Moab tables impact-fee waiver for 144-unit affordable project at 1581; directs staff to create housing‑fund policy

The Moab City Council on Oct. 28 discussed a developer request to waive sewer and stormwater impact fees for a proposed 144‑unit affordable housing development at 1581 Mill Creek Drive and ultimately voted 5–0 to table the request, directing staff to prepare a formal policy that would guide how the city uses its housing funds to support development partnerships.

Project and financing Staff described the proposed development as three buildings totaling 144 units on just under 7 acres; plans identify 72 units that are two‑bedroom or larger and 72 one‑bedroom or smaller. The developer said the project uses Low Income Housing Tax Credit (LIHTC) financing and that land-use restrictions associated with the tax credits are recorded at closing. The developer told council the project’s rents average 60% of area median income (AMI), with units ranging roughly from 40% to 70% AMI. The tax-credit program requires a long-term land-use restriction; staff said the LIHTC program in this case would require a 55‑year restriction and annual monitoring by the state.

Impact fees, the city recommendation and housing fund options Staff reported system impact fees (the city’s share for the phase under review) were about $190,000 for sewer and storm drain. City staff recommended a discretionary 50% waiver totaling roughly $95,445, conditional on a recorded 55‑year deed restriction and other assurances. Staff noted the waiver would not eliminate physical impacts to sewer and storm systems; it would relieve a near-term cash obligation for the developer that the city could offset by using housing-fund resources (including the city’s workforce housing fee-in-lieu, a.k.a. WAHOO or the housing fund).

Staff reported about $590,000 in the housing fund overall and that roughly $300,000 was currently unallocated; staff said these funds may be an appropriate source to offset waived impact fees because the code allows fee-in-lieu funds to be used for affordable-housing development.

Developer timeline and request context Developer representative Jake Williams told council tax credits were already awarded, the land‑use restriction would be recorded at closing, and the developer expected closing in December with a ground‑breaking as early as December or January. He described a financing gap resulting from a reduction in anticipated sustainability/energy credits that had been expected earlier in the process.

Council discussion and direction Councilmembers said they support affordable housing and recognized this project addresses local workforce needs, but several members expressed concern about setting an open-ended precedent for fee waivers without a written policy and transparent criteria. Councilmembers emphasized they would not waive fees without knowing where the city’s funds would come from and how similar future requests would be treated. Several speakers urged creative alternatives such as a revolving loan fund or subordinate soft-loan structure that would stretch housing dollars further.

Motion and result Councilmember Caitlin moved to table consideration of the impact-fee waiver request for the Cooperative (1581), to direct staff to draft a formal policy describing how the city leverages its housing fund to support affordable-housing development partnerships, and to return with that policy for council consideration. Councilmember Jason seconded the motion. The motion passed 5–0.

Next steps Staff committed to drafting a housing‑fund policy for council review at an upcoming meeting (staff suggested the Nov. 12 meeting as a target but noted additional time may be required). Staff also said it would work with the developer and with other potential funding partners (including Grand County and utilities) to clarify timing and any conditional reimbursement approach if council eventually authorizes a waiver or loan after policy adoption.