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HomeMy WebLinkAboutagenda.council.jointworksession.20230718AGENDA JOINT CITY COUNCIL / BOCC WORK SESSION July 18, 2023 10:00 AM, Aspen Institute Hudson Commons Boettcher Building I.Work Session I.A Joint Meeting on Affordable Housing ZOOM Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join. https://us06web.zoom.us/j/84862358497? pwd=OEhwamErdkx3NEVkb2FFWEVXdk9MUT09 Passcode: 81611 Or join by phone: Dial(for higher quality, dial a number based on your current location): US: +1 719 359 4580 Webinar ID: 848 6235 8497 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kdbI2SZ5oa Jul18_Joint Meeting on Affordable Housing Packet.pdf 1 1 MEMORANDUM TO: Mayor and City Council FROM: Liz Axberg, Housing Policy Analyst, City of Aspen Diane Foster, Assistant City Manager, City of Aspen Ashley Perl, Community Resiliency Manager, Pitkin County Kara Silbernagel, Deputy County Manager, Pitkin County THROUGH: Sara Ott, City Manager, City of Aspen Jon Peacock, County Manager, Pitkin County MEMO DATE: July 12, 2023 MEETING DATE: July 18, 2023 RE: BOCC & City Council Joint Meeting on Affordable Housing MEETING INFORMATION: Date: Tuesday, July 18, 2023 Time: 9:30am to 4:00pm Location: Boettcher Hall, Aspen Institute 845 Meadows Rd, Aspen, CO 81611 Participation: Most attendees in person; one or two may participate via Zoom Facilitator: Thanks to Stephanie Zaza for facilitating the joint meeting Broadcast: This meeting will not be broadcast. The public are welcome to attend. Zoom Link: Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join. https://us06web.zoom.us/j/84862358497?pwd=OEhwamErdkx3NEVkb2FFWEVXdk9MUT09 Passcode: 81611 Or join by phone: Dial(for higher quality, dial a number based on your current location): US: +1 719 359 4580 Webinar ID: 848 6235 8497 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kdbI2SZ5oa 2 REQUEST OF ELECTED OFFICIAL PARTICIPANTS: Staff is requesting that the elected official meeting participants discuss areas where the two elected bodies would like to collaborate in the future. SUMMARY AND BACKGROUND: Since the 1970s, and before every other ski town, local elected officials recognized the importance of investing in affordable housing for the benefit of then current and future generations. The County and City have a long legacy of strong collaboration on affordable housing, most notably as partners in the creation and ongoing investment in the Aspen Pitkin County Housing Authority (APCHA). Through the development of individual affordable housing development projects, the City of Aspen, Pitkin County and private sector developers have created one of the highest concentrations of affordable housing in the nation. By jointly funding and continuously investing in APCHA, over 3,100 affordable housing units have been consistently protected over the past fifty years. While the volume of affordable housing in Pitkin County and its proximity to downtown Aspen is the envy of every ski town, it is not without it challenges. The pandemic-fueled meteoric rise of home prices throughout the Roaring Fork Valley has exacerbated the already short supply of affordable housing. Given the delta between tourism industry wages and free market home prices, it is reasonable to expect the need for affordable housing will always outstrip the supply. Adding to the pressure on the current deed restricted housing stock is the increase in home prices throughout the Roaring Fork Valley. No longer are residents able to use APCHA housing as a stepping stone to down valley free market homes. A second challenge involves the age of the area’s deed restricted properties. The capital needs of many of the multifamily properties built thirty to fifty years ago are sometimes beyond what the homeowner associations’ capital reserves can handle. MEETING PURPOSE: To understand if there are certain affordable housing topics and/or opportunities, outside of APCHA’s scope of operational scope of work, that the Pitkin County Board of County Commission and the Aspen City Council would like to jointly pursue. MEETING AGENDA: 9:30am – 10:00am Coffee & Gathering Period Start: 10:00am Opening Remarks and Framing Meeting Purpose: • Not losing what we have 3 • How do we maintain community in the face of growth pressure? How to we move forward? • Are there places we could work together? Agenda: • Homeowner Association Capital Reserve Shortfalls • Growth Committee’s Affordable Housing Recommendations • Affordable Housing Tactics: Areas for Collaboration & Prioritization APPENDIX: • Pitkin County’s Growth Committee Recommendations • City of Aspen July 10, 2023, Council Memo on HOA Capital Reserve Shortfalls • 2022-2026 City of Aspen Affordable Housing Strategic Plan • Pitkin County July 11, 2023, BOCC Staff Report on Affordable Housing • Pitkin County Draft Community Housing Plan • City of Aspen July 10, 2023, Council Memo on Housing Goal Work Plan • Pitkin County Housing and Child Care Update Survey • West Mountain Regional Housing Coalition July 5, 2023, Updates • Growth Advisory Committee Recommendations: https://pitkincounty.com/DocumentCenter/View/31143/Community-Growth- Advisory-Committee--Final-Report-2023 4 APPENDIX E: ADDITIONAL AFFORDABLE HOUSING RECOMMENDATIONS At the April 26th CGAC committee, there was considerable interest in having a Housing Working Group meeting to further develop possible recommendations related to Affordable Housing Policies to be considered in the Table of Recommendations. Objective: Much of the Committee’s work has focused on minimizing the growth, and its impacts, that do not reflect our community values. The growth we do want as a community, that meets our community values, is more affordable and middle housing. We want to grow the community that will participate in our community and create policies and a Land Use Code that creates an environment to ensure we maintain the fabric of our community and this “Middle Economy.” In addition to the recommendations below, the group strongly believes Pitkin County needs to not continue “problem identification” of housing, but rather be solution oriented and take action to address the housing needs of the community by all means necessary. Historically, Pitkin County’s Land Use Code has not allowed affordable housing outside the UGB, unless it was the preservation of an pre-existing development. Many types of affordable housing are currently needed for our community and in order to meet the values and goals, Pitkin County should look at how the Land Use Code can be revised to enable and incentivize different types of affordable housing outside of the UGBs. Affordable Housing Strategies Revising the Land Use Code Reviewing and revising the Land Use Code is one of the easiest changes to ensure Pitkin County is creating an environment in which affordable housing outside of UGB may be allowed and incentivized to ensure the Land Use Code reflects the values of enabling smaller, affordable housing, not restricting it. ● Review to ensure language is not prohibitive to only be within the UGBs (per the recommendations set forth below). ● Review LUC for opportunities to create an environment that allows opportunities for other creative housing, such as: ● Allow/enable onsite employee housing at large employment centers ● GMQS/SFQS exemption for affordable housing ● Floor area bonus w/ Caretaker Dwelling Unit (CDU) ● Incentivize CDU through voluntary participation (not requirement) ● Require new subdivisions to allow CDUs ● Require onsite mitigation before payment-in-lieu 5 Affordable Housing with the UGBs Work regionally with municipalities and private partners to explore the remaining opportunities within the UGBs of Aspen,Snowmass and Basalt.Think of creative partnerships.A housing strategic/master plan is an opportunity to explore what may still be available within the UGBs and identify creative partnerships. Allow Affordable Housing Beyond the UGB While there are still a few opportunities within the UGBs of Aspen,Snowmass,and Basalt our community will soon need to explore other options.Allow small scale multi-family developments can easily be less than 5,750 sq ft and fit well into our rural landscape and community. ●Allow Two,three,four unit multifamily housing in rural Pitkin County,under the right context of zoning,hazard mitigation and sufficient infrastructure. ●Allow larger affordable housing density within the Hwy 82 Corridor,IF it meets the parameter below ○Parameters of larger density outside of UGBs ■Access to infrastructure (water and sewer) ■Low visibility/minimal visual impacts ■Close to transit and/or the main transportation corridor. ■Subject to performance/development standards ■Consider hazard mitigation (e.g.,wildfire,flooding,etc.) ●Look at expansion opportunities of existing affordable housing developments that are outside the UGBs.These developments may have capacity and infrastructure for additional density.Redevelopment should meet all performance standards criteria. Preservation of Existing Stock The County should continue to prioritize the preservation of existing stock and also look at additional and creative ways to maintain the middle housing stock for the community. ●Community buy-down (mobile home parks) ●Individual units (rentals) ●Free-market/shared equity program ●Look at redevelopment of existing affordable housing outside the UGB to meet the performance standard goals and redevelopment/expansion of existing affordable housing stock Affordable Housing Certificates System The County should explore how the City of Aspen’s Affordable Housing Certificates System could be expanded to unincorporated Pitkin County.The benefit of an Affordable Housing Certificates system is that it provides another mechanism to capture the impacts of development to ensure the development of affordable housing.Within the City,the “AH Certificates program 6 has succeeded in motivating private sector development of non-mitigation AH units.The credits created by those developments have provided flexibility to private sector development to meet its mitigation requirements through the extinguishment of those credits”.COA Housing Strategic Plan May 2022,pg 24 Options for expanding AH Certificates in unincorporated Pitkin County include: ●Affordable housing credits system integrated based on the tiered system ●Enable Pitkin County homeowners to participate in the program.We know there is a desire for some homeowners to create a rental unit on site but do not have the means to build the unit.AH Certificates provide a funding incentive for local homeowners to help address the housing needs. ●Offers a means to be competitive with land for affordable housing beyond just public funding Funding and Incentives:Pitkin County needs to fund affordable housing.The biggest barriers are finding the land and finding the funding. ●The committee encourages the County to explore all diverse mechanisms of funding affordable housing. ●Incorporate affordable housing when negotiating conservation easements. ●Utilize innovative mechanisms for housing funds: ■Capture 100%of impacts through mitigation fees ■Encourage all taxing districts to ensure funding for affordable housing ●Engage with private developers on what it would take to incentivize them to add affordable options. Regional Coordination ●Partner with other jurisdictions’UGBs. ●Engage developers to determine what incentives are needed to create Public-private partnerships (P3s). ●Lean into the regional partnerships and rethink long-held norms of how local governments can partner together. 7 MEMORANDUM TO: Mayor and City Council FROM: Liz Axberg, Housing Policy Analyst Chris Everson, Affordable Housing Development Senior Project Manager THROUGH: Diane Foster, Assistant City Manager MEMO DATE: July 3rd, 2023 MEETING DATE: July 10th, 2023 RE: Homeowner Association Capital Reserve Shortfalls REQUEST OF COUNCIL: The work session’s purpose is to frame the issue of some HOAs underfunding their capital reserves, the current actions staff have already been taking to address this issue and discuss possible solutions that would prevent future HOA reserve shortfalls. The main questions staff have for Council are: 1. Are there actions that you would like your APCHA board representatives to take to the APCHA board for consideration? 2. Would you like staff to come back with further information on any of the items discussed? 3. Are there any ideas that were not presented here that you would like staff to further explore? SUMMARY AND BACKGROUND: The City of Aspen and APCHA recognize that the gap in capital reserves has existed for some time and some HOAs have a problem catching up to their current capital needs. The County, City, and APCHA have attempted to address this issue several times in the past 10-years. In 2011, the City, County, and APCHA recognized the issue and partially funded capital reserve studies for 29 HOAs under the APCHA regulations. From these results, the problem became clear: some HOAs were not properly funding their reserves. In the 2011 capital reserve studies, 26 out of 29 of the HOAs had capital reserves funded below 70% (the industry recommendation). The table below provides a high-level summary of the results from the 2011 capital reserve studies. 8 2011 APCHA Capital Reserve Studies # of participating HOAs 29 Average Deficit $254,422 Minimum Deficit $9,756 Maximum Deficit $2,800,715 Average Deficit per Unit $7,523 Average % Funded 29% In 2016, the BOCC, City Council, and APCHA Board decided to act on the results from the 2011 capital reserve studies and formed a Capital Reserve Policy Joint-Work Group to propose policy options to address the capital reserve gap in APCHA HOA communities. Through this work, the group recommended several proposals that included tactics to address deficits such as: providing another capital reserve study, management assistance, education programming, grants, and loans programs. None of the proposed programs were approved or passed during this time. In 2018, the issue rose to the attention of the APCHA Board again. APCHA staff proposed a plan which included program and policy solutions to better support HOAs in addressing capital reserve deficiencies and deferred maintenance. No large programs or policies were passed during this time either, but it did result in APCHA passing several regulation changes which included requirements for HOAs to have a capital reserve study and for HOAs to be managed by a professional management company the first year. In today’s work session, we will cover best practices that staff are already undertaking to prevent HOA capital reserve shortfalls and potential solutions that would also prevent this issue from occurring at future developments. DISCUSSION: New Developments vs Existing Developments: Today we are focusing on tactical solutions to prevent future shortfalls for new HOAs versus the already existing deficits and shortfalls. To address the already existing and long-standing deficits and shortfalls requires a different approach that is not part of today’s discussion. The Issue and Solutions: Staff identified several of the system realities and core issues as to why some HOAs are not properly funding and maintaining their capital reserves. In recent years, staff have already taken several actions to begin addressing the different facets of why the issue exists. Each system reality and the current solution(s) the City and APCHA has in place is below: 9 Issue Current Solutions Lack of education or knowledge of how to properly run an HOA • APCHA requires new HOAs to have a professional management company for 1 year minimum after incorporation. • APCHA offers training for HOA representatives. • Starting an RFP for APCHA funded capital reserve studies for HOAs. • Proposed new APCHA outreach position. • All Owners are required to take a homebuyer education class. No Requirements for Maintaining Reserves • Requirements are included in new HOA governing documents. • APCHA requires new HOAs to have a preliminary capital reserve study. Less resilient design choices available in the past • Actively choosing more durable materials and architectural choices in new developments. Role of HOA dues in assessing Affordability • Avoid mixed free market and deed restricted projects. • Minimizing unnecessary amenities. The City of Aspen includes the following industry best practice requirements in homeowner associations governing documents for any homeowner associations which the City incorporates: • A capital reserve study by a qualified professional is required. • The reserve study must include an inventory of common elements which the Association is responsible for maintaining. • The reserve study must include a financial analysis with o Useful life of common elements which the Association is responsible for maintaining, and o Projected future reserve savings to meet future reserve needs. • Every five (5) years the reserve study shall up updated. 10 • Within seven (7) years from the date Declaration is recorded, reserve savings must reach seventy percent (70%) of the recommended funds set forth in the reserve study. • Must maintain its reserve fund in an amount equaling at least 70 percent (70%) of the funding recommended in its most recently updated reserve study. • On a yearly basis, must submit to the Aspen Pitkin County Housing Authority the most recent version of the reserve study. • On a yearly basis, must submit to the Aspen Pitkin County Housing Authority the balance of the reserve account and an accounting of whether the Association has updated its reserve study and maintained its reserve account as required. In addition to mandating accountability, staff has commission a capital reserve study. The process of continuing to estimate operating costs is ongoing and will further inform the 2024 operating budget. By providing the new association board with the requirements listed above and the reserve study, the association board has a fiduciary duty to execute a capital reserve savings plan, but also all the necessary information they need to successfully do so. Along with this, as declarant, the City holds three of five association board seats during the period of declarant control. This allows the City to support the HOA board in having a successful start to their first year. Possible Additional Tactics: There is a plethora of tactics and solutions that could address and prevent HOA capital reserve shortfalls down the road. Staff identified four categories that the tactics could be categorized into. Within each category, there is a copious number of avenues and options. The goal of this section is to give an idea of other possible tactics that could prevent future HOA capital reserve shortfalls. Solution Category Examples Generate a revolving fund • Taxing districts • Collecting appreciation/price adjustments Mandating Accountability through APCHA • Mandatory reporting and training • Mandatory capital reserve studies and management plans • Deed restriction requirements. • New APCHA Staff member. • Enforcement through land use code 11 Free Market Solutions • Mixed free-market development to help fund repairs. • Partnering with a local bank to help HOAs access loans. Incentives • Allowing HOA Capital expenses to be recouped upon resale. Questions for Council: 1. Are there actions that you would like your APCHA board representatives to take to the APCHA board for consideration? 2. Would you like staff to come back with further information on any of the items discussed? 3. Are there any ideas that were not presented here that you would like staff to further explore? FINANCIAL IMPACTS: No financial impacts at this time. ENVIRONMENTAL IMPACTS: No environmental impacts at this time. ALTERNATIVES: RECOMMENDATIONS: CITY MANAGER COMMENTS: 12 AFFORDABLE HOUSING STRATEGIC PLAN CITY OF ASPEN 2022-2026 13 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 14 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 15 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 16 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: 17 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% 18 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. 19 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. 20 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 21 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 Rank22 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 23 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 24 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 25 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 26 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 27 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 28 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 29 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 30 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 31 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. 32 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 33 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 34 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 35 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 36 www.aspen.gov // 427 Rio Grande Place, Aspen, CO 81611 37 AGENDA ITEM SUMMARY WORK SESSION DATE: July 11, 2023 AGENDA ITEM TITLE: Community Housing Update STAFF RESPONSIBLE: Ashley Perl, Community Resiliency Manager ISSUE STATEMENT: During the 2023 budget, the BOCC appropriated $5M from the General Fund to be dedicated towards community housing. Over the past six months, staff have been working on multiple different housing opportunities and will be presenting an update to the Board on all-things-housing and seeking direction of how the Board would like to appropriate the remaining funding for housing this year. BACKGROUND: The Board, the community, and the state have all recognized that Pitkin County is experiencing a housing crisis and there is a need to dedicate resources in order to lessen the current housing gap. To that end, the Board created the Resiliency Manager position in 2022 to help understand the current housing landscape and resources available. Additionally, the State and the federal government, through both policy and the legislature, have enacted several new funding sources and opportunities to support housing. On the heels of the COVID pandemic, eight local jurisdictions, including Pitkin County, came together to create the West Mountain Regional Housing Coalition to address housing on a regional scale. Even with this recent influx of resources into the housing space, the availability, accessibility and affordability of housing remains a significant, if not the single largest, challenge for businesses, families, individuals, and the community. Housing continues to be a priority for the community and Pitkin County. Since the 2023 budget process, when the BOCC dedicated $5 million towards housing, the housing landscape has evolved; new resources are now available and numerous efforts have evolved. The West Mountain Regional Housing Coalition officially formed, approved a strategic plan and is in the process of hiring their first staff member; Pitkin County now has .5 of a staff person dedicated towards community housing, and the Pitkin County Growth Advisory Committee completed their 10-month long process which included recommendations specific on addressing housing and growth; “The growth we do want as a community, that meets our community values, is more affordable and middle housing. We want to grow the community that will participate in our community and create policies and a Land Use Code that creates an environment to ensure we maintain the fabric of our community and this “Middle Economy.” In addition…the [Growth Committee] strongly believes Pitkin County needs to not continue “problem identification” of housing, but rather be solution oriented and take action to address the housing needs of the community by all means necessary.” - Growth Committee Recommendations 38 All of these changes, and others not listed, have created new opportunities for the County to address the housing gap and enabled the County to think more strategically about housing for the community. Another addition to the housing landscape is that the BOCC reviewed and edited their housing policy during the 2023 retreat and recommitted to addressing housing challenges across the full spectrum of the housing continuum. This continuum, included below, includes emergency shelters, transitional and supportive housing, social/community housing, subsidized rental and ownership units, and free market rental and ownership housing. Following the guidance of both the BOCC housing policy and the work of the Growth Committee, County staff created a working draft of a Pitkin County Community Housing Plan (Attachment A). The plan reframes the housing continuum through a lens of available opportunities and offers a wide variety of tactical approaches, leveraging the resources and opportunities that are available today, to improve community housing availability, affordability and accessibility. The Plan is organized into three buckets: conserve, convert and construct/codes. ● Conservation refers to any actions or programs that support existing affordable housing, including naturally occuring affordability, employer controlled units or deed restricted units. ● Conversion focuses on efforts that convert free market residential or commercial spaces into community housing, either through the addition of deed restrictions or through public ownership and master leases. This is also the space that Pitkin County has seen the most success with, including the buy down of mobile home parks into workforce housing, as well as individual unit buy-downs. ● Construct and Codes includes more traditional strategies such as land banking and new construction, as well as the incorporation of land use codes that supports the development of community housing. Per the growth committee recommendations, this does not necessarily mean large multi-family development, but rather creating an environment in which the private sector can more easily participate in the development of deed restricted housing to meet the community’s needs. 39 This framework also helps to identify where local governments, nonprofit partners and the private sector can lead and/or partner to address the housing gaps in our community. Attachment A, the draft Pitkin County Community Housing Plan, was created by County staff as a way to showcase the wide variety of approaches and tactics that are available to the County as the BOCC considers how and where to apply funds. The different buckets are based on best practices from other communities and on the Regional Housing Toolkit, created by the West Mountain Regional Housing Coalition. In addition to presenting the full breadth of housing opportunities, the draft plan also denotes those areas where the County is actively working (green), areas where Pitkin County is considering working or currently assessing (orange), and those areas which the County has yet to participate, but are opportunities in which the County could participate (red). Definitions of each approach are provided on page two of the attachment. Included in the working draft Plan are goals staff created based on rough estimates of what is possible, given the County’s existing partnerships and land and unit availability, but does not take into account the staff and financial resources that would be required to achieve these goals and therefore the timeline to achieve the goals is dependent on the resources available. Staff estimates that if the County were to contribute towards 175 new affordable units, approximately 420 people would be served with housing, assuming an average of 2.4 occupants per unit. Pitkin County Community Housing Plan - Working Draft For those items in orange or red in the draft Plan, there are a number of barriers that have historically prevented the County from pursuing action in these areas including: staff resources, limited funding, and competing priorities. However, with the evolving landscape - updates on BOCC housing policy, an .5 FTE dedicated to community housing, a regional housing coalition, guidance from the Growth Committee on the type of affordable housing the community wants to see, and the BOCC dedicating $5M for housing, some of the items in orange or red may be closer than before. The BOCC set aside $5 million from the general fund for housing in 2023. To date, the County has spent $585,469 for an employee unit, which leaves $4,414,531 remaining. These funds can be used however the BOCC sees fit, on either community housing or housing to serve County employees. The other buckets of funding that can be used for housing are the ARPA and LATCF funds, of which around $2 million remains unencumbered. ARPA dollars are more constrained in their usage and must be tied to an identified impact from the COVID-19 pandemic, and the funds must be encumbered by the end of 2024 and fully expended by the end of 2026. LATCF is more fluid and has so far been used to support the new Response shelter and the overnight shelter. Other Housing Updates: West Mountain Regional Housing Coalition. The new regional Coalition is in the process of hiring a part time Program Director and is waiting to hear from the state regarding grant applications. More details and updates are included in Attachment B. Prop 123 and Technical Assistance Grant. Proposition 123 was passed by Colorado voters in 2022 and created the State Affordable Housing Fund (SAHF) and dedicated one-tenth of one percent (0.1%) of state income tax revenue to fund affordable housing programs and projects. These funds 40 will then be granted and loaned to non-profits, private developers and local governments for use towards creating more housing. Organizations are only eligible for this funding if their project or program takes place in cities or counties that have committed to increasing their affordable housing stock above a baseline amount. The requirements and calculations of the baseline number have changed multiple times over the last year and after changes during the legislative session, program guidelines are now understood to be final. One of the outstanding concerns regarding Prop 123, especially in resort communities, is the commitment required and the income eligibility. Pitkin County, in partnership with the City of Aspen, Town of Snowmass Village, and Town of Basalt applied for a technical assistance grant from DOLA that will help Pitkin County and its municipalities further understand the requirements and commitments of Prop 123. If awarded, this grant will provide analysis and calculation tools and expert staff time to assist the BOCC in making an informed decision if Prop 123 is a fit for the community, or if it is more appropriate to skip participation in this program. APCHA’s Home Repair Program. Staff from APCHA presented to the BOCC on May 23, 2023 and the BOCC showed support for APCHA’s new Essential Home Repair Pilot Grant Program and committed $100,000 worth of funding. However, the BOCC expressed interest in funding the program at a higher amount if the City of Aspen would also agree to double their contribution. At a City Council meeting on June 12, 2023, the City of Aspen agreed to contribute $200,000 towards the program, with the expectation that the County would contribute the same amount. At this point, County staff requests final support from the BOCC for a $200,000 contribution to this program. USFS El Jebel Partnership. Pitkin County and Eagle County have exercised their first right of refusal to purchase or lease the 28 acres of mostly vacant land west of Crown Mountain Park. The USFS recently finalized the environmental assessment and the counties are currently in discussion with the Forest Service regarding certain aspects of the land transfer and potential future uses. If it is determined that there is a pathway forward, the next step will be to request an appraisal on the land. LINK TO STRATEGIC PLAN: By working on community housing, the BOCC is progressing in the core focus area of Livable and Supportive Community. KEY DISCUSSION ITEMS: Staff will walk the Board through the Housing Plan and discuss what areas the BOCC may choose to prioritize for the remaining $4.4M funding available this year and any ARPA funding. Of all the program areas listed in Attachment A, staff recommends the following as most appropriate for County funding in the near term: ○ West Mountain Regional Housing Coalition’s Deed Restriction Program ○ New and Converted Transitional Housing ○ Horizontal Subsidies on new construction projects ○ Community Rental Assistance Programs 41 1. Does the BOCC support the goals and framework of the Pitkin County Community Housing Plan working draft? 2. What areas of the Community Housing Plan does the BOCC support using existing funds to support or advance further? BUDGETARY IMPACT: None at this time. RECOMMENDED BOCC ACTION: Direct staff to bring forward specific funding opportunities that will help to lessen the existing community housing gap. ATTACHMENTS: Attachment A: DRAFT Pitkin County Community Housing Plan Attachment B: West Mountain Regional Housing Coalition Update Memo 42 Pitkin County Community Housing Plan “The growth we do want as a community, that meets our community values, is more affordable and middle housing” Conservation Conversion Construction & Codes Goal: Maintain existing livable housing stock ● Preserve expiring deed restrictions ● Improve capital reserves ● Capital maintenance ● Mobile home preservation Goal: Convert 25 units/50 bedrooms of existing free market into deed restricted or otherwise controlled ● County employee deed restriction program ● County single unit buy down for rental ● WMRHC Deed Restriction Program ● Multi-family buy downs to affordable rentals ● Non-congregate emergency shelter ● Permanent supportive housing ● Housing credits and vouchers ● Transitional housing ● Rental subsidies and emergency assistance Goal: Create 150 new housing units/300- 350 new bedrooms ● Land banking ● Horizontal infrastructure subsidy ● Vertical infrastructure ● Purchase master leases ● CDU/ADU deed restriction ● Transitional housing ● Specialized transitional housing ● Permanent supportive housing ● Non-congregate emergency shelter 43 The plan denotes those areas where the County is actively working (green), areas where Pitkin County is considering working or currently assessing (orange), and those areas which the County has yet to participate in, but are opportunities in which the County could participate (red). Definitions: Preserve expiring deed restrictions: A program that would encourage homeowners of existing deed restricted housing to voluntarily sign an updated, non-expiring deed restriction for their property in exchange for financial incentives. Improve capital reserves: Programs that increase the resiliency of HOA budgets to address current and future capital improvements. Capital maintenance: Programs that provide funding to homeowners and landlords to upkeep their existing units to ensure long term livability and affordability of the units. Mobile home preservation: Programs that protect the affordability of mobile homes as ‘naturally occurring’ affordable housing. One example of this is the County’s purchase of the Philips Mobile Home Park. County employee deed restriction program: An existing program whereby Pitkin County contributes up to 40%/$400,000 towards the purchase of a free market home in partnership with an employee in exchange for placing a deed restriction on the property. The County retains the first right of refusal on the property. WMRHC deed restriction purchase program: A new program administered by the regional coalition where the Coalition contributes a set amount at closing in exchange for a permanent deed restriction on the property. County single unit buy down for rental: An existing program where Pitkin County buys a single free market unit for the purpose of renting to an employee or community member, managed by the County. Multi-family buy downs to affordable rentals: An organization, such as a local government or housing trust, purchases an entire multi-family complex and then rents units back to the community at affordable rates. Land banking: The purchase of land with the intention of building future housing. 44 Horizontal infrastructure subsidy: Funding the horizontal or in-the-ground infrastructure for a housing construction project in exchange for access to future housing units. This approach relies on partnerships to complete the remainder of the development. Vertical infrastructure: Funding the construction of new housing units. Purchase master leases: A separate entity constructs housing and then the County leases a set number of units in the complex back from the developer or owner for either community or County use. CDU/ADU Deed restriction: Programs that incentivize existing homeowners to construct and rent accessory dwelling units to community members at an affordable price. Permanent supportive housing: Permanent or long term housing in which housing assistance (e.g., long-term leasing or rental assistance) and supportive services are provided to assist households with at least one member (adult or child) with a disability in achieving housing stability. Rental subsidies: Programs that provide either monthly rent subsidies to qualifying renters or that provide first and last month’s rent to enable a renter to secure a new rental. Housing credits and vouchers: Government run programs for low income families, individuals, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments. Transitional/Specialized housing: Temporary housing with supportive services to individuals and families experiencing or at risk of homelessness with the goal of interim stability and support to successfully move to and maintain permanent housing. An example of this is the RESPONSE shelter build. Non-congregate emergency shelter: Provides immediate shelter that is short and limited (often hotel rooms) and acts as the first step in a long term housing plan. 45 46 47 48 49 50 51 52 53 54 Pitkin County Housing and Child Care Survey Update WR COMMUNICATIONS INC. | JUNE 20, 2023 55 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Key Takeaways 1.Housing is a clear priority: Respondents identified availability/affordability of housing as both the top issue (38% of respondents) facing the county and the top priority (49.9%) for the BOCC to address in the next two years. 2.Alignment on top priority: Community’s top priority and the BOCC’s priority are in alignment. However, respondents are not sure that the proposed policies (ballot questions) are the right approach. •Childcare did not rank as high of a concern or priority for respondents. Ballot proposal may receive increased support if it is solely focused on housing. •Cost message of $12 per month for a $1 million home was well received by respondents. Any changes to the ballot proposal need to include information about the impact to property taxes so voters can make an informed value judgment on the proposal. 3.Concern over property taxes: Responses throughout the survey showed a high level of concern about property taxes and the timing of the proposals with the assessment process. •General opposition to taxes and concern over level of taxes were the top reasons to oppose the ballot measures, as well as being the primary issue addressed in the open-ended comments. •With the “Right direction” measure below 50%, those positive answers primarily “Mostly the right direction,” this measure could tip toward wrong directions if concerns about taxes and cost of living are not discussed and addressed in county. 4.Support for action on housing: Open-ended responses showed a high level of desire to address housing and the need to get moving/take action on solutions. This combines well with the top messages of the importance of housing for future generations and essential workers like nurses and teachers. 5.Additional community ready outreach on housing: Survey supports continuing community dialogue given support for priorities and messaging around workforce housing and the alignment between the respondents and BOCC.56 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Survey Details Survey conducted May 31 to June 1, 2023 300 respondents with margin of error of ±5.51% Mixed mode methodology using live calls to landlines and mobile & text and email invites Survey results modeled on November 2023 likely election turnout 57 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Satisfaction with Pitkin County Generally speaking, would you say things in Pitkin County are headed in the right direction or off on the wrong track? 58 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Top Priorities in Pitkin County Of the following options, what would you say is the top issue facing Pitkin County or the area you live right now? 59 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Top Priorities for BOCC And if you had to choose, which one of the following issues should be the most important priority for the County Commissioners to address in the next year or two? 60 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Property Tax Ballot Question 61 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Sales Tax Option The county may also consider an alternative to the property tax proposal that would INSTEAD increase the county’s sales tax by 0.76 percent to raise $12 million to support housing and childcare programs. This proposal would add 76 cents to a $100 purchase in the county and the county’s three towns. Using sal es tax would ensure that visitors to Pitkin County help pay to address our county’s housing and childcare programs. However, increasing the county’s sales tax would also increase sales tax in Aspen, S now mass Village and portions of Basalt, making their rates higher than other mountain communities. Knowing this information, would you be more or less likely to support a sales tax over a property tax f or the county’s housing and childcare programs? 62 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Bonding Ballot Question 63 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Property Tax Impact The mill levy proposal to address affordable housing and childcare in the county would raise taxes by approximately $140 per year or just under $12 per month for every $1 million in actual home value. Knowing this, would you be more or less likely to support the proposal? 64 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Reasons for No or Unsure Thinking about your response to the previous questions on the two proposals, what is the main reason you would vote that way? 65 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Rating Proposal’s Priorities Increasing the supply and access to housing through land and housing acquisition opportunities, partnerships with the private and nonprofit sectors and other jurisdictions, and redevelopments for affordable housing. Supporting access to housing through programs such as deed restrictions and down-payment assistance to ensure that the community’s workforce, individuals, and families can own or rent homes in their communities. Improving the quality and availability of childcare for the community’s working families to ensure available care and safe learning environments. Training and retaining childcare professionals to provide and expand the quality and availability of childcare in Pitkin County. 66 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Heatmap for “Very Important” Priorities Increasing the supply and access to housing through land and housing acquisition opportunities, partnerships with the private and nonprofit sectors and other jurisdictions, and redevelopments for affordable housing. Supporting access to housing through programs such as deed restrictions and down-payment assistance to ensure that the community’s workforce, individuals, and families can own or rent homes in their communities. Improving the quality and availability of childcare for the community’s working families to ensure available care and safe learning environments. Training and retaining childcare professionals to provide and expand the quality and availability of childcare in Pitkin County. 67 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Top 3 Messages Essential Workers: Even before the pandemic, there was a shortage of at least 3,000 housing units in Aspen and Snowmass, and that was for people at a variety of income levels like essential workers and professionals. By not addressing this housing shortage, some of our most important employees like nurses and teachers will leave our community to work in places they can also afford to live. Maintain Character: Many individuals and families in Pitkin County are simply not able to make ends meet due to escalating housing prices and the cost of living, including the cost of childcare. We need to maintain the character of our community by ensuring local families can live and work here. Future Generations: We want Pitkin County to be a thriving community for families, workers, and our neighbors, and NOT just for tourists and second homeowners. Investing in access to housing and childcare helps us retain a viable workforce now and for future generations. 68 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Property Tax Informed Initial Property Tax Ballot Informed Property Tax Ballot 3.1 point drop in support 69 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Bonding Informed Initial Bonding Ballot Informed Bonding Ballot 3.9 point drop in support 70 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Open Ended Responses More than 240 verbatim responses provide by survey takers “I do feel like the heart of the community has been lost. Priorities have been directed toward second homes, expensive restaurants and stores, and development. The focus needs to be redirected to the locals and preserving this town, its character, and the full-time residents who work and reside here.” —Female Democrat, 30 to 44 years old “Housing is needed, and long- time employees of Aspen should have first access to it. Maintaining our sense of community is what housing will provide and that is why I support the proposals.” —Female Democrat, 45 to 54 years old “This is what we need to do in Aspen to make sure it is a good place for locals and tourist industry workers going forward. We need the tourism, but it’s gone too far. We need to find the balance that makes this place special and not feel like a town catered to tourism. Let’s find the middle ground.” —Male Democrat, 18 to 29 years old Support for housing, workforce proposal “Something needs to be done to address this crisis. Hopefully, this is a step in the right direction.” —Female Unaffiliated, 65 or older “These are important priorities if Aspen and Pitkin County will continue to thrive and attract people to live in the area. It can not be allowed to become just a tourist destination and a place where wealthy people own property.” —Male Unaffiliated, 65 or older 71 Pitkin County Housing and Child Care Survey Update | June 20, 2023 “I do not believe the way to raise money for child care and housing is through an increased sales tax. Everyone should contribute to these costs not just property owners. You do realize that raising property taxes will result in higher rental costs making it less affordable to live in existing housing in Pitkin County?” —Female Republican, 65 or older “There is a serious need for much more employee housing, but this is not the best time to ask for tax increases until after we see what our actual taxes will be next year.” —Male Unaffiliated, 65 or older “Stop raising taxes or you will drive away people who already live here without solving any problems.” —Male Unaffiliated, 45 to 54 years old “Government should stay out of people’s housing and child care. Focus on infrastructure, public safety and fiscal responsibility.” —Male Unaffiliated, 45 to 54 years old “Raising property taxes is just wrong as the increased housing costs to the homeowners will force many to leave the Valley as well.” —Female Democrat, 65 or older Concerns about taxes, assessments, priorities “Proposed property tax increases are a powder keg. Wealthy second homeowners can afford them. Locals will be crushed.” —Male Republican, 55 to 64 years old “Spending more money won't solve our problems. Taxiness won't solve our problems. The private sector needs to come up solutions for the needs of their workforce. Funding for schools and hospitals already exceed the amounts necessary to improve their operations. A new tax is just not necessary.” —Male Unaffiliated, 55 to 64 years old 72 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Key Takeaways 1.Housing is a clear priority: Respondents identified availability/affordability of housing as both the top issue (38% of respondents) facing the county and the top priority (49.9%) for the BOCC to address in the next two years. 2.Alignment on top priority: Community’s top priority and the BOCC’s priority are in alignment. However, respondents are not sure that the proposed policies (ballot questions) are the right approach. •Childcare did not rank as high of a concern or priority for respondents. Ballot proposal may receive increased support if it is solely focused on housing. •Cost message of $12 per month for a $1 million home was well received by respondents. Any changes to the ballot proposal need to include information about the impact to property taxes so voters can make an informed value judgment on the proposal. 3.Concern over property taxes: Responses throughout the survey showed a high level of concern about property taxes and the timing of the proposals with the assessment process. •General opposition to taxes and concern over level of taxes were the top reasons to oppose the ballot measures, as well as being the primary issue addressed in the open-ended comments. •With the “Right direction” measure below 50%, those positive answers primarily “Mostly the right direction,” this measure could tip toward wrong directions if concerns about taxes and cost of living are not discussed and addressed in county. 4.Support for action on housing: Open-ended responses showed a high level of desire to address housing and the need to get moving/take action on solutions. This combines well with the top messages of the importance of housing for future generations and essential workers like nurses and teachers. 5.Additional community ready outreach on housing: Survey supports continuing community dialogue given support for priorities and messaging around workforce housing and the alignment between the respondents and BOCC.73 Questions? 74 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Property Tax Ballot Language Shall Pitkin County taxes be increased $12,000,000 annually beginning January 1, 2024 and by such amounts are raised annually thereafter from a 2 mill levy on taxable real and personal property within Pitkin County to be used for programs that address workforce retention, access to housing and childcare including, but not limited to: •increasing the supply and access to housing through land and housing acquisition opportunities, partnerships with the private and nonprofit sectors and other jurisdictions, and redevelopments for affordable housing; •supporting access to housing through programs such as deed restrictions and down-payment assistance to ensure that the community’s workforce, individuals, and families can own or rent homes within their communities; •improving the quality and availability of childcare for the community’s working families to ensure available care and safe learning environments; and •training and retaining childcare professionals to provide and expand the quality and availability of child care in Pitkin County; and shall all expenditures be made by the board of county commissioners with the requirement that the funds will be subject to an annual independent audit published on the county’s web site, and shall the resulting proceeds be allowed to be collected and spent by the county notwithstanding any other limitations provided by law? Bonding Ballot Language Shall Pitkin County debt be increased $50 million, with a maximum total repayment cost of not more than $78 million for the purposes of increasing the overall supply of affordable housing for residents of Pitkin County, including: •Acquiring land, water and other property to facilitate the development of affordable housing; •Partnering with private and nonprofit housing providers to increase the overall supply of housing; •Purchasing existing units and properties for conversion to affordable housing units; and •Constructing roads, sidewalks, water and sewer lines and other infrastructure to support the development of affordable housing; And for acquiring, constructing or improving any capital assets that the county is authorized by law to own; and shall the county be subject to an annual independent audit published on the county’s website that reviews such expenditures of this bond? 75 Pitkin County Housing and Child Care Survey Update | June 20, 2023 76 Pitkin County Housing and Child Care Survey Update | June 20, 2023 Turnout:67.05%Turnout:41.49% 2021 turnout: 39.87% Democrat 4,538 33.82%36.88%3.06 39.70%5.88 Unaffilated 6,907 51.47%49.08%-2.39 46.09%-5.38 Republican 1,732 12.91%12.85%-0.06 13.47%0.56 Female 6,406 47.74%49.37%1.63 50.98%3.24 Male 7,008 52.22%50.62%-1.60 49.02%-3.20 Age 18-24 877 6.54%4.16%-2.38 0.81%-5.73 25-34 2,109 15.72%10.34%-5.38 5.16%-10.56 35-44 2,415 18.00%15.78%-2.22 13.08%-4.92 45-54 2,164 16.13%16.72%0.59 15.43%-0.70 55-64 2,280 16.99%19.60%2.61 21.27%4.28 65-74 2,146 15.99%20.16%4.17 25.33%9.34 75+1,428 10.64%13.25%2.61 18.93%8.29 Town/ZIP Aspen/81611 7,767 57.88%57.02%-0.86 58.00%0.12 Aspen/81612 70 0.52%0.50%-0.02 0.54%0.02 SMV/81615 2,299 17.13%16.24%-0.89 15.16%-1.97 Basalt/81621 1,266 9.43%9.67%0.24 9.63%0.20 81623 790 5.89%6.61%0.72 7.01%1.12 81642 41 0.31%0.32%0.01 0.23%-0.08 SMV/81654 890 6.63%7.30%0.67 7.20%0.57 Woody Creek/81656 295 2.20%2.32%0.12 2.23%0.03 Pitkin County Active Voter Data / November 2023 Likely Voter Estimate November 2022 Voters 8,997 November 2023 Likely Voters 5,56713,419 Active Voters Likely Voter Estimate 77 MEMO From: West Mountain Regional Housing Coalition To: Coalition Members Re: Update and Next Steps Date: July 5, 2023 This memo provides an overview of items the West Mountain Regional Housing Coalition has been working on during the first five months of 2023. Items in this update include: • DOLA Proposal for Regional Buy Down Program • WMRHC Strategic Plan • IHOP Research Project • Outreach to potential coalition members • WMRHC Program Director Job Description DOLA PROPOSAL On March 1, the West Mountain Regional Housing Coalition (WMRHC) submitted a proposal to the Department of Local Affairs requesting $3M to create a regional buy down pilot program to help residents purchase homes and convert them into permanent deed restricted affordable housing units. This development neutral approach borrows heavily from a successful buy down program implemented by Eagle County. While the Coalition waits to hear back from DOLA, the Coalition is considering approaching local governments with a request to fund a pilot program locally. Program guidelines are attached. WMRHC STRATEGIC PLAN (2023 – 2026) The first strategic plan has been finalized and is designed to provide guidance to the Board and new staff as the organization becomes more functional. The full plan can be found on the Coalition’s website wmrhousing.org. OUR PURPOSE: We believe a regional approach that leverages the skills and resources of our communities is the foundation for increasing affordable housing. 78 OUR VALUES: • Equity – we advance impactful solutions designed to remove obstacles to affordable housing access. • Regionalism – we demonstrate benefit to all communities in the region. • Innovation – we bring new and creative solutions to meeting the need. • Collaboration – we value and include complimentary initiatives to advance shared goals. • Integrity – we are transparent in our goals, strategies and outcomes. OUR REGION: • WMRHC serves those in Pitkin County, Garfield County and South Western Eagle County. OUR TARGET POPULATION: • WMRHC serves those working for or retired from local employment, who are unable to afford free market housing and where housing costs represent 30% or more of their household income. OUR GOVERNANCE: • WMRHC is a membership-based organization that strives to support members’ regional affordable housing community interests and priorities. OUR APPROACH: • WMRHC is a regional program and service provider with awareness of complimentary solutions/initiatives. • WMRHC is a support to existing affordable housing projects and initiatives (Local Government, Quasi-Governmental, Nonprofits, Private Sector) • WMRHC is committed to developing a process for intentionally partnering with complimentary solutions and initiatives (Local Government, Quasi-Governmental, Nonprofits, Private Sector, Sustainability Organizations) IHOP RESEARCH PROJECT Thanks to a DOLA Innovative Housing Opportunities Program grant, the Coalition hired a consultant team that has been developing several items that each member governments should benefit from. The full report should be complete by the end of the summer. It will include: • Code Analysis and Recommendations – This section looks at how local codes potentially hinder affordable housing development and offers specific recommendations. • Rental Analysis – This section provides a picture of the rental market in each community and the region. • Vacant Land Analysis – This section identifies vacant land controlled by local governments or quasi-governmental entities in the Roaring Fork Valley. • Future Affordable Housing buildout – This section includes information on the current and potential affordable housing development pipeline. 79 The consultant team will meet with each coalition member government to present the findings of the report and discuss possible policy actions in late summer/early fall. OUTREACH TO POTENTIAL COALITION MEMBERS The Coalition has been reaching out to several groups, funders, and organizations about the work of the Coalition. The Roaring Fork School District and Roaring Fork Transportation Authority are two public entities that have taken significant action to create housing for their respective workforces, but both realize the magnitude of the housing challenges in the region. Consequently, the Coalition is in discussion with both RFTA and RFSD about how best to support and benefit from the Coalition’s efforts. WMRHC PROGRAM DIRECTOR JOB DESCRIPTION The Coalition is hiring for a part time Program Director and received a large amount of interest from candidates. Staffing is a critical component for the ongoing success of the Coalition and the Board is developing a 2024-2026 budget that incorporates staffing and organizational development. The Coalition will likely need to revise its funding formula (currently each member pays the same amount - $10K) to one that reflects the organizational goals and the critical importance of affordable housing. 80 Regional Deed Restriction Purchase Program Program Guidelines The West Mountain Regional Housing Coalition’s (WMRHC) Deed Restriction Purchase program provides a mechanism for communities to bridge the gap between what is available on the open market and what is affordable by providing up-front funds towards the purchase of a free market home. The program buys down a market rate home to a more affordable or attainable price for a qualified buyer in exchange for a permanent deed restriction being added to the property. The Program will allow the West Mountain Regional Housing Coalition to make a payment toward an Eligible Household’s purchase price of a free market (not deed restricted) property. The payment will be a lump sum payment made at closing to reduce the principle of the first mortgage loan. In exchange for the payment, a price capped, non-expiring deed restriction will be recorded against the property. The Program will support growing the local deed restricted inventory of for sale homes available to Eligible Households who make the West Mountain Region their permanent residence and work location. By converting an existing open market home into a deed restricted home, that home will be preserved for a local Eligible Household for the future. The Good Deeds Program will be administered by the West Mountain Regional Housing Coalition pursuant to the guidelines set forth below. Purpose of Program This program is intended to allow the WMRHC to make a payment towards the purchase price of a residential property in exchange for the recording of a price capped deed restriction on the property in perpetuity. The payment will be applied at closing to reduce the principal on the first mortgage loan. Eligible Households Applicants must show proof of employment within the WMRHC service area for an average of 1400 hours per year. Employment requirements will be consistent with those of regional housing authorities currently operating in the region. Employees must show at least 75% of these hours are worked for a business that has a brick-and-mortar location in Pitkin, West Eagle, or Garfield Counties. Those working more than 25% of time remotely for out- of-region employers are not eligible. Self-employed applicants must 81 also show proof of a business license attached to a principal business location that is within the service area and that a majority of clients are located in the service area. *Individual funding agencies may dictate a more specific work area for applicants, at the funding agency’s discretion. Service Area The WMRHC program is available for use on properties located anywhere in Pitkin and Garfield Counties. Those located in West Eagle County can participate in the similar program offered by Eagle County Housing Authority. Eligible Properties Single family homes, condominiums, townhomes, duplexes, modular homes or manufactured homes on a permanent foundation taxed as real property within the jurisdictional boundaries of Pitkin County, Garfield County and western Eagle County that are not currently encumbered by a deed restriction, right of first refusal, occupancy requirement, Land Use Regulatory Agreement, or similar program. Maximum Purchase Price of Property $1,000,000 * Individual funding agencies may dictate a different maximum purchase price for properties. Maximum Contribution Amount The WMRHC will contribute a flat 20% subsidy, capped at $200,000 in exchange for a signed price capped deed restriction on the property. *Individual funding agencies may dictate a different maximum contribution amount to be applied to that agency’s funds. Primary Residence Buyer is required to use the property as a primary residence, as defined by overnight occupancy no less than 8 months out of the year. There shall be no short-term rentals allowed. Buyer Down Payment In the case of a property purchase, a minimum down payment of 3% contributed by the Buyer towards the purchase price of the property is required. Buyers are permitted to access down payment assistance programs from other entities or sources. Deed Restriction In exchange for the payment set forth above, a Price Capped deed restriction will be recorded against the property at the time of closing with the County Clerk and 82 Recorder's office. The deed restriction shall govern the future use and transfer of the property to an Eligible Household in perpetuity. Program Compatibility This Program is designed to be compatible and adaptable to all other regional and state down payment assistance programs or similar. Other Real Estate Buyer may not own any other residential real estate or residential property at the time of purchase or for the period the Buyer owns the deed restricted property, regardless of the location of the other property. Term The deed restriction is perpetual and runs with the property and any/all future resale transactions. The property must remain the primary residence of any Buyer and Buyer agrees to recertify their eligibility as an Eligible Household no less than every other year. Recertification Buyers must certify their eligibility as an Eligible Household no less than bi annually. Application Buyer shall find and locate the property available for sale and complete an application. Applications are received on a first come, first serve basis to be time and date stamped in order of completed applications. Applications will be approved at the discretion of the Program Administrator, subject to program guidelines and available funds. With property purchase, a complete application may include: a fully executed Contract to Buy and Sell Real Estate, proof of current employment at a business located in Pitkin, Garfield or Western Eagle County, photo id, tax return, loan application, other income and asset documentation, pre-qualification letter from a lender, and/or other financial documents as listed on the application at time of applying. Pre-approval Potential buyers may receive a pre-approval letter from WMRHC prior to finding and locating the property. The letter will be valid for 6 months. Price Capped Appreciation is capped at the lesser of 3% simple interest annually or the CPI. 83 Future Resale Neither the Program Administrator or WMRHC shall facilitate the resale of any Price Capped deed restricted units, but shall approve all future buyers. No transactional brokerage sales fee will be due to WMRHC. Customary closing costs will be borne by each party. WMRHC reserves the right to first refusal to purchase the property. Applicability All aspects of the Program eligibility and approval are at the sole exclusive discretion of the WMRHC Board of Directors and subject to these Guidelines and availability of funds. These Guidelines may be amended from time to time to effectuate the intent and goals of the Program, and all changes are binding upon program participants. Applications may be denied based on the physical condition of the proposed property, concerns with the purchase agreement or a determination that the deed restriction purchase is not in the best interest of the WMRHC. Program is subject to market conditions. Other In the event of policy conflict between this Program and other Pitkin County, Garfield County or Western Eagle County Affordable Housing Guidelines and Administrative Procedures, the more restrictive Program Guidelines shall control. Program Administrator The WMRHC and/or the IDF or other as assigned by WMRHC. More information www.wmrhousing.org or call (970) 948-4250 These Guidelines are subject to change based on availability of funds, conditions of property and market conditions. WMRHC does not discriminate based on race, color, sex, religion, handicap, familial status, sexual orientation, gender identity, or national origin. 211 Midland Avenue, Suite 201 Basalt, CO 81621 970.948.4150 WMRHousing.org 84