During the Fraser Board of Trustees meeting on July 2, trustees were presented with a proposed code amendment that would give affordable housing zoning incentives to developments that promise to provide permanent affordable housing.

The newly proposed code amendment presented at the meeting gives greater flexibility to builders and developers regarding certain zone district standards, such as maximum density, maximum building height, minimum open space and minimum parking requirements for projects that include affordable housing guarantees.

The proposed amendment would create a new section — the Affordable Housing Incentives Developments — in the town code to allow for modifications to various zoning standards in exchange for the creation of deed-restricted affordable housing.

Back in February, assistant town manager Sarah Catanzarite presented an affordable housing program workshop to the board of trustees. This provided a high-level overview of policies and strategies the town could consider in order to address the local housing affordability crisis.

The workshop provided information from a “shopping list” of possible strategies that the Colorado Department of Local Affairs Strong Communities Program has put together regarding best land use practices for tackling housing affordability.

So far, the trustees, in conjunction with the Fraser Planning Commission, have approved two initiatives to incentivize affordable housing development for builders. One of the new incentives is a policy that reduces or waives various fees for projects that create affordable housing.

The other new change is a code amendment that allows accessory dwelling units as a use-by-right in the low-density, single-family residential zone district, meaning that property owners can build an accessory dwelling unit without needing permits or town approval.

Accessory dwelling units can be utilized in the effort to create more affordable housing. Commonly known by names like granny cottage, in-law suit or backyard cottage, these secondary small dwellings are on the same land or attached to a regular single-family home.

Prior to coming to the board, the Fraser Planning Commission reviewed the code amendment at their regular meeting on May 28 before recommending approval.

A memo to the board states that the Riverwalk and St. Louis Landing Overlay zone districts currently have a density bonus provision written into their zoning standards. The new amendment would effectively take the density bonus language from the Riverwalk and St. Louis Landing Overlay zone districts and move it to a new section titled “Affordable Housing Incentives” in the town code. Density bonuses allow developers or builders to have higher-density projects to typically permitted.

The incentives were also expanded to other zone districts, like the high density multifamily residential and business districts. This amendment is designed to not only increase the attractiveness of existing provisions, but also expands the incentives to zone districts that currently cannot take advantage of the existing bonus policy unless a rezoning is approved.

In order to be eligible for the incentives, at least 20% of all dwelling units within the development must be deed-restricted as affordable housing.

It also requires that the deed-restricted units be no more than 15% smaller in total floor area than a corresponding market rate unit, and that deed-restricted units must have a similar bedroom-to-unit ratio as market rate units.

Several trustees expressed hesitancy about the allowed height increase, but town staff explained that the extra height allowance was not hugely significant and that the board would also have some say in the building approval process.

The memo states that town staff is “optimistic this code amendment will result in additional affordable housing to be built alongside market rate housing as properties in Fraser are developed.”

Town staff who worked on the proposed code amendment said that they looked at other towns like Frisco and their affordable housing incentives to design the incentives.

During the public hearing on the item, one speaker said that he was concerned that this did not consider how a developer would approach their building process, and that the incentives would remain underutilized.

Trustee Katie Soles moved to accept the amendment, and it passed 5-1 with trustee Adam Cwiklin voting against.