Hoping to address concerns about the rising costs and high demand for housing in Centennial, the city council is drafting potential regulations for accessory dwelling units. As part of that process, city officials are also researching a strategy called “land banking.”
For more than a year, the council has been studying and discussing potential strategies to address housing affordability and accessibility issues in Centennial.
One is permitting accessory dwelling units, or ADUs. These are smaller, secondary residential structures located behind a house or within a house, according to the city. Many people call them “granny flats” or “mother-in-law apartments.”
The city is developing a rough draft of potential regulations for ADUs with city council input. At a Jan. 9 meeting, city staff asked the council if it wanted occupancy limits for ADUs or an owner-occupancy requirement, which refers to when homeowners are required to live in either the primary house or the ADU.
The council decided against an occupancy limit or owner-occupancy requirement, with several saying enforcement would be an issue.
“I don’t think that we have the staff power and manpower, really, to regulate it effectively,” said Council Member Robyn Carnes.
Staff said the next step is to bring forward a roughly 90% to 100% complete draft of ADU regulations for the council’s consideration.
The city is also considering another strategy to address housing needs. It’s called “land banking.” This is a tool local governments use to buy, acquire and hold land for later development, such as affordable housing projects, according to a city report.
The report said land banking is most effective in the following scenarios:
- The city can acquire and hold land to either donate or sell at a reduced price to an affordable housing project
- The city can acquire or accept donated land to later sell at a higher price to help pay for affordable housing
- A land trust could help pay for the rehabilitation of existing affordable housing.
A lingering question, however, is what land in Centennial is suitable for affordable housing and land banking. According to a city staff report, Centennial does not have an extensive amount of city-owned land that could be used to jump-start a land banking program.
Determining potential land sites would help the city understand the potential costs for initial land acquisition and help the city become more competitive for grant applications, according to the report.
Melanie Ward, a city staff member, asked the council if it supported staff conducting further research into land banking, to which the council agreed.
According to the report, staff will compile an inventory of land within Centennial that may be appropriate for future affordable housing.
“We would start with land that’s currently vacant or undeveloped, as well as any land that’s publicly owned,” Ward said. “Maybe it’s not owned by the city, but maybe it’s owned by the county or a school district and they’re looking for alternative uses for it.”
Staff will also look into some privately owned property, such as religious institutions that are considering additional uses for their land as well as shopping centers that are transitioning, she said.
The city will engage with affordable housing developers, organizations and professionals to better understand and evaluate if affordable housing can be successful in certain areas, according to the staff report.
“The outcome of this work is expected to be a report showing feasible areas and potential sites and may include cost estimates for property acquisition and estimates of potential housing unit creation,” the report said.
Those interested in learning more about Centennial’s housing study and policy development project can visit centennialco.gov/housing. Residents can share their input on the project and the strategies being considered by calling (303) 754-3308 or emailing [email protected].