Basalt P&Z recommends council adopt updated affordable‑housing cash‑in‑lieu amounts (first adoption since 2015)

Basalt’s Planning & Zoning Commission voted Jan. 21 to forward proposed amendments to Part 3 of the Community Housing Guidelines to town council. The amendments update the town’s cash‑in‑lieu fee calculations for affordable housing — the first update since 2015.

Staff told the commission the cash‑in‑lieu mechanism is limited in applicability and is the town’s least‑preferred mitigation method because converting cash into deed‑restricted dwelling units is difficult. Economic and Planning Systems (EPS) carried out a study using standard gap methodology to calculate fee amounts that reflect the gap between median free‑market prices and maximum affordable prices for different categories. Staff said the proposed changes substantially increase the fee amounts to better discourage developers from choosing cash in lieu over on‑site deed‑restricted units.

Commissioners asked about frequency of prior cash‑in‑lieu use; staff said the option has been used only once or twice in the past 20 years. Commissioners also asked whether a hybrid approach (split between a partial deed‑restricted unit and partial cash) was possible; staff said council could allow that under its discretion but the town’s preference is on‑site deed‑restricted units when feasible.

Following a public‑hearing record with no oral public commenters in attendance, a commissioner moved to forward the amendments as submitted by staff; the motion was seconded and the commission approved the recommendation to council by voice vote.

Next steps: the commission’s recommendation will be transmitted to town council for consideration and potential adoption.