A. Findings.
1. Housing Cost/Wage Gap. The City Commission recognizes that there is a growing gap between housing costs and wages in the city;
2. Florida Statutes. F.S. § 166.04151 provides that a municipality may adopt and maintain any ordinance that is adopted for the purpose of increasing the supply of workforce housing using land use mechanisms not withstanding any other provision of law;
3. Public Interest. The City of Boynton Beach has a legitimate public interest in preserving the character and quality of neighborhoods which requires assuring the availability of workforce housing for low and moderate income persons in the city;
4. Sense of Community. The city recognizes that the need to provide workforce housing is critical to maintaining a diversified and sustainable city having the character and sense of community where people can live and work in the same area; and
5. Housing Availability. The city is encouraging the production and availability of workforce housing and at the same time is cognizant that escalating land costs and rapidly diminishing amounts of land hinder the provision of sufficient workforce dwelling units by the private sector.
B. Applicability. The program is voluntary. Developers who choose to participate may be awarded incentives outlined further in this article. The following regulations shall apply to development applications for projects with the following underlying future land use categories:
1. Projects with Mixed Use High, Mixed Use Medium, Mixed Use Low and Special High Density future land use classifications are eligible for the program citywide in areas where such classifications are allowed.
2. Projects implementing recognized affordable housing programs with 100% affordable units are eligible citywide in all future land use classifications except Low Density Residential.
C. Provisions. The developer may elect to obtain a density bonus, Floor Area Ratio (FAR), and/or a height bonus through the construction of the workforce units on-site or off-site, monetary contribution, donation of land or purchase of units to be designated as workforce, subject to the limits and requirements of this article.
I. Construction of workforce units on-site:
1. To be eligible for the requested density bonus through the construction of workforce units on-site, the developer must incorporate such units into the development as follows:
a. Projects located within the Downtown Transit Oriented Development District (DTODD) using the density bonus of up to twenty-five percent (25%) alone or in conjunction with the height bonus of one (1) additional story (up to a maximum of 12 feet) shall designate a minimum of fifteen percent (15%) of the total proposed units as workforce housing units.
b. Projects located within the DTODD in the Boynton Beach Boulevard Overlay with the Mixed Use Medium or Mixed Use High future land use classifications may use the density bonus of up to twenty-five percent (25%) in conjunction with the height bonus or the height bonus alone; the height bonus can include two (2) additional stories (up to a maximum of 24 feet). Projects using the maximum height bonus shall designate a minimum of twenty percent (20%) of the total proposed units as workforce housing units.
c. Projects located outside of DTODD with Mixed Use Medium, Mixed Use Low, or Special High Density Residential future land use classifications are eligible for a density bonus for up to twenty-five percent (25%). Such projects shall designate a minimum of ten percent (10%) of the total proposed units as workforce housing units. Properties of three (3) or more acres are also eligible for a height bonus of one (1) additional story up to a maximum of twelve feet (12').
d. Projects with one hundred percent (100%) affordable units outside of the DTODD with Medium or High Density Residential future land use classifications are eligible for a density bonus of up to twenty-five percent (25%).
e. Eligible land use classifications and zoning districts (Table 1-2).
Land Use Classification | Zoning Districts |
Medium Density Residential* | R-2, R-3, and PUD |
High Density Residential* | IPUD and PUD |
Special High Density Residential | IPUD and PUD |
Mixed Use Low | MU-1 and SMU |
Mixed Use-Medium | MU-2 and MU-3 |
Mixed Use High | MU-4 and MU-Core |
* Applicable only to projects with 100% affordable units.
2. Household (Income) Type. Twenty-five percent (25%) of the total required workforce housing units shall be set aside for low income households. Seventy-five percent (75%) of the total required workforce housing units shall be set aside for moderate income households.
3. Fractions. If the number of workforce housing units results in a fractional remainder greater than one-half (0.50), the number shall be rounded up. If the required number of workforce housing units results in a fractional number less than one-half (0.50), the number shall be rounded down.
4. Number of Units. The workforce housing units provided shall have the same percentage of unit types as market rate units within the development. The unit types include the category of structure (single-family detached and attached, multifamily), for rent versus for sale units, and the number of bedrooms. Relief from this provision may be granted if the intended purpose is to address particular needs of the community, substantiated by the provided data/analysis.
5. Staff Approval. At the time of application for land use amendment and rezoning, the project must be reviewed and signed off by the Community Improvement Division of the city as part of the site plan approval process for compliance with affordability guidelines and number of units qualifying as workforce.
6. Site Plan. The site plan shall clearly identify the location of workforce housing units. Additionally, tabular data must be included on the site plan showing the address or unit number, total number of units, number of bedrooms of workforce housing units and the targeted income levels. This shall be included with the market rate data.
7. Sale Restrictions. Workforce housing units shall be regulated in terms of:
a. Initial sales price or rent levels; and
b. Subsequent resale prices or leasing rates.
c. If compliance with a land development standard would preclude construction of a residential or mixed use development in which workforce housing units are included, pursuant to this chapter, the applicant may submit a proposal for waiver or reduction of the development standard. The applicant shall show that the waiver or reduction of the development standard is necessary to make the workforce housing units economically feasible and that such a waiver will not compromise any of the city's life or safety standards.
8. Recording the Restrictive Covenant. Prior to the issuance of any building permit, the restrictive covenant and agreement shall be recorded in the public records of Palm Beach County. The term of the restrictive covenant shall be fifteen (15) years, recurring. A copy of the recorded covenant and agreement shall be provided to the city prior to the issuance of the building permit.
II. In-Lieu and off-site options.
1. Payment In-Lieu (Table 1-3). Contributions per unit listed in the table below shall accrue to the Boynton Beach Housing Trust to be utilized to subsidize the creation of workforce housing within the city. In-lieu of fees shall be paid in full prior to the issuance of building permit.Utilization of the Payment in-Lieu of Workforce Housing Units Program shall not be applied in conjunction with other provisions to increase density.
Payment In Lieu of Construction of Workforce Housing Units (per unit) | |
For-sale unit | $ 82,986 |
For rent units | $ 36,760 |
Note: Payment-in-lieu amounts shall be revised every two (2) years, based on (i) median single-family home sale price for Palm Beach County provided by Realtors' Association of the Palm Beaches, and (ii) average monthly apartment rent for the Boynton Beach market provided by Reinhold P. Wolff Economic Research, Inc.
2. The number of units for which the payment in-lieu can be collected shall be as be as follows:
a. Projects located within the Downtown Transit Oriented Development District (DTODD) are eligible for a density bonus of up to twenty-five percent (25%), a Floor Area Ratio (FAR) bonus of one-half (0.5), and a height bonus of one (1) additional story (up to a maximum of twelve (12) feet). Payment in-lieu of fee will be applied to each unit proposed in excess of the zoning district’s permitted density.
b. Projects located within the DTODD in the Boynton Beach Boulevard Overlay with the Mixed Use Medium or Mixed Use High future land use classifications are eligible for a density bonus of up to twenty-five percent (25%), a Floor Area Ratio (FAR) bonus of one-half (0.5), and a height bonus of two (2) additional stories (up to a maximum of twenty-four (24) feet). Payment in-lieu of fee will be applied to each unit proposed in excess of the zoning district’s permitted density.
c. Projects located outside of DTODD with Mixed Use Medium, Mixed Use Low, or Special High Density Residential future land use classifications are eligible for a density bonus of up to twenty-five percent (25%). Properties of three (3) or more acres are also eligible for a height bonus of one (1) additional story up to a maximum of twelve (12) feet. Payment in-lieu of fee will be applied to each unit proposed in excess of the zoning district’s permitted density.
3. Donation of Land. The value of the land shall equal or exceed the total "in-lieu of" fee for all workforce units or shall be of sufficient size to develop the same number of units. The value of the donated land must be verified by a MAI appraisal no more than three (3) months old. The appraisal shall be obtained by developer at developer's cost to verify the value of donated land. The land shall be deeded to the city prior to the issuance of a final certificate of occupancy for the development.
4. Off-Site Construction. The workforce housing units may be built off-site, provided they are constructed within the city limits. All off-site workforce housing units shall comply with all sections of these Regulations.
5. Purchase Market Rate Units. Purchase an equivalent number of existing market rate units to be deeded to the city or sold to eligible households. Such units shall be deed restricted to comply with the Workforce Housing Ordinance. The developer may retain the title to off-site units subject to recordation of a city approved deed restriction.
D. The following requirements shall apply to built or purchased workforce units:
I. Rental Housing Units.
1. Recording of the Restrictive Covenant. A restrictive covenant shall be recorded in the public records specifying the income level served, rent levels, reporting requirement and all restrictions applicable to the workforce housing units. All leases on workforce housing units shall contain language incorporating the restrictive covenant applicable to the workforce housing units and shall reference the recorded restrictive covenant. The restrictive covenant shall remain in force for fifteen (15) years.
2. Rental Rates.
a. Units targeted to low income households at sixty percent (60%) to eighty percent (80%) of the AMI shall not have rental rates that exceed one hundred percent (100%) of the HUD determined fair market rent for the area.
b. Units targeted to moderate income households at eighty percent (80%) to the one hundred twenty percent (120%) of the AMI shall not exceed one hundred percent (100%) of the HUD determined fair market rent for the area.
3. Tenant Income Qualification. Tenant income qualification records shall be maintained on-site and a yearly report shall be forwarded to the Community Improvement Division of the City of Boynton Beach for compliance determination.
II. For-Sale Housing Units.
1. Restrictive Covenant. All deeds shall include the restrictive covenant applicable to workforce housing units. All sales contracts shall state that the unit is part of a workforce housing program and subject to the Land Development Regulations of the city. The restrictive covenant shall remain in force for fifteen (15) years, recurring. The form of deed for workforce housing units shall be approved by the City Attorney.
2. Resale. The restrictive covenants shall state that during the affordability term, the resale of a workforce housing unit shall be subject to the following resale requirements.
a. All workforce housing unit owners shall notify the city immediately that the unit is for sale. The city shall have first right of refusal to purchase the unit. Upon receipt of notice that a valid offer has been made on the unit, the city shall have fifteen (15) days to invoke its right of refusal to purchase the units.
b. All workforce housing units are to be resold only to low or moderate income qualified households at an attainable housing cost for each targeted income range.
3. Required Occupancy. Purchasers of workforce housing units shall be required to occupy the unit.
4. Closing Costs. No charges or fees shall be imposed by the seller on the purchaser of a workforce housing unit which is in addition to or more than charges imposed upon purchasers of market rate units, except for administrative fees charged by the city/CRA, or their designee.
5. Sales Price Calculations. Sales prices for workforce housing units will be calculated on the basis of:
a. An available fixed-rate thirty (30)-year mortgage, consistent with a “blended rate” for Palm Beach County banks, and/or the Florida Housing Finance Authority. A lower rate may be used in calculating workforce housing prices if the developer can guarantee the availability of fixed-rate thirty (30)-year mortgage at this lower rate for all workforce housing units required for the covered project;
b. A down payment of no more than ten percent (10%) (including any down payment assistance provided by SHIP or other sources) of the purchase price;
c. A calculation of property taxes; and
d. A calculation of homeowner insurance, mortgage insurance, homeowner association fees, property management fees and other closing costs.
6. Compliance. Prior to request for final certificate of occupancy for the development, the developer shall provide to the city’s Community Improvement Department, or designee, documentation sufficient to demonstrate compliance with the workforce housing program. Such documentation shall include but is not limited to information regarding the identity and income qualification documentation for all occupants of the workforce housing units, proof of recordation of restrictive covenant in approved form.
7. Resale Requirements. To maintain the availability of workforce housing units which may be constructed or substantially rehabilitated pursuant to the requirements of this program, the following resale conditions shall be imposed on the workforce housing units and included in the deed and restrictive covenant recorded in the Public Records of Palm Beach County:
a. Location of Units. All workforce housing units constructed or substantially rehabilitated under this program shall be situated within the development so as not to be in less desirable locations than market-rate units in the development and shall, on average, be no less accessible to public amenities, such as open space, as the market-rate units.
b. Integration. Workforce housing units within a development shall be integrated with the rest of the development and shall be compatible in exterior design and appearance, construction, and contain comparable HV/AC systems as market rate units.
c. Construction Phasing. The construction schedule for workforce housing units shall be consistent with or precede the construction of market rate units. All workforce housing units must be deeded to the city, deed-restricted, or receive a certificate of occupancy prior to issuance of more than eighty percent (80%) of the certificate of occupancies in the subject development.
d. Lot Premiums. There shall be no lot premiums charged on the workforce housing units.
e. Sales Price. All required workforce housing units shall be offered for sale or rent at an attainable housing cost for each of the targeted income ranges.
f. City Approval. The city, its successors and assigns may enforce the covenants. No amendments to the restrictive covenant shall be made unless by written instrument approved by the city.
E. Monitoring and Compliance.
1. Qualified Buyers. Final approval conditions: Final conditions of approval shall specify that the workforce housing units are sold to buyers whose income does not exceed one hundred twenty percent (120%) of the AMI. The conditions will also specify the requirements for reporting to the city's Community Improvement Division on buyer eligibility, housing prices, as well as any applicable requirement to record the restrictive covenant or to enforce resale restrictions.
2. Surety. Developers may substitute surety as outlined in Chapter 2, Article III, Section 6, Land Development Regulations, in the amount of one hundred ten percent (110%) of the developers' obligation for workforce housing provision according to this section. The city shall, at all times, have the authority to draw upon the surety to enforce the provisions of this article should the applicant be in default of these requirements.
3. Enforcement. The city may enforce the requirements of the Workforce Housing Ordinance through any cause of action available at law or equity, including but not limited to seeking specific performance, injunctive relief, rescission of any unauthorized sale or lease, during the term of the restrictive covenant.
4. Annual Report. The Community Improvement Department shall submit an annual report to the City Commissioners indicating the status of the Workforce Housing Ordinance, including but not limited to the revenues accrued to the Housing Trust Fund, the number of units created, leased and sold.
(Ord. 10-025, passed 12-7-10; Am. Ord. 11-031, passed 12-6-11; Am. Ord. 13-034, passed 12-3-13; Am. Ord. 14-035, passed 1-6-15; Am. Ord. 15-031, passed 12-1-15; Am. Ord. 16-021, passed 12-6-16; Am. Ord. 17-020, passed 9-19-17; Am. Ord. 20-001, passed 1-7-20; Am. Ord. 23-001, passed 2-21-23)