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Durango City Councilors search for ways to trim housing costs

The Durango City Council supported increasing the fair share fees that developers of large projects are required to pay Tuesday with the hope it could encourage them to build affordable units instead. An estimate of how much those fees might be has not been determined yet.

Encouraging developers to build more affordable housing was the Durango City Council’s focus Tuesday.

The council discussed tweaking the city’s fair share ordinance, allowing extra units on a project-by-project basis and encouraging condos.

“This City Council is very sensitive to the need for housing,” said Councilor Sweetie Marbury.

No affordable units have been built since the city enacted the 2008 fair share ordinance, meant to encourage affordable units. Instead, developers have been paying fees which support the Regional Housing Alliance of La Plata County, which works with first-time home buyers.

Raising the fees could help turn that trend around, city staff members told the council.

Under the fair ordinance, developers pay about $9,200 for each unit they build, if they choose not to provide affordable units, said RHA Executive Director Karen Iverson.

“It’s cheap. That’s a deal that any developer would take,” Mayor Dean Brookie said.

He estimated that the fee would likely double to come close to what it costs to build a unit.

If a developer chose to build units to meet their fair share requirements, 16 percent of the units in the development would need to be affordable.

To encourage developers to build instead of paying fees, staff proposed allowing developers extra density and allowing units to be built outside the development.

If allowed, Marbury asked the staff to make sure the off-site units would be built at the same time as the development.

City Manager Ron LeBlanc assured her the city would not allow the developers to sell new units until they fulfilled their agreement.

The council also supported allowing the staff to recommend variance to allow developers to build higher density projects. Normally, staff members cannot recommend a variance to the Board of Adjustment. The board would still have the final say.

These projects would be located in areas of change, along north Main Avenue, west of the U.S. Highway 550/160 intersection and in Three Springs.

Staff members’ support of some variances would last only until the council can review and possibly approve changes to the Land Use and Development Code, said planner Phillip Supino said.

“The purpose would be to serve as a sort of stop gap,” he said.

These developments would need to fall into affordable or attainable price points to gain staff support, according to city documentation.

Councilors also decided to wait on an ordinance that would offer protection to builders from a state law that makes developers of condos more vulnerable to lawsuits.

The Colorado General Assembly could amend the law this session, and the council decided to wait until the state lawmakers’ intentions become clear.

mshinn@durangoherald.com

Jan 25, 2019
Close to $1 million in city fees could bolster affordable housing


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