This article is adopted to implement the provisions and goals of the comprehensive housing policy, affirmatively further fair housing, create and maintain available and affordable housing throughout Dallas, promote greater fair housing choices, and overcome patterns of segregation and concentrations of poverty. (Ord. Nos. 31142; 32195)
This article applies to developments seeking a development bonus under Division 51A-4.1100 and other properties enrolled in a mixed-income housing program. (Ord. Nos. 31142; 32195)
(a) Alternative methods of provision. Developments seeking a bonus under this article may:
(1) provide the required units on the same building site as the market rate units;
(2) provide the units as part of a phased development as provided in Section 51A-4.1105(e); or
(3) pay a fee in lieu of on-site or phased development.
(b) On-site provision and phased on-site provision. Units provided on-site must comply with all requirements in Division 51A-4.1100
unless specifically exempted in the applicable zoning district.
(c) Fee in lieu. The requirement for reserved dwelling units may be satisfied by making a payment to the city's Mixed Income Housing Development Bonus Fund established by Resolution No. 22-0744.
(1) If the floor area devoted to non-residential uses is more than 20 percent of the total floor area, the fee is calculated by multiplying the applicable per square foot amount in Section 20A-34 by the total floor area as floor area is defined in Section 51A-2.102(38); otherwise the fee is calculated by multiplying the applicable per square foot amount in Section 20A-34 by the residential floor area as floor area is defined in Section 51A-2.102(38).
(2) The amount of the fee applies to each building using the bonus separately and will vary by the number of stories in that building according to Section 20A-34.
(3) After payment is received, the director shall issue a letter confirming that the development has met the affordability requirements of Division 51A-4.1100 to receive a mixed income housing development bonus. This letter must be recorded and made a part of the deed records of the county or counties in which the Property is located. The recorded letter will serve as the restrictive covenant required in Section 51A-4.1105 and in this article.
(d) Financial incentives.
(1) Developments that use the on-site or phased on-site provisions in Section 51A-4.1105(e) may also qualify for financial incentives.
(2) Financial incentives are not available to developments that choose the fee in lieu option. (Ord. 32195)
(a) Definitions. In this article:
(1) AFFIRMATIVE FAIR HOUSING MARKETING PLAN means a marketing strategy designed to attract renters of all majority and minority groups, regardless of race, color, religion, sex, disability, familial status, national origin, or source of income.
(2) AFFORDABLE RENT means: (i) a monthly rental housing payment, in compliance with a rent and income schedule produced annually by the department, or (ii) the voucher payment standard for voucher holders.
(3) ANNUAL INCOME has the definition assigned to that term in 24 CFR §5.609, "Annual Income," as amended.
(4) APPLICANT means a household applying to lease a reserved dwelling unit.
(5) AREA MEDIAN FAMILY INCOME ("AMFI") means the median income for the Dallas, TX HUD Metro Fair Market Rent Area, adjusted for family size, as determined annually by the Department of Housing and Urban Development.
(6) DEPARTMENT means the department of housing and neighborhood revitalization.
(7) DEVELOPMENT means the structure or structures located on the Property receiving a development bonus.
(8) DEVELOPMENT BONUS means yard, lot, and space bonuses that can be obtained by meeting the requirements in this division and Chapter 51A.
(9) DEVELOPMENT BONUS RESTRICTIVE COVENANT means a covenant running with the land that meets the requirements of this chapter.
(10) DIRECTOR means the director of the department of housing and neighborhood revitalization and includes representatives, agents, or department employees designated by the director.
(11) ELIGIBLE HOUSEHOLDS means households with an income within the required income band or voucher holders regardless of income.
(12) FAMILY means family as defined in 24 CFR §5.403, "Definitions," as amended.
(13) HANDBOOK means the HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs, as periodically revised and published by HUD.
(14) HUD means the United States Department of Housing and Urban Development.
(15) INCOME means income as defined by 24 CFR §5.609, "Annual Income."
(16) INCOME BAND means the range of household adjusted incomes between a pre- determined upper limit and a pre-determined lower limit generally stated in terms of a percentage of area median family income adjusted for family size.
(A) INCOME BAND 1 means an income between 81 and 100 percent of AMFI.
(B) INCOME BAND 2 means an income between 61 and 80 percent of AMFI.
(C) INCOME BAND 3 means an income between 51 and 60 percent of AMFI.
(17) MARKET VALUE ANALYSIS ("MVA") means the most recent official study that was commissioned by and prepared for the city to assist residents and policy-makers to understand the elements of their local residential real estate markets.
(18) MIXED-INCOME HOUSING PROGRAM means a program administered by the department in which each owner using a development bonus participates.
(19) MIXED-INCOME HOUSING RESTRICTIVE COVENANT means the instrument securing the terms and enforcement of this division.
(20) OPTIONAL AMENITIES means services or features that are not included in the monthly rent, including access to premium parking and concierge services, among other services.
(21) OWNER means the entity or person who owns the development or Property during the rental affordability period, including the owner's employees, agents, or contractors.
(22) PROGRAM MANUAL means the guidebook published, maintained, and updated by the department that includes specific guidance for program implementation.
(23) PROPERTY means the land and all improvements as more particularly described in the mixed-income restrictive covenant.
(24) RENTAL AFFORDABILITY PERIOD means the period that the reserved dwelling units may only be leased to and occupied by eligible households.
(25) RESERVED DWELLING UNIT means the rental units in a development available to be leased to and occupied by eligible households, or which are currently leased to and occupied by eligible households and are leased at affordable rental rates.
(26) UNIT TYPE means the kind of unit broken out by number of bedrooms in the unit, or, if the unit is a specialty unit, a description of the type of specialty unit, such as efficiency, one bedroom, two bedroom, loft, penthouse, etc.
(27) VOUCHER HOLDER means a holder of a housing voucher, including vouchers directly or indirectly funded by the federal, state, or local government.
(28) VOUCHER PAYMENT STANDARD means the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family).
(a) In general. An owner shall comply with this section before applying for a construction permit. An owner shall:
(1) submit an application to the department detailing the proposed project, which includes the following information:
(A) the legal description and address of the property;
(B) any restrictive covenants or contracts that will require the owner to lease dwelling units at a specific rent for a specific term of years, along with the number of units; and
(C) any other information determined by the director to be necessary to aid in the determination of whether the owner is eligible to participate in the mixed-income housing program;
(2) obtain a certified verification of the building site's market value analysis ("MVA") category;
(3) sign a reserved dwelling unit verification form provided by the department where the owner acknowledges receipt of information regarding the minimum and maximum percentage of reserved dwelling units for that category, states the intended pro-rata distribution of the reserved dwelling units, if applicable, and provides any other pertinent information requested by the director;
(4) acknowledge its intent to participate in the mixed income housing development bonus program.
(b) Reserved dwelling unit verification. A development using a mixed-income development bonus in Division 51A-4.1100
may reserve no more than 50 percent of the dwelling units in each development for households at or below 80 percent of Area Median Family Income. This maximum percentage of reserved dwelling units may be waived for developments that are enrolled in a program administered by the department and authorized by the city council that furthers the public purposes and goals of the city's housing policy.
(c) Conflicts. In case of a conflict between the documents required in this section and the requirements of:
(1) the base zoning district, the base zoning district controls; and
(2) the restrictive covenant, the restrictive covenant controls.
(d) Expiration of market value analysis category, reserved dwelling unit, and participation verifications. Verifications expire one year after the date of issuance if the owner has not filed a mixed-income restrictive covenant in the real property records related to the property for which the verifications were issued and made reasonable progress, as defined in Section 311.3 of Chapter 52 of the Dallas City Code, on the Property that will be subject to the mixed-income restrictive covenant. (Ord. Nos. 31142
; 32195
)
(a) In general. A mixed-income restrictive covenant must be executed and recorded in accordance with this section on a form provided by the city. The instrument must:
(1) be signed by all owners of the Property;
(2) be signed by all lienholders, other than taxing entities, having an interest in the Property;
(3) contain a legal description of the Property;
(4) specify the number of any required reserved dwelling units and the income band applicable to each unit;
(5) be a covenant running with the land;
(6) be for a term of 20 years with one-year automatic renewals (to allow for periods of noncompliance until the full 20-year term is met) and it is terminated by a subsequent written instrument;
(7) state that all signatories agree to defend, indemnify, and hold harmless the City of Dallas from and against all claims or liabilities arising out of or in connection with the instrument;
(8) state that it may only be amended or terminated by a subsequent written instrument that is:
(A) signed by all owners of the Property and all lienholders, other than taxing entities;
(B) approved by the director;
(C) approved as to form by the city attorney; and
(D) recorded and made a part of the deed records of the county or counties in which the Property is located;
(9) state that the owner agrees to comply with all the requirements of this article, including the submission of quarterly unit status reports, maintaining the development in compliance with the city's health and safety ordinances, full cooperation with any audits and inspections conducted pursuant to the mixed-income housing program including providing access to all records required to be maintained in accordance with this article and allowing the physical inspection of the property, compliance with the city's Program Manual maintained by the department, and continued compliance with maintenance of the physical attributes of the property in accordance with this article;
(10) state that the owner agrees to maintain the property in compliance with all federal, state, and local health and safety regulations;
(11) state that the owner agrees to notify the city within 30 days of any change in ownership, default, foreclosure, or bankruptcy;
(12) state that it may be enforced by the City of Dallas;
(13) state that it shall be governed by the laws of the State of Texas; and
(14) be approved by the director and be approved as to form by city attorney.
(b) Commencement and termination of rental affordability period. The rental affordability period begins on the date the first reserved dwelling unit is occupied by an eligible household and continues until the expiration of the term of years stated in the mixed-income restrictive covenant, unless the term has been tolled and extended due to the owner's substantial noncompliance with the mixed-income housing program.
(c) Instrument to be recorded. A true and correct copy of the fully executed mixed-income restrictive covenant must be recorded in the deed records of the county or counties in which the property is located. The instrument will not be considered effective until it is recorded in the deed records in accordance with this article and a recorded copy of the instrument is filed with the director.
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