The purpose of this article is to promote the development of workforce housing in the City of Easton by requiring certain multifamily housing projects benefiting from public funding or tax incentives to include housing units affordable to moderate-income households.
[HISTORY: Adopted by the Council of the City of Easton as indicated in article histories. Amendments noted where applicable.]
[Adopted 9-10-2025 by Ord. No. 5913]
Housing for which an occupant is required to pay no more than 30% of their gross household income for total housing costs, including rent or mortgage payments, utilities, and any applicable fees. This standard shall apply to all units designated as Workforce Housing under this article. Housing affordability shall be determined based on verified gross annual income at the time of initial occupancy and recertified annually.
Shall mean any multi-unit new construction or renovation which is covered by this article as set forth in § 176-3. Each Development shall be treated as a standalone entity even if multiple Applicable Developments are owned by the same entity.
Shall include the City of Easton, as well as any affiliated entity or partnership entity so designated by City Council via resolution to perform tasks on its behalf as required by this article. For example, HOME Easton.
Shall mean the entity in control and operation of development to which this article is applicable. Any transfer or conveyance of an applicable development shall not remove the obligations or applicability of this article to said development.
Residential units that are affordable to households earning between 80% and one 120% of the Area Median Income (AMI), adjusted for household size, as determined annually by the U.S. Department of Housing and Urban Development (HUD). These units are intended to serve moderate-income individuals and families who are essential to the local economy, but who are often priced out of market-rate housing and are ineligible for traditional low-income housing programs.
This article applies to all any new multifamily housing developments within the City of Easton containing 10 or more dwelling units, that also:
A.
Utilizes any form of public funding, including but not limited to the Redevelopment Assistance Capital Program (RACP); and/or
B.
Participates in the Local Economic Revitalization Tax Assistance (LERTA) program or any equivalent local or state tax incentive program;
C.
Receives or benefits from any other form of tax incentive specifically awarded to the Applicable Development, from the state or City; or
D.
Acquire or utilizes any publicly owned or controlled land, which shall include land owned or controlled by any municipal agency or partner such as the Greater Easton Development Partnership. This requirement shall not apply if the acquiring entity seeking to develop said land paid a fair market price in an open, arm's length transaction.
All developments within the City of Easton, that mean the applicability standards established in § 176-3, shall provide Workforce Housing units as follows:
A.
Set-aside requirement. A minimum of 10% of the total dwelling units in a qualifying project shall be designated as Workforce Housing. If necessary, this number shall be rounded up to the nearest whole number. In the event the total unit number of any given Applicable Development changes prior to the issuance of the final certificate of occupancy, this set-aside requirement shall also be recalculated. These designated units will reflect the size, quality, and character of the overall Applicable Development's unit composition. The specifics of the designation will be set out for each Applicable Development within the agreement discussed in § 176-5.
B.
Income eligibility. Each such designated Workforce Housing unit shall be affordable and reserved for individuals or households whose annual income falls between 80% and 120% AMI for the City, as published annually by the U.S. Department of Housing and Urban Development (HUD), adjusted for household size. The income eligibility shall be confirmed annually as set forth below. Should a tenant who previously qualified for Workforce Housing no longer qualify, at the time of lease renewal, such tenant may elect to renew their lease but at market rates or vacate. If the tenant renews at market rates, the Owner shall designate the next comparable unit that comes available as a replacement Workforce Housing unit within that Applicable Development.
C.
Distribution and integration. Workforce Housing units required under this section shall be, to the extent feasible, proportionally distributed, comparable in size, design, appearance, and quality, and offered concurrently with the lease-up of market-rate units.
The City, or its designated agent, shall enter into a formal agreement with each Owner governing the operation of this program for each Applicable Development, and this agreement shall set forth the specific terms for that Applicable Development to allow the City and Owner to adapt to any unique circumstances present within each Applicable Development. Such agreements shall include, at a minimum, the following elements:
A.
City shall be responsible for:
(1)
Verifying tenant income eligibility for each Workforce Housing Unit at initial lease and annually thereafter, using documentation standards consistent with HUD or PHFA guidelines.
(2)
Ensuring compliance with the 20-year affordability requirement as set forth below;
(4)
Enforcing penalties, which shall be set forth within each agreement or elsewhere within this article.
(5)
Maintaining a list of income-eligible applicants for Workforce Housing Units and, upon notice from the Owner, refer qualified applicants promptly. Applicants will be selected from this list on the basis on when their application was approved. If no referral is made within 30 days, or if the City notifies the Owner that is has no referrals, the Owner may lease the unit to another qualified household sourced independently subject to the City's confirmation of eligibility.
(6)
The Redevelopment Authority shall be overall responsible for overseeing and implementing the provisions of this article.
B.
The Owner shall be responsible for:
(1)
Providing annual reports to the City containing unit pricing and occupancy rates (for Workforce and market-rate units).
(2)
Developers shall submit a Workforce Housing Marketing Plan, approved by the City, no later than 90 days prior to initial lease-up. This plan shall include targeted outreach to moderate-income households and comply with all federal and state fair housing laws.
(3)
Notify the City at least 60 days before initial lease-up of any Workforce Housing Units or prior to any future known vacancy thereof and cooperate with the City in placing referred tenants.
(4)
Maintain all records related to tenant income eligibility, marketing, and lease-up for a period of at least 20 years and make such records available to the City upon request.
(5)
Ensure that Workforce Housing Units remain compliant with the affordability and eligibility requirements outlined in this article throughout the required term.
(6)
Ensuring all Workforce Housing Unit tenants have signed leases which include all terms of the Owners standard leases but also provides notice that the Workforce Housing rate is subject to income verification and the potential for rental reversion to market rates, upon renewal, if the tenant no longer qualifies.
The designation of Workforce Housing Units, and the associated income eligibility requirements, shall remain in effect for a period of 20 years from the date the project receives its initial Certificate of Occupancy.
A.
Owners who choose not to designate the required 10% of units as Workforce Housing Units shall be required to pay an in-lieu fee of $10,000 per unit not designated.
B.
The in-lieu fee shall be reviewed every five years by City Council and may be adjusted by resolution to reflect changes in inflation or construction costs. Adjustments shall be based on the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, as published by the U.S. Bureau of Labor Statistics, or another index of construction costs deemed appropriate by the City. Any such adjustments shall apply to all applicable developments including those already making payments under this article.
C.
All in-lieu fees shall be collected and by the City of Easton Finance Department in an account properly designated and to be used for the development, rehabilitation or other suitable workforce housing project.
All in-lieu fees collected shall be deposited into a dedicated fund, administered by the City, to support the development, preservation, and accessibility of workforce and affordable housing projects and initiatives within or otherwise supporting City residents.
If any section, clause, or provision of this article is held invalid, the remainder shall remain in full force and effect.