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Wellington staff urges opt-in for state housing funds, seeks board direction on fast-track, ADUs and inclusionary zoning

August 13, 2025 | Wellington Town, Larimer County, Colorado


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Wellington staff urges opt-in for state housing funds, seeks board direction on fast-track, ADUs and inclusionary zoning
Town planning staff presented a multi-part package of housing-related actions to the Wellington Board of Trustees on Aug. 12, urging the board to opt into the state's Proposition 1'13 program for the current reporting cycle, adopt an expedited review policy and pursue available planning grants to meet new statutory deadlines.

Why it matters: Senate Bill 24-174 and related laws require a housing needs assessment (already completed), a housing action plan, and comprehensive-plan additions (water-supply and strategic growth elements) on accelerated timelines. State funding tied to Proposition 1'13 and related DOLA programs can provide planning capacity funds and incentives, but jurisdictions must commit to reporting and procedural changes.

Planner Britney Lenore and Planning Director Cody Byrd told trustees that Proposition 1'13 creates a statewide affordable housing fund and offers local planning capacity grants and an incentive for early adoption of an expedited review policy ("fast track"). Staff said Wellington's baseline is calculated at 52 affordable units for the current three-year cycle; opting into the final year requires a 3% increase over baseline (two additional affordable units) with reporting due Dec. 31, 2026. If a jurisdiction fails to meet its commitment in the first year, the consequence is ineligibility for the first year of the next cycle, with the ability to regain eligibility in later years.

Lenore described eligible project types (new construction with affordability controls, preservation/extension of affordability, conversions such as hotels to housing, and naturally occurring affordable housing). She summarized grant programs: a local planning capacity grant (DOLA) with a suggested $250,000 max award and 20% match; a housing planning (HPLN) grant for housing action plans with 25% match; and other funds administered by Colorado Housing and Finance Authority.

Staff recommended the board: (1) opt into Proposition 1'13 for the current reporting cycle (deadline Nov. 1) to unlock funding and the $50,000 no-match DOLA incentive if the town also adopts the fast-track policy by Dec. 1, 2025; (2) adopt a fast-track policy (staff suggested administrative policy to meet the December timeframe, with the option to codify later); (3) pursue housing-planning grants (HPLN) and local planning capacity funds to pay for consultant-assisted housing-action-plan work and comprehensive-plan water-supply/strategic-growth elements due in 2026; and (4) research inclusionary zoning, ADU expansion and fee-waiver/reduction incentives and return with options for board consideration.

Trustees expressed broad support for seeking grants and for the fast-track policy and asked for more options on inclusionary zoning (density bonuses, land dedication, fee-in-lieu) and clarification on ADU options and potential HOA preemption. Trustees also raised practical concerns about staff capacity; Byrd said staff will lean on DOLA technical assistance and grant-funded consultants where needed, and will bundle related code amendments where feasible.

No ordinance was adopted at the meeting. Staff will return with draft fast-track language, grant applications as timelines allow, and research on inclusionary zoning and ADU policy options.

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