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HomeMy WebLinkAboutPACKET Estes Park Board of Adjustment 2024-12-03BOARD OF ADJUSTMENT – TOWN OF ESTES PARK 170 MacGregor Avenue – Town Hall Board Room Tuesday, December 3, 2024 9:00 a.m. Estes Park, CO 80517 The meeting will be live-streamed on the Town’s YouTube channel and recorded and posted to YouTube and www.estes.org/videos within 48 hours. AGENDA INTRODUCTIONS AGENDA APPROVAL CONSENT AGENDA: 1.Board of Adjustment Minutes dated October 1, 2024 PUBLIC COMMENT: Items not on the agenda (please state your name and address). ACTION ITEMS: 1.Variance to Minimum Lot Size 610 Lone Pine Drive Planner Washam 2.Variance to Attainable/Workforce Housing Standards 650 Halbach Lane Director Careccia REPORTS AND DISCUSSION ITEMS: 1.Upcoming meeting items ADJOURN The Town of Estes Park will make reasonable accommodations for access to Town services, programs, and activities and special communication arrangements for persons with disabilities. Please call (970) 577-4777. TDD available. November 27, 2024 1 2 Town of Estes Park, Larimer County, Colorado, October 1, 2024 Minutes of a Regular meeting of the ESTES PARK BOARD OF ADJUSTMENT of the Town of Estes Park, Larimer County, Colorado. The meeting was held in the Town of Estes Park on October 1, 2024. Board: Chair Jeff Moreau, Vice-Chair Wayne Newsom, Board Member Joe Holtzman Attending: Chair Moreau, Vice-Chair Newsom, Member Holtzman, Senior Planner Paul Hornbeck, Planner Kara Washam, Community Development Director Steve Careccia, Town Board Liaison Bill Brown, Recording Secretary Karin Swanlund Absent: none Chair Moreau called the meeting to order at 9:08 a.m. APPROVAL OF AGENDA It was moved and seconded (Holtzman/Newsom) to approve the agenda. The motion passed 3-0. APPROVAL OF CONSENT AGENDA It was moved and seconded (Newsom/Holtzman) to approve the Consent Agenda. The motion passed 3-0. PUBLIC COMMENT: none ACTION ITEMS: 1.Variance to the Side Setback 1041 Pine Lane Planner Washam The Applicant requests a variance to allow a reduced side setback of three feet (3') along the east property line in lieu of the ten feet (10') side setback required in the R- 2 (Two-Family Residential) Zone District. The proposal is to construct an attached garage with a new access drive, and the existing driveway will be removed. The rock outcropping makes it impossible to build the garage within the setbacks. Staff recommends the Board of Adjustment approve the variance request, subject to the findings described in the report. DISCUSSION: The code allows two curb cuts for a driveway. Mike Daley, Architech, stated the applicants agree with staff conditions. It was moved and seconded (Moreau/Holtzman) to approve the variance request for a three-foot (3') side setback along the east property line for the subject property, with the conditions and findings outlined in the staff report. The motion passed 3-0. 2.Variance to the River Setback 375 Moraine Ave Senior Planner Hornbeck The Applicant desires to replace the existing bumper car building with a new amusement ride in the same general footprint, encroaching into the required 30' river setback. The Applicant requests a variance from Estes Park Development Code Sec. 7.6.E.1.a(2)(b) requiring a 30' setback from the annual high-water mark of the river. The amusement ride would be constructed as close as 5.5' from the high water mark of the Big Thompson River. The existing building is located approximately 4.7' from the river at its closest point. Staff recommended approval of the request with no conditions. DISCUSSION Lonnie Sheldon, Van Horn Engineering, was available to answer questions. dra f t 3 Board of Adjustment, October 1, 2024 – Page 2 It was moved and seconded (Moreau/Holtzman) to approve the variance with the findings as outlined in the staff report. The motion passed 3-0. REPORTS: Planning Staff will attend the State Planning Conference in Loveland later this week. With no further business, Chair Moreau adjourned the meeting at 9:27 a.m. Jeff Moreau, Chair Karin Swanlund, Recording Secretary dra f t 4 5 Community Development Memo To: Chair Jeff Moreau Estes Park Board of Adjustment Through: Steve Careccia, Community Development Director From: Kara Washam, Planner I Date: December 3, 2024 Application: Variance Request for Reduced Lot Size 610 Lone Pine Drive, Estes Park Amy Starspeaker, Owner/Applicant Recommendation: Staff recommends the Board of Adjustment approve the variance request, subject to the findings described in the report. Land Use: 2022 Estes Forward Comprehensive Plan Designation: (Future Land Use): Neighborhood Village Zoning District: Two-Family Residential (R-2) Site Area: 0.42 Acres (+/- 18,353 SF) ☒ PUBLIC HEARING ☐ ORDINANCE ☐ LAND USE ☐ CONTRACT/AGREEMENT ☐ RESOLUTION ☒ OTHER QUASI-JUDICIAL ☒ YES ☐ NO Objective: The Applicant requests approval of a variance to the minimum lot size of 27,000 square feet required for duplex developments on one lot in the R-2 (Two-Family Residential) Zone District under Section 4.3.C.4. (Table 4-2, Note 6) of the Estes Park Development Code (EPDC). Background: The subject property, Lot 1A, was created in 1998 with the Amended Plat of Lot 1 of Lone Pine Acres Addition (Attachment 9). At the time, the lot was zoned RM (Multi- Family), which required a minimum lot size of 18,000 square feet or 0.41 acres. The plat also approved zero lot line development. The lot was rezoned to R-2 (Two-Family Residential) in 2000 with the adoption of the current Estes Park Development Code (EPDC). The lot is 0.42 acres and is conforming to dimensional standards and use for single-family residential. Two-family dwelling units is a permitted use. However, this 6 2 requires a minimum lot size of 27,000 square feet. At 18,353 square feet, the property is approximately 68% conforming to the minimum lot size required for a two-family unit. The property contains one single-family attached residence constructed in 1999. The residence appears as a duplex in form but since it is on a separate lot, it is considered an “attached single-family home” with a Shared Party Wall Agreement with the neighbor at 1725 Raven Avenue. To qualify as a duplex, or two-family residential dwelling unit, the attached dwellings must be located on a single lot. The Applicant/Owner purchased the property in 2023 to use as a full-time primary residence. There has been a recent, unexpected change in the Applicant’s household, requiring her to consider options to supplement her income. The upper level is of sufficient space for the Applicant and she wishes to use the lower level as a long-term rental unit. Existing Conditions Variance Description The Applicant requests approval of a variance to the minimum lot size of 27,000 square feet required for duplex developments on one lot in the R-2 (Two-Family Residential) Zone District. The Applicant intends to finish the walk-out lower level of the existing residence as a stacked duplex (Attachment 3) to use as a long-term rental unit. The proposed development will require no additional build-out of the residence but an additional driveway is proposed (Attachment 4). 7 3 Proposed Site Plan Proposed Lower-Level Unit 8 4 Location and Context: The subject property is located at 610 Lone Pine Drive, approximately 600’ northeast of the intersection of Big Thompson Avenue and Lone Pine Drive. The property is zoned R-2 (Two-Family Residential) and is surrounded by residential properties zoned R-2, RM (Multi-Family), and E (Estate). The parcel west is zoned CO (Commercial Outlying) and is currently an auto repair shop. Southeast of the subject property is the recently platted Raven Subdivision, currently under development by Habitat for Humanity. Vicinity Map Zoning and Land Use Summary Table Comprehensive Plan (2022) Zone Uses Subject Site Neighborhood Village R-2 (Two-Family Residential) Residential North Suburban Estate E (Estate) Residential South Mixed Residential Neighborhood RM (Multi-Family Residential) Residential East Neighborhood Village R-2 (Two-Family Residential) Residential West Mixed-Use Centers and Corridors CO (Commercial Outlying) Auto Body Shop 9 5 Zoning Map Project Analysis Review Criteria: The Board of Adjustment (BOA) is the decision-making body for variance requests. In accordance with EPDC Section 3.6.C., Variances, Standards for Review, applications for variances shall demonstrate compliance with the applicable standards and criteria contained therein. The Standards with staff findings for each are as follows: 1. Special circumstances or conditions exist (e.g., exceptional topographic conditions, narrowness, shallowness or the shape of the property) that are not common to other areas or buildings similarly situated. Practical difficulty may result from strict compliance with this Code's standards, provided that the requested variance will not have the effect of nullifying or impairing the intent and purposes of either the specific standards, this Code or the Comprehensive Plan. Staff Finding: Special circumstances exist. The property is zoned to permit 2- family residential use but the lot is only 68% conforming to lot size for that use. The 27,000 square feet minimum lot size requirement for two dwelling units went into effect in October 2001 (Ordinance 18-01), three years after the lot was created and one year after it was rezoned to R-2. This ordinance has limited the highest and best use of the property. 10 6 2. In determining "practical difficulty," the BOA shall consider the following factors: a. Whether there can be any beneficial use of the property without the variance; Staff Finding: There can be beneficial use of the property without the variance and an additional dwelling unit. However, the applicant wishes to add the lower- level dwelling unit to increase the much-needed rental stock for the Estes Valley and to supplement her income. b. Whether the variance is substantial; Staff Finding: The variance request for a reduced minimum lot size for two dwelling units is moderately substantial. However, since the proposed second dwelling unit will be utilized in the lower level of the existing home, the impact to the existing lot is limited. c. Whether the essential character of the neighborhood would be substantially altered or whether adjoining properties would suffer a substantial detriment as a result of the variance; Staff Finding: The essential character of the neighborhood would not be substantially altered with the addition of the proposed second dwelling unit. The neighborhood exhibits a range of density, including R-2 (Two-Family Residential) and RM (Multi-Family Residential). d. Whether the variance would adversely affect the delivery of public services such as water and sewer. Staff Finding: The proposed additional dwelling unit will not adversely affect the delivery of public services. The proposal was referred out to applicable agencies and no concerns were received. e. Whether the Applicant purchased the property with knowledge of the requirement; Staff Finding: The Applicant purchased the property in September 2023 with the knowledge that the property was zoned R-2 (Two-Family Residential) but was not aware that the lot did not meet the minimum lot size requirement for two dwelling units. f. Whether the Applicant's predicament can be mitigated through some method other than a variance. Staff Finding: Approval of the requested variance for a reduced minimum lot size is the only method to mitigate the Applicant’s predicament. The Applicant 11 7 considered finishing the basement as an Accessory Dwelling Unit (ADU). However, ADUs are not permitted in the R-2 (Two-Family Residential) zoning district per Table 5-1 of the EPDC. 3. No variance shall be granted if the submitted conditions or circumstances affecting the Applicant's property are of so general or recurrent a nature as to make reasonably practicable the formulation of a general regulation for such conditions or situations. Staff Finding: Not applicable. 4. No variance shall be granted reducing the size of lots contained in an existing or proposed subdivision if it will result in an increase in the number of lots beyond the number otherwise permitted for the total subdivision, pursuant to the applicable zone district regulations. Staff Finding: Not applicable. Approval of the variance request will not result in an additional lot being created. 5. If authorized, a variance shall represent the least deviation from the regulations that will afford relief. Staff Finding: The proposed variance would be the least deviation from the Development Code. 6. Under no circumstances shall the BOA grant a variance to allow a use not permitted or a use expressly or by implication prohibited under the terms of this Code for the zoning district containing the property for which the variance is sought. Staff Finding: The proposed two-family dwelling use is permitted by right in the R-2 (Two-Family Residential) zoning district per Table 4-1 of the EPDC. 7. In granting such variances, the BOA may require such conditions as will, in its independent judgment, secure substantially the objectives of the standard so varied or modified. Staff Finding: Staff has no recommendations for conditions of approval. Review Agency Comments The application was referred to all applicable review agencies for comment. Public Works supports the variance request but encourages a shared driveway for the proposed second dwelling unit (Attachment 5). Building Division requires Fire Rated separation per R302 of the 2021 International Residential Code (IRC) (Attachment 6) and will complete a formal review if a building permit is submitted. Estes Valley Fire Protection District has no comments for the lot size variance but states that the proposed second dwelling unit will need to be sprinklered (Attachment 7). 12 8 Public Notice Staff provided public notice of the application in accordance with EPDC noticing requirements. As of the time of writing this report, no comments were received. ● Written notice mailed to adjacent property owners on November 13, 2024. ● Legal notice published in the Estes Park Trail-Gazette on November 15, 2024. ● Application posted on the Town's "Current Applications" website. Advantages This variance would allow the Applicant to finish out her basement into an additional dwelling unit, which in turn would increase the housing stock of the Estes Valley. Disadvantages There are no known disadvantages of approval of the variance request to reduce the minimum lot size of 27,000 square feet required for duplex developments on one lot in the R-2 (Two-Family Residential) Zone District. Action Recommended Staff recommends approval of the proposed variance to the minimum lot size requirement, as described in this staff report, with the proposed additional dwelling unit consistent with the Site Plan (Attachment 4) and Lower-Level Proposed Floor Plan (Attachment 3). Finance/Resource Impact N/A Level of Public Interest Little or none. Sample Motions I move to approve the requested variance to the minimum lot size of 27,000 square feet required for duplex developments on one lot in the R-2 (Two-Family Residential) Zone District for the subject property addressed as 610 Lone Pine Drive in the Town of Estes Park, with findings as outlined in the staff report. I move to approve the requested variance to the minimum lot size of 27,000 square feet required for duplex developments on one lot in the R-2 (Two-Family Residential) Zone District for the subject property addressed as 610 Lone Pine Drive in the Town of Estes Park, with conditions [state conditions] and with findings as outlined in the staff report. I move to deny the requested variance with the following findings [state reason/findings]. I move that the Board of Adjustment continue the variance to the next regularly scheduled meeting, finding that [state reasons for continuance]. 13 9 Attachments 1. Application 2. Statement of Intent 3. Lower-Level Proposed Floor Plan 4. Site Plan 5. Public Works Referral Comments 6. Building Division Referral Comments 7. Estes Valley Fire Protection District 8. Improvement Location Certificate (ILC) 9. Amended Plat of Lone Pine Acres 14 15 16 17 18 19 20 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG Community Development Department Planning Division 970-577-3721 planning@estes.org PROJECT ROUTING REFERRAL FORM AGENCY Public Works REVIEWER Jennifer Waters SIGNATURE DATE 10/24/2024 ☐ No Comments ☐ Resubmittal Required ☐ Comments Provided via Comment Letter (attached) SUMMARY OF COMMENTS: 610 Lone pine Dr – Lot size variance application. On behalf of Public Works, the finding is that this variance request is reasonable and there is no case to make against its approval. The proposed new driveway location meets geometry and intersection proximity standards in EPDC, Appendix D. III. The only barrier may be the utility pole guy wire adjacent to the proposed driveway. A shared driveway is encouraged as an alternative. Final reviews for ROW and site work may occur as part of the building permit process. 21 Kara Washam <kwasham@estes.org> 610 Lone Pine Bldg. Dept Comments 1 message Terry Hansen <thansen@safebuilt.com>Thu, Nov 7, 2024 at 1:24 PM To: Kara Washam <kwasham@estes.org> Cc: Dan Wester <DWester@safebuilt.com> It is my understanding that the lower level of this residence is already finished. I am listing the International Residential Code (IRC) Sections to separate the two Dwelling Units. Chapter 2 Definitions Dwelling Unit: A single unit providing complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. Separation R302 Fire Resistant Construction This will be required to fully separate the two units, including the penetrations of the Fire Rated Assemblies. All structural elements that support the upper unit will require Fire Rating as well. The design and construction or alteration of the lower must be compliant with the IRC as well. The Link below may be used to gain free access to the IRC. Reference Chapter 3 of the IRC for requirements for: R303 Light, Ventilation and Heating R304 Minimum Room Areas R305 Ceiling Height R306 Sanitation R307 Toilet Bath and Shower Spaces R308 Glazing R310 Emergency Escape and Rescue Openings R311 Means of Egress, for lower unit and upper unit Means of Egress must remain IRC compliant. R313 Automatic Fire Sprinkler Systems. This entire structure will be required to have Automatic Fire Sprinklers. Consult the Estes Valley Fire Protection District for specifics. They will set the requirements, issue the Permit for it and do all inspections. R314 Smoke Alarms, both upper and lower unit R315 Carbon Monoxide Alarms, both upper and lower unit 22 Respectfully, Terry Hansen Deputy Building Official SAFEbuilt LLC Direct 303.450.8747 Permit help 303.450.8745 Inspection Request Line 303.450.8748 Free online access to the I-Codes https://codes.iccsafe.org/public/collections/I-Codes 23 170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG Community Development Department Planning Division 970-577-3721 planning@estes.org PROJECT ROUTING REFERRAL FORM AGENCY Estes Valley Fire Protection District REVIEWER Stacey Sutherland SIGNATURE DATE 10/17/2024 ☐ No Comments ☐ Resubmittal Required ☐ Comments Provided via Comment Letter (attached) SUMMARY OF COMMENTS: We do not have any comments on the Lot Size Variance. I do have a comment about the new residence being sprinklered. IFC 903.2.8 Group R- an automatic sprinkler system installed in accordance with section 903.3 shall be provided throughout all buildings with a Group R fire area. With the installation of a fire sprinkler system, I believe that also reduces the horizontal separation from 1- hour to ½- hour. 24 25 26 27 Community Development Memo To: Chair Jeff Moreau Estes Park Board of Adjustment From: Steve Careccia, Community Development Director Date: December 3, 2024 Application: Variance Request for Attainable/Workforce Housing Deed Restriction 650 Halbach Lane / Lot 5 Mangelsen Subdivision Maurice Scraggs, Owner/Applicant Recommendation: Staff recommends the Board of Adjustment approve the variance request, subject to the findings described in the report. Future Land Use Designation: Neighborhood Village Zoning District: R-1 (Residential) Site Area: 5,000 SF ☒ PUBLIC HEARING ☐ ORDINANCE ☐ LAND USE ☐ CONTRACT/AGREEMENT ☐ RESOLUTION ☒ OTHER QUASI-JUDICIAL ☒ YES ☐ NO Objective: The applicant requests approval of a variance to amend specific provisions of Section 11.4 (Attainable/Workforce Housing Density Bonus) of the Estes Park Development Code (EPDC) applicable to the R-1 (Residential) zoning district pursuant to Section 4.3.D.4-5 of the EPDC. Background: The subject property was rezoned from R-2 (Two-Family Residential) to R-1 (Residential) in 2003. It is Lot 5 of the Mangelsen subdivision. The final plat for the subdivision was recorded in 2004. Habitat for Humanity (Habitat) purchased the property in 2004 with the intent of providing attainable housing. However, Habitat decided not to build a home on the property. The applicant purchased the undeveloped property in 2015 with the intent of building a market-rate single-family home. 28 2 The zoning, land use, and future land use designations of surrounding properties are summarized in the table below. Zoning and Land Use Summary Table Future Land Use Designation (Comp Plan) Zone Uses Subject Site Neighborhood Village R-1 (Residential) Single Family Residence North Mixed Residential Neighborhood RM (Multi-Family) Multi-Family Residences South Neighborhood Village R-1 (Residential) Single Family Residence East Neighborhood Village R-1 (Residential) Single Family Residence West Neighborhood Village R-1 (Residential) Single Family Residence Vicinity Map SUBJECT PROPERTY 29 3 Zoning Map Section 4.3 (Residential Zoning Districts) of the EPDC requires all properties within the R-1 (Residential) zoning district to be subject to a deed restriction as established within Section 11.4 (Attainable/Workforce Housing Density Bonus) of the EPDC (section attached). The deed restriction shall be a formalized agreement between the Town and property owner. Section 11.4 requires housing units within the R-1 (Residential) zoning district to be attainable to people living and/or working in the Estes Valley. It does so by requiring a deed restriction to assure the availability of the unit for sale or rent to people meeting the income guidelines established within Section 11.4. Both the rezoning and subdivision approvals applicable to the subject property require it to be deed restricted in accordance with Section 11.4. Given the above-stated EPDC regulations, the 650 Halbach Lane property is required to have a deed restriction ensuring its attainability for qualified renters/buyers. However, a deed restriction has yet to be executed for the property. Variance Description 30 4 The applicant is requesting variances to the above-noted attainable and workforce housing provisions applicable to properties located within the R-1 (Residential) zoning district. As noted in the attached Statement of Intent, the applicant states that he was unaware of these requirements when he purchased the property and started construction of a single-family home. While the applicant is supportive of the overall deed restriction requirement and providing attainable housing, there are some provisions that pose a hardship given his current circumstances and conditions. The first requested variance would increase the maximum housing costs to income requirement from 40% to 50%. The existing requirement states housing costs (typically consisting of rent/mortgage & utility expenses) should not exceed 40% of that household’s income. The applicant has indicated that this provision is an undue burden on his ability to sell the home given that housing costs have significantly increased since the Town’s attainable housing requirements were initially adopted. But increasing the maximum allowance to 50% would open the sale of the home to a larger pool of qualified buyers based on research provided to the applicant by local lenders. The second requested variance would reduce the term of the deed restriction from 50 years to 20 years. The term was initially 20 years when the Mangelsen subdivision was approved but was increased to 50 years in 2017. The applicant has indicated that a 50- year term would be an undue burden as the homes in this subdivision were only restricted for 20 years, with those restrictions ending next year. By imposing a 50-year term on this home, it would become an outlier within this subdivision and be inconsistent with the previous 20-year terms placed on the other homes. As part of this application for variance, the applicant is also requesting an appeal of staff interpretations regarding Section 11.4 and resultant language used within the Town’s standard deed restriction. These appeals include: 1. Rent or Sale Section 11.4 references both renter- and owner-occupied units as opportunities for attainable housing. However, the Town’s standard deed restriction only allows rental of the home in specific hardship situations, such as the onset of an illness or disability. The applicant would like the option to rent the home without having to be in such a hardship situation. The appeal of this staff interpretation would remove the rental restriction and owner occupancy requirement from the subject property’s deed restriction. 2. Household Income Classification To qualify to live in the home as proposed with the standard deed restriction, a household could earn no more than 150% of the Larimer County Area Median Income (AMI). As an example, a household with two individuals could earn no more than $132,600. The applicant would like to ensure that the income determination is based on the annual income of those intending to live in the home, with the means that the household uses to qualify for a mortgage kept separate and not a part of the income determination. The appeal of this staff interpretation would add clarifying language to the subject property’s deed 31 5 restriction defining household income as the annual income of those intending to live in the home. 3. Maximum Sales Price The standard deed restriction language directs the Town (or assignee) to establish the maximum sales price for the home. The applicant states this requirement involves complex calculations and estimations, with each potential purchaser having a different set of financial circumstances. He also states the language is redundant, as the home must be made affordable to those earning no more than 150% of the Larimer County AMI. So effectively, there would still be a maximum sales price the applicant could request, as he would need to work with the Town to ensure the home remained affordable in accordance with the provisions of Section 11.4. However, the difference would be the applicant would have more participation in the determination of the sales price. The appeal of this staff interpretation would add clarifying language to the subject property’s deed restriction stating that the Town (or assignee) and property owner will collaborate on determining the home’s maximum sales price. Project Analysis Review Criteria: The Board of Adjustment (BOA) is the decision-making body for variance requests. In accordance with EPDC Section 3.6.C., Variances, Standards for Review, applications for variances shall demonstrate compliance with the applicable standards and criteria contained therein. The standards with staff findings for each are as follows: 1. Special circumstances or conditions exist (e.g., exceptional topographic conditions, narrowness, shallowness or the shape of the property) that are not common to other areas or buildings similarly situated. Practical difficulty may result from strict compliance with this Code's standards, provided that the requested variance will not have the effect of nullifying or impairing the intent and purposes of either the specific standards, this Code or the Comprehensive Plan. Staff Finding: The applicant lives next door to the subject property. He states he purchased it in 2015, using all available savings he had, to build a market-rate home for sale. If he had initially known of the deed restriction, he states he would have built a more affordable home in terms of size, configuration, and furnishings. But, unaware of the deed restriction, he built a larger market-rate home at two-stories and entered into a contract with a potential buyer. But, while requesting inspections for a Certificate of Occupancy, staff informed him that a deed restriction was required. The applicant states this information caught him by surprise and caused the termination of the sales contract. It further caused a financial situation given there was now no income to support the mortgage or pay back the construction loans. Even so, he maintains that the deed restriction will be executed in conformance with Town requirements, thus supporting the Development Code and Comprehensive Plan. The request for these variances is 32 6 only to offer relief to certain standards currently posing practical difficulty with the sale and/or rental of the home. In determining "practical difficulty," the BOA shall consider the following factors: a. Whether there can be any beneficial use of the property without the variance; Staff Finding: A deed restriction is required for this home, which the applicant states he supports and will execute. However, he is finding it difficult to either sell or rent the home to a qualified household under the strict terms of the standard deed restriction language. As such, beneficial use of the property as attainable and/or workforce housing has been negatively affected. b. Whether the variance is substantial; Staff Finding: The variance is not substantial and maintains the intent of the attainable/workforce housing provisions set forth in Section 11.4 of the EPDC. c. Whether the essential character of the neighborhood would be substantially altered or whether adjoining properties would suffer a substantial detriment as a result of the variance; Staff Finding: There would be no impact on the neighborhood or adjoining properties. The surrounding area consists of other single-family or multi-family residences, some with deed restrictions. Further, a single-family home with a deed restriction is the intended use within the R-1 zoning district. d. Whether the variance would adversely affect the delivery of public services such as water and sewer. Staff Finding: The variance would not adversely affect the delivery of public services. The application was provided to the Estes Park Housing Authority for review. Their comments are attached. e. Whether the Applicant purchased the property with knowledge of the requirement; Staff Finding: The applicant resides at 652 Halbach Lane. He bought the adjacent property at 650 Halbach Lane in 2015 with the intent of building a market-rate home and selling it. He further states that it was purchased without knowledge of the deed restriction requirement. As noted in the Statement of Intent, an attainable/workforce deed restriction is typically placed on a home at time of rezoning and/or subdivision. The property owner, usually an entity such as the Housing Authority or Habitat for Humanity, works with the Town on the deed restriction language and processing. As such, 33 7 when the home is eventually purchased or rented by a qualified household, the deed restriction is already in place. However, in this instance, the requirement for the deed restriction was established with the rezoning, but not executed. Nor was the deed restriction executed with the subsequent approval of the preliminary and final subdivision plats. Rather, the deed restriction was left to execution when a home was built on the lot, which introduced a significant level of uncertainty into the process and placed the responsibility of the deed’s execution on a private owner, who likely would not be well versed in the matter. f. Whether the Applicant's predicament can be mitigated through some method other than a variance. Staff Finding: The applicant’s predicament is best mitigated with this variance. It maintains the EPDC’s intent to provide attainable/workforce housing to qualified individuals. 2. No variance shall be granted if the submitted conditions or circumstances affecting the Applicant's property are of so general or recurrent a nature as to make reasonably practicable the formulation of a general regulation for such conditions or situations. Staff Finding: This is a unique situation that is not of a general nature. The requirement for deed restriction is typically addressed by Habitat for Humanity or the Housing Authority, who are both well versed in the workings of the restriction. However, in this instance, the requirement fell onto a private owner, who was not aware nor well versed in deed restrictions, at a time when the home was already constructed and contracted for sale. 3. No variance shall be granted reducing the size of lots contained in an existing or proposed subdivision if it will result in an increase in the number of lots beyond the number otherwise permitted for the total subdivision, pursuant to the applicable zone district regulations. Staff Finding: This variance does not affect lot size nor the number of lots in this subdivision. 4. If authorized, a variance shall represent the least deviation from the regulations that will afford relief. Staff Finding: The variance represents the least deviation from the regulations that will afford relief. The overall requirement for a deed restriction will still apply to this lot. 5. Under no circumstances shall the BOA grant a variance to allow a use not permitted or a use expressly or by implication prohibited under the terms of this Code for the zoning district containing the property for which the variance is sought. 34 8 Staff Finding: This variance does not affect the use of the lot as it will remain used as a single-family home. 6. In granting such variances, the BOA may require such conditions as will, in its independent judgment, secure substantially the objectives of the standard so varied or modified. Staff Finding: Staff does not recommend any conditions. Review Agency Comments There are no review agency comments. Public Notice Staff provided public notice of the application in accordance with EPDC noticing requirements. As of the time of writing this report, staff has received one general inquiry into this variance request. No opposition to the variance has been received. ● Written notice mailed to adjacent property owners on November 13, 2024. ● Legal notice published in the Estes Park Trail-Gazette on November 15, 2024. ● Application posted on the Town's "Current Applications" website. ● Sign posted on property by applicant. Action Recommended Staff recommends approval of the proposed variance and associated appeals. Finance/Resource Impact N/A Level of Public Interest Public interest has been light. To date, there has been no public opposition to this variance request. Sample Motions I move to approve the variance and associated appeals in accordance with the findings outlined in the staff report. I move to deny the variance with the following findings [state reasons/findings]. I move that the Board of Adjustment continue the variance to the next regularly scheduled meeting, finding that [state reasons for continuance]. Attachments 1. Application 2. Statement of Intent 3. Development Code Section 11.4 (Attainable/Workforce Housing Density Bonus) 4. Estes Park Housing Authority Letter dated November 26, 2024 35 36 37 38 39 40 41 Created: 2024-09-16 09:26:53 [EST] (Supp. No. 22) Page 1 of 2 § 11.4 ATTAINABLE/WORKFORCE HOUSING DENSITY BONUS A. Purpose. This Section is intended to create an incentive to provide a variety of attainable and workforce housing for persons living and/or working in the Estes Valley. (Ord. 2-02 §9; Ord. 28-16, § 1; Ord. 30-17, § 1(Exh.)) B. Eligibility. All residential subdivisions and developments in the RM (Multi-Family Residential) zoning district are eligible for the attainable or workforce housing density bonus set forth in this Section. This Section's density bonus for attainable or workforce housing shall not be available and shall not be applied in any zoning district except the RM (Multi-Family Residential) zoning district. (Ord. 2-02 §9; Ord. 28-16, § 1; Ord. 30-17, § 1(Exh.)) C. "Attainable" and "Workforce" Defined. For purposes of this Code and Chapter, "attainable housing units" and "workforce housing units" shall mean the following: 1. Renter-Occupied Attainable Housing Units. a. Housing units that are attainable to households earning one hundred fifty percent (150%) of the Larimer County Area Median Income or below, adjusted for household size. b. To qualify as attainable units, housing costs (i.e., rent and utility expenses) must not exceed thirty percent (30%) of the maximum income for an imputed household size based on one hundred fifty percent (150%) of the Larimer County Area Median Income. The imputed household size is equal to one and one-half (1.5) times the number of bedrooms in the unit. For example, rent on a two- bedroom unit would be equal to thirty percent (30%) of the monthly income limit of a three- person family; for a three-bedroom unit the rent should not exceed thirty percent (30%) of the monthly income of a four-and-one-half-person family—the midpoint of the range of a four- and five-person family. c. If the property owner does not pay all utility expenses, then a utility allowance, computed by the Estes Park Housing Authority, must be subtracted from the housing cost to determine the maximum rent. (Ord. 2-02 #9) 2. Owner-Occupied Attainable Housing Units. a. Housing units that are attainable to households earning one hundred fifty percent (150%) of the Larimer County Area Median Income or below, adjusted for household size. b. To qualify as attainable units, housing costs must not exceed forty percent (40%) of the one- hundred-fifty-percent Larimer County Area Median Income, adjusted for household size. (Ord. 2-02 #9) 3. Larimer County Area Median Income, Defined. The Larimer County Area Median Income is the current applicable area median income for Larimer County published by the U.S. Department of Housing and Urban Development. (Ord. 2-02 §9) 4. Workforce Housing. Housing units shall be eligible for the Maximum Permitted Density Bonus (Sec. 11.4.D) if at least one (1) resident in each housing unit annually submits an affidavit, including a copy of 42 Created: 2024-09-16 09:26:53 [EST] (Supp. No. 22) Page 2 of 2 a W-2 form, to the Town certifying that the resident is employed within the Estes Park School District R-3 Boundary Map. (Ord. 2-02 §9; Ord. 28-16, § 1; Ord. 30-17, § 1(Exh.)) D. Maximum Permitted Density Bonus. Subject to the standards and review criteria set forth in this Section and Chapter, attainable or workforce housing units are eligible for a density bonus of up to two (2) times (two hundred percent [200%]) of the base Max. Net Density standard set forth in the Estes Valley Development Code. (Ord. 28-16, § 1; Ord. 30-17, § 1(Exh.)) E. Development and Design Standards. 1. [Reserved.] 2. Public Sewers and Water Required. All developments containing attainable or workforce housing units approved under provisions of this Section shall be served by public central sewer service and public water service. 3. Short-Term Rentals Prohibited. Attainable or workforce housing units approved under provisions of this Section shall not be rented, leased or furnished for tenancies of less than thirty (30) days (see §5.1.B). (Ord. 02-10 §1) 4. Deed Restriction or Restrictive Covenant and Agreement Required. Attainable or workforce housing units developed pursuant to this Section shall use one of the two mechanisms below to assure the availability of the units for sale or rent to persons meeting the income or workforce guidelines and definition set forth in §11.4.C above. The Community Development Director shall determine which one of the two mechanisms below is applicable: a. Deed Restriction. Attainable or workforce housing units shall be deed restricted. The deed restriction shall be for a time period of no less than fifty (50) years. The deed restriction used to restrict the units shall be approved by the Town or County Attorney. b. Restrictive Covenant and Agreement. A Restrictive Covenant and Agreement shall be entered into between the property owner and the Town or County. The Restrictive Covenant and Agreement shall be for a time period of no less than fifty (50) years, shall run with the land, and shall be binding on the owner and all subsequent owners and successors. The Restrictive Covenant and Agreement shall be in a form acceptable to the Town or County Attorney. Upon approval by the Town or County Attorney, the Restrictive Covenant and Agreement shall be subject to review by the decision-making body with the associated preliminary subdivision, or, if no subdivision approval is required, with the associated development plan. The Restrictive Covenant and Agreement shall be properly executed and recorded. (Ord. 28-16, § 1; Ord. 30-17, § 1(Exh.); Ord. 03-18, § 1(Exh.)) (Ord. 13-99 §D.4, 11/3/99; Ord. 2-02 #9, 2/12/02; Ord. 8-05 #1, 6/14/05; Ord. 2-10 #1, 1/26/10; Ord. 28-16, § 1(Exh. A), 12/13/16; Ord. 30-17, § 1(Exh.), 11/14/17; Ord. 03-18, § 1(Exh.), 3/13/18) 43 Scott Moulton Estes Park Housing Authority 363 E. Elkhorn Ave, Suite 101 Estes Park, CO 80517 November 26, 2024 Town of Estes Park PO Box 1200 Estes Park, CO 80517 RE: 650 Halbach Lane - Deed Restriction To the Community Development Department: The Estes Park Housing Authority (EPHA) has been engaged in matters related to 650 Halbach Lane to clarify and strengthen deed restriction language in accordance with the Town of Estes Park Development Code. This letter provides an overview of EPHA’s involvement, position, and recommendations based on our experience in monitoring compliance with deed restrictions in the Estes Valley—both those created by EPHA and those established by the Town of Estes Park independently. EPHA currently has an active memorandum of understanding with the Town of Estes Park regarding the monitoring of deed restrictions in the Estes Valley. While EPHA may identify potential non-compliance issues, enforcement remains the Town's responsibility, except in cases where the deed restrictions were created and executed by EPHA. Background and Position on 650 Halbach Lane 1. Basic Research During our involvement, prompted by Mr. Scraggs and his real estate agent, EPHA conducted due diligence and research regarding this property. We believe the 2015 purchase of this lot was properly documented as including a requirement for a deed restriction. However, EPHA has not independently reviewed the associated sales documents. 2. Duty to Notify EPHA recommends that the Town implement a process to notify property owners of potential deed restrictions early in the development process. In this case, to the best of our knowledge, Mr. Scraggs was allowed to complete the construction of a single-family residence in compliance with permitting guidelines, only to be informed of the deed restriction at the certificate of occupancy stage. This notification should occur earlier to avoid similar issues in the future. Our opinion is based on a desire to protect outstanding deed restrictions which the Town has previously required but may not have been recorded. 44 3. Ability to Rent EPHA believes that deed restrictions for attainable and workforce housing should explicitly allow units to be rented to qualified households as determined by EPHA. To our knowledge, this is standard practice for all deed restrictions in the Estes Valley. EPHA has also met with Mr. Scraggs to discuss rental options and the associated process for this property. 4. Debt-to-Income Ratio (DTI) EPHA strongly opposes raising the DTI ratio from 40% to 50%, as proposed by Mr. Scraggs. The current standard is consistent with prudent mortgage lending practices. Increasing the ratio to 50% would place borrowers at a higher risk of default. While we could support an increase to the market standard of 43%, we still consider this provision too lenient. 5. Duration of Deed Restrictions EPHA advocates for all workforce or attainable housing deed restrictions in the Estes Valley to have a minimum duration of 50+ years, as opposed to the development code's 20-year minimum. Preserving restricted housing for the long term aligns with the best interests of the community and promotes sustainable housing solutions. 6. Maximum Sales Price Provisions EPHA supports the applicant’s request to remove direct maximum sales price provisions from the deed restriction. Establishing a maximum sales price without an associated appreciation clause is impractical and creates unnecessary challenges for buyers and sellers. Sellers should retain the flexibility to price their homes based on market conditions and the expectations of qualified buyers. 7. Household Income and Mortgage Qualification EPHA strongly opposes any changes to the definition of a "qualified household" as outlined in the deed restriction. All household income must be considered when determining eligibility. Allowing income from individuals not listed on the deed of trust would violate the intent of income-restricted housing programs. EPHA remains firm that these income qualifications must be adhered to without exception. Sincerely, Scott Moulton Executive Director Estes Park Housing Authority 45