City has failed to consider alternatives to placing the burden of providing afford- able housing primarily on the shoulders of those persons who wish to upgrade their properties. For example, although a six-month minimum lease restriction has been in place for many years with respect to condominiumization, it is beyond contention that substantial numbers of such units have been placed in the short-term rental market and are thus removed from the long-term residential market place without the City taking any steps toward enforcement. The situation which will be faced by the Valley -Hi Apartments under the proposed Amendments is illustrative of the punitive and confiscatory result which will impact existing properties in RMF zone districts. The Valley -Hi is currently comprised of nineteen units. B e- cause the proposed amendments do not address the existing and historic use of the property with respect to affordable housing, it would appear that all nineteen units would be required to be replaced on -site or on other property within the City of Aspen for redevelopment of the property to occur, regardless of whether or not their prior use falls within afford- able housing guidelines. Replacement of all units on -site would result in non -conformity as to density; therefore, it would be necessary for the owners to acquire a separate parcel of land within the City to reconstruct approximately half of the units. Because all of the units would be required to be deed restricted for affordable housing, the resulting values would never justify the expenditure involved in acquiring the property and developing residential units. Additionally, a cursory review of available vacant land within the city limits establishes the fact that it is for all practical purposes impossible to locate a site to construct the additional units. Under the proposed amendments, any redevelopment of the Valley -Hi Apartments and similar buildings would require total dedication as affordable housing regardless of prior use or the impact that that dedication would have on value and redevelopment potential. And, because of the lack of vacant property available to mitigate density problems, the redevelopment of property such as the Valley -Hi is prohibited both practi- cally and encomically. The result is that the City will have confiscated all real development rights and eliminated the reasonable use and enjoyment of the properties. This, in our view, is both illegal and unfair. The only alternative to redevelopment of existing RMF structures is to retain those structures and uses while upgrading the facilities to maximize return on capital. Whether or not such an alternative would be justified is speculative but may well be better than knowingly submitting such properties to restrictions which would guarantee the inability to realize even minimal return on investment through development potential. Under the proposed regulations, the City of Aspen will deprive the Valley -Hi Apartments' owners of reasonable use and enjoyment of their property and require them to deed restrict the property to affordable r Letter to Mr. Richman and the Aspen Planning and Zoning Commission October 11, 1988 Page 3 housing use without any compensation for the loss of value. Because it is impos6i.ble to replace all of the units on -site and impossible to find alterna- tive vacant land for construction, it will be impossible to do anything beyond minor remodels of the existing units. In short, the proposed Amendments constitute a condemnation of the property. This creates an intolerable burden on the Valley -Hi Apartments. The 1:1 replacement ratio must be rejected. That ratio does not insure the preservation or development of affordable housing. While it may discourage demolition, it leaves property owners with the sole option of remodeling and increasing rents. Certainly, this does not promote the objective of the City. Permitting an increased density on development sites is meaning- less where existing units must all be replaced as affordable housing units and no free-market development will be permitted. In such circumstances, it will be impossible for any developer or any property owner to justify the cost of construction affordable housing units. It is our belief that the proposed regulations do little except create the potential for protracted conflict between developers, property owners and the City. The complete lack of incentives for voluntary devel- opment of affordable housing is a notable deficiency of the regulations. Similarly, the unrealistic ratio between units demolished and affordable housing units to be built assures nothing but the financial inability to develop affordable housing. While the objective of slowing displacement of employees and loss of housing units may momentarily be achieved by the proposed amend- ments, there is no assurance of any long-term increase in affordable housing inventory. Unless the City takes steps to enforce existing rental restrictions on condominiums, develop employee housing projects itself and create incentives for the development of affordable housing by the private sector, the problems which are presently perceived will never be truly addressed. The proposed amendments should be rejected in their present format and realistic revised amendments should be drafted for consid- eration. An adoption of the proposed amendments will be vigorously opposed by the owners of the Valley -Hi Apartments. Very ruly yours, RI Y. 1EILEY J . , P. ichard Y . Neiley Jr . RYN/agk