Land Use Policy

In order to protect the health, safety and general welfare of its citizens, government —local, state and federal—must be allowed to exercise legitimate enforcement powers and eminent domain to regulate private property. Before using this authority, however, government should be sure its actions will serve a real public use, offer persuasive, objective evidence to its citizenry and provide – as required by the 5th Amendment – “just” compensation to property owners.

A “just” amount includes:

• The current value of the condemned property.
• An additional amount to compensate the property owner’s loss of the future development value of the property.
• All costs incurred by property owners because of the government’s condemnation, such as legal fees, temporary housing, lost business revenue and severance damages, among others.

Private property owners have a fundamental right to determine the highest and best use of their land. This determination is best made by working with appropriate governmental entities and current comprehensive plan(s) for the area. Comprehensive plans should be living, evolving documents that:

• Are developed with extensive public input.
• Take property rights and economic and market conditions into consideration.
• Are flexible and subject to change as economic and environmental conditions change.

In conformity with locally adopted comprehensive plans, all zoning changes should take property rights into consideration. All property owners impacted by potential zoning changes must receive timely advance notice of potential changes and a clear, accurate explanation of what the changes are and how they differ from existing zoning.

DBR does not support involuntary rezonings, which negatively impact private property rights. Rezoning, particularly downzonings, have the potential to reduce values and limit home ownership opportunities.

There must be sustainable and responsible home ownership opportunities available for all individuals and families when they are ready. Policies that provide programs, government incentives and advanced counseling will help low- to-moderate income and first-time buyers learn about home ownership and become responsible homeowners, providing individuals and families with equity, wealth and security. Policies that encourage infill development will result in a broad range of for-sale and rental housing options.

Public investments in affordable housing create economic and social benefits in all sectors of the economy, so the cost of providing affordable housing should be distributed appropriately across all sectors. Affordable housing and inclusive zoning policies should provide builder/developer incentives such as density bonuses, parking reductions and tax credits. Policies also should support affordable housing opportunities in accessory dwelling units and on small lot sizes, where appropriate. These policies should not mandate participation in the creation of affordable housing, however, as these drive up all housing costs and push homeownership further out of reach for many citizens.

DBR feels it is imperative to be the front-runner on affordable housing education, policies, procedures and programs. This will enable DBR to support its members with the knowledge needed to adequately serve the affordable housing community.

Historic preservation offers a unique opportunity to preserve our past, but historic designation should not restrict a property owner’s ability to use the property or achieve energy and water efficiency goals. Preservation ordinances with specific guidelines should be voluntary and incorporate tax credits or other economic incentives to accomplish preservation.

Impact fees on new developments are inevitably passed on to the purchaser, which makes homes less affordable. To avoid this negative consequence, impact fee ordinances should contain these features:

• Segregation of impact fee proceeds from general fund government revenues.
• Use of impact fees exclusively for capital improvements in the public realm that are related to a specific new development—in accordance with adopted capital improvement programs.
• Reduction of or eliminate impact fees for developments offering primarily affordable housing or sustainable amenities.
• Credits for developers that offset impact fees. Credit sources could be increased property tax revenues paid as a result of the development, land dedications and infrastructure work performed by the developer.
• Collection of impact fees only at the point the impact is made on the community.
• Review, at the municipality level, the fairness and intent of impact fee legislation and sunset these planning decisions as appropriate.

Whether as a general or earmarked revenue source, real estate transfer taxes and fees are a burden to buyers and sellers at the time of closing

Tax-increment financing is a better alternative to impact fees, real estate transfer
taxes and property tax increases. Tax increments from new development can help retire bonds issued to fund the development initially or be used as leverage for the special district’s future growth. 

Higher energy and water efficiency are laudable goals, but requiring actions to achieve these goals at the point-of-sale complicates and delays transactions, places escrows in jeopardy and increases costs. Programs that encourage and incent property owners to increase energy and water efficiency will be most effective when outside the scope of real estate transactions.

Growth management measures such as moratoria and building permit caps do
not benefit communities. Measures that promote higher densities and mixed
uses, however, can be beneficial, particularly around transportation centers.
Recognizing that land is a finite resource, careful planning that respects property
rights and considers future uses and needs must be done with substantial public
input. Planning for future growth should include a commitment to housing
opportunities for a diverse population, quality public facilities and services, a
strong employment base and environmental protection. 

The availability of safe, convenient and efficient transportation and mass
transit enhances communities, supports property values and mitigates the effects of traffic congestion that accompany growth. By improving mobility in communities, citizens will have access to the type of transportation best suited to their needs.

Sustainability:  Environmentally-sustainable development and construction policies and practices aimed at upgrading the energy-efficiency of existing and new housing stock and commercial buildings must be voluntary, incentive-based and economically feasible.

Energy Sources:  Alternative energy sources for homes, businesses and transportation must be developed.

Water Conservation:  Positive policies are necessary to encourage water conservation, develop additional water resources that do not negatively impact the natural environment, create water mitigation plans that protect and enhance natural habitats and foster appropriate use of water supplies.

Incentives:  Sustainable principles can be better met through the use of incentives and education that encourage private market efforts than by government mandate.

While protection of Front Range view planes can preserve the mountain vistas and city views that enhance real estate values, excessive use of view plane ordinances has the potential to diminish the value of other real estate by restricting height and limiting density.