The Littleton City Council unanimously approved an Inclusionary Housing Ordinance (IHO) November 1, becoming the sixth city in the Denver metro area to adopt a policy to establish and fund affordable housing. The policy, which takes effect November 10, offers a variety of options to developers to help Littleton address its shortage of affordable housing. New residential developments of at least five units must now include at least 5% of them as affordable; or pay a fee-in-lieu of building the affordable units.

Those who choose to build affordable units instead of paying the fee will receive incentives, including a reduction in parking requirements, an increase in the units allowed per acre, and rebates on fees. Developers who choose to build majority-affordable developments – meaning at least 50% affordable or 25% “missing middle” housing types – will receive greater incentives, including a reduction in minimum lot size. Fees-in-lieu collected from developers will be used to fund affordable housing development elsewhere, utilizing partnerships with agencies like South Metro Housing Options and Habitat for Humanity.

Littleton’s IHO was five years in the making, beginning with the city’s 2017 housing study and needs assessment, which found a deficit of housing attainable by Littleton’s workforce. The housing study’s recommendations, calling for the development of affordable housing, were incorporated into Littleton’s 2019 comprehensive plan. A 2020 update to the housing study found affordability conditions were continuing to degrade, with housing prices increasingly uncoupled from wage gains, causing the number of young families in Littleton to decline.

Effects have been felt citywide, including the closure of several elementary schools, which Littleton Public Schools attributes in large part to housing affordability. Meanwhile, studies presented to the Tri-Cities Homelessness Policy Group show that a shortage of affordable housing is a contributing factor to homelessness.

The City of Littleton convened the Housing Task Force in 2020, and city council unanimously approved the Unified Land Use Code (ULUC) in fall 2020, enabling modern land use practices and policies. City staff collaborated with the Housing Task Force to develop the IHO beginning in spring 2022.

Littleton Mayor Kyle Schlachter said the IHO is a crucial step toward keeping Littleton a vibrant place. “We’ve heard time and time again that housing costs are one of the most important issues to our residents and businesses,” he said. “The current housing market clearly isn’t working for people to find housing at a reasonable price. Costs have gotten out of hand, and the IHO provides an opportunity to offer some relief when it comes to what Littleton residents can afford to spend on housing.”