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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 2 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 3 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. 4 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. 5 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. 6 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. 7 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. 8 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: 9 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. 10 (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 11 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. 12 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. 13 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. ,�. rEAi' Oro � MY :V® d (seal) o• '• ® p ,�, •. ab4 9411i, bbuwei' ATTEST: Cititlerk Mayor 14 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: SSSSSSSS 44%$_ ` c,CALL f04 cEAL * 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