HomeMy Public PortalAboutOrd. 819 - All New Subdivisions to Include Affordable HousingORDINANCE NO. 819
AN ORDINANCE OF THE CITY OF McCALL, IDAHO AMENDING THE CITY OF
McCALL SUBDIVISION AND DEVELOPMENT REGULATIONS CODE, TITLE 9
TO REQUIRE ALL NEW SUBDIVISIONS TO INCLUDE A CERTAIN NUMBER OF
COMMUNITY HOUSING UNITS TO BE AFFORDABLE TO THE CITY'S
WORKFORCE, PROVIDE FOR A SEVERABILITY CLAUSE AND PROVIDE 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
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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
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
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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 an Inclusionary Housing Ordinance; and
WHEREAS, 24% of the City's households have incomes between 100% and 160% of the
area median income, and these households can no longer afford housing in McCall; 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 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 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
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 ORDAINED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF McCALL, IDAHO THAT:
SECTION 1: Title 9, McCall Zoning Code is hereby by amended by adding Section
9.7.10, Inclusionary Housing, to read as follows:
9.7.10 INCLUSIONARY HOUSING
A Twenty (20) percent of the lots and houses in all subdivisions, including
condominium subdivisions, approved and platted after the adoption date of this
Section shall be permanently restricted as community housing to be affordable to
City of McCall households with incomes in categories III and IV as defined in
subsection 2, Community Housing by Income, below.
1. Options for Providing Community Housing
An applicant for subdivision approval may propose and the City Council
may approve, pursuant to the priorities and criteria established below, any
of four (4) options, or combination thereof, to provide Community
Housing that is required by this Section.
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a. First priority is for the applicant to build community housing on
the site of the subdivision.
b. Second priority is for the applicant to build community housing off
site of the subdivision.
c. Third priority is for the applicant to convey land for community
housing.
d. Fourth priority is for the applicant to pay a fee -in -lieu for
community housing.
2. Community Housing by Income Category
Fifty (50) percent of the required community housing lots and/or housing
units shall be affordable to households in each of the two (2) income
categories below.
a. Category III includes households earning more than one hundred
(100) percent but not more than one hundred twenty (120) percent
of the Valley County median household income.
b. Category IV includes households earning more than one hundred
twenty (120) percent but not more than one hundred sixty (160)
percent of the Valley County median household income.
c. The median household income for Valley County is derived and
annually updated by the U. S. Department of Housing and Urban
Development.
3. On Site Community Housing
Community housing units shall be constructed on the site of the
subdivision in such a manner as to create an integrated subdivision unless
the City Council finds the provision of on -site community housing is
impractical by making one (1) or more of the following findings.
a. The Inclusionary Housing Plan proposed by the applicant includes
constructing on -site community housing, constructing off -site
community housing, and/or land conveyance and this plan is found
by City Council to be in conformance with the City of McCall
Comprehensive Plan and Housing Policy.
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b. The community housing units are subject to federal and/or state
financial assistance and the on -site location cannot comply with
the terms and conditions of the financial assistance.
c. The number of required community housing units results in less
than one (1) housing unit.
d. The community housing units located on -site would be
incompatible with the surrounding lands because of conflicting
uses, site plan design or bulk.
4. Off Site Community Housing
If the City Council finds that constructing some or all of the required on -
site community housing is impractical, community housing shall be
constructed off -site from the subdivision unless the City Council
determines that land conveyance better achieves community housing
goals. The proposed off -site location shall be suitable for community
housing by complying with all of the following standards.
a. Development of community housing at the "off -site" location will
comply with the goals of the City of McCall Housing Policy.
b. The community housing units can be designed and built in a way
that is compatible with surrounding land uses.
c. Community housing at the "off -site" location will comply with
applicable Zoning and Subdivision Code requirements.
d. The density permitted on the subdivision site may be devoted fully
to free-market lots and the off -site community housing units shall
be included in the total number of subdivision lots when
calculating the community housing requirement.
e. The number of community housing units constructed off -site shall
be provided in an amount equal to:
a. 125 percent of the amount which would have been required had
it been provided on -site if the off -site housing is within the city
limits of the City of McCall. If only a portion of the required
Community Housing is off -site, only that portion shall be
subject to the 125% factor.
b. 150 percent of the amount which would have been required had
it been provided on -site if the off -site housing is within the city
limits of another municipality located in Valley or Adams
County. If only a portion of the required Community Housing
is off -site, only that portion shall be subject to the 150% factor.
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c. 200 percent of the amount which would have been required had
it been provided on -site if the off -site housing is within
unincorporated Valley or Adams County. If only a portion of
the required Community Housing is off -site, only that portion
shall be subject to the 200% factor.
5. Land Conveyance
If the City Council finds it is impractical to construct on -site community
housing and determines a land conveyance for community housing better
serves the City's community housing goals than the construction of off -
site community housing, the conveyance of land for community housing
may be accepted pursuant to the following standards.
a. The land shall provide for community housing in appropriate
locations by complying with the following.
1) Community housing on the land shall comply with the
goals of the City of McCall Housing Policy.
2) The land shall be near existing or planned employment
centers, schools and commercial services.
3) Housing on the site shall comply with applicable Zoning
and Subdivision Code requirements.
4) Notwithstanding this subsection, the Council may accept
land that does not meet these criteria if the sale of the land
is anticipated pursuant to subsection e, below.
b. The fair market value of the land shall equal the total subsidy
amount for the number of required community housing units as
calculated in Section 9.7.10.A.4.e as the subsidy amount is
calculated by the City Community Development Director pursuant
to the Community Housing Guidelines, as amended.
1) A professional real estate appraiser licensed to practice in
Idaho shall establish the fair market value of the land to be
conveyed.
2) Fair market value shall be established on a preliminary
basis at the time the Inclusionary Housing Plan (subsection
9.0 below) is reviewed.
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3) Fair market value shall be confirmed at the time of review
and approval of the final subdivision plat for the free
market portion of the subdivision.
4) Fair market value shall be net of any customary real estate
commissions for the sale of the land.
c. The land conveyance shall occur prior to the City signing the final
plat verifying subdivision approval, unless the City Council
approves other arrangements with financial assurances.
d. The land conveyed shall be used for the development of
community housing units or conveyed pursuant to subsection e,
below.
e. The City Council is permitted to sell land conveyed for community
housing if:
1) All proceeds from the sale of the land are placed in the
Community Housing Trust Account (subsection 11.0
below); and,
2) The proceeds from the sale of the land and any interest
accrued thereon are used only for subsidizing or
constructing community housing within a reasonable period
of time.
6. In Lieu Fee
The City Council shall accept an in lieu fee for any fraction of a required
community housing unit. The feeshall be calculated and collected
pursuant to the following standards.
a. The fee shall be calculated by averaging the subsidy amounts for
providing a community housing unit in each of the two (2) Income
Categories III and IV. The fee amount shall be proportionate to
the fraction of the community housing unit required. The subsidy
amounts for each Income Category shall be calculated by the
Community Development Director pursuant to the Community
Housing Guidelines, as amended.
b. Prior to September 30, 2006, and on or before September 30 of
each following year, the subsidy amount used in the in lieu fee
calculation shall be evaluated by the Community Development
Director, and if necessary, adjusted to reflect current land and
construction costs and the current median income.
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c. The in lieu fee shall be paid prior to the City signing the final plat
verifying subdivision approval, unless the City Council approves
other arrangements with financial assurances. In lieu fees shall be
deposited into a separate account pursuant to subsection 11,
Community Housing Trust Account.
7. Deed Restrictions
The lots and houses for community housing shall be permanently deed
restricted as to the initial and resale price, minimum size and construction
standards, and qualifications of buyers and renters, pursuant to the
Community Housing Guidelines, as amended. Provided however, if within
nine (9) months after a community housing unit is first available for sale
there are no qualified purchasers of the unit, the City Council shall, upon
request of the developer, remove the community housing deed restrictions
and the unit may be sold by the developer at a market price.
As an alternative to permanent deed restriction, an applicant may request
that up to twenty five (25) percent of the lots and houses be subject to an
"Equity -Builder" program pursuant to the Community Housing
Guidelines.
8. Timing of Occupancy
All community housing units shall be ready for occupancy, or their
construction costs bonded and a specific timeline approved by the
City Council, no later than the date of the initial occupancy of the
free-market portion of the residential subdivision for which the
community housing is required. If the subdivision is approved for
phased development, the community housing units may be
constructed, or bonded with an approved timeline, in proportion to
the phases of the subdivision.
9. Inclusionary Housing Plan
An applicant for subdivision approval shall submit an Inclusionary
Housing Plan concurrently with the initial application submittal for the
subdivision. The Inclusionary Housing Plan shall be prepared and
reviewed pursuant to the following standards.
a. The Inclusionary Housing Plan shall include the following:
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1) The calculation of the number of community housing units
required.
2) The proposed method of providing community housing
(on -site, off -site, conveyance of land and/or payment of an
in lieu fee) and the appropriate justification.
3) If community housing units are to be constructed, the Plan
shall include:
(a) A conceptual site plan and building floor plan
illustrating the number of community housing units
proposed their location in relation to the other
development on the site and surrounding land uses,
and the number and size of bedrooms and square
footage of each unit.
(b) A tabular summary of the number of community
housing units, the number and size of bedrooms of
each unit, the rental/sale mix, and the sales price or
rent for each unit.
(c) The proposed restrictions to be placed on the
community housing units to ensure they remain
affordable and comply with the Community
Housing Guidelines, as amended.
4) If payment of an in lieu fee is proposed, the Plan shall
include the amount of the fee to be paid and the supporting
calculations.
5) If land is to be conveyed, the Plan shall include:
(a) A survey depicting the location, size and
topography of the land proposed for conveyance.
(b) A title report demonstrating clear title, physical and
legal access, liens, easements, and other information
necessary to fully describe the legal status of the
property.
(c) Verification that conditions of the land, any
restrictions on title to the land (such as covenants
and easements) and the applicable Land Use Codes
allow the development of residential units on the
land, and that the site generally can be developed
for community housing.
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(d) An appraisal of the fair market value of the land.
(e) Any additional information or studies determined
by the Community Development Director to be
necessary to verify the suitability of the land for
development.
6) Community Housing Agreement
The agreement by a developer to implement the Plan shall
be established in a Community Housing Agreement. The
Agreement shall be in a form approved by the City
Attorney and shall include the following:
(a) If the Plan proposes the construction of community
housing units, the Agreement shall identify: the
location, number, type and size of community
housing units to be constructed; sales and/or rental
terms; occupancy requirements; a timetable for
completion of the units; construction specifications;
and the restrictions to be placed on the units to
ensure their permanent affordability and compliance
with the Community Housing Guidelines, as
amended.
(b) If the Plan proposes the conveyance of land, the
Agreement shall identify the land to be conveyed,
its fair market value, and the time at which the land
will be conveyed to the City.
(c) If the Plan proposes the payment of an in lieu fee,
the Agreement shall identify the amount of the fee
to be paid, and the time of payment.
(d) If the Plan proposes a combination of methods
(construction of units, conveyance of land, or in lieu
fee), the Agreement shall identify the appropriate
provisions for each method of mitigation.
b. Review of the Inclusionary Housing Plan
1) The procedures for review of the Inclusionary Housing
Plan shall be the same as for the subdivision application
with which it is submitted.
2) The Plan shall be approved, approved with conditions, or
disapproved by the Planning & Zoning Commission and
the City Council, based on the standards of this Section. A
decision on the Plan shall be made prior to a decision on
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the residential subdivision with which it is submitted. A
subdivision plat shall not be approved without an
Inclusionary Housing Plan approved pursuant to the
procedures and standards of this Section.
3) An approved Inclusionary Housing Plan may be amended
or modified only in accordance with the procedures and
standards established for its original approval.
10. Community Housing Guidelines
The construction and occupancy of all community housing units shall
comply with the Community Housing Guidelines, as amended from time
to time by the City Council. If any conflict should arise between the
Community Housing Guidelines and this Ordinance, the provisions
contained in this Ordinance shall control.
a. All community housing units constructed pursuant to this Section
shall comply with the sales and/or rental terms, appreciation rates,
housing type, and occupancy requirements of the Community
Housing Guidelines, as amended.
b. All community housing units shall comply with the size, materials
and design requirements and construction standards of the
Community Housing Guidelines, as amended.
c. All community housing units shall comply with all other
requirements of the Community Housing Guidelines, as amended,
to ensure they are maintained, occupied and owned/rented as
community housing units.
11. Community Housing Trust Account
a. For the purpose of ensuring that any fees collected pursuant
to this section are spent for community housing and consequently
benefit the fee payers, an interest -bearing Community Housing
Trust Account shall be established.
b. All fees collected pursuant to this section shall be immediately
deposited into the Community Housing Trust Account.
c. 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.
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d. All funds deposited into the Community Housing Trust Account
and accrued interest shall be expended only for the purposes of
planning, subsidizing or developing community housing units in
McCall.
12. Refund of In Lieu Fee
a. A fee collected pursuant to this section and three (3) percent
interest compounded annually, shall be returned upon written
request, to the developer of the subdivision for which a fee was
paid if the fee has not been obligated 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 Council may extend the time period by up to
five (5) additional years.
b. To obtain the refund, the developer 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.
c. 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.
13. Adjustments
a. The requirements of this section 9.7.10 may be adjusted or waived
by the City Council if the developer demonstrates and the Council
finds that there is no reasonable relationship between the housing
impact of the proposed residential subdivision and the
requirements of this section.
b. The developer shall have the burden of providing economic
information or other data and evidence necessary to establish that
the housing impact of the proposed residential subdivision has no
reasonable relationship to the requirements of this chapter.
c. The developer must make said demonstration concurrently with the
first submittal of an application for the residential subdivision.
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d. The City Council shall make the determination to adjust or
maintain the requirements of this section concurrently with the
initial decision to approve or deny the proposed residential
subdivision.
SECTION 2 Severability.
In the event that any court of competent jurisdiction enters its judgment or order
declaring any portion of Section 9.7.10 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, IdOtritiirq%4 day of re,,cv,.Qru , 2006.
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A SUMMARY OF ORDINANCE NO. 819
PASSED BY THE CITY OF McCALL, IDAHO
AN ORDINANCE OF THE CITY OF McCALL, IDAHO AMENDING THE CITY OF
McCALL SUBDIVISION AND DEVELOPMENT CODE, TITLE 9 TO REQUIRE ALL NEW
SUBDIVISIONS TO INCLUDE A CERTAIN NUMBER OF COMMUNITY HOUSING
UNITS TO BE AFFORDABLE TO THE CITY'S WORKFORCE.
The principal provisions of Title 9 by adding Section 9.7.10, Inclusionary Housing,
requires as follows:
• Provides for Inclusionary Housing, which provides for at least twenty percent of
the housing to be affordable community housing and provides options for
providing the community housing.
• Provides for Community Housing by Income Category, which requires that a
minimum of twelve (12) percent of the community housing lots and/or housing
units to be affordable.
• Provides for a Community Housing On Site section.
• Provides for a Community Housing Off Site section.
• Provides for a Land Conveyance section.
• Provides for a Fee In Lieu section, which provides that a fee shall be calculated
and collected according to certain standards.
• Provides for a Deed Restriction section and includes a provision for a nine (9)
month period if within this time period there are no qualified buyers of the unit
that the City Council may remove the community housing deed restrictions.
• Provides for a Timing of Occupancy section.
• Provides for an Inclusionary Housing Plan that provides for calculation of the
number of housing units required and review of the inclusionary housing plan.
• Provides for a Community Housing Guidelines section.
• Provides for a Community Housing Trust Account section to ensure the fees
collected benefit the fee payers; that the fees are deposited into the trust account,
and to allow for an interest -bearing account and for accrued interest.
• Provides for a Refund of In Lieu Fee section.
• Provides for an Adjustments section.
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 q th DAY
OF rY1 aft e h , 2006:
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cEAL
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Attest:
By:
City Clerk
•
msgW:\Work\M\McCa11, City of 21684\2006 Ordinances \Sum Ord Inclusionary Housing Title 9 Subdiv & Devlpint Code 03 01 06.doc