Lakewood planning commission holds public hearing on expansion of multifamily tax exemption and proposed code changes

City economic development staff opened a public hearing Feb. 19 on proposed changes to Lakewood’s multifamily tax exemption program and a recommendation to expand residential target areas to the Central Business District (CBD).

Becky Newton, Lakewood economic development manager, told the planning commission the staff package includes two code amendments and proposed expansions to residential target areas. Newton said staff recommends expanding the RTA in the CBD because the district is designated for new housing in the comprehensive plan, has infrastructure capacity, and qualifies the city for regional transportation grants.

The proposed code amendments would (1) add a 12‑year extension option for projects that received an initial 8‑ or 12‑year exemption, allowing projects in the CBD (outside the tax increment area), Lakewood Station District and Springbrook RTAs to apply for a subsequent 12‑year extension in exchange for continued or increased income restrictions on affordable units; and (2) clarify application timing by requiring the application be filed after land‑use permitting is complete (or prior to building permit issuance if no land‑use action is required) and that conditional agreements be fully executed before final certificate of occupancy issuance.

Newton summarized program eligibility: property owners who build new residential units or rehabilitate existing units in RTAs may apply for an…