Inclusionary zoning (IZ) is a voluntary program through which
a certain percentage of dwelling units in residential developments
are made available to income eligible families. To encourage IZ in
developments, developers could receive non-monetary compensation in
the form of density bonuses, zoning variations and/or City funds such
as tax increment financing (TIF) funds (where the development is located
within a TIF district and eligible) upon meeting criteria outlined
in this Ordinance. It is the intent of this program to expand the
supply of inclusionary dwelling units while dispersing them throughout
the City, to broaden opportunity and foster mixed-income communities.
The goal of the IZ program is to further the availability of
a full range of housing choices for families of all income levels
in all areas of the City. IZ is intended to meet the City's goal of
creating a diversity of high-quality housing in appropriate locations
throughout the City that supports a variety of lifestyles and invigorates
community character. Though the City currently meets the state requirements
for affordable housing, it is important to establish a mechanism to
encourage the creation of new housing units affordable to income-eligible
families. Many workers cannot afford to live where they work; further
constraining their financial situation by adding higher transportation
costs. In addition, several people with limited or fixed incomes cannot
afford market-rate housing. The availability of inclusionary dwelling
units (IDU) will allow them to remain a part of this community. Without
intervention, the trend of increasing housing prices might result
in an inadequate supply of IDU for City residents and local employees,
which in turn will have a negative impact upon the ability of local
employers to maintain an adequate local work force and will otherwise
be detrimental to the public health, safety, and welfare of the City
and its residents.
This article details the importance of inclusionary housing
and provides the design and development criteria. Inclusionary zoning
is important for the City for the following reasons:
A.
It allows the City to provide safe and decent housing to all members
of the community.
B.
It fosters mixed income communities, which allow low income, retired
and disabled people to remain productive members of the community.
C.
Inclusionary housing allows for the City to maintain a high daytime
and evening population by providing both the jobs and the housing.
This section details the requirements for inclusionary dwelling
units (IDU) and outlines the possible incentives for developments
providing these units. Each residential development that incorporates
IDU must be developed as a planned unit development (PUD) and meet
all the standards and requirements detailed in Section 4-500, Planned
unit development standards. Because this is a voluntary program, design
criteria for the development will be approved through the PUD process.
A.
Developments eligible for incentives. The incentives provided by
this article shall only be available to developments that result in
or contain at least 10 IDUs and meet the general requirements listed
in Section 6-200B. The units may be owner-occupied, rental or other
residential occupancy. The types of development that are covered under
the provisions of this article include:
1.
New residential construction or new mixed-use construction with
a residential component;
2.
Renovation or reconstruction of an existing multifamily residential
development that increases the number of residential units from the
number of units originally present;
3.
Change in the use of an existing building from nonresidential
to residential use;
4.
Conversion of rental property to condominium property.
B.
General requirements. To receive development incentives, eligible
developments providing IDUs must meet the following general requirements:
1.
Total number of IDUs in a project. At least 10% of the total
number of units proposed and no more than 30% of the total number
of units proposed for a project shall be IDUs. Anything less than
10% would not allow for a good mix and location placement of the units
throughout the development. More than 30% IDUs are not permitted,
so as to avoid an exclusive low-income project. The 30% maximum may
be exceeded if a transfer of development rights (TDR) agreement has
been presented to the City.
Although the intent of this program is to make IDUs dispersed
within developments throughout the City that seek to incorporate them,
in certain instances it may be beneficial to cluster IDUs, such as
around a mass-transit stop, near employment centers such as business
parks, etc. In such cases, a TDR agreement for the subject property
allowing a higher than 30% IDUs may be permissible. The TDR would
have to be approved through the PUD process.
If the number of units calculation results in a fraction, a
fraction of greater than 0.5 shall be rounded up, whereas a fraction
of 0.5 or less than 0.5 shall be rounded down.
2.
IDUs shall be allocated to purchasers at or below 60% of the
area median income (AMI) for rental or other residential occupancy
and 80% of the area median income for owner-occupied inclusionary
dwelling units.
3.
IDUs shall be dispersed throughout the development. The proportion
of various dwelling unit types shall be similar for market-rate and
inclusionary dwellings. The IDUs shall be provided on similar schedules
as market-rate dwelling units.
4.
The period of affordability for all IDUs shall be no less than
50 years, and shall be documented by a recorded deed restriction,
ground lease, or land use restriction agreement. The period of affordability
begins on the date the certificate of occupancy is issued.
5.
Developers are encouraged to incorporate "green" design and
construction practices into the development. Meeting this criteria
will ensure that not only the initial purchase of the dwelling unit
is affordable, but the maintenance is affordable as well. A green
building, also known as a sustainable building, is a structure that
is designed, built, renovated, operated, or reused in an ecological
and resource-efficient manner and designed to meet certain objectives
such as protecting occupant health; improving productivity; using
energy, water, and other resources more efficiently; and reducing
the overall impact to the environment. Projects are encouraged to
utilize technologies such as passive and active solar design, gray
water systems, green rooftop, daylighting, etc. and are encouraged
to be LEED certifiable.
6.
Developers shall demonstrate acquisition of or attempted acquisition
of federal or state funds available for affordable housing or "green"
building. federal and state funds are available from several sources
for affordable housing projects. In addition, "green" buildings are
also eligible for funding. The developer shall provide proof of funds
received or applications for funds requested.
The City's inclusionary zoning program offers the following
incentives for developments that meet the criteria outlined in Section
6-200 above: density bonus, zoning variations and financial assistance
in the form of TIF funds.
A.
Density bonus. Density bonuses for providing IDUs shall be provided
based on the criteria listed below:
|
TABLE 6-300A - DENSITY BONUS
| ||
|---|---|---|
|
Criteria
|
Meets
|
Eligible Bonus
|
|
Minimum 10% of total development proposed as IDU
|
Yes/No
|
If yes, eligible for 20% bonus units (of total original proposed
units)
|
|
Minimum 20% of total development proposed as IDU
|
Yes/No
|
If yes, eligible for 30% bonus units (of total original proposed
units)
|
|
Minimum 30% of total development proposed as IDU
|
Yes/No
|
If yes, eligible for 35% bonus units (of total original proposed
units)
|
|
Incorporation of "green" techniques
|
Yes/No
|
A maximum of 3%, 5%, 10% or 15% additional bonus units are possible
for meeting the requirement to obtain LEED: certified, silver, gold
or platinum status. The applicant shall submit proof that the project
has been registered with the Green Building Certification Institute
(GBCI) for intent to certify. Prior to final occupancy, the applicant
must provide proof that the certification has been obtained. No occupancy
shall be granted for units that are beyond the possible bonus for
the type of certification.
[Amended by Ord. No. 6543] |
|
Example:
|
1.
Development proposing 75 single-family lots on 25 acres at a
gross density of three D.U./ac.
A total of eight units (10%) are proposed as IDU
Development is eligible for a density bonus of 20% of original
lots = 15
Total number of lots would be 90 lots; gross density of approximately
3.6 D.U./acre
2.
Development proposing 75 single-family lots on 25 acres at a
gross density of three D.U./ac
A total of 15 units (20%) are proposed as IDU
Since the project is LEED Gold Certified, the development is
eligible for a total density bonus of 40% (30% + 10%) of original
lots = 30
Total number of lots would be 105; gross density of approximately
4.2 D.U./acre
3.
A multi-story condominium development proposing 170 units on
12 acres at a gross density of 14 D.U./ac
A total of 17 units (10%) are proposed as IDUs
Development is eligible for a density bonus of 20% of the original
number of units = 34 units
Total number of units would be 204; gross density of approximately
17 D.U./acre
B.
Zoning variations. By granting density bonuses for development providing
IDU, certain variations from development standards, such as smaller
lot sizes, higher lot coverage and reduced side yard setbacks may
be required, all of which can be requested as zoning variations through
the PUD process for an IDU project:
1.
Lot area: To accommodate the increased density, a variation
from the minimum lot area requirement for the zoning district in which
the development is located may be necessary. However, IDUs will not
be exclusively sited on substandard lots. All lots shall be of similar
square footage with IDU lots no more than 10% smaller than the average
lot size within the development.
2.
Lot width: A reduction in the minimum lot width may be necessary
as a result of reduced lot area. Lot widths shall be sufficient to
accommodate all proposed residential product types.
3.
Yard setbacks: A variation from the required yard setbacks may
be necessary to accommodate the proposed product type on a smaller
lot.
4.
Lot coverage: Due to the smaller lot size, a variation from
the maximum allowable lot coverage may be necessary.
C.
TIF assistance funds. Tax increment financing (TIF) funds can be
available for eligible projects located within the City's currently
adopted or any future TIF districts. The City has currently four adopted
TIF districts: Downtown, Vulcan Lakes, Crystal Lake and Main Streets
and Virginia Street Corridor. Each TIF district has been established
for specific reasons with TIF eligible expenses designated for construction,
utility extension, streetscape improvements, professional design work
expenses, etc. The City Council, as part of the overall consideration
of the project will evaluate the eligibility of obtaining TIF funds
for a specific development.
Since the program is voluntary, an independent housing authority
to administer this program will not be established. The Zoning Administrator
(or his/her appointed designee) shall monitor IZ projects for compliance
with the regulations established in this Ordinance. The City will
review the Covenants, Conditions and Restrictions, any deed restriction
documents and IDU Plan to ensure the IDUs are created fairly, effectively
and meet the intent of this article.
Developers and City staff shall work with housing agencies throughout
the county and state to make IZ projects known. Allocation of IDU
shall be on a first-come-first-served basis. If demand exceeds availability,
then, units shall be made available to existing City residents first,
people who work within the City limits next, and then to other applicants,
with a preference given to senior individuals. Preference shall be
given to applicants with lower area median income.
IZ projects are required to be developed as planned unit developments.
In addition to the requirements for a planned unit development approval,
the IDU plan shall contain the following information:
A.
Narrative description of the project.
1.
Location of the project.
2.
Type of units, whether single-family detached, multifamily,
rental, owner-occupied, or other residential occupancy.
3.
AMI calculation and price range of market-rate residential units
and price range of IDU.
4.
Density bonus and IDU calculations.
5.
Justification for zoning variations.
C.
Housing packet.
1.
Residential product information, including the house models,
all floor plans, elevations and options.
2.
Site plan showing distribution pattern for the IDU, or building
floor plan designating IDU units in an apartment or condominium building.
3.
A phasing plan and construction schedule, where applicable.
D.
Federal or state funding applications and awards.
1.
Application forms, narrative description of programs, proof
of monies dispersed, etc.
E.
Transfer of development rights agreement.
1.
If additional units are proposed for a subject property through
a TDR agreement, the agreement shall be part of the submittal to the
City, signed by both property owners detailing the donating property,
density (number of units) donated, proposed density of the benefiting
property, and reasons why the TDR is beneficial to the City.
Inclusionary zoning is a challenge faced by communities throughout
the country and around the world. It is the City's goal to encourage
housing development within the City, such that it ensures a well-balanced,
functional community of all incomes, races and ages.
