Salida City Zoning Code

(a)

Promote the construction of housing that is affordable, in the long term, 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, and middle-income residents, for special needs populations and for a significant proportion of those who work and live in the City.

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)

(a)

Any application brought under the annexation or planned development sections of this Code; condominium plats of any size; minor and major site plans; 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, lots, or condominiums 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 16-9-60 and 16-9-70.

(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 16-9-40.

(4)

The proportion of required affordable units, whether for-sale or for-rental, shall generally follow the proportion of for-sale and for-rental market rate units within the overall development, unless otherwise approved by the decision-making body in order to meet the prevailing needs of the local workforce.

(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 16-9-60, Program Requirements for For-Sale Units. All sales, rentals, purchases and leases shall comply with the provisions of this Article.

(d)

Affordability 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, an affordability restriction in a form provided and approved by the City Attorney. Such 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. Listing of the units with Chaffee Housing Authority, the City of Salida, Chaffee Housing Trust, and/or local realty groups/sources is highly encouraged.

(f)

Required Agreements. Those applicants creating residential developments under this Chapter shall enter into an inclusionary housing development agreement with the City. Such agreements may be separate or 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 and type (for-sale or for-rent) of affordable housing units required; and the total number of affordable housing units provided;

(2)

The application of density, parking, and other development standards allowed for projects that provide one hundred percent (100%) of the required inclusionary housing units, as provided in Section 16-9-50;

(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 (6th) market-rate housing unit within the development, unless an alternative schedule is approved by the City; and

(5)

The affordability 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 affordability restrictions are recorded with the Chaffee County Clerk and Recorder.

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)

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. 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 percent (20%) of the total units in the subject development as affordable housing. 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. This alternative, as defined below, 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) new units/lots or less (including condominiums regardless of whether units were previously existing or not).

(d)

Providing Fewer Units at Greater Affordability. 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, including utilities. 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 16-9-60 and 16-9-70 below.

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)

(a)

For Developments of Five (5) or Fewer Units/Lots/Condos. 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, or prior to approval of a final condominium plat. 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 Units/Lots/Condos. When an in-lieu fee is being paid to meet a fractional inclusionary housing unit requirement, the entire fee shall be paid prior to the first building permit being issued for the development, or prior to approval of a final condominium plat. Where no applicable unit sizes have been identified, the calculation of the fee 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. 2025-17, § 2(Exh. A), 10-7-2025)

(a)

Residential development and portions of a planned development 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 reduced dimensional standards and increased height in the MC, MD, and MH districts as stated in Table 2-B, Schedule of Dimensional Standards, and the district-specific standards of [Sections] 16-2-40 through 16-2-60, and utilize the reduced parking requirements for multi-family dwellings stated in Table 4-B, Off-Street Parking Standards by Use.

(b)

The increased height allowances may be utilized only on projects that include a minimum of twenty-five percent (25%) qualifying inclusionary housing on-site.

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)

(a)

Affordable Unit Price.

(1)

The prices charged for any affordable for-sale (ownership) units shall not exceed prices greater than what is considered affordable to households earning either one hundred percent (100%), one hundred twenty percent (120%), or one hundred forty percent (140%) of the Area Median Income (AMI) for Chaffee County. 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/or on file with the Community Development Department. Furthermore, for-sale affordable units shall be subject to the following additional requirements: After the first provided inclusionary housing unit (allowed up to any maximum price noted above), the average sales price of all affordable housing units provided in a project shall not exceed a price considered affordable to households earning one hundred thirty percent (130%) 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 (1) 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 (or owned by) 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 for-sale studio units priced above what is considered affordable to households earning one hundred twenty percent (120%) AMI for Chaffee County shall be eligible to satisfy inclusionary housing requirements.

(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, as specified in Subsection 16-9-20(e).

(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. Such eligibility requirements shall be confirmed by the Chaffee Housing Authority or other organization as directed by the City.

(d)

Resale Restrictions. All affordable for-sale/ownership units developed under this Article shall be subject to the resale restrictions itemized within the affordability restriction required pursuant to Subsection 16-9-20(d) and the Chaffee Housing Authority Community Guidelines.

(e)

Ownership Associations. When accepting an affordable for-sale unit as meeting the inclusionary housing obligation, the Director and/or applicable housing authority will review the homeowner or condominium association declarations to assess the impact on buyers of affordable units. The Director 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 income-qualified owner of an affordable unit may rent the unit to an income eligible renter by a method that complies with the applicable affordability restriction and/or regulations and the Chaffee Housing Authority Community Guidelines. At no point shall such rent (including utilities) exceed a price that is considered 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. For for-sale units only, 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. 2025-17, § 2(Exh. A), 10-7-2025)

(a)

Maximum Rent. Rents charged for any affordable unit shall not exceed a price greater than what is considered 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 CHFA's utility allowance policy. Furthermore, affordable rental units shall be subject to the following additional requirements:

(1)

At least half (½) of all provided IH units shall be rented at prices considered affordable to households earning eighty percent (80%) or less of the AMI for Chaffee County.

(2)

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

(3)

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

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)

To the extent the Director 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 Director under this Article.

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)

For developments containing at least fifty percent (50%) of all the residential units as affordable housing as defined by CRS § 29-32-101 and CRS § 29-32-105(2) (Rentals at less than or equal to sixty percent (60%) AMI and for-sale at less than or equal to one hundred percent (100%) AMI), an applicant may choose to participate in the expedited review process in Section 16-8-80, Expedited Review for Exemplary Affordable Housing.

(Ord. No. 2025-17, § 2(Exh. A), 10-7-2025)