[Ord. 1972, 8/15/2011, Section 2]
a.
Purpose and Uses. The intent of this ordinance is:
(1)
To support the adopted State College Borough Strategic Plan, Action
Plan Goal 1, Objective B. Encourage home ownership by expanding current
programs and exploring new programs;
(2)
To support the adopted State College Borough Strategic Plan, Goal
4, Expand Housing Opportunities;
(3)
To prevent overcrowding and deterioration of the limited supply of
housing, and thereby promote the public health, safety and general
welfare;
(4)
To increase the number of owner-occupied and rental housing units
for households with an income of 120% or less of Area Median Income;
(5)
To support the Centre Region Comprehensive Plan's goal to provide
a wide range of sound, affordable and accessible housing consistent
with the fair share needs of each municipality in the Centre Region;
(6)
To facilitate and encourage development and redevelopment that includes
a range of housing opportunities through a variety of residential
types, forms of ownership, home sale prices and rental rates;
(7)
To support the objectives of the current State College Borough Consolidated
Plan and the five-year Consolidated Plan by expanding housing opportunities
for households making 50% to 120% Area Median Income;
(8)
To work in partnership and support programs like State College Community
Land Trust (SCCLT), Housing Transitions, Inc, and Temporary Housing
Foundation to create additional housing opportunities; and
(9)
To ensure affordable homeownership which is, a mortgage payment and
housing expenses (principal, interest, taxes and insurance no greater
than 30% of a family's gross month income, per the HUD definition.)
b.
Authority. Provisions for the Inclusionary Housing Ordinance are
intended to comply with the following Articles of the Municipal Planning
Code.
(1)
Article VI Zoning.
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Section 603. Ordinance Provisions where:
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(a)
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Zoning ordinances should reflect the policy goals of the statement
of community development objectives and give consideration to the
character of the municipality, the needs of the citizens and the suitabilities
and special nature of particular parts of the municipality.
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(c)
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Zoning ordinances may contain:
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(5)
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Provisions to encourage innovation and to promote flexibility,
economy and ingenuity in development, including subdivisions and land
developments as defined in this act;
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(6)
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Provisions authorizing increases in the permissible density
of population or intensity of a particular use based upon expressed
standards and criteria set forth in the zoning ordinance;
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(j)
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Zoning ordinances adopted by municipalities shall be generally
consistent with the municipal or multi-municipal Comprehensive Plan
or, where none exists, with the municipal statement of community development
objectives and the county Comprehensive Plan.
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Section 604. Zoning Purposes. The provisions of zoning ordinances
shall be designed:
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(1)
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To promote coordinated and practical community development and
proper density of population.
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Section 605. Classifications.
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(3)
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For the purpose of encouraging innovation and the promotion
of flexibility, economy and ingenuity in development, including subdivisions
and land developments as defined in this act, and for the purpose
of authorizing increases in the permissible density of population
or intensity of a particular use based upon expressed standards and
criteria set forth in the zoning ordinance.
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(2)
These regulations are enacted under the authority of the Pennsylvania
Human Relations Act (Act of October 27, 1995, P.L. 744, as amended),
which guarantees fair housing.
(3)
Posting of the Fair Housing Practices Notice is required pursuant
to the Pennsylvania Human Relations Act.
[Ord. 1972, 8/15/2011, Section 3; amended by Ord. 2022, 8/19/2013]
a.
Applicability. This applies to all land development plans within
all Zoning Districts that permit residential dwelling units, and for
all of the following types of land development that contain six or
more additional residential dwelling units shall also contain inclusionary
units as determined by the calculation in paragraph b below: (Exception:
Dwelling units that are owned, rented or leased by The Pennsylvania
State University for the sole purpose of housing full-time enrolled
students in the UPD Zoning district.)
(1)
New residential construction, regardless of the type of dwelling
unit.
(2)
New mixed-use development with a residential component.
(3)
Renovation of a multiple-family residential structure that increases
the number of residential units from the number of units in the original
structure.
(4)
Conversion of an existing residential structure regardless of dwelling
type to a multiple-family residential structure.
(5)
Conversion of a nonresidential property to a residential property.
b.
Calculation of Inclusionary Units. To calculate the minimum number
of inclusionary units required in any land development listed in paragraph
a., Applicability, above, the total number of proposed units shall
be multiplied by 10%. If the product includes a fraction, a fraction
of 0.5 or more shall be rounded up to the next whole number, and a
fraction of less than 0.5 shall be rounded down to the next whole
number. (See the table in paragraph Section 4a(8) for the percentage
of the type of inclusionary units to be provided to specific qualified
households.)
c.
Alternatives to On-Site Construction of Inclusionary Units. The use
of alternatives to on-site construction of inclusionary units in whole
or in part will result in the same reduction in whole or in part of
the bonus units permitted on site.
(1)
Fee in-Lieu Inclusionary Housing.
(a)
An applicant may pay a fee in-lieu constructing some or all
of the required minimum number of inclusionary units required in any
development listed in paragraph a, Applicability, above.
(b)
Borough Council shall establish by resolution the amount of
the fee-in-lieu payment per unit following written recommendation
by the Borough Manager and adopt it as part of the Borough's schedule
of fees. The per-unit amount shall be based on an estimate of the
actual cost of providing an inclusionary unit using actual construction
cost data, which shall include a consideration of land purchase costs.
The per-unit amount shall be provided in accordance with the policy
and procedures manual for administration of the program.
(c)
All fee-in-lieu payments received pursuant to this ordinance
shall be paid directly to the Borough and be used to further the Borough's
mission of providing housing opportunities by purchasing, rehabilitating
and selling homes in the Borough to income-qualified buyers and/or
providing rentals to income-qualified renters. The Borough shall create
and administer an Inclusionary Housing Fund for such payments.
(d)
To determine the total fee-in-lieu payment, the per-unit amount
established by the Borough shall be multiplied by at least 10% of
the number of proposed units in the development pursuant to paragraph
a, Applicability, above. For the purposes of such calculation, if
10% of the number of proposed units results in a fraction, the fraction
shall not be round up or down. If the fee-in-lieu payment is made
to substitute providing one or more of the required units, the calculation
shall be prorated as appropriate.
(2)
Off-Site Development. Inclusionary units otherwise required to be
constructed as specified under paragraph a., Applicability, above,
maybe constructed or rehabilitated off-site within the State College
Borough. To determine the total number of off-site units, multiply
the number of proposed units in the development by 10%. Applicant
must obtain off-site development plan approval from the Borough at
the same time the Applicant obtains plan approval for the proposed
market-rate units within the covered development. The off-site development
plan must include, among other land development plan requirements,
documentation of site control, necessary financing in place to complete
the off-site development or rehabilitation, architectural designs
and elevations, and an Inclusionary Housing Development Agreement
as required under Section 1952.a(3), below. As a condition of approval
for the Applicant's off-site development, the Borough shall require
that off-site inclusionary units shall be completed no later than
completion of the Applicant's market-rate units. See Section 1952.e.,
Phasing of Inclusionary Units, for requirements of the off-site inclusionary
units are not completed as required within the specified time frame
as described in the Inclusionary Housing Agreement.
(3)
Land Donation. Land within the State College Borough may be donated
to the Borough or its assignee with the Borough's approval. The land
value must be equal to or greater than the value of fee-in-lieu payment
in paragraph c(1). The value of the land will be determined by an
appraisal completed by a certified appraiser shall be submitted to
the Borough. If the submitted appraisal is in question the value of
the land will be determined as outlined in the policy and procedures
manual.
(a)
The land to be donated must meet all applicable zoning and land
development standards to construct the required units.
(b)
The land donation must occur prior to the completion of the
market-rate units. See Section 1952.e. Phasing of Inclusionary Units,
for requirements if the land donation is not completed as required
within the specified time frame.
(4)
Building and Land Donation. Building and Land within the State College
Borough may be donated to the Borough or its assignee with the Borough's
approval. The building and land value must be equal to or greater
than the value of fee-in-lieu payment in paragraph c(1). The value
of the building and land will be determined by an appraisal completed
by a certified appraiser shall be submitted to the Borough. If the
appraisal submitted is in question the value of the building and land
will be determined as outlined in the policy and procedures manual.
(a)
The land to be donated must meet all applicable zoning and land
development standards to construct the required units.
(b)
The building to be donated must meet all applicable building
code and zoning requirements to construct the required units.
(c)
The building and land donation must occur prior to the completion
of the market-rate units. See Section 1952.e. Phasing of Inclusionary
Units, for requirements if the building and land donation is not completed
as required within the specified time frame.
[Ord. 1972, 8/15/2011, Section 4; amended by Ord. 2089, 1/9/2017,
Section 1]
a.
General Requirements for Inclusionary Units. All covered projects
must comply with the following requirements:
(1)
Permitted Development Modifications. Developments that provide inclusionary
units on-site will have the option to add one additional equivalent
dwelling unit (bonus unit) for each inclusionary unit provided as
part of the land development plan. The following provisions will be
applied to any building on the site that contains inclusionary units
within it. In order to be eligible for the following modifications,
a minimum of 70% of the gross floor area within the building must
be used as dwellings and related corridors and common areas for the
dwellings.
[Amended by Ord. No. 2159, 6/7/2021]
(b)
Row dwelling or townhomes: seven units per row will be permitted.
(d)
Inclusionary units may be up to 10% smaller than the market-rate
units.
(e)
Density restrictions (such as FAR, minimum lot area per unit,
etc.) may be modified to the extent needed to accommodate all required
inclusionary units and allowable bonus units.
(f)
The overall height for buildings containing inclusionary multifamily
dwelling units cannot exceed one additional story over and above the
underlying zoning.
(2)
Development Composition. Inclusionary units shall be mixed with,
and not clustered together or segregated in any way from, market-rate
units.
(3)
Inclusionary Housing Development Agreement. Prior to the issuance of a zoning permit for any development in which inclusionary units are required, the applicant shall have entered into with the Borough an Inclusionary Housing Development Agreement, as defined in the Codification of Ordinances, Chapter XIX, Section 201, Definitions.
(4)
Primary Place of Residence. Inclusionary units required under this
ordinance shall be offered for sale or rent to a qualified household
to be used for its own primary residence, except for units purchased
by the Borough or its assignee.
(5)
Phasing Plan. If the development plan, for which inclusionary housing
is required, contains a phasing plan, the phasing plan shall provide
for the development of inclusionary units concurrently with the market-rate
units. No phasing plan shall provide that the inclusionary units built
are the last units constructed.
(6)
Bedroom mix. In order to ensure an adequate distribution of inclusionary
units by household size, the bedroom mix of inclusionary units in
any project shall be in the same ratio as the bedroom mix of the market-rate
units of the project. The applicant may pursue altering this provision
through a conditional use process as outlined below:
(a)
Bedroom mix modification by conditional use.
(i)
For a multifamily or mixed-use building project to be eligible
for this conditional use the following conditions must be met:
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aa.
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The project includes multifamily housing of six more units.
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bb.
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The bedroom mix of the inclusionary units may be different from
that of the market-rate units. However, equivalency in the total number
of bedrooms required as a result of the 10% calculation for inclusionary
units must be maintained. A calculation must be performed to identify
how many total market-rate bedrooms would be included in the development.
Ten percent of the total number of bedrooms must still be inclusionary;
however, the bedroom mix by unit type may be modified as part of the
conditional use. In order to meet this standard, the number of affordable
units may necessarily need to be increased.
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cc.
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A preliminary land development plan is submitted.
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dd.
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A market analysis is submitted indicating that the demand for
affordable housing in the Borough of State College, and greater Centre
County region, is such that maintaining the same bedroom mix of affordable
units as the market-rate units will not sufficiently meet demand for
affordable housing. This analysis will, at a minimum, utilize housing
cost burden information. The proposed bedroom mix by unit type must
meet or exceed the recommendations contained in the submitted market
analysis.
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ee.
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The inclusionary housing unit(s) will be leased by the unit.
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Alteration of the bedroom mix for the inclusionary units will
not result in additional bonus units for a project.
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(ii)
Conditional use application for this section may be submitted
at the same time as the signature development project conditional
use (§ 19-1809) or collegiate overlay project as a conditional
use (§ 19-1813) and shall follow the requirements for hearing
set forth within the State College Borough Zoning Ordinance.
(7)
Like Units. Inclusionary units shall be like units with regard to
number of bedrooms, amenities and access to amenities, but may differ
from the market-rate units in a covered project with regard to interior
amenities, provided that:
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These differences, excluding differences related to size differentials,
are not apparent in the general interior and exterior appearance of
the project's units; and
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These differences do not include insulation, windows, heating
systems, and other improvements related to the energy efficiency and
standard components, as defined by the Borough, of the project's units.
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(8)
Qualified Households. The sale or lease of inclusionary units shall
be limited to households earning up to 120% of median income, adjusted
for household size. See the following table for the percentage of
inclusionary units to be provided to specific qualified households.
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Percentage of Inclusionary Units for the Development
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Population to be Served
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For Sale Units
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Rental Units
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< 60% Area Median Income (AMI)
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N/A
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Minimum 50%
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61-80% AMI
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Minimum 50%
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Minimum 25%
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81-120% AMI
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Maximum 50%
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Maximum 25%
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TOTAL
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100%
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100%
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In instances where there are three inclusionary units for rent
a minimum of one unit must be provided for each population to be served.
In instances where there are less than three inclusionary units for
rent a minimum of one unit for < 60% Area
Median Income (AMI) must be provided at a commensurate price. In instances
where there are less than three inclusionary units for sale a minimum
of one unit for < 80% Area Median Income
(AMI) must be provided at a commensurate price.
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(9)
Limitations.
(a)
Priority given to residents of Centre County for a minimum of
one year or employed by a business located in Centre County. Must
be a United States citizen or have permanent resident alien status.
(b)
Must use unit as principal place of residence.
(c)
Except for student status, household income, asset limitations
and the primary residency requirement as set forth herein, occupancy
of any inclusionary unit shall not be limited by any conditions that
are not otherwise applicable to all units within the covered project.
(d)
A full-time student is defined as an individual enrolled in
a post secondary program, college or university that is registered
as an undergraduate according to the enrollment requirements where
the student is enrolled.
(e)
Students are eligible when they can provide proof they are:
(i)
Graduate students.
(ii)
Undergraduate students who are
enrolled at least half-time, are not part of a household outside of
the Inclusionary Housing Program (i.e., not a dependent of another
individual) and who meet at least one of the following criteria:
1.
Married.
2.
Domestic partners, as defined herein.
3.
Single parents who have at least 50% custody.
4.
Veterans with a service-related disability as determined by
the Veterans Administration.
5.
Individuals who are receiving assistance under Title IV of the
Social Security Act (i.e. TANF).
6.
Individuals who are enrolled in a job training program receiving
assistance under the Workforce Investment Act or under other similar
federal, state or local laws.
(10)
Final Number of Units and Pricing shall be determined as outlined
in this ordinance and the policy and procedures manual.
b.
Calculating Rents and Sales Prices. The following provision shall
apply to the calculation of rents, selling prices and/or carrying
charges of inclusionary units:
(1)
Average Rent. Inclusionary rental units shall be rented at a price
which, on average, is affordable for a household with an annual income
that is no more than 65% of median income adjusted for household size.
(2)
Average Sales Price. Inclusionary units for sale shall be sold at
a price which, on average, is affordable for a household with an annual
income that is no more than 90% of median income adjusted for household
size.
(3)
Unit/Household Size Pricing Calculation. In calculating the rents
or carrying charges of inclusionary units, the following maximum relationship
between unit size and assumed household size shall apply:
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Efficiency units: one person household
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One bedroom units: two person household
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Two-bedroom units: three person household
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Three-bedroom units: four person household
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Four-bedroom units: five person household
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Household size numbers used for price calculation will not be
used to determine maximum legal occupancy of a dwelling unit. Maximum
legal occupancy of a dwelling unit will be based on standards in the
State College Zoning Ordinance for one- and two-family dwellings and
in the Centre Region Building Safety and Property Maintenance Code
for multifamily dwellings.
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(4)
Sales Price Calculation. With respect to inclusionary units offered
for sale, prices will be calculated on the basis of:
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An available fixed-rate, thirty-year mortgage, consistent with
the average rate published from time to time, typically quarterly,
by Freddie Mac or its equivalent.
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A down payment of no more than 5% of the purchase price.
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A calculation of property taxes.
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A calculation of homeowner insurance.
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A calculation of condominium or homeowner association fees.
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Other monthly fees, as allowed by the Borough, such as monthly
land lease fees.
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(5)
Rent Calculation. With respect to inclusionary units offered for
rent, initial rents are calculated based on HUD Area Median Income
(AMI) for the State College Metropolitan Statistical Area as follows:
HUD publishes annual AMI data for one- to eight-person households.
Maximum monthly rents would be 30% of designated AMI, divided by 12
based on the number of bedrooms, less the current utility allowance
per the Housing Authority of Centre County. Any Owner who charges
rent in violation of this provision shall refund excess to tenant.
c.
Borough's Option to Purchase. The following provisions apply to the
initial offering of inclusionary units for sale or rent:
(1)
Notification. As a condition of land development approval, the developer
shall notify the Borough or its assignee of the prospective availability
of any inclusionary units at tire time the design and pricing are
being established for such units.
(2)
Initial Option. From the time of building permit issuance, the Borough
or its assignee shall have an exclusive option for 120 days to enter
into a purchase and sales agreement at or below the inclusionary unit
pricing per Section 4. for each inclusionary unit offered for sale
by the developer. The Borough may waive or assign this option.
(3)
Waiver. If the Borough or its assignee fails to exercise its option
for the inclusionary units, or if the Borough or its assignee declares
its intent not to exercise its option, the developer shall offer the
units for purchase or rent to households per Section 1952.a(8). If
requested by the developer, the Borough or its assignee shall execute
documents that may be recorded with the Centre County Office of Recorder
of Deeds to evidence said waiver of the option.
(4)
Time of Closing. Closing on inclusionary units purchased by the Borough
or its assignee occurs on or after the time of issuance of the certificate
of occupancy. If the Borough or its assignee fails to close on these
inclusionary units, the developer shall offer the unit for purchase
or rent to households per Section 1952.a(8).
(5)
Transfer of Option. The Borough may assign its options under this
section, in which event it shall notify the developer of the agency
to which it has assigned the option, which agency shall deal directly
with die developer, and shall have all of the authority of the Borough
as provided under this section.
(6)
Additional Option. At any point after the Initial Option period,
c.(2) above, the developer may offer the inclusionary units to the
Borough or its assignee for purchase at or below the inclusionary
unit pricing per Section 4. The Borough or its assignee then shall
have 30 days to enter into a purchase and sales agreement.
d.
Continued Affordability Requirements. All covered projects shall
comply with the following provisions to ensure continued affordability
of inclusionary units provided under this ordinance and units required
to be continually inclusionary hereunder.
(1)
Ninety-Nine-Year Requirement. All inclusionary units shall remain
inclusionary for a period of no less than 99 years commencing from
the date of initial occupancy of the units.
(2)
Affordability Instruments. Provisions to ensure continued affordability
of inclusionary units shall be embodied in legally binding agreements
and/or deed restrictions, which shall be prepared by the Borough and
agreed to by the developer and upon execution, shall be recorded and
filed.
(3)
Resale Restrictions. The Borough shall require resale conditions
in order to maintain the availability of inclusionary units in perpetuity
be specified in the Affordability Instrument, including resale calculations.
(a)
At the time of purchase, the owners of any inclusionary unit
shall execute a Resale Restriction Agreement and Option to Purchase
provided by the Borough, stating the restrictions imposed pursuant
to this Resale Restrictions section, including but not limited to
all applicable resale controls and occupancy restrictions. This Resale
Restriction Agreement and Option to Purchase shall be recorded in
the Centre County Office of Recorder of Deeds and shall afford the
Borough or its assignee the right to enforce the declaration of restrictions.
(b)
The Borough or its assignee shall be responsible for monitoring
and facilitating the resale of inclusionary units. Any abuse in the
resale provisions shall be referred to the Borough for action.
(4)
Rent Increases. Provisions for continued affordability of inclusionary
rental units shall limit annual rent increases to the percentage increase
in the median household income within the State College Metropolitan
Statistical Area (MSA), except to the extent that further increases
are made necessary by hardship or other unusual conditions, as defined
in the policies and procedures manual, and shall provide that no rent
increase may take effect until it has received approval from the Borough
in writing. Any Owner who charges rent in violation of this provision
shall refund excess to tenant.
(5)
Purchase Option. Provisions for continued affordability of inclusionary
units shall provide that the Borough or its assignee shall have an
exclusive option to purchase any inclusionary unit when it is offered
for resale. The purchase option period and process shall be detailed
in the Affordability Instrument.
e.
Phasing of Inclusionary Units. Inclusionary units shall be made available
for occupancy on approximately the same schedule as a covered project's
market-rate units, except that certificates of occupancy for the last
10% of the market-rate units shall be withheld until certificates
of occupancy have been issued for all of the inclusionary units or
the land donation or land and building donation is complete. Where
the Borough determines that completion of inclusionary units has been
delayed for extraordinary reasons beyond the reasonable control of
the Applicant, the Borough may, in its discretion, permit the Applicant
to post a monetary bond and release one or more market-rate units.
The amount of the bond shall be sufficient in the determination of
the Borough Planning Department to assure completion of the inclusionary
units.
A schedule setting forth the phasing of the total number of
units in a covered project, along with a schedule setting forth the
phasing of the required inclusionary units shall be established prior
to the issuance of a building permit for any development subject to
the provisions of this ordinance.
f.
Certificate of Occupancy. No certificate of occupancy shall be issued
for a covered project unless all inclusionary units within the covered
project are eligible for a certificate of occupancy; except that with
respect to covered projects to be constructed in phases, certificates
of occupancy may be issued on a phased basis consistent with the provisions
of paragraph e, Phasing of Inclusionary Units, above.
h.
Policy and Procedures Manuals for Administration and the Marketing
of Units for Sale and Rent. The State College Borough Planning Department
shall provide an administrative manual for the execution of the inclusionary
housing ordinance. This manual shall be followed by the applicant
to provide the inclusionary units.
The marketing and sales and rents manual shall also be provided
to establish requirements for this aspect of the program. Developers
and their agents are expected to work closely and in cooperation with
Borough staff to make the inclusionary marketing and sales process
as efficient and equitable as possible.
These documents will include clarifying information and procedures
when requested by the Borough. These procedures may be updated from
time to time to increase the effectiveness of the inclusionary housing
program.
i.
Inability to Rent or Sell Inclusionary Units to Qualified Households.
If the developer meets or exceeds the marketing requirements, referenced
in paragraph h above, for a period of one year from final certificates
of occupancy issuance, and is still unable to lease or sell inclusionary
units to qualified households, the developer shall offer the inclusionary
units to the Borough or its assignee for purchase per Section 4.c.(6).
If the Borough or its assignee does not purchase the inclusionary
units, the developer may pay the fee-in-lieu for the number of available
inclusionary units. If the developer has met all the other requirements
of this ordinance, this payment shall release the inclusionary units
to market-rate units.
j.
Administration. The State College Borough Planning Department shall
administer and monitor activity under this ordinance and shall report
periodically to the Borough Council, setting forth its findings, conclusions
and recommendations for changes that will render the program more
effective.
k.
Fees. Fees to administer the program such as a monitoring fee, refinance
fee, or resale fee, may be established by Borough Council resolution
following written recommendation by the Borough Manager and adopted
as part of the Borough's schedule of fees.
