The purpose of this Chapter is to provide increased housing
opportunities within a broad range of incomes for current and future
residents of Santa Fe County. The intent is to encourage new development
to achieve a reasonable balance between market rate housing and affordable
housing through the use of incentives and other means to help offset
potential costs. An additional purpose is to incorporate into the
SLDC the requirements of the New Mexico Human Rights Act, NMSA 1978,
§§ 28-1-1 to 28-1-15, and the United States Fair Housing
Act of 1968, Title VII of the Civil Rights Act of 1968, as amended,
42 US Code § 3601, et seq. Pursuant to these state and federal
laws, no person shall refuse to sell, rent, assign, lease, or sublease
or offer for sale, rental, lease, assignment, or sublease any housing
in the County, including affordable housing, to a person, or to refuse
to negotiate for the sale, rental, lease, assignment or sublease of
any housing with a person because of race, religion, color, national
origin, ancestry, sex, sexual orientation, gender identity, family
status, spousal affiliation, or physical or mental handicap, provided
that the physical or mental handicap is unrelated to a person’s
ability to acquire or rent and maintain particular affordable housing
accommodation.
Adopted by Ordinance 2016-9, December 13, 2016
13.2.1
Applicability.
Except Section 13.1, which shall apply
to all housing within Santa Fe County, the affordable housing requirements
of this Chapter shall apply only to subdivisions consisting of 5 or
more parcels within the unincorporated areas of central and northern
Santa Fe County, as shown on Appendix E.[1]
13.2.1.1
Required Percentage of Affordable Dwellings.
For subdivisions
consisting of 5 to 24 parcels, the number of affordable dwellings
shall be no less than (8%) of the total number of parcels. For subdivisions
consisting of 25 or more parcels, the number of affordable dwellings
shall be no less than (15%) of the total number of parcels.
13.2.1.2
Income Range 1 Bonus.
Each affordable dwelling provided
to an eligible buyer in income range 1 shall count as two affordable
dwellings in any income range chosen by the applicant. For example,
if two (2) affordable dwellings are provided to eligible buyers in
income range 1, the applicant would receive credit for having provided
four (4) affordable dwellings, which could be applied to its affordable
dwelling requirements in income range 1, 2, 3, or 4 as chosen by the
applicant.
13.2.1.3
General Distribution of Affordable Dwellings.
Subject
to Section 13.2.1.2, affordable dwellings shall be distributed equally
among eligible buyers in each of the four income ranges, as shown
on Table 13-1.
|
Table 13-1 Distribution of Affordable Dwellings
| ||
|---|---|---|
|
Income Range
|
Percentage of Affordable Dwellings Required for 5–24 parcels
|
Percentage of Affordable Dwellings Required for Subdivisions
of 25 or More parcels
|
|
Income Range 1 * (<65% AMI) and/or
Income Range 2 (66% to 80%) AMI
|
4
|
7.5
|
|
Income Range 3 (81% to 100%) AMI
|
2
|
3.75
|
|
Income Range 4 (101% to 120% AMI
|
2
|
3.75
|
|
Total percentage of affordable housing required by subdivision
size
|
8%
|
15%
|
|
* See 13.2.1.2 Income Range 1 Bonus
|
13.2.1.4
Fractions.
If application of Section 13.2.1.1 does not
result in a whole number, the following requirements shall apply:
1.
Where
the fractional remainder is greater than 0.5, one additional affordable
dwelling unit shall be required.
2.
Where
the fractional remainder is 0.5 or less, a residual fee shall be required
in accordance with the affordable housing regulations unless an additional
affordable dwelling unit is provided.
13.2.1.5
Affordable Rental Units.
An applicant may comply with this Chapter, in whole or in part, by
providing affordable rental units to eligible renters. In addition
to the affordable housing regulations, the following requirements
shall apply to affordable rental units:
a.
For
each income range, the monthly rent paid by an eligible renter shall
be consistent with low-income rent required under the regulations
of the United States Housing and Urban Development, as further provided
in the affordable housing regulations.
b.
Single-family
dwellings provided as rental units shall: (1) conform to the general
distribution of affordable dwellings provided in Section 13.2.1.2;
and (2) comply with the minimum size, unit type(s), and other structural
requirements and have compatible exterior architectural and landscaping
appearance with other units in the development, as set forth in the
affordable housing regulations.
c.
The
affordable rental units shall remain affordable and subject to this
Chapter for at least twenty (20) years, which requirement may be imposed
through a recorded covenant, plat note, or other appropriate instrument.
A rental unit may be released from this requirement if the owner of
the unit provides a comparable affordable dwelling, including an affordable
rental unit, for the remainder of the 20-year period or pays the release
fee, which shall decrease over the 20-year period, as provided in
the affordable housing regulations. The affordable housing agreement
shall not terminate as to the affordable rental units until expiration
of the 20-year period.
d.
The
affordable housing agreement shall include appropriate requirements
specific to affordable rental units, including the following:
i.
The owner of an affordable rental unit shall only lease the unit
to eligible renters within the appropriate income range, shall provide
the County proof of income for the initial and each subsequent prospective
tenant, and shall not execute any lease agreement until the County
certifies that the prospective tenant is an eligible renter and that
the lease agreement complies with this Chapter and the affordable
housing agreement.
ii.
The lease agreement shall include provisions granting the County
the right to conduct annual inspections, to verify each tenant’s
income, and to verify the rent amount.
iii.
The County shall have the right to inspect the rental unit annually
to assure that it complies with the housing standards set out in the
affordable housing regulations. The owner of the unit shall reimburse
the County for the cost of each annual inspection at rates set out
in the affordable housing regulations.
iv.
If the owner of a rental unit breaches the affordable housing agreement,
the County shall, at the County’s option, be entitled to liquidated
damages or specific performance. The amount of liquidated damages
shall not exceed the fee that is paid in lieu of providing an affordable
dwelling under the affordable housing regulations.
v.
Each affordable dwelling provided to an eligible renter in income
range 1 shall count as two affordable dwellings in any other income
range as established by the affordable housing regulations.
vi.
The owner of the rental unit shall notify the Administrator of the
sale of the unit within thirty (30) days of the sale and shall provide
a copy of the affordable housing agreement to the buyer.
[1]
Editor’s note–Appendix E is included as an attachment
to this exhibit.
13.2.2
Integration; Phasing; Affordable Housing Plan; Affordable Housing
Agreement.
13.2.2.1
Integration.
Affordable dwellings shall be integrated
into the overall design and layout of a subdivision and shall be reasonably
dispersed within the subdivision pursuant to an approved affordable
housing plan and affordable housing agreement.
13.2.2.2
Phased Developments.
Affordable dwellings shall be constructed
and offered for sale in each phase of a phased development in approximately
the same ratio as the number of parcels to be developed in a given
phase bears to the total number of parcels in a phased development.
13.2.2.3
Affordable Housing Plan.
An applicant shall submit a
proposed affordable housing plan as part of the applicant’s
first application for development approval for a subdivision. The
affordable housing plan shall describe, in detail, how the applicant
intends to comply with the affordable housing requirements of this
Chapter, and shall specify whether alternative means of compliance
or hardship conditions will be claimed and, if so, the grounds for
doing so. The Administrator may request additional information from
the applicant, or may reject or require amendments to a proposed affordable
housing plan if the proposed plan is incomplete or fails to meet the
requirements of this Chapter or the affordable housing regulations.
13.2.2.4
Affordable Housing Agreement.
The affordable housing
plan shall form the basis of an enforceable affordable housing agreement
between the County and the owner of the subdivision. The finally executed
affordable housing agreement must be filed in the records of the County
Clerk prior to or along with the final subdivision plat. The final
plat shall reference the affordable housing agreement but shall not
otherwise identify the lots on which affordable housing is located.
Unless the Board delegates its authority, affordable housing agreements,
including any amendments thereto, shall be executed by the Board.
Adopted by Ordinance 2016-9, December 13, 2016
13.3.1
Recommendation by Administrator.
The Administrator shall
recommend and present to the Board proposed affordable housing regulations
and appropriate amendments.
13.3.2
Contents.
The affordable housing regulations shall include,
at a minimum, the following provisions:
13.3.2.1
Application submittal requirements to comply with this Chapter, including
minimum requirements for affordable housing plans and affordable housing
agreement.
13.3.2.2
A form of affordable housing agreement, which shall specify the location
of affordable housing, housing type(s) and size(s), the maximum target
housing prices of the proposed affordable dwellings, a description
of how the affordable dwellings will be marketed and sold to eligible
buyers, and a requirement that the affordable housing agreement be
filed and recorded with the final plat.
13.3.2.3
A reasonable process for certifying eligible buyers that, to the
extent possible, takes no more than fifteen (15) business days from
the date a potential buyer submits a complete application for certification
to the County.
13.3.2.4
Reasonable fees to be charged for certification of eligible buyers.
13.3.2.5
The form of the certificate of compliance to be issued upon compliance
with the terms of this Chapter.
13.3.2.6
A maximum target housing price for each income range.
13.3.2.7
Minimum design requirements including the number of bathrooms and
the minimum residential square footages of heated area according to
the number of bedrooms.
13.3.2.8
The method used to determine and periodically adjust the maximum
target housing price, including the methodology to be used to determine
the initial market price for each eligible housing type and a means
to discount the market price by the same percentages to determine
the price for each category of eligible housing type and for each
income range.
13.3.2.9
The method for determining fees associated with this Chapter, including
cash payments as an alternative means of compliance and residual fees.
13.3.2.10
A methodology for evaluating property dedications as an alternative
means of compliance.
13.3.2.11
A methodology for determining incentives for energy efficiency.
13.3.2.12
Any other matter deemed necessary by the Board including but not
limited to subdivision and housing development practices consistent
with fair housing principles.
13.3.3
Adoption.
The affordable housing regulations shall be
adopted by resolution of the Board and shall be amended from time
to time as deemed necessary and to account for changes in indices
used to make calculations required by this Chapter and the affordable
housing regulations.
Adopted by Ordinance 2016-9, December 13, 2016
An eligible buyer shall not lease an affordable dwelling that
is provided pursuant to this Chapter unless the proposed tenant is
an immediate family member of the eligible buyer, the eligible buyer
is under economic duress by reason of unemployment, family medical
emergency, or is unable to sell the affordable dwelling for an amount
equal to or greater than the original sale price, or other unique
circumstances of hardship exist. Any proposed lease of the premises
must be approved in writing by the Administrator.
Adopted by Ordinance 2016-9, December 13, 2016
A subdivision in which affordable housing is provided pursuant
to this Chapter shall not be required to transfer water rights to
the County for any required affordable housing within the subdivision.
However, notwithstanding the forgoing, the County shall have no obligation
to provide water unless it possesses sufficient water rights, capacity,
and infrastructure to supply the required affordable dwellings within
the subdivision.
Adopted by Ordinance 2016-9, December 13, 2016
13.6.1
Density Bonus.
A subdivision of 25 or more parcels that
utilizes a community water system may receive increased density to
accommodate affordable dwellings required under this Chapter. A subdivision
of 5 to 24 parcels may receive increased density to accommodate affordable
dwellings required under this Chapter so long as the affordable housing
agreement requires the subdivider to provide no less than fifteen
percent (15%) affordable housing, and so long as: (i) a community
water system will provide water service to the subdivision, and (ii)
clustering concepts are incorporated into the subdivision.
13.6.1.1
The density bonus permitted by this Chapter shall not exceed 2/3
unit for each affordable dwelling provided and provided the subdivision
with such increased density complies with the non-density requirements
of the SLDC and otherwise permitted by application of the SLDC, not
to exceed an increased density of fifteen percent (15%) attributable
to the subdivision in total.
13.6.1.2
The affordability requirements for a subdivision shall be determined
prior to applying any density bonus.
13.6.1.3
Density bonuses of not more than twenty percent (20%) attributable
to the subdivision as a whole may be approved by the Board on a case-by-case
basis, so long as the subdivision complies with the non-density requirements
of the SLDC and remains compatible with surrounding uses and the impacts
to adjacent areas are minimal.
13.6.2
Incentives for Energy Efficiency.
A subdivider that
provides energy efficiency measures within a subdivision as a whole
shall be permitted to apply all the incentives described in this Chapter
to each affordable dwelling in income range 4. The criteria to evaluate
energy efficiency proposals may be further described in the affordable
housing regulations.
13.6.3
Relief from Development Fees.
Notwithstanding the provisions
of the SLDC, a subdivision that provides affordable housing as required
by this Chapter shall be relieved of the obligation to pay development
fees for each required affordable dwelling.
13.6.4
Relief from Additional County Water Utility Connection Charges.
A subdivision that provides affordable housing as required by
this Chapter shall be exempt from the obligation to pay water service
connection fees for each required affordable dwelling. This exemption
does not include any other service charges or fees and does not exempt
the subdivider or any other person from paying for required meters,
line extensions, or other infrastructure.
13.6.5
Reduction of Lot Size for Affordable Dwellings.
A subdivision
of 5 to 24 parcels that is not eligible for a density bonus under
Section 13.6.1, may reduce the lot area for each affordable dwelling
to the minimum permitted by applicable regulations of the New Mexico
Environmental Department, so long as the affordable dwelling whose
lot sizes are reduced pursuant to this Section are reasonably dispersed
throughout the subdivision.
13.6.6
Other Incentives Authorized by the New Mexico Affordable Housing
Act.
The County may donate land for construction of affordable
housing or an existing building for conversion or renovation into
affordable housing or may provide or pay the costs of infrastructure
necessary to support affordable housing projects pursuant to Ordinance
No. 2009-14, as amended or replaced, and the Affordable Housing Act,
NMSA 1978, § 6-27-1 et seq.
Adopted by Ordinance 2016-9, December 13, 2016
13.7.1
A subdivision may alternatively comply with all or part of this Chapter
by:
13.7.1.1
providing affordable dwellings outside the subdivision but within
central and northern Santa Fe County, as shown on Map 14-1 [Appendix
E];
13.7.1.2
making a cash payment, calculated by applying the methodology set
forth in the affordable housing regulations;
13.7.1.3
dedicating property suitable for construction of affordable dwellings
outside the subdivision but within central and northern Santa Fe County,
as shown on Map 14-1 [Appendix E], whose value is equal to or greater
than the required minimum value calculated by applying the methodology
set forth in the affordable housing regulations; or
13.7.1.4
otherwise providing affordable dwellings in a manner that is consistent
with the goals and objectives of this Chapter.
13.7.2
Proposed alternative means of compliance, if any, shall be incorporated
into, reviewed, and approved as part of the proposed affordable housing
plan. If the County approves an affordable housing plan that includes
alternative means of compliance, the affordable housing agreement
shall describe the alternative means of compliance with specificity.
13.7.3
Where the proposed alternative means of compliance is off-site affordable
housing, both the subdivision and the proposed off-site affordable
housing shall be considered and processed as a single subdivision,
except as otherwise provided in this Chapter.
13.7.4
In deciding whether to accept the provision of off-site affordable
dwellings as an alternative means of compliance, the County shall
consider the following where applicable:
13.7.4.1
whether implementation of a proposed alternative means of compliance
would overly concentrate affordable dwellings in an area or within
the proposed subdivision in a location where such a concentration
would be inappropriate given present and anticipated future conditions
if the proposal involves providing affordable dwellings outside the
subdivision;
13.7.4.2
whether there is adequate existing infrastructure, including water
systems, liquid waste facilities and transportation systems, to support
the affordable dwellings in the proposed location;
13.7.4.3
whether public facilities can serve the proposed offsite affordable
dwellings, and whether the commitment to provide such service has
been confirmed;
13.7.4.4
whether there is a specific need or market for affordable dwellings
in the location proposed;
13.7.4.5
whether the property where the affordable dwellings are proposed
to be located is suitable for residential use and residential development;
and
13.7.4.6
whether the proposed alternative means of compliance provides an
overall greater public benefit than if the affordable dwellings were
constructed within the subdivision.
13.7.5
In deciding whether to accept a cash payment or property as an alternative
means of compliance, the County shall consider whether:
13.7.5.1
the proposed cash payment or appraised value of property to be dedicated
is equal to or greater than the cost of constructing equivalent affordable
dwellings within the subdivision, applying the methodology set forth
in the affordable housing regulations;
13.7.5.2
the proposed cash payment or value of property to be dedicated creates
a substantial surplus of funds within the dedicated housing fund or
trust specific to that purpose;
13.7.5.3
the cash payment or property provides a greater overall public benefit
than if the affordable dwellings were constructed within the subdivision
that would have otherwise provided for mixed-income development.
13.7.6
The method for determining whether the total cash payment amount
or value of property to be dedicated is sufficient shall be established
in the affordable housing regulations.
13.7.7
Incentives described in this Chapter may only be applied to a subdivision
utilizing alternative means of compliance if the Board specifically
finds that this Chapter, when applied to the subdivision with such
alternative means of compliance, would result in economic infeasibility.
Adopted by Ordinance 2016-9, December 13, 2016
13.8.1
The Board may waive one or more of the requirements set forth in
this Chapter if a condition of hardship exists as set forth in this
Section.
13.8.2
A condition of hardship shall exist for purposes of this Section,
as follows:
13.8.2.1
where the subdivision fails to qualify for any incentive set forth
herein;
13.8.2.2
where the subdivision fails to demonstrate eligibility for an alternative
means of compliance;
13.8.2.3
where application of the provisions of this Section would result
in economic infeasibility of the subdivision; or
13.8.2.4
where fully complying with this Chapter would result in a constitutional
taking of property.
13.8.3
A condition of hardship exists for a subdivision of 5 to 24 parcels
when an affordable dwelling (or lot) cannot be sold within a reasonable
period of time without causing a loss on the subdivision taken as
a whole.
Adopted by Ordinance 2016-9, December 13, 2016
13.9.1
Each affordable housing agreement shall include as an attachment
a form of lien or other instrument (herein after referred to as “the
affordability lien”) that shall be executed and recorded along
with the deed conveying an affordable dwelling to the first eligible
buyer. Affordability liens shall create a lien in favor of the County
in the amount equal to the difference between the maximum target housing
price and ninety-five percent of the fair market value of the affordable
dwelling at the time of initial sale, as determined by an appraisal
approved by the County.
13.9.2
The affordability lien shall contain a provision that creates a right
of first refusal in favor of the County to purchase the affordable
dwelling or the right to arrange resale of the affordable dwelling
to an eligible buyer at the then fair market value of the affordable
dwelling. The owner of an affordable dwelling shall be required to
provide the County with fifteen (15) days written notice of the owner’s
intent to sell the affordable dwelling during which period the County
may indicate its intent to purchase the unit or arrange a purchase
and sale of the dwelling to another eligible buyer. The affordability
lien shall further provide the County with an additional 60 days after
it has notified the owner of its intent to purchase the dwelling or
arrange a purchase and sale of the dwelling to complete the transaction.
If the County fails to notify the owner of its intent to purchase
the unit or arrange a purchase of the unit within the allotted time
period, or if it does not complete the transaction within the allotted
time period, the owner shall have the right to sell the unit to any
buyer at an unrestricted price, subject to the affordability lien.
13.9.2.1
Exceptions to the Affordability
Lien
a.
Market Rate Transactions.
No affordability lien shall
be required where the contract sales price is equal to or less than
the maximum target housing price for the appropriate income range.
The County may require the applicant to provide water rights or pay
a connection fee in addition to all other fees generally applicable
to market rate dwellings.
b.
Lien Held by Non-Profit Housing Organization.
No affordability
lien shall be required where a non-profit housing organization (1)
is the seller of an affordable dwelling to an eligible buyer certified
by the County, (2) provides financing to the eligible buyer, (3) contributes
funds or otherwise subsidizes the eligible buyer through below-market
rates, (4) holds a lien equivalent to the County’s affordability
lien or has other enforceable means in place to reasonably assure
long-term affordability of the dwelling; (5) and the sale otherwise
complies with the affordable housing agreement.
c.
To
be eligible for an exception under subsection “a” or “b”,
the affordable dwelling must be sold to an eligible buyer at or below
maximum target housing prices established by the affordable housing
regulations and located on a lot designated in the affordable housing
agreement. The affordable housing regulations and affordable housing
agreement may include additional requirements, not inconsistent with
this Chapter, to reasonably assure long- term affordability and fulfill
the other objectives of this Chapter. All other provisions of this
Chapter and the affordable housing regulations shall remain applicable
to sales of affordable dwellings that are exempt from affordability
lien requirements.
13.9.3
The form of affordability lien and the methodology for determining
the initial market value of the affordable dwelling shall be specified
in the affordable housing regulations.
13.9.4
When the conditions set forth in the affordability lien, this Chapter,
and the affordable housing regulations have been satisfied, the County
shall release the affordable dwelling from the lien and file an appropriate
release in the records of the County Clerk. Any amounts owed to satisfy
the affordability lien shall be paid to the County before or contemporaneously
with the release.
13.9.5
An affordability lien may be temporarily released without payment
of any sums to the County so long as a new affordability lien is executed
by a new eligible buyer in the same amount of the original lien and
duly recorded with the County Clerk. Alternatively, and in the sole
discretion of the County, the County may approve an assignment of
the affordability lien to a new eligible buyer.
13.9.6
All amounts collected from application of an affordability lien shall
be deposited into a fund created in the County treasury for the sole
purpose of supporting affordable housing within Santa Fe County or,
alternatively, transferred to the Santa Fe County Housing Authority
to support affordable housing within Santa Fe County. The fund or
trust shall be governed by rules and requirements set forth in a separate
Ordinance enacted pursuant to NMSA 1978, § 6-27-1 et seq.
13.9.7
Where an owner of an affordable dwelling is under extreme duress
by reason of unemployment, family medical emergency, divorce, or death,
and is unable to sell the affordable dwelling for an amount equal
to or greater than the original sales price, or if other unique and
extreme circumstances of hardship exist, the affordable lien may be
compromised or released by the County.
Adopted by Ordinance 2016-9, December 13, 2016
The Administrator shall prepare an affordable housing report
and present it to the Board of County Commissioners annually. The
purpose of the report is to measure the overall effectiveness of the
affordable housing provisions of the SLDC and to identify any deficiencies.
In the annual report, the Administrator shall recommend any amendments
necessary to this Chapter.
Adopted by Ordinance 2016-9, December 13, 2016
