Breckenridge Officials Torn Over Accessory Dwelling Units and Affordability Concerns

The groundbreaking at Breckenridge’s Runway Neighborhood has sparked debates among town officials about the possible inclusion of accessory dwelling units (ADUs) in the area. At a recent town council meeting, no formal vote was secured, but many council members expressed their wish for the addition of ADU-ready infrastructure in the town’s latest significant workforce housing neighborhood.

The first phase of the Runway Neighborhood project includes 81 housing units. Of these, 27 single-family homes could potentially house ADUs. The project, initially proposed in two phases with around 148 units, has seen officials commit only to the first phase due to economic uncertainty, with an approximate town subsidy of $34.6 million.

Despite the opportunities for additional rental units and increased income for homeowners, the addition of fully built ADUs has raised concerns among staff members. They argue that it could narrow the qualified buyer pool and create issues with long-term affordability.

Estimated construction costs for an ADU stand at $120,000 per unit, with utility and permit fees amounting to an additional $30,000. The price difference between fully built-out ADUs and mere shells could reach around $800,000. This figure considers the 27 eligible homes and the $30,000 per unit for utility and permit costs.

Housing project manager Melanie Leas voiced her concerns over the potential cost, stating that the inclusion of ADUs upfront could remove owners’ opportunity to add value over time through their own investment. However, it was expressed that owners could recoup some of their expenses during a resale.

Despite the potential price increase, some council members believe that the addition of ADUs would be worth it. Council member Todd Rankin argued for the importance of maximizing the limited land in the valley, pushing for at least some ADUs to be fully built.

Rankin’s suggestion to add a light deed restriction with fewer requirements regarding income levels and price points sparked further debate. Housing director Laurie Best responded by highlighting the financial implications of his proposal, pointing out that someone would have to pay for it.

Mayor Kelly Owens interjected, suggesting that the matter would resolve itself later in the process. Other council members contributed their thoughts, expressing varying levels of support for the shell model and concerns over price points for buyers.

The discussion will continue to unfold as Breckenridge officials strive to strike a balance between workforce housing needs, homeowners’ interests, and long-term affordability in the Runway Neighborhood.