HomeMy WebLinkAbout12-05-22 Study Session Agenda PacketSTUDY SESSION AGENDA
CITY COUNCIL
CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO
December 5, 2022
6:30 pm
This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th
Avenue, Municipal Building, if allowed to meet on that date per COVID-19 restrictions.
Some City Council members or City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways:
1.Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speakupon arrival
2.Provide comment in advance at www.wheatridgespeaks.org (comment by noon onDecember 5, 2022)
3.Virtually attend and participate in the meeting through a device or phone:
•Click here to join and provide public comment
•Or call +1-669-900-6833 with Access Code: 861 0325 9137
Passcode: 168519
4.View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTubeLive at https://www.ci.wheatridge.co.us/view
Individuals with disabilities are encouraged to participate in all public meetings sponsored by
the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in
participating in a meeting and need inclusion assistance.
Public Comment on Agenda Items
1.Colorado School of Mines Tabor Lake Trail Presentation
2.Affordable Housing Strategy and Action Plan
3. Staff Report(s)
4.Elected Officials’ Report(s)
Memorandum
TO: Wheat Ridge City Council
THROUGH: Karen A. O’Donnell, Parks and Recreation Director Patrick Goff, City Manager
FROM: Brandon Altenburg, Grant and Special Project Administrator
DATE: December 5, 2022
SUBJECT: Colorado School of Mines Tabor Lake Trail Presentation
ISSUE: Throughout 2022, a Colorado School of Mines Capstone Project student team has conducted public engagement, assessed the area around Tabor Lake, and developed a design proposal for an
accessible, safe, and stable trail around Tabor Lake with related amenities. Their final project
presentation on 12/5 will provide a concise project overview.
BACKGROUND:
The School of Mines capstone program is a required course for School of Mines students to
graduate. The course covers 2 semesters and prospective “clients” can submit projects to request that a student team be assigned to work on their project. Government entities do not have to pay
a fee to participate in the program. The Parks and Recreation Department submitted the Tabor Lake Trail design project in 2021 to this program, and it was selected and assigned to this student team. City staff, industry technical advisors, and faculty have worked with the students
throughout the past year. More information is available here: https://capstone.mines.edu/
PROPOSED ACTION: Following the presentation, please ask the student team any relevant questions that you have. In addition to providing valuable work for the City, this program is a learning experience for the
students who are about to graduate and enter the workforce. Presenting “real-world” work in
front of a City Council is a significant accomplishment and learning experience for the team. Council questions and input can also inform the next steps in the project.
NEXT STEPS:
The student work cannot be accepted as official engineering plans as certified engineers need to develop and “stamp” the work. The student work can be provided to a professional engineering
firm as baseline work and guidance to develop stamped plans. The City has earmarked ARPA funds for the design and construction of the Tabor Lake Trail and recently learned that Jeffco Open Space Trails Partnership Funds will also be awarded to help fund this trail project. In 2023,
the Department plans to contract with a design firm to complete the trail design. Trail
construction will follow shortly thereafter.
Item No. 1
Memorandum
TO: Mayor and City Council
THROUGH: Kenneth Johnstone, Community Development Director
Lauren Mikulak, Interim Community Development Director
Patrick Goff, City Manager
FROM: Jeff Hirt, Senior Neighborhood Planner
DATE: November 25, 2022 (for December 5 study session)
SUBJECT: Affordable Housing Strategy and Action Plan
PURPOSE:
This study session is a follow-up to the August 15, 2022 discussion of the Affordable Housing
Strategy and Action Plan. The purpose of this December 5 study session is for City Council to:
•Review a draft Affordable Housing Strategy and Action Plan (the “Strategy”);
•Provide feedback on the recommended policies, principles, and actions; and
•Advance towards City Council adoption of the Strategy (early 2023).
BACKGROUND:
Addressing affordable housing is one of the City and State’s most pressing issues. The Colorado
Department of Local Affairs (DOLA) awarded the City a grant in October 2021 to complete an Affordable Housing Strategy and Action Plan. A contract was awarded to the consultant team czb, LLC on April 8, 2022, to lead the project. More project information can be found at whatsupwheatridge.com/housing.
City Council’s extended study session on August 15, 2022, shaped the draft Strategy provided in
Attachment 1. The packet for that meeting included project background, results from community input, and a summary of stakeholder discussions (including boards and commissions and developer focus groups). The August meeting included a deep dive on why housing is so
expensive, and it evaluated possible City interventions based on varying household incomes.
City Council’s feedback and direction included:
•Support for the proposed approach allocating City resources based on household profiles.This includes a supportive City role for low-income housing ($50,000 or less householdannual income) and a more proactive City role for households over $50,000 in annual
income, with strategies calibrated to the $50-$75k, $75-$100k, and $100-$150k income
ranges.
•Support for most of the intervention concepts presented, and a request for more details oncertain ideas including inclusionary housing policies, funding sources, and preservation
of existing affordable units.
Item No. 2
2
Draft Strategy Overview The feedback from City Council on August 15, 2022, regarding the target markets and
intervention concepts has acted as the foundation and organizing element of the draft Strategy
included as Attachment 1. Key elements of the draft Strategy include:
• Part 1 describes housing marking conditions and the resulting affordability impacts on various types of households.
• Part 2 recommends Policies and Principles that act as a foundation for future City housing
decisions – whether those be zoning code changes, allocation of City resources, or City Council decisions on large redevelopment sites like the Lutheran Legacy Campus.
• Part 3 provides an Action Plan that identifies four (4) key opportunities to address affordable
housing in Wheat Ridge. Each opportunity has specific action items that are organized by
priority and described with respect to household income and next steps. Included among these items are policies and actions related to the Lutheran Legacy Campus and inclusionary housing. Part 3 serves as a workplan for the next several years.
• An appendix summarizes additional affordable housing tools, many of which relate to the DOLA grant which funded this Strategy and are required to be evaluated as part of the grant
program. Inclusionary Policies in the Draft Strategy At the August 15 study session, City Council had some discussion and questions about the
concept of inclusionary housing policies. As a reminder, this is a policy or regulation that would
require creation of some number of affordable housing units within an otherwise market-rate housing project or an alternative compliance path such as a fee-in-lieu. City Council’s feedback was that a citywide one-size-fits-all approach may not be appropriate, and any such program
would have to be calibrated to Wheat Ridge’s housing market and policy goals. Based on this
feedback, czb recommends an inclusionary housing approach that is more targeted and is associated with several potential action steps:
• Inclusionary housing requirements should be considered as part of any development project for which the City is a financial parter or is providing incentives (described on
pages 40-41 of the Strategy).
• Inclusionary housing requirements should be considered as part of the Lutheran Legacy Campus (described on pages 46-47 and 53 of the Strategy).
• Inclusionary housing requirements should be considered as part of a retooling of the zoning code, particularly for townhome projects under MU-N, a potential R-4 district
(described on pages 42-43 and 50 of the Strategy), and projects in mixed use zone districts. If adopted, the Strategy acts as an advisory document to support future City Council decisions
related to affordable housing. The Strategy acknowledges that additional housing-related
discussions will be a necessary part of the Comprehensive Plan update, but action need not wait. CITY COUNCIL FEEDBACK REQUESTED
The project team is requesting feedback on the following questions from City Council.
1. Do you agree with the Recommended Policies and Principles set forth in Part 2 of the
Strategy? 2. Are there any affordable housing tools missing from Part 3 or the appendix that the project team should evaluate or include in the Strategy?
3
3. Do you have any questions about any of the recommended action items?
4. Do you have any other specific topics or questions that need to be addressed before the
Strategy is presented to City Council for adoption in 2023?
Attachments
1. Draft Affordable Housing Strategy and Action Plan
DRAFT
Prepared by czbLLC
NOVEMBER 2022
Acknowledgements Table of Contents
2 3Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Special thanks to the Wheat Ridge Planning Commission,
the board of the Wheat Ridge Housing Authority, the Race
and Equity Task Force and members of the development
community who provided their insights, questions, and
feedback to help shape this Affordable Housing Strategy
and Action Plan.
The following people made the Affordable Housing
Strategy and Action Plan possible:
Mayor Bud Starker
CITY COUNCIL
District I
Janeece Hoppe
Judy Hutchinson
District II
Rachel Hultin
Scott Ohm
District III
Amanda Weaver
Korey Stites
District IV
Leah Dozeman
Valerie Nosler Beck
CITY STAFF
Patrick Goff, City Manager
Marianne Schilling, Assistant to the City Manager
Kenneth Johnstone, AICP, Community Development Director
Lauren Mikulak, AICP, Planning Manager
Jeff Hirt, AICP, Senior Neighborhood Planner
Ashley Holland, Neighborhood Engagement Specialist
The Affordable Housing Strategy and Action Plan was supported
by funding from the Colorado Department of Local Affairs.
Market Conditions and
Needs Assessment
PART 1
Policies and Principles to
Guide Housing Actions
PART 2
Taking Action
PART 3
10
26
32
Executive Summary
Introduction
How to Use this Document
4
8
9
60 Appendix
Incentives Conditioned on Inclusionary
Outcomes
City provision of incentives to projects with a
residential component requires the project
to include affordable housing and a variety
of price points to achieve mixed-income
outcomes.
Full Housing Ladder
Wheat Ridge recognizes that its economic
and social strength and resilience benefit
when households of all types are able to find
suitable housing options in the city across the
stages of life.
Economic and Income Diversity
Wheat Ridge embraces economic and
income integration citywide and within its
neighborhoods. It rejects economic and
income segregation that may result from the
natural functioning of housing markets.
Housing Type Diversity
Wheat Ridge places a high value on its diverse
housing stocks and seeks to achieve and
maintain a well-balanced supply of housing
types.
Material Support for Affordable Housing
Wheat Ridge acknowledges the difficulties
of providing affordable housing and supports
public, private, and nonprofit organizations
developing affordable housing in the city.
Executive Summary
4 5Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Challenges in the Wheat Ridge
Housing Market
Much has changed in
Wheat Ridge since the
mid-2000s, when the city
faced a dearth of economic
development opportunities
and homeowner
investment and community
leaders were focused
on revitalization. By 2021,
the median sale price for
a house in Wheat Ridge
was nearly $600,000, which meant
a new buyer household in Wheat
Ridge likely needed an income of at
least $150,000 per year (vs the 2020
median owner-occupied household
income of $91,000) to afford a house. The number
of households who can afford to buy a home and
put down roots in Wheat Ridge is shrinking rapidly,
inevitably squeezing out many of those who grew
up here. Wheat Ridge’s economy also employs
thousands of people in education, healthcare, local
government, and the management of private sector
services that are critical to daily life in the community,
and whose wages are less and less sufficient to secure
housing in Wheat Ridge each year.
In 2022, a renter household needed
an income of $56,000 to afford
the median priced two-bedroom
apartment (vs the 2020 median
renter-occupied household income
of $42,000) and any renter household with an annual
income below $50,000 was at risk of an affordability
challenge. As of 2020, more than half of all Wheat
Ridge renter households paid 30% or more of their
household income toward housing costs. This is the
government definition of unaffordability, or a “cost-
burdened” household.
Target Markets
for Affordable
Housing
Strategy
The City of Wheat Ridge
has a range of current
and potential tools and
capabilities to take action
in support of affordable
housing options across
a range of household
incomes. But the City can
directly impact some more
effectively than others. The
large affordability gaps
facing the lowest-income
households—those with
annual incomes below
$50,000—dictate that
the City support other
providers who have
access to sources of deep
subsidy, while somewhat
smaller, and thus more
manageable, affordability
gaps for households with
incomes between $50,000
and $149,999 present
opportunities for the City to
take more direct action.
Whether Wheat Ridge’s approach
to affordable housing is ultimately
opportunistic and flexible, or
targeted and rigid, it should operate
inside a set of high-level rules
that reflect both the community’s
values and aspirations, as well as
its economic, political, and fiscal
realities. The Strategy and Action
Plan recommends the City adopt the
following principles:
• Be action-oriented and embrace
incremental progress.
• Aim for mixed- income outcomes.
• Pursue geographic dispersion.
• Get the right project in the right
place.
• Support other affordable housing
developers when possible and
lead when necessary.
• Act regionally.
GIVES GETS
Households with incomes
below $50,000
Households with incomes
$50,000 to $74,999
Policies and Principles
The Envision Wheat Ridge comprehensive plan, though a foundational document in
terms of setting community vision, deals with housing only at a very high altitude and
was adopted in 2009—a vastly different time in the Wheat Ridge housing market. This
Strategy and Action Plan recommends policies, pending a new comprehensive plan, to
put the City on firm footing to respond to the housing conditions of the early 2020s, and
to connect longstanding City goals to action steps specifically crafted for this decade.
Households with incomes $100,000 to $149,999
Households with incomes
$75,000 to $99,999
Executive SummaryEXECUTIVE SUMMARY
6 7Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PRIORITY LEVEL 1 PRIORITY LEVEL 2 PRIORITY LEVEL 3
Update Development Code and
Zoning Map
Following the update to the
comprehensive plan, update the
City’s code and zoning map to
reflect the plan. The community-
wide discussion of whether,
where, and how to accommodate
new housing is best suited for
the comprehensive plan where
public engagement will play an
important role.
Exploration of Changes to
Charter Limits on Height and
Density
Following the update to the
comprehensive plan, establish
a commission to study the
possibility of amending the City
Charter’s current limits on height
and density in order to make a
recommendation for a potential
ballot question.
Update Affordable Housing
Strategy and Action Plan
Update this document to respond
to new conditions and events.
Housing Staff
Hire a staff person dedicated to
housing program management.
Comprehensive Plan Update
Use the comprehensive plan
process to reaffirm community
support for affordable housing
goals and establish community’s
vision for growth and
development.
Naturally Occurring Affordable
Housing (NOAH) Preservation
Program
A program to make grants from
the Wheat Ridge Housing Fund
to rental property owners to
upgrade aging rental units in
exchange for affordable rents.
Revise Zoning Scheme for
Community Benefit
Require mixed-use districts to
produce either true mixed-use or
affordable inclusionary housing,
and create a new “townhouse
district” with inclusionary
requirements.
Wheat Ridge Housing Fund
A dedicated fund to receive, hold,
and deploy financial resources
specifically in support of
affordable housing activities.
Housing- Supportive Code
Amendments
Amendments to the City’s
code to support affordable
housing development in areas
such as: process, fees, parking
minimums, and “no net loss” to
keep redeveloping properties
from decreasing the amount of
housing.
Continue Lutheran Legacy
Implementation Efforts
Continue preparing for the
eventual Lutheran Legacy
Campus redevelopment and set
clear expectations for substantial
affordability.
Recommended
Action Items
Intermountain Healthcare will be
vacating its historic 100-acre Lutheran
Hospital campus in the heart of
Wheat Ridge in the coming years. The
potential redevelopment of this site
offers ample opportunity to creatively
develop new affordable housing.
Maximize the potential
for the Lutheran Legacy Campus
redevelopment to
achieve inclusionary,
mixed-income
outcomes.
Attached Ownership with Inclusionary INCLUSIONARY
Multi-unit Rental with Inclusionary
INCLUSIONARY
Existing Affordable Rental
Wheat Ridge is awash in aging rental
units that are affordable to renter
households with incomes below
$75,000 and even below $50,000. Age
and flagging quality are contributing
factors to the relatively low rents.
The City could help to upgrade these
units while maintaining affordable
rents by offering a Naturally Occurring
Affordable Housing Rental Rehab
Program.
Preserve and upgrade
existing affordable
rental units.
With single-unit detached
homeownership slipping out of reach
for households with incomes below
$150,000, attached ownership units
offer a relatively affordable option, and
opportunities for inclusionary housing.
Build more attached
ownership units where
possible and achieve
inclusionary, mixed-
income outcomes.
#2
Multi-unit rental offers opportunities
for inclusionary housing and is the
type most economical for affordable
housing providers to build and operate.
Build more multi-
unit rental where
possible and achieve
inclusionary, mixed-
income outcomes.
#3
Key Affordable
Housing
Opportunities
#1
#4
OPPORTUNITY
OPPORTUNITY
OPPORTUNITY
OPPORTUNITY
Considering the difficulty of closing affordability gaps, the substantial costs of
housing development, and the planning context in Wheat Ridge, what are the
City’s best opportunities to take action on affordable housing?
Realizing Wheat Ridge’s key housing
opportunities requires a series of actions,
prioritized based on their impact and
timing factors.
Executive SummaryEXECUTIVE SUMMARY
In the mid-2000s, Wheat Ridge faced a dearth
of economic development opportunities
and homeowner investment. Development
opportunities that could improve the
community’s quality of life, and its tax base,
were regularly choosing other nearby cities
instead of Wheat Ridge. The City felt that its
need for new investment, by businesses and
real estate developers and even the city’s own
homeowners, was existential in nature. Wheat
Ridge was at a crossroads.Policies and Principles to Guide Housing Actions
Part 2 recommends Policies
and Principles that give shape
to the Strategy and Action
Plan.
Go here to learn how the
City should think about its
affordable housing decision
making.
Market Conditions and
Needs Assessment
Part 1 describes housing
market conditions and
the resulting affordability
impacts on various types of
households.
Go here to learn what has
been happening with the city’s
affordability situation.
Taking Action
Part 3 identifies Key Housing Opportunities and recommends specific actions the City should take.
Go here to learn what the City should do about creating affordable housing.
PART 1
PART 2
PART 3
Introduction: A Changing Market and the Costs of Inaction
How to Use this Document
8 9Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
It was such a critical issue that the City
commissioned the first Neighborhood
Revitalization Strategy—known locally as
the NRS—which challenged Wheat Ridge
to undertake a number of new initiatives
and to show its pride by making important
investments in itself. With the adoption
of the NRS, growing the city’s quality of
life and its tax base, and doing so while
improving its competitive position within the
Denver region, became
top priorities. However,
by 2022 circumstances
had changed in the
Wheat Ridge market.
The 2021 median sale
price for a house in
Wheat Ridge was
nearly $600,000, which meant a new buyer
household in Wheat Ridge likely needed an
income of at least $150,000 per year (vs the
2020 median owner-occupied household
income of $91,000) to afford a house. If a
new buyer household in 2022 was not in
the top 20% of the U.S. household income
distribution, buying a house in Wheat Ridge
was likely to be a stretch.
Median rents for one- and two-bedroom
apartments in Wheat Ridge exceeded $1,100 and
$1,400 respectively by mid-2022. This meant a
renter household needed an income of $56,000 to
afford the median priced two-bedroom apartment
(vs the 2020 median renter-occupied household
income of $42,000) and any renter household with
an annual income below $50,000 was at risk of
an affordability challenge. As of 2020, more than
half of all Wheat Ridge renter households paid
30% or more of their household income toward
housing costs. This is the government definition
of unaffordability, or a “cost-burdened” household.
Amongst renter households with incomes below
$50,000, 75% were cost burdened.
In Wheat Ridge, affordability is now just as
hot a topic as revitalization. But why does the
strengthening market matter? What’s at stake? If
the City does not attempt to intervene, what are
the costs to the Wheat Ridge community? These
questions can be answered a few different ways,
but some are particularly salient for Wheat Ridge
residents.
One has to do with identity. By outward
appearances, Wheat Ridge is an inner ring suburb
fully subsumed within the Denver metro area—
specifically the west side. To outside observers,
the municipal boundaries separating the City of
Wheat Ridge from its neighbors mean very little.
But Wheat Ridge residents, especially those with
deep roots in the community, consider Wheat Ridge
to be distinct—a small town with its own character
occupying its own space amongst a number of
communities, home to families who want to have
multiple generations living nearby. When this is the
case, local residents prioritize the ability for younger
generations to find housing opportunities in the
community, and this is becoming more and more
difficult. The number of households who can afford
to buy a home and put down roots in Wheat Ridge
is shrinking rapidly, inevitably squeezing out many
of those who grew up here.
Another answer relates to both practical self-interest
as well as a sense of fairness. Wheat Ridge’s local
economy employs thousands of people in education,
healthcare, local government, and the management
of private sector services that are critical to daily life
in the community, and whose wages are less and less
sufficient to secure housing in Wheat Ridge each year.
It matters to Wheat Ridge that those workers are part
of the community—living in town, not just working here
and commuting—and it matters that they are able to
make their own choice about where they live, given how
important they are to the community.
Ultimately the most important question is: What kind
of community does Wheat Ridge want to be in the
future? Will it be a place where a wide variety of people
and households can find affordable housing options and
contribute their spirit, skills, and talents to the city? Or
will it be a place limited only to those fortunate enough
to be able to pay the increasingly high price?
This is the context within which the City of Wheat Ridge
commissioned this document—the Affordable Housing
Strategy and Action Plan. Its purpose is to describe
housing affordability challenges in the community,
identify potential opportunities for the City to encourage
affordable housing development, and outline action
steps that match the right tools and resources to the
City’s opportunities. There is much about the housing
market that the public sector cannot control, to say
nothing of a single local government in a large, dynamic
region. But this document is about what the City can
do, and how it can quickly begin taking its first steps to
preserve space in the Wheat Ridge community for a
variety of households.
What kind of community does Wheat Ridge want to be in the future?
Market Conditions
PART 1
and NeedsAssessment
Throughout the 21st century, Wheat Ridge has experienced
affordability challenges. The median value of owner-
occupied housing units was 40% higher than the U.S. overall
in 2000, and 80% higher by 2020, which was in line with
the Denver-area market during those years. And although
renters historically have found more affordability in Wheat
Ridge than elsewhere in the Denver region, there are signs
that growing regional rental demand may soon impact
Wheat Ridge. Changes in both the ownership and rental
markets have effects on both existing and potential Wheat
Ridge households.
Part 1, Market Conditions and Needs Assessment, provides
more detailed information and analysis related to:
The homeownership market.
The rental market.
Affordability for both owners/buyers and renters.
Affected household types.
Data Note: Much of the analysis in Part 1 relies on data from the Census Bureau’s
American Community Survey Five Year Estimates program. Each reported data
year, in reality, covers the previous five-year period and the data are sample
based. Later data years, especially 2019 and 2020, may not fully reflect the
impacts of new units that were built and sold , or rented, in those years.
10 11Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Market Conditions and Needs AssessmentPART 1
Owner-occupied home values rose steadily in the second half of the 2010s.
The median value of owner-occupied housing units
in Wheat Ridge has grown in recent years. According
to data from the U.S. Census Bureau’s American
Community Survey (ACS) Five Year Estimates, values
grew slowly or not at all between 2010 and 2014 before
picking up in 2015 and achieving double-digit annual
growth rates above 10% between 2016 and 2020. This
pattern is nearly indistinguishable from that of the
Denver-Aurora-Lakewood metropolitan statistical area
(MSA) (see Fig. 1).
(The data reported for each year in Fig. 1 is sample-based data for a five-year period. It may not fully reflect the impacts of new units that were built and sold in 2019 and 2020.)
Owner incomes are on the rise, though still lower than the MSA.
Between 2010 and 2020, the median owner-occupied
household income grew faster in Wheat Ridge than it
did in the Denver MSA (44% vs 33%). Despite this rate of
increase, in 2020 the median owner income in Wheat
Ridge was still lower than in the Denver MSA (see Fig. 2).
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
$75,000
$85,000
$95,000
$105,000
$426,500
$232,200
$63,044
$90,922
Denver MSA
Denver MSA
Wheat Ridge
Wheat Ridge
Fig. 1
Median Owner-Occupied Value, 2010-2020
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
$75,000
$85,000
$95,000
$105,000
$426,500
$232,200
$63,044
$90,922
Denver MSA
Denver MSA
Wheat Ridge
Wheat Ridge
Fig. 2
Median Owner Income, 2010-2020
Source: ACS Five Year Estimates, 2006-2010 through 2016-2020
Ownership Market Overview
When it comes to homeownership, Wheat
Ridge, as a fully integrated part of the
Denver regional housing market, is now
quite expensive by national standards. As of
2020, the median estimated value of owner-
occupied housing units in the Denver region
and in Wheat Ridge were roughly 80% higher
than the national median. New buyers in
2021 were faced with a median sale price of
nearly $600,000 for a single-unit detached
house (see Fig. 3). Those without a significant
down payment, or an income above $150,000,
or both, may struggle to be homeowners in
Wheat Ridge going forward.
Source: ACS Five Year Estimates, 2006-2010 through 2016-2020
Fig. 3
Median Single-Unit Detached House Sale Price by Year,
2017 to 2021, Selected Communities
Source: czb analysis of MLS data
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
ARVADA LAKEWOODWHEATRIDGE GOLDEN
$4
1
2
,
0
0
0
$5
8
0
,
0
0
0
$800,000
ARVADA
LAKEWOOD
WHEAT RIDGE
GOLDEN
Median sale prices confirm a strengthening market.
ACS data on the value of owner-occupied
units is self-reported and is subject to error
for that reason, but it has the added benefit
of accounting for all owner-occupied units
even if they do not change hands. Data
from actual sales, by contrast, offers infor-
mation only about houses that are sold, but
it paints a more relevant picture of market
conditions for would-be homebuyers. Sales
data is also more up-to-date than the ACS
data.
Data from actual home sales, reported
here as median sales prices for selected
west metro communities, reflect a general
upward trend. In 2021 (see Fig. 3), the me-
dian sale price for a house in Wheat Ridge
approached $600,000.
Though a minority of for-sale units, condos offer relative affordability.
Median sale prices for townhouses and
condos are significantly lower in Wheat
Ridge than for single-unit detached houses
(see Fig. 4). This was especially true prior
to 2020 when the median sale price for a
townhouse jumped 56% year over year,
likely due to numerous new townhouse
units that were built and sold beginning
in 2019. The median price for condos has
tracked the single-unit detached price, but
remains $300,000 below the single-unit
detached median and $200,000 below the
townhouse median as of 2021.
$200,000
$300,000
$400,000
$500,000
$600,000
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
Single-Unit Detached
$580,000
Townhouse
$464,000
Condo $263,000
Price
Percentage of all home sales 2017-2021
77%
12%
11%
Source: czb analysis of MLS data
Fig 4
Median Sale Price by Housing Type, 2017-2021
12 13Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
DenverMSA
WheatRidge
$1,164
$1,446
DenverMSA
WheatRidge
$41,859
$54,529
Fig. 5
Median Gross Rent, 2010-2020
Rental Market Overview
Wheat Ridge has had rents generally lower than the region’s since at least 2010, but recent rent trends suggest the rental market is trending upward along with the rest of the area. Any renter households with incomes below $50,000 are at risk of affordability challenges in the very near future, if they are not facing them already. As of 2020, this described an estimated 3,872 renter households out of 6,724 total renter households in Wheat Ridge.
Source: ACS Five Year Estimates, 2006-2010 through 2016-2020 Source: ACS Five Year Estimates, 2006-2010 through 2016-2020
Fig. 6
Median Renter Income,
2010-2020
Wheat Ridge rents are generally lower than
the region’s.
During the previous decade, Wheat Ridge’s median gross
rent was consistently lower than that of the Denver MSA
(see Fig. 5). The median figure accounts for all rental units
in the city, regardless of type or unit size. One possible
explanation is the age of the city’s rental stock relative to
the region’s. In Wheat Ridge, according to 2020 ACS data,
75% of occupied rental units were built before 1980. Across
the Denver MSA, that figure is 48%.
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
DenverMSA
WheatRidge
$1,164
$1,446
DenverMSA
WheatRidge
$41,859
$54,529
Market Conditions and Needs AssessmentPART 1
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Ma
y
De
c
Ja
n
2019 20222020
De
c
De
c
Ja
n
2021
Ja
n
Ap
r
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Denver MSA
Wheat Ridge
Fig. 7
Median One Bedroom Rent, May 2019-April 2022
Wheat Ridge renter incomes are generally
lower than the region’s.
The median renter income in Wheat Ridge increased
by 39% between 2010 and 2020 (see Fig. 6), which
is slower than the Denver MSA’s 65% increase (and
slower than the city’s 44% median income increase for
owners).
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Ma
y
De
c
Ja
n
2019 20222020
De
c
De
c
Ja
n
2021
Ja
n
Ap
r
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Denver MSA
Wheat Ridge
Fig. 8
Median Two Bedroom Rent, May 2019-April 2022
Recently, rents have been on the rise.
More recent data, in the form of median rent
estimates from Apartment List (see Figures
7 and 8), suggest that renters in 2022 may be
under increased strain if seeking a new lease.
Estimated median rents for a one-bedroom
unit approached $1,200 per month in the spring
of 2022, while the price for a two-bedroom
exceeded $1,400. This data, along with the
historical ACS data, suggest that rents are on the
rise along with the rest of the region, but Wheat
Ridge still offers a measure of relative rental
affordability.
Source: Apartment List Source: Apartment List
14 15Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Wheat Ridge’s housing diversity
largely matches the region’s, but
the city lags in large-scale rental
projects.
Wheat Ridge has a housing supply that
is no less diverse—arguably it is more
diverse—than the region’s. It has a smaller
proportion of single-unit detached houses,
a higher proportion of single-unit attached
units, and relatively more duplex, triplex,
and quadplex units. It has relatively more
multi-unit properties with ten or more units
than does the rest of Jefferson County,
though fewer on a relative basis than its
neighbor Lakewood.
When it comes to ownership units, the
breakdown of types is very similar to both
the Denver region’s and Jefferson County’s.
The mix of rental units is a different story.
What stands out is that Wheat Ridge has a
much higher proportion of rental units that
are attached single-unit, duplex, triplex,
and quadplex units. These housing types
are considered to exist within a category
sometimes called “middle housing”—
neither single-unit detached houses nor
large multi-unit properties. It does however
have a smaller proportion of units in
structures of 5-9 units than either Jefferson
County or Lakewood, and it lags the entire
region in larger multi-unit properties with
more than ten units.
Existing Housing Supply
Key to the functioning of the
Wheat Ridge housing market
is the nature of the physical
stocks themselves. What kinds of
residential properties are most
prevalent in the city, and how does
that compare to the broader region
and its neighbors? In the city’s
owner- and rental-occupied stocks,
what stands out from the pack, if
anything?
0%
2-4 units
5-9 units
Single Detached
Single Attached
10+ units
Mobile Home
20%
40%
60%
80%
100%
Wheat Ridge Denver MSA Jefferson County Lakewood
53%
13%
9%
5%
20%
60%
9%
4%
5%
21%
66%
9%
4%
5%
14%
50%
12%
6%
8%
23%
2%1%0.7%0.1%
Fig. 9
Unit Type
Breakdown, by
Units in Structure
All Units
Source: 2016-2020 ACS Five Year Estimates
0%
2-4 units
5-9 units
Single Detached
Single Attached
10+ units
Mobile Home
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
Wheat Ridge Denver MSA Jefferson County Lakewood
3%2%2%2%
53%
13%
9%
5%
20%
60%
9%
4%5%
21%
66%
9%
4%5%
14%
53%
13%
9%
5%
20%
2%1%1%
84%
9%
1%4%
81%
9%
21%
84%
9%
75%
14%
2%1%0.7%
19%
17%
16%
10%
37%
21%
7%
8%
10%
52%
21%
10%
10%
12%
44%
14%
10%
11%
16%
50%
1.2%0.8%0.5%
0.1%
0.1%
0.1%
2%2%3%3%5%
3%2%2%2%
Units in structures of...
Market Conditions and Needs AssessmentPART 1
Ownership Units Rental Units
2-4 units
5-9 units
Single Detached
Single Attached
10+ units
Mobile Home
0%
20%
40%
60%
80%
100%
Wheat Ridge Denver MSA Jefferson County Lakewood Wheat Ridge Denver MSA Jefferson County Lakewood
84%
9%
1%
4%
81%
9%
4%
84%
9%
75%
14%
2%1%0.7%
19%
17%
16%
10%
37%
21%
7%
8%
10%
52%
21%
10%
10%
12%
44%
14%
10%
11%
16%
50%
1.2%0.8%0.5%0.1%0.1%
2%
2%
3%
5%
3%2%
2%
2%
3%
16 17Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Wheat Ridge has relatively fewer units in detached houses than the surrounding region.
Wheat Ridge has a greater proportion of units in “middle housing” types than the surrounding region.
Wheat Ridge’s mix of owner-occupied unit types largely mirrors the surrounding region.
Wheat Ridge has a relatively small proportion of rental units in large multi-unit properties.
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
Wheat Ridge Denver MSA Jefferson County Lakewood Wheat Ridge Denver MSA Jefferson County Lakewood
$400,000$0 $1M$750,000 $1,000$0 $1,500$1,250 $2,000
18%
17%
21%
31%
13%
18%
17%
19%
30%
16%
18%
17%
19%
29%
17%
35%
23%
15%
15%
12%
42%
52%
3%2%
48%
43%
4%
6%
42%
50%
3%
6%
50%
45%
1%3%
Fig. 10
Owner-Occupied Value, 2020
Fig. 11
Gross Rent, 2020
Source: 2016-2020 ACS Five Year Estimates
Note: Per data note on page 11, these figures may not fully reflect new rental units
added to marketplace since 2019.
Market Conditions and Needs AssessmentPART 1
Relative to the region, Wheat Ridge
has fewer entry-level homeownership
options, and a greater proportion of
affordable rental options.
Median rents and values provide a high-level
view of a market, but digging a bit deeper
into the distribution of those rents and values
begins to shed light on specific challenges and
opportunities.
The values of owner-occupied housing in
Wheat Ridge, as reported in 2020 ACS data,
largely mirror the rest of Jefferson County,
though entry-level purchase opportunities—
defined here as owner-occupied units valued
at less than $400,000—are relatively fewer in
Wheat Ridge than in the broader Denver region
or in Lakewood (see Fig. 10).
Lower-cost rental opportunities are substantially
greater in Wheat Ridge than elsewhere (see
Fig. 11), This is likely due to two factors: first, the
age and configuration of many existing rental
units from the mid-20th century, and second,
the existence of nearly 500 deed-restricted
affordable units at Caesar Square, Wheat Ridge
Town Center, Town Center North, and Highland
West, which together represents 7% of all
occupied Wheat Ridge rental units.
Source: 2016-2020 ACS Five Year Estimates
Wheat Ridge has been a slow
development community for
decades. From 2000 to 2020, it
added approximately 27 new
housing units per year, on a
net basis. There is little to no
greenfield land left, the market is
on a strengthening trajectory with
land prices rising, and almost all
development going forward will
be redevelopment of previously
occupied sites. The economics of
real estate development demand
higher densities to deal with total
development costs that include
high land prices and the price of
site preparation. This means that
No new market-rate rental units between 1980 and 2019
1980 2019
West End 38 opens with
165 rental units
The Edison adds another
150 rental units
Market-rate rental units in Wheat Ridge
Clear Creek Crossing adds
310 rental units
After 2019, three market-rate rental properties added over 600 rental units
large-lot single-unit detached
housing will be increasingly rare,
and when it happens, sale prices
will be well out of reach for most
households.
Between 1980 and 2019, Wheat
Ridge saw no new market-rate
rental units, meaning the only
new rentals built were deed-
restricted affordable units. This
period ended in 2019 with the
opening of the West End 38 rental
property with 165 units. Shortly
thereafter, the Edison project
added another 150 market-rate
rental units and Clear Creek
Crossing (Phase 1) contributed
another 310. The projects offer
a mix of studio, one, and two-
bedroom configurations with rents
that range from roughly $1,700 to
nearly $5,000 per month for some
exceptional units.
Single-unit attached ownership
(i.e.townhouses) has also been a
product of choice for developers
in recent years because the
combination of development
costs and market demand make it
feasible, especially within Wheat
Ridge’s charter limits on height and
density (see page 35). Sale prices
for new townhouses, at the time
of this report, range roughly from
$600,000 to $800,000.
Rents range from $1,700 to nearly $5,000 per month.
TODAY
Housing development in Wheat Ridge has picked up in recent years.
18 19Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Wheat Ridge has a higher proportion of low-cost rentals than the region.
Wheat Ridge has a smaller proportion of entry-level purchase opportunities than the Denver region or its neighbor Lakewood.
$40,000 $80,000 $200,000
How much income goes
towards housing to be
considered affordable?
Up to
$1,000
Up to
$2,000per
month
Up to
$5,000
Up to
$12,000
Up to
$24,000per
year
Up to
$60,000
Fig. 12 Affordable housing costs for households by annual income
51
%
Renters Owners ALL Households
Af
f
o
r
d
a
b
l
e
Un
a
f
f
o
r
d
a
b
l
e
3,
3
2
0
3,
4
0
4
5,
7
6
0
1,
7
8
0
24
%
36
%
3,
4
0
4
1,
7
8
0
2020
Source: 2016-2020 ACS Five Year Estimates
Fig. 13 Percentage of Wheat Ridge Households Spending at least 30% of Income on Housing Costs, 2020
Market Conditions and Needs AssessmentPART 1
What does “affordable” mean when it comes to housing?
By federal government definitions,
housing is considered “affordable”
when it costs less than 30% of a
household’s gross income, and those
spending 30% or more on housing
are considered “cost-burdened”
which means housing is no longer
affordable. Because the metric is a
percentage, and not just an absolute
number, affordability is relative.
For example, a household with
an annual income of $40,000
spending $1,000 per month or more
on housing, is considered cost-
burdened (see Fig. 12).
A household with an annual income
of $80,000 spending $2,000 per
month or more on housing is
considered cost-burdened.
A household with an annual income
of $200,000 spending $5,000
per month or more on housing is
considered cost-burdened.
Affordability Impacts and Needs
Although Wheat Ridge is
a strengthening housing
market overall, not all
households are impacted
the same way, nor do they
face the same amount of
either current or future
affordability risk. Current
owners who purchased in
years past and qualified for
fixed-rate mortgages face
less stress than current
renters—especially lower-
income renters—who risk
rents rising faster than their
incomes can grow.
Many Wheat Ridge households struggle to afford housing.
According to the latest available
data from 2020, over one-third
of Wheat Ridge households
paid at least 30% of their annual
income toward housing, including
over half of the city’s renter
households.
Owner-occupied households are
less likely to face affordability
issues because mortgage
lenders account for it before
loaning to a buyer, and because
many long-time homeowners
purchased their homes when
prices were lower than they are
today. However, nearly a quarter
of Wheat Ridge owners face their
own affordability challenges,
which may stem from declines
in household income related to
retirement, job loss, divorce, or
other factors (see Fig. 13).
Lower-income renters struggle most in Wheat Ridge.
Over half of all Wheat Ridge renters
are cost-burdened but this figure
rises to 75% for renter households
with incomes below $50,000.
Extreme cost burdens (paying 50%
or more of income toward housing)
are common in renter households
with incomes below $35,000. This
described an estimated 1,606
renter households as of 2020.
There are too few rentals for the lowest- and highest-income renters.
Gap analysis measures the
difference between the number
of households in a given income
range and the number of units
affordable to that income range.
A deficit results if there are fewer
units than households, and a
surplus results if the number
of units exceeds the number of
households. In Wheat Ridge’s case,
as of 2020, there were more rental
units priced for households with
incomes between $35,000 and
$74,999 than there were renter
households with those incomes.
There were deficits for households
with incomes below $35,000. This
is a common pattern in which
those renters impacted by the
shortage at the bottom of the
income distribution must “rent up”
into the surplus supply which is
priced above what they can afford.
It is the reason that so many low-
income renters are cost-burdened.
As of 2020, there were over 1,200
renter households in Wheat Ridge
with incomes less than $35,000 for
whom there is no corresponding
affordable unit (see Fig. 15).
At the same time, a shortage of
units for the highest-income renters
means they “rent down” into the
surplus supply, and their demand
helps to inflate rents that those in
the middle have to pay.
Source: 2016-2020 ACS Five Year Estimates
Fig. 14Renter Household Cost Burdens, by Income, 2020
Source: czb analysis of data from 2016-2020 ACS Five Year Estimates
Fig. 15Renter Household Unit Gaps, by Income, 2020
$35,000 to$49,999
Less than$20,000
$20,000 to$34,999
50% or More
Total number of renter householdsHousehold Income
$75,000+
$50,000 to$74,999
1,812
1,265
1,001 308 212
Households Paying
795
1,111
1,741
606 554 59
14 405 20
42 318 8
150 23
30% -49%No Cash Rent Less than 30%
Cost-Burdened Households
$35,000 to$49,999Less than$20,000
0
$20,000 to$34,999
50% or More
Number of HouseholdsHousehold Income
$75,000+
$50,000 to$74,999
1,8121,2651,001 308 212
Households Paying
795
1,111
1,741
606 554 591440520
42 318 8
150 23
30% -49%No Cash Rent
$35,000 -$49,999Less than$20,000 $20,000 -$34,999 $75,000+$50,000 -$74,999Income Range
-909
-319
500
1,000
1,500
-500
-1,000
Su
r
p
l
u
s
of
A
f
f
o
r
d
a
b
l
e
U
n
i
t
s
Sh
o
r
t
a
g
e
of
A
f
f
o
r
d
a
b
l
e
U
n
i
t
s
-964
+1,349
+843
1.4857 pt
20 21Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Lower-income renters “rent up”
Higher-income renters “rent down”
Fig. 16 Renter Affordability, 2010-2020
Fig. 17Owner Household Cost Burdens, by Income, 2020
Fig. 18Income Needed to Afford Median Sale Price by Housing Type, 2017-2021
Fig. 19Wheat Ridge Jobs Paying $40,000 or Less by Industry, 2019
Source: U.S. Census Bureau Center for Economic Studies, accessed via OnTheMap
Industry Jobs
Retail Trade 1,593
Health Care and Social Assistance 2,682
Accommodation and Food Services 1,238
All Other Industries 3,898
Fig. 20 Selected Household Types Potentially Facing Affordability Challenges, 2020
Se
n
i
o
r
s
L
i
v
i
n
g
Al
o
n
e
Wo
r
k
i
n
g
-
A
g
e
Li
v
i
n
g
A
l
o
n
e
Wo
r
k
i
n
g
-
Ag
e
M
a
r
r
i
e
d
Co
u
p
l
e
s
w
i
t
h
ki
d
s
Wo
r
k
i
n
g
-
A
g
e
Ro
o
m
m
a
t
e
Si
t
u
a
t
i
o
n
s
Si
n
g
l
e
P
a
r
e
n
t
Fa
m
i
l
i
e
s
Median Income
If headed by
woman?$22,000 $31,000
$113,000
$92,000 $39,000
If headed by man?$31,000 $36,000 $87,000 $112,000
How many are
renters?
(85% of all renters accounted for)
Source: czb analysis of data from 2016-2020 ACS Five Year Estimates
1,300
1,800
600
900 1,000
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
$0
$10,000
$20,000
$30,000
$40,000
$50,000
20
1
0
$0
20
2
0
Wheat Ridge’s renter household incomes create affordability risk.
As of 2020, a renter household needed just over
$45,000 in annual income to afford the median-priced
rental unit in Wheat Ridge (see Fig. 16). If more recent
data is to be believed, the required income is now
surpassing $50,000. As illustrated on page 14, Wheat
Ridge renter incomes are lower than those in the
region, and those low incomes create vulnerability as
regional rental demand impacts Wheat Ridge.
Affordability Impacts and Needs, cont’d.
Relatively few owners struggle with affordability.
Overall, fewer than a quarter of existing owners
in Wheat Ridge were cost burdened as of 2020.
The highest rates of cost burden were amongst
households with incomes below $35,000, with
rates nearing or exceeding 70% (see Fig. 17). Owner-
occupied households are generally at less risk
for affordability issues both because mortgage
underwriting accounts for it and also because
mortgage payments are usually fixed for decades,
though insurance and property taxes may increase.
When owner incomes decrease due to job loss or
retirement, they may fall below a level where house
payments are affordable and a cost burden can result.
New buyers need significantly higher incomes than current owners.
The income required to purchase a home varies,
depending on many factors, including down payment,
credit score, and interest rates. It is generally
understood that a ratio of annual income to purchase
price should be 3:1 to be considered affordable.
Depending on individual buyer circumstances, down
payment, etc., the ratio could go as high as 4:1 while
remaining affordable. Using a midpoint of 3.5:1, Figure
18 illustrates how the income needed to become a
homeowner in Wheat Ridge changed from 2017 to
2021. The income needed to afford the median priced
townhouse or single-unit detached house was well
beyond $100,000 as of 2021, and roughly $75,000
for a condo. In 2020, the most recent year for which
the median owner-occupied household income was
available in ACS data, Wheat Ridge’s median was
about $91,000. Homeownership would not be possible
for many Wheat Ridge owners today, nor for the 97%
of current renter households with incomes less than
$150,000.
Source: czb analysis of data from ACS Five Year Estimates
Income needed to rent the median-priced rental unit
$45,000
$41,859
Median renter income
$0
2017 2021201820192020
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Single-Unit Detached
$580,000
Townhouse $464,000
$263,000
Condo
$0
2017 2021201820192020
$40,000
$80,000
$120,000
$160,000 Single-Unit Detached
$165,714
Townhouse
$132,644
$75,143
Condo
Source: czb analysis of data from MLS
Source: 2016-2020 ACS Five Year Estimates
$35,000 to$49,999
Less than$20,000
$20,000 to$34,999
$75,000+
$50,000 to$74,999
425 TOTAL HOUSEHOLDS
329 (77%)
532 (68%)
267 (35%)
329 (30%)
323 (7%)
780
767
1,089
4,452
Households Paying at Least 30% of Income for Housing
Market Conditions and Needs AssessmentPART 1
There are thousands of low-wage jobs in Wheat Ridge.
According to the most recent relevant
data, which is from 2019, there were over
9,000 jobs in Wheat Ridge paying wages
or salaries of $40,000 or less (see Fig. 19).
If a worker in one of these positions is the
sole earner in the household, the chances
of an affordability problem are very high
(see Fig. 12 on page 20). If two low-wage
workers live in the same household, they
may escape the housing “danger zone”
but could still face shrinking options in the
rental market as it strengthens over time.
A diverse collection of household types are potentially affected.
As of 2020, there were a number of
household types that were likely to
face housing affordability challenges in
Wheat Ridge due to low incomes. At the
median, those living alone, both working-
age and senior citizens, had incomes
of less than $40,000 The maximum
affordable monthly rent at that income is
only $1,000, which was below the city’s
median gross rent. Households headed by
single mothers were similarly challenged.
Generally speaking these are the types of
households most likely to struggle to pay
the rent and in need of the deepest levels
of assistance (see Fig. 20).
Single Incomes are a Risk Factor
As of 2020, Wheat Ridge had over 3,000
renter households where the occupant
was living alone, and hundreds of single-
parent renter households. These single-
income households had the lowest
median incomes among the household
types listed in Figure 20, which implied
clear affordability challenges. Because
the income data is only reported
at the median, it is not possible to
determine the exact number of single-
income households facing affordability
challenges, but it is at least the halves
below their respective median household
incomes—650 seniors living alone, 900
working age people living alone, and
500 single-parent families the majority of
whom were female headed.
22 23Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Takeaways: Summarizing Housing Needs and Looking Ahead to Policy
Focusing on Target Markets
Wheat Ridge’s housing market
challenges, and opportunities, can
be defined by five income categories
around which to organize affordable
housing policy and strategy, referred to
here as target markets. Based on the
City’s current and potential tools and
capabilities, it can directly impact some
target markets more effectively than
others.
Household Income Less than $50,000
Sizable affordability gaps for the
lowest-income households dictate
that the City support other providers
who have access to deep subsidy. The
City should have a supportive posture
toward proposed projects for these
households, as described in Parts 2
and 3.
Household Income $50,000 to
$149,999
Affordability gaps at these incomes
are smaller, and thus become more
manageable using tools other than
deep financial subsidy. These target
markets present opportunities for
the City to take more direct action as
discussed in Parts 2 and 3.
Household Income $150,000 and
Above
Households at these incomes have
abundant choice in the Wheat Ridge
market and do not require public
sector interventions to support housing
affordability.
Households with incomes
below $50,000
Households with incomes
$50,000 to $74,999
PART 1 Market Conditions and Needs Assessment
Current
Own/Rent Split
Percent
Renters
Cost
Burdened
Deficit/Surplus of
Affordable Rental
Units Matched to
Income
Maximum
Affordable
Rent
Maximum
Affordable
Purchase
Rental Risk
Assessment Significant current rent
burdens, and whatever
affordability exists is at risk as
housing costs rise.
Renters currently enjoy
affordable options, but the
units are aging and quality in
question. As rents rise in the
region, currently affordable
units are ripe for reinvestment
and resulting rent increases.
Homeownership
Risk Assessment Incomes are too low to
support homeownership.
Incomes are generally too low
to support homeownership.
There are virtually no single-
unit houses at this price point.
Condo ownership may be a
possibility, but even that is a
challenge at current prices.
Policy Implications There is need in Wheat
Ridge for a large volume
of low-income rental units,
but affordability gaps are so
large that they demand the
kind of subsidy best provided
via professional affordable
housing developers.
Current affordable rentals are
an opportunity for preservation
and quality should be
upgraded.
-1,228
for incomes less than $35,000
+1,349
for incomes $35,000 to $49,999
+843
75%32%
$1,250 $1,875
$175,000 $263,000
34%66%49%51%
Households with incomes
$75,000 to $99,999
Households with incomes
$100,000 to $149,999
Households with incomes
$150,000 or more
Affordability unlikely to be
a concern, but new rental
units are not affordable. The
highest-income households
may consider leaving the
region to find suitable
housing options.
None. New rental units are
affordable to this group.
None. New rental units are
affordable to this group.
As homeownership ceases to
be an option, households may
consider leaving the region.
Increasingly difficult to
purchase a home in Wheat
Ridge at this income.
Households may consider
leaving the community.
None. This group can
generally afford to purchase a
home in Wheat Ridge.
-13 -764 -210
N/A N/A N/A
$2,500 $3,750 $3,750 and up
$350,000 $525,000 $525,000 and up
60%40%63%37%90%10%
Improving rental options for
this group is an opportunity.
Improving homeownership
options for this group is an
opportunity.
None. This group has little
to no problems in the Wheat
Ridge housing market.
24 25Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 2
Principlesto GuideHousingActions
Policies and
26 27Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Policies and Principles respond to identified issues
and guide the way toward discrete actions. Policies
help to define the new set of conditions Wheat
Ridge hopes to create in its housing market, while
Principles establish “rules of the road” as to how the
City will approach its decision making.
The Policies and Principles in Part 2 are
recommendations, based on the broad set of
identified needs in Part 1. They are constructed to
provide the City a formal basis for taking future
action, beyond a comprehensive plan that is out
of date and in anticipation of a new plan yet to
be developed. They may therefore be considered
“interim” pending validation or revision in a
new comprehensive plan. If this Strategy and
Action Plan is formally adopted by the City, these
recommended Policies and Principles will then
become decision-making guideposts alongside
Envision Wheat Ridge and other policy documents.
PART 2 Principles for Guiding Housing Actions
Recommended Policies
POLICY A: Full Housing Ladder
Wheat Ridge recognizes that its
economic and social strength
and resilience benefit when
households of all types, including
but not limited to workers
providing critical services to
the community, are able to find
suitable housing options in the
city across the stages of life. The
City is committed to supporting
the development of a full “housing
ladder” to meet this goal.
Envision Wheat Ridge signals the community’s desire
to address housing both through the plan’s Key Values
(“Promote…. an array of housing options.”) and in its Goals
(“Goal NH2: Increase housing options.”). Envision
Wheat Ridge, though a foundational document in
terms of setting community vision, deals with housing
only at a very high altitude and was adopted in 2009—
a vastly different time in the Wheat Ridge housing
market. The following policies are recommended, at
least as interim policies pending a new comprehensive
plan, to put the City on firm footing to respond to the
housing conditions of the early 2020s, and to connect
longstanding City goals to action steps specifically
crafted for this decade.
POLICY B:
Economic and Income
Diversity
Wheat Ridge embraces economic
and income integration citywide and
within its neighborhoods. It rejects
economic and income segregation
that may result from the natural
functioning of housing markets. The
City is committed to taking actions
to facilitate economic and income
diversity where possible.
POLICY C:
Housing Type
Diversity
Wheat Ridge places a high value on
its diverse housing stocks and seeks
to achieve and maintain a well-
balanced supply of housing types
to accommodate a wide range of
households. The City is committed
to maintaining and increasing the
diversification of its housing supply
where possible, and working within
market realities to do so.
POLICY D:Material Support for Affordable Housing
Wheat Ridge acknowledges the
difficulties of providing affordable
housing and supports public,
private, and nonprofit organizations
developing affordable housing
in the city. The City is committed
to providing material support to
projects that align with adopted
policies, plans, and design
requirements.
POLICY E:Incentives Conditioned on Inclusionary Outcomes
Wheat Ridge city government is
an active participant in important
development and redevelopment
projects across the community,
particularly through its capacity to
provide financial incentives. City
provision of incentives to projects with
a residential component requires the
project to include affordable housing
and a variety of price points to achieve
mixed-income outcomes. Partnership
with Renewal WR is crucial to this
policy.
GIVES GETS
28 29Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 2 Principles for Guiding Housing Actions
Be action-oriented
and embrace
incremental progress
Aim for mixed-
income outcomes
Pursue geographic
dispersion
Recommended Principles
Principles are “rules of the road” that offer guidance for decision
making. Whether Wheat Ridge’s approach to affordable housing
is ultimately opportunistic and flexible, or targeted and rigid,
it should operate inside a set of high level rules that reflect
both the community’s values and aspirations, as well as its
economic, political, and fiscal realities. Sticking to a handful of
key principles can maintain clarity as the City pursues affordable
housing goals, or provide it when the path is somehow unclear.
Housing markets are complex,
powerful, and difficult to affect.
This can appear daunting to
those who seek different market
outcomes. But the City of Wheat
Ridge is a forward-thinking and
creative local government with a
history of rolling up its sleeves and
getting to work. There are action
items in this strategy that the City
can begin working on quickly, with
demonstrable results to follow.
Wheat Ridge should have no
hesitation about getting started
right away, and beginning the
process of stacking up small but
important wins that add up over
time.
Just as housing monocultures run
counter to the need for flexibility
for individual households and the
community over time, so too do
income monocultures. A focus
on preserving and increasing
affordability citywide will help to
maintain income diversity as the
market continues to strengthen.
Special attention should be paid
to new, site-specific, large-scale
housing projects where price
points should be varied across
units sufficient to achieve a mixed-
income result.
No part of the community
should be “off limits” to new
housing or affordable housing.
Each neighborhood, or Council
district, or corridor, should have
opportunities for the location
of new and affordable housing.
This is not to say that every
opportunity will be the same, or
that a project that is the right fit
for one location could easily be
relocated somewhere else. But if
housing affordability is a citywide
challenge, then every part of
the city has some role to play in
helping to address it.
Act regionally Get the right project in
the right place
Support other affordable
housing developers
when possible and lead
when necessary
Although the city has an
affordability challenge, it is not
Wheat Ridge’s alone. It is a regional
phenomenon across the entire
Denver area. Wheat Ridge should
show leadership by implementing
this strategy and the City should
also stand ready to collaborate
with other regional actors, from
neighboring jurisdictions to a
region-wide body or consortium, as
opportunities present themselves.
Affordability is a critical
consideration for newly built
housing, but it is not the only
consideration that matters. Wheat
Ridge is a mature community
with a well-established existing
planning context, and new housing,
if not properly designed for its site,
block, street, or neighborhood,
may fail to contribute positively
to the city. Simply being
affordable may not be enough to
outweigh a poorly planned site,
inappropriate architecture, or a
shoddily constructed building.
The city’s planning system, from
the comprehensive plan to the
development code, should set
rules within which any housing
developer, including affordable
housing developers, must operate.
Housing development, especially
affordable housing development,
is a difficult and financially complex
undertaking. The City cannot
provide housing directly, but there
are existing organizations that are
expert in housing development,
and are able and willing to build
affordable housing in Wheat
Ridge. The City of Wheat Ridge
may consider a number of tools
to increase affordable housing
that no other entity can achieve
such as land use designations and
development regulations including
zoning, potential affordability
requirements through inclusionary
housing, and allocation of
meaningful financial resources to
fill financing gaps.
30 31Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 3
TakingAction What should Wheat Ridge do to address its housing market
needs and effectuate its policies? There are a number of
ways in which the City can begin to tackle affordable housing
right away, using its resources and capacities to make the
most of current conditions, trends, and events.
Part 3, Taking Action, identifies the best affordable housing
opportunities facing Wheat Ridge today and the actions that
will help take advantage. Part 3 includes information about:
Important context related to development costs, land use,
and the role of subsidy.
Analysis and description of Wheat Ridge’s Key Housing
Opportunities
Detailed description of discrete action items the City can
pursue to activate the opportunities.
32 33Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Development Costs, Land Use Regulations, and Subsidy
There are a number of tools available to help local
governments support the production of affordable
housing. Some may provide substantial benefits
while others contribute only at the margins. Key to
understanding which tools will be most useful in
Wheat Ridge’s specific context is first understanding
why housing costs what it costs, how land use
regulations can impact costs and affordability, and how
public subsidy is needed to close affordability gaps.
Housing costs begin with development costs.
Development costs can be lowered, but within limits.
Subsidizing developers or households, directly or indirectly, can fill affordability gaps.
Maximizing land utilization provides more units and helps lower per unit development costs.
Value created through higher densities can also be extracted for affordability.
SOLD
Development Regulations Subsidies
PART 3 Taking Action
Between the costs of construction, the cost of land, and the other costs of
developing housing, new residential units are expensive. If the construction
cost of a house is $200 per square foot, which is a typical amount in the
Denver region at the time of this report, an 1,800 square foot house costs
$360,000 to build. If land costs $1,000,000 per acre, which is a typical
amount in the Denver region at the time of this report, and eight houses can
be built on an acre, then the land for that house costs $125,000. Before any
other developer costs, such as the cost of financing, permit fees, design
work, etc., the new house costs $485,000, which likely requires nearly
$140,000 in annual household income to afford.
When it comes to rental projects, costs in the Denver area in 2022 suggest
that a rental unit may cost between $350,000 and $400,000 to produce. In
some cases, the figure may be higher. As a general rule, monthly rents are
about 1% of the cost to develop a rental unit, meaning that average rents for
newly constructed projects in the area are in excess of $3,500, which likely
requires $140,000 in annual household income to afford.
Improving the affordability of newly built housing means either lowering
the cost of developing a housing unit, or providing subsidy to fill the gap
between what housing costs to build and what a particular household can
afford to pay. Sometimes, it means some of both.
A number of development costs are outside the control of developers and
builders. These include costs for land, materials, labor, public improvement
and impact fees, and financing to name a few. There are only a handful of
variables a developer can adjust in order to lower the cost of delivering
a housing unit. Among them are size, type of materials, and quality of the
finishes.
At first glance, it might appear that it is in a developer’s interest to build
units as small and as cheaply as possible, in order to maximize the number
of units and the potential profit. In reality, however, it is not so simple. Just
because a housing market may be expensive overall does not mean that the
developer’s potential target markets do not have any choice. Missing market
expectations or unit size or quality creates risk that the new units will remain
vacant for longer than planned, which is a risk no developer wants to face.
For the community’s part, it is also wise to think about marketability and the
long-term viability of any new housing units. New units that are affordable
but with questionable long-term viability in the marketplace could end up
being liabilities instead of assets as market conditions change.
Housing costs begin with development costs.
Development costs can be lowered, but within limits.
SOLD
34 35Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
In a housing context, in a land
constrained environment like Wheat
Ridge, each buildable square inch
becomes important. That is true of
land that has never been developed
and of land that is redeveloped into
something new. Each potential site
upon which housing might be built
is subject to regulations which
determine the number of units
that can be built there. The more a
community wants to add housing,
the higher the number of allowable
dwelling units per acre (DUA) will be
allowed.
The number of DUA also impacts
housing costs by impacting the
land cost that finds its way into the
cost of an individual housing unit.
Assuming a fixed cost of land for
a particular site, the higher the
number of allowed DUA, the lower
the land cost per unit. As the land
cost per unit falls, so too does the
total cost of producing the unit.
In the examples below, increasing
the DUA from 6 to 12, and changing
the housing type from single-unit
detached to single-unit attached,
lowered the land cost per unit by
$125,000, which is a substantial
decrease. Moving to an even more
intense and urban building form,
the multi-story rental building with
structured parking, lowers the land
cost per unit significantly.
Maximizing land utilization provides more units and helps lower per unit development costs.
PART 3 Taking Action
Single-unit detached houses
Attached Single-unit townhouses
Multi-unit rental
building with surface
parking
Multi-unit rental building with structured parking
Land cost per unit on a 4 acre site
Number of units on a 4 acre site
24
48
100
160
$250,000
$125,000
$60,000
$37,500
6 units per acre
12 units
per acre
25 units per acre
40 units
per acre
Land cost for 4 acre site $6M
As the number of units per acre increases, the land cost per unit falls.
Subsidizing developers or households, directly or indirectly, can fill affordability gaps.
Boiled down to its bare essence, affordable housing work is about filling
the gap between what housing costs to provide and what a household
can afford to pay. This requires, in some way, shape, or form, subsidy flowing
from somewhere, and this is almost always from the public sector. Even in
cases where housing can be built less expensively, through adjustments
to allowed units per acre, unit size, or quality, subsidy may still have a role
to play because the gaps between what housing costs to provide and
what many households can afford is so great. For example, if a typical two-
bedroom market-rate rental unit has a total development cost of $400,000,
and somehow that cost could be reduced by 25% to $300,000—a significant
reduction—through higher density or decreased square footage, the resulting
monthly rent of $3,000 would still require $120,000 in annual household
income.
Public sector funding of affordable housing goes back to the very first
public housing projects before the middle of the 20th century. Low Income
Housing Tax Credits and Community Development Block Grants have
been important sources of subsidy to affordable housing developers for
decades. Individual households are also recipients of housing subsidy, via
Housing Choice Vouchers for example. Local governments also have the
ability to raise and spend their own funds to subsidize affordable housing,
whether to developers or to households, or both. As with every other public
expenditure, the decision to allocate resources to affordable housing is a
matter of political will, prioritization, and trade-offs.
A commonly used mechanism to produce affordable housing is inclusionary
zoning, a legal mechanism under which developers are required to set
aside some percentage of new housing units as affordable, as defined by
the regulating jurisdiction, with some means of alternative compliance made
available. The alternative means is usually a “fee in lieu.” If the inclusionary
housing requirements are calibrated properly, meaning they are not overly
onerous, projects of a minimum size can usually meet the requirements
while maintaining financial viability for the developer. czb’s analysis suggests
that a 10% set aside is likely feasible so long as the qualifying incomes,
and the matching affordable rents, are not set too low. To be more specific,
the affordable rents should not be set much below those affordable to a
household with an income at 80% of the area median. The income limits
for homeownership would be higher, in the range of 100-120% of the area
median.
In a strong housing market with high land values, like that of the Denver
region, additional value can be created on a site by increasing the allowed
DUA, thus creating financial conditions where some of that additional value
can be recaptured by the community to help pay for the income restricted
units. This increase in allowed density, or “upzoning,” is a tool that works hand
in glove with inclusionary housing requirements. Sophisticated communities
understand this approach of “gives” and “gets” is critical to balancing
public priorities and meeting community goals.
Value created through higher densities can also be extracted for affordability.
Development Regulations
Subsidies
36 37Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Key Affordable Housing Opportunities
The preceding pieces of this analysis are
foundational:
• Market conditions and housing needs.
• Recommended policies that outline at
a high level what Wheat Ridge hopes to
accomplish. -Recommended principles
that guide decision making.
• Costs, challenges, and opportunities
that development and subsidy create.
These foundational components inevitably
lead to the most important question of all:
At the time of this report, the constraints
on the City’s actions are clear. The
potential housing need across the
community is both wide and deep. Housing
development is complex and expensive,
and the subsidy needed to fill affordability
gaps is substantial. Some of the housing
types most likely to facilitate good
affordable housing outcomes represent
a departure from Wheat Ridge’s historic
housing typology and the community-wide
discussion of whether, where, and how to
accommodate new housing is best suited
for a comprehensive plan update that
is still in the future. But this document,
crafted to be useful to the Wheat Ridge
community, is not about what the City
cannot do. It is about what the City can do,
with an emphasis on what it can begin to
do almost immediately.
The city has need for affordable rental units.
Multi-unit rental projects will be the most
economical housing type for affordable
housing providers to develop.
Multi-unit rental
projects are
also a housing
solution that the
private sector is
equipped to deliver, and in so doing, can offer
the opportunity for inclusionary affordable
housing.
Perhaps more important
than the benefits of new
construction, the city is
already awash in older,
relatively affordable
rental units that represent an opportunity for
preservation.
The city’s Key Housing
Opportunities are framed by
the following points made clear
throughout this document:
PART 3 Taking Action
The city has need for entry-level ownership
opportunities.
Attached townhouses have the twin benefit
of being recently proven as a marketable
product in Wheat
Ridge, and come
with development
economics that
make them a
potential entry-
level alternative to single-unit detached
houses, which are not affordable to households
defined as target markets in need of assistance.
Inclusionary affordable housing is also a
possibility here, so the private sector can be a
partner in delivering some affordability.
Attached Ownership with Inclusionary INCLUSIONARY
Multi-unit Rental with Inclusionary
INCLUSIONARY
Existing Affordable Rental
What should Wheat Ridge do?
Build more multi-unit rental where possible and achieve inclusionary, mixed-income outcomes.
These, therefore, are the Key Housing
Opportunities outlined in the following pages:
KEY HOUSING OPPORTUNITIES
#1
#2
#3
#4
Build more attached ownership units where possible and achieve inclusionary, mixed-income outcomes.
Preserve and upgrade existing affordable rental units.
Maximize the potential for the Lutheran Legacy Campus redevelopment to achieve inclusionary, mixed-income outcomes.
Development Regulations
Subsidies
Each of these opportunities come with
implications for changing development
regulations and raising and deploying capital
for subsidies. There are short-term opportunities
available, and opportunity can be expanded over
time commensurate with changes to regulations
and funding.
38 39Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Build more multi-unit rental where possible and achieve inclusionary, mixed-income outcomes.
The City of Wheat Ridge, relative to the region,
has few rental units in large rental complexes.
The market for these products has been proven
in recent years with a handful of new projects.
This housing type, with densities and heights only
allowed in areas of the city exempted from specific
City Charter-imposed limitations, makes efficient
use of land, which is a key variable in development
cost per unit and resulting affordability. This
housing type offers the following benefits:
1. It is the new housing type most economical to
build for affordable housing developers hoping
to reach affordable rents for households with
incomes below $75,000.
2. Market-rate units of this type, given
development costs at the time of this report,
are likely affordable, on average, only to
households with incomes above $100,000.
But czb’s analysis suggests that roughly 10%
of units within a new project could be made
affordable to households with lower incomes,
down to about $75,000.
Increasing the number of multi-unit rental projects
in Wheat ridge can enable opportunities to create
new affordable rental housing.
Charter Exception Areas
PART 3 Taking Action
OPPORTUNITY
TARGET MARKETS
#1
THE OPPORTUNITY
For Affordable
Housing
Developers:
Households with incomes
$75,000 to $99,999
Households with
incomes below
$50,000
Households with
incomes
$50,000 to $74,999
GEOGRAPHIC FOCUS
For Private
Sector
Market-Rate
Developers:
The Wheat Ridge City
Charter limits maximum
residential building
heights in the city to 35
feet and maximum density to 21 dwelling units per
acre. There are exceptions to these limits, mostly
but not exclusively coincident with boundaries
for Urban Renewal Areas. The Charter exceptions
have been critical to the development of recent
multi-unit residential projects, as have mixed-use
zoning districts. There are three potential regulatory
changes that could encourage more multi-unit
residential development with affordable outcomes.
All should be explored and are discussed in greater
detail later in Part 3:
1. Addition of an inclusionary housing requirement
in mixed-use districts when the project is
substantially or majority residential.
2. Rezonings, either developer initiated
or potentially legislative (following the
comprehensive plan update), to mixed-use
districts where multi-unit rental projects can be
built.
3. The expansion of Exception Areas, either
through site-specific, limited additions or
through broader changes to the Charter’s limits.
Site-specific additions may include, but not
necessarily be limited to, the Lutheran Legacy
Campus.
REGULATORY CONSIDERATIONS
If the City imposes an
inclusionary affordability
requirement of about
10%, with the affordability
aimed at households down to about $75,000, or
roughly 80% of the area median income (AMI—
see Appendix for 2022 AMI information) then no
subsidy is likely needed. If the City desires deeper
affordability aimed at lower-income households,
additional subsidy will be needed. Monthly rent
is generally 1% of a unit’s total development cost
(TDC). Or, TDC is roughly 100 times the monthly
rent. So, for example, if the City were seeking a
further $500 per month reduction in the rent of
an inclusionary affordable unit, it would need to
provide the developer an additional $50,000.
Affordable housing developers for lower-income
units will no doubt be accessing other subsidy
sources, like Low Income Housing Tax Credits,
and the City may choose to provide additional
subsidy to support the project, per Policy D (see
page 29).
SUBSIDY CONSIDERATIONS
Development Regulations Subsidies
40 41Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Build more attached ownership units where possible and achieve inclusionary, mixed-income outcomes.
The total development costs for single-unit detached houses
make them unaffordable for the households in question.
Attached townhouses, however, offer an alternative that could
be priced affordably for them.
The Mixed-Use Neighborhood (MU-N) zoning district,
which was intended to be a true mixed-use district where
neighborhood-serving ground floor retail and commercial
uses would coexist with residential uses, has instead become
a highly effective tool for the development of townhouses in
Wheat Ridge. This has been in response to market demand for
newly built single-unit ownership product at a more affordable
price point than a detached house. MU-N zoning was purposely
concentrated along W. 38th Ave. but has also become
common in rezoning requests for developers seeking to build
townhouses. MU-N, as it exists today, presents Wheat Ridge
with two challenges, and opportunities:
1. First, many of the townhouse units that have been built
and sold in recent years have not been affordable to
households with incomes below $150,000. But they could
be, through the imposition of inclusionary requirements,
and the possible application of some subsidy. czb’s analysis
suggests that roughly 10% of units within a new project
could be made affordable to households with lower
incomes, down to about $120,000,
2. Second, MU-N has not led to true mixed-use outcomes as
the market for first floor retail and commercial spaces has
not enticed developers, while residential demand has been
seen as a good bet. But this could change.
Scattered sites citywide
OPPORTUNITY
TARGET MARKETS THE OPPORTUNITY
GEOGRAPHIC FOCUS
#2
Households with incomes
$100,000 to $149,999
PART 3 Taking Action
Revisions to the existing MU-N district,
alongside the creation of a new R-4
residential zoning district, could help
address both challenges and opportunities
described here. MU-N should be amended to better achieve the
mixed-use outcomes for which it was intended while a new R-4
district, keeping with the naming convention of the City’s other
residential zoning districts, should become “the townhouse district”
while imposing affordability requirements that attached ownership
projects at or near 21 DUA should be able to meet. R-4 would
effectively become an incentive district, based on “gives” and
“gets” as described on page 37. The allowance to the private sector
to maximize land and build townhouses up to 21 DUA should be
matched to a requirement that the City receive some community
benefit.
1. The City should consider requiring MU-N to produce EITHER
mixed-use, or inclusionary affordable housing.
2. Maximum allowable density in R-4 could vary based on location.
If a site with R-4 zoning is in a location subject to Charter limits, it
would be capped at 21 DUA, just as most MU-N sites have been. If
it is in an Exception Area, it could exceed 21 DUA. (This report does
not recommend any locations where a new R-4 district should
apply. It is recommended as a tool for the toolbox.)
3. R-4 development standards would need to be calibrated for
context sensitivity.
4. R-4 sites over one acre should be exempted from any requirement
to enter a Planned Residential Development (PRD) process. The
new district should be designed well enough that its outcomes
are predictable for both the developer and the community.
REGULATORY CONSIDERATIONS
If the City
imposes an
inclusionary
affordability
requirement of
about 10%, with the affordability
aimed at households down
to about $120,000, or roughly
100% of the area median
income (AMI—see Appendix for
2022 AMI information) then no
subsidy is likely needed. If the
City desires deeper affordability
aimed at lower-income
households, additional subsidy
will be needed.
SUBSIDY CONSIDERATIONS
Development Regulations
Subsidies
42 43Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Preserve and upgrade existing affordable rental units.
Wheat Ridge is home to thousands of aging rental units
that are affordable to renter households with incomes
below $75,000 and even below $50,000. Age and quality
are contributing factors to the relatively low rents. Many
of these units are, at the time of this report, in need of
investment and upgrades but if the private sector takes
on these improvements alone, it will necessarily mean
an increase in rents because the investment must be
recovered. The properties containing the rental units in
question are scattered all over the city, not concentrated
in any one location. Improving the quality of older housing
is good for the city and its neighborhoods, and good for
tenants, but rising rents present an affordability challenge.
The City can overcome the dilemma of conditions and
affordability by investing directly in private rental properties
under the “gives” and “gets” approach. A program that
provides grant funding for rental unit upgrades in
exchange for preservation of affordable rents creates
win/ win outcomes.
Scattered sites citywide
OPPORTUNITY
TARGET MARKETS THE OPPORTUNITY
GEOGRAPHIC FOCUS
PART 3 Taking Action
Households with
incomes below
$50,000
Households with incomes
$50,000 to $74,999
#3
Given rising land
costs and the aging of
structures, there may
be a growing incentive
over time to tear down older properties and
redevelop them. While it is unlikely that an owner
would pursue this path without increasing the
number of units, there are plausible scenarios
where it could happen. A “no net loss” policy
applied strategically under certain conditions
could help limit the redevelopment of such
properties in such a way that they result in fewer
units, and might create an incentive instead to
rehab the property.
REGULATORY CONSIDERATIONS
A high-level estimate at
the time of this report
for per unit cost to
rehab rental units while
maintaining affordable rents the $50,000 to
$74,999 target market is $50,000. For the lower-
income target market, the estimate is an average
of $100,000.
In reality, the per unit cost will vary not only by
target market, but also by property. The City,
should it pursue an affordable rental rehab
program, should not set firm limits per unit,
but rather accept proposals and determine
reasonable costs based on the proposals.
Developing sufficient funding for a rehab program
is critical. Upgrading just twenty affordable units
could cost over $1M. Ideally, program funds will
flow through a new Wheat Ridge Housing Fund
(see page 51) and funds could be derived from:
• Community Development Block Grants in
partnership with Jefferson County.
• City lodging tax revenues from short-term
rentals.
• New impact fees the City might consider.
• State programs, including new resources
potentially made available by the passage of
Proposition 123 in November 2022.
SUBSIDY CONSIDERATIONS
Development Regulations Subsidies
44 45Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Maximize the potential for the Lutheran Legacy Campus redevelopment to achieve inclusionary, mixed-income outcomes.
SCL Lutheran is building a new facility
and will be vacating its historic 100-acre
Lutheran Hospital campus in the heart
of Wheat Ridge in the coming years.
The potential redevelopment of this site
offers ample opportunity to creatively
develop new affordable housing.
Although the details of any future
redevelopment proposals are as yet unknown, the City can
be assured that its participation will be required. The site
will require rezoning, infrastructure investment, potential
use of the City’s Urban Renewal authority, and more. The
City should look at the future Lutheran redevelopment as a
partnership, in which “gives” and “gets” will apply. As a once
in a generation redevelopment opportunity, likely to include
a substantial amount of new housing, the City should make
clear its expectation that a significant amount of affordable
housing will be included in the eventual redevelopment.
In order to both make best use of the land for residential
development, and to lower land cost per unit to support
affordability, the City should anticipate and plan for attached
housing products. It is possible that the redevelopment, and
the resulting public benefit, could be helped by an exemption
from the Charter limits on height.
Lutheran Legacy Campus
OPPORTUNITY
TARGET MARKETS THE OPPORTUNITY
GEOGRAPHIC FOCUS
PART 3 Taking Action
#4
Households with
incomes $100,000
to $149,999
Households with
incomes $75,000
to $99,999
The Lutheran site will
require a new zoning
designation in order to
be redeveloped. It also
may possibly benefit from an exemption from
the Charter’s limits on height in order to have the
flexibility necessary for residential development
that can create value in the site and the
conditions for a range of inclusionary affordable
outcomes. There are two factors at play that
could potentially support a residential height
exemption on the site:
1. Lutheran already exceeds the existing
residential height limit for its hospital use,
meaning the site historically is known for
greater than normal height.
2. The City is already exploring the use of Urban
Renewal for the site, which historically is
accepted in the community as precondition
and co-existing with height exceptions.
The City should continue down the path of
exploring Urban Renewal and a height exception
for the Lutheran site in order to maximize options
for public benefit of the eventual redevelopment.
REGULATORY CONSIDERATIONS
Until there is a proposal
for redevelopment, it is far
too soon to know whether
financial incentives from
the City will have a role to play. The unique nature
of the project means the City should not set
firm affordability requirements at the outset, nor
should it have any firm ideas about its financial
participation.. Instead, “gives” and “gets” should
flow from the negotiations between the future
developer and the City.
SUBSIDY CONSIDERATIONS
Development Regulations Subsidies
46 47Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
#1
#2
#4
#3
#1
#2
#4
#3
#1
#2
#4
#3
#1
#2
#4
#1
#2
#3
#4
#3
#1
#2
#4
#3
#1
#2
#4
#2
#4
#3
#1
#2
#1
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
PRIORITY LEVEL 1
Action Items: Prioritizing for Progress
Realizing Wheat Ridge’s key housing opportunities requires a series of actions, but not all action items will have the same level of impact, and some may be achievable sooner while others will take more time. The combination of these factors helps to establish a logical prioritization of action items. The following pages describe, at a summary level, the recommended action items. More detailed information for each can be found starting on page 50. The proposed timing of action items is tentative and subject to change based on events.
PART 3 Taking Action
Ac
t
i
o
n
It
e
m
Revise Zoning
Scheme for
Community Benefit
Wheat Ridge
Housing Fund
Housing-
Supportive Code
Amendments
Continue
Lutheran Legacy
Implementation
Efforts
Housing Staff Comprehensive
Plan Update
Naturally Occurring
Affordable
Housing (NOAH)
Preservation
Program
A program to make grants from the Wheat Ridge Housing Fund to rental property owners to upgrade aging rental units in exchange for affordable rents.
Update Development Code
and Zoning Map
Exploration of
Changes to Charter
Limits on Height and
Density
Update
Affordable
Housing Strategy
and Action Plan
De
s
c
r
i
p
t
i
o
n
Require all projects in mixed-use districts to EITHER produce mixed-use or inclusionary affordable housing, and establish a new R-4 district with inclusionary requirements.
A dedicated fund to receive, hold, and deploy financial resources specifically in support of affordable housing activities.
Amend the City’s code to support affordable housing development in areas such as: process, fees, parking minimums, “no net loss,” etc.
Continue preparing for the eventual Lutheran redevelopment and set clear expectations.
A staff person dedicated to housing program management.
Use the comprehensive plan process to reaffirm community support for affordable housing goals and establish community’s vision for growth and development.
Following the update to the comprehensive plan, update the City’s code and zoning map to reflect the plan.The community-wide discussion of whether, where, and how to accommodate new housing is best suited for the comprehensive plan where public engagement will play an important role.
Following the update to the comprehensive plan, establish a commission to study the possibility of amending the City Charter’s current limits on height and density in order to make a recommendation for a potential ballot question.
Update this document to respond to new conditions and events.
Op
p
o
r
t
u
n
i
t
y
Im
p
a
c
t
e
d
Im
p
l
e
m
e
n
t
a
t
i
o
n
St
e
p
s
• Strengthen Requirement for Mixed-Use or Inclusionary Affordable Housing in Mixed-Use Districts
• Create a New R-4 Residential District
• Establish Fund
• Identify Initial One-Time Sources
• Identify Recurring Sources
• Develop Funding Guidelines
• Ordinance • Complete Evaluation of Potential Urban Renewal
• Consider Exemption for Charter Limits
• Negotiations and Plans
• Job Description
• Recruitment
• Evaluation of Need for Additional Staff
• Preliminary Scope and Solicitation of Consultants if Appropriate
• Project Scoping and Organization
• Project Initiation
• Plan Completion and Adoption
• Identify Funding Sources
• Design Program
• Solicit Proposals for First Funding Round
• Preliminary Scope and Solicitation of Consultants if Appropriate
• Project Scoping and Organization
• Project Initiation
• Code Completion and Adoption
• Establish Charter Commission
• Commission Findings and Recommendation
• Potential Ballot Question
• Preliminary Scope and Solicitation of Consultants if Appropriate
• Project Initiation
• Analysis and Strategy Completion
PRIORITY LEVEL 2 PRIORITY LEVEL 3
48 49Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
#2
Revise Zoning Scheme for Community Benefit
The City’s existing mixed-use districts do not clearly mandate mixed-use unless the site is over five acres. As a result, districts that were meant to produce true mixed-use outcomes have mostly produced market-rate housing units. The City can adjust its zoning scheme to derive more community benefit either through true mixed-use, with active ground floor uses, or inclusionary affordable housing. As long as the market continues to drive development of housing in mixed-use districts, the City stands a strong chance of getting some affordable units if it implements this recommendation.
A new zoning district, called R-4, can become the appropriate zoning tool for production of attached ownership housing, filling the role that the Mixed-Use Neighborhood (MU-N) district has been playing up to the time of this report. Imposing an inclusionary requirement on the district will help facilitate the delivery of some affordable ownership opportunities in a product that has proven successful in Wheat Ridge in recent years.
1PRIORITY LEVEL
OPPORTUNITIES IMPACTED
Attached Ownership Units with Inclusionary
IMPLEMENTATION STEPS
TARGET MARKETS
Strengthen Requirement for Mixed-Use or Inclusionary Affordable
Housing in Mixed-use Districts
Existing mixed-use districts should be amended to require EITHER true
mixed-use with active ground floor uses, OR inclusionary affordable
housing. The exact requirements should be calibrated to market
conditions, and the City should consider a “fee-in-lieu” option as an
alternative form of compliance.
Create a New R-4 Residential District
Concurrent with the recommended changes to mixed-use districts,
the City should create a new zoning district that accommodates
housing types up to 21 DUA as a use by right, with inclusionary housing
requirements. The district may have a variant for Charter Exception areas
where greater densities are possible. R-4 should offer an alternative
to a PRD process for projects larger than one acre and development
standards should be calibrated to account for neighborhood context.
Households
with incomes
$100,000 to
$149,999
INCLUSIONARY
ACTION ITEM
PART 3 Taking Action
TIMING
Wheat Ridge Housing Fund
ACTION ITEM
There are specific actions recommended in this strategy that will require funding, and potential future projects that may require public subsidy to come to fruition. Having a reliable source of local funds allows the City to be both proactive and opportunistic as it builds programming and contemplates housing investments. Wheat Ridge should establish and provide resources for a Wheat Ridge Housing Fund (WRHF). The WRHF is envisioned as a vehicle for grants and loans to properties and projects that align with the City’s policies and further the development of affordable housing in Wheat Ridge.
1PRIORITY LEVEL
OPPORTUNITIES IMPACTED
IMPLEMENTATION STEPS
TARGET MARKETS
TIMING
#1 Multi-Unit Rental Units with Inclusionary
#2 Attached Ownership Units with Inclusionary
#3 Preserve and upgrade existing affordable rental units
#4 Lutheran Legacy Campus
Establish Fund
Take necessary steps to establish a Wheat Ridge housing fund under the
authority of City Council.
Identify Initial One-Time Sources
To provide initial seed funding, identify possible one-time sources that can
sensibly be linked to housing uses. These may include unrestricted surplus
funds, unspent bond proceeds, housing-related grant funds, or other funds.
Identify Recurring Sources
One-time infusions will always be important to the WRHF, and they are
appropriate to such a use because awards to affordable housing projects is
not a recurring obligation for the City. But the City would be wise to identify
an annual recurring source of funds that can continuously replenish the fund,
even if the amount appears relatively small at the beginning. Potential sources
might include lodging tax derived from short-term rentals, an annual general
fund allocation, or future revenues from a possible housing impact fee or
commercial linkage fee (either of the latter would require a nexus study).
Develop Funding Policies and Guidelines
At minimum, it is recommended that the WRHF be set up to provide funding
for the NOAH Preservation Program (see page 56). Beyond that, the City
needs to decide what it will fund, and how it will make decisions about what to
fund. The following approaches to funding availability should be considered,
and are not mutually exclusive:
-Rolling basis, subject to proposals.
-Annual basis, with proposals solicited and weighed against each other
competitively.
ALL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
#1 Multi-Unit Rental Units with Inclusionary
Households
with incomes
$75,000 to
$99,999
50 51Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 3 Taking Action
Housing-Supportive Code Amendments
ACTION ITEM
While the logical sequence for a rewrite or update of the zoning ordinance should commence upon completion of the City’s comprehensive plan, there are a number of housing related ‘quick fixes’ that the City could integrate within the current code.
1PRIORITY LEVEL
OPPORTUNITIES IMPACTED
IMPLEMENTATION STEPS
TARGET MARKETS
Ordinance Amending Code
Craft an ordinance with changes focused on at least the following:
-Expedited review for projects with an affordable component. This may
include changes to the triggers that cause a residential project to enter
the Planned Residential District (PRD) which can create uncertainty
and delay (The addition of the R-4 zoning district may also provide an
alternative to PRD.).
-Fee waivers or reductions for projects with an affordable component.
Although City-imposed development fees are a relatively small portion
of the total development costs of a housing unit, any City contribution to
affordable housing can help to shrink gaps.
-“No net loss” requirement for redevelopment projects. The demolition of
a residential property and its replacement with a project that has fewer
units is not highly likely, but the City can help keep this from happening
through a policy that requires one for one replacement of residential
units. “No net loss” provisions should be evaluated for application only
under specific conditions because there may be other public benefits
derived from a redevelopment project (e.g. elimination of nonconforming
use, affordable housing, etc).
-Reduced parking minimums. Provision of parking represents a
development cost and, in areas exempted from the Charter’s limits on
density, parking can be an inefficient use of land that reduces a project’s
capacity to lower land cost per unit. In cases where unit occupancies
are expected to be low, and/or transit availability is sufficient, reducing
parking requirements can be a contributor to better affordability.
#1 Multi-Unit Rental Units with Inclusionary
#2 Attached Ownership Units with Inclusionary
#3 Preserve and upgrade existing affordable rental units
#4 Lutheran Legacy Campus
ALL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TIMING
Continue Lutheran Legacy Campus Implementation Efforts
ACTION ITEM
1PRIORITY LEVEL
OPPORTUNITIES IMPACTED
#1 Multi-Unit Rental Units with Inclusionary
#2 Attached Ownership Units with Inclusionary
#4 Lutheran Legacy Campus
SCL Lutheran has indicated that it will not be seeking redevelopment of its Lutheran Hospital site until it has opened its new facility and transferred all operations there. Until that time, the City should continue to be proactive in planning and discussions around the future of the Lutheran Legacy Campus.
IMPLEMENTATION STEPS
Complete Evaluation of Potential Urban Renewal
At the time of this report, the City is studying the possibility of
designating the Lutheran Legacy Campus as an Urban Renewal Area.
Enter into and Complete Negotiations and Plans
The Lutheran redevelopment has the potential to reshape Wheat Ridge.
The City is not just an important stakeholder, but also a partner in the
eventual project, controlling many of the levers that will determine what
can happen on the site and how valuable it becomes. The City, working
from the Lutheran Legacy Campus Master Plan and this strategy,
should work in an ongoing manner with SCL Lutheran to make clear
expectations for the site, including a substantial amount of affordability.
Evaluate the Possibility of Action to Exempt Lutheran Legacy Campus
from Charter Restriction on Height
As described earlier in the document, maximizing the affordable housing
contribution of the site could possibly involve building types that exceed
the Charter limits. Due to the site’s size, it is hard to envision a scenario
where redevelopment exceeds the density limit, but the height limit is a
more obviously limiting factor for multi-unit development. This should be
weighed depending on a future redevelopment proposal.
TARGET MARKETS
TBD
Households
with incomes
$75,000 to
$99,999
Households
with incomes
$100,000 to
$149,999
TIMING
52 53Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 3 Taking Action
Housing StaffACTION ITEM
This strategy recommends specific programming that includes significant management responsibilities, and actions that will produce affordable housing units whose ownership is likely to remain in the private sector. All of this comes with an administrative burden that will fall on the City. Program management is labor intensive, and the maintenance of an affordable housing supply in private hands requires someone to handle the ongoing compliance work. It is therefore recommended that the City appoint a Housing Manager to oversee these efforts.
2PRIORITY LEVEL
OPPORTUNITIES IMPACTED
IMPLEMENTATION STEPS
TARGET MARKETS
#1 Multi-Unit Rental Units with Inclusionary
#2 Attached Ownership Units with Inclusionary
#3 Preserve and upgrade existing affordable rental units
#4 Lutheran Legacy Campus
Job Description
• Identify reporting structure.
• Describe responsibilities, which may include but not be limited to:
• Managing the NOAH Preservation Program.
• Ensuring compliance for privately held affordable rental and
ownership units.
• Evaluating proposals to the WRHF, and its programs, and working
with other staff to make funding recommendations to City Council.
• Working with other City staff, including legal staff, to craft
housing-related provisions to development agreements and
other legal documents as necessary to ensure compliance with
affordability provisions.
• Managing grant writing and resource development efforts for
affordable housing activities.
Recruitment and Hiring
ALL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TIMING
Comprehensive Plan Update
ACTION ITEM
The City’s current comprehensive plan, Envision Wheat Ridge, was adopted in October 2009 and has served the City well. But much has changed since its adoption during the height of the Great Recession. Today, Wheat Ridge enjoys the benefits of a thriving Denver area economy with real estate values as a primary indicator. Combined with a gradual demographic shift toward households with higher educational attainment levels and higher incomes, the impacts on housing affordability have been magnified.
A new comprehensive plan, tentatively planned to begin in 2023, offers the opportunity to reaffirm community support for affordable housing with outcomes that are measurable and achievable. Much of the work done for this project can and should be used to guide the housing components of the new comprehensive plan.
2PRIORITY LEVEL
OPPORTUNITIES IMPACTED
IMPLEMENTATION STEPS
TARGET MARKETS
Preliminary Scope and Solicitation of Consultants if Appropriate
Determine a preliminary scope and issues of particular emphasis, if any.
Project Scoping and Organization
Finalize a scope of work, including schedule and any stakeholder or public
engagement needs, and organize staff and consultants into a project team.
Project Initiation
Kick off planning process and communicate process and schedule to the
public.
Plan Completion and Adoption
Move draft plan through adoption process, including public events,
Planning Commission review and recommendation, and City Council
approval.
#1 Multi-Unit Rental Units with Inclusionary
#2 Attached Ownership Units with Inclusionary
#3 Preserve and upgrade existing affordable rental units
#4 Lutheran Legacy Campus
ALL
TIMING
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
54 55Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 3 Taking Action
NOAH Preservation Program
ACTION ITEM
PRIORITY LEVEL
OPPORTUNITIES IMPACTED
Wheat Ridge is home to thousands of aging rental units that are affordable to renter households with incomes below $75,000 and even below $50,000. Age and quality are contributing factors to the relatively low rents. The City can overcome the dilemma of conditions and affordability by investing directly in private rental properties under the “gives” and “gets” approach. It is recommended that the City establish a program for naturally occurring affordable housing (NOAH) that provides grant funding for rental unit upgrades in exchange for preservation of affordable rents creates win/win outcomes.
IMPLEMENTATION STEPS
Identify Staff Resources
A NOAH rehab program will come with an administrative burden, and
proper staffing is a prerequisite for the undertaking to be successful (see
Housing Staff on page 54).
Identify Funding Sources
It is envisioned that the the Wheat Ridge Housing Fund will support this
program, premised on its establishment per the recommendations on
page 51. The rehab program, however, may specifically be a good fit for
CDBG or HOME funds from Jefferson County or future Colorado housing
implementation funds as well.
Design Program
A program like this one requires careful design with many details to be
worked out, including program budget with sources and uses, eligibility
criteria, minimum standards for specifications, etc. Before the program
can go live, these items and more must be addressed.
Solicit Proposals for First Funding Round
When the program has been designed and funds are ready to be
deployed, interest must be solicited from local rental property owners.
The City should issue a request for proposals with uniform application or
proposal forms that property owners can fill out.
#3 Preserve and upgrade existing affordable rental units
Households
with incomes
below $50,000
TARGET MARKETS
Households
with incomes
$50,000 to
$74,999
2
Households
with incomes
$75,000 to
$99,999
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TIMING
Update Development Code and Zoning Map
ACTION ITEM
#1
The Wheat Ridge zoning ordinance and map have received minor piecemeal text and mapping updates on an as-needed basis over the past decade. The last major rewrite or update to the zoning ordinance was in 2001. Following the adoption of the comprehensive plan, the City should update the zoning ordinance and map to ensure that it is consistent with the comprehensive plan and other City-led planning efforts including this Strategy and Action Plan and the Lutheran Legacy Campus Master Plan and/or successor plans.
3PRIORITY LEVEL
OPPORTUNITIES IMPACTED
Multi-Unit Rental Units with Inclusionary
IMPLEMENTATION STEPS
TARGET MARKETS
Preliminary Scope and Solicitation of Consultants if Appropriate
Based on the results of the comprehensive plan, including policy
direction and identified community priorities, determine a preliminary
scope and areas of focus for the code update.
Project Scoping and Organization
Finalize a scope of work, including schedule and any stakeholder or
public engagement needs, and organize staff and consultants into a
project team.
Project Initiation
Kick off code update project and communicate process and schedule to
the public.
Code Completion and Adoption
Move updated code through adoption process, including public events,
Planning Commission review and recommendation, and City Council
approval.
ALL
#2 Attached Ownership Units with Inclusionary
#3 Preserve and upgrade existing affordable rental units
#4 Lutheran Legacy Campus
TIMING
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
56 57Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
PART 3 Taking Action
Exploration of Changes to Charter Limits on Height and Density
ACTION ITEM
Section 5.10.1 of the City Charter limits residential density to 21 dwelling units per acre and restricts the height for residential structures to thirty-five feet (35’) while nonresidential structures are allowed a maximum height of fifty feet (50’). There are areas within the city where these restrictions do not apply.
As described in this document, residential heights and densities beyond the Charter limits are important contributors to facilitating new housing development in a land-constrained community, like Wheat Ridge, and enabling new affordable housing opportunities.
If community sentiment reflected in a new comprehensive plan suggests that Wheat Ridge confirms its commitment to affordable housing, is accepting of a greater amount of new development, including new housing at heights and densities above those allowed citywide in the Charter, the existing limits will merit reexamination.
3PRIORITY LEVEL
OPPORTUNITIES IMPACTED
IMPLEMENTATION STEPS
TARGET MARKETS
Complete update to the comprehensive plan
The comprehensive plan should provide community-supported direction
on Wheat Ridge’s vision for development.
Establish Charter Commission with at least the following questions:
-Should the Charter control limits on height and density instead of the
city’s code?
-If so, should the limits, or the geography to which they apply, be
changed?
Commission Findings and Recommendation
The Charter Commission should develop a report including its analysis,
findings, and recommendations for public consideration.
Potential Ballot Question
If the Charter Commission recommends changes to the Charter, a
question should be drafted for the next appropriate election.
ALL
#2 Attached Ownership Units with Inclusionary
#4 Lutheran Legacy Campus
Multi-unit Rental with Inclusionary
Attached Ownership with Inclusionary
INCLUSIONARY
INCLUSIONARY
#1 Multi-Unit Rental Units with Inclusionary
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TIMING
Update Affordable Housing Strategy and Action Plan
ACTION ITEM
Prepared by czbLLC
NOVEMBER 2022
3PRIORITY LEVEL
OPPORTUNITIES IMPACTED
As the data and analysis in this document illustrate, housing market conditions can shift quickly. A number of circumstances affecting the assumptions within and implementation of this strategy are likely to be different within a few short years. It is therefore recommended that the City of Wheat Ridge update this document five years from its adoption.
Preliminary Scope and Solicitation of Consultants if Appropriate
Determine a preliminary scope and issues of particular emphasis, if any.
Project Initiation
Finalize scope of work and begin analysis.
Analysis and Strategy Completion
Present findings and recommendations and consider City Council
adoption.
IMPLEMENTATION STEPS
#1 Multi-Unit Rental Units with Inclusionary
TARGET MARKETS
ALL
#2 Attached Ownership Units with Inclusionary
#3 Preserve and upgrade existing affordable rental units
#4 Lutheran Legacy Campus
TIMING
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
58 59Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Appendix
60 61Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Affordable Housing Tools Analysis Matrix
Tool General Applicability Applied to Wheat Ridge Included
in HB 21-
1271
Use of vacant
publicly owned
real property
The cost of land is generally about
one-third of total development
costs. When publicly-owned land
can be contributed for affordable
housing development, at a cost
below its market value, the savings
can be passed on to future residents.
Wheat Ridge does not have any City-
owned land available for this purpose. YES
Program to
subsidize or
otherwise reduce
local development
review or fees
Fees are one cost of many in
development. Reducing fees
can lower total development
costs with savings passed on to
future residents. In most cases,
development fees are not a major
percentage of costs and reducing
them provides marginal benefit for
affordability.
In Wheat Ridge, city-imposed
development fees are less than
$10,000 per unit on total development
costs that are generally at least
$250,000 per unit. Water- and sewer-
related fees are not directly controlled
by the City. Waiver or reduction of
development fees may contribute
to improving affordability, but on
their own provide minor affordability
benefit.
YES
Expedited review
process for
affordable housing
Expedited
development
review process
for acquiring
or repurposing
underutilized
commercial
property
Expediting review processes
entices developers to take on
projects by making it easier to
move from project application to
project approvals and ultimately
to construction. It can also
decrease project costs if fewer
hours are required from engineers,
architects, and lawyers who
support developers through review
processes.
While speed of review processes
is a net positive for developers, the
real key is predictability of process.
Uncertainty and unpredictability
make it difficult to know what to
plan for or how long things will take.
The potential for negative domino
effects resulting in delays dissuades
developers from the already
inherently risky development process.
Wheat Ridge should work toward fast
and predictable review processes but,
if it must choose only one, it should
focus on predictability.
YES
APPENDIX
Tool General Applicability Applied to Wheat Ridge Included
in HB 21-
1271
Density bonus
program
Density bonuses are an incentive
that allow developers extra market-
rate units above and beyond what
the base zoning allows, in exchange
for the inclusion of affordable
housing units.
Density bonuses have a mixed record
of success, because achieving the
bonus often means building to heights
requiring much more expensive steel
frame construction. The increased
expense offsets the bonus benefit
to the developer. Between market
demand and community tolerance
for height, Wheat Ridge is likely to
remain a city where prevailing building
heights will not support density
bonuses. (Also see later discussion of
Inclusionary Housing.)
YES
Sub-metering of
utility charges for
affordable housing
projects
In most multi-unit buildings, utility
costs such as water, sewer, electric,
and gas are common to the building
and the operator’s costs are passed
on to tenants via the rent. Sub-
metering each individual unit allows
the tenant to control the usage and
remove the utility cost from the rent.
Cutting back on utility usage then
becomes an option for a tenant
hoping to reduce costs.
The City of Wheat Ridge is not a
utility provider, including for water
and sewer, so this would be an issue
requiring engagement by other
entities. It is plausible that sub-
metering could help a tenant pay less
for utilities than would otherwise be
included in the rent, but in most new
projects where utilities are included
in rent, the general uniformity of unit
sizes and household sizes, and the
correlation of rent with both of those,
should mean that sub-metering would
not reveal much of a meaningful
difference in utility usage between a
commonly-metered or sub-metered
unit, and thus would not result in
much cost savings.
YES
Subsidies for
infrastructure
costs incurred by
affordable housing
development
Infrastructure costs are project-
specific, depending on the type
of project, its setting, availability
of existing infrastructure, etc. In
cases where a project may need
substantial new or upgraded
infrastructure, the costs can be
substantial.
The City of Wheat Ridge has powerful
tools, such as Urban Renewal and
Tax Increment Financing, that allow
it to assist projects under certain
circumstances. It could also provide
financial subsidies from general funds
or dedicated housing funds. Either
of these options could be critically
important in supporting projects on
a case-by-case basis, depending on
needs.
YES
62 63Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
Tool General Applicability Applied to Wheat Ridge Included
in HB 21-
1271
Granting duplexes,
triplexes, or other
appropriate multi-
family housing
options as a use by
right
New single-unit detached houses in
any strong market are generally not
considered to be affordable options.
Other housing types, from duplexes
to high-density multi-unit rental
are assumed to have lower per unit
development costs resulting in less
expensive options than single-unit
detached houses.
Duplexes and triplexes are allowed
by right across much of the city
already, and there are a variety of sites
across the city where townhouses
and multi-unit properties are also
feasible. Given land and construction
costs, housing development in
Wheat Ridge’s land-constrained
setting generally becomes feasible
at 15 units per acre, and the zoning
designations within which this is
achievable are the mixed-use districts.
Substantially increasing available
housing opportunity sites likely means
expanding the areas covered by
mixed-use districts.
YES
Classification
of a proposed
affordable housing
development as a
use by right when it
meets density and
design standards
of a given zoning
district
Zoning does not make any use
distinctions between affordable
housing and market-rate housing,
nor can it. So long as a community
has one or more zoning districts
where housing can be built,
affordable housing projects should
be subject to all the same rules as
market-rate projects.
Wheat Ridge development code does
not discriminate against affordable
housing. Affordable housing must
meet density and design standards
just as market-rate projects must.
YES
Authorizing
Accessory
Dwelling Units
(ADU) as a use by
right in single-
family zoning
districts
ADUs are small secondary units on
an otherwise single-unit detached
property. There is no guarantee that
a newly constructed ADU will meet
a local definition of “affordable.” It is,
however, one method of increasing
the housing supply on existing land.
ADUs are allowed in all residential,
agricultural, and mixed-use
neighborhood zone districts as an
accessory use to a single-unit home.
ADUs are newly allowed in Wheat
Ridge, so it is too early to know how
widely they might be adopted and
built, how many will be used as long-
term vs short-term rentals, and what
their rents might be.
YES
Allowing (or
better supporting)
Planned Unit
Developments
(PUD) with
integrated
affordable housing
Planned Unit Developments are
a tool to facilitate development
projects that are difficult to achieve
under regular zoning but which the
community wants to approve. There
may be some projects that include
affordable housing that would
benefit from such an approach,
depending on the regulations in the
community.
Wheat Ridge already uses planned
developments in different forms.
Planned residential development
(PRD) and planned mixed-use
development (PMUD) designations
are used to help facilitate housing
projects that otherwise are difficult to
achieve under base zoning districts.
YES
APPENDIX
Tool General Applicability Applied to Wheat Ridge Included
in HB 21-
1271
Allowing (or better
supporting) the
development
of small square
footage residential
unit sizes
Because each square foot of floor
area in a unit comes at a cost,
shrinking the square footage in a
unit can decrease its cost. In recent
years, some cities have allowed
the construction of what are called
“micro-units” which may be as small
as 200 square feet, and sometimes
offer more common amenities
than are found in standard rental
properties. The production of such
small units assumes a market that
will pay to live in them.
Small units will be difficult or
impossible to achieve anywhere
except in the Charter exception
areas because they inevitably will
exceed the 21 DUA limit. Small units,
however, face a potential marketability
challenge despite the relative
affordability that may result from their
small size. A single person can live
in a unit meant for three, but three
people will struggle to live in a unit
built for one. Very small units do not
have the broadest potential market.
Developers, owners, and financiers of
rental housing know this and factor
it into their decision making. Land
use controls are but one factor in
determining whether such projects
get built. Another is whether the
project represents an acceptable risk
for the private sector.
YES
Lessened
minimum parking
requirements for
new affordable
housing
The cost of a parking spot can be
tens of thousands of dollars per unit.
In addition, reducing the space used
for parking may allow for additional
density that helps lower the cost
per unit, with savings passed on to
future residents.
Parking requirements in mixed-use
districts, where affordable housing
opportunities are most likely to be
found, are one space per unit. In
locations and situations where transit
service is deemed to be sufficient
for reducing parking further, the City
should explore possibilities for doing
so.
YES
Creation of a land
donation, land
acquisition, or land
banking program
The cost of land is a substantial
portion of total development costs.
Any suitable land for affordable
housing that can be procured
for less than market value helps
lower development costs and the
savings can be passed on to future
residents.
If the City finds itself in a situation
where it can somehow acquire
and bank land for future housing
development, it would be wise
to consider doing so. These
opportunities may be few and far
between, however, given the value of
land in the region.
YES
64 65Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
APPENDIX
Tool General Applicability Applied to Wheat Ridge Included
in HB 21-
1271
Calibrate and Allow
Sufficient Densities
for Affordable
Opportunities
In expensive markets where land
costs are a major factor in housing
production and affordability, simply
increasing densities does not
always solve affordability problems.
Certainly a 2,000 square foot
house on a quarter acre lot will
almost always cost more than an
attached townhouse, but that does
not automatically make the latter
affordable to the desired target
markets. That said, understanding
local development conditions can
help local governments align land
use policy and regulations with their
desired affordable housing goals,
especially when other tools are used
to augment land use approaches.
Under the prevailing development
conditions—cost of land and
construction costs are the main
culprits—at of the time of this report,
it is challenging to develop housing in
Wheat Ridge below 15 dwelling units
per acre (DUA) that can approach
affordability for households with
incomes below $150,00. As the
allowed units per acre increases, the
necessary economies of scale begin
to take effect and make entry level
ownership options more feasible.
These densities are only achievable in
the city’s mixed-use zoning districts,
some of which only exist in parts of
the city that are not subject to City
Charter’s limits on height and density.
Those particular districts, including
MU-C and PMUD, have recently
accommodated the City’s first new
market-rate rental units since 1980,
which are largely the same building
type that a fully affordable rental
housing project would also take.
The mixed-use district that is largely
outside the exception areas, and thus
subject to Charter limits, is MU-N,
and it has been highly successful
in facilitating new townhouse
development. czb’s analysis suggests
that these kinds of projects—attached
ownership units at or above 15
DUA and rental projects above 20
DUA—offer development economics
that enable inclusionary housing
outcomes.
NO
Tool General Applicability Applied to Wheat Ridge Included
in HB 21-
1271
Inclusionary
Housing
Inclusionary housing is a legal
mechanism under which developers
are required to set aside some
percentage of new housing units
as affordable, as defined by the
regulating jurisdiction, with some
means of alternative compliance
made available. The alternative
means is usually a “fee in lieu.” If the
inclusionary housing requirements
are calibrated properly, meaning
they are not overly onerous, projects
of a minimum size can usually meet
the requirements while maintaining
financial viability for the developer.
czb’s analysis suggests that a 10% set
aside is likely feasible so long as the
qualifying incomes, and the matching
affordable rents, are not set too low.
To be more specific, the affordable
rents should not be set much below
those affordable to a household with
an income at 80% of the area median.
For ownership units, a 10% set aside
should be paired with affordability
targets in the range of 100-120% of
the area median. In a strong housing
market with high land values, like that
of the Denver region, inclusionary
housing can be a valuable tool to get
the private sector to produce some
affordable housing. When combined
with zoning changes that create more
potential value for landowners and
developers, inclusionary housing can
become even more workable.
NO
Financial Subsidy Boiled down to its bare essence,
affordable housing work is about
filling the gap between what
housing costs to provide and what
a household can afford to pay.
This requires, in some way, shape,
or form, subsidy flowing from
somewhere, and this is almost
always from the public sector. This
is the reason for public housing, Low
Income Housing Tax Credits, and
Housing Choice Vouchers, to name a
few subsidy tools.
Wheat Ridge could raise and deploy
financial capital for a number of
housing initiatives, including but not
limited to: direct assistance to housing
developers, grant and/or loan funding
for naturally occurring affordable
rental properties in need of upgrades,
direct assistance to renters or first-
time homebuyers, and land purchases
for future affordable housing
opportunities. Potential sources of
revenues include, but are not limited
to: surplus or one-time funds, housing
related grants from other levels of
government, general revenues, and
impact fees.
YES,
but only for
infrastructure
related to
affordable
housing
development.
66 67Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
APPENDIX
Denver-Aurora-Lakewood, CO MSAFY 2022 Income Limits
FY 2022
Income Limit
Area
Median
Family
Income
FY 2022 Income
Limit Category
Persons in Family
1 2 3 4 5 6 7 8
Denver-Aurora-Lakewood, CO MSA
$117,800
Very Low (50%)
Income Limits
41,050 46,900 52,750 58,600 63,300 68,000 72,700 77,400
Extremely Low
(50%) Income
Limits ($)*
24,650 28,150 31,650 35,150 38,000 40,800 43,600 46,630
Low (80%) Income
Limits ($)
62,600 71,550 80,500 89,400 96,600 103,750 110,900 118,050
Note: Jefferson County is part of the Denver-Aurora-Lakewood, CO MSA, so all information pre-
sented here applies to all of the Denver-Aurora-Lakewood, CO MSA.This page intentionally left blank
68 69Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
This page intentionally left blank This page intentionally left blank
70 71Wheat Ridge Affordable Housing Strategy and Action Plan Wheat Ridge Affordable Housing Strategy and Action Plan
DRAFT DRAFT
DRAFT
Prepared by
czbLLC
NOVEMBER 2022