HomeMy Public PortalAboutOrd. 820 - Title 3 - Community Housing Fee for Residential DwellingsORDINANCE NO. 820
AN ORDINANCE OF THE CITY OF McCALL, IDAHO AMENDING THE CITY OF
McCALL ZONING CODE, TITLE 3 TO REQUIRE A COMMUNITY HOUSING FEE TO BE
PAID FOR EACH NEW RESIDENTIAL DWELLING UNIT, PROVIDING FOR A
SEVERABILITY CLAUSE AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Housing Component of the McCall Area Comprehensive Plan includes the
following objectives:
o Prepare for the housing impact of major development proposals and expansions
on the City of McCall, its impact area, and surrounding vicinity;
o Encourage or provide for affordable housing; and
WHEREAS, the health, safety and welfare of the citizens of the City of McCall is dependent
upon a reasonable supply of affordable, deed restricted workforce housing (community housing)
being made available to ensure that critical professional workers, essential service personnel, and
service workers live within proximity to their work to provide municipal and private sector
services; and
WHEREAS, the City of McCall has determined through public input and the comprehensive
planning process that a reasonable supply of community housing is needed to promote the social
and economic diversity of the City; and
WHEREAS, the economic vitality and well-being of the citizens of the City of McCall is
dependent upon a reasonable supply of community housing, and that persons such as medical
personnel, peace officers, emergency personnel, fire personnel, and providers of other
professional services, which are vital to the community, are dependent upon the availability of
community housing; and
WHEREAS, to advance these objectives the City, in partnership with Valley County, Adams
County, and the communities of Cascade, Donnelly, and New Meadows, commissioned a
Housing Market and Needs Assessment for Valley and Adams County (Housing Needs
Assessment) that was completed July, 2005; and
WHEREAS, the Housing Needs Assessment determined that 210 community housing units are
currently needed in Valley and Adams Counties, including 145 low to moderate income homes
for families earning 50 to 100% of annual median income and 65 moderate to middle income
homes for families earning 100 to 160% of annual median income; and
WHEREAS, the Housing Needs Assessment determined that 200 additional homes are needed in
Valley and Adams Counties in the next two years, including 138 low to moderate income homes
and 62 moderate to middle income homes; and
WHEREAS, the Housing Needs Assessment determined that housing is needed for the families
of a significant number of the 700 to 1,000 construction workers estimated to be working in
Valley and Adams Counties and commuting to their homes elsewhere, reducing the vitality of
the local economy; and
WHEREAS, the Housing Needs Assessment determined that the total number of units needed to
catch up with demand in Valley and Adams Counties is between 550 and 610 units of
Community Housing; and
WHEREAS, the City of McCall encompasses approximately 20% of the region's population and
employment; and
WHEREAS, 20% of the housing needed to catch up with demand, as identified in the Housing
Needs Assessment is 110 to 122 homes, including 76 to 84 low to moderate income homes and
34 to 38 moderate to middle income homes; and
WHEREAS, the City of McCall is presently comprised of approximately 40% year round
primary residences and approximately 60% seasonally -occupied homes; and
WHEREAS, the City of McCall desires to maintain the current ratio of year round primary
residences to seasonally -occupied homes as the community grows; and
WHEREAS, the McCall City Council held housing policy discussions at City Council meetings
on July 14, 2005 and August 11, 2005; held public information sessions on housing policy on
August 20, 2005 and August 23, 2005, and held public hearings on a proposed Housing Policy
on September 7, 2005 and September 22, 2005; and
WHEREAS, to assure the existence of a supply of desirable and affordable housing for persons
currently employed in the McCall area, persons who were employed in the McCall area prior to
retirement, the disabled, and other qualified persons of the McCall area, the City of McCall
adopted the following Community Housing Policy (Resolution 05-19) on September 22, 2005:
1. Responsibility
1.1. The City of McCall is responsible for developing and implementing a community
housing program to meet the needs of its citizens.
1.2. The City of McCall will develop and implement this program in partnership with
other local, state, and federal agencies.
1.3. The City of McCall will regularly refine its community housing policy to reflect new
information and changing market conditions.
2. Seasonal/Year Round Housing Mix
2.1. McCall's Community Housing Program will be designed and implemented to
maintain the ratio (60/40) of seasonally -occupied homes to year round primary
residences as the community grows.
3. Intended Beneficiaries
3.1. McCall's Community Housing Program will be designed to benefit:
3.1.1. Low, moderate, and middle income families
3.1.2. Local workers
3.1.3. Senior citizens
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3.1.4. Special needs populations
4. Income Targets
4.1. The policy will develop housing targeted to meet the needs of the following
household types:
4.1.1. Low Income — 50% of median income
4.1.2. Moderate Income — 80% of median income
4.1.3. Middle Income — 160% of median income
5. Job/Housing Relationship
5.1. Community housing will be developed primarily for people with jobs in the
community.
5.2. McCall will house at least 50 percent of its workforce within city limits.
6. Production Goals
6.1. To keep up with demand and eliminate our community housing backlog within ten
years, McCall is committed to providing:
6.1.1. 43 additional low to moderate income homes annually
6.1.2. 22 additional moderate to middle income homes annually
6.1.3. Senior and special needs housing in quantities to be determined
7. Ownership/Rental Mix
7.1. McCall will develop community housing to maintain at least 65 percent owner
occupied housing within the year round resident community.
8. Location/Unit Type
8.1. Community housing requirements for new development will be met within the
geographic boundaries of new development to the extent possible.
8.2. Mixed use projects will be encouraged to incorporate community housing into
commercial and industrial areas.
8.3. Public community housing resources will focus on infill and redevelopment to:
8.3.1. Maintain and enhance existing neighborhoods;
8.3.2. Promote a jobs -housing balance;
8.3.3. Reduce reliance on the automobile; and
8.3.4. Promote smart growth principals and reduce sprawl.
9. Design and Quality
9.1. Community housing is civic architecture and reflects the values of the community.
9.2. Community housing should be designed to fit its context.
9.3. Design within budget is a characteristic of good design; and
WHEREAS, Resolution 05-19 directs staff to develop ordinances to implement the Community
Housing Policy for consideration by the Planning & Zoning Commission and the City Council,
including a Residential Linkage (Community Housing Fee) Ordinance; and
WHEREAS, the best available data indicates that the average price of a home for sale in McCall
currently exceeds $300,000; and
WHEREAS, the best available data indicates that approximately 15% of the families currently
residing in McCall have sufficient income to afford the mortgage payments of a $300,000 home;
and
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WHEREAS, the best available data indicates that the growth of the area as a resort community
will continue to fuel rising housing prices while concurrently increasing the demand for a
workforce that can not afford housing; and
WHEREAS, the development and construction of residential dwelling units create the need for
local employees to service and maintain the dwelling units, and the residents thereof; and
WHEREAS, some form of community housing assistance and requirements are needed to
maintain a local workforce;
NOW, THEREFORE, BE IT ORDAINEFD BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF McCALL, IDHAO THAT:
SECTION 1: Title 3, McCall Zoning Code is hereby by amended by adding Section 3.8.21,
Community Housing Ordinance, to read as follows:
3.8.21 Community Housing Ordinance.
A. Findings
The City Council of the City of McCall finds that:
1. The development or construction of residential dwelling units generates
the demand for employees to maintain and service the new units.
2. A severe shortage of housing affordable to the workforce in the City of
McCall and the surrounding region has been determined by a technical
analysis and documented in the Housing Market and Needs Assessment,
Valley and Adams County, July, 2005.
3. The demand for employees created by the development or construction of
a residential dwelling unit varies based on the size of the dwelling unit as
determined and documented in the Housing Market and Needs
Assessment, Valley and Adams County, July, 2005.
4. Continued residential development that creates the need for community
housing without contributing to the provision of such housing will threaten
the health, safety and general welfare of the community.
5. The development or construction of a residential dwelling unit shall carry
an obligation to provide community housing for fifty (50) percent of the
employees of low or moderate income who are needed to maintain and
service the residential dwelling unit.
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B. Purpose and Intent
These standards:
1 Ensure that new residential development contributes to the provision of
housing that is affordable to the employees who are needed to maintain
and service the residential development.
2. Maintain a supply of housing that is affordable to fifty (50) percent of the
local workforce with low and moderate incomes.
3. Implement the Housing Component of the Comprehensive Plan and
combine with a range of incentives and initiatives to implement
the Housing Policy of the City of McCall.
4. Maintain a balance of local employees and resident population.
B. Applicability
1. These standards shall apply to the development or construction of all
residential dwelling units not exempted in subsection C, Exemptions.
C. Exemptions
The following residential development shall be exempt from the standards of this
Section.
1. The redevelopment, remodeling or relocation of a legally pre-existing
residential unit provided that no new, additional, residential dwelling unit
is created.
2. The expansion up to five hundred (500) square feet of gross floor area of a
legally pre-existing residential dwelling unit.
3. Mobile home.
4. Nursing facility, skilled.
5. Retirement or assisted living home.
6. Foster home, group.
7. Community housing unit.
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D. General Standards
1. A community housing fee shall be paid at the time of application for a
building permit for each residential dwelling unit not exempted in
subsection C, Exemptions, that is proportionate to the demand for
community housing created by the dwelling unit.
a. The community housing fee shall be commensurate with the
current community housing subsidy amount required to develop
and construct community housing for fifty (50) percent of the
employees needed to maintain and service the dwelling unit and
who have incomes in Income Categories I and II. The number of
employees needed to maintain and service the residential unit
varies based on the size of the unit.
b. Income Category I includes employees in households earning more
than fifty (50) percent but not more than eighty (80) percent of the
Valley County median household income. Income Category II
includes employees in households earning more than eighty (80)
percent but not more than one hundred (100) percent of the Valley
County median household income.
c. Table 3.8.21, identifies the number of employees in Income
Categories I and II for which a community housing fee shall be
paid for each new dwelling unit.
TABLE 3.8.21
EMPLOYEES NEEDED TO SUPPORT RESIDENTIAL DEVELOPMENT
Unit Size in Gross Employees Needed by
Square Feet Unit Size
Less than 1,000
1,000 —1,999
2,000 — 2,999
3,000 — 3,999
4,000 — 4,999
5,000 — 5,999
6,000 — 6,999
7,000 — 7,999
8,000 or more
.09
.12
.14
.17
.26
.31
.39
.51
.75
50 Percent Goal
.045
.06
.07
.085
.13
.155
.195
.255
.375
Employees Needed in
Income Categories
I&II
.012
.016
.019
.023
.035
.042
.053
.069
.102
d. In the event of a redevelopment, remodeling or relocation of a
legally pre-existing dwelling unit that results in additional dwelling
unit(s), the standards of this Section shall apply only to the
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additional unit(s) and not to the legally pre-existing unit. In the
dwelling unit that is larger than five hundred (500) square feet of
gross floor area, the standards of this Section shall apply only to
the expansion area in excess of five hundred (500) square feet of
gross floor area.
e. The community housing fee shall be calculated based on the
current subsidy amount required to develop and construct
community housing units in the City of McCall and the average
occupancy load of 1.8 employees per community housing unit.
1) The community housing fee shall be calculated as:
Number of Employees in Income Categories I & II that
corresponds to the unit size from Table 3.8.21 divided by
1.8 occupants per community housing unit multiplied by
the current community housing subsidy amount.
2) The community housing subsidy amount shall be computed
pursuant to the Community Housing Guidelines, as
amended, developed, maintained and administered by the
City of McCall.
3) The community housing subsidy amount shall reflect
current costs for land, materials, labor and all other related
costs necessary to develop and construct community
housing units in the City of McCall and the current median
household income for Valley County.
4) The Community Development Director shall review and
update the community housing subsidy amount on or
before September 30 of each year to reflect current costs
and median income.
5) The Valley County median household income as derived
and annually updated by the U. S. Department of Housing
and Urban Development shall be used to calculate the
subsidy amount.
E. Community Housing Trust Account
1. For the purpose of ensuring that all fees collected pursuant to this Section
are spent for community housing and benefit the fee payers, an interest -
bearing Community Housing Trust Account shall be established.
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2. All fees collected pursuant to this Section shall be deposited immediately
into the Community Housing Trust Account.
3. All proceeds in the Community Housing Trust Account not immediately
necessary for expenditure shall be invested in an interest -bearing account.
All income derived from these investments shall be retained in the trust
account until spent or refunded.
4. All funds deposited into the Community Housing Trust Account and
accrued interest shall be expended only for the purposes of planning,
subsidizing, developing or constructing community housing in the City of
McCall, or refunded pursuant to subsection F, Refund of Fees.
F. Refund of Fees
1. A fee collected pursuant to this Section and three (3) percent interest
compounded annually shall be returned upon written request to the then
present owner of the dwelling unit for which the fee was paid if the fee
has not been spent within five (5) years from the date the fee was paid.
Notwithstanding, if the City Council has earmarked the funds for
expenditure on a specific community housing project, the City Council
may extend the time period for an additional five (5) years.
2. To obtain the refund, the present owner must submit a written request to
the Community Development Director within one (1) year from the end of
the fifth (5th) year from the date payment was received, or within one (1)
year from the end of the time this refund requirement is extended by the
City Council. Said request shall be accompanied by proof of ownership of
the property at the time the refund is requested or contract or option to
purchase at the time the refund is requested and a copy of the receipt
verifying payment of the fee.
3. For the purpose of this Section, fee payments shall be deemed spent in the
order in which they are paid. The first (1st) payment made shall be the
first (1st) payment spent.
4. Any fee for a dwelling unit for which approval to develop or construct
has expired due to non -commencement of construction, shall be refunded
upon written request from the present owner of the property for which the
fee was paid. Said request shall be submitted to the Community
Development Director within three (3) months of the date of the expiration
of approval and be accompanied by proof of ownership of the property
and a copy of the receipt verifying payment of the fee.
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G. Appeal
1. Any applicant for a permit to develop or construct a dwelling unit may
apply to the City Council for a reduction or waiver of the community
housing fee if the applicant possesses the income, asset and other
qualifications of the local workforce for which community housing is
constructed, or believes his/her residential unit does not relate to the
purposes and standards of this Section.
2. The City Council shall establish informational and procedural
requirements necessary to receive, consider and decide upon any appeal.
3. The applicant has the burden of presenting all evidence, records and
information the City Council finds necessary to consider and decide upon
the appeal.
H. Community Housing Guidelines
The City Council shall establish and adopt Community Housing Guidelines that
set out detailed administrative and procedural requirements necessary to
administer this Section.
SECTIION 2: Severabilitv.
In the event that any court of competent jurisdiction enters its judgment or order declaring any
portion of 3.8.21 to be invalid, then such judgment shall only affect that portion of the ordinance
so adjudicated, and all other remaining portions shall remain in full force and effect.
EFFECTIVE DATE:
Regularly passed, approved and adopted by the Mayor and City Council of the City of McCall,
Idaho, this e'Nf'Qf••, e hr ,L& LI , 2006.
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Joai4�ne E. York, Cy Y Clerk
William A. Robertson, Mayor
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A SUMMARY OF ORDINANCE NO. 820
PASSED BY THE CITY OF McCALL, IDAHO
AN ORDINANCE OF THE CITY OF McCALL, IDAHO AMENDING THE CITY OF
McCALL ZONING CODE, TITLE 3 TO REQUIRE A COMMUNITY HOUSING FEE TO BE
PAID FOR EACH NEW RESIDENTIAL DWELLING UNIT.
The principal provisions of Title 3 provides for adding a section 3.8.21 Community
Housing Ordinance, and requires or provides as follows:
• Provides for the following sections:
• Findings by the McCall City Council.
• Purpose and Intent standards.
• Applicability standards.
• Exemptions and what shall be exempt from the standards of the ordinance.
• General Standards, including a Table which identifies the number of employees in
income categories for which a community housing fee shall be paid for each new
dwelling unit.
• Community Housing Trust Account, set up to ensure all fees collected are spent
for community housing and benefit the fee payers, and includes an interest -
bearing account, to allow for immediate deposit, to provide for the retention of
fees and to provide for purposes of funds deposited into the Community Housing
Trust Account.
• Providing for provisions for refunding fees.
• Appeal, to allow permit appeals and includes informational and procedural
requirements.
• Community Housing Guidelines shall be established and adopted by the City
Council.
The Ordinance shall be effective upon publication of this Summary.
The full text of the Ordinance is available for review at City Hall and will be provided by the
City Clerk to any citizen upon personal request. The full text is also available online at
www.mccall.id.us.
APPROVED BY THE COUNCIL OF THE CITY OF McCALL, IDAHO, THIS / tI DAY
OF al ane L 2006.
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Mayor
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Attest: •••flissa..•*••
By:
City Clerk
msgW:\Work \M\McCa11, City of 21684\2006 Ordinances\Sum Ord Comm Housing 02 28 06.doc