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Discuss Affordable Housing Goals for Rental Housing Development. (Reissued from June 19, 2019)
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Staff: |
Department: |
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Loryn Clark, Executive Director |
Housing and Community |
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Sarah Osmer Viñas, Assistant Director |
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Nate Broman-Fulks, Affordable Housing Manager |
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Emily Holt, Affordable Housing Development Officer |
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Overview: The Town Council has expressed interest in developing an equitable and predictable formula and procedure for determining payments-in-lieu for rental housing development. This item:
1. Provides an overview of the Town’s historical approach to negotiating affordable housing contributions for rental housing; and,
2. Reviews benchmarking research and findings; and,
3. Proposes a framework of guiding principles and goals for affordable housing in new rental housing development going forward. The establishment of these goals could then be used as a guide to inform the development of payment-in-lieu formula options for Council consideration.
We anticipate returning to the Council in the fall of 2019 with formula options.
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Recommendation(s): |
That the Council review and provide direction on the intended affordable housing goals for new rental housing development.
Background:
• The Affordable Housing Policy <http://www.townofchapelhill.org/home/showdocument?id=24578> adopted by the Council originally in 2000 and amended in 2009 states:
“It is the expectation of the Council that applicants seeking approval of rezoning applications containing a residential component will incorporate a “15% affordable” feature into their plans, and that mechanisms will be proposed to assure ongoing affordability of these so-designated dwelling units. At its discretion, the Council may accept a payment-in-lieu of all or part of the affordable housing obligation. The payment amount shall be established by Resolution.”
This policy is applicable in cases where a rezoning is requested to increase residential density above what is allowed under the existing zoning for the property.
• To date, the Council has negotiated affordable housing in rental housing development in a variety of ways and for a variety of payment-in-lieu amounts. The Council has expressed an interest in establishing a consistent, predictable formula to serve as a guide for future negotiations.
• In February of 2018, the Town Council evaluated several payment-in-lieu formulas, including one recommended by the Housing Advisory Board. At that meeting, the Town Council expressed a desire to establish goals for the payment-in-lieu formula before approving a formula.
• Since the last Council discussion, staff researched the goals/guiding principles established by other municipalities and solicited input from market-rate and affordable housing developers, and the Affordable Housing Coalition.
• The Housing Advisory Board (HAB) reviewed the research findings and input, and discussed potential goals over several meetings. This process resulted in the HAB’s recommended Guiding Principles for Considering Affordable Housing in New Rental Housing Development (attached).
• Alternatives to providing affordable housing units onsite are intended to be agreed to by a property owner/applicant and the Town when an application is submitted for rezoning. The alternatives to on-site affordable units are offered by a property owner/applicant in conjunction with the rezoning and any other needed development approval.
Next Steps:
• Based on feedback from the Council, we will continue to evaluate options for establishing a payment-in-lieu formula.
• We would return to the Council in the fall with options and a recommendation for consideration.
Fiscal Impact/Resources: Payments-in-lieu and affordable housing contributions generate funding for the Town’s Affordable Housing Fund.
Council Goals:
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Create a Place for Everyone |
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Develop Good Places, New Spaces |
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Support Community Prosperity |
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Nurture Our Community |
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Facilitate Getting Around |
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Grow Town and Gown Collaboration |
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Attachments: |
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• Draft Staff Presentation |
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• Housing Advisory Board Recommendation |
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• Research Overview |
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
PRESENTER: Sarah Osmer Viñas, Assistant Director, Office for Housing and Community
Nate Broman-Fulks, Affordable Housing Manager
RECOMMENDATION: That the Council review and discuss the intended affordable housing goals in new rental housing development.