NEDERLAND — Since December of 2022, the Town of Nederland has applied for grant funding, hired consultants, completed assessments, devised strategies, committed to state propositions, and amended Nederland Municipal Code (NMC)—all in an effort to create affordable and alternative housing for the workforce, older adults, and young families, as well as to earn government incentives. 

It started with consultants Bohannan Huston Inc. and their contract with the Town to complete a Housing Needs Assessment, all of which was funded by  the Colorado Department of Local Affairs (DOLA) Innovative Housing Strategies Planning Grant Program.

In order to complete the prerequisites for the grant program and be eligible to ascend to the next level of the pyramid—the Housing Development Incentive Grant Program—the Town was required to provide an updated housing assessment and to make one change to its zoning code that promotes affordable and/or alternative housing. 

Out of the assessment, seven strategies were devised to address Nederland’s fundamental gap in housing type availability. These strategies were rated based on affordability considerations and on their ability to increase housing development.

Those seven strategies were narrowed down to four by a subcommittee of the Nederland Planning Commission, and from those four strategies spawned suggestions for potential code changes.

Those code changes include: allowing Town staff to approve up to a 15% administrative variance to yard and bulk requirements; allowing for a 50% variance to yard and bulk requirements for deed-restricted affordable housing; allowing Accessory Dwelling Units (ADUs) to be constructed before the completion of a primary residence; amending the Use Group Table to specify which residential zoning districts will allow the development of alternative housing types, such as tiny homes and triplexes; and removing “preferred” language associated with the Medium Density Residential and High-Density Residential zoning districts.

The Planning Commission reviewed and recommended all changes to NMC, and the Nederland Board of Trustees (BOT) voted to approve all ordinances on December 5, 2023. 

The Town pursued other housing initiatives in addition to the requirements of the Housing Development Incentive Grant Program, including Proposition 123, in which they committed to a baseline goal of laying the foundational groundwork for the creation of at least 13 affordable housing units by December 31, 2026. 

The BOT also instituted an administrative variance process in order to expedite the development review process, and established specific affordability considerations, such as setting the necessary proportion of units in a development that must be “affordable” to 20%, and setting the length of time that a unit must remain affordable to 30 years. 

With the completion of the Town’s Comprehensive Plan update, Community Planner Britt DeMinck and the Planning Commission have been working continuously on further breaking ground on affordable housing measures in 2026, starting with state requirements that Nederland must be compliant with in order to remain eligible for tiered DOLA funding provided through the Proposition 123 program.  

ADU State Compliance 

First, the Town adopted Ordinance 888 on April 21, 2026, amending NMC Section 16-33, Chapter 16 to be compliant with statewide changes made to ADU regulations through HB24-1152, setting principal property setback limits and ADU setback limits for particular property zones. 

Properties zoned Mountain Residential and Low Density Residential are required to have a 40-foot rear setback for the principal structure, a 40-foot rear setback for the ADU, and a 10-foot Accessory Use setback. 

High Density Residential and Neighborhood Commercial zoned properties are required to have a 15-foot rear setback for the principal structure, a 15-foot rear setback for the ADU, and a 5-foot Accessory Use setback. And Medium Density Residential zoned properties are required to have a 25-foot rear setback for the principal structure, a 25-foot rear setback for the ADU, and a 5-foot Accessory Use setback.

Fast-Track Review Process 

The required Fast-Track Review (FTR) Process affects “all applications in which 50% or more of the dwelling units are affordable,” which is defined to mean a monthly rent or mortgage payment that is less than 30% of the household’s monthly income, which must be at or below 60% of the Area Media Income (100% for for-sale housing units). 

All affordable housing applications that undergo the FTR process will receive a final decision regarding their permit or approval within 90 calendar days. Such a process may also apply to all site and development plans; Special Use Permit and Allowed Use Permit approvals; Planned Unit Development (PUD) approval; Accessory Dwelling Unit, Subdivision, Building Permit, and Variance applications; Floodplain and Hillside Development Permit approvals; and any construction and engineering drawings. 

After the ordinance went through a round of drafting with the Planning Commission—and a round of assessment by the BOT—throughout February, it returned to Commissioners on April 22, after a collaborative meeting between Town staff and DOLA representatives resulted in some changes to be reviewed. 

With the Commission ultimately agreeing with the changes—defining “affordable housing” to align with state law; clarifying when the expedited review process begins; specifying exempt application types; broadening the process for qualifying developments; and adding provisions in regard to application extensions, material revisions, and automatic approvals—Ordinance 890 was approved for recommendation to the BOT. 

Affordable Housing Feasibility Study

On May 5, the BOT voted unanimously to approve the Town’s participation in a feasibility study to evaluate the potential to build more affordable housing units on the Boulder County Housing Authority-owned Rodeo Court property and on the adjacent Town-owned land. 

Nederland and BCHA have been awarded $100,000 through Boulder County’s Affordable and Attainable Housing Tax to complete the study, which, according to Town reports, is “not intended to displace residents, remove existing homes, or approve redevelopment.” Instead, it is to evaluate whether more units can be added to the property in a way that “respects existing homes, site constraints, and infrastructure capacity.”

The Town-owned land next to the BCHA property will also be evaluated as to whether it can support affordable hosting development. BCHA, as the grant recipient, will be ultimately responsible for administering the funds, hiring the consultants, and completing the study. 

With Board approval set, Town Manager Jonathan Cain and Town staff will execute the funding agreement, coordinate with BCHA on the scope of work expected for the feasibility study, ensure compliance with the requirements of the grant, and return to the BOT with results of the study and possible recommendations for policy changes. 

2024 Building Codes and Energy Code Adoption

Also on May 5, the BOT approved one last bit of state compliance by adopting the 2024 Building Code Package—which includes the International Code series, such as the International Building Code, International Residential Code, and related technical codes—and the 2024 International Energy Conservation Code (IECC).

According to Town reports, Building Codes establish the minimum standards for construction, which include: structural safety; fire and life safety; accessibility; mechanical, plumbing, and electrical systems; and general construction practices.

Energy Codes regulate the insulation and building envelope; heating and cooling systems; lighting efficiency; readiness for future electrification( and solar-ready provisions. 

While the Town had already been preparing to update its building codes by studying the 2024 code package, the mandate to adopt the IECC—which includes less strict provisions than its counterpart, the Colorado Model Low Energy and Carbon Code—has a deadline of July 1, 2026, requiring Trustees to agree to having an emergency ordinance be drafted to be voted on expeditiously.