December 15th 2024.
When it comes to parking woes in affordable housing development, developers have plenty of horror stories to tell. They often face strict local requirements that limit the number of housing units they can build and can even lead to projects being sidelined. One example is Metro West Housing Solutions, who had to abandon a plan for 44 subsidized apartments in Lakewood due to the city's demand for a parking garage that would have cost over $1 million. Similarly, Adams County housing authority, Maiker Housing Partners, had to scrap 45 units in one of their recent projects in the Denver metro area because they couldn't afford to build a parking space for every unit.
The conversation around parking is a constant struggle for developers, as Susan Powers, the president of Urban Ventures in Denver, puts it, "We all hate it. We all have to live with it." They design their projects to maximize the number of units, but when faced with insufficient parking, they have to cut back on the number of units, which they don't like to do. However, with the passing of House Bill 1304 in May, things may soon change for the better. The bill generally prohibits Front Range cities from mandating a set number of parking spaces for housing developments near transit stops. This will have a significant impact, as these transit zones cover a significant portion of the urban core in cities like Denver, Colorado Springs, and Boulder, according to state maps.
Some cities are even considering bolder measures when it comes to parking requirements, which has sparked passionate debates. The elimination of parking minimums raises concerns about increased traffic and longer walks to reach destinations. To address these concerns, city officials are focusing on educating their communities about the potential changes. The reforms have received support from housing and transit advocates, city planners, developers, and even Governor Jared Polis. They believe that reducing parking requirements will lead to more housing, particularly for low-income individuals, and make the approval process easier for planners who are responsible for the state's housing supply. In addition, it aligns with the goals of transit and climate advocates, who see fewer parking spots as a key factor in building more walkable neighborhoods and reducing reliance on cars.
Research and success stories from other cities that have eliminated parking minimums, such as Minneapolis, have further strengthened the argument for these reforms. According to a report by the Colorado Energy Office, these sweeping changes in parking requirements could lead to more urban and transit-focused development compared to other housing policies recently passed into law. Governor Polis himself stated in an interview that, "Of all the housing reforms to reduce cost and increase supply of housing, eliminating government-mandated parking requirements is really the most impactful change that we've made so far." He also pointed out that parking spots can add significant costs to housing units and decrease the number of units that can be built.
As the state works towards implementing the new law and local governments begin adjusting their zoning codes, policymakers and experts are curious to see how these changes will impact the market. They believe that the market's response will determine the true impact of these reforms. However, cities like Denver and Boulder are considering going even further by eliminating parking minimums entirely, not just for housing but also for businesses, which have their own specific parking ratios.
Denver city officials have already presented this idea to a City Council committee, and Boulder is also working on their plans with the support of city leaders. Justin Montgomery, a senior city planner in Denver, explained to council members, "If people need to choose whether to provide a parking space or a unit, we would like them to provide a unit." However, some concerns have been raised by Denver Councilwoman Amanda Sawyer, who represents District 5, which includes residential neighborhoods and rapidly densifying areas like Cherry Creek. She believes that parking is essential for small businesses in her community and that insufficient parking may deter people from accessing them.
Despite the changes in parking requirements, developers and housing experts believe that parking is here to stay. Lenders who finance apartment projects still require a certain ratio of parking spots to units, regardless of what local governments mandate, as it makes it easier to find tenants. Moreover, developers understand the need to attract residents who own cars and will continue to include parking in their projects.
The issue of parking has also been an underappreciated factor in America's housing crisis, especially for developers of subsidized housing projects. Local governments can require a certain number of parking spots per apartment unit, per barstool, or per square feet of space, making it challenging to find suitable locations for projects in urban areas. The cost of building parking spaces, which can range from $5,000 to $50,000 apiece, can also significantly impact the financial margins of subsidized developments, leading to fewer units being built. This is also true for market-rate developers, who need to recoup the costs of parking spaces from investors.
However, studies have shown that Colorado's urban areas already have an abundance of parking. The Parking Reform Network found that off-street parking takes up 17% of the central city in Denver and 21% in Colorado Springs. A study by the Regional Transportation District also found that market-rate properties provide 40% more parking than residents use, while income-restricted properties provide 50% more parking than residents use. At the same time, the state is facing a shortage of tens of thousands of housing units, according to a study by the Common Sense Institute. This is why the legislature has been working on land-use reforms, such as adding density in urban areas and allowing for accessory-dwelling units to be built in backyards or above garages in Front Range cities.
Out of all the significant land-use reforms passed earlier this year, the parking measure will have the fastest impact, as local governments are required to comply with it by the end of June. Will Toor, the executive director of the Colorado Energy Office, said that state modeling showed that "while all of the policies had meaningful and significant impacts on making more housing units economically viable, the parking was by far the largest in terms of its impact." Both Denver and Boulder had considered eliminating their minimum parking requirements before. Denver's current minimums exempt single-family homes and do not apply to downtown or some specific neighborhoods. Affordable housing projects can also face reduced minimum per-unit ratios.
The success of eliminating parking requirements will depend on the location and type of project. For example, residents in subsidized housing may have fewer cars, meaning fewer parking spots are needed. The same is true for new apartment buildings in walkable neighborhoods with access to public transportation. However, this may not be the case for expensive high-rises or areas that are not walkable.
If you ask a developer who specializes in affordable housing about their experiences with parking, they will likely have a lot to say. Many of them have had to deal with strict local requirements that have significantly limited the amount of housing they can build, and in some cases, have even caused projects to be sidelined. For example, in Lakewood, a proposed plan for 44 subsidized apartments was dropped due in part to the city's demand for a parking garage that would have cost over $1 million. Similarly, the Adams County housing authority had to scrap 45 units from a project in the Denver area because they couldn't afford the required parking space for each unit.
Parking is always a major concern for developers, according to Susan Powers, the president of Urban Ventures in Denver. It's a headache for everyone involved, but it's something they have to deal with. They try to maximize the number of units they can fit in a project, but sometimes they have to sacrifice units to make room for parking. However, this is not an ideal situation, as Powers explains, "We don't like it, but we have to live with it."
But things may soon change in cities across Colorado. In May, legislators passed House Bill 1304, which prohibits Front Range cities from requiring a specific number of parking spaces for housing developments near transit stops. This is a significant change, as these zones cover a large portion of the urban core in cities like Denver, Colorado Springs, and Boulder.
Some cities are even going a step further and considering eliminating parking minimums entirely. This is a controversial move that has sparked passionate debates. On one hand, there are concerns about the potential for increased traffic congestion and longer walks to reach destinations. On the other hand, there are promises of more affordable housing, easier approval processes, and more walkable neighborhoods that reduce dependence on cars. And with success stories from other cities like Minneapolis, which eliminated parking minimums in 2021, there is growing support for this approach.
Governor Jared Polis and housing-minded legislators see this as a key solution to address the state's housing crisis. As Polis explains, "Of all the housing reforms we've made so far, eliminating government-mandated parking requirements is the most impactful change." This is because parking spots can add tens of thousands of dollars to the cost of a unit and decrease the number of units that can be built.
As the state works to implement the new law and local governments begin adjusting their zoning codes, there are questions about how effective this change will be. Will developers still choose to build parking even if it's not required? This is a concern for Denver and Boulder, who are considering going beyond just housing and eliminating parking minimums for businesses as well.
During a recent City Council committee meeting, Denver city officials presented the idea, but a formal proposal has not been filed yet. In Boulder, city leaders are also looking into this option. However, not everyone is on board with this idea. Denver Councilwoman Amanda Sawyer, who represents a district with both residential and commercial areas, has expressed concerns about the impact on small businesses. She believes that people need places to park if they are going to support these businesses.
Despite the possibility of no longer having to meet specific parking requirements, developers and housing experts believe that parking will still be a top consideration. Lenders who finance apartment projects typically require a certain ratio of spots to units, and developers also want to attract tenants who have cars. As David Zucker, CEO of Zocalo Community Development, puts it, "We're not going to shoot ourselves in the foot."
But for developers of subsidized housing, parking has been a major roadblock in addressing the housing crisis. They are often required to provide a certain number of spots per unit, which can significantly impact the number of units they can build, especially in urban areas with limited space for parking. And with studies showing that many properties have more parking than residents use, there is a growing consensus that this requirement needs to be reevaluated.
The recent reforms passed by the legislature, including the elimination of parking minimums, are aimed at increasing the housing supply and lowering prices. And according to Will Toor, executive director of the Colorado Energy Office, the impact of eliminating parking requirements is expected to be significant. In fact, state modeling showed that this was the policy with the most significant impact in making housing more affordable.
Both Denver and Boulder have looked into eliminating their minimum parking requirements in the past, and research from other cities that have done so, like Minneapolis, has shown positive results. However, some developers believe that the impact will depend on the location and type of project, as not everyone will choose to live in a walkable neighborhood with access to public transportation. Overall, the hope is that fewer parking requirements will lead to more affordable housing and more livable, sustainable communities.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
