Plan calls for 100 new affordable housing units through 2026

Fort Lupton councilors overcame some reservations to join a statewide affordable housing effort.

Fort Lupton City Planner Sean McDermott told councilors that joining  Proposition 123 fund made sense.

"Staff recommends approval, but if we don't opt-in now, there is an option for you to join later,” McDermott said at the Sept. 19 City Council meeting. “But we see this is the best option for the city.”

Proposition 123, approved last year, created the State Affordable Housing Fund, nearly $300 million in state income tax revenue designated to address housing issues. 

The money from the state's Affordable Housing Fund could distributed to purchase land set aside for development later on, to create homeless programs, make rents more equitable, promote home ownership, pay debts, and build new units.

To opt-in to the fund, Fort Lupton needs to commit to building a certain amount of affordable housing units over the next three years.

“Staff is recommending filing commitment to use the Weld County data to build 97 to 102 units after the three years, which would be about 33 to 34 units per year,"  McDermott said. “The affordable sale price would be about $468,000 to $551,000, and the price for rental units would be about $1,300 to $1,500, should the motion pass.”

McDermott said city staff would be working this week on developing an actual estimate, having a couple of workshops with state guidance resources to hash out the exact numbers.

City Councilors told the planning department they had some concerns. Mayor Zo Hubbard asked if the city was large enough to be guaranteed money from the fund. McDermott said there are no guarantees.

Councilwoman Valerie Blackston asked what if we don't meet the housing quota after three years? She also wondered what would happen to the money if Fort Lupton could not meet the obligations they set.

McDermott said the program has provisions that could allow the city to include projects in the program beyond the initial three years, up to five years.

And McDermott said the city simply has to issue permits for the project to count.

"The city could sit out a certain project, but they require certain stipulations, which would apply to developers,” he said. “If we approve it, it would be project-specific. We would not participate in it, if we don't hit our goal."