Hailey, Idaho Repeals Affordable Housing Laws

The Hailey City Council voted unanimously this week  to repeal a five-year-old affordable housing requirement contained in the city’s subdivision ordinance.

Back in 2005, new requirements were put into place that required 20 percent of homes in new subdivisions be affordable housing units.  In exchange, the developers were allowed a 20 percent density bonus in the real estate development. 

So far, there are 13 community housing units that have been built.  They offer various deed restricted and income based terms for the owners.  Unfortunately, up to six of the units had to be rented because they could not attract buyers.  I find this particularly confusing because we supposedly have a waiting list of approximately 200 applicants for affordable housing units but thees 6 units remain rented instead of sold.  I am trying to get my arms around this gap.  Believe me,  I am all for an affordable workforce housing program in Sun Valley, Idaho but sometimes I question the effectivness of the programs currently in place.

In any event, the Idaho district courts have ruled that in several instances througouth the state,  “inclusionary” community-housing requirements, as part of a subdivision ordinance, are illegal but affordable housing units can still be required for properties that are being annexed into the city from the county or developments that are designed as planned unit developments. 

Mayor Rick Davis said the city had “no choice” but to repeal the requirements due to the threat of litigation.  We’ll see how it goes.  Stay tuned.