(1) To designate an area as a transit center, a transit- oriented community shall: (a) Ensure that the area is composed solely of zoning districts that uniformly allow a net housing density of at least fifteen units per acre with no parcel or zoning district being counted as allowing a net housing density of more than five hundred units per acre; (b) (I) Identify a net housing density allowed for the area or for subdistricts within the area. As part of the guidance the department develops pursuant to section 29-35-207 (7), the department shall provide local governments with simple and effective methods of calculating net housing density. The identified net housing density must: (A) Reflect any significant dimensional or other restrictions in local laws used to regulate density in the area, including but not limited to restrictions related to units per acre, lot area per unit, lot coverage, site level open space requirements, floor area ratios, setbacks, minimum parking requirements, and maximum height. Where a dimensional restriction has multiple potential outcomes within the same zoning district or within related zoning districts, the average outcome of the dimensional restriction may be utilized by the transit-oriented community to measure net housing density. (B) Assume minimum parking requirements are met with surface parking; except that three-fourths of a parking space per dwelling unit may be counted as structured parking within the building footprint; (C) Assume an average housing unit size, as determined based on either the typical size of a multifamily housing unit that was recently built in Colorado as established in the census's American housing survey or the typical size of a multifamily housing unit in the transit-oriented community according to local data; (II) Nothing in this subsection (1)(b) requires a local government to include areas of individual parcels required for stormwater drainage or utility easements in calculating net housing density; and (III) If a parcel's existing residential uses have a higher net housing density than the net housing density allowed for the parcel by current restrictions in local law, the net housing density of the existing residential use may be counted; (c) Exclude any area where local law exclusively restricts housing occupancy based on age or other factors; (d) Establish an administrative approval process for multifamily residential development on parcels in the area that are no more than five acres in size. For multifamily residential development applications on parcels greater than five acres in size, a transit-oriented community shall identify a target net housing density for the parcels to count the parcels as part of the transit center that covers the area. This subsection (1)(d) does not prevent the establishment of developer agreements between the local government and developers. (e) Ensure that the area of a transit center is composed of parcels that are located wholly or partially within either: (I) A transit area or optional transit area; or (II) One-quarter mile from the boundary of a transit area or optional transit area. (2) (a) Notwithstanding subsection (1)(e) of this section, a transit-oriented community may only designate an area as a transit center within an optional transit area as described in section 29-35-207 (4), if the transit-oriented community has provided reasonable evidence in the housing opportunity goal report submitted pursuant to section 29-35-204 (8) that: (I) To the maximum extent feasible, an average net housing density of at least forty dwelling units per acre is allowed on all parcels within the transit area that are both one-half acre or more in size and not exempt parcels; and (II) Areas within the optional transit area have fewer barriers to housing development than areas within the transit area. (b) For purposes of subsection (2)(a)(II) of this section, barriers to housing development may include: (I) An anticipated lack of water supply, after accounting for a reasonable zoning capacity buffer; (II) An anticipated lack of sufficient future infrastructure capacity, including water treatment plants, wastewater treatment plants, or electrical power networks in the area, after accounting for a reasonable zoning capacity buffer; (III) Unique site characteristics which contribute to a high cost of housing development; or (IV) Sites that are infeasible for housing development.
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