Littleton staff recommend formal policy for inclusionary housing funds; council hears preservation and partnership requests

City staff presented an update on Littleton’s Inclusionary Housing Ordinance (IHO) and a proposed Affordable Housing Fund disbursement policy at the Sept. 23 study session, outlining how the ordinance has been applied since it passed unanimously in November 2022 and describing two current funding requests from local affordable‑housing partners.

The IHO framework and early results Julie Lakeham, the city’s housing policy analyst, summarized the IHO design: a 5% on‑site set‑aside for developments of five or more units, graduated fee‑in‑lieu calculations tied to development cost, and affordability targets set at roughly 60% of area median income (AMI) for rentals and 80% AMI for most for‑sale situations (with some higher allowances for small multi‑unit for‑sale types). Staff said the fee‑in‑lieu schedule is indexed to the Denver CPI and will rise with the published rate; the 2025 adjustment was 5.22% and a 2026 CPI adjustment was expected at about 2.3%.

Staff emphasized that the ordinance works within a 2021 state law that allows…