The Cortez City Council gave initial approval to a proposal to increase development density for affordable and workforce housing projects in certain zones.

According to the proposal, if a developer could show it would build affordable housing or workforce housing, a density bonus would be granted to facilitate the increased number of units per lot.

The proposed higher density standard for multifamily dwelling units stipulates the housing units must stay in the affordable range for at least 20 years. Cortez’s land use code lacks a definition of affordable housing and workforce housing.

Affordable housing would be for tenants who earn 80% or less of the median income for a household of a given size.

Workforce housing would be for tenants who earn between 80% and 140% of median income for that size household.

The median household income in Montezuma County is $50,717, according to Region 9 Economic Development District of Southwest Colorado.

To qualify for affordable housing under the proposed regulations, family earnings must be at or below 80% median household income, which is $40,573.

The 80% to 140% of median household income needed to qualify for workforce housing would be between $40,573 and $71,000.

According to the land use code, the minimum housing density for a lot in multi-family dwelling unit is 3,000 square feet of land per dwelling unit. That translates to approximately 14 units per acre.

“Generally most communities would push that up,” said City Planner Nancy Dosdall.

According to the proposal, land use code language would be adjusted so that developers committed to building affordable and workforce housing would qualify for higher density of 2,000 square feet of lot per dwelling unit.

Dosdall cited an example of how city density limits can be a barrier to housing development.

An affordable housing company sought to build a fourplex on a 10,000-square-foot lot, but they could not meet the standard of 3,000 square feet per unit. Building a threeplex was not financially feasible for the developer, Dosdall said.

The proposed density change had support for the council, and it passed a first reading 7-0. A second reading and public hearing will be held Oct. 25, prior to a final vote.

“This is a great way to approach our housing issue. This is low-hanging fruit that allows more density to happen,” said Cortez Mayor Rachel Medina.

There are two ways a developer could qualify for the density bonus.

A nonprofit or government housing developer with a mission of affordable or workforce housing would qualify. A for-profit developer would have to provide assurances that the housing would remain affordable for at least 20 years. Deed restrictions is a potential tool a developer could use to ensure a home stays affordable.

The changes also allow for mixed development projects that have affordable and workforce housing along with market rate homes.

In that case, the density would be prorated based on the percentage of affordable homes versus market units. For example, a project with 10 market units and 10 affordable units would achieve an overall density of 2,500 square feet of lot per unit.

How the affordable housing projects would be monitored and enforced long term created some discussion among City Council members and officials.

The success of the proposed changes would rely on the good faith of the developers and housing nonprofit programs to keep the units affordable. If they are used, deed restrictions would need to be followed.

Council member Rob Dobry said the city does not have enough staff or funding to consistently monitor whether affordable and workforce housing projects are meeting the standards.

Checking income levels of buyers and renters is not something the city has done in the past, and the city is not in a position to create a new housing department, he said.

Compliance and enforcement would be the responsibility of property owners, landlords and nonprofit organizations of the developments, city officials said.

Monitoring will be driven to by complaints; for example, a complaint about excessively high rent.

“If we get complaints, we will investigate and take action. It will somewhat be the honor system,” said City Manager Drew Sanders. “We don’t have the capacity to police it.”

City officials noted at the meeting that housing output is very low in Cortez compared with neighboring communities, and has not kept up with demand and changing demographics, including more young people needing homes, along with retirees moving to the area.

jmimiaga@the-journal.com