Departments of Community Development and Utilities
Reference: An Ordinance to Amend Sections 13-4-05 and 13-4-10(A) of the Brighton Municipal Code regarding Fee-In-Lieu of Water Dedication for Affordable Housing Projects
To: Mayor Gregory Mills and Members of the City Council
Through: Michael P. Martinez, City Manager
Prepared By: Holly Prather, Community Development Director and Scott Olsen, Utilities Director
Date Prepared: May 21, 2024
PURPOSE
As directed by the City Council at a study session meeting held on May 14, 2024, review and consider adoption of an ordinance allowing affordable housing projects to pay a fee-in-lieu of water dedication.
BACKGROUND
As noted at the May 14th study session meeting, City staff had previously worked with a consultant to finalize the Brighton Housing Needs and Incentive Strategies Assessment (Housing Needs Assessment) in October of 2023. The Housing Needs Assessment found, "Smaller-scale housing developers that do not typically have the time, resources, working capital, or financial backing to acquire water and improve off-site infrastructure prior to vertical construction - such as affordable projects, capitalized primarily with Low Income Housing Tax Credits (LIHTC) and other public subsidies are especially impacted by the water and infrastructure requirements." Therefore, the City should, "Specifically consider or review the following: the city's water resource policy that requires a minimum dedication of 0.27-acre-feet of water for each multi-family housing unit (and much higher for single-family units) and identify if the city could be in a better position to more cost effectively obtain and maintain water rights that could be used to serve developments geared toward smaller and affordable housing units."
Brighton Water Resources staff has worked with our water consultants to ensure we have enough raw water to allow FIL for affordable housing projects. City staff will review our raw water resources from time to time to ensure payment of FIL is still acceptable.
STAFF RECOMMENDATION
City staff is recommending approval of the draft ordinance to assist in the development of affordable housing projects within the city.
OPTIONS FOR CITY COUNCIL CONSIDERATION
The City Council has four options when considering this ordinance. City Council may:
• Approve the ordinance as drafted;
• Approve a modified ordinance;
• Not approve the ordinance; or
• Continue the item to be heard at a later, specified date.
Note: A second reading of the ordinance, if approved at first reading, will be required at a future meeting.
ATTACHMENTS
• (Draft) City Council Ordinance
• Staff Presentation