Attachment A - Proposed Ordinance 8712

Regular Meeting, November 6, 2025 · item 5B: Second reading and consideration of a motion to adopt Ordinance 8712 amending Section 4-20-62, “Capital Facility Impact Fee,” and Chapter 8-… · 5 pages

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ORDINANCE 8712

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AN ORDINANCE AMENDING SECTION 4-20-62, “CAPITAL FACILITY IMPACT FEE,” AND CHAPTER 8-9, “CAPITAL FACILITY IMPACT FEE,” B.R.C. 1981, ADDING A NEW AFFORDABLE HOUSING IMPACT FEE RATE FOR CERTAIN SINGLE-UNIT DWELLING DEVELOPMENTS; AND SETTING FORTH RELATED DETAILS

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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER,

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COLORADO:

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Section 1. Section 4-20-62, “Capital Facility Impact Fee,” B.R.C. 1981, is amended by adding a new Table 2 and renumbering the remaining tables as follows:

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(a)

Impact Fee Rate: No person engaged in nonresidential or residential development in the city shall fail to pay a development impact fee. Fees shall be assessed and collected according to the standards of Chapter 8-9, “Capital Facility Impact Fee,” B.R.C. 1981, and the following rates:

Table 1: Residential Impact Fee Rates per Dwelling Unit

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Table 2: Additional Impact Fee Rate for Expansion of Existing and Replacement SingleUnit Dwellings

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Expansion Size ADDITIONAL IMPACT FEE RATE PER SQUARE FOOT OF (SF) EXPANSION OF EXISTING AND REPLACEMENT SINGLE-UNIT DWELLINGS (AS DEFINED IN SECTION 8-9-2, “DEFINITIONS,” B.R.C. 1981) Affordable Housing

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499 and below

500 and above

$11

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Table 32: Impact Fee Rates for Nonresidential Uses

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... Table 43: Impact Fee Rates for Public & Civic Uses and Affordable Commercial Uses ... Table 54: Impact Fee Rates for Other Nonresidential Uses ...

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Section 2. Chapter 8-9, “Capital Facility Impact Fee,” B.R.C. 1981, is amended to read as follows: 8-9-1. – Purpose and Legislative Intent.

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(a)

Purpose: The purpose of this chapter is to charge an impact fee to applicants for nonresidential and residential development in the City to fund capital improvements needed to address demand attributable to new development for police, fire, human services, general municipal facilities and parks and recreation. The purpose of this section is to also charge an impact fee to applicants for nonresidential development and to applicants for significant expansions to existing or replacement single-unit dwellings to fund affordable housing needed to address demand in the city attributable to new these types of developments for affordable housingin the city.

(b)

Legislative Intent: The city council recites the following legislative findings and statements of intent that were taken into consideration in the adoption of this chapter:

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... (6)

A study by Gruen Gruen + Associates titled “Affordable Housing Nexus Analysis for Significant Single-Family Home Demolitions, Replacements and Expansions in Boulder,” dated September 2025, provides the basis and methodology for the affordable housing impact fee on single-unit dwelling uses established in this Chapter 8-9 and Section 4-20-62, “Capital Facility Impact Fee,” B.R.C. 1981.

(76) The city council adopted a separate fee structure that is generally applicable to broad classes of property, including, without limitation, public and civic uses and affordable commercial uses that are at different rates than other nonresidential uses. The purpose for the differences between these rate classes is to provide incentives for and reduce barriers to the creation of public and civic uses. The city council finds that these uses are necessary to local services related to health, safety, cultural, governmental, or institutional uses as further described in this chapter. (87) The city council finds that the development impact fee study and this chapter define

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classifications that are generally applicable to broad classes of property; quantifies the reasonable impacts of proposed development on capital facilities; and establishes charges at a level no greater than necessary to defray such impacts directly related to proposed development.

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(98) The city council intends that the impact fees collected pursuant to this chapter are to be used to fund expenditures for capital facilities attributable to new development.

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8-9-2. – Definitions. For purposes of this chapter and the related fees in Chapter 4-20, “Fees,” B.R.C. 1981, the following words have the following meanings, unless the context clearly indicates otherwise: ... Expansion of existing and replacement single-unit dwelling means any floor area of a single-unit dwelling use that is added to an existing single-unit dwelling use or the floor area of a replacement single-unit dwelling that exceeds the total floor area of a previous single-unit dwelling use on the lot or parcel. ... Replacement single-unit dwelling means a single-unit dwelling that pursuant to the standards in Section 9-13-11, “Rebuilt Dwelling Units,” B.R.C. 1981, is not subject to the requirements of Chapter 9-13, “Inclusionary Housing,” B.R.C. 1981. ... Uninhabitable area means a room or portion thereof that is six feet or less in floor to ceiling height, or a room solely used to house mechanical or electrical equipment that serves the building, including, without limitation, heating, cooling, electrical, ventilation and filtration systemsthat has a six-foot or less floor to ceiling height, or a room housing mechanical or electrical equipment that serves the building, with less than three feet of clearance in any dimension between the equipment (except supply and return air ducts and wiring) and the adjacent wall.

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8-9-3. – General Regulatory Requirements.

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(c)

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Impact Fee on Development: The impact fee shall be charged on the following types of development: (1) Additional Floor Area: Any person who proposes to add floor area to any lot or parcel shall pay the capital facility impact fee in Section 4-20-62, “Capital Facility Impact Fee,” B.R.C. 1981, for: (A) The net increase in floor area for nonresidential development; and (B) The net increase in floor area per housing unit for residential development.

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(C) In calculating the impact fee, the city manager shall credit each developed property with an amount equal to the fee that would have been charged to the existing use at the time of the addition of floor area.

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(i)

(ii)

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If the credit is less than the amount of the impact fee for each capital facility classification, the applicant shall pay the difference. If the credit is greater than the amount of the impact fee for each capital facility classification, then the applicant will not be required to pay for each such capital facility classification.

... (4) Small Additions to Residential Uses. An accessory building of a residential use or an addition to an existing dwelling unit of two hundred square feet or less shall be exempt from paying the impact fee for parks and recreation, human services, municipal facilities, police, fire, and transportationan impact fee. This exemption shall only be used one time for each dwelling unit in existence on January 1, 2010. An accessory building of a residential use or an addition to an existing single unit dwelling of five hundred square feet or less shall be exempt from paying the affordable housing impact fee. This exemption shall only be used one time for each dwelling unit in existence on January 31, 2026. (5) Single-Unit Dwellings. Any floor area in a single-unit dwelling use that is 2,000 square feet in floor area or less shall be exempt from the impact fee for affordable housing. (6) Accessory Dwelling Units. Any floor area in a single-unit dwelling use that is part of an accessory dwelling unit constructed pursuant to the standards in Section 9-6-3, “Specific Use Standards – Residential Uses,” B.R.C. 1981, shall be exempt from the impact fee for affordable housing. (75) Additional Requirements for Public and Civic Uses. Any person that uses the fees for public or civic uses shall: ... (86) Additional Requirements for Affordable Commercial Uses. Any person that uses the fees for affordable commercial uses shall: ...

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Section 3. This Ordinance shall be effective as of January 31, 2026. The impact fee for

affordable housing applicable to expansions of existing and replacement single-unit dwellings

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described in this Ordinance shall be applied to all complete building permit applications that are

submitted to the city on or after January 31, 2026.

3 Section 4. This Ordinance is necessary to protect the public health, safety, and welfare of

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the residents of the city and covers matters of local concern.

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Section 5. The City Council deems it appropriate that this Ordinance be published by title only and orders that copies of this Ordinance be made available in the office of the city clerk for public inspection and acquisition.

9 INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY

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TITLE ONLY this 16th day of October 2025.

____________________________________ Aaron Brockett, Mayor

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Attest:

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__________________________________ City Clerk READ ON SECOND READING, PASSED AND ADOPTED this 6th day of November

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2025.

____________________________________ Aaron Brockett, Mayor

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Attest:

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__________________________________ City Clerk

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