(A) Purpose and findings. The purpose of this section is to:
(1) Provide affordable shelter for all residents of the city;
(2) Address housing needs;
(3) Promote a full range of housing choices; and
(4) Encourage the construction and continued existence of very low- to low-income housing by providing for optional increases in density in order to reduce land costs for such affordable housing.
(B) Applicability.
(1) Generally. This section applies to any application for development approval, as set forth in subsection (B)(2) below, which include affordable dwelling units with the maximum ratio specified in Column (B) of Table 153.1366(A) below. For purposes of this section, an AFFORDABLE DWELLING UNIT means any dwelling unit required to provide only low-income or very low-income housing.
(2) Qualifying applications. The provisions of this section apply to a site, or a portion of a site, which is the subject of an application for a development approval.
(C) Architectural design and character. Affordable dwelling units shall comply with the residential urban design criteria of § 153.0999 of this chapter.
(D) Density bonus and set-aside requirements.
(1) A qualifying application (as defined in subsection (B) above) may be approved with an increase in the density of the site as set forth in Table 153.1366(A) below. The applicant shall consent to a voluntary and enforceable condition in which the specified percentage of the developable density of the site, as specified in Column (B) of Table 153.1366(A) below, is reserved as affordable dwelling units.
(2) Table 153.1366(A) below shall be construed as follows:
(a) Determine the category of housing as set forth in Column (A) of 153.1366(A) below;
(b) Determine the required set-aside for the application category by referring to Column (B) of Table 153.1366(A) below. For purposes of this subsection, the number of required affordable dwelling units is determined by multiplying the total number of dwelling units permissible on the site as set forth in Table 153.1366(A) below by the percentage prescribed in Column (B) of Table 153.1366(A) below.
(c) Determine the density increase that may be awarded by referring to Column (C) in Table 153.1366(A) below. For purposes of this subsection, the additional density that may be awarded is determined by multiplying the total number of dwelling units permissible for the site as set forth in Table 153.1366(A) below by the percentage prescribed in Column (C) of Table 153.1366(A) below. The city shall not require the additional dwelling units to be restricted as to income.
(d) In some instances, developers will not be able to provide the number of dwelling units permissible after applying Table 153.1366(A) below. In such cases, the applicant may reduce the number of affordable dwelling units. However, the number of affordable dwelling units provided in such cases must at least equal the ratio to the additional units that result from dividing Column (B) of Table 153.1366(A) below by Column (C) of Table 153.1366(A) below and multiplying the dividend by the number of affordable dwelling units required.
(E) Project phasing. No qualifying application shall be approved unless the applicant consents to a condition that development approvals for non-affordable dwelling units (hereinafter “market rate units”) shall be issued as follows.
(1) Development approvals may be issued for the first 50% of the market rate units prior to the construction and offering for sale or rental of any affordable dwelling unit.
(2) No development approvals may be issued for the next 25% of the market rate units (i.e., from 51% up to 75% of the approved market rate units) prior to the construction and offering for sale or rental of at least 25% of the approved affordable dwelling units.
(3) No development approvals may be issued for the next 15% of the market rate units (i.e., from 76% up to 90% of the approved market rate units) prior to the construction and offering for sale or rental of at least 75% of the approved affordable dwelling units.
(4) No development approvals may be issued for the remainder of the market rate units (i.e., from 91% to 100% of the approved market rate units) prior to the construction and offering for sale or rental of 100% of the approved affordable dwelling units.
(F) Enforcement. The city or its designee may enforce compliance with the standards of this section and may impose penalties for non-compliance as set forth in § 153.9999 of this chapter.
(G) Administration.
(1) Affordable dwelling units shall be offered for sale or rent exclusively to persons, households or families who meet the income criteria for “low-income housing” or “very low-income housing” (hereinafter “target households”) as defined in § 153.0008 of this chapter.
(2) This section may be administered by the City Manager. The city shall have an exclusive right to purchase any units offered for sale to target households, but not purchased or rented within a time period mutually agreed upon between the applicant and the City Manager.
(3) Affordable dwelling unit sales prices throughout the city shall be established by the City Manager initially and shall be adjusted semi-annually, based on a determination of all ordinary, necessary and reasonable costs required to construct the prototype affordable dwelling units by private industry, and other information, including the area’s current general market and economic condition. Sales prices may not include the cost of land, on-site sales commissions and marketing expenses, but may include, among other costs, builder-paid permanent mortgage placement costs and buy-down fees and closing costs, except for prepaid expenses required at settlement.
(4) Affordable dwelling unit rental prices shall be established by the City Manager initially and shall be adjusted semi-annually, based on a determination of all ordinary, necessary and reasonable costs required to construct and market the required number of affordable dwelling rental units by private industry in the area, and other information, such as the area’s current general market and economic conditions.
(5) Prices for re-sales and re-rentals shall be controlled by the City Manager for a period of 50 years after the initial sale or rental transaction for each affordable dwelling unit.
(6) The sales or re-sales price for an affordable dwelling unit shall be established, taking into consideration as one factor alleged economic loss sustained by the owner as a result of providing the required affordable dwelling units. “Economic loss” for sales units results when the owner fails to recoup the cost of construction and certain allowances as may be determined by the City Manager for the affordable dwelling units, exclusive of the cost of land acquisition and costs voluntarily incurred but not authorized by this section.
(Ord. 3020, passed 9-10-2013, § 7.32)