Breckenridge is exploring options for accessory dwelling units (ADUs) in its new Runway Neighborhood. Officials aim to provide workforce housing. However, concerns are rising about the impact of ADUs on affordability. This article examines the discussions and potential challenges surrounding ADUs in Breckenridge’s Runway Neighborhood.
The inclusion of ADUs could provide rental opportunities for the local workforce. It would also give homeowners extra income. But there are fears that construction costs might increase housing prices. This could affect the long-term affordability of the project. This article breaks down the debate. It will explore the different perspectives of council members and staff.
We’ll cover the proposed “ADU-ready” model, potential grant incentives, and the financial implications of fully built-out units versus shells. We will also address concerns about narrowing the buyer pool and impacting long-term affordability. Stay tuned as we analyze the future of workforce housing in Breckenridge.
Breckenridge Considers “ADU-Ready” Model
Breckenridge officials are considering an “ADU-ready” model for the Runway Neighborhood. This involves constructing the basic structure and infrastructure for ADUs. However, the units won’t be fully built out. This approach aims to reduce initial costs. It would allow homeowners to complete the ADUs later. Staff members are exploring grant opportunities to incentivize buyers. These grants would help with the final construction.
Council members have discussed the benefits and drawbacks of ADUs. Proponents say ADUs could increase rental units for the local workforce. They also provide homeowners with rental income. Others worry about forcing homeowners to become landlords. These concerns have led to the exploration of the “ADU-ready” model. This offers a compromise between fully built-out units and no ADUs at all.
The cost-effectiveness of the “ADU-ready” model is a key factor. By constructing shells, the town hopes to manage initial expenses. Grants could further offset the cost of completion. This approach seeks to balance the benefits of ADUs with affordability concerns.
Financial Implications and Affordability Concerns
Staff members have raised concerns about the financial impact of ADUs on affordability. Estimates suggest construction costs of $120,000 per unit. Utility construction and permit fees add another $30,000. This could narrow the pool of qualified buyers and create long-term affordability issues. The concern is that a million-dollar price point for a deed-restricted home would be too high.
Housing project manager Melanie Leas said that adding ADUs upfront could limit homeowners’ ability to add value over time through their own investment. Mayor Kelly Owens asked if homeowners could recoup expenses during resale. Staff members believe there would be opportunities for that.
The council is weighing the costs and benefits. They want to make sure new housing remains affordable for the local workforce. The financial implications of ADUs are a critical consideration. This will shape the future of the Runway Neighborhood.
Differing Council Perspectives on ADUs
Council members have different views on ADUs. Some support fully built-out units. Others prefer the “ADU-ready” model. Council member Todd Rankin wants to see some ADUs fully built out. He noted that the flat land in the valley is limited. He said that without ADUs, the project would have a low unit density. He suggested a light deed restriction with fewer requirements regarding income levels and price points.
Housing director Laurie Best questioned who would pay for fully built-out units. Owens said that matter would resolve itself later. Council member Jay Beckerman wants to ensure that homeowners don’t bear unexpected costs for utility hookups. He also expressed concerns about the permitting process.
Council members Carol Saade, Marika Page, and Steve Gerard support the shell model. The council’s diverse perspectives highlight the complexities of balancing housing needs with affordability.
Utility Hookups and Permitting Process
Beckerman raised concerns about utility hookups and the permitting process. He asked if homeowners would be responsible for connecting units to utilities. The project team said it would depend on whether the units were attached or detached. Detached units would require a different process and be more expensive.
Beckerman noted that some ADUs would be attached. Others wouldn’t be. He was wary about the impact on costs and permitting. He wants at least half of the units fully built out. He believes that it would be most beneficial for owners to have all units fully built out.
These logistical considerations are important. They highlight the need for clear guidelines and efficient processes. This will ensure the successful integration of ADUs into the Runway Neighborhood.
Potential Grant Incentives
Council member Dick Carleton supports the shell model. He also likes the idea of a grant to incentivize owners. Staff members are exploring potential grant opportunities. These grants would help offset the cost of completing the ADUs.
Grant incentives could make ADUs more attractive to potential buyers. They also address affordability concerns. The town hopes to leverage external funding sources. This will support the development of workforce housing.
The success of the “ADU-ready” model may depend on securing grant funding. These grants would ease the financial burden on homeowners. They also ensure the project meets its affordability goals.
Conclusion: Balancing Affordability and Workforce Housing
The Breckenridge Town Council is considering the best approach to ADUs in the Runway Neighborhood. They are weighing potential benefits against financial risks. The “ADU-ready” model offers a compromise. It balances the need for workforce housing with affordability concerns.
The council must address utility hookups, permitting processes, and grant incentives. These are critical to success. Differing perspectives among council members underscore the complexities of the issue.
Ultimately, the town aims to create a sustainable and affordable housing solution for its local workforce. The decisions made in the coming months will shape the future of the Runway Neighborhood and set a precedent for future housing developments in Breckenridge.
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