Affordable Housing in Crested Butte

2010 Affordable Housing Task Force NameRepresenting Reed BetzTown Council John WirsingTown Council, AH resident, contactor Randy SwiftHomebuilder David OwenHousing Authority & Realtor John SaleHousing Authority & CBMR Heli Mae PetersonSmall business, AH resident Jeff BuehlerBanker Margot LevyCitizen John HessPlanning Dept. Bob GillieBuilding Dept. Melanie ReesAH Strategic Planner

The Problem “ In Crested Butte and similar communities where land is expensive and housing demand is fueled by wealth from outside the region, the private market tends to supply housing that is priced beyond the reach of most local employees.” Town of Crested Butte Affordable Housing Strategy Support Study, March 2010

2000 to 2009 median price of homes grew over 200% median income grew 45%.

2009 – Crested Butte $ 60,000 - Median income $802,500 - Median price of all units (listed for sale – in May SFR & condos), $228,540 - annual income needed for $802,500 home. $283,000 - needed to afford the median priced SFR.

2010 – Crested Butte $ 60,000 – Median income $795,000 -Median price of all units (listed for sale – in Oct SFR & condos) $226,600 - annual income needed for $795,000 home (with $40,000 down payment (5%)) $230,024 - Annual income needed to afford median priced SFR (with $42,000 down payment (5%). ($849,450 SFR )

What can we afford? $60,000 x 30% x 80% = $14,400 / 12 = $1,200 / mo. = $200,000 6% for 30 years + 5% down = $210,250

Change in Occupied Units

59% of the Crested Butte “Needs Assessment” responders feel that housing is: the most serious, or a critical problem in the community. Crested Butte Affordable Housing Strategy Support Study, March 2010

Why should we care? Ensure there is housing for essential jobs: –fire fighters –police officers –teachers –medical practitioners –snow plow drivers Employees are forced to commute long distances, in sometimes dangerous conditions, to find homes in less expensive communities.

What are we doing about this? 1,063 residential units in Crested Butte units (17.6%) deed restricted. 48.1% (average) new units built since 2000 have been deed restricted.

What are we doing about this? Red Lady Estates -10 mobile homes Town Ranch house- 3 apartments Poverty Gulch-10 condos Paradise Park

What are we doing about this? Paradise Park – 10 Mutual Self help Build – 1 Town Manager’s house and acc. dwelling – 1 Habitat for Humanity – 4 SFR homes – 3 Town built duplexes

What are we doing about this? Required deed restricted units in Annexations – Kapushion -5 – Verzuh-8, plus land for Paradise Park

What are we doing about this? Incentives – 2/3 reduction in tap fees for deed restricted units 65 Accessory Dwellings 43 in commercial buildings 13 MFR 15 SFR

What are we doing about this? Additional (bonus) square footage if the square footage is deed restricted residential – 8 units in B1 zone

How much has Town spent ? ExpensesRevenues Poverty GulchInfrastructure$ 31,710 Tap fee reductions 70,000 Paradise ParkInfrastructure 680,102 L ot Sales $565,210 Duplex construction (6) 753,734 Duplex sales (4)479,160 Manager’s house & acc 397,343 Tap fees 566,094 USDA grant 21,761 Energy Impact grant224,026 Payment-in-lieu fees ,770 Total $2,698,668 $1,754,927 Paid by other town sources$943,741

Payment-in-Lieu $464,770 - collected to since 2004 $ median per sq. ft. cost for residential 1,217 - # sq. ft. fee could build at market rates $ average cost / sq. ft. for AH 3,098 - # sq. ft. fee could build at AH rate 900-1,000 sq. ft. - average size AH unit built by town

Jobs projected since jobs projected, given AH fees collected (Using current jobs generated / sq. ft. built (residential and commercial)) 137 people (after applying 1.28 jobs / person) housing units needed (after applying 1.71 employees / household)

Commercial Job Generation Rates Gunnison CountyMerged Database Jobs/1,000 sq ft NJobs/1,000 sq ft N Bar/restaurant Construction Education Office Government Real Estate/prop. Manage Retail sales Service Rec./attractions/amusements Other Overall Median ,860

Residential Job Generation Rates by Size Finished Sq FtGunnison CountyMerged Database <1,000 s.f..16 jobs0.10 jobs 1, , , , , , , , , , , ,999n/a0.63 7, , , Number of Cases 80 3,362

What is recommended? Goal: Maintain a diverse and enduring community by providing dispersed housing for people of all economic levels, employees, and people who contribute to the community, in a manner that is consistent with the historic character of the Town.

What is recommended? Policy 2: Construction of AH units should outpace the development of free-market homes. Policy 4:Those who create the need for AH should build AH to meet the housing needs of the people who will work in the new commercial, lodge, or residential spaces. ************Payment of fees-in-lieu of units should only be used for fractions of units.

What is recommended? Policy 6:The percentage of occupied housing units (owner occupied or long-term rentals) in annexations should be increased to 70%. Policy 10:Disperse AH throughout Town. Policy 11:Acquire land for AH.

What is recommended? Policy 12:Provide a variety of housing types…to accommodate the desired population diversity and maintain a mix of housing types similar to that found in Crested Butte today.

What is recommended? Policy 13:Housing design should be compatible with design in the vicinity of AH and quality should be sufficient for long-term livability and energy efficiency.

What is recommended? Policy 21:Focus on year-round residents, not seasonal workers. Policy 23:The current mix of incomes is as follows, and affordable housing should be designed to serve Categories 1 through 4: Categories 1low income 40%< 80% AMI 2moderate/middle income 23% 81% to 120% AMI 3 upper- middle income 16% 121% to 160% AMI 4 upper income 10% 161% to 200% AMI 5 high income 11% >200% AMI

AMI Distribution

What is recommended? Policy 30:…affordable housing requirements should vary by size of the home. Policy 31:…occupants of units that get a tap fee reduction should earn at least 80% of their income in Gunnison County.

What is Recommended? Establish a permanent Affordable Housing committee to: – guide affordable housing projects, and – make Town policy recommendations to the Town Council.

What is recommended? Residential: Stepped up rate as unit size grows: < 1,999 sq. ft. 20% mitigation rate:.016 AH units or $2.85 per sq. ft. of free market residential unit built. 2,000 to 2,999 sq. ft. 30% mitigation rate:.033 AH units or $3.50 per sq. ft. >3,000 sq. ft. 40% mitigation rate:.061 AH units or $4.50 per sq. ft.

What is recommended? Commercial: mitigation rate for construction of new commercial space: 25% of the housing demand it generates. eg. for each 2,200 sq. ft. of new commercial, 1 new deed restricted unit should be built.

Commercial Example Sq. Ft. to be built2,200 jobs/1,000 SF 4 median Jobs generated 8.8 Employees per household 1.7 Jobs per employee 1.28 Housing demand (units) 4.0 Mitigation Rate 25% DR units Produced 1.01

Commercial payment-in-lieu For fractions of a unit, only 1% mitigation rate = $ 3.73 / new sq. ft. 10% % % % % %

Housing units – needed for Majestic Plaza (20,000 sq. ft.) 9 provided 1% mitigation rate 1 housing units needed 10% 4 20% 8 25% %11 40%15 50%19