City of Norwalk, CT Workforce Housing Regulation

Applicability. The workforce housing regulation shall apply to all multifamily and mixed-use developments in the following zones:

[Amended effective 11-27-2009; effective 1-28-2010; effective 7-27-2012; effective 4-27-2018; effective 6-13-2019]

Central Business District (CBD)

Commercial Planned Residential Development

Executive Office Zone

Business No. 1 Zone

Business No. 2 Zone

D Residence Zones

Golden Hill Village District

Hospital Zone

Industrial Zone No. 1

Light Industrial Zone No. 2

Marine Commercial Zone

Neighborhood Business

Reed-Putnam Design District

Rowayton Avenue Village District

SoNo Station Design District (SSDD)

South Norwalk Business District

Restricted Industrial

Washington Street Design District

Developments of twenty (20) or more dwelling units shall designate a minimum of ten percent (10%) of the total number of units, rounded up to the nearest whole number, as workforce housing units, affordable to households, in accordance with Section 8-30g-8 of the regulations of Connecticut State Agencies; except that developments of twelve (12) or more units in the CBD and SSDD shall designate a minimum of ten percent (10%) of the total number of dwelling units as workforce housing units, provided that:

[Amended effective 4-27-2018; effective 6-13-2019]

Any three-bedroom dwelling unit, designated as a workforce housing unit, complying with § 118-1050C(2) may count each three-bedroom unit as two workforce housing units for purposes of complying with the ten-percent requirement for the zone, provided that the aggregate number of three-bedroom dwelling units in such a development that are counted as two (2) affordable dwelling units shall not exceed the aggregate number of nonaffordable three-bedroom dwelling units in such development and the remaining workforce housing units are proportional to the overall unit mix within the development; and

A minimum of ten percent (10%) of the total number of dwelling units, rounded up to the nearest whole number, shall be affordable to households earning no more than sixty percent (60%) of the state median income; or

A minimum of ten percent (10%) of the total number of dwelling units, rounded up to the nearest whole number, shall be affordable to households earning no more than eighty percent (80%) of the state median income. In addition, a one-percent fee, based on residential construction cost, shall be paid to the City of Norwalk and placed into a fund to be used to construct affordable housing for individuals of lower income levels or families whose annual income does not exceed 60% of the state median income. Developments that utilize this provision are not required to provide more than one parking space per dwelling unit and may reduce recreation space to 100 square feet per unit.

The workforce housing units shall be offered for sale or rent to workforce households, or to a municipal agency or a nonprofit housing agency, who shall offer the workforce housing units to workforce households, in accordance with the following priority designations:

[Amended effective 2-26-2016]

Existing tenants displaced by the proposed new development or the immediate past tenants that previously occupied any of the properties where existing housing units are to be removed.

Employees of the City of Norwalk and the Norwalk Board of Education; residents of the City of Norwalk who have resided in the City of Norwalk a minimum of one (1) year prior to the issuance of a certificate of occupancy; and persons employed in the City of Norwalk.

All others.

(4)

The annual income of workforce households shall be reviewed and certified by the Commission, or its designee, in accordance with a procedure established in advance and approved by the Commission.

(5)

The Commission, or its designee, shall maintain a list of eligible workforce households in each category. Applicants shall be selected by lottery, conducted in accordance with a procedure established in advance of said lottery and approved by the Commission.

(6)

The Commission, or its designee, shall exhaust all qualified applicants in a given category of priority before proceeding to a lower category of priority.

(7)

The selected workforce household shall reside in the designated workforce housing unit.

(8)

Workforce housing units for sale shall not exceed the maximum purchase price as calculated in accordance with the maximum housing payment calculations in set-aside developments as per Section 8-30g-8 of the regulations of Connecticut State Agencies, as adjusted for family size.

(9)

Workforce housing units for rent shall not exceed the maximum monthly rent as calculated in accordance with the maximum housing payment calculations in set-aside developments as per Section 8-30g-8 of the regulations of Connecticut State Agencies, as adjusted for family size. However, within the CBD and SSDD, should household earning increase after initial tenancy, such unit shall be considered to be in compliance with the provisions of this regulation, provided that eligible household income does not exceed eighty percent (80%) of state median income.

[Amended effective 4-27-2018; effective 6-13-2019]

Bonus provisions.

Where the workforce housing units are located in one of the zones listed below and constructed on the same site and as an integral part of a new market rate development, the Commission shall allow an increase in the permitted number of dwellings (density) by not more than twenty percent (20%), provided that such bonus units shall comply with the bonus unit criteria shown below:

[Amended effective 4-27-2018; effective 6-13-2019]

Central Business District.

South Norwalk Business District.

Washington Street Design District.

(d)

Reed Putnam Design District.

Density Bonus Provisions	Maximum Household Income Criteria	Ratio of Bonus Market Rate Units to Bonus Workforce Units
Up to additional	60% of state median income	2 market rate: 1 workforce unit
20% bonus density	80% of state median income	1.5 market rate: 1 workforce unit

Once the above criteria is met, the Commission shall allow an increase in the permitted number of dwellings (density) by an additional ten percent (10%), up to a maximum of thirty percent (30%), provided that the bonus units may comply with the bonus unit criteria shown below:

Density Bonus Provisions	Maximum Household Income Criteria	Ratio of Bonus Market Rate Units to Bonus Workforce Units
Additional 10%	100% of state median income	1 market rate: 1 workforce unit

In developments where such bonus units are proposed, the Commission shall modify the yard, building area and floor area ratio requirements of the zone in which the property is located, up to a maximum of ten percent (10%) and, permit one (1) additional story, solely where the applicant has demonstrated and the Commission determines that such modifications will not adversely affect adjacent properties or the public health, safety and welfare.

Additional standards.

Workforce housing affordability plan: Workforce housing units shall be reasonably dispersed throughout the development and shall contain, on average, the same number of bedrooms and the same quality of construction as the other units in the development, as detailed in an affordability plan submitted by the applicant. Such plan may allow for equity sharing. For properties located in the CBD or SSDD, the plan should include a reference to the one-percent fee, based on residential construction cost, that is paid to the City of Norwalk, and placed into a fund to be used exclusively for the construction or rehabilitation of affordable housing for individuals of lower income levels or families whose annual income does not exceed sixty percent (60%) SMI.

[Amended effective 6-13-2019]

Workforce housing units shall be developed simultaneously with or prior to the development of the other units.

Workforce housing deed restrictions: In order to maintain workforce housing units as affordable in perpetuity for workforce households, the following restrictions shall apply:

Workforce housing units for sale shall be restricted by title to require that, in the event of any resale by the owner or any successor, the resale price shall not exceed the then maximum sales price for said workforce housing unit, as determined in accordance with Subsection C(8) above or the sum of the original purchase price and the cost of any documented fixed improvements made by the owner, whichever is greater.

Workforce housing units for rent shall be restricted by title to require that the rents for said units shall not exceed the maximum rent as determined in accordance with Subsection C(9) above.

(4)

Where these regulations result in a fraction, the result shall be rounded up to the nearest whole number.

Location of workforce units.

[Amended effective 2-27-2015]

Workforce housing units shall be built on the same site as the proposed development, as provided herein.

Fee-in-lieu payment.

Alternative method of compliance: Pursuant to an application for a special exception, the Commission shall allow an alternative method of satisfying the workforce housing requirement, including the payment of an appropriate in-lieu housing fee.

The workforce housing unit requirement may be satisfied, in whole or in part, through the payment of a fee-in-lieu cash contribution to a City of Norwalk fund, or other Commission approved nonprofit or for-profit organization dedicated to affordable housing initiatives. Off-site workforce housing units created with such funds shall be maintained as affordable in perpetuity and in the same manner as on-site workforce housing units. The cash contribution to be provided shall be calculated based on the applicable State of Connecticut median income, as periodically revised, and on the unit (bedroom) size as described in the affordability plan, and on the following criteria:

Units affordable to households earning sixty percent (60%) of the applicable median income shall require a cash contribution not less than three hundred seventy percent (370%) of the state median income.

Units affordable to households earning eighty percent (80%) of the applicable median income shall require a cash contribution not less than two hundred seventy percent (270%) of the state median income.

Units affordable to households earning one hundred percent (100%) of the applicable median income shall require a cash contribution not less than two hundred twenty percent (220%) of the state median income.

	Sample 2006 Cash Contribution For a Workforce Housing Unit:
	Units for households at 60% of state median income:
		$81,000 X 370% = $299,700
	Units for households at 80% of state median income:
		$81,000 X 270% = $218,700
	Units for households at 100% of state median income:
		$81,000 X 220% = $178,200

Where the contribution is targeted to assist an identified off-site project providing affordable workforce housing, the Commission shall condition the issuance of certificates of occupancy for the development project with the completion of the off-site workforce housing units and/or establish other reasonable performance conditions necessary to insure that the off-site workforce housing units will be built in a timely manner.

(4)

The in-lieu fee shall be paid according to the following schedule:

Twenty-five percent (25%) prior to the issuance of a building permit.

Twenty-five percent (25%) prior to the renting or sale of twenty-five percent (25%) of the dwellings.