(A) Location of the Family Housing Development. A Family Housing Development (FHD) may be established on a tract of land in any residential zone within the city limits and the City of Albuquerque's Water Service Area at the time of the application, provided that all of the FHD units are dwelling units as defined by the City Integrated Development Ordinance. Provided however that no more than 50% of the cumulative total of Family Affordable Ownership Units will be built in any one quadrant of the City (excluding area within the City’s 1960 boundary) and will be evaluated on a yearly basis as defined procedurally in the rules and regulations. The tract of land on which the Family Housing Development is established may be existing platted lots or land subdivided after the effective date of this article.
(B) Requirements for a Family Housing Development. The family affordable ownership units shall have the same exteriors as the market rate units and, at a minimum, have the same package of basic amenities without the upgrades as the market rate units. The family affordable ownership units shall blend into the development and not be identifiable as affordable housing due to appearance or quality of the unit and site development. Where there are more than one housing product type within a subdivision, the family affordable ownership units may be concentrated within a single product type. However, the subdivision shall provide family affordable ownership units in a range of house sizes and number of bedrooms. Out of the total number of units in a family housing development at least 20% shall be family affordable ownership units.
(C) Financial Guarantee. In exchange for the density bonus, as specified in Integrated Development Ordinance § 14-16-5-1, the developer and/or builder shall provide a financial guarantee in favor of the city that is equal to the appraised value of the increased density. The financial guarantee shall become due and payable to the city, if the developer and/or builder fails to sell a family affordable ownership unit to a qualified home buyer. The value of the increased density shall be determined by a qualified appraiser who shall perform an appraisal of the property. The city shall release the financial guarantee as the developer and/or builder provides documentation to the city that the family affordable ownership units have been sold to qualified home buyers.
(D) Sales and Resales of Family Affordable Ownership Units. A family affordable ownership unit shall be sold by the developer and/or builder to a qualified home buyer. The family housing agreement shall provide:
(1) That the proportionate amount of the value of the density bonus and the fee rebate, provided for in the Integrated Development Ordinance § 14-16-5-1 and subparagraph E(2) of this section, for the family housing development that is attributable to each family affordable ownership unit shall be passed on by the developer and/or builder to each qualified home buyer in the form of a deferred loan of a portion of the purchase price of the family affordable ownership unit;
(2) That the developer and/or builder of each family housing development shall require each qualified home buyer to agree, as a condition of the sale of a family affordable ownership unit to the qualified home buyer, to pay a percentage of the appreciation in the value of the family affordable ownership unit upon the sale of the family affordable ownership unit;
(3) That the agreement of the qualified home buyer to pay the deferred loan and the percentage of appreciation in the value of the family affordable ownership unit upon the sale of the family affordable ownership unit shall be evidenced by the promissory note of the qualified home buyer and secured by a mortgage covering the family affordable ownership unit; and
(4) That in consideration of the development incentives granted by the city to the developer and/or builder, the developer and/or builder shall cause the promissory note of the qualified home buyer to be made payable to the order of the city and the mortgage to be granted to the city. The percentage of the appreciation in the value of each family affordable ownership unit shall be determined by dividing the amount of the deferred loan by the sales price of the family affordable ownership unit. The promissory note of the qualified home buyer shall provide:
(a) That only the amount of the deferred loan may be assumed by subsequent qualified home buyers who purchase the family affordable ownership unit;
(b) That if the family affordable ownership unit is sold to another qualified home buyer, the amount of the percentage of the appreciation in the value of the family affordable ownership unit shall be paid to the city upon the closing of the sale; and
(3) That if the family affordable ownership unit is sold to a purchaser who is not a qualified home buyer, the promissory note, including the deferred loan and the percentage of the appreciation in the value of the family affordable ownership unit, shall be paid in full to the city upon the closing of the sale. The city shall deposit all amounts paid on the promissory notes of qualified home buyers into the Albuquerque Housing Trust Fund which is a fund administered under a trust agreement for the city by a private financial institution for the purpose of accumulating resources for future housing developments.
(E) Development Incentives. A family housing development is eligible for the following development incentives, if it meets the requirements of this article and the implementing rules and regulations:
(1) Density Bonus. Any family housing development located in the R-1, RA, or RT zones is eligible for a density bonus. In these zones, the FHD may be developed at a density that is at most 20% higher than normally allowed under the Integrated Development Ordinance. All of the controlling setback and open space requirements must be met for the zone in which the FHD is located. (See the Integrated Development Ordinance, § 14-16-2-3(A), § 14-16-2-3(B), § 14-16-2-3(D), and § 14-16-5-1(C)).
(2) Fee Rebates.
(a) Family housing development subdivisions are eligible for rebate of design review fees, provided that those fees have not been paid to the city prior to approval of a family housing agreement, as specified in subparagraph F(1) of this section, for participation in the family housing development program. Family affordable ownership units located in a family housing development are eligible for a rebate of the utility expansion charge, parks dedication fee, parks development fee and building permit fee, provided that those fees have not been paid to the city prior to approval of a family housing agreement.
(b) Family affordable ownership units that are in a FHD located in the infill area are eligible for a 100% rebate of the fees identified in this paragraph; affordable units outside the infill area but within the city limits and the Water Service Area are eligible for a 80% rebate of fees identified in this paragraph. Any fees eligible for rebate shall be paid in full according to the normal city schedules; those fees shall be repaid to the developer and/or builder as homes are sold in the FHD subdivision, up to the fee rebate level established in this paragraph without adjustment for inflation, when the city determines that the requirements of this article and the implementing rules and regulations have been met. In any family housing development a maximum of 50% of the units may receive fee rebates. The amount of the fees rebated from the Utility Expansion Charge and the Parks Dedication and Development Fee shall, based on the approval of the City Council, be restored to those city funds from a different revenue source than the source that rebated the fees.
(3) Fast Track Development Review for FHDs. The City Engineer's Office in the Department of Public Works shall assign an individual on the staff to follow, track and assist in expediting the city's review of proposals for family housing developments.
(F) Rules and Regulations. The Department of Family and Community Services (DFCS), or another city department as delegated by the Mayor, shall establish rules and regulations to provide for the long-term affordability of the family affordable ownership units developed under this program and to evaluate the effectiveness of this program. The Department of Family and Community Services, or another city department as delegated by the Mayor, shall publish a draft of the rules and regulations for public comment within 60 days of the effective date of this article. The rules and regulations shall require:
(1) The developer and/or builder to sign a family housing agreement with the city.
(2) As the family affordable ownership units are sold, the developer and/or builder to provide documentation to the city that shall verify the qualified home buyer's income and other eligibility requirements, as established by the rules and regulations, and that shall include a copy of the final sales agreement showing that the deferred loan was passed on to the qualified home buyer and copy of the mortgage and promissory note showing the obligations of the qualified home buyer to pay the city the amounts specified in subsection (D) of this section.
(G) Reporting and Monitoring. The DFCS, or another city department as delegated by the Mayor, shall submit an annual report to the Mayor and City Council on January 31 of each year following a year in which the program was in place. The report will evaluate the effectiveness of the FHD program, monitor the location of FHD subdivisions and their impacts on neighborhoods, identify the amounts paid out of city funds for the fee rebates to provide the information necessary for making appropriations to those funds, and recommend any appropriate changes in the family housing development program.
(Ord. 34-1998; Am. Ord. 44-2001; Am. Ord. 2017-025)