Affordable Housing Strategy and Action Plan
City council adopted the Affordable Housing Strategy and Action Plan on January 9, 2023, as a guiding document to address housing affordability in Wheat Ridge. The process started in early 2022 and included opportunities for public input, discussions with over 20 housing developers, and four city council discussions in 2022. The strategy can be found here and an abbreviated version of the work plan is below that will be updated regularly as implementation progresses.
Housing Affordability in Wheat Ridge
In the mid-2000s, Wheat Ridge faced a lack of economic development opportunities and homeowner investment that concerned local leaders. Development opportunities that could improve the community were regularly choosing nearby cities instead of Wheat Ridge. Consequently, city officials made it a top priority at that time to improve the community’s quality of life and economic health while increasing its competitive position within the Denver region. Wheat Ridge was at a crossroads.
In those days before the Great Financial Crisis of 2008, a house in Wheat Ridge was relatively affordable. Fast forward to 2022 and things are more than a little bit different.
The median price for a house in Wheat Ridge is approaching $600,000 and the rental market is pushing one- and two-bedroom rents beyond $1,100 and $1,400 respectively. That means a new buyer household in Wheat Ridge likely needs an income of at least $150,000 per year (vs the 2020 median household owner income of $91,000) to afford a house. A renter needs an income of $56,000 to afford the median priced two-bedroom apartment (vs the 2020 median renter income of $42,000).
As of 2020, more than half of all Wheat Ridge renter households paid 30% or more of their household income toward housing costs. This is the government definition of unaffordability, or a “cost-burdened” household. Nearly one in four current Wheat Ridge owner households face similar affordability challenges, but the problem is more pronounced for new buyers today. New buyers likely have to have incomes in the top 20% of all U.S. households in order to purchase a house in Wheat Ridge.
This is new territory for Wheat Ridge, which as recently as five years ago was still working to revitalize itself and become more attractive and competitive within the Denver region. The strengthening local market is helpful in that regard, but city leaders are beginning to ask about the downsides of this good fortune.
This is the context within which the city began a new project–the Affordable Housing Strategy and Action Plan. It represents the first time the City of Wheat Ridge specifically studied housing affordability in the community and crafted a policy approach toward addressing the issue.
Project Basics
The purpose of the Affordable Housing Strategy and Action Plan is to:
- Assess housing affordability challenges in the community;
- Identify potential tools and resources that could help address challenges if they exist; and
- Outline action steps that match the right tools and resources to the challenges.
The consulting firm czb—experts on local government housing policy—were hired to provide the necessary technical analysis, stakeholder outreach, and strategic recommendations. czb worked closely with city staff and city council to develop a policy framework, a tool kit for implementation, and action steps to put the policies and tools to work.
Project Background
The City of Wheat Ridge has minimal policies related to housing affordability. Without this essential foundation, the city lacks direction on whether and how to take action to address affordability challenges. Recognizing this, the city applied for and was awarded a grant in October 2021 to create the city’s first Affordable Housing Strategy and Action Plan. The grant stems from the State Department of Local Affairs (DOLA) Affordable Housing Planning Grant Program and Colorado House Bill 21-1271, which offers state assistance to local governments to promote the development of innovative affordable housing strategies.
The project is largely technical in nature with a comprehensive review of data, needs, gaps, and the variety of tools that can support different housing types.
Accomplishments and Action Plan
The City has advanced several best practices and has taken decisive action to advance housing affordability in Wheat Ridge. This includes:
- Created the Wheat Ridge Housing Fund and dedicated a portion of short term rental lodgers tax to the fund
- Filed a commitment to grow the City’s affordable housing stock by 3% annually in accordance with Proposition 123 and providing eligibility for state funding
- Provided gap funding from the WR Housing Fund to Foothills Regional Housing (FRH) to enable acquisition of the Vance Street Lofts
- Approved land sale of the Bank of the West property at 44th and Wadsworth to FRH to enable a logical site design and uniform site control for a proposed mixed-income, multi-phase project called The Ives
- Modified the code to allow accessory dwelling units
- Modified the code to reduce parking requirement for deed restricted affordable housing units
- Modified the code to waive park fees for deed restricted affordable housing units
The adopted strategy prioritizes ten actions to address the issues identified. The list below is a brief summary of those actions that will be updated periodically as implementation progresses. The Strategy provides a more detailed summary of the action items and how they tie to Wheat Ridge's specific housing needs and opportunities.
Affordable Housing Strategy Action Item (in order of priority) | Brief Description | Status (October 2025) |
Revise Zoning Framework for Community Benefit | Require all projects in mixed-use districts to either produce mixed-use or inclusionary affordable housing, and establish a new R-4 district with inclusionary requirements. | In July, council decided to pause work on an inclusionary housing zoning (IHZ) framework and pursue a nexus study for a housing impact linkage fee. Staff will hire a consultant to help with the study early next year. |
Wheat Ridge Housing Fund | A dedicated fund to receive, hold, and deploy financial resources specifically in support of affordable housing activities. | Staff will discuss programs for the Housing Fund with City Council in early 2026. |
Housing-Supportive Code Amendments | Amend the City’s code to support affordable housing development in areas such as: process, fees, parking minimums, “no net loss,” etc. | In August, City Council discussed expedited review of affordable development projects. On October 27, staff will bring a resolution to City Council, establishing the city's commitment to this effort. |
Continue Lutheran Legacy Implementation Efforts | Continue preparing for the eventual Lutheran redevelopment and set clear expectations. | Visit the Lutheran Legacy Campus webpage for the latest redevelopment updates. |
Housing Staff | Hire a staff person dedicated to housing program management. | The city hired a Senior Housing Planner in January 2025 to lead housing policy and programs. |
Comprehensive Plan Update | Use the comprehensive plan process to reaffirm community support for affordable housing goals and establish community’s vision for growth and development. | Wheat Ridge City Council adopted the City Plan on September 8. Learn more about the effort and read the adopted plan on the City Plan webpage. |
Naturally Occurring Affordable Housing (NOAH) Preservation Program | A program to make grants from the Wheat Ridge Housing Fund to rental property owners to upgrade aging rental units in exchange for affordable rents. | Council provided consensus to allocate all $2 million of federal funds from the city's NOAH program to Foothills Regional Housing (FRH). FRH will use the funds to purchase and convert the 16-unit Fruitdale School Lofts property into affordable housing for households earning 80% of Area Median Income. |
Update Development Code and Zoning Map | Following the update to the comprehensive plan, update the city’s code and zoning map to reflect the plan. The community-wide discussion of whether, where, and how to accommodate new housing is best suited for the comprehensive plan where public engagement will play an important role. | With the City Plan adopted in September, staff is now working on implementation. Check the City Plan webpage for the latest updates. |
Exploration of Changes to Charter Limits on Height and Density | Following the update to the comprehensive plan, establish a commission to study the possibility of amending the city charter’s current limits on height and density in order to make a recommendation for a potential ballot question. | In November 2024, Wheat Ridge voters approved changes to the City Charter allowing taller buildings in the center of the Lutheran Legacy Campus in exchange for shorter buildings around the edges. Future discussion on this action item will come from implementation of the recently adopted City Plan. |
Update Affordable Housing Strategy and Action Plan | Update this document to respond to new conditions and events. | In August, City Council agreed to join DRCOG's regional housing needs study to comply with one component of a new state law for Senate Bill 24-174 Sustainable Affordable Housing Assistance. Staff will need to update the Affordable Housing Strategy and Action Plan by 2028 to stay in compliance with new state requirements. |
Question About the Project?
If you have a question about this project, either post it here or email the "Who's Listening" staff members above, and we'll get back to you within one business day.
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