[HISTORY: Adopted by the Town of Conway 5-12-2020 ATM by Art. 6. Amendments noted where applicable.]
The purpose of this chapter is to provide a mechanism to encourage the development of affordable units for moderate and lower-income households to meet the needs of the Town of Conway, to foster economic and social stability within the larger community by providing opportunities for home ownership and long-term rental units and provide for the sustainability of affordable units in the future through the use of deed restrictions and other legal mechanisms and to further the intent of the Town of Conway to meet the requirements described under New Hampshire RSA 674.
This chapter is adopted under the authority of New Hampshire RSA 674:21 and is intended as an "inclusionary zoning" provision as defined therein which states in part that inclusionary zoning shall "provide a voluntary incentive or benefit to a property owner in order to induce the property owner to produce housing units which are affordable to persons or families of low- and moderate-income. 'Inclusionary zoning' includes, but is not limited to, density bonuses, growth control exemptions, and a streamlined application process."
This chapter shall apply to the following Districts:
A. 
Residential/Agricultural District, subject to the limitations set forth below;
B. 
Conway Village Residential District;
C. 
North Conway Village Residential District;
D. 
Center Conway Village Commercial District;
E. 
Conway Village Commercial District;
F. 
North Conway Village Commercial District; and
G. 
Highway Commercial District.
Notwithstanding the minimum lot size, density requirements and frontage standards set forth in the zoning districts listed above and as more particularly described in §§ 190-13 through 190-14, and §§ 190-16 through 190-20, lot size, density requirements and frontage standards for affordable units and market-rate units within an affordable housing development shall be as follows:
A. 
Lots serviced by a municipal water system and a municipal sewerage system shall have at least 1/4 acre for the first unit and 5,000 square feet for each additional unit on the same lot.
B. 
Lots serviced by a municipal water system shall have at least 1/2 acre for the first unit and 5,000 square feet for each additional unit on the same lot; provided the loading capacity for the septic system complies with, or obtains all appropriate waivers relating to, NHDES Code of Administrative Rules Chapter Env - Wq 1000, as amended.
C. 
All other lots shall have at least 1/2 acre for each unit that may be located thereon; provided the loading capacity for the septic system complies with, or obtains all appropriate waivers relating to, NHDES Code of Administrative Rules Chapter Env. - Wq. 1000, as amended. The density requirements set forth in this Subsection C shall not apply to the Residential/Agricultural District and the density requirements set forth in § 190-13B(3) shall govern and control.
D. 
All lots must front on a state or Town highway with a Class I, II, III, IV or V classification, a private road, cul-de-sac all constructed to Town standards as required by the Planning Board or a Class VI road proposed to be improved as stipulated by the Planning Board. To qualify as frontage the lot must have access rights to the subject highway or road. The minimum distance for frontage on a road shall be 75 feet.
E. 
All roads shall comply with the Town of Conway Road Standards described in the Subdivision (Ch. 130) regulations of the Town of Conway.
F. 
No parking shall be within the front setbacks of any lot located within the Center Conway Village Commercial District, Conway Village Commercial District, Highway Commercial District and North Conway Village Commercial District. In instances where a development does not require site plan review, no parking shall be within the first 15 feet of the front setbacks of the Center Conway Village Residential District, North Conway Village Residential District and Residential/Agricultural District measured from the right of way.
G. 
At least 25% of dwelling units within the affordable housing development must meet the definition of "affordable units." When the number of affordable units is calculated to a fractional number, any fraction of less than 1/2 shall be rounded down to the next whole number; any fraction of 1/2 or greater shall be rounded up to the next whole number and treated as a whole inclusionary unit. For example, a three-unit development would be calculated as 3 x 25% = 0.75, which would be rounded up to one affordable unit. Mobile homes or manufactured housing as defined in RSA 674:31 are not permitted; however pre-site built units as defined in RSA 674:31-a shall be permitted.
Any subdivision and/or site plan submitted to the Planning Board in connection with this chapter shall contain the following information:
A. 
The number of affordable units created and the percentage of affordable units relative to the percentage of market-rate housing.
B. 
Descriptions of the affordable units and the market-rate units evidencing comparable number of bedrooms, bathrooms and square footages and complementary architectural styles and exterior finishes.
C. 
Any other information as required by the Subdivision (Ch. 130) and/or Site Plan Review (Ch. 110) regulations of the Town of Conway.
D. 
At the time of Planning Board approval, the affordable units must be expressly designated as such and shown on a plan with a condition that they shall remain affordable in compliance with this chapter and a deed restriction shall be recorded in the Registry of Deeds as evidence of the same. The deed restriction will be in a form and substance approved by the Town of Conway.
A. 
All affordable units shall be dispersed throughout the project by being fully integrated with the market-rate units such that they are distributed throughout the development and not clustered in one area of the development.
B. 
All affordable units shall be constructed concurrently with the market-rate units. Progress rates for construction of affordable units shall be the same as that of the market-rate units.
C. 
Affordable units shall be constructed with complementary exterior design and materials that are comparable with those used in constructing the market-rate units. Similar landscaping shall be applied to both affordable units and the market-rate units. Affordable units as well as market units may be pre-site built units as defined in RSA 674:31-a.
D. 
Interior materials and amenities in the affordable units may be different from those used in the market-rate units, provided that the number of bedrooms shall be proportional between affordable units and market-rate units.
[Added 4-12-2022 ATM by Art. 6[1]]
In order to encourage the development of affordable primary residences and enhance residential housing choices in Conway, the Planning Board may grant a conditional use permit for compact cluster housing developments, provided that:
A. 
All dwelling units shall be in single-family detached structures or duplexes and shall not include manufactured or mobile homes;
B. 
All dwelling units shall be served by municipal water and sewerage;
C. 
All dwelling units shall have a floor area of not less than 400 square feet nor greater than 1,200 square feet;
D. 
All dwelling units shall be used for long-term residency and as primary residences, and short-term transient occupancy of any dwelling unit is prohibited. Legal documents shall be reviewed and approved by the Planning Board with lease terms of no less than 180 days;
E. 
The minimum lot size shall be 1/4 acre for the first unit and 5,000 square feet for each additional dwelling unit on a lot;
F. 
The minimum frontage for any lot shall be 50 feet;
G. 
The conditional use permit shall not be combined with any other conditional use permit or special exception, including but not limited to the special exceptions for accessory dwelling units.
[1]
Editor's Note: This article also renumbered former §§ 195-7 through 195-10 as §§ 195-8 through 195-11, respectively.
For purposes of this chapter the following terms shall be defined as follows:
ADMINISTRATOR
A designated officer with the Town of Conway or, at the Town's discretion, its agent, which agent may be New Hampshire Housing and Finance Authority, a local housing nonprofit, or such other third-party administrator as determined by the Town of Conway.
AFFORDABLE UNIT
i) With respect to unit ownership, the purchaser shall be an eligible buyer (as defined below) and the purchase price of the affordable unit shall be no greater than the estimated maximum affordable purchase price as most recently published by the New Hampshire Housing Finance Authority, and ii) with respect to a rental unit, the renter shall be an eligible renter (as defined below) and the monthly rent shall be no greater than estimated maximum affordable monthly rent for Carroll County as most recently published by the New Hampshire Housing Finance Authority. Notwithstanding any other provision to the contrary, the resale price of an affordable unit may be increased by an amount not to exceed 50%, up to a maximum amount of $10,000, of documented capital improvements made by the seller and with a value as stated in a certification from a certified public accountant in a form reasonably acceptable to the Town of Conway and signed under the pains and penalties of perjury and delivered to the Administrator.
ELIGIBLE BUYER
Is a household whose income does not exceed 80% of the area median income for a family of four in Carroll County as most recently published by the United States Department of Housing and Urban Development. The eligible buyer shall occupy the affordable unit as its primary residence and shall not own or have an interest in any other real estate.
ELIGIBLE RENTER
Is a household whose income does not exceed 60% of the area median income for a family of three in Carroll County as most recently published by the United States Department of Housing and Urban Development. The eligible renter shall occupy the affordable unit as its primary residence and shall not own or have an interest in any other real estate.
Units developed pursuant to this chapter, including affordable units and market-rate units, shall not be used for short-term rentals such as, and including, without limitation, Airbnb, VRBO, HomeAway or any other similar short-term rental platform. All unit leases shall be in writing and for a period of not less than six months or more than 12 months in any one instance. Tenants that occupy a unit for more than 12 months may continue to occupy the same unit with a written lease on a month-to-month basis. No tenant in an affordable unit shall be permitted to sublease all or a portion of the affordable unit to anyone other than an eligible renter. The foregoing shall be included in the restrictive covenant in a form approved by the Town of Conway and shall be recorded with the Carroll County Registry of Deeds.
A. 
Affordable units offered for sale or rent and approved pursuant to this chapter shall require a restrictive covenant enforceable by or on behalf of the Town of Conway in a form approved by the Town of Conway and shall be recorded with the Carroll County Registry of Deeds prior to the sale or rental of any affordable units. The limitations on the sale of affordable units as described in this chapter and the restrictive covenant shall not apply to a foreclosure by an institutional lender or a deed-in-lieu of foreclosure resulting from a mortgage with an institutional lender and upon foreclosure by an institutional lender or a deed-in-lieu of foreclosure resulting from a mortgage with an institutional lender, the income qualifications and resale limitations set forth herein shall terminate with respect to the impacted unit.
B. 
Affordable units for rent shall limit annual rent increases to the percentage increase in the area median income.
C. 
This chapter shall be enforced by the Town of Conway or its designee in accordance with terms and conditions hereof and the regulations of the Town of Conway. To ensure that only eligible households purchase affordable units, at least 30 days prior to the purchase of an affordable unit the following information shall be provided to the Administrator for review and approval: i) a copy of the fully executed purchase and sale agreement; ii) a certification from a certified public accountant in a form reasonably acceptable to the Town of Conway and signed under the pains and penalties of perjury confirming the annual income of the prospective purchaser; iii) a certification from a certified public accountant in a form reasonably acceptable to the Town of Conway and signed under the pains and penalties of perjury confirming any capital improvements of seller that increase the purchase price; iv) a certification from the eligible buyer that it will be occupying the affordable unit as its primary residence and it has no other interest in any other real estate; v) a copy of the most recently published report by the New Hampshire Housing Finance Authority evidencing the estimated maximum affordable purchase price for housing units in Carroll County; and vi) the most recently published by the United States Department of Housing and Urban Development report evidencing the area median income for a family of four in Carroll County. The Administrator shall review the purchase and sales agreement, the certifications and the reports to determine compliance with this chapter. No sale of an affordable unit shall be permitted unless and until the Administrator has provided written approval that the sale of the affordable unit complies with this chapter and the restrictive covenant. Any sale of an affordable unit that fails to comply with this chapter and the restrictive covenant shall be deemed null and void.
D. 
To ensure that only eligible households rent affordable units, at least 15 days prior to the rental of an affordable unit the following information shall be provided to the Administrator for review and approval: i) a fully executed copy of the lease; ii) a certification from a certified public accountant in a form reasonably acceptable to the Town of Conway and signed under the pains and penalties of perjury confirming the annual income of the prospective tenant; iii) a copy of the most recently published report by the New Hampshire Housing Finance Authority evidencing the maximum affordable monthly rent for rental units in Carroll County; iv) a certification from the eligible renter that it will be occupying the affordable unit as its primary residence and it has no other interest in any other real estate; and v) the most recently published by the United States Department of Housing and Urban Development report evidencing the area median income for a family of three in Carroll County. The Administrator shall review the lease, the certification and the reports to determine compliance with this chapter. No rental of an affordable unit shall be permitted unless and until the Administrator has provided written approval that the rental of the affordable unit complies with this chapter and the restrictive covenant. Any rental of an affordable unit that fails to comply with this chapter and the restrictive covenant shall be deemed null and void.
This chapter shall be effective on the date that is three months from the date it is approved by the voters of the Town of Conway through the passage of a warrant article. If any provision of this chapter is held invalid by a court of competent jurisdiction, the reminder of the chapter shall not be affected thereby and shall remain in full force and effect.