Affordable Housing Incentives - City of Longmont Skip to main content
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City of Longmont Affordable Housing Program

Providing housing for all is an interwoven theme throughout the Envision Longmont comprehensive plan. This page includes both the general 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

illustration of a two story home with a porchFor-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 below a maximum sales price determined by the City).

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.

 

Inclusionary Housing Ordinance Compliance Options

  • On-site: Provide required affordable housing units within the development
  • Fee-in-Lieu: Pay fees to the City’s Affordable Housing Fund based on final finished square footage
  • Off-site: Build the required affordable housing in another location
  • Land Donation: Donate land to the City or to a non-profit housing developer
  • Voluntary Alternative Agreement: A developer and/or builder can propose to City Council an alternative way of meeting the Inclusionary Housing 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.

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Available Incentives for Developers

Land Development Incentives for Affordable Housing

  • Density Bonus: Projects including affordable housing shall be eligible for additional units up to 25% above the maximum residential density allowed in the applicable comprehensive plan land use category as outlined in Longmont Municipal Code Section 15.04.030.A.2.
  • Building Height: Multifamily residential or mixed-use projects including affordable housing shall be eligible for up to one more story (15 additional feet) than allowed by the applicable zoning district as outlined in Longmont Municipal Code Section 15.04.030.A.2. and Table 15.03.080(2).
  • Reduced Lot Size and Lot Width: Minimum lot area and minimum lot width in the R-SF, R-MN, and R-MF zoning districts shall be reduced by 20% for projects meeting their Inclusionary Housing requirements on-site as outlined in Longmont Municipal Code Section 15.03.080.B.
  • Bypass Preliminary Plat Review Process: Subdivisions that create 4 or more lots can bypass the preliminary plat review and public hearing process (proceeding directly to final plat) if the development includes at least 12% on-site affordable housing units as outlined in Longmont Municipal Code Section 15.04.030.A.2.

 

Financial Incentives for Affordable Housing

Approved projects that provide more than the minimum requirement are eligible for additional incentives, subject to available funding, including:

  • illustration of a small homeFee Waivers: A percentage of certain development fees may be waived for qualifying projects as outlined in Longmont Municipal Code Section 4.79.
  • 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.

 

Section 800 Urban Neighborhood Design Standards

In 2025, the City developed new design standards titled Section 800 Urban Neighborhood Design. These standards are tailored to accommodate higher-density, compact, and walkable developments, enabling more efficient land use while ensuring necessary public infrastructure such as streets, utilities, and stormwater systems can be constructed at the lowest possible cost while providing safe and reliable utility services. New guidelines were adopted in alignment with Envision Longmont that address various aspects of public infrastructure design.

The new Urban Neighborhood Design Standards apply to properties zoned Residential (R) or Mixed Use (MU) generally with residential densities of eight units or greater per acre. Key changes introduced by Section 800 include:
• Reductions in right-of-way widths, with provisions for narrower streets and alleys. Alley design encompasses emergency access, maintenance, and utility service.
• Adjustments to stormwater management to account for increased density, including guidelines for underground stormwater detention and alignment with existing design criteria.
• New provisions for water meter placement and utility layout, with an emphasis on minimizing required area within private lots.
• Modifications to LPC/NextLight installation practices to allow for more compact utility corridors, enabling more efficient land use and greater flexibility for developers.
• Standards for emergency access, ensuring that emergency vehicles can navigate local street sections while maintaining safety and operational effectiveness.

These standards are designed to streamline the development process, reducing the overall construction cost of infrastructure by lowering the land-use and utility-related barriers. Additionally, the standards facilitate innovative, compact, urban scale development without the need for design exceptions or Planned Unit Development (PUD) zoning.

 

Applications and Guidelines

 

Questions? Contact the Affordable Housing Specialist.

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