(a)

Promote the construction of housing that is affordable to the community's workforce;

(b)

Retain opportunities for people that work in the City to also live in the City;

(c)

Maintain a balanced community that provides housing for people of all income levels; and

(d)

Ensure that housing options continue to be available for very low-income, low-income, mode rate, and middle-income residents, for special needs populations and for a significant proportion of those who work and live in the City.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2024-07, § 2, 7-16-2024)

(a)

Any application brought under the annexation or planned development sections of this Code; condominium plats of any size; duplex conversion subdivisions; and minor and major subdivision sections of this Code, as well as multi-family residential rental projects of five (5) or more units are required to provide at least sixteen and seven-tenths percent (16.7%) (i.e., one-sixth (⅙) of the total number of new residential dwelling units or lots as affordable dwelling units, pursuant to requirements set forth in this Article, and subject to the following standards:

(1)

The prices for sale or rents charged for permanently affordable priced dwelling units shall not exceed a price that is affordable to a household earning the applicable percentage of Area Median Income (AMI) for Chaffee County as defined annually by the Colorado Housing Finance Authority (CHFA), at the time such unit is sold or rented, and as further specified in Sections 16-13-60 and 16-13-70.

(2)

Affordable dwelling units shall be permanently restricted unless a different timeframe is required as a part of a low-income housing tax credit project or otherwise time restricted by federal or state grant funds.

(3)

If the calculation for inclusionary housing results in a fraction of a dwelling unit, the fraction of the unit shall be provided as a complete affordable unit or a fee-in-lieu shall be provided per Section 16-13-40.

(4)

The proportion of required affordable units, whether for-sale or for-rental, shall follow the proportion of for-sale and for-rental market rate units, unless otherwise approved by the decision-making body. For example, if the project includes all for-sale units, then all of the required affordable units shall be for-sale units. If the project includes half for-sale units and half for-rental units, that same percentage of for-sale and for-rental affordable units shall be provided.

(b)

Units built as affordable in the project should be comparable to the market rate housing units in exterior finish and design and integrated into the overall project.

(c)

Income Eligibility Required. An affordable dwelling unit created pursuant to this Article shall be purchased, owned, leased or occupied exclusively by or to a program eligible household. A private owner of a single affordable unit may rent the unit in accordance with the provisions of this Article as set forth in Section 16-13-60, "Program Requirements for For-Sale Units." All sales, rentals, purchases and leases shall comply with the provisions of this Article.

(d)

Deed Restriction Required. No person offering an affordable dwelling unit for rent or sale pursuant to this Article shall fail to lawfully reference in the grant deed conveying title of any such unit, and record with the Chaffee County Clerk and Recorder, a deed restriction in a form provided and approved by the City Attorney. Such deed restriction shall reference applicable contractual arrangements, deed restrictions and resale restrictions as are necessary to carry out the purposes of this Article.

(e)

Good Faith Marketing Required. All sellers or owners of affordable dwelling units shall engage in good faith marketing and public advertising efforts each time an affordable dwelling unit is rented or sold such that members of the public who are qualified to rent or purchase such units have a fair chance to become informed of the availability of such units.

(f)

Required Agreements. Those applicants creating residential developments under this Chapter shall enter into an inclusionary housing development agreement with the approving body. Such agreements may be part of a development agreement, annexation agreement, subdivision agreement, and/or noted on the recorded plat or planned development plan, and shall document how the applicant will meet the requirements of this Article including:

(1)

Defining the inclusionary housing development, including the total number of units or lots; the total number of affordable housing units required; and the total number of affordable housing units provided;

(2)

The application of density, parking and development standards allowed for projects that provide one hundred percent (100%) of the inclusionary housing requirements, as provided in Section 16-13-50;

(3)

Where applicable, design standards to assure the affordable units will be comparable to market rate units and are integrated into the development;

(4)

The requirement that each required affordable housing unit must receive its certificate of occupancy before development of every sixth market-rate housing unit within the development, unless an alternative schedule is approved by the City; and

(5)

The deed restrictions and additional agreements, in a form acceptable to the City, as necessary to carry out the purposes of this Article.

(g)

Accessory dwelling units shall not be considered inclusionary housing for the purpose of compliance with the requirements of this Article.

(h)

An applicant shall not be eligible to submit for a building permit until the applicable affordable housing agreement is approved by the applicable approving body and such agreement is recorded with the Chaffee County Clerk and Recorder. Additionally, a property shall not receive a certificate of occupancy until the required deed restrictions are recorded with the Chaffee County Clerk and Recorder.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2022-05, § 6, 4-5-2022; Ord. No. 2023-10, § 2, 7-5-2023; Ord. No. 2024-07, § 2, 7-16-2024)

An applicant may seek an alternative to providing the required percentage of affordable housing under this Article by any of the following methods:

(a)

Providing the Required Housing Off-Site. This may be met only through the dedication of land, if approved by the City, to the City or a qualified non-profit housing developer for the required development of such units, with the guarantee that the land to be dedicated will allow for, and be developed with a minimum number of twenty-five percent (25%) of the total units in the subject development as affordable housing. Each lot shall have sufficient area devoid of environmental or other constraints to allow construction of the required development of such units. All public infrastructure improvements to support development of the required units shall be in place prior to conveyance, or sufficient security in accordance with the Municipal Code shall be provided. Dedication of the lots shall occur at the same time as plat or other applicable recordation of the development.

(b)

Dedicating Land Within the Project. Provided it is large enough and located appropriately to accommodate at least the minimum number of required affordable units, land within a project may be dedicated to the City or a qualified non-profit housing developer for the required development of such units, as approved by the City. The units to be built within the project shall be comparable to the market rate housing units in exterior finish and design to blend into the overall project. Each lot shall have sufficient area devoid of environmental or other constraints to allow construction of the required development of such units. All public infrastructure improvements to support development of the required units shall be in place prior to conveyance, or sufficient security in accordance with the Municipal Code shall be provided. Dedication of the lots shall occur at the same time as plat or other applicable recordation of the development.

(c)

Paying a Fee in Lieu of Providing Units as Defined in Section 16-13-40. This alternative is only available if the calculation for inclusionary housing results in a fraction of a dwelling unit above a whole number, or if the development is for five (5) units or lots or less.

(d)

For rental units only, providing fewer units, but which are affordable to households earning sixty percent (60%) or less of the AMI for Chaffee County for rental projects. For the purposes of this option, an affordable rental unit at sixty percent (60%) AMI or less shall equal one and one-half (1.5) inclusionary housing units at any other AMI level specified in Sections 16-13-60 and 16-13-70 below.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2022-05, § 7, 4-5-2022; Ord. No. 2023-10, § 3, 7-5-2023; Ord. No. 2024-07, § 2, 7-16-2024)

(a)

For Developments of Five (5) or Fewer Lots or Units. If an in-lieu fee is permitted and chosen for all or part of the inclusionary housing required for the project, the applicable fee shall be calculated at the time of complete building permit submittal as described in the City's fee schedule, established, adopted and amended by City Council from time to time. No building permit shall be issued until one-half (½) of the in-lieu fee required has been paid. The remaining half of the in-lieu fee shall be paid prior to issuance of the certificate of occupancy.

(b)

For Developments of Six (6) or More Lots or Units. When an in-lieu fee is being paid to meet a fractional unit requirement, the entire fee shall be paid prior to the first building permit being issued for the development, and where applicable, shall be based upon the average single-family dwelling size in Salida as utilized in the current fee schedule fee-in-lieu calculation.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2021-10, 7-6-2021; Ord. No. 2022-05, § 8, 4-5-2022; Ord. No. 2024-07, § 2, 7-16-2024)

Residential development within the zoning districts of C-1, R-2, R-3, R-4 and RMU; and portions of a planned development with the underlying zoning districts of C-1, R-2, R-3, R-4 and RMU; that are subject to inclusionary housing development requirements and are providing one hundred percent (100%) of the required affordable housing within the development, may increase the allowed density and utilize the lowered dimensional standards stated in Table 16-F, Schedule of Dimensional Standards, within these districts and utilize the reduced parking requirements for multi-family dwellings stated in Table 16-J, Off-Street Parking Standards by Use. To ensure the integration of the affordable residential units into the development, these standards shall apply to all of the residential units of the subject development within parcels with the above zoning or underlying zoning, that include a minimum of sixteen and seven-tenths percent (16.7%) affordable housing.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2022-05, § 9, 4-5-2022)

Editor's note— Ord. No. 2022-05, § 9, adopted Apr. 5, 2022, amended the title of § 16-13-50 to read as herein set out. The former § 16-13-50 title pertained to density, parking and development standards for inclusionary housing developments.

(a)

Affordable Unit Price. The prices charged for any affordable for-sale (ownership) units shall not exceed prices greater than what is affordable to households earning one hundred percent (100%), one hundred twenty percent (120%), or one hundred forty percent (140%) of the Area Median Income (AMI) for Chaffee County. Furthermore, for-sale affordable units shall be subject to the following additional requirements:

(1)

After the first provided inclusionary housing unit, the average sales price of all affordable housing units provided in a project shall not exceed a price affordable to households earning one hundred thirty percent (130%) or less of the AMI for Chaffee County;

(2)

For projects providing multiple affordable for-sale units, and to create parity across levels of affordability, the total number of affordable units deed-restricted at one of the applicable AMI levels shall not exceed the total number of affordable units deed-restricted at any of the other applicable AMI levels by more than one (1) unit, with the exception of units built on land dedicated to the City or to a qualified non-profit developer, as part of a LIHTC project, or unless otherwise specifically approved by City Council;

(3)

No studio units above one hundred twenty percent (120%) AMI for Chaffee County shall be eligible to satisfy inclusionary housing requirements; and

(4)

The specific affordable unit price charged for the applicable AMI level shall be based on the current maximum sale price as identified by the Chaffee Housing Authority and/or the City Administrator or their designee, and as annually published on the City of Salida's website and on file with the Community Development Department in City Hall.

(b)

Approved Purchasers for Affordable For-Sale Units. A developer or owner shall sell to a qualified purchaser after completing a good faith marketing and selection process approved by the City and applicable housing authority.

(c)

Sale Restriction. No person shall sell an affordable for-sale unit except to a person that meets the income, asset and other eligibility requirements of this Article or any asset and income eligibility requirement that is included in any applicable contract or deed restriction or any other agreements to which the City is a party or beneficiary.

(d)

Resale Restrictions. All affordable for-sale/ownership units developed under this Article shall be subject to the resale restrictions itemized within the deed restriction required pursuant to Subsection 16-13-20(d).

(e)

Ownership Associations. When accepting an affordable for-sale unit as meeting the inclusionary housing obligation, the City Administrator and/or applicable housing authority will review the homeowner or condominium association declarations to assess the impact on buyers of affordable units. The City Administrator and/or applicable housing authority is authorized to establish rules regarding allowable terms in condominium declarations in order to ensure that the purposes of this Article are accomplished.

(f)

Rental Restriction. The qualified-owner of an affordable unit may rent the unit to an income eligible renter by a method that complies with the applicable deed restriction and/or regulations. At no point shall such rent price exceed a price that is affordable to a household earning eighty percent (80%) of the Area Median Income (AMI) for Chaffee County, as defined annually by CHFA.

(g)

Income Cap. The City shall allow a nineteen percent (19%) buffer between the price cap and the income cap to provide flexibility for homebuyers to qualify for financing without being cost burdened. For example, if a unit shall not exceed a price greater than what is affordable to households earning one hundred twenty percent (120%) of the Area Median Income for Chaffee County, households earning incomes of up to one hundred thirty-nine percent (139%) of the AMI can qualify for such unit.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2022-05, § 10, 4-5-2022; Ord. No. 2023-10, § 4, 7-5-2023; Ord. No. 2024-07, § 2, 7-16-2024)

Editor's note— Ord. No. 2024-07, § 2, adopted July 16, 2024, amended the title of § 16-13-60 to read as herein set out. The former § 16-13-60 title pertained to program requirements for for-sale units.

Maximum Rent. Rents charged for any affordable unit shall not exceed a price greater than what is affordable to households earning eighty percent (80%) or one hundred percent (100%) of the AMI for Chaffee County, as defined by CHFA. Maximum rental rates provided by CHFA are inclusive of utilities, as defined by CHAF's utility allowance policy. Furthermore, affordable rental units shall be subject to the following additional requirements:

(a)

At least half of all provided units shall be rented at prices affordable to households earning eighty percent (80%) or less of the AMI for Chaffee County.

(b)

No studio units rented above eighty percent (80%) AMI for Chaffee County shall be eligible to satisfy inclusionary housing requirements.

(c)

Qualified Household. Rental units shall only be rented to or occupied by an income-qualified household as defined in the deed restriction and as approved by the City and/or the applicable housing authority.

(Ord. No. 2018-14, § 1, 10-2-2018; Ord. No. 2022-05, § 11, 4-5-2022; Ord. No. 2024-07, § 2, 7-16-2024)

To the extent the City Administrator deems necessary, rules and regulations pertaining to this Article will be developed and approved by the City Council, and thereby maintained and enforced in order to assure that the purposes of this Article are accomplished. No person shall violate any rule or regulation issued by the City Administrator under this Article.

(Ord. No. 2018-14, § 1, 10-2-2018)