There is much confusion in the community about the terms “workforce housing,” “attainable” housing, and “affordable” housing. The Town Board and the Planning Commission have struggled with the definitions.
The terms are often conflated. It is not particularly easy to find their definitions since, to the extent that such definitions exist, they can only be found buried in the Town Development Code.
I hope to clear up some of that confusion in this article.
Workforce housing
According to §11.4.C.4. of the Estes Park Development Code, “workforce housing” is housing for people who are employed within the Estes Park School District R3 Boundary Map.
The principal purpose of the term “workforce housing” is to determine if a “density bonus” can be applied to a housing development.
The maximum density bonus for “workforce housing” is 200%, meaning that a development normally allowed a density of 8 housing units per acre could instead be developed at a density of 16 units per acre.
A housing unit is “workforce housing” eligible for the density bonus “if at least one (1) resident in each housing unit annually submits an affidavit, including a copy of a W-2 form, to the Town certifying that the resident is employed within the Estes Park School District R-3 Boundary Map.”
There is no income limit or affordability requirement associated with being in the workforce. Thus, anyone who works within the school district boundaries is eligible for workforce housing regardless of the level of their income or whether their income makes occupancy of the unit affordable.
Attainable housing
Unlike workforce housing, “attainable housing” attaches financial metrics.
Under §11.4.C.1. and 2. of the Estes Park Development Code, housing is “attainable” only if the household earns 150% or less of the Larimer County Median Income, adjusted for household size ($178,200 for a family of four).
In addition, housing costs of rental units must not exceed 30% of the “maximum income for an imputed household size…” and for owned units the percentage of permissible housing costs is upped to 40%.
The imputed household size (regardless of the actual household size) is 1.5 times the number of bedrooms in the housing unit—thus for a two-bedroom unit, the imputed household size is 3.
For a point of reference, 150% of area median income for a single person is $124,800, for a couple it is $142,650, and for a family of four it is $178,200.
“Attainable housing” is also eligible for the 200% density bonus whether or not the recipients are members of the local workforce.
Attainability calculation for a 2-bedroom housing unit
These calculations for “attainable” housing can be quite confusing since reference must be made to the 2024 Colorado County Income and Rent Tables not only for the tenant or purchaser, but also for the “imputed household size” determination.
For instance, a couple moving into a two-bedroom workforce housing rental unit would qualify if their combined income were less than 150% of the county median, determined for a two-person household ($142,650).
In contrast, the maximum permissible housing costs are determined for a household of three because of the “imputed household size” reference ($160,500 for a two-bedroom housing unit).
The housing cost limitation for attainable housing for such a property (two-bedroom) would be either 30% for rental property, or 40% for owner-occupied property of the 150% of county median income of the imputed household size ($160,500 for the two-bedroom unit).
Thus, the maximum monthly rental housing cost for this unit would be $4,013 per month (30% of $160,500 ÷ 12) and the maximum monthly owned housing cost would be $5,350 (40% of $160,500 ÷ 12).
Affordable housing
The term “affordable” is not defined in the Development Code. The term only appears in an Appendix containing instructions with respect to submission of development plans. While the housing cost limitations for attainable housing are a proxy for affordability, the term itself is not used or defined.
Various programs are designed with affordability in mind, such as the Estes Park Housing Authority Downpayment Assistance Plan.
In addition, low-income housing is typically funded by federal tax credits sold to investors in syndicated offerings. Under federal tax rules, tax credit projects typically serve those with an income of 60% of county median income or less ($49,920 for a single person, $57,060 for a couple, and $71,280 for a family of four).
Over the next two years, the Town Board is going to be doing a complete review of the Town’s Development Code, led by a professional group of community planners who understand the dynamics of a tourist-driven mountain town. Some of these definitions may be changed or clarified in the course of this effort.
Significant public engagement will be sought. The Town Board is always looking for input from the residents to assist the Board in making decisions in line with the wishes of our residents. Contact Town staff or any of the Trustees with your thoughts.
Click here for the Larimer County Median Income table or for an expanded version on the EPHA website of the 2024 Colorado County Income and Rent Tables.