Affordable Housing Incentives
In 2015, the Longmont community began a two-year planning effort, coming together to document hopes for the City’s future and to outline the path to reach those goals. Envision Longmont, a multimodal and comprehensive plan, provides strategic direction and guidance for Longmont over the next 10 – 20 years. Providing housing for all is an interwoven theme throughout the Envision Longmont comprehensive plan. The plan includes the goal of providing a range of incentives for development that includes affordable housing units. This page includes both the requirements for affordable housing and the incentives that have been created to implement the housing goals of Envision Longmont. For a complete list of current code requirements, see the City’s Municode website.
Minimum Affordable Housing Requirements
For-Sale Projects: 12% of all residential units in new development should be affordable to low- and moderate-income residents (households at or below 80% of the Area Median Income (AMI) by selling for a price determined by the City, updated annually).
Rental Projects: 12% of the rental units must be permanently affordable to households at or below 50% of the Area Median Income (AMI). Depending on the project’s agreement with the City, unit rents must follow one of two rental standards: CHFA or HOME. Please consult your agreement with the City to determine which rent standard your project uses.
Ways Developers Can Satisfy the Requirements
- On-site: Provide required affordable housing within the development
- Fee-in-Lieu: Pay square-footage fees to the City’s affordable housing fund
- Off-site: Build the required affordable housing in another location
- Land Donation: Donate land to the City or a non-profit housing developer
- Voluntary Alternative Agreement: A developer and/or builder can propose to City Council an alternative way of meeting the requirements that are not in the Ordinance
- Redemption of Credit: A developer and/or builder may acquire Surplus Unit credits from another developer/builder that built more than the minimum required affordable units and was issued credits by the City.
- Middle-Tier or Attainable Housing: Provide housing units that are affordable for households earning 80-120% AMI to reduce the required affordable units. A Voluntary Alternative Agreement is required.
Some options require approval of City Council. More information regarding affordability requirements may be found on the City’s Inclusionary Housing page.
Available Incentives for Developers
Land Development Incentives
- Five Mixed-Use Zones: Residential buildings are permitted as primary or secondary uses in the designated mixed-use zones (MU-N, MU-C, MU-D, MU-E, and MU-R). There is no density limit for residential developments in the five mixed-use zones.
- Density Bonus: In zoning districts with density limits, projects providing affordable housing on-site can get up to a 25% increase in density.
- Diverse Housing Types: There are expanded options for housing types in the residential mixed neighborhood (R-MN) and residential multi-family (R-MF) zoning districts.
- Building Height: Increased building height is available for buildings with a vertical mix of uses, developments providing affordable housing, or developments near transit.
- Reduced Development Standards: Various reductions in development standards such as setbacks, landscaping, pocket parks, and buffer allowances, can be applied to developments that include at least 12% on-site affordable units.
- Parking: In 2024, Longmont became the first City in Colorado to eliminate minimum parking requirements for land uses throughout the entire City.
- Reduced Lot Size and Lot Width: A reduction to lot size and lot width minimums for projects providing affordable housing on-site in the R-SF, R-MN and R-MF zoning districts.
- Bypass Preliminary Plat Review Process: Subdivisions that create 4 or more lots can bypass the preliminary plat review and public hearing process if the development includes at least 12% on-site affordable housing units.
Financial Incentives
Approved projects that provide more than the minimum requirement are eligible for additional incentives, subject to available funding, including:
Fee Waivers: A percentage of certain development fees may be waived for qualifying projects. Reductions can range from 50% to 100% for for-sale units and from 20% to 50% for rental units.
- Fee Deferral: As part of the Impact Fee Deferral Program, new residential developments in the City of Longmont are eligible to defer payment for several City-relate fees.
- Subsidy for Water/Sewer System Developments Fees: Projects that provide more than the minimum required affordability may qualify for a percentage of the fees to be subsidized.
- Offsets for Cash-in-Lieu of Raw Water Deficits: A project that provides a minimum of 25% of total units in a development as affordable may be eligible to receive an offset for a percentage of the raw water deficit cash-in-lieu owed to the City. This incentive is only available to projects that are being platted; redevelopment projects are ineligible.
Applications and Guidelines
- Housing Incentive Program Application and Guidelines for For-Sale Projects
- Housing Incentive Program Application and Guidelines for Rental Housing Projects
Questions? Contact the Affordable Housing Specialist.
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